Tear Sheet: Four Formosa Companies

Ongoing weakness in China's property market could delay a significant rebound in demand growth. Meanwhile, aggressive capacity additions in China coupled with weak demand could keep utilization low. This could increase pricing pressure on to the four core Formosa companies--Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals&Fibre Corp. and Formosa Petrochemical Corp. High oil prices also contribute to cost pressures. We anticipate that the four Formosa companies could witness a recovery in profitability in 2025-2026. Chemical demand could recover gradually with a stabilizing economy in China and the government's measures to stabilize the property market. Weak profitability and tightening environmental regulations in China could also slow new capacity additions and reduce inefficient capacity. However, downside risk remains

...Formosa Plastics Corp. Vinyl chloride, polyvinylchloride (PVC), caustic soda, polyethylene (PE), polypropylene (PP), ethylene vinyl acetate (EVA), acrylic esters, acrylonitrile (AN), methyl methacrylate (MMA), epichlorohydrin (ECH), methyl tert- butyl ether (MTBE), carbon fiber, super absorbent polymer (SAP). Nan Ya Plastics Corp. Secondary plastics, polyesters, printed circuit board/electronic materials, ethylene glycol (EG), 1,4-butanediol (1,4BG) and other alcohols, curing agents, anti-oxidants and modifiers, Bisphenol A (BPA), Phthalic Anhydride (PA), Plasticizer, epoxidized soybean oil (ESO), 2-Ethylhexanol (2EH), Hydrogen Peroxide, engineering. Formosa Chemicals & Fibre Corp. Aromatics and derivatives- benzene, ortho-xylene (OX), para-xylene (PX); phenol, acetone, styrene monomer (SM), purified terephthalic acid (PTA), polymers- acrylonitrile-butadiene-styrene (ABS) resins, polystyrene (PS), polypropylene (PP), and polycarbonate (PC); textile & fiber, electricity generation. Formosa...

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