About Us


In 2022, Nan Ya Plastics Corp. (NPC) recorded a consolidated revenue of NT$355.18 billion, marking a 13.7% decrease from NT$411.67 billion in 2021; and a consolidated pre-tax income of NT$47.55 billion, declining by 54.0% compared to NT$103.46 billion in 2021.

The global economic growth experienced a slowdown in 2022 due to factors such as inflation, the Russia-Ukraine war, and pandemic control. Nevertheless, thanks to the expanding demand for circuit boards, the comprehensive cross-strait distribution of electronic material products such as copper-clad laminate, coupled with the competitiveness of polyester products in the U.S., and the vigorous improvement in the operating quality of plastic processing products, the Company's consolidated revenue and operating income for the year both achieved the second-highest performance since the adoption of IFRSs consolidated financial statements, despite the unfavorable overall environment.

The four major product categories of NPC operations are plastic processing, chemicals, polyesters, and electronic materials.

In terms of plastic processing,

NPC continued to engage in the R&D of innovative applications, new materials, and eco-friendly products with special specifications to increase the sales ratio of differentiated and high-value products. We also carried out capacity consolidation, introduced automatic monitoring equipment to enhance machine productivity, and expanded into high-end and potential emerging markets by promoting e-commerce and online marketing.

Moreover, we took advantage of our decentralized production sites at home and abroad in Taiwan, China, the U.S., and Vietnam. By coordinating production and marketing operations among our plants promptly, we provided satisfactory service and experience to our customers. Despite the challenges posed by the pandemic, our various efforts enabled us to achieve consistent profitability in plastic processing products.

In terms of chemical products,

in line with vertical integration and division of labor in the Sixth Naphtha Cracking Plant in Mailiao, NPC's products, including ethylene glycol (EG), Bisphenol-A (BPA), 1,4-butylene glycol (1,4BG), plasticizers, phthalic anhydride (PA), 2-ethylhexanol (2EH), and epoxy resin (Epoxy), have been vertically integrated into upstream and downstream industries to form a complete supply chain that supports the development of downstream industries such as polyester, electronics, and plastic processing, respectively.

In 2022, mainland China continued to retain strict zero-COVID measures, which affected end-user demand. On top of that, global inflation and interest rate hikes weakened people's purchasing power, resulting in a sharp economic downturn. Moreover, continuous expansions of new petrochemical production capacity in China intensified market competition. Accordingly, some EG plant production lines in Taiwan and the U.S. were suspended in response to the weak market conditions.

The market for BPA experienced oversupply due to increased industrial production capacity and a slowdown in downstream demand. Thus, both sales price and volume were lower than those in 2021. The sales of 1,4BG products were also impacted by a significant decrease in downstream industry activation and the overall profitability of chemical products showed a decline.

The demand for polyester products weakened due to inflation,

causing a contraction of end consumption in various applications such as apparel and automotive interiors. It led to the accumulation of inventories for brand owners and downstream customers. Additionally, owing to price-cutting competition from the mainland industry, customers tended to be cautious in placing orders, and the activation rate failed considerably, leading to a drop in the overall profitability of the Taiwan and mainland plants compared to that of 2021. Nonetheless, the U.S. plant in South Carolina remained profitable thanks to its strong competitiveness.

With the rise of global environmental awareness, there are unlimited opportunities for recycling and the circular economy. The Company has been keenly invested in the R&D of products related to PET bottles, marine, and fabric recycling, as well as biodegradability and green energy. Meanwhile, we are devoted to promoting dope-colored PET, which saves 97% water compared to traditional dyeing methods, effectively reducing energy consumption. We are also working to develop 100% recyclable polyester to improve recycling efficiency and expand fiber product applications, thereby achieving further profit growth.

As for electronic materials,

which were impacted by war, inflation, and interest rate hikes in 2022, coupled with the relaxation of pandemic control in Europe and the U.S, people gradually resumed their pre-pandemic lifestyles, causing a slumping demand for computers, cell phones, and home economy-related electronic products. Accordingly, the supply chain prioritized destocking in the latter half of the year, resulting in a drop in sales of various products. Whereas overall profitability remained positive, it was relatively lower than the peak in 2021.

During the first half of 2023, countries such as Europe and the U.S. are expected to curb inflation with continuous tightening policies while the market remains conservative. In the second half of the year, the market is expected to return to normalcy with the easing of pandemic control, a slowdown in inflation, and almost a year of inventory control within the industrial chain. Moreover, various countries persist in pushing new energy vehicle policies and accelerating the development of lithium batteries, together with AI, 5G communication, server, wind power construction, and related applications, which will drive the growing demand for electronic materials.

We will seize the opportunity of the gradual market recovery and flexibly utilize cross-strait production capacity in Taiwan and China to maximize margins by taking full advantage of the vertical integration of upstream and downstream. Furthermore, we will earnestly propel differentiated products to increase the sales ratio of high-function niche products to drive revenue and profit growth.

Nan Ya Printed Circuit Board Corp. (Nan Ya PCB) a reinvestment company of NPC, has been cultivating the high-end IC substrate market for a long time and has been working with customers to launch next-generation CPU, GPU, Netcom, automotive, AI, and HPC (high-performance computing) application substrates. With their new capacity for high-end IC substrates now in mass production since the fourth quarter of 2022, the sales ratio of high-value products will be further elevated, leading to a quarterly increase in revenue and taking operating performance to the next level.

Under the development of advanced technologies such as chiplet packaging and heterogeneous chip integration, the demand for high-end IC substrates continues to grow. In response to future development trends, Nan Ya PCB has actively strengthened its R&D capabilities and expanded production capacity to meet market demand. Amongst, the new ABF substrate capacity of Shulin Plant Phase I and Kunshan Plant Phase II have contributed to revenue and are scheduled to reach full production by the first quarter of 2023, while Shulin Plant Phase II is set to begin mass production in the first quarter of 2024, which is expected to significantly raise revenue and profitability.

Nan Ya Technology Corp., another reinvested company of NPC, is dedicated to developing, manufacturing, and selling DRAM products. Although market conditions remained favorable in the first half of 2022, customers began to adjust inventories in the second half of the year because of plummeting demand for consumer electronics products, resulting in a quarterly decline in memory market prices and volumes. Without delay, Nan Ya Technology Corp. adopted several measures to enhance its operational resilience, including inventory control, reduced capital expenditures, and cost-cutting.

DRAM is an essential component in the smartification of electronic products. The future introduction of various consumer smart electronics, together with the advancement of AI, 5G, smart cities, smart factories, smart cars, etc., will drive the diversification of DRAM applications. It is expected that the market will begin to improve quarterly starting in the second half of 2023. Aside from continuing to promote existing product sales, we will intensify our independent development capabilities to foster our long-term competitiveness.

As we look towards 2023, the Russia-Ukraine war shows no signs of abating in the first quarter. In addition, inflation in Europe and the United States has not yet reached its lowest point, and China's domestic demand has not picked up despite the lifting of the lockdown, leading to an overall weak global economy. Some of these negative factors are expected to gradually ease from the second quarter onwards, and market conditions are likely to pick up quarter by quarter. Nonetheless, the global economy remains vulnerable to political and economic risks that could undermine the progress made toward recovery this year.

In addition, the U.S. ban on China's technology industry is becoming increasingly stringent, and the shift from a trade war to a technology war may impact global supply chains. Furthermore, corporations are facing challenges related to issues such as climate change, sustainable development, and smart technology. Given the complexity of international situations and market trends, we will aggressively give impetus to the following business strategies to establish a solid foundation for our growth and profitability:

  1. Optimizing the product portfolio, proactively expanding markets, and maximizing productivity
  2. Utilizing smart technology, accelerating digital transformation, and enhancing NPC's operating efficiency
  3. Strengthening operational resilience, surpassing governance indicators, and moving toward sustainable corporate development

Under the aforesaid business strategy, we will stay up-to-date with market trends, remain focused on new materials for 5G high-frequency and high-speed, new energy vehicles, and automotive electronic substrates as the core to develop high-value and differentiated advanced applied materials, and drive the development of a series of upstream and downstream products. We will also optimize our existing products by eliminating underperforming products and shifting towards high-end products, expand into diverse markets and consolidate our equipment production lines concurrently to realize the maximum production capacity, effectively increase capacity utilization, and maximize productivity.

Apart from that, the application of smart technology is becoming increasingly mature. In addition to the continuous introduction of AI into equipment and manufacturing processes, various digital data will be integrated to establish a digital management platform so as to optimize production control, smarten up the process and management, and ultimately enhance NPC's operating efficiency.

Additionally, global climate change and sustainable development are inevitable issues for business operations. Hence, the "Sustainable Development Commission" has been established under the Board of Directors to push forward "low-carbon energy transition," "energy conservation and circular economy," "increasing renewable energy usage," "application of carbon capture technology," etc. We are taking proactive measures to confront the opportunities and challenges posed by climate change to the business, strengthening operational resilience, implementing corporate governance, fulfilling corporate social responsibility, and moving toward sustainable corporate development.

To seize the opportunity of the green environment and circular economy, we have developed environmentally friendly and high-value green products to provide consumers with more choices. In addition to obtaining environmental protection labels and green building material labels, some products also meet the global standard of textile recycling. Over the past three years, we have sold 271,000 tons of PET bottle recycling products, approximately reduced 468,000 tons of greenhouse gas emissions, equivalent to the carbon absorption of 1,199 Daan Park, and realized the goal of reduction, reuse, and resource utilization.

Subsequently, to meet market demand and respond to trends such as supply chain shift, carbon footprint reduction, and local supply, we will establish a regionalized supply system and fortify the autonomy of the supply chain with production layout in Taiwan, China, the U.S., Vietnam, and other places to master emerging developments in Southeast Asia, South Asia, etc. and economic recovery opportunities in Europe, and to improve production and sales flexibility by diversifying production areas, markets, and channels.

In terms of new expansions and investments, the copper-clad laminate and glass fiber at Huizhou Plant in China has been put into production in 2022. This year, several investments will also be completed successively, including release liners, ABF substrates, and blood bag and leukocyte reduction filter system for medical use at Shulin Plant, Taiwan, polybutylene adipate terephthalate (PBAT) at Linkou Plant, Taiwan, bisphenol-A (BPA) at Ningbo Plant and ABF substrates at Kunshan Plant, China. These investments are expected to generate an annual output value of over NT$20 billion.

In the upcoming years, the Company plans to pursue various expansion projects such as ABF substrates of Nan Ya PCB, electronic materials, and plant solar system installation in Taiwan. Moving forward, we will closely monitor changes in the supply chain along with industry trends and international economic and trade situations and make timely and appropriate investments in new capacity expansion and low-carbon energy transition to enhance operational resilience and drive sustainable growth.

(NAN YA,Jun 28, 2023)