Post Date：2025.09.29         Since the establishment of the ethylene glycol plant in the Lin Yuan Industrial Zone of Kaohsiung in 1975, Oriental Union Chemical Corporation has faced multiple challenges such as global market fluctuations, fluctuations in raw material prices, regulatory policy adjustments, and technological innovations. It has always adhered to the spirit of steady operation and continuous innovation, deeply cultivated the petrochemical industry, and gradually established a competitive product line and research and development strength.

        

 

 

        In today's world where climate change and sustainability development issues are increasingly valued, Oriental Union Chemical Corporation actively promotes the transformation of the company from a traditional bulk chemical manufacturer to a material chemistry company with product and research and development orientation, with "green, low-carbon, Wuhan Far Eastern New Material" as its core strategy. Over the past 50 years, not only have we made multiple breakthroughs in technology, products, and market layout, but we have also demonstrated forward thinking in corporate governance and social responsibility, setting an example for Taiwan's petrochemical industry.

        Reviewing the industrial evolution from ethylene glycol to green materials over the past 50 years

        In the 1970s, Taiwan began implementing the Ten Major Economic Development Plans, and ethylene glycol, as the core petrochemical raw material of the chemical fiber industry, was also listed as one of the key projects, hoping to reduce external dependence and enhance the export competitiveness of processed products. In view of this, Oriental Union Chemical Corporation built an ethylene glycol plant in the Lin Yuan Industrial Zone of Kaohsiung in 1975, officially launching a key layout of Taiwan's petrochemical industry.

        Oriental Union Chemical Corporation is a joint venture between Far Eastern Textile, Union Carbide, and government agencies. Far Eastern Textile holds a 20% stake and is led by its founder Yu Xiang Hsu as the chairman, responsible for operations. In the early stages of its establishment, it faced multiple challenges, including two oil crises that led to soaring raw material costs. The price of the main raw material ethylene was higher than international standards, and the gas required for the process was supplied by Yonglian Gas, which was invested by Yongbei Company in Taiwan at a price higher than the market average. In addition, the foreign currency borrowing rate was as high as 20%, forming a heavy financial pressure.

        In 1982, Taiwan promoted a free trade policy and fully opened up the import of petrochemical raw materials, including ethylene glycol. With the influx of low-priced foreign goods, self-produced ethylene glycol was at a disadvantage in market competition, causing Oriental Union Chemical Corporation to shut down for several months. As a result, the American company Yongbei withdrew its investment and its shares were taken over by government agencies. In order to stabilize the financial structure, founder Yu Xiang Hsu provided personal guarantees and successfully secured loans from several local banks at lower interest rates, successfully repaying overseas debts and reducing interest burdens. At the same time, Yonglian Gas Supply System has also been integrated into Oriental Union Chemical Corporation to complete resource consolidation.

        Starting from the second half of 1983, the industrial prosperity rebounded, and the financial situation of Oriental Union Chemical Corporation gradually improved, with stable operations. In 1987, the company's stock went public with a peak price of NTD 238, laying a solid foundation for steady growth.

        Entering the 21st century, there have been significant changes in the structure of the global petrochemical market. The expansion of petrochemical production capacity in mainland China and the Middle East has led to oversupply of bulk products, price declines, and intensified competition. Oriental Union Chemical Corporation realized the risks of a single product structure and began gradually expanding its product line, adding specialized products such as ethanolamine, vinyl carbonate, ethylene glycol butyl ether, and other ethylene oxide derivatives. It also established a production base in Yangzhou, mainland China and expanded its overseas layout.

        

 

 

        Since 2013, Oriental Union Chemical Corporation has expanded its R&D and engineering technology team, investing over 10 billion yuan to establish an integrated architecture spanning R&D, engineering, and manufacturing, enhancing product differentiation and high added value. Up to now, more than 300 specialized products have been developed, covering various fields such as daily use, building materials, electronics, and batteries. The operational focus has gradually shifted from ethylene glycol to specialty chemicals and green materials.

        Among them, Carbon Capture and Reuse (CCU) technology is an important milestone in the transformation of Oriental Union Chemical Corporation. It captures and purifies the carbon dioxide produced by the side reactions of the ethylene oxide process to produce ultra-high purity liquid carbon dioxide, which is supplied to the industrial, food, and electronics industries. It is further processed into ethylene carbonate (EC) in factories and applied in fields such as polycarbonate, lithium battery electrolytes, and composite materials. In addition, Oriental Union Chemical Corporation also produces carbon capture solvents such as ethanolamine and ethyleneamine to assist customers in carbon reduction operations, demonstrating the dual value of technological innovation and environmental responsibility.

        In terms of corporate culture, Oriental Union Chemical Corporation has gradually established an innovation oriented DNA, encouraged cross departmental collaboration, promoted R&D and process integration, demonstrated high technological integration capabilities from raw material selection, process design to end applications, and opened up new business models. It is no longer just an ethylene glycol manufacturer, but a chemical material partner that can provide customized solutions.

        The transformation from a single product manufacturer to a materials chemistry company with research and development capabilities, environmental responsibility, and market competitiveness is not only a microcosm of the growth of Oriental Union Chemical Corporation, but also a model for the transformation and upgrading of Taiwan's petrochemical industry.

        

 

 

        Looking ahead to the future, driven by research and development, moving towards green sustainability

        In recent years, facing the global trend of sustainability development and carbon neutrality goals, Oriental Union Chemical Corporation has actively achieved energy transformation and process optimization, demonstrating its high commitment to environmental responsibility. The company has established a 'Corporate Sustainability Promotion Committee', introduced ESG governance structure, established institutionalized sustainability management mechanism, and comprehensively promoted green development. In terms of manufacturing processes, we will continue to promote energy conservation and carbon reduction, invest resources in upgrading high energy consuming equipment, actively evaluate the introduction of low-carbon energy, and plan the application of clean energy such as solar energy and offshore wind power, taking into account both environmental and economic benefits, and steadily moving towards the goal of carbon neutrality.

        In terms of digital transformation, Oriental Union Chemical Corporation has fully adopted the AWS cloud platform, strengthened information integration and system flexibility, and gradually introduced technologies such as Large Language Modeling (LLM) and Generative AI, which will be applied to research and development, process optimization, supply chain management, and operational analysis to improve operational efficiency and decision-making accuracy. Through intelligent systems and data analysis, manufacturing process upgrades can be accelerated and market adaptability can be strengthened.

        Looking ahead to the future, Oriental Union Chemical Corporation will focus on "green, low-carbon, Wuhan Far Eastern New Material" as its core, deepen research and development investment, expand into high potential fields such as electronic grade chemicals, high-purity gases, battery materials, and special application materials, and continue to promote recycled economy and product differentiation strategies, reduce the proportion of bulk products, increase the proportion of high value-added products, and consolidate long-term competitiveness. At the same time, adhering to the spirit of innovation and the concept of sustainability, we work together with shareholders, customers, employees, and society to create a resilient and valuable green chemical industry, achieving mutual prosperity and benefits between enterprises and the environment.

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