FCFC Enters Toyota Supply Chain as Sole Non-Japanese PP Supplier

Formosa Chemicals & Fibre Corporation (FCFC) announced on Nov. 2 that its long-term strategy of cultivating high-value and diversification has resulted in becoming the first non-Japanese PP supplier to enter TOYOTA's supply chain in Taiwan.

FCFC's latest announcement comes after three years of development and gaining Kuozui Motors' verification. The firm's PP materials are now a part of the production chain and primarily applied in door panels.

The plastics department under FCFC includes handling of PP, ABS, PS, and PC materials. At present, the firm makes approximately 190,000 tons each month. Around 10,000 tons of high-value plastics are applied in automotive and medical products. FCFC's goal for next year is to double the amount with its entrance into Kuozui Motors' supply chain.

This year's COVID-19 pandemic outbreak prompted a surge in demand for household appliances, directly bolstering demand for FCFC's ABS and PP plastic materials.

FCFC Vice-Chairman Hung Fu-yuan says Kuozui Motor is an automotive maker backed by Japan's Toyota, HINO, and Taiwan's Hotai's Motor. Kuozui Motor has garnered the reputation of "zero defects" in the past three consecutive years. Many of its vehicles are sold in Taiwan, the Middle East, and Southeast Asia, with approximately 100,000 vehicles sold each year.

Hung says there are ample opportunities for FCFC in the future, as a vehicle, weighed around 1ons, is made up of 10%-12% plastics, PP makes up 60% of that.