Sorry, your browser does not support JavaScript!
:::

About CPC

CPC Corporation, Taiwan (CPC) is the foremost energy enterprise in the Republic of China.

Read more

Vision, Mission & Core Values CPC at a Glance CPC Worldwide

.............................

Youtube E-mail

:::

About CPC

Home > About CPC > Message from the Chairperson and President

Message from the Chairperson and President

Message from the Chairperson and President

The year 2012 was a time of international politico-economic uncertainty, with the global economy experiencing weak growth because of debt problems in Europe and America and slumping financial and employment markets in many advanced economies. Taiwan was affected by this situation: economic growth slowed, unemployment and consumer prices rose simultaneously and private consumption weakened. Amid this wave of global economic recession, CPC worked in line with the government’s policies of price stabilization and concern for social wellbeing by cutting price increases for petroleum products and gas by half, although this resulted in huge losses for the company. Fortunately, the government announced a petroleum price rationalization program on April 1, 2012 restoring the normal mechanism for petrol and diesel price adjustments and allowing CPC to avoid further losses. By the concerted efforts of all at CPC, the company’s overall revenues reached a record high of about NT$1.2 trillion for the year. 
 
Industrial safety and environmental protection form the foundation of sustainable operations. In promoting industrial safety, we not only ask our staff to adhere strictly to standard operating procedures (SOPs) and proactively identify potential hazards but also to thoroughly implement checking mechanisms, increase the frequency of unscheduled safety checks and reinforce the emergency response function, accident prevention and rescue techniques - all in the spirit of “100% safety, zero accidents.” Thanks to the efforts of all at CPC, we were honored with two awards in 2012: an “Outstanding Activity” award by the Council of Labor Affairs during the annual National Workplace Safety and Health Week; and annual “Model of Industrial Safety” excellent unit and personnel awards for enterprises under the Ministry of Economic Affairs. In the “Excellent Unit for Promotion of Industrial Safety and Health” section of the latter, CPC’s First Place in Division A reflected the attainment of international standards in our various industrial safety measures. In the area of environmental protection, we have continued to promote both the reduction of greenhouse gas emissions and greater waste reduction and recycling. We have organized a variety of environmental “edutainment” activities to disseminate familiarity with the petroleum and petrochemical industries and environmental protection concepts. We also participated in national tree-planting and seedling-giveaway activities and we took the lead in providing battery-switching services for electric motor-scooters in support of the Penghu islands low-carbon program. In these and other ways we have demonstrated our practical support for energy conservation and carbon reduction. 
 
In the field of social service, CPC has continued to show its concern for society and to care for disadvantaged groups in practical ways. We have continued “adopting” children from poor families, by organizing “adoption” meetings and participating in World Vision’s “30 Hour Famine” activities. We have provided long-term support for the development of elite sportspersons such as tennis star Yung-Jan Chan and table-tennis ace Chih-Yuan Chuan, who both represented Taiwan at the 2012 London Olympics; we cooperate with the Eden Social Welfare Foundation in organizing painting exhibitions that aim to give more people insight into the commitment and competence of the physically-challenged; we pay periodic visits to halfway houses, orphanages and children’s homes, donate to the construction of community activity centers and libraries; and join in the sponsorship of cultural performances and the donation of used computers to help impoverished families. It by these constructive means that we whole-heartedly give back to society and fulfill our corporate social responsibility. 
 
We intend to boost Taiwan’s independence in oil and gas resources through our overseas exploration activities and so we are seeking cooperation with international energy companies in new overseas areas with potential for oil and gas exploitation. In order that CPC can take timely advantage of development trends in the new field of unconventional energy and get a firm grasp of its technology and impact on global markets in natural gas and petrochemicals, we are also negotiating cooperation in shale-gas developments. In 2012 we succeeded in acquiring five new exploration blocks: Theall, Bougere Central, Cutthroat A and East Skinner Lake in the U.S.; and Haute Mer A in the Republic of Congo. We also signed a contract with Husky Energy of Canada for cooperative exploration of the deep-sea Tainan Basin block in the Taiwan Straits and acquired oil and gas rights to the Agadem block in Niger and the Prelude gas field in Australia. 
 
There has also been good news from onshore drilling in Taiwan. Guantian No. 4 well in Tainan came on stream with a total of 86,000 cubic meters of natural gas, and has joined Guantian wells No. 1, 2, and 3 in providing gas to the Guantian Industrial Park. We will continue exploration and acquisition activities at home and abroad with the aim of oil and gas production taking up 10% of our refining capacity and contributing 30% of our after-tax profit by 2019. 
 
In the output of oil products, the completion of an RFCC plant at the Dalin Refinery has delivered annual production of 450,000 metric tons of propylene, 2.0 million kiloliters of gasoline and 600,000 kiloliters of diesel fuel, boosting our production value by NT$10 billion per year and bringing additional stability to domestic supplies of petrochemical products and materials. To further increase revenue, we will use propylene from the new RFCC plant to produce butyl alcohol and other high-value products such as the isononanol (INA) planned for a joint-venture project. We will also plan joint investments with foreign petrochemical companies and will work actively under the government’s “quantity outside, quality inside” policy direction with the aim of making the refining business a developing profit center for the company. 
 
In marketing our petroleum products we have continued to aim high: we have upgraded our gas stations and other hardware facilities, not only through design improvements that incorporate local characteristics but also through raising the level of quality in customer service, cleanliness of facilities and landscaping. Gas station channels are now operated more effectively, so as to maximize the sales achieved for each unit of floor space. CPC won numerous customer service awards in 2012, including First Place for gas stations in Management magazine’s Consumer’s Ideal Brand and the Reader’s Digest Trusted Brand Platinum Award, for the 12th year in a row. After many years’ stable supply of high-quality petroleum products and regard for consumer’s rights in a clean, hygienic, and healthy service environment, we have established a superior brand image in the public mind. 
 
In the supply of natural gas, we imported 206 shiploads in 2012 and our sales volume amounted to 16 billion cubic meters. This made Taiwan the world’s 16th largest importer of LNG. On the supply side, we have signed long-term supply contracts with Qatar, Shell, and Australia’s Inpex to ensure continuing stability. On the infrastructure side, the harbor serving the Yong An plant has been improved by dredging and adding to and improving docking facilities; our LNG-carrying fleet has been enlarged and brought up to world standard; and we have carried out second-stage expansion of the Taichung plant. All of this work was undertaken to ensure that Taiwan’s supply of natural gas is worry-free. 
 
In the context of strengthening its competitiveness, CPC is looking to develop various businesses in cooperation with external partners. By way of example, the Kuokuang Petrochemical Technology Co. is currently evaluating the feasibility of, firstly, investing in a joint-venture project for the production of high-value petrochemical products at Taichung Harbor; and, secondly, investing in another joint-venture refining center in Malaysia.
 
In the area of trade, CPC has established its first overseas-based petroleum products trading enterprise —CPC International Trading Pte. Ltd. — in Singapore.  This will serve as the base for an Asia-Pacific trading network for petroleum products, expanding CPC’s competitive participation in the international crude oil market and expanding its export business. We have also used diverse trading methods, such as multilateral trade and the carry trade, in pursuit of better performance in our commercial operations. 
 
CPC’s corporate governance system has been made more effective in its implementation with the aim of enhancing the company’s competitiveness and risk-control capability, and thereby strengthening its operations:  the professionalism of our directors and supervisors was deployed to reinforce the board of directors’ collective competence; board supervisors’ functions have been fully realized; the internal control and auditing systems were strengthened;  and disclosure of important information has been brought up to international standards.
 
For many years CPC has shouldered the responsibility for carrying out national energy policy and in that respect fulfilling its mission of achieving energy conservation, heightening energy efficiency and assuring the energy supply. In the light of both our autonomy in corporate operations and our mission as a state-owned enterprise, we will espouse the principle of “boldly facing challenge and seeking renewal and change” in vigorous implementation of management reform, continuous improvement of operating structure and expansion of our operating territory. We will also work actively to develop new businesses, invigorate our operating model and enhance our corporatized operating capabilities. Additionally, we will allow our various business units greater operational self-authorization and autonomy, reinforce their decision-making capabilities and participate competitively in the international energy market. 
 
Now in its 66th year of operation, CPC is Taiwan’s most important energy supplier. It is our hope that all at CPC will work in the spirit of “active participation, fulfillment of responsibilities, rediscovery of their enthusiasm and sense of involvement, creation of a system of incentives and clear delineation of responsibility” - all as they burnish our brand, reach new heights of achievement and mold CPC into an international energy company characterized by safety, cleanliness, respect and competitiveness in the achievement of sustainable development.
 
Economic conditions are often plagued by turbulence and turmoil, and we wish to express heartfelt thanks to our domestic and foreign customers and cooperating companies for their long-term support and enabling CPC to continue growing and developing in this difficult operating environment. In the future, we will steadily progress towards our vision of becoming an international energy conglomerate that encompasses petroleum products, petrochemicals and high technology. Our earnest hope is that you will all continue affording us the help and support we need to improve our business operations even more and create an even better record of performance. For all of that, we pledge our deep respect and appreciation.