Petrochemical Industry Structure and Value Chain Position

In recent years, the rapidly changing international landscape and increasingly rigorous environmental laws and regulations, in addition to the challenges posed by various social issues, have resulted in companies facing greater uncertainty when promoting sustainable development. FPCC has continued to adopt international standards, and has incorporated sustainable development strategies into our business operations and decision-making. We have examined our role in the value chain from the perspective of the overall industry in order to strengthen our longterm competitiveness and continue expanding into new markets.

Diagram of Petrochemical Industry Structure, and Relationship Between Downstream and Upstream Enterprises :

The petrochemicals industry can be divided into three major sections : basic raw materials, intermediate raw materials, and downstream application and processing. Each of these sections are closely linked and dependent on each other through supplier-customer relationships. FPCC is located in the upstream section of the petrochemical industry chain. We mainly use imported crude oil as raw materials to produce various petroleum products and basic petrochemical raw materials, which play an important fundamental role in the development of midstream and downstream industries. Through this systematic overview of the industry structure, we can grasp the industry's momentum from a macro perspective and understand how different enterprises within the industry are linked, serving as an important reference when developing future business directions and strategies.

FPCC's Value Chain

After clarifying our industry position, FPCC further examines how each of step of our operational process is able to generate value from the perspective of the corporate value chain. Through maintaining smooth communications and exchanges with our stakeholders across the value chain, FPCC is able to understand their concerns and needs, and use this information to evaluate our investment priorities.
The Company also regularly reviews the benefits generated by each investment to ensure that our business decisions take economic benefits, environmental responsibility, and social impact into account. This forms a virtuous cycle, and increases overall resource utilization synergy.