The need for biodegradable plastics has increased in response to global curbs on plastics and environmental trends. At present, however, there are only few suppliers of raw materials worldwide. To achieve corporate social responsibility, the Board of Directors resolved in June 2019 to acquire a 19% equity interest in Minima Technologies Co., Ltd., a Taiwan's leading brand of compostable products and resins.
Minima Technologies Co., Ltd. currently produces 4,000 tons of biodegradable compounds (particulate and colloidal) annually, mainly for its own use in the production of disposable consumer products such as tableware, paper cups, straws, and other degradable plastic products. The biodegradable compounds (particulate and colloidal) produced by Minima Technologies Co., Ltd. can be completely decomposed into water, CO2, and organic carbon in a general environment for a maximum of one and a half years (in a composting environment within 180 days, which is in line with international standards) without causing any environmental pollution. After the Huwei Plant goes into operation in the second quarter of 2020, the annual capacity is expected to gradually increase to 20,000 tons.
At the same time, FPC will use the existing products of FPG such as PTA (pure terephthalic acid), butanediol, and maleic anhydride to develop the key raw materials of green plastics, namely, PBS (polybutylene succinate) and PBAT (polybutylene adipate terephthalate), facilitating the vertical integration of Minima Technologies Co., Ltd.'s supply chain and the popularization of green plastics. It is expected to further increase FPC's business scale and profitability.