02 R&D
Delivering Innovation
For Our Clients
CHIMEI’s R&D department plays a vital role in driving performance material innovation
If production is the body of CHIMEI, then R&D is the backbone. Our goal is to help clients create superior products through better, safer materials. Not only are we recognized for our R&D ability, but also for our willingness to work together with clients on developing breakthrough materials.
We are inspired by the notion of Client-Side Innovation™
A key element in our line of innovation is being oriented towards consumer preference and emerging trends in the market. We innovate alongside our clients to help them achieve their goals and step up the quality of their products. From meeting strict regulations to reaching new limits in performance materials, together we make it possible.
Our process is accessible and collaborative,
guaranteeing practical breakthroughs for real-
life applications
How does innovation
happen behind the scenes?
We are a team of mission-driven researchers and developers
Our team is trained in the right critical and analytical skills to not only discover insights, but also interpret the meaning behind them. Thanks to our strength in these areas, we can make better choices for specific material applications and innovate new products that are capable of meeting our clients’ expectations.
Research
Our research unit understands the challenges of product development and makes it their mission to discover the most suitable materials.
Quality
Our quality unit has strong capabilities in testing, controlling and managing the stability of materials in production.
Analysis
Our analysis unit skillfully examines materials to discover issues and provide insights that help our clients to improve their products.
Our automation creates a more efficient and safer R&D environment
Thanks to automated systems, our analysts can now conduct tests and experiments faster and remotely without putting themselves at risk. Further investment into digital data storage means we can keep track of all our results, building on them for even better analytical services in the future.
Recognizes the odor of substances in material or goods
Identifies any impurity and measures the composition of PCR material
Methodically samples and analyzes material at a micro-scale
UL RTI
5,000-10,000 hours of baking in LTTA tests the ability of plastic materials to retain thermal endurance according to the relative thermal index.
UL f1
1,000 hours of accelerated UV exposure at elevated temperatures, plus 7 days of water immersion at 70°C and 82°C tests polymer enclosures, qualifying material for outdoor industrial use.
Keeping in-tune with clients’ and
consumers’ expectations guides us to
deliver the best results
In R&D, we are continuously improving, learning and seeking to be the best in our field. We have enjoyed success in providing our clients with materials that help them overcome technical challenges, meet strict regulations and remain competitive in intense markets. As new trends continually emerge, we are proud to work alongside industry leaders to produce new benchmark materials.
Take a Guess!
How many real-world hours does 5,000-10,000 hours of
baking in our LTTA lab simulate?
Answer
60,000 hours
Our specialized oven bakes materials to simulate a real-world heat exposure of up to 60,000 hours. Materials must be capable of retaining at least 50% of their original characteristics to achieve an RTI suitable for use in consumer electronics and communications equipment.
03 Water
Conserving Our Most
Valuable Resource
In early 2021, Taiwan experienced one of its worst-ever water shortages
Homes and businesses across southern Taiwan were forced to reduce their water usage and preserve what little was available. But at the CHIMEI plant in Tainan, southern Taiwan, production continued with little disruption. How was this possible?
How does CHIMEI recycle
and reuse water?
Perfecting wastewater treatment has become one of our greatest ambitions
When we first embarked upon wastewater treatment efforts, our goal was to clean and purify our wastewater before releasing it, reducing any negative influence on nature. Later, we discovered that we had underestimated the potential of reclaimed wastewater. Both the quality and its possible application far exceeded our expectations.
So the question soon became, could our treated
wastewater reach a high enough quality that it might
return into our production process?
From 2016 to 2020, our water treatment capabilities advanced further
After more than four years of development, which culminated in the opening of our EDR (Electrodialysis Reversal) Water Resource Center, the quality of treated wastewater from our EDR facility far exceeds the standard for tap water. What’s more, it enables us to take less from the public water supply, leaving more for the communities around us who need it most.
The 3 Phases of
EDR’s
Wastewater
Treatment
Submerged Membrane Filtration
Hollow filaments filter the water
Electrodialysis Reversal
Electrified plates separate ions from the water
Reverse Osmosis
Permeable membranes remove any remaining impurities
Our Water’s Journey
Arriving from Nanhua Reservoir in eastern Tainan, water begins its journey at our production plant. Water will flow from one factory to the other before being treated. Some will be reused and the rest will be released back into nature. Each drop of water is reused 3-5 times.
Our goal is to reach 80% reclaimed water in
production by 2025
CHIMEI has an agreement with the local Tainan City government to utilize 8,000 metric tons of reclaimed water per day from 2024. These combined efforts to utilize reclaimed water will help reduce our annual water usage by 3.63 million tons, which is enough water to meet the needs of 9,000 households in Tainan. Beyond the agreement, we are also developing the CHIMEI plant into a “Sponge City”, capable of harvesting rainwater that can be treated and used for production.
Take a Guess!
How much water does CHIMEI use per day in
production?
Answer
14,000 tons
We use 14,000 tons of water per day in production, and one-fifth of that water comes from our EDR Water Resource Center. This effort saves enough clean water to supply the daily consumption of 3,000 households in Tainan.
04 Digital Transformation
Changing How Our
People Work
As the world transforms, we see the opportunities that digital technology brings
As a disciplined and well-managed operation, CHIMEI always had business management systems in place. However, these systems were not connected and inter-departmental information was not linked. Although each of our business units worked closely together, there was no centralized data management system. We realized that having the correct data fast would give us the insight we need to be competitive in the future.
Our digital transformation journey started ten years ago
Replacing the existing systems, which had been in place for decades, was a challenging task. However, we were determined to let go, embrace change and approach this challenge with an open mind. The new, interconnected systems would allow us to manage and utilize data across our entire organization, leading to better coordination and collaboration.
Our holistic approach to leveraging digital
technology ensures smarter facilities, systems
and decision making
How has digital transformation
changed our logistics?
New technology is changing how people work across CHIMEI, delivering better, faster and more efficient outcomes
Consistent Quality Control & Analysis
We have built up a wealth of experience in our industry. By collecting data from previous research, we can better analyze results for our clients. We can discover why something isn’t working and make it better.
Building Long-term Relationships
We have good relationships with our clients, but maintaining these relationships through personal interactions alone can be limiting. With our new client databases, we can provide better service based on the data we’ve collected about different industries, needs and preferences.
Open and Responsive Finances
Digitalized accounts keep our finances open and transparent, improving governance and trust in our company. Through the new systems, we can keep track of the financial situation in each of our business units and plan future budgets accordingly.
Efficient Resource Management
Thanks to our new data management systems, we are better at keeping track of the way we use essential resources such as water and energy. Data helps us determine the source of waste in our operations, so that we can increase efficiency with a more sustainable management model.
Managing and Tracking Supplies
We rely on complex supply chains, and keeping track of them can be challenging. Digital methods allow us to manage these chains easily through visualization. When we need to make a quick decision, we can do so intuitively from an informed point of view.
Managing Complex Logistics
With hundreds of people and containers coming-and-going from our warehouse every day, keeping track of their activities is a complex task. Our new, real-time data management systems centralize this information, enabling us to keep track of storage and delivery status across the entire logistics operation.
Challenging old mindsets allows
us to embrace today’s technology
and future possibilities
Our digital transformation has already yielded impressive results. We have introduced AI and automation across our entire business operation. Plugged into the potential of machine learning, we are staying ahead of the latest trends and applying the best technological solutions available.
Take a Guess!
Before the digital transformation at CHIMEI, how long
did it take our logistics staff to cycle around the
warehouse for inventory checks?
Answer
120 minutes
These inventory checks are time-consuming, but necessary. Thanks to our digital transformation, we now have methods of collecting this data and making it more accessible to our logistics staff. Not only does this reduce their manual workload, but it also creates a more efficient way of organizing our warehouse.
05 Certification & Governance
Guaranteeing Our
Integrity and Standards
Our principles are reflected in how we govern
At CHIMEI, our values of creating well-being and shared prosperity come through at every level, including our corporate leadership. As we pursue our goals, both in business ambition and giving back to the community, we seek to do so in the most ethical ways possible.
We set high standards across every section of CHIMEI
High standards of management are implemented across our entire organization and beyond, extending to our suppliers and contractors. We take pride in the fact that 96% of our suppliers and contractors (1,798 people in total) have signed our Code of Ethics along with our Compliances and Business Integrity for Vendors pledge.
CHIMEI guarantees an ethical supply chain
through careful collaboration with suppliers
and contractors
CHIMEI is transparent. All our employees adhere to the same principles and practices at work.
CHIMEI is entrusted with sensitive data. We take responsibility for its safety and confidentiality.
CHIMEI is the first business in Taiwan to have applied this anti-bribery management system across our entire organization.
Being certified for cross-border cargo safety means we are recognized as a reliable and trustworthy business. As a result, our clients benefit from a faster and more streamlined customs clearance.
We guarantee consistent quality with firm management principles for the continual improvement of our products and services.
Our manufacturing facility is one of just two in Taiwan, and the largest in Asia, certified to produce medical-grade materials for use in medical devices.
CHIMEI prioritizes employee safety and well-being in the workplace
SA8000
treating each employee fairly and decently
ISO 45001
providing a safe working environment by reducing risk and enhancing precautions
CHIMEI is constantly improving its management of energy consumption
ISO 50001
continual improvement on energy performance for each industrial plant.
CHIMEI is committed to reducing its impact on the environment
ISO 14001
strictly following the requirements for environmental management
ISO 14064
strictly following the standards for greenhouse gas emission reduction
Striving to achieve internationally recognized certifications
At CHIMEI, we do not seek certifications just to achieve good governance, but to affirm our mission and purpose. We give our all to be transparent and trustworthy in business, upholding the highest standards in practice.
Take a Guess!
When will CHIMEI achieve ISO 37001 (anti-bribery
management systems)?
Answer
2022
Once achieved, CHIMEI will become the first organization in Taiwan to have implemented the anti-bribery management system across all business operations.
07 Energy
Creating Our Own
Sustainable Power
Taiwan’s electricity grid is prone to seasonal outages
Most recently, in the summer of 2021, rolling blackouts occurred after a simultaneous heatwave, drought and power plant failure struck southern Taiwan. As a result, numerous factories were forced to pause production, temporarily.
Every hour, CHIMEI uses up to 85,000 kWh of electricity
This amount itself is equivalent to the energy consumption of more than 400 households for an entire month. Imagine how much electricity we use to run our 24-hour operation – a lot, just to keep our machines running and to generate heat for chemical reactions. Our ABS plastics, PC plastics and Liquid Butadiene Rubber productions take up the lion’s share of power.
It became critically important to think about sustainable production and the source of energy
As a company, we are stepping up to the responsibility of becoming more energy self-sufficient. We have taken the matter into our own hands – generating a reliable supply of electricity and steam in the most reliable ways possible, while taking our carbon footprint into account.
How can we become more energy self-sufficient,
while also becoming cleaner and greener?
How does CHIMEI become
more energy self-sufficient?
The Cogeneration Plant is our largest project to achieve energy self-sufficiency
Coming soon in November 2022, the cogeneration plant will be able to generate 85% of our energy needs alongside 66% of our steam. The plant will be fueled by natural gas and use turbine fans to generate energy. Like all forms of power generation, there is waste heat. Uniquely for cogeneration, this waste heat is recovered to produce steam that is then used in our manufacturing process.
The CHIMEI Green Energy Park is part of our efforts to generate cleaner, more sustainable power
Located in tropical, southern Taiwan, we are perfectly placed to harvest solar energy. With the capacity to generate 20 million kWh per year (equivalent to the energy consumption of 8,100 households) the Green Energy Park helps make CHIMEI more energy self sufficient, while providing a clean source of power for our production plant.
The Resource Recycling Furnace contributes to our waste treatment and circular economy practices
Converting waste into energy is an alternative to disposing waste into landfills. We rigorously check all waste before incinerating and 98.2% has been successfully converted into energy. In effect, this process has the potential to reduce our waste outsourcing to as little as 2%.
We have gradually transitioned away from
coal and oil over the past decade
Although transitioning away from coal and oil has been expensive, we believe it’s worth our effort to protect the environment. Now, just 3% of our equipment is powered by oil and we’re moving it entirely to natural gas.
Each energy project aims to reduce our carbon footprint
Between 2009 and 2019, we achieved a 36% reduction in our total carbon emissions, which means we stopped 150,000 tons of carbon from entering the atmosphere each year. CHIMEI is a member of SBTi and we look forward to building a zero-carbon economy with our clients.
Take a Guess!
How many households could we power with the
solar panels at CHIMEI Green Energy Park?
Answer
8,100 homes
Approximately 20 million kWh of energy, which previously came from the national grid, now comes from CHIMEI Green Energy Park.
08 AI & Automation
Creating Our Value
Faster and Smarter
When CHIMEI was established 60 years ago, our operation was small and labor-intensive
Back in the early days of CHIMEI, most production work was done manually. As our operations grew, we gradually began automating the more repetitive tasks such as packing and quality testing. Today, we continue to invest in improved automation and we have also begun adopting AI.
Our workforce focuses on value-added
work, while automation increases
efficiency and productivity
Digital transformation has created a great environment for us to roll out automation
Automation is taking over the repetitive, dangerous or physically demanding tasks at CHIMEI, helping us to deliver higher quality produce at a faster rate. Meanwhile, our workforce increasingly focuses on more intellectual, value-added work. This is only possible because of the success in our digital transformation, which has centralized our data management over the past decade.
How did we overcome the challenges of building
our first automated packaging line at CHIMEI?
Introducing AI and Automation into our business has led to better work processes and outcomes
Automated packing and AI-powered inspection amplifies quality and reliability
The automated packing line cuts, fills and seals each package ready for delivery to our clients. Everything can be completed at an unprecedented speed, beyond human capacity. At the end of the packing line, AI computer vision inspects each package for defects. This is a major improvement from the past, when there was no way to inspect each individual package and we relied on random inspections. Now, we can ensure the quality of every single package before dispatch.
Machine learning adds to the experience of our technicians
Clients come to CHIMEI with a desired color and it’s our technicians job to mix that color. They get to work, drawing on their experience to mix it accurately and as quickly as possible. AI machine learning technology can help our technicians to produce more accurate colors and at a faster rate.
Automation has increased the quality and reliability of our water processing
Our EDR Water Resource Center is one of the keys to reaching CHIMEI’s sustainability goals. The water processing plant is almost entirely automated, verifying water quality with just 3 technicians to oversee its operations.
CHIMEI is closely involved in future machine learning breakthroughs
We are a co-sponsor of the Taiwan Artificial Intelligence Academy – a foundation established in 2018 to foster AI talent in Taiwan. By contributing to the academy, we work side-by-side with other sponsors from a diverse range of industries to advance AI and automation for the benefit of everyone.
Take a Guess!
How many more packages can CHIMEI’s automated packing line
process in an hour versus the previous semi-automated system?
Answer
+200 packages
Automated machinery can work quicker and with greater accuracy than manned machinery. Thanks to our new AI technology, we can now process an additional 200 packages per hour, which means a 14% increase in productivity.
09 Production & QC
Keeping Our High Standard
Around the Clock
As Tainan City prepares to sleep, CHIMEI continues working around the clock
As the evening shift wraps up, the night shift is just beginning. This is the nature of a petrochemical plant. Our nonstop operation is necessary to ensure that CHIMEI products are synthesized through a continuous process, maintaining stability in quality, safety and production efficiency.
24-hour operations are ordinary, but to operate effectively is extraordinary
It’s a challenge to manage all the people, processes and chemical reactions involved in our production. We invest tremendous effort to keep everything running. The safety of our staff, especially during the night shift, is of upmost importance, as is ensuring the high quality of each product batch.
Ritual work briefings ensure a
successful transition between each shift
How does team work keep
everything going?
Everyone takes responsibility for the whole
To ensure 24-hour operations, we require responsible collaboration from everyone at CHIMEI. While the production team takes care of manufacturing, the quality control team takes care of inspection. When the logistics team packs and stores away the products, the risk management team provides safety and security. At night, each individual takes on more responsibility, operating with a smaller team.
CHIMEI is overcoming the challenges of continuous operation and pursuing excellence in production
Continuous Quality Control
From incoming raw materials to outgoing products, quality control is the key to exceeding expectations. The first round of inspections takes place before mass production has even begun. By inspecting each step, ensuring readiness of production lines and early detection of abnormalities, we can reduce waste and increase efficiency.
Minimum breakdown and disruption
We are adopting AI technologies to ensure all production processes run smoothly and safely. Thanks to accurate predictive maintenance, we can diagnose which parts of our machinery require maintenance and schedule it ahead of regular maintenance procedures.
Ultimately, our success comes from people, policies and technology
We invest heavily in training and education so that each individual within our team has the right mindset and skills. This is to ensure that safety and product quality are never compromised. We are making further improvements to our 24-hour operation through increased automation.
Take a Guess!
How many shifts does our production and quality
control team undergo each day?
Answer
3 shifts
We have four different production and quality control teams in rotation. When three of the teams are assigned to the three shifts, the fourth team takes leave. Our rule is that each team takes turns in order to maintain safety and avoid overwork.
10 Green Efforts
Making Our Industry
Sustainable
CHIMEI received the Green Leadership Award in 2021
Asia Responsible Enterprise Awards (AREA) presented us with the Green Leadership Award in recognition of our efforts to build the CHIMEI Green Energy Park. CHIMEI has pledged to uphold clean and green principles, safeguarding the environment through projects like this one.
In 2022, CHIMEI was awarded a Gold Medal from EcoVadis
The second time we’ve received an award for our sustainability, this rating puts us amongst the top 5% of corporations worldwide. Our determination to reduce energy consumption, greenhouse gas emissions, and significant improvement in our sustainable procurement practices received special recognition.
Not only do we pledge to improve
our own sustainability, but also the
sustainability of our clients
How is CHIMEI making
plastics more sustainable?
Our PCR plastics provide a greener alternative to other plastics on the market.
Post-Consumer Recycled (PCR) plastic materials offer a solution to reduce reliance on virgin plastics
Since 2016, CHIMEI has been a vital PCR ABS, PCR PC and PCR Alloy supplier. We hope to save resources and cut down on plastic waste through PCR, especially PCR-ITE (information technology equipment), as an alternative to similar high-quality plastics used in production. So far, we have utilized over 4,000 tons of recycled material.
Simplifying the recycling process with single-material packaging
We began planning to use 100% PP or PE packaging in late-2019. After more than a year spent fine-tuning our machinery, we finally began using the single-material packaging in August 2021. We are now introducing a closed-loop recycling initiative through close collaboration with our supply chain partners.
Solar Power Plant
helping to reduce carbon emissions by 17,000 tons per year
Cogeneration Plant
generating heat and power from clean natural gas
EDR Water System
recycling wastewater and reducing overall water usage
Resource Recycling Furnace
turning industrial waste into a valuable energy resource
Playing a prominent role in the transition to clean and sustainable energy
Our environmental responsibilities extend beyond the CHIMEI manufacturing plant. For example, in 2020, we invested $7.9 million into Green Energy bonds to help Taiwan transition towards clean and sustainable energy. Currently, our bonds are helping to fund the construction of an offshore wind farm in Changhua County.
Achieving the world’s first-ever carbon neutral butadiene shipment
CHIMEI used carbon credits to compensate for 1,819 tons of CO2 emitted by a shipment of butadiene, which sailed from Brazil to Taiwan in August 2020. All credits were sourced through the framework of Reducing Emissions from Deforestation and Forest Degradation (REDD+), going towards the protection of forests and natural habitats at the Rimba Raya Biodiversity Reserve in Indonesia.
Responsible manufacturing means coexisting alongside nature
Communities and consumers increasingly expect their products to achieve performance excellence without harming the environment. At CHIMEI we share these considerations, dedicating ourselves to producing quality materials that have a minimal impact on nature.
Take a Guess!
How much annual waste can CHIMEI’s single-
material packaging cut down on?
Answer
10,000 tons
With recyclable, single-material packaging, we estimate a 10,000 ton annual reduction in the amount of CHIMEI packaging materials that go to waste. Furthermore, through close collaboration with our supply chain partners, this material can be recycled to produce new packaging, which is in line with our circular economy initiative.
11 Safety
Choosing Our People
Over Profit
In 2021, CHIMEI won the National Occupational Safety and Health Enterprise Benchmarking Award in Taiwan
We received the highest recognition for our efforts, promoting health and safety in the workplace. One of the requirements is for no major occupational accidents over the past three years, which is an achievement in itself. Efficiency, innovation and profit would mean nothing to CHIMEI if we sacrificed health and safety to achieve them.
We prioritize health and safety above everything else
Protecting the well-being of our people is at the heart of our organizational culture. We established the Occupational Health and Safety Committee at CHIMEI to ensure our people’s welfare, overseeing safety, risk, emergency response and other health related activities.
How does CHIMEI make a
petrochemical factory safe?
Where safety is concerned – actions speak louder than words
People’s awareness, knowledge of workplace safety, preventive and protective gear, rescue and emergency decision-making, are all rehearsed and well-equipped.
Our decision is steadfast when it comes to
the handling of emergencies
We have comprehensive emergency response protocols in place
Besides our training, detection instruments and rescue teams, we have a proven and systematic approach that guides our risk management team to take the right action during an emergency. Our protocols ensure that we can continue production without ever compromising on safety.
Take a Guess!
What is the name of CHIMEI’s in-house Fire
Department?
Answer
Phoenix Squad
The name of our fire brigade is inspired by the mythical bird that bursts into flames before being reborn out of the ashes. It is often seen as a symbol of resilience. Since signing an agreement with Tainan City Government Fire Bureau in 2019, the Phoenix Squad has supported 6 fire rescue missions.
Safety Training
Safety Drills
Safety Education
Our fire brigade, the Phoenix Squad, was established in 1990 and consists of 64 professional fire fighters
Our firefighters train rigorously to stay alert while learning new skills and techniques
We invested in a High Reach Extendable Turret – the first one imported to Taiwan – to help us fight chemical fires
We signed a MOU with Tainan City Government Fire Bureau to support local rescue missions and fire incidents
