First Chemical Division
A. History
      The 1st Chemical Division was created for the production of wood pulp and rayon utilizing twigs and discarded small woods from logging as raw material. In 1967, the wood pulp and rayon fiber plant was built, which carries an integrated line from log processing and fabric dyeing. In recent years out of concern for environmental protection and soil preservation, logging was totally banned in Taiwan.  Since then, we had to rely on logs imported from the US and Southeast Asia for the production of wood pulp. But without a good grip on the shipment and source of raw materials, we were at a disadvantage in comparison with our foreign counterparts. Thus we started to import wood pulp instead of producing it ourselves and put our operational focus on the production of rayon staple products. But we continue to study the feasibility of running log business and set up wood pulp factory abroad to ensure our autonomy in the supply of raw materials. 
B. Major Businesses
       In the production of rayon staple fiber, we have been expanding the production lines since the plant was built. As of year-end 2002, our capacity for rayon staple fiber accounted for 8.2% of the world capacity, making us the fourth largest producer worldwide and a considerable force in the fiber industry. We are also the major supplier for the domestic spinning and non-woven fabric industry. Rayon staple fiber, polyester and acrylic are three major synthetic short fibers in the country. Our production of rayon staple fiber accounted for 10.1% supply of synthetic short fiber in the country in 2002. Taiwan produces little natural cotton. By providing steady supply of low-priced materials, we have been making a contribution to the long-term development of our textile industry.
       Aside from working on boosting production efficiency, the Division is also committed to continuous improvement in quality. We have received the national standards mark from the Bureau of Standards, Metrology and Inspection. In 1994, we received the ISO-9002 certification from international standard organization. Also, to meet customer’s demands for enhancing the added value of their products, we work towards developing products of special specifications to make our product lines more diversified. Currently we produce mainly rayon staple fiber with different performance, including regular rayon, improved tenacity rayon, dope dyed rayon, high wet modulus rayon, flame retardant rayon, fine denier, and anti-bacteria rayon. To meet production needs, make anhydrous sodium sulphate, which is a by-product recovered in the  production process.
       Rayon fiber is made from natural material. Different from synthetic fiber, it is biodegradable. For many years, the Division has been committed to environmental protection, working on improving the properties of this kind of green products and investing heavily in waste reduction by recycling wastewater and waste gas. To make sure we fulfill our responsibility of environmental protection and management, we faithfully comply with the requirements of ISO-14001, environmental laws and regulations and internally establishment rules, and implement them through employee training, propagation, periodic audit and continuous improvement.
       The Division built the rayon fiber plant when demands for rayon fiber were at its peak. In the ensuing years faced with the pressure of changing industrial structure, substitution by synthetic fibers and rising environmental costs, many producers in Europe, the US and Japan chose to quit the market. We are able to stand firm through continuous efforts in manpower rationalization, quality enhancement and cost reduction, and continue to work for the long-term development of the textile industry in the hope to create a new era for rayon fiber.
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