KKPC to raise NT$5 billion for transformation, new hydrogen line set for 2028

Central News Agency (Taipei, 28th) Capitalizing on global energy transition trends and strong demand in the semiconductor market, KKPC announced today a cash capital increase to raise NT$5 billion. The funds will be used to strengthen the company's financial structure, replace aging equipment, and build a new "low-carbon, high-purity hydrogen" production line. KKPC's new hydrogen line is expected to begin trial production in the first half of 2028. KKPC Chairman Chiu Te-hsin stated today that while hydrogen was previously a byproduct of petrochemical processes, the company is now leveraging its core strengths to purify and upgrade this byproduct. This move not only meets market demand and high-value business opportunities but also serves as a key layout for KKPC's new green petrochemical model. KKPC noted that it has been deeply involved in the petrochemical industry for nearly 50 years and has long-term partnerships with Taiwan's three major gas companies and multiple petrochemical plants, possessing core competencies in gas processing, purification, and safety management. Recognizing the global hydrogen trend and the expansion of Taiwan's semiconductor and AI industries, as well as ESG decarbonization opportunities, the demand for "electronic-grade high-purity hydrogen"—used to reduce surface oxide layers and manufacture high-purity materials—is growing. KKPC will build a high-purity, high-efficiency hydrogen production line at its Dashe plant in Kaohsiung and install a solar power system to provide green electricity for the purification process. The new line is expected to begin full trial production in the first half of 2028, which is expected to contribute to the company's revenue. KKPC stated that with massive petrochemical capacity coming online in China, leading to market oversupply, coupled with geopolitical instability and high tariff trade barriers, the global economy is facing high uncertainty. KKPC is adopting a "domestic first" and global sales strategy to expand its market reach. KKPC President Tseng Chia-hsiung pointed out that the company has been actively developing new markets in Vietnam, Thailand, India, and Bangladesh in recent years to reduce reliance on any single regional market. By 2025, the proportion of KKPC's sales to China had dropped to below 30%, while sales to Southeast and South Asia had increased to over 50%. Looking ahead, KKPC will gradually transform from a traditional petrochemical raw material supplier into a high-value, low-carbon, and global material supply platform.