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EIPA Secures Customer Recognition, Signifying a Major Milestone Toward Carbon Neutrality

Introducing Innovative Solutions for the Supplement Market to Enhance Nutritional Efficiency

TAIPEI, Sept. 10, 2024 — LCY Chemical Corp. (LCY) today hosted a press conference titled "Reimagining Science, Catalyze Innovation," reaffirming its commitment to transforming into a "science-driven company." Through its three strategic pillars—Performance Polymers & Materials, Semiconductor & Interconnect, and Sustainable Technology—LCY is dedicated to delivering customized solutions to its clients while fostering a new corporate vision of “Catalyzing Innovation.” During the press conference, LCY was joined by Chairman Tsuen-Hsien Chang of Wah Lee Industrial Corp., Chairman Mu-Chuan Hsu of L&F Plastics Co., Ltd., and Chairman Guo-Ren Chen of Global Green Material Co., Ltd., jointly fostering a circular economy ecosystem that brings in perspectives on material supply, end-product development, and resource recycling. The collective effort aims to drive progress towards a zero-carbon future by 2050.

Evolving into a "Science-Driven Company" in Response to Market Changes

LCY is undergoing a strategic transformation, shifting from a traditional chemical company to a "science-driven company" in response to evolving industry and market dynamics. Centered on the principles of the circular economy, LCY aims to not only deliver products that meet business needs and create shared value with customers but also to provide customized solutions. As part of this transformation, LCY has introduced a new brand identity that features a geometric-style logo that infuses both square and circular elements, embodying stability and order—key attributes of modern science. The lowercase "y" adds a dynamic and agile touch, representing the company's "continuous momentum" toward excellence.

Vincent Liu, Chief Executive Officer of LCY, commented: "This transformation is critical, as it not only aligns with global sustainability trends but also positions us to contribute meaningfully. By becoming a 'science-driven company,' we aim to explore new scientific applications, unlock additional business opportunities, and achieve LCY's target of having 20% of our product portfolio classified as sustainable by 2030."

Yi-Kuen Liu, Chief Secretary of the Resource Circulation Administration of the Ministry of Environment, said: "The circular economy is key to addressing climate change, achieving net-zero emissions, and promoting sustainable development. The Resource Circulation Administration is committed to various policies, including source reduction, green design, resource recycling, and improving recycling capacity and management. At the same time, the administration has focused on improving resource circulation networks and applying innovative technologies to accelerate the realization of a circular economy. I am very pleased to attend today's event and witness LCY's dedication and innovative efforts towards the circular economy. I hope that through the joint efforts of government and industry, we can contribute to a sustainable future for Taiwan."

Internationally-Certified Commitment to a Sustainable Future and Carbon Neutrality

To support the global market and Taiwan's sustainability goals, LCY has actively promoted carbon reduction initiatives over the past three years, establishing clear management guidelines and achieving significant improvements[1]. For Scope 1 and Scope 2 emissions, LCY has set industry-leading carbon reduction targets with 2019 as the baseline year, aiming for a 37% reduction by 2030. Additionally, the company plans to procure 15% of its energy from green power sources by the same year. To achieve these goals, LCY is focusing on "improving energy efficiency" by using variable-frequency appliances, motors, and waste heat power generation, while also implementing "process optimization," such as increasing the use of MVR (mechanical vapor recompression) technology and reducing steam consumption to lower its carbon emissions. For Scope 2 and 3 emissions, LCY is working on "supplier engagement" to negotiate with partners to manage their emission factors and further require suppliers to provide low-carbon energy and raw materials. These three key strategies are aligned with the world’s ultimate goal of achieving carbon neutrality by 2050.

[1] Ministry of Environment Greenhouse Gas Reporting System Guidelines

In addition, to address global water scarcity, the government of Taiwan began imposing fees on high-water-consuming businesses in 2023, driving companies to prioritize water resource management. In response, LCY has introduced a circular economy solution that utilizes membrane bioreactor (MBR) technology to significantly improve water reuse efficiency.

Joey Lin, LCY's Vice President of Operations Management and Chairman of the Green Transformation Team, said: "LCY joined ISCC PLUS (International Sustainability & Carbon Certification) in 2024, and starting from the third quarter of 2024, we will obtain certification for products such as polypropylene (PP), thermoplastic elastomers (TPE) and electronic-grade isopropanol (EIPA) to ensure the sustainability of our supply chain. This is an important step towards achieving carbon neutrality. In addition, in the CDP 2023 (Carbon Disclosure Project) supply chain assessment, we were recognized with an A- in the leadership band for supply chain engagement, which is a remarkable achievement!"

LCY's EIPA Wins Customer Recognition, Contributing to a Zero-Carbon Future for the Semiconductor Industry

LCY is committed to helping the global semiconductor industry achieve zero-waste sustainability goals through its "E-material Dual Cycle Circular Economy" initiative. Currently, only 23% of used isopropanol (UIPA) is recycled in Taiwan. If fully recycled, it could reduce annual CO₂ emissions by 15 kilotons (kT), equivalent to the absorption capacity of 40 Daan Park. In 2024, LCY's recycled isopropanol project passed a trial with a leading global chip manufacturer. By supplying high-purity, repurified EIPA for advanced processes and packaging, the semiconductor company is expected to reduce carbon emissions by 20% compared to the traditional incineration method of waste treatment. Additionally, LCY's new facility in the Central Taiwan Science Park, set to begin operations in Q4 2024, represents an NT$2.1 billion investment. This facility, with two new production lines, will be a key component in LCY's ongoing operations in Central Taiwan.

Carotenoids Product Line - Powerful Natural Antioxidant for Improved Nutritional Efficiency

In pursuit of its vision as a science-driven company, LCY is expanding its product application into the nutritional supplements sector, integrating science with health. The upcoming LCY carotenoid product line utilizes a natural fermentation process that replicates the molecular structure of naturally occurring ingredients, enhancing bioavailability and antioxidant efficacy. Furthermore, its carbon footprint is substantially lower than comparable products on the market.

LCY Responds to Global Plastic Regulations with Sustainable Polypropylene Series, Partnering to Drive Innovation

To address the global challenge of single-use plastics, LCY has implemented a collaborative solution, working with brands and third-party recyclers as a materials provider. The process includes: (1) Recycling companies collect post-consumer polypropylene to be sorted, cleaned, and processed. (2) LCY converting the recycled materials into the innovative "Circular Polypropylene." (3) Supplying these materials to end-product manufacturers. This new material can contain up to 50% post-consumer recycled (PCR) polypropylene, reducing carbon emissions by approximately 25% to 35%. The recycled material is used in everyday packaging, sporting goods, and consumer products, ensuring that plastics continue to cycle through the value chain to create new added value.­

Jonathan Wang, Senior Vice President of LCY's Performance Materials, summarized: "In promoting innovative green products, we not only ensure the quality of recycled material sources, but also actively introduce international certification standards. LCY's 'Circular Polypropylene' has earned certifications such as the Global Recycled Standard (GRS) and TÜV Rheinland, further confirming that our green production processes not only comply with market regulations, but also demonstrate our commitment to environmental protection."

In addition to developing green products, LCY actively participates in the circular economy by supporting international brands in the technical development of the Full Footwear Recycling Project. This initiative aims to greatly enhance the feasibility of recycling while streamlining complex recycling processes. The recycled materials are then repurposed into other sports products, which is expected to significantly reduce carbon emissions.