Intelligent Management

Intelligent
Mangent

Management and Strategy
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Process and Goals
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Progress and Effectiveness

With a steadfast commitment to driving intelligent manufacturing, the Company actively promotes digital transformation. By optimizing manufacturing processes and management efficiency, we enhance overall operational performance. This strategic approach enables us to swiftly adapt to industry shifts and market competition, ultimately realizing a highly efficient, smart, and sustainable operation.

Develop Strategy

Renovation and replacement of old equipment and Improve equipment efficiency in order to achieve the eco-friendly goals of low pollution and low energy consumption.

Policy Commitment

Enhancing Operational Safety, Reducing Accidents, Minimizing Resource Consumption, Building an Intelligent Factory.

Various projects promoting the development of smart factories

Digitalized PSM Management and Integrated Intelligent Systems

TVCM actively participated in the “Smart Petrochemical Safety Upgrade Subsidy Program” promoted by the Industrial Development Administration, Ministry of Economic Affairs. The company successfully established a digitalized Process Safety Management (PSM) system and integrated multiple intelligent technologies, comprehensively enhancing process safety and smart management effectiveness.

The achievements of this implementation include：

10 PSM management modules：
Contractor management, hot work permits, incident investigation, emergency response, operating procedures, equipment integrity, compliance audits, pre-startup safety review, training, and management of change.

6 intelligent technologies：
Intelligent inspection, gas detection data analysis, personnel and vehicle image recognition, personnel positioning, plant operation management, and equipment/pipeline monitoring.

Situation room establishment：
Building a real-time monitoring mechanism to construct a comprehensive smart process safety management system.

During the review meeting, Kaohsiung City Labor Bureau Director Deng-Chun Chou expressed recognition of the project’s achievements.

Establishment of a intelligent factory

Process optimization & safety monitoring

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Distillation Column Systems of TVCM

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Each PVC drying system of CGPC (Utilizes intelligent models to provide optimal program settings (SP) and by intelligent control optimization which allow us to rapidly achieve the best energy consumption conditions).

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Absorption tower process safety monitoring

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CGPC Alkali-chlorine evaporation tank system

AOI image recognition

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Electrical Panel AOI with Thermal Imaging

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intelligent Safety System for Stackers

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Image Recognition for Tanker Truck Loading Operations

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Fabricated plant product defect identification system

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Pipe AOI Image Detection System

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Intelligent weighbridge system and license plate AOI image recognition

Intelligence factory

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Situation Room at Main Plant

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Polymerzation production management system

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Alkali-Chlorine Manufacturing Management System

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CGPC Automatic Warehousing System

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Energy Efficiency Performance Management Platform

Sustainable Management through
Industry-Academia Collaboration

ESG Benefits

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Providing Intelligent Education Scholarships

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Sharing Practical Experiences in industry-Academia Collaboration (Please refer to the section on High Quality Intelligent-based Transition)

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Energy Conservation,Carbon Reduction,Environmental Protection

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Stable Quality,Economic Prosperity

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Reducing the Probability of occupational Accident

Introduce Intelligent workflow into manufacturing process

The goal of introducing intelligent operation into the process

2025 Objective	Parallel Deployment of Intelligent AI Projects Utilizing intelligent models to provide optimal process operating condition settings (SP), and applying intelligent model-based optimization control to quickly achieve optimal energy consumption conditions. This enhances process stability and energy-saving benefits. The system has been implemented in Taiwan VCM’s distillation towers, with Phase III of C-6102 and Phase II of C-6101 completed in 2025, and Phase I extended to the hydrochloric acid tower. Establishing models to monitor the usage of cracking furnaces, providing natural gas safety monitoring points. This enables low-level natural gas alarms during reduced consumption, preventing flameout incidents caused by insufficient usage, thereby improving safety and stability. Through industry-academia collaboration, intelligent models have been introduced into dryer operations. These models provide optimal process operating condition settings (SP) and enable processes to quickly reach optimal energy consumption conditions, enhancing stability and energy efficiency. The CGPC Main Plant has taken the lead in implementation. CGPCP Linyuan Plant provides historical data and operating parameters to the CGPC Main Plant AI team for model calibration. Six major smart technologies have been introduced to establish a safe operating environment and management system.
2025 Performance	Intelligent monitoring to create a safe operating environment for energy conservation and carbon reduction CGPC and CGPCP applied intelligent models to calculate parameters for operations, reducing the frequency of manual adjustments. Considering current operational conditions and unfavorable market demand leading to reduced production capacity, the intelligent model has limited data. The project will be relaunched once production levels recover. Intelligent models are used to provide optimal process operating condition settings (SP), and intelligent model-based optimization control enables processes to quickly reach optimal energy consumption conditions. This enhances process stability and energy-saving benefits. The system has been implemented in TVCM’s distillation towers, with Phase III of C-6102 and Phase II of C-6101 completed in 2025, and Phase I extended to the hydrochloric acid tower. Models have been established to monitor cracking furnace usage, providing natural gas safety monitoring points. This enables low-level natural gas alarms during reduced consumption, preventing flameout incidents caused by insufficient usage, thereby improving safety and stability. Out of six major smart technologies, five have been completed: gas detection management, personnel and vehicle positioning, equipment monitoring systems, plant operation management, and intelligent inspection systems. These are gradually building an integrated plant management platform.
2026 Objective	Establishing Smart Factories and the Learning and Application of Generative AI Cooling tower fan motors are optimized using generative AI combined with real-time atmospheric data to generate operating temperature setpoints, achieving automation and maximum efficiency. Phase I of intelligent adjustment for cracking furnace natural gas (data collection and forecasting) has been implemented. VCM tank truck filling and VCM pump area safety image recognition systems have been installed. The VCM filling island detection system is integrated with the safety interlock system to achieve real-time monitoring and proactive emergency response, reducing disaster escalation risks and enhancing overall process safety. An intelligent monitoring and status analysis system for ethylene underground pipelines has been established, adopting the Smart LDS system developed by ITRI. This system enables real-time anomaly detection and signal analysis, with immediate data transmission and edge computing to support real-time early warning and decision-making assistance. A generative AI platform has been introduced to manage catalyst quantities within the plant, ensuring compliance with current regulations and controlling catalyst storage timing. Among the six major smart technologies, the AI-based safety image system continues to be optimized. CGPC’s Processing R&D Department uses generative AI to create embossed printing patterns and simulate final products for customer confirmation, reducing trial-and-error costs and saving significant development expenses.
2027 Objective	Accelerating the Application of Generative AI Enhance the application of generative AI by extending it to utility processes and performance evaluation. Phase II of intelligent adjustment for cracking furnace natural gas (testing and execution) has been implemented, utilizing data feedback from tail gas oxygen analyzers and establishing basic operating curves to achieve performance improvement. Integrate various in-plant platform information, visualize data, and build a dedicated war room.
2030 Objective	Enhanced intelligence In the future, with the introduction of intelligent systems and smart learning control, AIoT technology will bring new vitality to traditional industries. In terms of hardware and software, technological integration enables intelligent monitoring and automated control, effectively improving production efficiency. Through energy management systems, energy use can be maximized while minimizing environmental impact. For safety enhancement, intelligent monitoring systems provide real-time hazard detection and offer rapid and accurate emergency responses. The upgrade to smart manufacturing not only strengthens hardware-software integration and enhances safety protection, but also accelerates the transformation of traditional industries toward a low-carbon future, supporting energy conservation and carbon reduction goals and contributing to environmental sustainability.

Low-Carbon Demonstration Plant in the Manufacturing Sector

TVCM Linyuan Plant (a subsidiary of CGpc) has been designated by the Industrial Development Administration, Ministry of Economic Affairs, as a demonstration plant under the “Low-Carbon Guidance Program for Small and Medium-Sized Manufacturers,” showcasing achievements in transformation and smart upgrades. By upgrading two cracking furnaces (F-6201 and F-6202), the plant addressed issues of refractory material aging and combustion efficiency, significantly improving energy performance. At the same time, it actively promoted smart upgrades, including:

Establishing a PSM platform to integrate equipment management, permits, and audit processes.

Introducing AI for distillation column optimization and early-warning operations.

Implementing a VOCs concentration monitoring system to strengthen safety and environ-mental management.

Through continuous investment and technology adoption, TVCM Linyuan Plant achieved an average annual electricity savings rate of 1.58% between 2015 and 2024. These efforts positioned the plant at the forefront of environmental protection and sustainable development, making it a benchmark demonstration site for the “2025 Low-Carbon Guidance Program for the Manufac-turing Sector.” For detailed information on equipment upgrades, smart management mechanis-ms, and quantified results, please refer to the supplementary materials: “Green Transformation and Smart Upgrades – TVCM Linyuan Plant.”

Smart Manufacturing and Low-Carbon Transition

Ming-Guang Tsai, General Plant Manager of TVCM Linyuan Plant, was invited to deliver a keyno-te speech at the “2026 TAISE Sustainability Trends Seminar.” His presentation, titled “Smart Manufacturing and a Sustainable Future: How Enterprises Can Leverage Technological Innovati-on to Achieve Resilience and Low-Carbon Competitiveness”, shared practical experiences of the petrochemical industry in driving low-carbon transition through AI and smart manufacturing.

Mr. Tsai highlighted that, in the face of carbon tariff trends such as the EU CBAM, enter-prises must actively reduce product carbon footprints and transform carbon reduction capabilities into competitive advantages in international markets. TVCM Linyuan Plant has introduced AI technologies to build a smart factory management system, including person-nel positioning, intelligent inspection, safety monitoring through image recognition, VOCs intelligent monitoring, and AI-based real-time leak detection for underground pipelines. These applications strengthen workplace safety and predictive maintenance, enabling a shift from traditional reactive repairs to proactive early warning and resilience management.

In addition, in response to global geopolitical challenges, overcapacity in mainland China, and domestic net-zero carbon pressures, the plant has adopted AI-driven process optimization and energy management to improve energy efficiency and reduce carbon emissions. Taiwan VCM Linyuan Plant continues to implement autonomous carbon fee reduction programs and multi-ple energy-saving projects, achieving an average annual electricity savings rate of 1.58%. It has been selected by the Industrial Development Administration, Ministry of Economic Affairs, as a demonstration plant under the “Low-Carbon Guidance Program for the Manufacturing Sec-tor,” showcasing the petrochemical industry’s practical achievements in smart upgrades and low-carbon transition.