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Seminar on Eco-Park Business in Taiwan with Access to Asia

Overview of Environmental Science and Technology Park (ESTP) Project in Taiwan

Dr. Chih C. Chao, ITRI

September 2003

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Contents

1. Introduction

2. Features of ESTPs

3. Strength of Taiwan

4. Incentive and Assistance Programs

5. Green Business Opportunities

6. Summary

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Introduction - Strategic Location of Taiwan

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Introduction　

10-Year ESTP Project embarked by Taiwan to:

- pursue the goal of sustainable development

and globalization

- develop a circular economy

. inviting innovative and entrepreneurial eco-

business worldwide to join

. seeking cooperative partnership in: value-added

resource recovery, advanced environmental

technology and eco-industry

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Introduction (cont’d)　

10-Year ESTP Project embarked by Taiwan to:

- realize an opportunity of an exemplary

green business model by:

. pulling relevant expertise and capitals together on

an international scale

. building a base in Taiwan while accessing the Asia

market with a strong local support

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Features of ESTPs - Origin　• Project Origin:

- in line with world trend on sustainable development

- making best effort to resolve urgent environmental

issues

- searching for ways and means to enhance green

competitiveness

- meeting current policy requirements:

. air bubble management . water pollution fees

. safe water supply . resource recovery act

. nuclear-free country . zero waste disposal

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Features of ESTPs - Origin (cont’d)　• Project Origin:

- above policy demands technology upgrade on:

. air quality improvement

. process wastewater recycling

. desalination . renewable energy

. waste separation . resource regeneration

- need to develop a circular economy

. triggering growth of green industry

. expanding a global-oriented environmental

market

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Features of ESTPs - Principles and Aims 　• Principles:

- symbiotic growth, resource sharing,

information exchange and risk reduction

• Overall Aims:

- seeking cooperative partnerships with world-class

environmental companies

- developing low-pollution and high value-added eco-

business model

- balancing production, living and eco-considerations

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Features of ESTPs - Layout　• Overall Layout:

- consisting of :

. mass production area . R & D area

. support facility area . management center

. education and exhibition center

• Eco-Engineering:

- facility designed to ensure eco-friendly environment

- park planned to ensure synergistic industrial

clustering effect

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Features of ESTPs - Uniqueness 　

• Materials to be renewed/recycled

- expected to amount to 2.5 million tonnes per year

- providing a sound base for eco-industry operation

• Ushering cutting-edge environmental technologies

• Allowing international enterprises to :

- establish a strong base in ESTPs

- use Taiwan’s strong and influential economic link

- further expand business to Asia region

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Features of ESTPs - Support Service　

• Park Administration Center

- one-stop service window

. assisting permit and license applications

. providing operations management service on:

- information sharing

- guided park touring

- public education and communication

- corporate image building

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Features of ESTP - Summary

Environmental Protection Administration (EPA) - Mapping out master plans- Providing incentives

Environmental Protection Administration (EPA) - Mapping out master plans- Providing incentives

County Government- Providing land - Constructing ESTP infrastructure - Marketing & promotion

County Government- Providing land - Constructing ESTP infrastructure - Marketing & promotion

Environmental Science and

Technology Park

Authorized by EPA of ROC on 2003/03/11

#0920017748

- Usher in expertise and capitals

- Develop new markets

- High-value products - Advanced technologies- Zero/little emission

Components in ESTP- Mass Production- Research and Development- Support Facilities

Components in ESTP- Mass Production- Research and Development- Support Facilities

- Balancing production, life and ecology- Transforming into new cities and towns

Secondary(Wastes)

Resources

Old citiesand towns

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Kaohsiung and Hualien ESTPs

◎ Location: Kangshan Penchuy Industrial Park, Kaohsiung County

◎ Area: 40.11 ha◎ Condition of Site: Developed◎ Status of ESTP: Started investor application and review process in July 2003

◎ Location: Fonglin Industrial Park, Hualien County

◎ Area: 22.01 ha◎ Condition of Site:Under planning◎ Status of ESTP: Scheduled to start construction in December 2003

Hualien

Kaohsiung

Eco-Park Locations

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• Located in a developed industrial park equipped with sound infrastructure and utility service

• Situated within a strategic industrial zone with high concentration of metal (steel), petrochemical, electronic etc. industries

• Intending to develop an eco-industrial complex serving above industries

Kaohsiung ESTP

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• Industrial park under development

• Area known for mineral (graphite, cement, etc.) and agricultural industries

• Intending to develop a resource recovery circle and a life science center with focus on renewable resources and energy and bio-agricultural industry。

ESTP

Hualien ESTP

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Strength of Taiwan　• Ideal for Cooperative Investment and Trade

- government quick to remove investment barriers

and create freer market

- abundant capitals available while Taiwan

ranks among top three in foreign reserves

- high competitiveness backed by strong economy

and high-tech competence

- open domestic monetary market policy making

capital and funding arrangement much easier for

foreign business to operate internatioanlly

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Strength of Taiwan (cont’d)　

• Strategic Location

- an operational hub in Asia-Pacific Region

. well-developed infrastructure

. convenient transportation system

. fully functional ports and harbors

. free-flow customs system

- an ideal base to access market in Asia

. overwhelming business network tapping into

surrounding market

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Strength of Taiwan (cont’d)　

• High Quality Human Resources

- wide range of skilled human power with potential

for global outreach

- rich brain power making local enterprises fully

competitive and in pace with international trend

and development

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Strength of Taiwan (cont’d)　

• Sustainable Industrial Growth

- semiconductor, electronic and photonics

industries highly productive and competitive

- actively developing Eight New Industries:

. digital content . single-chip system

. precision semi-conductor machinery

. biotechnology . specialty materials

. nano-technology . others

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Strength of Taiwan (cont’d)　

• Sustainable Industrial Growth

- drive for environmental improvement leading

to eco-business opportunities for:

. green supply chain . cleaner production

. resource recovery

. renewable resources and energy

. sound water treatment

. advanced environmental technology

. cost-effective pollution control equipment

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International Competitiveness

Deep industrial base and strong vertical

integration capability in the information and electronics industries

High-quality skilled R&D personnel /Strong industrial

research and development

capability

A corporate sector with a strong spirit of

entrepreneurship and innovation, and

experience in international competition

A leading position in Asia in venture

capital

Complete information and communications

infrastructure

Complete harbor infrastructure and a

central location at the hub of Asian

transportation routes

High extent of industrial computerization and

digitization, appreciable trend toward knowledge

and technology industries

Taiwan’s Taiwan’s AdvantagesAdvantages

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　 Incentive and Assistance Programs

• Incentive Programs - various tax breaks and exemptions provided

for investments in Taiwan

- those in ESTPs receiving further subsidies on:

. land leasing and purchase

. production expenditures . R & D expenses

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   R & D Subsidy (50% of requested budget)

One-year project ; renewable for second year, if necessaryResearch project:

Maximum – EURO 125,000 per case

Number of subsidized projects – 10 cases per yearPilot production:

Maximum - EURO 250,000 per case

Number of subsidized projects – 5 cases per year

Incentives - Subsidies

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  Related Statutes

Enjoy the relevant benefits mentioned in the “Statute for Upgrading Industry”, “Air Pollution Control Act”, “Resources Recycling & Reuse Act”, and “Waste Disposal Act”.

Incentives – Preferential Taxes

    Preferential TaxesPreferential Taxes

Up toUp to 2003-12-312003-12-31, a newly incorporated company will be , a newly incorporated company will be exempted from the profit-seeking-enterprise income tax for a exempted from the profit-seeking-enterprise income tax for a

period of period of fivefive years from the date on which it begins to sell its years from the date on which it begins to sell its product or render its services.product or render its services.

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Incentive and Assistance Programs (cont’d)

• Assistance Programs

- providing assistance service on :

. marketing and sales

. securing of raw materials

. setting product standards and specifications

. preferential procurement of green products

- one-stop administrative service on :

. permit and license applications

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　 Green Business Opportunities

• Proven Development Experience - inherited successful experiences in establishing

traditional and high-tech industries in Taiwan

. example: Hsinchu Science-Based Industrial Park

. turning advanced technology into lucrative business

- realizing ESTPs by

. drawing international cooperation experience and

effective business mode as above

. ensuring “win-win” collaboration among partners

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　 Green Business Opportunities (cont’d)

• Drive for Eight New Industries - concerted effort among

industry/government/research partnership

- emphasis on innovation

- setting up R&D, incubation and business venture

centers

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　 Green Business Opportunities (cont’d) • Green Industry Development - green technology is needed to manage emerging

environmental issues, leading to growth of green

industry

- focus of green industry:

. cleaner production . resource recovery

. renewable energy

. strategic environmental technology

. wastewater recycling . soil remediation

. waste separation and regeneration

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　 Green Business Opportunities (cont’d) • Best Opportunity to Realize Green Industry - joining ESTPs in various forms

. independent investment

. technology transfer

. joint venture with Taiwan partners

- building a base in Taiwan for Asia operation

. capitalizing Taiwan’s strength in human power,

technical, marketing and financial aspects

. bringing in expertise and other resources to

realize high value-added eco-business

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Summary

• Tremendous Advantages and Potential

- Taiwan: best partner for development of green

industry

. rich capital . economic strength

. successful experience in international cooperation

. abundance of human resources

. drive for globalization

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Summary (cont’d)

• Excellent Record of International

Cooperation

- a democratic, liberalized and free economy

- HSIP etc. experience: a solid foundation on

international cooperation on advanced

technology

- assurance of success of future cooperation

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Summary (cont’d)• High Economic Power Engine

- government continuously introducing incentives,

removing obstacles and deregulating constraints

to encourage investments

- economy reviving with increasing foreign

investments

- implementation of Six-Year Development Plan

- promotion of Eight New Industries

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Summary (cont’d)• Accelerated Growth of Green Industry

- green industry in Taiwan

. stepping up technological, managerial and

ecological aspects

. growing compatibly with other industries

- continuous growth of green industry

. continuing its path of rapid growth

. offering unlimited business opportunities

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Summary (cont’d)

• Best Timing for Cooperative Partnership

- joining ESTPs

. offering advanced environmental technology

. creating another green economic miracle

- sustainable growth promised for

. innovative and entrepreneurial eco-business

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Websites

• Ministry of Economic Affairs, ROC

www.moea.gov.tw

• Industrial Development & Investment Center, Ministry of Economic Affairs, ROC

www.idic.gov.tw

• Environmental Protection Administration, ROC www.epa.gov.tw

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Websites

• Kaohsiung County Government

www.kscg.gov.tw

• Hualien County Government

www.hl.gov.tw

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Contacts

• Industrial Technology Research Institute • Dr. Chih C. Chao, Fellow and Senior Advisor

E-mail: ccchao@itri.org.tw

Tel: 886-3-5916309 Fax: 886-3-5916310

• Environmental Protection Administration • Mr. Yein Rui Hsieh, Senior Specialist

E-mail: yrhsieh@sun.epa.gov.tw

Tel: 886-2-2311-7722 ext. 2638 Fax: 886-2-2331-7741