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Environmental policy and management

Air Quality Management

Ta Ya Guanmiao factory has installed pollution prevention equipment at stationary sources of pollution where the pollutants are volatile organic compounds and particulate pollutants. The equipment contains catalytic converters, bag filters, and Venturi scrubbers. Reports and inspections on stationary pollution sources are done in accordance with the relevant air-pollution prevention regulations.

Cuprime measures stationary source of air pollution once a year, and reports its measurements on a regular basis. It has been certified by the environmental protection authority to comply with stationary air pollution standards.

Toxic Substance Management

The company has complete toxic chemical handling and chemical disaster prevention measures and drills in place. As varnishes and plasticizers are used in the manufacturing process, which are listed as regulated items of toxic chemicals by the EPA, Ta Ya is required to implement one emergency toxic chemical disaster prevention drill and two unscheduled drills annually in compliance with the relevant regulations. Moreover, the company implements one fire drill and one public hazardous material disaster prevention drill annually. Other affiliated companies do not use toxic substances.

Water Resource Management

All factories in Taiwan and Vietnam use only tap water. In order for the wastewater from the factories to meet the regulations for industrial effluent, Ta Ya’s Guanmiao and Dawan factories and Cuprime periodically inspect the water quality, maintain handling equipment, and have sewage treatment equipment in place. Every year, two sample tests are conducted on commissioned certified water quality facilities, and the processed effluent is discharged into the drains outside the factories. The receiving water bodies for the Guanmiao and Dawan factories are the Erren and Sanyegong rivers, respectively, while for Cuprime, it is the Fusen River.

With regards to effluents, all cooling water used in Ta Ya’s PVC and PE extrusion and CV production is channeled into the soft water recycling system, whereas water filtration and recycling are also adopted in magnet wire production to save water resources. The sand filter and sign at the waste water station of the Guanmiao Factory was damaged due to the earthquake in Meinong on February 6, 2016. A fine was imposed by the Tainan City Government because no improvement was made right after the earthquake. The improvements of the signs at the waste water station were reviewed and approved in May 2016. Application for air pollution control certification was renewed for the control facilities at the waste water station and approved in November 2016. The (raw) material and equipment in the Guanmiao Factory were damaged due to the earthquake in Meinong and two consecutive typhoons (Meranti and Megi) in September of the same year. Since a great deal of water was needed for cleaning and recovery from the disaster, the water consumption and wastewater discharge of the Guanmiao Factory were much greater in 2016 in comparison with previous years.

Recycling of rainwater is what we were implementing to conserve water resources. In 2011, Ta Ya installed storage tanks totaling 60 tons in capacity at its Guanmiao Factory to collect rainwater for watering, toilet flushing and floor cleaning. A water meter was later installed in June 2015 for measurement, which showed 187 tons of rainwater having been collected till 2016. No recycling of production water or rainwater has been adopted at the Dawan Factory.

Cuprime had more water consumption and wastewater discharge volume in 2015 and 2016 due to expanded capacity for production of phosphorus copper balls. Currently, Cuprime recycles water from the production process as a water saving measure. Recycled water is first treated using the wastewater pool then channeled to the forging section and used as cooling water on a circular basis. Ta Heng has also constructed a 150-ton reservoir and reserved part of its capacity to reclaim rainwater. Water supplied by this reservoir is directed to extrusion machines and toilets.

After the “Amendments of Water Act” was approved in May 2016, the Water Resources Agency plans to levy water consumption fees on the users who use more than 12,000 degrees of water in a year. On the other hand, measures are planned to reduce up to 60% of the fees if the goals of 9 indicators, including recycling of water, clean production, water footprint, renewal of resources, green product, and water conservation, are achieved. Ta Ya and Cuprime are expectedly affected. Though water expenses occupy a relative low percentage of the total cost, the companies will review all the actionable water conservation proposals and seek for suggestions on reduction of the water consumption fees.

Waste Management and Soil Pollution Assessment

The promotion of industrial waste classification and resource recycling is one of our annual goals carried out with the aim to encourage all our business units to implement waste classification and effective resource recycling in reducing environmental damage. Ta Ya divides waste classification into four categories: waste oil, waste solvents, waste fiber, and general waste. Waste in the first three categories is treated by waste treatment contractors certified by the Environmental Protection Administration. Waste oil is processed with physical treatment while waste solvents, wood, pallets, and general waste are incinerated.

All construction materials used by contractor - Hengs for the construction of solar power plant are reusable, including aluminum, iron and stainless steel. All construction waste is recovered and disposed by professional environmental service providers. Only fresh water, not chemical solution, is used for cleaning at construction sites, which poses minimal impact to the surrounding environment.

Fines were imposed by the Tainan City Government for two waste management deficiencies in 2016. The wastewater pool of the Guanmiao Factory must be repaired after an earthquake and the mud produced during the repair was temporarily collected in container bags without anti-leakage protections. The waste liquid buckets in the storage area at the garbage station were not labeled with the content of the bucket. These deficiencies had been removed in May 2016.

Since Ta Ya’s Dawan Factory was expanded in area, factory change registration was dealt with in May 2016. However, the soil pollution assessment and testing documents must be approved before the registration as required by relevant regulations. Since Dawan Factory did not have the approval, a fine was imposed by the Environmental Protection Bureau of Tainan City Government. Dawan Factory submitted the documents for review in November and the Environmental Protection Bureau of Tainan City Government issued a letter of approval in December to finish the procedure.

Response to Climate Changes

Greenhouse Gas Inspection

Ta Ya first adopted the ISO 14064-1 standards in the implementation of greenhouse gas (GHG) inspections in 2009. Total emissions then were 25,969.65 tons of CO2e. We use that as the base to measure our subsequent energy-saving and carbon-reduction efforts. The emission of GHG primarily comes from purchased electricity (Scope 2), which accounts for 91%, while the emission of stationary combustion sources, manufacturing process emissions, mobile combustion sources, and dispersive GHG emission sources (Scope 1) accounts for 9%. Meanwhile, some parts of the data collection process of other indirect GHG emissions (Scope 3) proved difficult, hence the primary focus has been on periodic inspections.

Ta Ya estimated a total emission of CO2e up to 20,797.76 tons in 2016. Purchased electricity (Scope 2) occupied a percentage of 98.96% and was Ta Ya’s primary source of carbon emission, and a major part of which was related to magnet wires. Ta Ya used 38,904,568 kWh of power in 2016, which was slightly less than the 40,269,600 kWh recorded in 2015. Optimization of equipment configuration, processes and energy efficiency will continue to be our key focus towards sustainability.

Carbon emission by the seven companies in Taiwan (Ta Ya, Cuprime, Ta Heng, Ta Ho, UEI, AD, and Hengs) totaled 31,055.76 tons CO2e, slightly increased in comparison with 2015. Ta Ya and Cuprime occupied 66.97% and 25.61% of the Ta Ya Group’s emission volume in Taiwan. As the Environment Group of the CSR Committee pointed out in the 2015 resolution, the total greenhouse gas emission volume of the Group in 2020 shall be less than the emission volume in 2015 by 5%. We will continuously strive to reduce carbon emission by 1% every year from this moment onwards.

Energy-Saving and Carbon-Reduction Measures

Although the group is comprised entirely of low-energy and low-water consumption businesses, it continues to improve the ways business operation is managed and introduce new energy-saving equipment. Several energy-saving measures have been adopted to date, such as: natural ventilation, power usage monitor, power efficiency improvement, use of energy-efficient lighting equipment, recycling of heat through thermal cycle, inverter device for cooling tower motor, and power-saving incentives for employees.

Ta Ya eliminated a wire-drawing machine of high power consumption in 2016 to save electricity up to 1,612,800 kWh every year. A set of high-efficient magnet wire equipment will be used as a substitute for two energy-consuming machines in 2017, and it may save electricity up to 1,803,630 kWh.

Cuprime’s SCR motor is old with low efficiency. It was replaced with a DC cooling fan motor in 2016 to save electricity up to 111,698 kWh. A capacitor is planned to installed on the upper-draw melting furnace in 2017 to save the electricity up to 717,240 kWh s every year. Ta Heng changed the T9 tubes and traditional inductive ballasts on the first floor of the office to T5 tubes and electronic ballasts to enhance the illumination and save electricity up to about 156 kWh every year.

Risks and Opportunities

Extreme high and low temperature and extreme heavy rain appear more frequently due to climate change. How to generally understand the risks and find potential opportunities is indispensable for an enterprise to pursue sustainable development.

All the factories of Ta Ya must enhance the drainage and maintain the factory buildings to face the risks in the change of the climate conditions and defend the attack of the extreme heavy rain and fierce typhoon. As for the opportunity, three consecutive typhoons (Magi, Meranti, and Nepartak) in 2016 brought about power failure and about 6 million households were affected merely because the wire poles were broken. To defend against typhoons thoroughly, Taipower started a disaster-preventive resilience project to lay cables underground in the section where roads are against the wind and seriously damaged. For Taiwan where earthquakes occur frequently, laying cables underground is most effective to ensure stable supply of electricity. To implement this project, Taipower prepares a budget of NT$ 7.4 billion to lay cables of 463 kilometers underground within 3 years. Ta Ya 25kV cables are used for the project. It will be beneficial to the operation of the Company.

As for the legal and regulatory risks, regular carbon inventory, improvement of equipment efficiency to meet the energy saving requirement, or use of renewable energy to an extent required by the government may lead to increase of the operating cost before long. However, the opportunities created by using more renewable energy is much greater than the risk. This not only encourages use of new products, but also bring the new investment opportunities.

  • Photovoltaics: Construction of solar power plant, development of special PV DC cables and optical fiber composite floating solar cables.
  • Marine energy: Development of special inter-array cables and export cables for offshore wind turbines; development of dynamic cables for wave-activated power generation.
  • New energy vehicle: Anti-surge magnet wires, magnet wires, thermal wires, polyimide magnet wires are developed to solve the problems of the higher frequency and temperature in the operation environment of the vehicle motors.