 2015-03-31 |
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Xinzhou Group Launches Succession Plan, Embracing a Plastics Model and Professional Management System
[Reporter: Zhou Yi-Liang / Taipei]
Xinzhou Group President Li Zhi-Xian has revealed plans to initiate a succession plan this year, following the Plastics model, and to transition towards a professional management system. In the future, Xinzhou (4306) will transform into a holding company involved in construction, ACHEM (1715) will focus on tape production and upstream tape film business, and Xinzhou Global (3171) will become a tape packaging material distributor.
This year, ACHEM will see its Yangmei PE (polyethylene) plant and the China Hai'an plant come into operation, with annual production of 80,000 tons of acrylic acid, 80,000 tons of butyl acrylate, and 20,000 tons of crystalline acid.
Xinzhou Group Operational Overview: Building a Tape Kingdom
Xinzhou Group’s largest investment project to date is its investment in ACHEM’s petrochemical business, which has an annual production value of approximately NT$5 billion. It is expected that with the acquisition of the production license in the second half of the year, Xinzhou’s revenue will experience a significant leap, reaching NT$21 billion for the year, a nearly 20% increase.
During the 2008 financial crisis, when there was a conflict between the second generation of ACHEM’s founder and former chairman Ye Shi-Ying, leading to a significant drop in stock prices, a “small merges big” scenario unfolded. After current legislator Liao Zheng-Jing took over as chairman the following year, Xinzhou acquired Xinzhou Global (formerly Tianqi Technology), officially establishing itself as an international tape industry giant.
Li Zhi-Xian, who speaks fluent Taiwanese Mandarin, was born in 1955 and grew up in the rural area of Xiluo, Yunlin. He started his career working at a freight company and, recognizing the burgeoning demand for tape in Taiwan's industrial boom, used NT$100,000 to start his own business in Taishan. He founded Xinzhou, and after acquiring ACHEM and Tianqi Technology, despite facing numerous challenges and mixed opinions, he announced that Xinzhou Group would officially enter a new era of professional management.
Moving Towards a Holding Company Structure
Li Zhi-Xian stated that Xinzhou will transition into a holding company structure, with tape manufacturing and sales being managed by professional managers. His eldest son, Li Shu-Wei, will manage the construction investment firm, Wangzhou Construction, while his second son, Li Qi-Zheng, will learn production management as the Vice Executive President of ACHEM and ACHEM Chemical. The three listed companies—Xinzhou, ACHEM, and Xinzhou Global—will all be managed by professional managers.
As part of the succession plan, the position of General Manager at Xinzhou has recently been handed over from Li Shu-Wei to Xie Qiang, the former Changhua Plant Manager of Xinzhou. The General Manager role at ACHEM Chemical has been taken over by Lin You-Sheng, the former Sales Manager of ACHEM, while Xinzhou Global’s position is now held by the former General Manager of Xinzhou’s packaging materials division.
Expanding Overseas and Competing in Business
Li Zhi-Xian, with a background in business, took over the tape leader ACHEM in 2008, and after stabilizing the company, he is now eager to expand overseas. He plans to delegate significant authority to professional managers while traveling globally. Li aims to regain global prominence by reviving relationships with former partners, such as Yi Fu-En (former Director of the Republic of China Air Force Intelligence Division), and restoring the reputation of what was once the world's second-largest tape manufacturing group. |
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