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

1. 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 1

2. Contents 1. Introduction 2. Features of ESTPs 3. Strength of Taiwan 4. Incentive and Assistance Programs 5. Green Business Opportunities 6. Summary 2

3. Introduction - Strategic Locationof Taiwan 3

4. 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 4

5. 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 5

6. Features of ESTPs - Origin • Project Origin: • - in line with world trend on sustainable development • - making besteffort 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 6

7. 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 7

8. 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 • - balancingproduction, living and eco-considerations 8

9. 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 9

10. 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 10

11. 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 11

12. Features of ESTP - Summary • -High-value products • Advanced technologies • Zero/little emission Secondary(Wastes) Resources • Environmental Protection Administration (EPA) • Mapping out master plans • Providing incentives Environmental Science and Technology Park Authorized by EPA of ROC on 2003/03/11 #0920017748 • County Government • Providing land • Constructing ESTP • infrastructure • Marketing & • promotion • - Usher in expertise and capitals • - Develop new markets Components in ESTP - Mass Production - Research and Development - Support Facilities • Balancing • production, life and • ecology • Transforming into • new cities and towns Old cities and towns 12

13. Kaohsiung and Hualien ESTPs Hualien Kaohsiung Eco-Park Locations • 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 • 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 13

14. Kaohsiung ESTP • 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 14

15. ESTP Hualien ESTP • 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。 15

16. Strength of Taiwan • Ideal for Cooperative Investment and Trade • - government quick to remove investment barriers • and create freer market • - abundant capitalsavailable 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 16

17. 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 17

18. Strength of Taiwan (cont’d) • High Quality Human Resources • - wide range of skilled human power with potential • for globaloutreach • - rich brain power making local enterprises fully • competitive and in pace with international trend • and development 18

19. 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 19

20. 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 20

21. International Competitiveness W Complete harbor infrastructure and a central location at the hub of Asian transportation routes High-quality skilled R&D personnel / Strong industrial research and development capability A leading position in Asia in venture capital Taiwan’s Advantages Deep industrial base and strong vertical integration capability in the information and electronics industries Complete information and communications infrastructure A corporate sector with a strong spirit of entrepreneurship and innovation, and experience in international competition High extent of industrial computerization and digitization, appreciable trend toward knowledge and technology industries 21

22. 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 22

23. Incentives - Subsidies nR & D Subsidy(50% of requested budget) One-year project ; renewable for second year, if necessary • Researchproject: Maximum – EURO 125,000per case Number of subsidized projects – 10 cases per year • Pilotproduction: Maximum -EURO 250,000per case Number of subsidized projects – 5 cases per year 23

24. Incentives – Preferential Taxes nRelated StatutesEnjoy the relevant benefits mentioned in the “Statute for Upgrading Industry”, “Air Pollution Control Act”, “Resources Recycling & Reuse Act”, and “Waste Disposal Act”. nPreferential Taxes Up to2003-12-31, a newly incorporated company will be exempted from the profit-seeking-enterprise income tax for a period of five years from the date on which it begins to sell its product or render its services. 24

25. Incentive and Assistance Programs (cont’d) • Assistance Programs • - providing assistance service on : • . marketing and sales • . securing of raw materials • . settingproduct standards and specifications • . preferential procurement of green products • - one-stop administrative service on : • . permit and license applications 25

26. 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 26

27. 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 27

28. 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 28

29. 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 29

30. 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 30

31. 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 31

32. 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 32

33. 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 33

34. 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 34

35. 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, ROCwww.epa.gov.tw 35

36. Websites • Kaohsiung County Government www.kscg.gov.tw • Hualien County Government www.hl.gov.tw 36

37. 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 37