An FPG statement released Oct. 16 said that Wang had been in the United States on a business trip and died peacefully in his sleep at the New Jersey home of his daughter. Known islandwide as the "God of Management," the manufacturing magnate's life epitomizes the era when Taiwan shifted from poverty to prosperity.
A farmer's son with only an elementary school education, Wang was sent by his father to work as an apprentice in a rice shop at the age of 15. A year later, he opened his own store after borrowing the tiny sum of NT$200 from his father. At 26 he started a lumber business, which thrived during the post-World War II construction boom. In 1954, when Wang was 37, he established Formosa Plastics Corp.--at that time, the world's smallest PVC (polyvinyl chloride) producer.
Today Formosa Plastics is not only the world's biggest PVC producer, but also the parent of at least 40 companies and organizations. Businesses under the Formosa Plastics Group include oil refining, petrochemicals, textiles, machinery, medical care, thermal power, electronics, gasoline retail, cosmetics and car manufacturing.
Boasting a combined revenue of US$61.56 billion in 2007, second only to Hon Hai Precision Industry Co. with US$62.5 billion, FPG has been the most profitable conglomerate in Taiwan since 2004. According to the latest rating by Taiwan-based China Credit Information Service Ltd. released mid-October, FPG posted a net profit of US$6.7 billion last year.
Constantly in search of new opportunities, Wang expanded his business empire to the Philippines, United States, Vietnam and mainland China. In March 2008, Forbes listed Wang as Taiwan's third and the world's 178th wealthiest person, with a personal fortune estimated at US$5.5 billion.
Although Wang retired as the group's chairman in 2006 and was no longer involved in the day-to-day operations of the business, news of his death still impacted upon the group's shareholders. Share prices of FPG's constituent firms tumbled on the Taiwan Stock Exchange by close to its daily limit of 3.5 percent Oct. 16. However, most analysts are of the opinion that the group's fundamentals are very healthy and predict that while Wang's death may influence FPG share prices in the short term, they would not affect the group's operations in the long run.
Standard & Poor's Ratings Services said Oct. 16 that the core companies of the group--Formosa Chemicals & Fiber Corp., Nan Ya Plastics Corp., Formosa Plastics Corp., and Formosa Petrochemical Corp. (all rated "A-")--have not been immediately affected by Wang's passing. "Although we believe Wang was still highly influential in the group, we do not expect his death to have an immediate and material effect on the group's business plan and operations," the S&P statement said.
Despite being considered a model corporate citizen, Wang's group had long been in conflict with environmental activists over the issue of pollution, with FPG's Sixth Naphtha Cracker Project described by greens as the most controversial industrial construction project in Taiwan's modern history. In 1986, the Kuomintang government greenlighted the then valued NT$90 billion project, with Yilan and Taoyuan counties selected as the preferred locations. The project provoked intense opposition from local residents and environmentalists, forcing FPG to shelve the proposal in 1989.
Not one to be easily discouraged, Wang then secretly visited mainland China in search of an alternative site for the development. In 1990, he announced his "Haitsang Project," which sought to transform Haitsang Island in mainland China's Fujian Province into a "petrochemical city."
Following the ROC government's condemnation of Wang's mainland venture, the tycoon backed off on the proposal and in 1992, was able to secure an offshore site in Taiwan's Yunlin County for FPG's Sixth Naphtha Cracker. The annual output value of the site has reached US$39 billion and accounts for 9.67 percent of the nation's gross national product. Much to chagrin of Taiwan's environmentalists, the site also produces more than a quarter of the country's carbon dioxide emissions.
Throughout his life, Wang made a point of steering clear of politics, but as big foreign investor in mainland China and a strong proponent of closer cross-strait economic ties, his moves carried weight in interactions across the Taiwan Strait. Leaders on both sides of the strait expressed their condolences over Wang's death.
Wang was involved in various charity projects in mainland China, including establishing 10,000 elementary schools and donating 100 million yuan in quake relief following the devastating Sichuan temblor in May. His death has also been widely mourned by people across the strait.
Write to Ellen Ko at ellenko@mail.gio.gov.tw