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Yi-Chiu and Formosa Petrochemical Corporation signed a 10-year agreement in
March 2006 to lease 13 gas stations to Formosa Petrochemical Corporation with more
than NTD 2 billion for a term of 10 years. The rental is more than 5 times that of other
privately run gas stations. Furthermore, the gas stations of Yi-Chiu are located at
prime locations. For instance, Chung Hsing Gas Station in Sindian is located at the
intersection between Chung Hsing Road and Min Tzu Road, dispensing more than
100,000L of oil every day.
The reason why Formosa Petrochemical Corporation pays such a high rental is that
they want to explore and increase its market share. Furthermore, Yi-Chiu’s
management team demonstrates high operation efficiency, plus, Yi-Chiu used to be
part of CPC’s alliance system, but is now part of Formosa Petrochemical Corporation.
All of these reasons play a key role to Formosa Petrochemical Corporation’s intention
of incorporating Yi-Chiu into its gas station team at the anticipated price.
Yi-Chiu began to operate gas stations in 1996 and later began cooperating with Ho
Tung Group, leading to the formation of Caltima. After six years of working together,
the different operating styles and concepts of the two parties resulted in the agreement
of terminating the cooperation for separate operations. Yi-Chiu then acquired 5
large-dispensing-volume gas stations situated at prime locations in Taipei and
gradually expanded the business by increasing the number of gas stations to 13.
In view of the increasingly competitive gas station market, Chairman Chin began an
agreement with Formosa Petrochemical Corporation in March 2006 to lease 13
Yi-Chiu gas stations to Formosa Petrochemical Corporation. Yi-Chiu has continued to
increase investment by developing new gas stations. Thus, the operation team is
taking great strides towards the future. |
