Risk Management Plans

USI-CSR-Supply Chain Risk Management

Risk management solutions

The procurement amount of plasticizing materials (ethylene and VAM) is the highest every year. The 2020 procurement of such materials accounted for 92% of the total. Currently, ethylene and VAM are the major raw materials of USI products. In consideration of the risk of a supply shortages, we have adopted the following solutions:

Type Potential Risk Strategy Practice
Materials Risk Supply interruption Source dispersion Cultivate new sources across the world.
Supply contract Sign long-term supply contracts with important suppliers.
Strategic procurement Analyze market movements regularly and adjust the optimum procurement strategy.

Bulk material suppliers

To secure the sustainable supply of material sources and stimulate market circulation, we actively cultivate new material sources and increase bulk material suppliers to 12 companies, including 3 domestic suppliers and 9 foreign suppliers.

Locations/Materials 2020/Ethylene 2020/VAM/th>
Taiwan 87% 72%
Foreign 13% 28%
Source Totaling 6 suppliers Totaling 6 suppliers