Feedstock Sourcing for the Five Business Units GC sources feedstocks according to the nature of the five product categories, focusing on cost benefits, competitiveness, and the creation of added value across the value chain within GC Group to add value to products, increase business opportunities from upstream to downstream industries, and ensure efficient feedstock management. For the Upstream Business Unit, the primary feedstock is crude oil. In 2023, GC used approximately 55 million barrels of imported crude oil and internally produced feedstock from its aromatics plants, equivalent to 100% of its refining capacity as there were turnarounds throughout the year. The aromatic plants used approximately 4.4 million tons of condensates as the primary feedstock for production of aromatics and byproducts. For GC’s olefins production, the primary feedstocks were ethane, propane, LPG, and NGL, which are natural gases. In addition to the feedstocks mentioned above, GC also used light naphtha and LPG, which were by-products of GC’s refinery and aromatics plants. GC’s feedstock flexibility has enabled it to maintain high production stability and capacity to meet the needs of downstream industries. For the Intermediates and Polymers & Chemicals Business Units, by-products from GC’s aromatics and olefins plants are used as primary feedstocks to add value to products and enhance business capabilities. As for the Bio & Circularity Business Unit, feedstocks are mainly domestically sourced to promote domestic agriculture and related industries. For the Performance Chemicals Business Unit, allnex sources feedstocks from the market through a global procurement system to enhance its bargaining leverage over feedstock prices, while Vencorex sources feedstocks through short-term and long-term agreements, and KGC sources feedstocks from within GC Group. The feedstock usage of the five business units is summarized in the table below. 64
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