Operation Suspension and Safety Inspection Group

The group is responsible for following the established safety protocols and proceeding with the suspension of factory operations within the accident and non-accident zones, including production shutdown, system cool down, sequential equipment shutdown and necessary power shutoffs, to ensure safety over the entire process. The group is also tasked with establishing plans for resuming operations and conducting pre-startup safety reviews prior to trial operation. During the suspension period, the group oversees additional tasks such as operational scheduling and coordination with suppliers of raw and auxiliary materials.

Care and Support Group

The group ensures the provision of medical treatment, care and support for the injured employees and their families, including regular visits and consolation. The group also implements the medical case management system with dynamic tracking. Additional duties include facilitating psychological first aid (PFA) and tiered screening, offering strong post-traumatic psychological support to employees impacted by the incident with administrative assistance when filing for occupational injury compensation, insurance payments and subsidies.

External Affairs Group

This group engages in external communication and coordination, providing progress reports and current status to government officials, elected representatives and the media. The group also comforts and consoles local residents affected by the incident, establishing designated contact points to ensure consistency in external communication.

Technical Expert Group

The group provides production safety diagnosis and cause analysis, including a comprehensive review of process safety for all operations and locations within the plant involving heat transfer and the reinforcement of risk control measures. Specifically, the group collects pre-and-post-incident process operating parameters, equipment status and inspection and maintenance records to establish data sets for analysis. The group also seeks third-party professional entities to conduct systematic analysis and provide technical guidance.

Reconstruction Group

The group is in charge of cleanup at the scene, removal of damaged equipment, filing for insurance benefits and planning for resuming operation within the accident zone. The responsibilities also include arranging on-site inspections conducted by insurance companies and structural engineers to identify structural damages; planning and implementing necessary restoration and safety projects; documenting property losses; disposing of waste in accordance with regulatory requirements.

Material Information and Press Conference

On the day of the gas explosion, FENC made a material information post on the Market Observation Post System before 9:00 AM, providing details regarding the incident and the injured and deceased employees along with explanations of the impact on the Company's operation. FENC followed the first post with additional material information postings on February 7 and 8, providing progress updates. Identical information was posted simultaneously on the official FENC website to keep stakeholders informed with the latest development. On February 8, the President of Corporate Management, along with senior executives, held a press conference to express sincere apologies to the employees who were wounded and passed away, and for causing public anxiety. During the press conference, they explained the cause of the incident, the scope of its impact and the ensuing improvements. They also answered questions from the press, taking full responsibility for what happened and communicating with openness and transparency.

A Pledge of Sweeping Overhauls with Newspaper Announcement

FENC took the initiative to inform the public by making a newspaper announcement on February 8, offering a public apology and explaining the handling of the incident. Also included was a pledge to conduct a thorough review for complete overhauls and dedicate full attention to assist the families of the deceased and comprehensive medical care for the wounded. FENC also informed the neighboring residents of the details regarding the incident and actions that had been taken to ease their anxiety with a promise to bolster safety management in order to prevent future occurrences.

Ensuring Information Accuracy with Designated Contact Points

Following the incident, FENC arranged designated contact points based on duties as the channel for external communication, including dedicated personnel for government agencies, such as the Occupational Safety and Health Administration and the Fire Bureau, to maintain the consistency of external communication.

Capacity Scheduling: Inter-plant Support for Operational Continuity

As a response to the suspension of operation, FENC followed its inter-plant coordination model and proceeded promptly to capacity scheduling, allocating production and distribution capacities from production sites in mainland China, Vietnam, Japan, the U.S. and other parts of Taiwan to support Hsinpu Chemical Fiber Plant. The coordinated efforts maintained the level of minimum supply for major customers. As to operational resources during this period, FENC adjusted the procurement strategies to temporarily suspend the purchase of raw and auxiliary materials. Procurement under contractual obligations was postponed or assigning other production sites as destinations. The incident prompted the standardization of protocols and mechanisms concerning capacity scheduling and risk assessments for significant raw materials in the event of major accidents or operation suspension, which serves to buttress operational resilience.

Forging Strong Customer Trust with Real-time Update on Operation Resumption

As part of the post-incident effort, FENC swiftly established a cohesive external communication system, engaging customers proactively through designated contact points in corresponding business units. Based on the magnitude of impact, customers received pertinent information regarding the scope of operation suspension, plans for trial operation and arrangement for resuming operation. They are also provided with real-time updates on capacity and delivery scheduling. FENC took a stand on honesty and transparency while maintaining stable supply, preventing information asymmetry and mistrust among customers by providing them with ongoing streams of progress updates for trial operation and operation resumption, which have boosted their confidence in FENC’s operational reliability.

Non-accident Zone

Trial operation was conducted for suspended operations in non-accident zones in accordance with the plan approved by the authority. Prior to resuming work, the planning of operational, suspension, resumption and emergency response procedures had been completed. Pre-startup safety reviews were also performed prior to the trial operation. After obtaining government approvals for the south and north plants in May and June 2025, respectively, the trial operation for the heat transfer system commenced according to the approved plan. The focus was on controlling and verifying process safety parameters, including monitoring key conditions such as temperature, pressure and flow rates. The required improvements were confirmed through on-site inspections with documentation. The trials followed the criteria of low load and phased implementation with reversibility and verifiability, and the plant continues to implement self-audit on and operational management to keep all operations compliant with safety regulations.

Accident Zone

The Hsinchu District Prosecutors Office lifted the lockdown order for the accident zone in January 2026. However, as of June 2026, FENC has kept the area sealed.

Employee Medical Care

Following the incident, FENC instantly established a comprehensive management system for injured employees, creating a patient registry, appointing designated contacts, documenting visits and keeping records. A case management system was also created to consolidate information such as treatment plans, follow-up appointments, medication, rehabilitation and additional needs, giving the wounded employees proper and consistent care. FENC also arranged for its staff to attend to the hospitalized colleagues on rotating shifts 24 hours a day and provided the necessary rehabilitation aids. All medical costs are assumed by FENC. For employees recovering at home, FENC provided guidance on convalescent care, including dressing change, health and hygienic information, and assisted with applications for occupational accident compensation, insurance and additional subsidies.

For employees suffering injuries, FENC helped them receive the vocational rehabilitation service for workers with occupational injuries and undergo vocational assessments, which act as a reference for rehabilitation planning and evaluate their abilities to return to work. Monthly follow-ups were scheduled to track their usage of assistive devices and rehabilitation progress, helping them transition seamlessly back to their posts. With proper treatment, 13 employees have returned to work. Those who are still recovering continue receiving paid leave and vocational rehabilitation based on their conditions. It is FENC’s intent and responsibility to help each and every one of them receive the care and support they need.

Family Care

To assist the families of employees injured as a result of the incident, FENC established designated contact with emergency contact information to deliver timely information from a single source. They also received a detailed set of documents covering compensation, insurance, subsidies, medical procedures and frequently asked questions. For employees of foreign nationalities, their family members received professional interpretation and escort services as well as daily support such as visa assistance, accommodation, transportation and hospital visits. FENC paid for the expenses associated with the airfare and accommodations during their stay in Taiwan and established a liaison with foreign missions and brokerage agencies to facilitate prompt notification when attention was needed.

Psychological Consultation and Counseling

PFA was immediately activated after the incident, and high-risk cases were identified through triage. Employees could seek help while feeling protected through confidential referral and self-reporting mechanisms established by FENC. A collaboration with the Far Eastern Memorial Hospital allowed the Company to initiate 10 support campaigns within three months of the gas explosion. Based on the severity of impact, employees were categorized into priority, second priority and general care groups. A total of 59 employees completed the interview and received individual consultation and counseling with healthcare professionals. A training on the warning signs of and coping guidelines for post-traumatic stress disorder was also provided to help employees handle and recover from the traumatic experience.

Funeral Arrangements and Compensation

To take responsibility for the two employees who unfortunately lost their lives as well as their families, FENC committed itself to providing full support during the funeral arrangement and higher bereavement compensation than the regulatory requirement. For transparency and compliance purposes, FENC has a detailed system in place regarding funeral assistance and the provision of condolence and compensation to the bereaved family members. Tracking and reporting are also required to make sure the families receive the aid and assistance they need. Legal and insurance information is also provided, keeping them aware of their rights and preventing any disconnect during the process. A future plan is to establish a long-term memorial service and family contact system, extending FENC’s care and support for the long haul.