Formosa Plastics co-founder Wang Yung-tsai dies at 93

TAIPEI - Wang Yung-tsai, Formosa Plastics Group (FPG) co-founder as well as the youngest brother of late FPG founder Wang Yung-ching, died in peace at the age of 93 yesterday, according to an announcement from the company.

Wang Yung-tsai, born in 1921, was the younger brother of Wang Yung-ching and began helping with his brother's business at an early age. Compared to the elder Wang, who impressed others with his physical energy and strict discipline, Wang Yung-tsai was known as a coordinator who dealt with various issues within the company.

Though Wang Yung-ching is given the credit for launching the largest petrochemical complex in Taiwan - the Sixth Naphtha Cracking Plant in Yunlin County - Wang Yung-tsai was the one who personally supervised the construction of the project.

The most important position held by Wang Yung-tsai was as chairman of the Chang Gung Foundation, which acted as a holding company for FPG.

According to friends of the Wang family, there is high potential for Wang Yung-tsai's eldest son and chairman of FPG William Wang to take over the position, which would virtually give him complete control of FPG.

The fact of the matter, however, is that when Wang Yung-ching and Wang Yung-tsai retired many years ago, they altered FPG's management from individual leadership into collective leadership.

At that time, they organised a seven-person team formed by the heads of different FPG-affiliated companies. This team has now expanded to include nine individuals.

While the team members collaborate to make crucial decisions for FPG, the Chang Gung Foundation has maintained its role as a buyer of FPG stocks, sustaining its right of management for FPG.

Wang Yung-tsai's Legacy Exceeds Older Brother's

It is estimated that the legacy of Wang Yung-tsai will exceed NT$70 billion (S$3 billion), as he owned significant shares in FPG and its affiliated companies. After subtracting the portion of his inheritance awarded to his wife by law, the remaining legacy could be valued at as much as NT$30 billion.

According to those with knowledge of the matter, although Wang Yung-tsai left a legacy exceeding that of his older brother, which was about NT$59 billion before taking into account the amount allotted to his legal wife, the inheritance tax levied on the funds may be less than was the case for his older brother, after the implementation of new regulations.

With the new tax system, Wang Yung-tsai's legal beneficiary will only need to pay 10 per cent of the legacy in taxes, which will be about NT$3 billion in the end, according to several accountants.

In addition, compared to Wang Yung-ching, whose legacy raised a huge battle among his family, Wang Yung-tsai's legacy will be simpler to deal with, according to friends of the Wang family.