Water Resources and Wastewater Management

Water Consumption
(Million liters)

Overview of water usage in the factory area

Hon Chuan's packaging and beverage production factories are located in Xitun District and Wuri District of Taichung City. They are situated within the drainage basins of the Da'an River, Dajia River, and Wuxi River. The main water sources include the Liyu Lake Reservoir, Shigang Dam, and groundwater.
The packaging business unit (Taichung Plant and Taichung Plant II) primarily uses groundwater for air conditioning and process cooling water, mainly during the summer months (April to October). The annual water usage for the packaging business unit is 265 million liters.
The beverage business unit (Aseptic Plant 1, 2, and 3) engages in beverage contract manufacturing and relies on tap water as its water source. The demand for water increases during Taiwan's beverage peak season from May to October. The annual water consumption for the beverage business unit is 1,476.84 million liters.
All wastewater from the factories is treated to meet regulatory discharge standards before being discharged into the sewage system within the industrial park. Apart from rainwater, wastewater is not directly discharged into surface water bodies. The company has established emergency response procedures and conducts regular training and drills related to wastewater leakage to prevent pollution and environmental impact from abnormal discharge.

Water Type and Water Consumption(Unit: million liters)

Source \ Business	2021		2022		2023
Source \ Business	Packaging	Beverage	Packaging	Beverage	Packaging	Beverage
Ground water	51.62	1,348.35	104.89	1,415.5	120.16	1,476.84
Tap water	180.44	-	141.75	-	144.84	-
Total	1,580.41		1,662.14		1,741.84

Water Discharge/ Water Withdrawals Statistic(Unit: million liters)

Year	2021	2022	2023
Water Discharge	922.42	1,026.86	1,052.94
Water Consumption	657.99	635.28	688.90
Total	1,580.41	1,662.14	1,741.84

Total Wastewater Discharge

The beverage business unit, operating within the Taichung Port Technology Industrial Park, is a significant water user and discharger compared to other units in the park. In 2023, Aseptic Plants I, II, and III discharged approximately 16.79%, 15.31%, and 7.73% of the total wastewater into the industrial park's sewage system, respectively. The wastewater generated primarily originates from process equipment cleaning water and wastewater from tea residue sludge dewatering. Each plant utilizes chemical coagulation and biological treatment methods to reduce pollutants in the wastewater to meet discharge standards before it is collected and discharged into the sewage system of the Taichung Port Technology Industrial Park. Data on wastewater volumes are sourced from water usage maintenance fees for 2021 at Taichung Plants I and II and meter readings from 2022 to 2023 at Taichung Plants I and II and meter readings from 2021 to 2023 at Aseptic Plants I and II.
In accordance with water pollution prevention and control measures and reporting management regulations, the plants conduct semi-annual regular wastewater quality testing and reporting operations. All plant wastewater discharges comply with regulatory standards for discharge into the sewage system.

All wastewater from the factories is treated to meet regulatory discharge standards before being discharged into the sewage system within the industrial park. Apart from rainwater, wastewater is not directly discharged into surface water bodies. The company has established emergency response procedures and conducts regular training and drills related to wastewater leakage to prevent pollution and environmental impact from abnormal discharge.

Water Conservation Measures

In 2018, the Beverage business unit initiated a water footprint assessment to analyze water usage hotspots within the facility, aiming to manage water resources effectively and plan water conservation strategies. In 2021, we collaborated with customers on a water vulnerability assessment report and water resource management plan activities. Based on the assessments conducted post-implementation, we established action plans to address identified risks, including water resource recovery and external water sourcing preparations during dry periods.

Risk Introduction	Mitigation Actions
Regional Water Sources: During dry periods, there is a shortage of drinking water. The water intensity of the sterile beverage plant accounts for approximately 38.78% of the Taichung Harbor Science Park.	Establish an early warning plan and stay updated on the latest water restriction measures announced by the government. Coordinate with customers to adjust batch production quantities when the Water Resources Agency issues a yellow light (water pressure reduction) alert. Monitor the water intake at the water towers in the Taichung Harbor Science Park and dynamically adjust production line outputs. Coordinate with customers to increase the batch size of individual production runs to minimize product changes. Establish pipelines for external water sourcing. Implement water recycling and reuse (water conservation measures).
Continuity of Water Supply: Regional construction that damages water transport pipelines or factors such as typhoons can lead to water quality abnormalities and shortages of water sources.	Promptly investigate abnormal water quality conditions and report them to the water supply company for assistance in improvement. Implement measures such as issuing turbidity warnings or halting water supply based on raw water turbidity alerts. Establish pipelines for external water sourcing.
Water consumption fee/tariff	Water Resource Recovery Project: Promote the use of ROR (Reverse Osmosis Reject) water, reuse of discharged water, and recycling of process water. Subsequently, promote water recycling and reuse (water conservation measures). Coordinate with customers to increase batch sizes of production runs. Promote green factory certification.
Stakeholders - Water Quality and Environmental Issues	Meeting Taichung Harbor Science Park Industrial Park Sewage Treatment System Water Quality Standards: Biochemical Oxygen Demand (BOD) 250 mg/L, Chemical Oxygen Demand (COD) 450 mg/L, Suspended Solids (SS) 250 mg/L, and related discharge water quality standards.