Related Party Transactions

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

We own a 50% equity investment in an SBC manufacturing joint venture in Kashima, Japan. Our “Due to related party” liability on the Condensed Consolidated Balance Sheets is related to this joint venture and purchases from the joint venture amounted to $8.4 million and $8.3 million for the three months ended September 30, 2017 and 2016, respectively, and $28.9 million and $22.2 million for the nine months ended September 30, 2017 and 2016, respectively.

We own a 50% variable interest in KFPC, an HSBC manufacturing joint venture in Mailiao, Taiwan. The KFPC joint venture is fully consolidated in our financial statements, and our joint venture partner, Formosa Petrochemical Corporation (“FPCC”), is a related party affiliate. Under the terms of the joint venture agreement, FPCC is to provide certain site services and raw materials to KFPC. Our total purchases during the three and nine months ended September 30, 2017 were $4.8 million and $8.9 million, respectively, and our outstanding payables was $2.1 million as of September 30, 2017. See Note 14 Variable Interest Entity, for further discussion related to the KFPC joint venture.

In 2015, a former board member was appointed the Chief Executive Officer of Jacobs Engineering Group, Inc. (“Jacobs”) which has historically supplied site maintenance and engineering services for our Belpre, Ohio, facility. This board member resigned from our board in May 2017. Our total purchases from Jacobs amounted to $2.5 million and $3.4 million during the three months ended September 30, 2017 and 2016, respectively, and were $8.6 million and $8.5 million during the the nine months ended September 30, 2017 and 2016, respectively, and our outstanding payable was $0.2 million as of September 30, 2017.