The two state-run enterprises both held board meetings at 2pm yesterday to discuss the name change issues, and the new names were immediately endorsed by the ministry, which is in charge of the two firms.
"Since CPC and CSBC are state entities, the name change can help them avoid confusion outside Taiwan. We believe the new titles will boost their corporate image, competitiveness and market share," Steve Chen told a press conference.
As some employees oppose the name change campaign, Chen said he had talked to the leaders of the two firms' labor unions on Thursday and promised that their rights and interests would be protected, which he said helped the board meetings proceed smoothly yesterday.
CPC vice president Tsao Mihn (曹明) said the board of directors yesterday demanded that employees' benefits not be sacrificed and that corporate performances be reviewed every six months to determine whether the new title brought any negative impact on operations.
CPC's new name already took effect yesterday afternoon, as the firm is 100 percent owned by the government. The ministry said that new signs could be put up at gas stations, starting Monday at the earliest.
CSBC, meanwhile, will have to seek shareholder approval for a new name, as it is 2 percent controlled by private shareholders and 98 percent by the government.
The shareholder meeting is scheduled for March 1, CSBC president Fan Kuang-nan (
Fan said changing CSBC's name could cost around NT$20 million, as it only needs to send notices to holders of its 30,000 contracts, instead of changing its documents.
CSBC is not worried that buyers will be affected or China will interfere, as it is a "seller's market" in the shipbuilding industry, and the 54 ships currently under construction will still obtain a good price on the market, he added.
Premier Su Tseng-chang (蘇貞昌) yesterday said that the name change of the three state-owned companies would not cost much and would not jeopardize employees' legal rights.
The name changes will avoid potential confusion for foreigners and will make the firms more competitive, because it will become easier to identify them with Taiwan, Su said during a press conference.
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