Formosa Chemicals to shut down Taiwan plant
Formosa Chemicals & Fiber Corp., a unit of Formosa Plastic Group, is planning to shut down its plant in Taiwan from first week of October because the government declined to renew permits for its co-generation equipment.
Formosa Chemicals has applied for the renewal of license for the power plant equipment, however the Changhua county government insisted that the company apply for a new permit, as the amount of coal and steam used during the manufacturing process has changed over the intervening decades, said vice chairman Hong Fu-yuan.
The plant mainly produces textile-related materials, such as rayon staple fibre and nylon fibre.
“We are facing a major crisis,” said the vice chairman. “We have stopped shipping raw materials used in making products today,” he said, adding” that the application for renewal has been rejected 37 times by the county government.”
The County government officials couldn’t be reached immediately for comment.
A shutdown of the plant would affect 1000 workers. About half of the plant’s output is shipped overseas, and the plant generates about TWD 10 billion (USD 320 million) in annual revenues, accounting for about 3 % of the company’s total revenue.