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 government declined to renew permits for its cogeneration equipment.

Formosa Chemicals has applied for the renewal of license for the power plant equipment, however the Changhua county government insisted 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 makes textile-related materials, such as rayon staple fiber and nylon fiber.

“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.

County government officials couldn’t be reached immediately for comment.

A shutdown of the plant would affect 1,000 workers. About half of its output is shipped overseas, and the plant generates about T$10 billion ($320 million) in annual revenues, accounting for about 3 percent of the company’s total revenue.

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