TAIPEI, Sept 30 Formosa Chemicals & Fiber Corp
, a unit of Formosa Plastic Group, said on Friday it
will shut down its plant in central Taiwan beginning next week
as the local government declined to renew permits for its
Formosa Chemicals has applied to renew the license for the
power plant equipment, however the Changhua county government
insisted the company apply for a new permit because the amount
of coal and steam used during the manufacturing process has
changed over the intervening decades, said vice chairman Hong
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
A shutdown of the plant would affect 1,000 workers, the
vice chairman said. 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.
Shares of the company closed down 1.3 percent, roughly in
line with the main index's 1.12 percent slide.
(Reporting by Faith Hung; Editing by Christian Schmollinger)