The week-long water shortage in Taoyuan County has caused damage estimated at NT$10 billion (US$285.7 million) to industrial infrastructure in the county's industrial zones -- as well as the death of one water company official due to heart failure.
As of Wednesday, estimated losses reported by some 310 firms and factories at the Kuanying Industrial Park (
PHOTO: CNA.
Worst hit were high-tech, biochemical and petrochemical companies, with daily losses estimated at between NT$700 billion and NT$800 million (US$20 million and US$22.8 million), he said.
The water cuts since Aug. 25 were not caused by drought, but by torrential rains triggered by Ty-phoon Aere, which washed tonnes of mud into the Shihmen Reservoir in Taoyuan outside Taipei.
The muddy water paralyzed almost all of the reservoir administration's purification systems, resulting in a water stoppage to most of Taoyuan, whose water supply comes mostly from the reservoir. Chiu said of the 350 firms in the park, production at 310 companies has either stopped or been reduced.
Amid firms' anger over the government's failure to restore water, technicians at the Taiwan Water Supply Corp (
After five sleepless days to help restore the water supply, Wu Chin-niu (
Wu was immediately sent to a hospital nearby but died in the evening. Minister of Economic Affairs Ho Mei-yueh (何美玥), who was asked by Taoyuan County Commissioner Chu Li-lun (朱立倫) to step down over the government's failure to restore water, was filmed by local cable television stations as she shed tears over the technician's death at the hospital in Taoyuan.
Ho reiterated yesterday that the ministry and the water company would seek to resume at least part of the normal supply for Taoyuan residents and some industrial parks tonight.
Chen Shen-hsien (陳伸賢), director of Water Resources Agency under the Ministry of Economic Affairs, said the water supply will be restored on a rotation basis in southern Taoyuan tomorrow morning. Premier Yu Shyi-kun promised on Tuesday to fully resume the system by Sept. 8.
The central government has allocated NT$150 million (US$4.2 million) in relief funds for Taoyuan residents to buy bottled drinking water.
The Taoyuan local government also lifted its ban on drilling wells to try to ease the shortage.
If normal supply is not restored soon, big firms like notebook computer maker Quanta Computer Inc (
Four nearby industrial zones with more than 400 firms have also reported combined losses of at least NT$2 billion (US$57 million), zone officials said.
A number of firms, including Acer Inc, were forced to spend at least NT$600,000 (US$17,142) a day to buy water in order to maintain their production lines, they said.
Both the Consumer Protection Commission and Fair Trade Commission called on related businesses, including water transporters and retailers selling bottled water, not to jointly force up prices of their products and services, according to statements released yesterday.
Violators can be fined up to NT$250 million.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to