Fri, Jun 22, 2012 - Page 13 News List

FPG power outage could cost it NT$9bn

By Kevin Chen  /  Staff reporter

Formosa Plastics Group (FPG, 台塑集團) yesterday said a partial production suspension at some units of its Yunlin petrochemical complex due to a power failure on Wednesday could cut the combined sales of its four core companies by up to NT$9 billion (US$301 million) this month.

The four — Formosa Plastics Corp (台塑), Nan Ya Plastics Corp (南亞塑膠), Formosa Chemicals and Fibre Corp (台灣化纖) and Formosa Petrochemical Corp (台塑石化) — reported combined sales of NT$119.66 billion last month, down 16.1 percent from April, according to companies’ stock exchange filings on June 4.

The FPG said that, based on its preliminary estimate, the interruption at factories in the Mailiao (麥寮) and Haifeng (海豐) compounds within the Yunlin complex could cause a loss of about NT$100 million to Formosa Plastics Corp.

The incident would also cause a NT$100 million loss to Nan Ya Plastics, the nation’s largest plastics maker, and to Formosa Chemicals, which produces aromatics and styrenics, while not affecting Formosa Petrochemical, the nation’s second-largest refiner, FPG said in a statement yesterday.

The share prices of the four companies came under pressure yesterday after local media reported the impact of the production suspension might cause losses of between NT$1 billion and NT$4 billion.

Shares of Formosa Plastics Corp fell 0.37 percent to close at NT$79.8 and Nan Ya Plastics shares dipped 2.09 percent to NT$56.1. Formosa Chemicals shares dropped 0.75 percent to NT$79.6, while those of Formosa Petrochemical dropped 1.31 percent to NT$82.6.

The group said it started restoring electricity to the affected factories at 2pm on Wednesday, after it completed safety inspections on the sites that had been forced to shut down by the 11:52am outage.

While electricity supply was fully restored by yesterday, “Most factories are expected to return to normal operation within two days,” the group said in the statement.

“However, some other factories with complex manufacturing process are likely to restart in four to seven days given safety considerations,” FPG said, referring to the No. 2 and No. 3 olefins plants as well as the No. 1, No. 2 and No. 3 aromatics plants.

The temporary power outage was caused by short circuit in the double busbar circuit system in the petrochemical complex’s public utility area, the group said.

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