A fire engulfed a plastic factory of Nan Ya Plastics in Chiayi County, Taiwan, yesterday (Oct. 3), further tarnishing the image of Formosa Plastics Group (FPG). Taiwan’s leading manufacturing conglomerate, since it is the third fire inflicting the group in mere three months.
While the plant accounts for only a fraction of Nan Ya’s revenue, reaching MT$160.9 billion a year, the fire dealt another major blow to the image of FPG, as the litany of fires in a short time has fostered widespread suspicion of the managerial integrity of the group in the post-Y.C. Wang era.
If the negative effects of the Nan Ya factory fire perpetuates and the company's normal operations cannot proceed as scheduled, then the price of PE may increase to $1,500 US dollars / ton.