Taiwan’s Cabinet ordered industrial conglomerate Formosa Plastics Group to shut down parts of its Mailiao petrochemical complex in Yunlin County July 31 following the second fire to hit the facility in a week.
The announcement came after ROC Premier Wu Den-yih called an emergency meeting July 30 with senior officials from the Ministry of Economic Affairs, Environmental Protection Administration and Council of Labor Affairs.
The latest fire, which brings the refinery’s total to seven for the year, has triggered fresh concerns over the safety of Mailiao and its long-term viability without extensive investment upgrades.
In addition to suspension of operations in parts of the complex reporting accidents in the past year, the Cabinet ordered comprehensive safety checks of pressure vessels similar to those involved in the latest fire.
FPG will also implement a multistage shutdown of production at the complex over the next 12 months so that detailed inspections can be carried out by a third party comprising domestic and international experts, according to the Cabinet.
Sources familiar with the matter said around 30 of the refinery’s 66 plants will be affected by the directive.
Formosa Petrochemical Corp. Chairman Wilfred Wang and President C.Y. Su both resigned from their posts following the incident. “We did not solve the problem. I should be responsible for this,” Su was quoted in the local media.
Analysts said FPG’s position as one of the top worldwide suppliers of polyvinylchloride, ethylene glycol and purified terephthalic acid means the shutdown will likely disrupt supply chains in the electronics and petrochemical industries.
Write to Meg Chang at meg.chang@mail.gio.gov.tw