Typhoon Fanapi Shuts Petrochemical Plants in Taiwan

Formosa Plastics Corp. and Nan Ya Plastics Corp. are among more than 30 petrochemical makers in Kaohsiung in southern Taiwan that have halted production since yesterday afternoon because of flooding caused by Typhoon Fanapi.

“Floodwaters in Kaohsiung’s petrochemical parks were higher than 100 centimeters (39 inches) yesterday and Taiwan Power Co. cut the electricity supply for safety reasons,” Kuo Chao-chung, head of the petrochemical section at the Ministry of Economic Affairs’ Industrial Development Bureau, said by telephone. “It’s still raining there and production may resume tonight or tomorrow morning at the earliest.”

The production halt has caused financial losses of about NT$2 billion ($63 million) for Taiwan’s petrochemical companies, the Economic Daily News reported today, without saying where it got the information. Kuo said he couldn’t give an estimate on the losses.

Fanapi swept through Taiwan yesterday with winds gusting as high as 180 kilometers (112 miles) an hour, downing electric lines, forcing evacuations and closing schools, offices, airports and ground transportation. Companies in the county’s industrial parks of Jen Ta and Linyuan include China Manmade Fibers Corp.

Formosa Petrochemical Corp., which doesn’t have plants in the Kaohsiung parks, said Fanapi didn’t have any “significant” impact on its operations, according to a filing to the stock exchange today.