Formosa Plastics Group (FPG) subsidiary Nan Ya Plastics Corp. has received approval from the Yunlin County government to resume production at two plants that were shut down last month over safety concerns, as per CNA. The two affected ethylene glycol plants have an annual capacity of 1.16 mln tons, accounting for almost 70% of the total ethylene glycol capacity in the Mailiao complex. Ethylene glycol is Nan Ya's major source of revenue. The resumption of production is expected to help the company reverse its falling profitability.
Resumption of operations at the two ethylene glycol plants is scheduled for Saturday, and has triggered buying in other FPG units. This move is expected to lead to operations being restored at other FPG subsidiary plants, which were also shut down after two fires hit the group's major petrochemical complex in May, possibly resulting in the production slowdown that has hampered sales. Shutdown of the two ethylene glycol plants has cost Nan Ya an estimated NT$17 mln a day.