March 23 (Bloomberg) -- Formosa Plastics Corp., the world's second-biggest maker of polyvinyl chloride (PVC) was told by the Taiwanese government to curb pollution at a plant or it may be fined.
Tests showed the soil and groundwater underneath Jenwu plant have been contaminated, the Environmental Protection Administration in Taipei said in a statement on its web site yesterday. The PVC maker must contain the pollution or pay a fine of as much as NT$750,000 ($23,600), the EPA said.
Formosa Plastics started making PVC in Jenwu in the southern county of Kaohsiung in 1972, according to its 2008 annual report. The company should ⌠actively prevent pollution from spreading and improve the conditions, the EPA said.
A lack of adequate facilities ⌠in the early days and other factors including earthquakes had caused waste water from the plant to seep into the ground, the company said in a statement to the Taiwan Stock Exchange today. Formosa Plastics has since built a waste-water treatment plant that prevents the pollution of groundwater, according to the statement.
The shares fell 1.6 percent to NT$69.90 in Taipei trading at 11:33 a.m. today. The benchmark Taiex stock index declined 0.8 percent.
Formosa Plastics has plants in other locations, including western Taiwan's Mailiao.
MRC Reference
Formosa. The share in the Russian market in 2008:
PVC-S - 3.0%;
PP - 0.4%.
Annual growth sales in Russia :
PVC - 79 % (over the last year) ;
PP - 272 % (over the last 3 years).
Supply by processing technologies:
profile extrusion