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Ministry of Finance: LCY shutdown little impact on exports
Taiwan News, Staff Writer
2014-08-08 04:05 PM
In the aftermath of the Kaohsiung city gas explosion, suspected complicit party LCY Chemical Corporation (1704) has voluntarily suspended operations for four days starting from Wednesday. Concern has been raised regarding whether this action will impact Taiwan’s export performance. The Ministry of Finance indicated, plastic and rubber products account for less than 2.5% of exports. Even though LCY has suspended operations due to the gas explosion, this action will not impact Taiwan’s exports.

Director of the Ministry of Finance’s Department of Statistics Yeh Maan-tzwu stated, currently, LCY generates revenue of approximately NT$4 billion per month and a total of approximately NT$50 billion annually, accounting for less than 2.5 % of the annual NT$2 trillion annual output value of chemical materials. LCY exports approximately US$50 million per month. In terms of plastics, this accounts for 2.4% of exports.

Yeh pointed out, according to Ministry of Finance export data, plastic goods exported by LCY does not account for a large portion of exports and, thus, will not impact export performance. In addition, after four days of work stoppage, only a few downstream businesses have experienced a shortage of materials. China Petrochemical Development Corporation (1314) announced Thursday the full restoration of production. The Industrial Development Bureau of the Ministry of Economic Affairs stated that other material transportation options exist and judged that the LCY shutdown will not impact exports.

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