LCY Chemical's polypropylene plant temporarily shutdown

12 Aug '14

2 min read

LCY Chemical Corporation’s Dashe plant in Kaohsiung has been temporarily shut down following the July 31 explosions that killed 30 and injured more than 300 other people.

The 400,000 tons per year polypropylene plant would remain shut until a competent authority of the Greater Kaohsiung municipality completes its review and approves its safety improvement plan.

The Kaohsiung City’s Economic Development Bureau is following the precedent set by the Ministry of Economic Affairs when it ordered the closure of petrochemical plants of the Formosa Plastics Group in 2011.

The Bureau said that the pipeline that leaked propylene, which is assumed to have triggered the explosions, was not within the Dashe plant, the pipeline should be considered an extension of the plant and fall under its safety management.

Meanwhile, the management of LCY Chemical has said that it would extend full cooperation to the city government in inspection of its production facility and improving the management of the pipelines that supply raw material to its plants.

LCY Chemical has four plants in Kaohsiung, and only one of the plants is temporarily shutdown.

In a filing to the Taiwan Stock Exchange, the company said it expects to lose NTD 51 million per day in normal polypropylene sales during the temporary shutdown period.

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