Taiwan's government weighs legal action over allegations against recycler

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 13, 2014 4:14 pm ET
Updated: May 13, 2014 4:16 pm ET

Related to this story

Topics Public Policy, Sustainability, China, United States, Recycling

Taiwanese securities regulators say they plan to file a lawsuit against stock analyst firm Glaucus Research Group California LLC for falsely accusing a publicly listed Taiwanese plastic recycling company of misstating its financial information.

Taiwan’s Financial Supervisory Commission told local media May 5 that the Glaucus accusations against Asia Plastic Recycling Holding Ltd. were false and believes that the research firm  "maliciously spread rumors," which would be a crime under Taiwan’s securities laws.

It is the latest wrinkle involving Glaucus, a short-selling stock trading firm that has targeted other plastics companies. In March, Glaucus had made similar accusations of overstating earnings against China Lumena New Materials, a Hong Kong-listed maker of polyphenylene sulfide resin.

Taiwanese authorities said they examined APR’s records and dispatched a team to spend three days auditing its recycling factories and operations in mainland China, according to media reports. FSC said it was considering filing a criminal complaint.

But Glaucus defended its conclusions in an open letter on its website, saying that it spent hundreds of hours over five months conducting research. It questioned whether Taiwanese authorities had taken enough time to review independent evidence like public tax and land records.

“Regulatory investigations into material misrepresentations by publicly listed companies take years in the United States and Hong Kong, and rightfully so, because regulators must conduct a detailed, lengthy and thorough investigation of the available evidence,” Glaucus said.

Glaucus said that after it published two previous reports involving companies in Hong Kong and the United States, regulators in those jurisdictions took between six months and two years to investigate before filing charges against the companies.

APR strongly denied the allegations. It has factories in Fujian and Jiangsu provinces and recycles ethylene vinyl acetate and polyethylene materials.

Lumena faced some new allegations as well this week.

After Chinese media reported that the company’s chairman and a major shareholder had both disappeared, the company issued a statement May 7 to the Hong Kong stock market denying the allegation.

After the initial Glaucus report in late March, Lumena announced it would delay issuing its 2013 financial results, which had been planned for March 28. As of May 8, the company had not issued its financial report.


Comments

Taiwan's government weighs legal action over allegations against recycler

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 13, 2014 4:14 pm ET
Updated: May 13, 2014 4:16 pm ET

Post Your Comments


Back to story


More stories

California lawmakers give final approval to plastic bag ban

August 30, 2014 6:00 am ET

Under the measure, single-use plastic bags will be barred from California retailers, including grocery stores, convenience stores and drug stores, as ...    More

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Poor plastic coating prompts cable recall

August 29, 2014 2:10 pm ET

Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), has ordered a major recall of 2,485 miles of electrical ...    More

Image

Baxter investing $300 million to expand dialyzers production in Alabama

August 29, 2014 12:53 pm ET

Baxter International, Inc. is expanding its Opelika, Ala. manufacturing location to boost production of dialyzers, a key component of hemodialysis...    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean a...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events