Formosa's Vietnam operations damaged during anti-China rioting

By Steve Toloken
News Editor / International

Published: May 14, 2014 8:24 am ET
Updated: May 14, 2014 4:30 pm ET

Related to this story

Topics Materials Asia Materials Suppliers
Companies & Associations

Taiwan’s Formosa Plastics said May 14 that its factory campus in Dong Nai, Vietnam, was damaged as part of widespread rioting connected to maritime boundary and oil drilling disputes between Vietnam and China.

News reports said several thousand Vietnamese residents rioted May 13 at industrial parks in Binh Duong and Dong Nai provinces in the southern part of country, setting fires, damaging gates and windows and in some cases plundering computers and other property. International media reported hundreds of people were arrested, with estimates ranging from 200 to 400 people.

Formosa, which has production for biaxially oriented polypropylene and fibers at the Dong Nai site, said in a statement on its website that a mob of about 300 people broke into its facilities before midnight local time.

The company said it called police at around 10:30 p.m., and the county chief arrived with his team, but they had little impact on stopping the mob from entering the industrial park. Rioters did not leave until about 4 a.m., so damage was still being assessed.

The company gave no reports of deaths or injuries, and a spokesman for the Nhon Trach Industrial Park also told Plastics News there were no reports of people being hurt or killed.

Kaohsiung, Taiwan-based Formosa said it deeply regrets the incident and said the foreign-owned factories being targeted by rioters have no connection to the political dispute over maritime boundaries between China and Vietnam.

It said it also regrets the inability of the Vietnamese government to handle riots and protect foreign investment. The company said it believes foreign investors will have doubts about the security in Vietnam, and will step back on new investments. It urged Taiwan’s government to pressure Vietnam to adopt effective protection measures.

A report from Reuters news agency said that “the brunt [of the damage] appears to have been borne by Taiwanese companies in the zones … as rioters mistook the firms to be Chinese-owned.”

The New York Times quoted media in South Korea stating that 50 Korean companies also were damaged during the rioting. Reuters quoted a spokesman for exporter Li & Fung, which supplies toys, clothing and other consumer products to U.S. retailers, as saying some of its suppliers in Vietnam halted production as a precautionary measure.

The Dong Nai site is a large production base for Formosa.

The company has invested $1 billion there thus far, setting up yarn, polyester fiber and BOPP production, and it announced late last year it was spending another $500 million, including $100 million for a 200,000-metric-ton-per-year polystyrene factory.

Formosa is currently Vietnam’s largest foreign-invested company, according to an English language website of the Communist Party in Dong Nai.

A series of demonstrations escalated in Vietnam in recent days, after China moved an oil drilling rig into waters claimed by both countries. Coast guard vessels from the two nations used water cannons and tried ramming each other’s vessels to disrupt operations.

Press reports said foreign factories were also damaged at Singaporean-owned industrial parks in Vietnam.


Comments

Formosa's Vietnam operations damaged during anti-China rioting

By Steve Toloken
News Editor / International

Published: May 14, 2014 8:24 am ET
Updated: May 14, 2014 4:30 pm ET

Post Your Comments


Back to story


More stories

Image

Ford moving forward in carbon fiber for 'high volume' use

April 17, 2015 10:21 am ET

Ford Motor Co. has signed a deal with a carbon-fiber manufacturer to jointly explore “high-volume” automotive uses for the lightweight...    More

Image

Force majeure declared at six European sites since mid-March

April 17, 2015 1:10 pm ET

At least six European resin makers have declared force majeure on polyethylene, polypropylene and related products since mid-March, leading to higher ...    More

Image

Executives step down from Star Thermoplastics

April 17, 2015 12:56 pm ET

Executives Randall Fortin and Larry Johnson no longer are with materials firm Star Thermoplastics Alloys & Rubbers Inc.    More

Image

Zoltek expanding CF capacity in Europe

April 17, 2015 10:12 am ET

Leading carbon fiber group Zoltek Corp. has signed a strategic agreement with the Hungarian government to expand its operation in northern Hungary,...    More

Image

Hanwha Azdel adds capacity in Lynchburg

April 16, 2015 2:01 pm ET

Composite maker Hanwha Azdel Inc. will add space and a new production line at its Lynchburg, Va., production facility, the company announced April 16.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events