A fire at a plastics factory of Nan Ya Plastics Corp., an affiliate of petrochemical giant Formosa Plastics Group, is forcing the company to move some production from Taiwan to the mainland.

The fire didn't cause injuries but burned down part of the factory and warehouse with estimated loss of NT$150 million (US$4.8 million) per month, according to reports from Taiwanese media. The local government also fined the company NT$1 million (US$ 32,310) for fire-related air pollution.

The factory in Chia-yi produces "pearl paper", a type of plastic paper.

Company officials said some production equipment will be temporarily moved to a sister factory in Nantong on the mainland.

Fire also hit two Formosa petrochemical factories in July. Industry insiders speculate that the fire incidents will result in tighter scrutiny over a Formosa olefin factory that had a fire in July and applied to resume production last week. The situation may cause ethylene prices to continue to rise in the spot market, reports quoted analysts say.