Formosa Plastics Questioned for Faking Production Cuts to Inflate Prices; Investigation Summons 6 Witnesses to Clarify
Key facts
- Formosa Plastics Questioned for Faking Production Cuts to Inflate Prices; Investigation Summons 6 Witnesses to Clarify
- Formosa Plastics Group (FPG) is under investigation for allegedly faking production cuts to inflate plastic bag prices due to supply chain disruptions from the Middle East. Prosecutors have summoned witnesses from FPG. FPG denies the allegations.
- Source: PR Times
- Date: April 7, 2026
Direct answer
Formosa Plastics Group (FPG) is under investigation for allegedly faking production cuts to inflate plastic bag prices due to supply chain disruptions from the Middle East. Prosecutors have summoned witnesses from FPG. FPG denies the allegations.
- Citation
- Formosa Plastics Questioned for Faking Production Cuts to Inflate Prices; Investigation Summons 6 Witnesses to Clarify (April 7, 2026), PR Times
- Source
- PR Times
- Date
- April 7, 2026
Formosa Plastics Group (FPG) is under investigation for allegedly faking production cuts to inflate plastic bag prices due to supply chain disruptions from the Middle East. Prosecutors have summoned witnesses from FPG. FPG denies the allegations.
📋 Article Processing Timeline
- 📰 Published: April 7, 2026 at 22:09
- 🔍 Collected: April 7, 2026 at 23:00 (51 min after Published)
- 🤖 AI Analyzed: April 20, 2026 at 13:15 (302h 14m after Collected)
The Shilin District Prosecutor's Office opened a case on the 2nd and directed the Taipei Investigation Office to retrieve relevant production and sales data. Five personnel from the Formosa Group, including section chiefs and managers from Formosa Petrochemical Corporation and section chiefs and managers from Formosa Plastics Corporation, were notified and questioned as witnesses, and were later released.
The Shilin District Prosecutor's Office today again directed the Taipei Investigation Office to summon the previously mentioned five personnel from the Formosa Group, and additionally summoned one more Formosa Group related person for explanation. The Taipei Investigation Office transferred two witnesses to the Shilin District Prosecutor's Office in the evening. After a hearing, the prosecutors released them, and the case is currently an 'other case' (他字案).
Lin Ke-yen, General Manager of Formosa Petrochemical, responded to the Shilin District Prosecutor's Office opening a case by stating, 'What was not done was not done, and we believe justice will clear the company's name.'
Lin Ke-yen pointed out that the company has prepared documents for the Shilin District Prosecutor's Office and that the company absolutely did not engage in deliberate production cuts or hoarding as accused by the legislator. (Editor: Hsiao Po-wen) 1150407
FAQ
Why is Formosa Plastics under scrutiny?
Formosa Plastics is under scrutiny because it allegedly violated the Criminal Code by stockpiling, after reducing supply to downstream companies twice in March and raising plastic bag prices due to raw material supply issues.
What is the status of the investigation by the prosecution and investigation authorities?
The Shilin District Prosecutors' Office is handling the case, directing the Investigation Bureau to obtain production and sales data, and has interviewed several Formosa Plastics Group personnel as witnesses. The case is currently classified as a 'miscellaneous case'.
How has Formosa Plastics responded to the allegations?
The CEO of Formosa Plastics Petrochemical Corporation stated that the company absolutely did not intentionally reduce production or stockpile raw materials, and believes that the judiciary will clear the company's name.