Rebutting Price Gouging Claims, Formosa Plastics' 6 Southern Unions: Supply Increased, No Production Cuts
Formosa Plastics' unions strongly denied a lawmaker's allegations of artificial price inflation through production cuts, presenting data that polyethylene supply actually increased by 19.5% in March to support domestic manufacturers amid Middle East tensions.
📋 Article Processing Timeline
- 📰 Published: April 9, 2026 at 18:23
- 🔍 Collected: April 9, 2026 at 19:00 (37 min after Published)
- 🤖 AI Analyzed: April 20, 2026 at 10:36 (255h 35m after Collected)
The 6 major Formosa Plastics unions in the southern region issued a joint statement today severely condemning false accusations and stated, "During this petrochemical crisis, Formosa Plastics has absorbed part of the PE raw material price increase based on social responsibility. Employees across all plants have worked hard to maintain stable production and supply, prioritizing adequate and even increased supply to domestic manufacturers for production. Yet, we are being maliciously smeared by people with ulterior motives."
The 6 major Formosa Plastics unions stated that according to the company's sales records, the supply of polyethylene (PE) raw material for plastic bags to domestic manufacturers in March 2026 was 20,194 tons. This is an increase of 2,573 tons compared to the domestic monthly average sales volume of 17,621.2 tons in January and February of this year; and an increase of 3,297 tons compared to the 2025 monthly average sales performance of 16,897 tons. The PE volume is 19.5% higher than the usual monthly average, which is clearly an increased supply.
The union emphasized that in addition to the increased supply, the increase in selling price was less than the increase in the price of ethylene raw materials supplied by CPC Corporation. The price difference was absorbed by Formosa Plastics itself to mitigate the impact on domestic consumer goods prices, and there is absolutely no situation of "fake production cuts, true price gouging."
Impacted by the situation in the Middle East, a wave of plastic bag shortages has recently been reported in Taiwan. DPP legislator Chung Chia-pin held a press conference on the 1st, accusing the Formosa Plastics Polyolefin Division of using upstream raw material supply disruptions as an excuse to cut supply to downstream manufacturers twice in March and raise prices. He requested the Ministry of Justice Investigation Bureau to obtain Formosa Petrochemical's production and sales data to clarify whether the criminal offense of hoarding was committed. (Editor: Li Shu-hua) 1150409
The 6 major Formosa Plastics unions stated that according to the company's sales records, the supply of polyethylene (PE) raw material for plastic bags to domestic manufacturers in March 2026 was 20,194 tons. This is an increase of 2,573 tons compared to the domestic monthly average sales volume of 17,621.2 tons in January and February of this year; and an increase of 3,297 tons compared to the 2025 monthly average sales performance of 16,897 tons. The PE volume is 19.5% higher than the usual monthly average, which is clearly an increased supply.
The union emphasized that in addition to the increased supply, the increase in selling price was less than the increase in the price of ethylene raw materials supplied by CPC Corporation. The price difference was absorbed by Formosa Plastics itself to mitigate the impact on domestic consumer goods prices, and there is absolutely no situation of "fake production cuts, true price gouging."
Impacted by the situation in the Middle East, a wave of plastic bag shortages has recently been reported in Taiwan. DPP legislator Chung Chia-pin held a press conference on the 1st, accusing the Formosa Plastics Polyolefin Division of using upstream raw material supply disruptions as an excuse to cut supply to downstream manufacturers twice in March and raise prices. He requested the Ministry of Justice Investigation Bureau to obtain Formosa Petrochemical's production and sales data to clarify whether the criminal offense of hoarding was committed. (Editor: Li Shu-hua) 1150409