Taiwan’s LCY Chemical shares plunge on Kaohsiung gas blasts

Source: ICIS News

2014/08/07

SINGAPORE (ICIS)--Shares of LCY Chemical have nosedived by about 30% since the fatal explosions on the company’s pipelines in Kaohsiung on 31 July that killed 30 people and injured hundreds of others.

At 10:07 Singapore time (03:07 GMT), LCY Chemical was trading at New Taiwan dollar (NT$) 17.45, down 6.93% from the previous day and slumping by a cumulative 30.2% from the closing rate of NT$25.00 closing rate on 31 July.

The company announced on Wednesday that it has prepared NT$500m for the compensation of victims of the gas explosion.

The Kaohsiung government sought a court order to freeze company’s assets worth NT$1.9bn to cover payments to victims and other damages to the city wrought by the incident.

LCY Chemical’s two polypropylene (PP) plants in Kaohsiung with a combined capacity of 400,000 tonnes/year are currently shut.

The units were shut on 1 August after the gas explosions, which halted delivery of feedstock propylene via pipelines from the Kaohsiung port to the plants.

The bigger 250,000 tonne/year unit was restarted shortly after, but was shut again on 6 August.