Analyzing Formosa Plastics
tschuetzThe Formosa Plastics Global Archive supports collaborative analysis, organized around shared research questions, for example:
The Formosa Plastics Global Archive supports collaborative analysis, organized around shared research questions, for example:
The U.S. subsidiary of Formosa Plastics Corp (1301.TW) has agreed to pay $7.5 million and to cooperate with plaintiffs to settle an antitrust lawsuit alleging the company and others curbed the supply of a widely used chemical in a scheme to inflate prices. (Scarcella, August 16, 2023)
“When the government of Taiwan planned for the future of Taiwan several decades ago, it focused exclusively on industrially stimulating the economy. It has been promoting that kind of economic growth and development since the 1970s, making it appear as if industrial growth is the only factor to consider with regard to the country’s future. In the name of progress and economic revitalization, state-led industrialization walks hand in hand with private corporations. Together, they compete for the world’s largest petrochemical plants. The industrial development policy of Taiwan is one of the factors in the loss of Taiwan’s coastal wetlands, the subsiding of land from industrial water withdrawal and sand mining, and the increase of toxic air emissions, contaminated water, and toxic buildup of metals in soils (Wu and Wu 171–2). This “macroeconomy” policy ruins bioregions.” (Chang, 2023, p. 171)”
The Taiwanese Formosa Plastics Corporation (FPC) is the tenth largest petrochemical company in the world. Focused primarily on the production of polyvinyl chloride (PCV) resins (Wu 2022), the FPC is the main subsidiary of the larger Formosa Plastics Group (FPG), a vertically integrated, global conglomerate that owns businesses in biotechnology, electronics, and logistics, among others (Wikipedia 2020). Formosa’s four main subsidiaries (all petrochemical companies) account for an estimated 10 percent of Taiwan’s gross domestic product (Wu 2022). The most important sites for production are Formosa plants in Yunlin County (Central Taiwan), Point Comfort (Texas), and Baton Rouge (Louisiana). Enabled by the shale gas boom discussed above, plants at all three sites are subject to ongoing expansions, including a proposed $200 million plant in Texas, and the $12 billion industrial complex in Louisiana. Formosa also operates a steel plant in Central Vietnam that is the focal point of much local and transnational activism.
Formosa’s current economic and cultural standing is deeply connected to Taiwan's history of industrialization. The Formosa Plastics Corporation and Group were founded by Wang Yung-ching and his brother Wang Yung-Tsai in Kaohsiung in 1954. Born under Japanese occupation, Wang Yung-ching made a living selling and delivering rice as a young boy, and later operated his own rice shop as a teenager. Eventually, Wang transitioned into the lumber business and benefited from market liberalization following the end of Japanese colonial rule (Lin 2016). However, since US military forces destroyed one of his mills during WWII, Wang received $800,000 from USAID, which he used as capital to found Formosa Plastics (Shah 2012). Until his death in 2008, Wang became one of Taiwan’s richest persons and remains widely known as the “god of management” (Huang 2008).
In Taiwan, conglomerates like the Formosa Plastics Group are called guanxiqiye (“related enterprises''), a colloquial term for tightly-controlled, family-owned businesses. According to anthropologist Ichiro Numazaki (1993), the expression emerged from 1970s business discourse and quickly became a self-identifying status symbol for many corporations (Numazaki 1993, 485). Numazaki argues that Chinese trading tradition (emphasizing partnerships) and Taiwan’s vexed relationship to Japan and China contributed to the rise of family-owned enterprises. Daughter Cher Wang has co-founded important businesses outside of the petrochemical sector, including consumer electronics company HTC. However, the Formosa family has also experienced a series of conflicts: in 1996, Wang Yung-Ching expelled his son Winston for extramarital affairs, who later became involved in ongoing efforts to disclose his father’s substantial tax evasion (Offshore Alert 2018). Today, the Formosa Group is in the process of transitioning key positions away from family members (Taipei Times 2021).
Formosa’s operations have further been shaped by Taiwanese politics and cross-strait relations with China. Considered a moderate liberalizer, Wang held close ties to Taiwan’s democratic party, but also continued to push for expansion in the Chinese mainland during his lifetime, often leading to conflicts between Taiwanese and Chinese administrations (Lin 2016, 81). In 1973, Wang’s plans to build a large petrochemical complex in Taiwan were halted by the authoritarian Kuomintang (KMT) government, but following the lifting of martial law in the mid-1980s, Formosa made a second attempt, suggesting to build the complex in the scenic Yilan County (Ho 2014). Rising concerns over petrochemical development and pollution, however, led to mass protests by local residents and fisher people, creating a landmark moment for Taiwan's larger democracy movement (Ho 2014). In face of this opposition, Wang arranged secret trips to mainland China, and later announced that the plant would be built on the island of Haitsang in Xiamen province. Yet, economic sanctions between China and Taiwan, combined with pressure by the nationalist KMT government, eventually led to construction of the vast petrochemical complex in the rural and impoverished Yunlin County in Central Taiwan (Lin 2016, 82).
"What does the lack in prominence of environmental coverage in German TV tell us about the general state of environmental journalism in Germany? It is almost impossible to draw con- clusions based on hard facts and numbers.There is no national organization of professionals in the media dealing with this topic like the Society of Environmental Journalists in the USA, for instance.That means there are also no statistics about how many editors, reporters, or producers would count themselves as environmental journalists; nobody is keeping track. Communications scholars, when asked about the number of environmental journalists in Germany, reply with: “That’s something I would also like to know; tell me if you find out.”There is no formal educa- tion, and only a few training opportunities are offered for established writers and editors who want to specialize in the field. In recent years, some well-qualified and experienced reporters on newspapers with influential voices have departed (or been made to depart) the publishing houses or even journalism per se, leaving a noticeable gap." (Schrader 2020)
"Summarizing, environmental journalism in Germany appears to be in a transition phase. Many traditional media and press outlets are struggling to keep their business model or find a new one. And reporting on air quality, biodiversity, or the climate beyond their often-superficial implications for national politics is not high on the list of priorities. Much of the work might be shifting to online publishing in new contexts and organizations, but those are still forming and far from settled."
It was reported, that one worker at the industrial park was suffering from eye irritation, following the release of hydrogen chloride. He had to be treated at the outpatient clinic of the industrial parks' Occupational Health Center, and could go home afterwards. There is no further information of long-term effects the worker might have suffered from to be found on the internet, according to my search. However, eye irritation induced by chemical exposure can lead to effects such as increased eye pressure and a following reduction of vision, as well as chronic pain.
I am wondering, how this worker got hurt, as this was not reported in the article. Usually, workers need to wear proper protective equipment in areas in which one risks exosure to airborne chemicals that can cause corrosion, including protective goggles. As can be read in a follow-up article (https://www.fnp.de/frankfurt/frankfurt-gas-trat-aus-weil-ein-rohrleitun…), a pipeline malfunction had been found as the reason for the release, possibly in an area where no protective equipment is required? I can only speculate on this, but the worker seems not have been informed about the incident.
Missing information seems to be a common theme in this case, in the aforementioned article it is also reported that the smartphone application that is supposed to warn residents about such incidents, released a warning only 50 minutes after the sirenes had been going off. Also it is written in the article, that after the incident the citizen telephone line was busy, such that some callers could not get the information they required, and that many residents are not familiar with the meaning of the different signals released by the warning sirene. In case this or similar incidents happen in the future, they therefore pose a grave health risk to the surrounding population.
In this setting, several stakeholders are to be identified:
- Citizens living in Hoechst and surrounding areas and workers at the industrial park: Necessitate information to ensure their safety.
- Infraserv and companies at industrial park: Bad press is bad for image of industrial park, whcih might lead to political or financial consequences; Centralization of information flow on website "ihr-nachbar.de" to create narrative?
- Fire department Frankfurt: Responsibilities as first responders to incidents include information release to public and combat incident.
- Public media/ press: Information of the population as well as economic pressure to release notions that are of interest to public (to gain clicks/sell magazines and newspapers); Need to report correctly to gain/keep trust of potential information consumers.
- Local politicians: Need to take political measures to protect citizens to gain/keep trust of potential voters; Possibly also require good relationship with Infraserv and companies, as many high-profile companies are located at industrail park bringing in tax money.