Formosa Petrochemical shuts production line amid Iran war supply shortages
Updated
Updated · The New York Times · May 9
Formosa Petrochemical shuts production line amid Iran war supply shortages
10 articles · Updated · The New York Times · May 9
Taiwan's main plastic maker said one of its two lines was closed after Persian Gulf naphtha cargoes stopped arriving in early March, cutting capacity about 42%.
The disruption has pushed Taiwanese producers to seek alternative feedstocks, including US liquefied petroleum gas, and to source plastic goods from China through existing manufacturing ties.
Formosa imports about two-thirds of its naphtha, mostly from the Middle East, and after using stockpiles to fill March orders, supplies became tighter in April.
With its supply chain shattered by war, can Taiwan pivot this crisis into a green manufacturing revolution?
As a war upends plastic supplies, is this the permanent end of cheap disposable goods for Asia?
A regional war has paralyzed global trade. Which critical supply chain is the next to collapse?