The power outage had the greatest impact on the Southern Taiwan, especially Kaohsiung's industrial zones. China Steel said that it is temporarily dispatching its inventory to minimize the impact.
The column of fire shot straight into the sky and lasted for a while. There was a power outage across Taiwan at the beginning of 9 a.m. on the 3rd. At that time, flames could be seen at many flare towers at CPC's Talin Plant and Linyuan Industrial Zone. CPC said that there were no reported industrial safety accidents. The Chinese National Federation of Industry said that due to the large scale of the power outage, backup power systems could not be activated in time. Although the power outage lasted for only one day, it had a great impact on the steel and petrochemical industries, and financial loss was difficult to estimate.
Ho Yu, Executive Director, CNFI: “The furnace needs to be slowly cooled below a level to be turned off. Steel and petrochemical furnaces are the same. The material inside the tubes also has to be dealt with, which impacts the production line and is a financial loss.”
This power outage also had a great impact on CPC's Linyuan Plant in Kaohsiung. Part of the plant is still shut down for maintenance. CPC said that it may take two to three days for the production line to return to normal.
Chang Jui-tsung, CNPC Spokesperson: “We were forced to shut down the furnace without warning. It will take a little longer to return to production. The needs of our midstream and downstream customers are also affected. So in general, it will probably take two or three days for us to get back to normal. ”
Tsao Mihn, President, Formosa Petrochemicals: “Our Mailiao Industrial Zone has its own power plant. Only our other plants in Linyuan and Dashe were affected.”
Power resumed at China Steel Corporation's Siaogang Plant at 4 p.m. on the 3rd, but production capacity was affected.
Wang Hsi-chin, CSC Spokesperson: “The production rhythm will of course suffer a bit. There will be some inventory adjustments and so on, to minimize the impact on shipments.”
CSC said that it was worried that after power was restored, there would be voltage instability. Thus, it was forced to suspend production for a day. In addition, the petrochemical industries, from upstream to downstream manufacturers, were all affected by the power outage. CSC conservatively estimated it may lose hundreds of millions NTD for shutting down production for a day.