Canadian Plastics

Formosa Plastics to pay $50 million to settle pellet discharge lawsuit

The material supplier agreed to the payment to settle allegations that its petrochemical plant in Point Comfort, Texas spilled tons of pellets into waterways near the Gulf of Mexico.

October 16, 2019   Canadian Plastics

Formosa Plastics Corp. has agreed to pay US$50 million to settle allegations that its petrochemical plant in Point Comfort, Texas spilled tons of pellets into waterways near the Gulf of Mexico.

Located about 120 miles southwest of Houston, the Point Comfort plant produces resins for plastics such as HDPE, LDPE, PP, and PVC.

Under the settlement, Formosa is paying for pollution cleanup and promises no future discharges of plastic pellets or other plastic materials from the plant.

Texas RioGrande Legal Aid sued Formosa in July 2017 on behalf of the San Antonio Bay Estuarine Waterkeeper, an environmental group. The suit alleged Formosa had polluted waterways near its Point Comfort plant for nearly three decades.

“The conditions agreed to in this settlement demonstrate Formosa’s commitment to manufacturing our products in a safe and environmentally friendly manner,” Formosa Plastics Corp. USA executive vice president Ken Mounger said in an Oct. 15 statement. “We will continue to partner with local communities and stakeholders to ensure that FPC USA environmental programs are at the top of our industry.”

The statement also said that the $50 million would go to the newly formed Matagorda Bay Mitigation Trust to promote environmental sustainability in the region.

Headquartered in Taiwan, Formosa produces polyvinyl chloride resins and other intermediate plastic products.


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