NT$4 Billion Chemical Plant in Taiwan Shuts Down, Over 100 Laid Off, Kaohsiung Housing Market Faces Uncertainty

Taiwan’s petrochemical sector was shaken after Chang Chun Group subsidiary Hsin Chang Chemical announced the closure of its Kaohsiung Linyuan plant, laying off more than 100 workers ahead of the Lunar New Year.

Industry sources said Hsin Chang Chemical, with registered capital of about NT$4 billion, is a key domestic producer of phenol and acetone products. The company previously invested around NT$7.7 billion to build a smart factory in Kaohsiung, but production lines have now been idle for over two months, ultimately leading to the shutdown.

The Linyuan facility originally employed more than 180 people, but only about 50 to 60 staff remain. Authorities confirmed that the company proposed retention, reassignment, and early retirement options in January, though these measures failed to prevent the closure.

Local real estate professionals warned that Linyuan’s housing demand largely depends on petrochemical employment. If layoffs spread across the industry, buyer confidence could weaken and transaction volumes may decline. However, they noted that if the situation remains limited to a single company, short-term impacts on property prices may be modest.