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Updated Friday, September 3, 2010 1:33 pm TWN, CNA

Residents accept FPG compensation offer after fires

TAIPEI, Taiwan -- Residents of Mailiao Township in southern Taiwan's Yunlin County agreed yesterday to sign a Memorandum of Understanding (MOU) with the Formosa Plastics Group (FPG), agreeing to accept a compensation offer of NT$252 million (US$7.81 million) in the first year for damage caused by two recent fires at its petrochemical complex there.

Lin Sung-li, the chief of the township, presented the MOU proposal that had been endorsed by township representatives to FPG officials to be officially signed by FPG headquarters.

Under the terms of the MOU, FPG will subsidize the electricity bills and medical fees for local residents who suffered as a result of the fires at the company's naphtha cracking plant in Mailiao.

Officials at FPG headquarters said it hopes to end the dispute and maintain an amicable partnership with the residents after signing the MOU, which will be witnessed by the Environmental Protection Administration.

Two separate fires that broke out on July 7 and July 25 sent choking black smoke belching into the air for several days, polluting the air and causing panic among people living nearby.

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