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Ting Hsin Group to shut down two subsidiaries
SOBBING TO THE BANK: About 260 employees were set to lose their jobs as a tearful ex-chairman revealed plans to cease operations at the two troubled firms
By Amy Su / Staff reporter
Wei Ying-chun wipes away tears at a press conference in Taipei yesterday as he apologizes to the public for Ting Hsin International Group’s repeated failures to ensure food safety.
Photo: Wang Min-wei, Taipei Times
From left to right, Cheng I Food Co general manager He Yu-ren, Wei Ying-chun, former chairman of Ting Hsin Oil, Cheng I Food Corp and Wei Chuan Foods Corp and Ting Hsin Oil and Fat Industrial Co general manager Chad Chen bow at a press conference in Taipei yesterday in apology for the Ting Hsin group’s food safety lapses.
Photo: Wang Min-wei, Taipei Times
Ting Hsin International Group (頂新集團) said yesterday that it would shut down two of its subsidiaries until consumer confidence is restored.
Ting Hsin Oil and Fat Industrial Co (頂新製油實業) and Cheng I Food Co Ltd (正義) are to suspend operations until consumers’ food safety concerns end, Wei Ying-chun (魏應充), former chairman of Ting Hsin Oil, Cheng I and Wei Chuan Foods Corp (味全食品工業), said at a press conference.
It was Wei’s first public appearance since Cheng I was accused on Wednesday last week of adding oil meant for animal feed to products meant for human consumption.
“I really have to apologize to the public for making them uneasy,” said Wei, who left his role as chairman of the three firms on Thursday last week amid the latest cooking oil scandal.
In addition to the temporary shutdowns, the presidents of the two subsidiaries would also step down, Wei said.
The Ting Hsin group will invite food safety experts and consultants to inspect and evaluate the safety issues facing the firms, Wei said, adding that exiting the nation’s cooking oil manufacturing market for good may be an option if the group cannot assure food safety in the future.
Wei said the group promises to take “the best care” of the about 260 employees to be affected by the closures.
Sales for the two companies averaged NT$2 billion to NT$2.2 billion (US$65.7 million to US$72.3 million) a year.
While apologizing to the public, employees, shareholders and the government over the latest scandal, Wei said the group would take full responsibility for consumers’ rights, but did not specify details of any potential compensation plans.
Wei choked with sobs several times during the press conference, reiterating that he would become a lifelong volunteer contributor to the nation’s food safety, hoping consumers would give the food firm one more chance to stand up.
However, even though Wei made pledges to reform the two companies’ management and ensure food safety, Ting Hsin faces rising pressure from consumers, as well as several city and county governments, amid a wide range of product boycotts, as this has been the third food safety scandal involving the group within a year.
Meanwhile, shares of Wei Chuan, a listed subsidiary of the group, might face another selling spree tomorrow.
On Thursday, Wei Chuan, the nation’s second-largest food manufacturer, saw its shares tumble 6.25 percent to close at NT$31.5, shrinking for the second straight trading day amid the scandal.
source: Taipei Times
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