Wei Chuan Falls Most Since 2003 After suspending the sale of some edible oil products on concern about the sources of raw materials

November 4, 2013 Leave a comment

Wei Chuan Falls Most Since 2003 After Pulling Oils: Taipei Mover

Wei Chuan Foods Corp. plunged the most in more than 10 years after the Taiwanese food retailer said it suspended the sale of some products amid a government probe into the labeling of edible oils sold to consumers. The stock fell by the maximum 7 percent daily limit to NT$51.90, headed for the biggest loss since March 2003, after the company said yesterday it voluntarily removed some edible-oil products from shelves on concern about the sources of raw materials. The Taipei-based company said it would cooperate with the government investigation, according to the statement it filed with Taiwan’s stock exchange. Taiwan Premier Jiang Yi-huah said Nov. 1 the government will improve systems to prevent substandard foods from reaching the public, the Taipei-based Central News Agency reported. The health ministry discovered cases where oil mixtures were labeled as pure oils through tests on ingredients and additives in cooking oils, the China Post reported Nov. 1. As of yesterday, officials discovered 129 products were in breach of regulations out of 7,665 products tested in spot checks around Taiwan, according to the Ministry of Health and Welfare.

To contact the reporter on this story: Debra Mao in Taipei at dmao5@bloomberg.net

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