All 32 Tests Passed! Taisugar Suffers NT$243 Million Loss Due to Contamination, Announces Legal Action Against Forchung

Taisugar announced today (5th) that in May of this year, crude oil sourced from Zhonglian and supplied by Forchung (1225-TW) was found to contain excessive levels of benzo[a]pyrene, which indirectly led to the unjust withdrawal of Taisugar’s products and damage to its corporate reputation. Conservatively estimating, the financial loss from salad oil alone has reached up to NT$243 million.

Taisugar emphasized that it has always strictly implemented independent quality control measures. Since the beginning of the year, its salad oil products have undergone 32 inspections conducted by regulatory authorities and relevant organizations—all of which resulted in full compliance. The characterization by certain legislators and media outlets labeling its products as 'toxic oil' is factually incorrect. Taisugar expressed regret and helplessness over such misrepresentations and urged the public not to spread unverified information, calling for accurate market communication.

According to Taisugar, the crude oil purchased from Forchung in May was inspected according to contractual specifications. Any batches failing to meet agreed standards were immediately rejected. However, the oil source provided by Forchung from Zhonglian was later discovered to exceed benzo[a]pyrene limits, triggering market concerns and controversy. This external raw material issue has caused unwarranted harm to Taisugar’s products, leading not only to forced product withdrawals but also significantly damaging the brand image and reputation built over many years.

To correct public misunderstanding and protect its rights, Taisugar reiterated its commitment to product quality. From the start of the year, its salad oil has undergone a total of 32 random inspections by various parties, all of which confirmed full compliance with health and safety standards. Taisugar expressed disappointment over repeated references by certain media and legislators describing its products as 'toxic oil,' stating such claims are misleading. It appealed to the public to stop spreading rumors and assist in restoring accurate market information.

Regarding subsequent legal actions and compensation procedures, Taisugar stated that internal assessments of losses have already begun. Preliminary conservative estimates indicate that direct economic losses from salad oil withdrawals and sales halts amount to at least NT$243 million, while intangible losses such as reputational damage are still being calculated. Taisugar will soon consult with legal counsel and accountants, finalize the overall loss assessment, and formally file a lawsuit against Forchung to seek rightful compensation.