Revenues at Formosa subsidiaries slump on ordered closure of petrochem plants, monetary measures in China

05-Jul-11

Four major subsidiaries of Formosa Plastics Group, posted slumps in revenue last month because of the ordered closure of their petrochemical plants and monetary tightening measures in China, as per Taipei Times. Nanya Plastics Corp, the world’s fourth-largest ethylene glycol producer, saw the steepest decline. Nan Ya posted NT$11.7 bln (US$408 mln) in sales last month, a 28.7% month-on-month decline. May 2011 sales were 35.3% lower than May 2010. Formosa Plastics Corp reported NT$13.8 billion in sales — a decline of 17.7% from May 2011, and a drop of 8.2% from 2010. Formosa Chemicals & -Fibre Corp and Formosa Petrochemical Corp saw month-on-month declines of 12.1% and 8.3% respectively. On May 27, the Yunlin County Government made the unprecedented move of ordering Nan Ya to shut down five plants at its 50-hectare Haifeng compound in Mailiao, after two fires broke out on May 12 and May 18.