Nan Ya Plastics plans to cut 1,000 jobs

25-May-05

Nan Ya Plastics, a part of the Formosa Plastics Group, the biggest industrial group in Taiwan, plans to cut 1,000 employees this year as part of its plan to close down unprofitable operations. In all, the Taiwanese major plans to cut 4000 jobs within the next 3 years. Nan Ya Plastics, which makes plastic used in imitation leather, pipes and window frames, is downsizing its labor-intensive plastic processing business. The ending of the operations of some of it's unprofitable machines will lead to likely cuts in the workforce of the company's plastic product and polyester fiber divisions. Four decades after starting to make plastics, the company has decided to stop expanding this business, which includes more than a dozen plants in China. However it's petrochemical divisions' contribution to sales may rise to 35% this year from 30%, lifting overall revenue by about 10%.