Taiwan-listed Formosa Plastics Group, the world's second-largest producer of polyvinyl chloride by output, said on Friday it has secured approval from the directorate to pump US$30 million into its mainland subsidiary Formosa Polypropylene (Ningbo), sources reported.
An unnamed company financial executive said the capital injection is expected to improve the worsening financial situation of the mainland unit. However, the plan is still subject to approvals from both the Taiwanese and Mainland China authorities.
The Taiwan-listed group said in a statement the capital injection will be conducted by its wholly-owned subsidiary Formosa Plastics Corp Cayman Ltd.
Separately, China Knowledge reported earlier this month Formosa Plastic was planning to adopt the unpaid leave practice among its employees of its textiles and fiber business from next year, as the group was greatly hit by the global financial turmoil and economic recession.
Meanwhile, the group also intended to cut capital expenditure and inventory in the petrochemical business.