Taipei, Aug. 4 (CNA) The four major subsidiaries of Formosa Plastics Group (FPG), one of Taiwan's leading conglomerates, posted a more-than 10 percent increase in sales for July over the previous month on the back of restocking by clients.
In addition, FPG said Friday that the improvement in sales of the four units reflected a recovery in petrochemical product prices due to more expensive international crude oil prices during the month.
The four units are Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp., and Formosa Petrochemical Corp. They are all listed on the Taiwan Stock Exchange.
Last month, sales of the four totaled NT$112.26 billion (US$3.74 billion), up 11.5 percent from June, when their combined sales fell 15.9 percent from May to NT$100.67 billion.
Formosa Plastics Corp., the flagship company of FPG, posted NT$14.54 billion in sales in July, up 17.7 percent, on the back of customers' moves to rebuild their inventories, company president Lin Chien-nan said.
Amid rising buying interest, shipments were up in select petrochemical products such as polyvinyl chloride (PVC), polyethylene (PE) and ethylene vinyl acetate (EVA), according to Lin.
Nan Ya Plastics President Wu Chia-chao said his company benefited from an increase in international crude oil prices, which prompted many buyers to expect petrochemical product prices to go up further, so that they rushed to place orders.
As a result, Nan Ya Plastics witnessed July sales rising 1.3 percent from a month earlier to NT$14.74 billion.
The July figure also grew 4.1 percent from the same period of 2011, when production suspension after a series of fires at the FPG's Mailiao complex impacted Nan Ya Plastics' sales.
For its part, Formosa Petrochemical, an oil refinery operator, recorded NT$62.96 billion in sales for July, up 18.4 percent from June, in reflection of higher international crude oil prices and a production resumption for some of its operations following annual maintenance.
However, Formosa Chemicals suffered a 2.9 percent month-on-month decline in July sales, which stood at about NT$20 billion due to production interruption as a result of annual maintenance in some of its operations.
Despite the fall from June, the July sales beat an earlier estimate on eased concerns over the debt problems in the eurozone and interest rate cuts in China that boosted demand.
(By Chao Haiso-hui and Frances Huang)