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FPG looking to pay year-end bonus of 6 months' wages

2018/11/10 16:58:39

Taipei, Nov. 10 (CNA) Formosa Plastics Group (FPG) is likely to pay its employees six months' salary in year-end bonus, the conglomerate's president Wang Wen-yuan (王文淵) said Saturday.

Noting that FPG's bottom line has been good in the first three quarters of the year, Wang said the group can be expected to maintain its policy of paying bonuses equivalent to six months' salary during the Lunar New Year.

In addition, FPG will give red envelopes, or lucky money, to its employees to express gratitude for their hard work, which has helped make the group profitable, he said.

"The amount in the red envelopes has not yet been decided," Wang said at FPG's sports day.

The four major companies that make up FPG -- Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp. -- posted a combined net profit of NT$206.8 billion (US$6.71 billion) in the first nine months of the year, up 22.9 percent from a year earlier, largely on rising product prices due to higher international crude oil prices.

Among the four entities, Formosa Petrochemical, the second biggest company by market capitalization on the local main board, posted the highest net profit of NT$64.2 billion, a 12.8 percent increase from a year earlier, and an earnings per share of NT$6.74.

Wang said, however, that despite FPG's strong net profit in the first nine months of the year, he is cautious about the fourth quarter and beyond because of the trade tensions between the United States and China, the world's two biggest economies.

"With no signs that either side will back down or that they will resolve the trade dispute anytime soon, we have to prepare ourselves for upcoming challenges posed by the trade issues," he said.

While FPG plants in China sell most of their products there, some are shipped to the U.S. market, Wang said.

He said FPG will keep a close eye on an expected meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the G-20 summit later this month.

In two rounds of tariffs this year, the U.S. imposed a 25 percent tariff on US$50 billion worth of Chinese goods and a 10 percent tariff on US$200 billion worth products. Trump is seen likely to impose a third round of tariffs on an additional US$267 billion worth of Chinese imports. China's exports to the U.S. totaled about US$500 billion last year.

(By Wei Shu and Frances Huang)