Far Eastern New Century fined for problems at China plants

Taiwan-based textile fiber giant Far Eastern New Century has been fined 36.5 million Chinese yuan (US$5.72 million) for multiple violations at affiliated factories in China, but it expects to fully resolve the issues by the end of the year.

In a statement Monday, Far Eastern New Century pledged to pay the fine and other penalties as required, but indicated that the expense will not have any material effect on its finances or business operations and that its operations in China were running normally.

According to Chinese media, law enforcement officials found the violations at textile fiber and cement factories owned by the company or its affiliates in Shanghai, Jiangsu, Jiangxi, Hubei, and Sichuan during inspections conducted in the second quarter.

The violations involved environmental, occupational health, land usage, plant safety, fire safety, and tax issues, leading authorities to fine Far Eastern New Century 36.5 million yuan, ask for back taxes to be paid, and order the company to take corrective measures.

Some 98 percent of the problems identified by Chinese authorities have been taken care of, and the remaining 2 percent will be resolved by the end of the year, the company said.

Source: Focus Taiwan News Channel