Plastics supply chains were rescued from great difficulties last week after the Chinese government bailed out a producer of one of the key parts to polyester, it has been reported.
Zhejiang Hualian Sunshine Petro-Chemical Co, a major producer of purified terephthalic acid (PTA), part of what is used to create polyester, was bailed out to the tune of RMB1.5 billion (£149 million), after the economic collapse forced it to close recently.
"We had to bail out Hualian Sunshine even though it was privately held," said a Shaoxing municipal government official in a Reuters report.
"Hualian Sunshine is the biggest supplier to our textile industry, which gives us half of our fiscal revenue. The stakes were just too high for us to sit there and let it die," he added.
The news highlights the importance of having a secure supply chain, as well as one which is only partially exposed to the potential collapse of suppliers and customers.
Supply chain management companies can reduce the exposure of many companies to the threat of collapse, saving suppliers and customers alike both time and money at critical points.
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