(Yicai Global) June 8 -- Fuyao Glass Industry Group, the Chinese auto glass giant whose Ohio plant featured in the Oscar-winning documentary American Factory, will inject EUR65 million (USD73.5 million) into one of its German units to ease cash flow as the Covid-19 pandemic takes its toll on carmakers and their parts suppliers.

Many European automakers have suspended production since March due to the global spread of the novel coronavirus, Fuyao Glass said on June 5. Its Steinheim am Albuch-based accessory plant has been affected, logging EUR12.2 million (USD13.8 million) in losses in the first quarter, according to the firm’s latest financial report.

The capital injection is a prudent, strategic decision to ease pressure on FYSAM Auto Decorative’s working capital and cut its financial expenditures, the Fuqing, Fujian province-based firm said.

Fuyao Glass is one of the world’s largest producers of glass for cars with a 25 percent market share. Overseas revenue accounted for 49 percent of the company’s total income last year. However, the pandemic has led to a drop in orders from its downstream clients as both production and sales in the auto sector decline.

Overall profit fell 22 percent in the first quarter from a year earlier mainly as a result of the fallout from Covid-19, Fuyao Glass said in the earnings report.

Shares of Fuyao Glass [SHA:600660] closed up 1.59 percent today at CNY21.71 (USD3), a three-month high.

Editor: Kim Taylor