63-year-old Tire Factory Announced Production Stoppage

- Apr 03, 2019-

On March 22, the Chinese Taiwanese company Taifeng Tire Co., Ltd. announced through the stock market that its production plant in the mainland, Taifeng Tire (Jiangxi) Co., Ltd. will stop production for a reason, this 63-year-old rubber The factory will be transformed into a sales logistics center after rectification. Taifeng Tire Finance Director Yang Jianzhong said that the environmental protection regulations in the mainland have become increasingly strict. The Taifeng Jiangxi factory has been required to carry out environmental remediation several times. At the same time, the industry competition has intensified and the business environment has changed rapidly, which has made the Taifeng Jiangxi factory Good operations have become difficult, and it is necessary to make a decision to suspend production and rectification.

He added that the Taifeng Group will carry out the redistribution of production and sales, and the Jiangxi factory will be transformed into a sales logistics center. In the future, Taifeng will maintain a stable supply of its brands by means of OEM and OEM processing.

According to estimates by Taifeng Group, the shutdown of the Jiangxi plant will cause the company to lose approximately 105 million yuan in annual operating income, and the loss will account for about 10% of the group's revenue. In addition, the plant's various equipment assets are deducted. 91.85 million yuan.

Taifeng tires after 65 years of wind and rain

Founded in 1954, Taifeng Tire established a technical partnership with Bridgestone and Sumitomo Rubber in the 1960s and 1980s. The company built its own brand with the help of two world giants. —Federal has developed into one of the top five tire manufacturers in Taiwan. In recent years, its annual revenue has reached 1.23 billion yuan.

"China Rubber" learned that the above-mentioned Jiangxi factory was wholly-owned by Taifeng Tire in 1997. The factory was first established in 1956. It was the Nanchang Rubber Factory that produced rain boots and rubber shoes. After 1960, production began. Car tires, agricultural tires and motorcycle tires, and have their own brand - hero tires, Nanchang Rubber Factory at that time claimed to be the 16th largest tire manufacturer in China.

Taifeng Tire (Jiangxi) is the earliest Taiwanese-owned enterprise in Jiangxi Province. It is also the largest automobile tire manufacturing enterprise in Jiangxi Province, a key foreign-invested industrial enterprise in Nanchang City, and a key foreign exchange earning enterprise in Jiangxi Province. It mainly produces Federer and hero brands. Model size tires.

According to China Rubber, Taifeng Tire invested more than RMB 2 billion in 2017 to build a 11.4 hectare production plant in Taoyuan, Taiwan. It has designed an annual production capacity of 8 million high-quality tires and plans to employ more than 1,000 people.