During the investigation (factory) had a production stoppage, but has since resumed and does not affect normal supply. An informant stated that many posts online claim that Fuyao Glass America was investigated in 27 locations, but in reality, there were a total of 28 places investigated in Ohio, and Fuyao was only one of them. In 2022, Fuyao Glass increased its investment in Fuyao Glass America by $0.65 billion.
On July 28th, Cailian News reported (reporter: Wang Bin) that Fuyao Glass (600660.SH) issued a statement regarding the incident where Fuyao Glass America, a subsidiary of Fuyao Glass, was raided by the Department of Homeland Security. Prior to the incident, company insiders had responded to Cailian News reporters, stating that during the investigation (factory) had a production stoppage, but has since resumed and does not affect normal supply.
Fuyao Glass announced this afternoon that its wholly-owned subsidiary, Fuyao Glass America, located in Moraine, Ohio, was visited by US federal government agencies and local law enforcement officials (hereinafter referred to as "US government agencies") around 10 a.m. local time on July 26, 2024. The visit was to support the investigation of a third-party labor service company (hereinafter referred to as "the investigation") currently underway by US government agencies. According to the US government agencies, Fuyao Glass America is not the target of the investigation. US government agencies completed their work on the scene around 5 p.m. that day and left.
The announcement stated that Fuyao Glass America is primarily assisting US government agencies with the investigation of a third-party labor service company (hereinafter referred to as "the investigation"). According to the US government agencies, Fuyao Glass America is not the target of the investigation. On the day of the search, part of Fuyao Glass America's production operations were suspended, but the transportation and delivery of goods were not affected. After the search was completed, normal operations resumed that day, and all production and business are currently operating normally.
During the search mentioned above, part of the day's production operations at Fuyao Glass America were temporarily suspended, but the transportation and delivery of goods were not affected. After the search was completed, normal operations resumed that day, and all production and business are currently operating normally.
An informant told Cailian News reporters that many posts online claim that Fuyao Glass America was investigated in 27 locations, but in reality, there were a total of 28 places investigated in Ohio, and Fuyao was only one of them.
According to the data, Fuyao Glass America focuses on the research, development, production, and sales of automotive glass. According to the Fuyao Glass 2023 financial report, as of the end of last year, Fuyao Glass America's (including the 100% partially controlled Fuyao Glass Illinois and Fuyao Glass America C assets) total assets were approximately RMB 7.431 billion yuan, operating income in 2023 was about RMB 5.57 billion yuan, and net profit was about RMB 0.494 billion yuan in 2023.
In the 2023 annual report, Fuyao Glass pointed out the risks, particularly the fact that about half of the company's revenue comes from overseas business, which could be impacted by economic, political, policy, legal changes, wars, and other factors. However, Fuyao Glass Chairman Cao Dewang expressed confidence in the company's future development prospects because the company's industry status and competitive advantages continue to improve, and its management processes are continually being upgraded.
It is worth mentioning that Fuyao Glass America was once considered a model of Sino-US manufacturing cooperation. In 2014, Fuyao Group acquired an old General Motors plant in Moraine, Ohio, and established the first US factory. It is one of the world's largest single automotive glass factories, covering an area of 1.8 million square meters and became profitable one year after it began operation in 2015.
In August 2019, the documentary "American Factory" was released, which focused on Fuyao Glass Dayton factory and was produced by former US President Obama and Netflix. The film won the Best Documentary Feature award at the 92nd Academy Awards.
In 2022, Fuyao Glass increased its investment in Fuyao Glass America by $0.65 billion. $0.3 billion was used to construct the coating automotive glass production line, tempered laminated glass production line and other projects, while the remaining $0.35 billion was used by Fuyao Glass America for additional investment in its wholly-owned subsidiary, Fuyao Glass Illinois, which was used to construct a float glass production line, four photovoltaic back glass deep processing production lines, workshops and supporting infrastructure projects.
At that time, Fuyao Glass stated that the increase in investment in its wholly-owned subsidiary, Fuyao Glass America, and Fuyao Glass Illinois was to expand production to meet customer demands for high value-added automotive glass products, photovoltaic back glass, and the demand for float glass raw materials for further processing, and to further promote high-quality development of the US business.