Hwa Fong Rubber sells Changshu facilities

Taiwanese tyre manufacturer Hwa Fong Rubber has sold the land and facilities of its subsidiary Hwa Fong Rubber (Suzhou), located in Changshu City, Jiangsu Province, China, to Changshu Economic Development Zone Construction Development Co., Ltd. for 276 million yuan, reports Tyrepress China. The company said the deal could help it save management costs, revitalise assets and enrich working capital. The total size of the land sold is 184,222 square meters, while the facilities cover 110,786.45 square meters. Hwa Fong Rubber will carry out relocation work in the future.

Hwa Fong Rubber operates two factories in Changshu, namely Hwa Fong Rubber (Suzhou) and Hwa Fong Rubber (China). The two factories’ addresses are “1 Xingye Road, Yanjiang Industrial Zone, Changshu Economic Development Zone”. Among them, Hwa Fong Rubber (Suzhou) was established in March 2003 and held its opening ceremony of H in June 2008.

At the end of 2013, Hwa Fong (China)’s factory land was requested by the Changshu city government, Hwa Fong (China) company moved to Hwa Fong Rubber (Suzhou) site. In terms of product division, the products produced by Hwa Fong Rubber (China) are mainly “locomotive inner and cover tyre, bicycle inner and cover tyre, agricultural and industrial cover tyre, truck and bus inner tyre”. Hwa Fong Rubber (Suzhou) products include “radiated layer tyre”.

Hwa Fong Rubber’s announcement only indicated that the land sold belonged to Hwa Fong Rubber (Suzhou) and did not disclose whether the transaction would affect Hwa Fong Rubber (China). Tyrepress China tried to ask Hwa Fong Rubber about this issue but did not receive a reply as of the press date.

The 2022 annual report of Hwa Fong Rubber shows that Hwa Fong Rubber (Suzhou) and Hwa Fong Rubber (China) have faced high industry competition recently. Since 2019, China’s environmental protection laws have restricted these two factories, and production restrictions have affected sales.

In addition to its two factories in China, Hwa Fong’s factory in Thailand produces “locomotive inner and cover tyre, bicycle inner and cover tyre, agricultural industry inner and cover tyre”. In addition, the tyre maker has two factories in Taiwan.