跳到主要內容區塊

僑務電子報

:::

Taiwan tire maker Federal to end production at its Zhongli factory

2021-06-17
Focus Taiwan
分享
分享至Facebook 分享至Line 分享至twitter
Image from facebook.com/FederalTires
Image from facebook.com/FederalTires

Taipei, June 16 (CNA) Taoyuan-based Federal Corp. will close one of its two factories in Taiwan, the company said Tuesday, citing the United States' attempt to impose high anti-dumping tariffs on Taiwanese tire vendors.

The decision will lead to mass layoffs at Federal's factory in Zhongli District in Taoyuan, it said at a press conference following a board meeting, without specifying how many people will be affected and when they will be dismissed.

Federal said it may also sell the Zhongli property.

The company attributed the closure of the Zhongli factory to a recent decision to impose an anti-dumping tariff of 84.75 percent on Federal by the U.S. Department of Commerce, which had accused Asian tire suppliers of selling products at unfairly low prices in the U.S.

More than 80 percent of the products manufactured at the Zhongli factory are exported to the U.S., the company said, and it has decided to transfer its American orders to overseas manufacturing partners that are not affected by similarly high tariffs.

The other orders originally handled at the Zhongli facility will be shifted to Federal's factory in Guanyin District in Taoyuan, the company said.

According to Federal, these arrangements will have a sizable impact on the company's revenue in the short run.

Federal said the move followed the DOC's determination to impose dumping duties ranging between 20.04 percent and 101.84 percent on Taiwanese suppliers of car and light truck tires.

The DOC's ruling will not take effect, however, unless the U.S. International Trade Commission upholds it by a vote by July 5, which Federal expects to happen, it appears.

Aside from the potential challenge of anti-dumping duties, Federal has also had to deal with a possible takeover by rival Nankang Rubber Tire Corp., which has reportedly invested heavily in Federal shares in the past few months to gain control of the company.

Taiwanese media has speculated that Federal's move to shut down the Zhongli plant was driven not only by the specter of U.S. anti-dumping duties but also by a desire to counter Nankang's ambitions in some way, without offering specifics.

相關新聞

top