Fuyao Glass America continued to be profitable in 2019, but the company’s global owner experienced economic headwinds last year and sees serious challenges in 2020.
“In 2020, the economic prospect remains grim, and risks and uncertainties will continue to loom both at home and abroad and the automobile sector is still likely to be confronted with the risk of negative growth,” Fuyao Global Chairman Cho Tak Wong said in the company’s 2019 annual report.
“The outbreak of novel coronavirus pneumonia will intensify its impact on the economy and industry, Fuyao will face greater challenges ahead. But we will stay true to our commitment and make unremitting efforts to improve ourselves with greater courage and responsibility to fight the tough battle in 2020,” Cho added.
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Fuyao Global founded an automotive glass manufacturing complex in Moraine in 2014, an operation that in normal times employs about 2,300 workers. But the plant has been mostly shut down since late March, along with most of the American auto industry, which the Moraine plant supplies.
According to the report, Fuyao Glass America saw a net profit of just over $9.7 million in 2019, down from a net profit of $24.5 million that FGA recorded in 2018.
The report noted that in 2019: “global economic growth weakened and the investment scale declined, as trade tensions, financial instability and increased geopolitical uncertainty resulted in the slowdown of global economic growth; China’s economy has been weathering increasing economic downward pressure, and particularly, the manufacturing industry was most directly affected by trade frictions, the automobile consumption has obviously grown weak.”