It is difficult to predict when Huafu Technology's Kunshan subsidiary will resume work

On March 31, the Kunshan Municipal Government of Jiangsu Province announced that at around 7:12 am that day, an explosion occurred at Handing Precision Metal Co., Ltd. in Kunshan Comprehensive Bonded Zone, resulting in 7 deaths, 1 serious injury, and 4 minor injuries.

     It is reported that Handing Precision is the Kunshan branch of Taiwan-funded enterprise Huafu Technology. It was established in February 2004 with a registered capital of US$20.8 million.

      Recently, in response to the accident, Huafu Technology announced that due to the fire and the suspension of operations in cooperation with the government's safety rectification operations, Hanting's consolidated revenue in May and June is estimated to decrease by 57% and 54%, respectively. If part of the production capacity is transferred, it is estimated that this year's production capacity will be reduced by approximately NT$1.55 billion (the same below) compared to last year.

       Yesterday, Huafu Technology held an information briefing, at which it was emphasized that due to the explosion and fire on the northwest side of the CNC workshop at Kunshan Handing Precision Metal Company on the morning of March 31, which caused casualties among employees, the Kunshan Municipal Government plans to conduct a large-scale safety inspection and rectification campaign across the entire region starting in May in order to strengthen and implement production safety and fire safety.

Among them, Kunshan Handing's magnesium, aluminum, zinc and titanium machining processes will suspend production activities before the investigation and rectification are completed, and the resumption time will depend on the progress of the government's work.

        Huafu said that since the company has no way of determining the time limit for resumption of work approved by the local government, it will flexibly dispatch production capacity to enable the Ma'anshan plant to accelerate production support before full resumption of work, hoping to minimize the impact on the company's business and customers.