Federal Tyres plant halts operation

A Jan. 17 fire at a warehouse adjacent to Federal Corp.'s factory in Taoyuan City has resulted in a temporary cessation of production at the plant to allow for inspection and reinforcement, the tire maker said.

There were no casualties from the fire, Federal stressed, and the production facilities were unaffected. The cause of the fire is under investigation by the local fire department and insurance company.

The factory is located in the Chungli (also known as Zhongli) district of Taoyuan City, itself a municipality of more than 2 million located west of Taipei.Federal noted that its IT system is fully operational and the company will strive to ensure smooth delivery of all orders.

Federal anticipates it will be able to resume production at the car and light truck tire plant, which it calls its primary manufacturing site, in early February following the completion of inspections of the facility and recovery projects to ensure employee safety and product quality.

At the same time, Federal is readying its newest factory, in Guanyin, for production to start in February as well.Federal broke ground on that plant, its second in Taiwan, in October 2014. The $300 million plant is rated at 6 million car and light truck tires a year.

Federal is considered the No. 4 tire maker in Taiwan and No. 65 worldwide, with sales of $232 million in 2015. It also operates a plant in Nanchang, China.

In business since 1954, Federal opened its first U.S. sales office just last year, in Torrance, Calif., to support its dealers/distributors in North America and help drive marketing and advertising. The new company, Federal Tire North America L.L.C., is led by Federal veteran Jason Lee.