Fuyao Group
| Company type | Public |
|---|---|
| Industry | Automotive glass, float glass, construction glass |
| Founded | 1987 in Fuqing, China |
| Founder | Cao Dewang |
| Headquarters | Fuqing , China |
Area served | Worldwide |
Key people | Cao Dewang (Founder) |
| Products | Automotive glass, float glass, construction glass |
Number of employees | 5,000 (planned in U.S. by 2016) (2016 (U.S. planned)) |
| Website | www |
Fuyao Glass Industry Group Co., Ltd. (), established in 1987 and based in Fuqing, ranks among the leading global producers of automotive glass. Its clientele encompasses prominent international car manufacturers including Ford, General Motors, Subaru, Tesla, and Volkswagen. In addition to automotive glass, Fuyao manufactures float glass and glass for construction purposes. Originally formed as a joint venture, the company went public on the Shanghai Stock Exchange in 1993 and later on the Hong Kong Stock Exchange in 2015.
History
Founded by Cao Dewang in 1987 within Fuqing, Fujian Province, Fuyao was born from Cao's prior leadership experience at a state-run glass factory. The enterprise initially focused on producing replacement glass for imported vehicles in China. The name "Fuyao" is derived from combining the first character of Fuqing (福 fú) with the term for "shine" (耀 yào).
In 1996, Fuyao entered into a joint venture with Saint-Gobain, where the French company acquired a 51% share for $15.3 million; three years later, Cao bought back this stake for $30 million.
By June 2006, Fuyao had become an original equipment manufacturer (OEM) supplier to General Motors. Later that year, it raised around ¥890 million ($137 million) through a share issuance involving Goldman Sachs. In 2007, Fuyao secured a supply agreement with Bentley. Foreign revenue hit ¥5.17 billion (~$795 million), accounting for nearly 28% of total sales. This positioned Fuyao as the fifth-largest automotive glass producer worldwide with a global market share of 3%, while dominating China's market with 60%.
In 2021, Fuyao and BASF entered a strategic partnership aimed at developing premium sealed automotive glass products and advancing ESG goals by integrating BASF’s technical expertise with Fuyao’s manufacturing strength.
During the first nine months of 2023, Fuyao reported revenues of RMB 23.8 billion, marking a 16.6% increase, alongside a net profit of RMB 4.1 billion, up 5.9%. The company's total assets stood at ¥56.5 billion with liabilities amounting to ¥26.5 billion.
Fuyao Glass America Inc.
In 2014, Fuyao launched its U.S. operations by acquiring the former General Motors Moraine Assembly facility located in Moraine, Ohio. The firm invested $240 million to transform the 1.4 million square-foot plant into an automotive glass manufacturing site, generating approximately 800 jobs. That same year, Fuyao also acquired a float glass factory in Mount Zion, Illinois. By 2016, it committed an additional $131 million to expand aftermarket glass production capacity to 24 production lines, supported by $6.6 million in incentives from JobsOhio. The company aimed to supply glass for between four and five million vehicles annually, capitalizing on shifts within the U.S. auto market following the recession. By October 2016, Fuyao’s U.S. investments had reached $1 billion with plans to increase its workforce to 5,000 employees. By early 2020, Fuyao further expanded its footprint with facilities in both Greenville, South Carolina and Detroit, Michigan.
Worker relations
During its initial two years operating in the U.S., the Moraine Assembly plant encountered difficulties such as safety issues, financial losses, and labor disputes related to unionization efforts. Cultural differences between Chinese management and American employees added complexity to workplace relations.
Soon after commencing operations, OSHA identified serious safety violations including insufficient protective gear, inadequate hazardous materials training, and exposed machinery, resulting in fines totaling approximately $725,000. In response, Fuyao allocated $7 million towards safety improvements and created a bilingual environmental safety team responsible for employee training.
The majority of plant workers were former General Motors employees who sought union representation through the United Auto Workers (UAW). However, Fuyao’s management opposed unionization efforts by engaging anti-union consultants and discouraging organizers. In the 2017 union election, opposition prevailed with a vote count of 886 against 441.
Following the vote, pro-union workers experienced consequences such as reduced hours and dismissals. Three terminated employees filed unfair labor practice charges with the National Labor Relations Board (NLRB); these were settled by Fuyao in 2018 with payments totaling $120,000 covering back wages and interest. Accusations included wrongful termination, harassment, refusal to hire union supporters, and altering employment conditions.
In 2016, John Gauthier (President) and Dave Burrows (Vice President) of Fuyao Glass America were dismissed amid claims related to efficiency improvements. They filed complaints with the Equal Employment Opportunity Commission alleging wrongful termination influenced by discrimination based on national origin. In 2020, Burrows was succeeded by Sunny Yiqun Sun, who is of Chinese nationality.
The 2019 documentary American Factory, which received the Academy Award for Best Documentary Feature, highlighted Fuyao’s cultural clashes, manufacturing challenges, and anti-union position. It was described as "a compelling tragicomedy illustrating the incompatibility between American and Chinese industrial practices."
2024 Federal Search Warrant
On July 26, 2024, federal authorities from Immigration and Customs Enforcement - Homeland Security Investigations (HSI), Internal Revenue Service, Criminal Investigation (IRS-CI), and the Federal Bureau of Investigation (FBI) conducted raids at Fuyao Glass America's facility in Moraine, Ohio, along with 27 additional locations nearby. The operation targeted allegations related to "financial misconduct and labor abuse."
Fuyao Glass America released a statement:
“On July 26, 2024, federal agents and local law enforcement officials visited Fuyao Glass America, Inc. (“FGA”) in connection with an inquiry concerning a contractor and its affiliated entities. Although we understand that FGA is not the focus of this investigation, the Company is committed to full cooperation.
Consequently, the first and second shifts were partially halted. Production activities recommenced during the third shift on the same day, and we anticipate no disruption to manufacturing or delivery schedules.”
In a filing with the Shanghai Stock Exchange, Fuyao Group noted that federal investigators have confirmed FGA is not the primary subject of the probe, which is centered on “a third-party labor service provider.”