Backgrounder

Founded in 1963, Fong’s Industries Co., Ltd. (“Fong’s Industries”) is a listed company on the Stock Exchange of Hong Kong. Fong’s Industries operates as a group of companies (table I) with its subsidiaries including FONG’S NATIONAL, THEN, GOLLER, XORELLA, MONFORTS FONG’S, FONG’S STEELS and TYCON ALLOY, who are principally engaged in the manufacture and sale of textile dyeing and finishing machinery, trading of stainless steel supplies and manufacture and sale of stainless steel casting products.

The Fong’s Industries Group

It all began in 1963 by Mr. Fong Sou Lam. From the beginning the company has specialized itself in development, manufacture and distribution of dyeing and finishing machines for the local Hong Kong textile industry. In 1969, the company was officially renamed “Fong’s National Engineering Co., Ltd.”. In response to China’s launch of its economy reform and open door policy in 1979, Fong’s becomes one of the first Hong Kong companies to explore the giant textile dyeing and finishing market in China. It is a key turning point for the Group’s future development.

In 1988, the Group moved into its new Hong Kong headquarters in Tsing Yi, a 9-floor plant and office building with a floor area of approx. 16,000 m2. In 1991, the Group acquired a 120,000-m2-land site in Buji, Shenzhen (CHN) for its new production facilities, and Fong’s National Engineering (Shenzhen) Co., Ltd. were established. In 1995, the plant and the 21-floor building with office and dormitory premises were put in use. Since this time, the Hong Kong office serves as the Group’s headquarters for R & D, finance and sales.

Other important milestones are shown in table II.

Large Portfolio of Textile Machinery

Throughout its 45 years of operation, Fong’s Industries has become an international conglomerate in dyeing and finishing industry through acquisitions and its own development of machinery under such brand names of FONG’S, THEN, GOLLER, XORELLA, MONFONGS and Fong’s Water Technology. With such an impressive portfolio of product brands, Fong’s Industries has committed itself to an international focus with aim of offering one source to its customers, the so-called “one-stop-shop service” with machinery ranging from yarn and fabric conditioning to dyeing and finishing. The Group is now employing some 4,300 colleagues and serving over 5,700 customers around the world with the annual production over 2,500 sets of dyeing and finishing equipments in textile industry.
 
FONG’S NATIONAL

Fong’s National Engineering Co., Ltd. and Fong’s National Engineering (Shenzhen) Co., Ltd. (“Fong’s National”) are the Group’s flagship companies, specialising in design and manufacture of the textile machinery serving more than 10 sectors in the industry:

- Yarn dyeing: dyeing machines for loose fibres, hanks, yarn packages and warp beams;
- Piece dyeing: high temperature and atmospheric rope dyeing machinery and inflating dyeing machines as well as beam dyeing machines;
- Dryers: (fabric) pre-shrinkage (dryer) and package rapid dryers and radio frequency dryers for package, hank yarn and loose fibres; and
- Finishing: open width stretcher combined compactors.

The manufacturing plant in Buji, Shenzhen, is equipped with advanced facilities, including machines for laser and plasma cutting, computerised nibbling, forming, and X-ray weld seam inspection facility. Fong’s National is the market leader for dyeing and finishing equipment in China and has a growing market share in other regions of the world. Fong’s National’s success relies on constant innovation in product design and technology, and it is in line with the company’s motto: “A Name You Can Trust For Your Dyehouse Needs.”

Fong’s National also provides its customers with comprehensive services. From pre-sales consultancy to after-sales services and maintenance, such as workshop planning, installation consultancy, processing test run and technical training, Fong’s National offers its customers comprehensive services of the highest level.

MONFORTS FONG’S

In 1999, the Group joined forces with the leading German textile machinery manufacturer, A. Monforts Textilmaschinen GmbH & Co. KG, Monchengladbach to establish Monforts Fong’s Textile Machinery Co., Ltd. Through its subsidiary Monforts Fong’s Textile Machinery (Shenzhen) Co., Ltd., the company is specializing in assembling, manufacture and sale of continuous dyeing ranges, stenters and dryers exclusively for the Mainland, China market.

Drawn on the German partner’s advanced technology and engineering skills and taking advantages of Fong’s extensive distribution network and manufacturing know-how in China, the joint venture has experienced continuous business growth since its inception, and its average monthly production capacity now stands at approximately 20 sets of equipment.

Monforts Fong’s has received national recognition from the textile manufacturers in China for its advanced technology, competitive price and speedy technical service. Never being complacent with the great success in the last decade, Monforts Fong’s market coverage since the last quarter of 2008 extends to Southeast Asia countries; namely, Vietnam, Burma, Laos, Cambodia, Thailand, Malaysia, Singapore, the Philippines; and peripheral zones such as Mongolia, North and South Korea, Nepal. It is the goal to provide to customers with the highest quality products and the most comprehensive customer service.

XORELLA

In 2002, the Group formed Xorella Hong Kong Ltd. to acquire Xorella AG, Wettingen, Switzerland. Founded in 1971, this Swiss company is specialised in design and manufacture of steam setting and conditioning equipment for yarns and fabrics. The move marked the Group’s business stepping further toward diversification and also underlined the Group’s strategy for providing a “one-stop-shop service” to the textile industry. At Xorella AG, the employees are handling the sales and product development activities of yarn conditioning machinery in Switzerland.

Due to Xorella AG’s advanced technology and the Group’s extensive customer network and sophisticated production facilities in China, the patented indirect steaming system from the recognised market leader is now applied in more than 50 countries worldwide.

THEN

In August 2004, the Fong’s Group acquired the fixed assets, production facilities, real property and intellectual property rights of the former Then Maschinen- und Apparatebau GmbH and Scholl-Then GmbH and transferred them into the newly formed THEN Maschinen GmbH.
 
THEN Maschinen GmbH is the patent owner of the “THEN-AIRFLOW®” technology, an economically and ecologically dyeing machine operating system according to the patented aerodynamic principle. The “THEN-AIRFLOW®” series of machinery not only has the lowest water consumption, but also the fastest dyeing time. The name of “THEN” now stands for advanced dyeing technology for a quick, economic and environment-friendly operation in piece dyeing and has become “the First Choice for the Dye-houses”. 

THEN Maschinen GmbH will continue to invest in R & D and to manufacture their well-accepted innovative dyeing machinery, control systems and dye house networks for the world markets in Schwäbisch Hall, Germany. The integration into the Fong’s Group offers financial security through a strong investor and opens