Fuling Global Inc. Announces Plan for New Manufacturing Factory in Monterrey, Mexico
To Meet the Surging Demand for Paper Straws and Paper Cups in the U.S. Market
ALLENTOWN, Pa., Dec. 20, 2018 /PRNewswire/ -- Fuling Global Inc. (NASDAQ: FORK) ("Fuling Global" or the "Company"), a specialized producer and distributor of plastic serviceware, with precision manufacturing facilities in both the U.S. and China, today announced its plan to set up a manufacturing factory (the "Mexico Factory") in Monterrey, Mexico. With capital expenditure budget of $2 million, we expect that the first phase of the Mexico Factory will have an annual design capacity of 10,000 tons and will be primarily used for producing paper straws and paper cups serving the U.S. market. The Company expects to launch commercial production at the Mexico Factory by April 2019.
Earlier this month, the Company signed a building lease with Interpuerto Industrial Park in Monterrey, Mexico and a service agreement with a local shelter service company to help with administrative, accounting, compliance, import/export, human resources, etc., at the Mexico Factory. Factory remodeling is expected to start in January 2019, followed by equipment installation and testing and worker recruitment in March.
"The Mexico Factory is our second overseas expansion besides our Allentown, PA factory in the U.S. and marks another important milestone for the Company. The ongoing U.S.- China trade tensions cast uncertainties for our export business to the U.S. market, our largest market segment that accounted for 85% of our revenues during the first half of 2018. Therefore, the Mexico Factory offers certain attractive benefits for us, including zero tariff on trade between the U.S. and Mexico as well as low labor and transportation costs. We have high hopes for the Mexico Factory and view it as a key step for our continuing global expansion," commented Ms. Guilan Jiang, Chairwoman of Fuling Global.
About Fuling Global Inc.
Fuling Global Inc. ("Fuling Global") is a specialized producer and distributor of plastic serviceware, with precision manufacturing facilities in both the U.S. and China. The Company's plastic serviceware products include disposable cutlery, drinking straws, cups, plates and other plastic products and are used by more than one hundred customers primarily from the U.S. and Europe, including Subway, Wendy's, Burger King, Taco Bell, KFC (China only), Walmart, and McKesson. More information about the Company can be found at: http://ir.fulingglobal.com/.
This press release contains information about Fuling Global's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of software and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Fuling Global encourages you to review other factors that may affect its future results in Fuling Global's annual report and in its other filings with the Securities and Exchange Commission.
For more information, please contact:
Tony Tian, CFA
Weitian Group LLC
SOURCE Fuling Global Inc.