Federal Corporation

Climate Impact & Sustainability Data (2022)

Total Carbon Emissions:10839.697 tCO2e (2021); 13113.304 tCO2e (2022)

Water Consumption:98268 tons (2021); 125045 tons (2022)

Waste Generated:858.51 tons (2021); 995.76 tons (2022)

Reduced carbon emissions by 1% in 2023 (target)
Recycles and reuses 100% of process cooling water and about 50% of reclaimed water from the pure water system.

Employee training: Total 162 people participating, with 1,358 hours.
Various employee benefits: production performance bonus, innovation and improvement bonus, year-end bonus, labor and health insurance, group insurance, international business travel insurance, professional medical care room, regular free health checkup, free dormitory, free catering services, subsidies for marriage, funeral, hospitalization, birthday, scholarships for employees and their children, a bonus system.

Established a corporate governance officer to protect shareholders’ rights and strengthen the functions of the board of directors.
Established the ―Procedures for Ethical Management and Guidelines‖ and ―Procedures for Insider Trading Prevention and Handling Material Inside Information‖.

Short-term Goals:

COVID-19 pandemic impacts on global economic demand, causing rising prices of international crude oil and raw materials, and global inflation.
U.S. Department of Commerce (DOC) imposed anti-dumping duties, leading to a surge in production costs and impacting sales and profits (sales to the U.S. accounted for more than 80% of operating income).
Significant losses in 2022 due to a pause in production and severance pay to employees.

Temporary pause in production line in Guanyin factory (February 10, 2023) for review and further discussions on supply chain positioning and domestic and overseas marketing layout.
Continue selling and marketing normally, delivering stock, outsourcing tires, selling parallel-imported tires, and starting overseas OEM projects (Vietnam OEM contract signed February 24, 2023).
Organizational restructuring and manpower reduction.
Focus on expenditure austerity, cost reduction, and cash flow decrease.
Continue bidding for lands (land readjustment cases approved).

Suppliers who have passed ISO14001 environmental certification are reviewed and adopted first. Regular safety and health management of suppliers (trainings for labor safety, protocol of safe work, implementation of toolbox talks).

Energy-saving and eco-friendly tires, winter tires for commercial vehicles, asymmetric tires, new patterns for high-performance sports car tires