Fuyao Class not targeted in US raid; investigation focuses on third-party labor provider: company

Fuyao Glass announced on Sunday that the raid on its US subsidiary, Fuyao Glass America, by the US federal and local law enforcement agencies on Friday, was part of an investigation into a third-party labor service provider, and that Fuyao Glass America was not the target of the probe, according to US authorities.

The response was issued in the wake of public attention focusing on a series of raids on Friday by multiple US law enforcement agencies at Fuyao Glass's facilities in Ohio and other locations.

The US authorities had completed their on-site work and left on Friday afternoon local time. During the search, some production activities were briefly halted, but goods transportation and delivery were not affected, Fuyao said.

According to the company, operations resumed on Friday evening, and the plant is now fully operational. Fuyao Glass assured stakeholders that the incident has not disrupted its production or supply chain and that the company remains committed to cooperating with the US investigation.

On Friday, multiple US law enforcement agencies led by the DHS, executed search warrants at 28 locations in Ohio, including Fuyao Glass's plant in Dayton, Ohio, local media Dayton Daily News reported.

The investigation was part of an "ongoing criminal investigation" looking into allegations of "financial crimes and labor exploitation, and potential human smuggling violations", WDTN, an NBC-affiliated television station reported on Friday.

Earlier media reports indicate that a DHS agent informed Fuyao workers at the Ohio facility that the company was not the primary target of the investigation and that there were no plans to make any arrests on the day of the raid.

Fuyao Glass, the world's largest automotive glass supplier, derives about 90 percent of its revenue from automotive glass and holds a global market share exceeding 30 percent. 

In China, its market share surpasses 65 percent. The company has approximately 45 percent of its revenue coming from international markets, the Shanghai-based Jiemian News reported.

The Fuyao Ohio plant, the world's largest auto glass production site, opened in 2016 with an investment of more than $700 million, aiming to serve the US automotive market. 

Fuyao Glass has continued to expand its US presence in recent years, with investments totaling $350 million in new production lines in 2022, according to Jiemian News.