HUDI and Songyang Group sign agreement

Huadi International Group Co., Ltd. (HUDI), a developer and manufacturer of industrial stainless steel seamless pipes and tubes products in China has announced that Huadi (Songyang) Co., Ltd. (Huadi Songyang), a wholly-owned subsidiary of the Company, has entered into an investment agreement (the Agreement) with Songyang County Economic Development and Investment Group Co., Ltd. (Songyang Group), a Songyang County local government owned enterprise in Zhejiang Province. The Agreement aims to start an advanced “Future Factory” construction project in the Chishou Industrial Zone of southwestern Zhejiang Province, China.

Pursuant to the Agreement, the factory will occupy approximately 50 acres with a total investment of approximately RMB 1bn, including fixed asset investments of over RMB 620M. HUDI plans to finance the project primarily via its working capital.

The Future Factory project, equipped with digital production line facilities, is expected to produce 60,000 tons of stainless steel seamless tubes and special alloy steel products annually, including 300 series, 400 series, 600 series, and 800 series. The project will be constructed in two phases, with the first phase building the factory over approximately 26 acres which will commence from December 1, 2023, to November 30, 2026, and the second phase, building the factory over approximately 24 acres which will be completed within 36 months after the land meets the construction requirements.

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