Kao Fong Machinery has secured a controlling interest in Taichung-based machine tool manufacturer Daflorn, obtaining three director positions and one supervisor seat on the board. The company, a subsidiary of Hidea Group, invested NT$240 million ($7.7 million) for a 52.44% stake.
Daflorn, once approaching annual revenues of NT$3 billion ($96.8 million), has seen operations deteriorate after government restrictions blocked exports to Russia and Belarus, wiping out a significant portion of its order book.
The shareholders’ meeting approved the public auction of Daflorn’s Central Taiwan Science Park facility through Savills with a minimum bid of NT$595 million ($19.2 million). The property includes approximately 6,600 square meters of land and 13,200 square meters of building space.
Hidea Group Chairman Shen Guorong cited product complementarity as a key driver, with Kao Fong’s vertical lathes and gantry machines meshing with Daflorn’s five-axis machines and CNC equipment. The merger also creates geographic synergy, combining Daflorn’s strength in American and European markets with Kao Fong’s presence in Asia and the Middle East.
Despite the expansion, Kao Fong faces its own challenges with consolidated revenue dropping 17.7% year-on-year to NT$439 million ($14.2 million) in the first four months of 2025.
