Topgolf Callaway Brands (MODG: NYSE) said early today that is “working directly’’ with Launch Technologies and local authorities to gather more information about the highly publicized fire that occurred at the Taiwanese ball manufacturing plant this Sept. 22.
In a filing with the Securites and Exchange Commission, the company said a “portion’’ of its value oriented golf balls were manufactured in the facility that was directly impacted by the fire, including the Topgolf range balls. The majority of the golf balls supplied to Callaway Golf by Launch Technologies, according to the statement, were manufactured in a “separate dedicated facility’’ that was not directly impacted by the fire.
However, this separate facility, TopGolf Callaway said, is not currently operational due to both the ongoing investigation and certain shared resources. The company said it is not clear when this separate facility will resume operations.
“Our world class supply chain team is diligently working to assess the situation and mitigate the impact of these events on future supply,’’ the statement said. “The Company believes it will be able to mitigate most, if not all, of the impact to Callaway Golf’s golf ball business by shifting supply to its Chicopee (MA) plant and other suppliers.
“While Topgolf range balls were being manufactured at the Launch Technologies plant where the fire occurred, the Company is confident that the fire will not meaningfully impact Topgolf range ball supply or venue.’’
Topgolf Callaway manufactures golf balls in its owned golf ball manufacturing plant located in Chicopee (the updated Spalding Sports facility) and also uses contract manufacturers in China and Taiwan.
In 2022, according to the statement, approximately 75 percent of the Company’s golf balls (on a unit basis) were manufactured outside of the United States. The Company manufactures all of its urethane golf balls, including urethane golf balls for the professional tour players, in its manufacturing facility located in Chicopee. The Company’s non-urethane golf balls are manufactured predominantly in Asia, but also in its Chicopee plant.
The Company uses various contract manufacturers in Asia for its non-urethane golf balls, including Launch Technologies, which provided a significant portion of the Company’s non-urethane golf ball supply.
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