Laser toner cartridge remanufacturer AFEX International of Hong Kong has revealed that it is closing down after twenty years in the multimedia and computer accessories industry.

AFEX’s difficulties were first in the news last July when the company announced that it had secured substantial new funding from an investment group managed by Martin Currie Inc. The company said at the time that it was planning to use the funding injection to repay debt and as working capital to strengthen its position in the market.

Then the company announced a new series of cost cutting and debt restructuring measures on 10 March 2011, aimed at reducing operating overheads.

AFEX long maintained a policy of “no new moulds”, claiming that it supplied a true remanufactured, recycled product and not a new, modified copy. The company reportedly faced a long series of legal actions as a result of their “compatible” toner cartridges.

Goujin Resources, AFEX’s parent company, formally known as Jackin Holdings, cited rises in materials and labour costs in Shenzhen and Zhuhai factories among other factors in the company’s demise. These factors led to a loss of HK$197 million for the financial year ending 31 December 2010.