Taiwan Shoe Factory, After The Shoe Industry Closes, Records.

13 years of hardship and Taiwanese investment A shoe factory Now, under the influence of the economic situation, it is difficult to follow up the operation. We have to make a decision to close the factory and implement the economic layoffs.

 

Yesterday, footwear industry The circle of friends of the circles must have been cleaned up by this news. The news of Dongguan's booming production and shutdown has aroused great repercussions. The reporter noted that the high cost of human labor in the southeast coast of China is the main reason for the relocation of many manufacturing enterprises to the inland and Southeast Asia.

Yesterday (January 11th), Dongguan Xing ang shoes industry Co., Ltd. (hereinafter referred to as "Dongguan Xing") issued a notice that "Dongguan has been through the wind and rain for 13 years under the efforts of everyone. Now, affected by the economic situation, the company's customer orders have shrunk seriously, and the subsequent operation is difficult to continue. The company has to make a decision to end all the production and implementation of economic layoffs in Dongguan." At the same time, the company also said that since the announcement date, Dongguan entered the end of production before the end of the production, the company will officially end production and business activities in February 10, 2016.

The announcement of Dongguan's prosperity is crazy in Dongguan's footwear industry. In fact, Dongguan Xingan is a subsidiary of Taiwanese capital enterprise Xingyang International Limited (hereinafter referred to as "Xingang international"), and Xingang international is officially listed in Hongkong in 2007. Its stock name is "nine Xing Holdings" (01836, HK), and is currently one of the ten largest footwear manufacturers in the world.

The reporter learned that Dongguan was in the rise of the world. Women's Shoes It is the foundry of NIKE, PRADA (Prada), ROCKPORT (Le Bu) and other world famous brands. Zhong Weijie, director of the International Department of human resources, told reporters that Dongguan's prosperity was closed by all production units, but still retained R & D and administrative departments. The layoffs involved more than 1900 employees, and the capacity to suspend production will be transferred to Southeast Asian countries because of rising labor costs. According to its introduction, in recent two or three years, the labor cost in Dongguan has increased by about 15% annually, and the increase in labor cost has a direct impact on the order volume of the company. Last year, Dongguan's net profit fell sharply, with a drop of more than 50%.

　　 The sharp increase in labor costs leads to layoffs.

Yesterday, the reporter came to the Dongguan Xing ang company located in Daling mountain town, Dongguan. In the employee's living area, there were notices of economic layoffs everywhere. Many of the employees had already stopped working and were preparing for departure. Due to the proper arrangement of staff, there has been no conflict between the layoffs and the demobilization work is proceeding in an orderly manner.

Reporters learned that in January 7th, Dongguan Xing on has issued a notice of scale layoffs. A number of employees confirmed that Dongguan's two layoffs were carried out. Chen, a warehouse manager of the company, told reporters that most of the staff had stopped working. "There are still some products left at the production end. There are several production lines (in operation). But the material storehouse and so on on the upstream of the production line have been shut down, and there are not many workers who are still at work.

Another member of Dongguan Xing ang, Mr. Zhang, told reporters that "now it is no longer at work, and this time it is completely shut down and disbanded." While Zhong Weijie emphasized that Dongguan is closing the production sector, it will still retain R & D, administration and other departments.

It is understood that Dongguan is Xingan international core production base in the world, Xingang international has three big shoe factories in Dongguan: Xingang, xingxiong and Xingpeng. According to public information, Xing international was founded in 1982, and the first division of labor was established in Changan, Dongguan in 1990. As of 2013, there were more than 7 employees in Xing an international, and more than 60 branches in the world. In addition to the world brand of foundry, Xing international has also launched STELLA LUNA and other proprietary brands, and has more than 500 stores on the mainland.

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According to Mr. Chen, there were thousands of employees in the most prosperous period of Dongguan, "probably in 2009."

Zhong Weijie said that the highest peak in Dongguan's Xing ang factory is about 6500 employees, and there are over 10000 employees in the entire industrial park. According to its introduction, there are nearly 3000 employees in Dongguan, and more than 1900 employees are involved in economic layoffs. After the company has stopped production, its capacity will be transferred to Southeast Asian countries.

"The cost is rising too fast, so we have to make a decision to stop production." Zhong Weijie told reporters. He disclosed that the rise in labor costs came mainly from social security, provident fund and pension insurance.

"Excluding social security and provident fund, our labor cost has increased by 10% every year in recent years. Our social security and endowment insurance coverage is almost 100%, while the provident fund adopts the principle of voluntary purchase, but almost all employees want it. So we can figure out that the labor costs rose rapidly in the past two years, or about 15%. Zhong Weijie explained to reporters that he said, "we need to move to more competitive places and transfer to Vietnam, Indonesia and other countries."

　　 Women's shoes such as Prada

The rise in labor costs has a direct impact on the company's orders. Dongguan Xing in the economic layoffs announcement clearly pointed out that "the company's customer orders have shrunk seriously, and the follow-up business is difficult to continue."

But Zhong Weijie only conservatively said that the amount of orders dropped slightly last year due to rising labor costs. According to its disclosure, Dongguan's earnings fell sharply last year, more than half of its decline. "The number of orders dropped slightly, the order price was flat, but net profit fell sharply."

The Dongguan is the international women's shoes department, which is the world's top female casual footwear manufacturer, such as Prada and Lok step. "Compared with men's shoes, the growth of women's shoes has become inactive for two years," Zhong Weijie said.

However, Zhong Weijie has repeatedly stressed that the overall order of Xing international increased last year, which is only a special case of individual factories. He told reporters that Dongguan's customers are mainly mid-range brands in the top brands, and the cost of labor has risen greatly.

Zhong Weijie said that shutting down production is to promote better international development. In Dongguan, many orders were not available because of cost problems. "When we can afford the cost, we can pick up more lists that we couldn't get before."

In Dongguan, the footwear industry under the economic transformation period has been leaving the shoe industry in recent years, in addition to the production of bankruptcy and withdrawal from the low and middle end footwear industry. At the same time, Zhong Weijie, vice president of Dongguan Da Ling Shan Association of Taiwanese businessmen, told reporters that due to the rise in labor costs, Dongguan Daling mountain town last year "Taiwan enterprises" disappeared nearly 30.

According to media reports, Baocheng group's Yuyuan industry located in Dongguan Gao Gao town has a peak of 100 thousand people, and now it is reduced to 30 thousand ~4 million. It is accelerating its transfer to Vietnam and Indonesia. Last March, Dongguan shoe maker "big crocodile" Li Kai also moved to Burma, and Dongguan only kept purchasing research and development department. According to Zhong Weijie, the labor cost in Vietnam is equivalent to 1/2 in China, and the labor cost in Burma is equivalent to that in domestic 1/2 to 1/3, and the labor cost in Indonesia is only 70% of that in China.