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    Wei Xu'S Shoe Industry Is Closed. It Has Nothing To Do With The Financial Crisis.

    2008/11/12 0:00:00 98

    The collapse of Hejun, one of China's largest toy factories, is regarded as the first example of a large economic entity that has been blown down by the financial crisis.

    A wave is not yet smooth.

    In November 5th, when reporters arrived in Dongguan from Shunde, another large manufacturing enterprise, Wei Xu, with more than 3000 employees.

    footwear industry

    Suddenly, it was called "handsome second" by the media.

    The collapse of Hejun has been proved to be mainly due to speculation. What is the cause of Wei Xu's death?

    In November 6th, the reporter went straight to Wei Xu's place, Changan Town, Dongguan.

      

    Used to be a typical Dongguan model.

    Wei Xu

    footwear industry

    Zhuang Jiaying, the father of the current Taiwanese owner, was founded in Changan town in 1989. It was the earliest one in Dongguan.

    shoes

    One of the factories was the largest town in Changan before the collapse.

    A shoe factory

    It has been called the "Dongguan model".

    Mainly do

    Women's Shoes

    Without its own brand, it is mainly engaged in OEM trade, and its products are exported to the United States and Europe through a trading company in Taiwan.

    The top executives are four Taiwanese.

    In the morning of November 5th, there were still some migrant workers who were owed wages in the west west labor service station. They knew from Hunan, Hubei, Sichuan, Guangxi, Guizhou, Henan and Shaanxi all over the country.

    Xiao Wang from Henan said that their labor contracts were not in their own hands, they were all pressed by the factory.

    "We work at least 12 hours a day, basically without overtime pay, usually between 1000-1500 yuan per month.

    The factory manages to eat and lodge, but the living conditions are very poor.

    Before the boss fled, most people were in arrears for more than two months.

      

    No shortage of orders before closing down

    Contrary to the reporter's imagination, Wei Xu was not forced to close because of a sharp reduction in orders.

    According to a supervisor at the cutting department of the factory, he worked for Wei Xu for 16 years, and no factory has ever been missing orders.

    "All the orders are lined up, and it is now scheduled for next February. Employees often need to work overtime for a long time, and they are rushing to work every month."

    The director declined to be named.

    He said that although wages were not high, it remained stable for more than a decade.

    The collapse of the factory came very suddenly. The day before October 31st, the workers were still working overtime.

    The second day at noon, suddenly discovered that boss Zhuang Jiaying and the company's high-level missing, everybody knew the bad thing.

      

    "Capital turnover is not working" is the main cause.

    What caused the Taiwan boss to abandon the factory and run away?

    According to the telephone left on the notice of a creditor posted on front of Wei Xu's gate, the reporter found one of Wei Xu's main creditors -- specially for Wei Xu.

    Leatherwear

    Yang boss.

    Yang claimed that he had a good personal relationship with Zhuang Jiaying. Before the payment was 60 days, he began to default on the payment from February of this year. Before the collapse, Wei Xu owed him about 8000000 yuan.

    He said Wei Xu has been doing a good job, with many orders, even if it is in arrears.

    Regrettably, Zhuang Jiaying left without saying goodbye.

    Yang boss gave us an account, saying that "Wei Xu does not have any problem of insolvency."

    The Wei Xu factory area covers an area of 900 mu, with 4 dormitory buildings, a large workshop and a number of warehouses and office buildings, all of which are Wei Xu's property rather than rented.

    According to conservative estimates, these assets should be worth at least two hundred million.

    According to the current accounts, Wei Xu bank's loan is about about 50000000 yuan, the wages of the workers are about 7 million yuan, and the suppliers owe about about 70000000 yuan.

    Yang boss said that Zhuang Jiaying fled the biggest possible is "capital turnover is not working".

    Wei Xu

    A shoe factory

    An electronic instrument factory in Shanghai, which closed at the end of last year, may have taken away some of its funds, resulting in tight liquidity.

    In August 2007, Wei Xu

    footwear industry

    Marries with Hubei Changyang manganese industry group, and jointly invest in Hunan Xiangtan to set up Hongxin shoes industry Co., Ltd.

    The planned investment of this project amounts to 30 million yuan.

    The sudden withdrawal of investment in other projects, coupled with the sudden withdrawal of partners, the possibility of breaking the capital chain is very large.


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