Dongguan'S "Shoe King" Sudden Layoffs Are Suspected To Be Preparing For Factory Relocation.

The manufacturing industry that once supported Guangdong's "world factory" is now facing a severe test.

Recently, Taiwan Baocheng group, known as "manufacturing Foxconn", has its Layoffs The storm seemed to indicate that the Pearl River Delta, which was once full of vitality, had been in the "three to one patch" for a long time. It is reported that the 18 people who have been laid off are basically middle-level cadres who have worked in the company for more than ten years.

Ceng Jinchang, director of Yucheng shoemaking factory, confirmed the news of layoffs in November 8th. The reason for the layoffs was "shrinking orders and serious difficulties in production and operation".

After many years of spanformation, small and medium-sized manufacturing industries are still struggling to keep up with this once gold rush for another winter. Some people who have the ability to "live by cost" (such as Baocheng group) are also facing "growing pains" in the process of opening up new territories.

The 18 men were basically middle-level cadres.

"16 years, 5 months." Asking about the length of service, Liu Yu, who has worked for many years in the Yucheng shoes factory of Baojiang group in Dongguan, feels great emotion.

Not long ago, the Hunan people who had finally reached the middle level and 17 other workers suddenly received the notice of layoffs. "On that day, the top cadres in Taiwan were there, but they did not speak. The company's legal representative read out the notice of the termination of the labor contract, which has written the names of the 18 of us. Liu Yu, 40, recently mentioned the experience of 27 last month.

　　 Dongguan Taiwan Baocheng group, a Yucheng shoe factory located in Huang Jiang, is a typical example of the "three to one supplement" enterprise in the early days of the Pearl River Delta. The shoemaking enterprise, founded in Taiwan for more than 40 years, began to chase cheap production environment from the end of last 80s and opened the factory to the mainland. It is reported that Baocheng group currently has factories in Zhuhai, Dongguan, Zhongshan and Heyuan in the Pearl River Delta region.

In the 20 years that have entered the Pearl River Delta, Guangdong's "world factory" has been established rapidly, and Baocheng group has become the world's largest manufacturer of sports shoes and casual shoes. The annual output of footwear is over 250 million pairs, accounting for 20% of the global sports shoes and casual shoes market at wholesale prices.

With the collapse of the manufacturing industry in the Pearl River Delta, the Baocheng group has recently started a storm in Dongguan's Yujiang shoemaking factory. Relatively large treasure, the layoffs are not many: 18 people. However, these 18 people are basically middle-level cadres who have worked in the company for more than ten years.

As for the reasons for redundancy, as Liu Yu received, "orders shrink and production operations are seriously difficult". Ceng Jinchang did not want to elaborate on the specific circumstances. He said that at present, the workers and the group were being consulted. His duty was to convey the group's decision.

Baoji group's performance in the first three quarters of this year showed that although its consolidated revenue in the first three quarters of this year increased from the same period last year, it was also affected by the group's revenue in the first three quarters of this year. exchange rate Adverse factors such as volatility, labor cost and rising cost of raw materials, combined business gross profit and consolidated net profit fell 7.7% and 14.6% respectively compared with the same period last year, respectively, to NT $35 billion 803 million and 9 billion 497 million yuan, respectively. {page_break}

The reason for layoffs is "cage for birds"?

Because of the European debt crisis, the turmoil in North Africa and the Middle East, and the rising cost of various kinds of goods in the mainland, this year's shoe manufacturing industry has experienced unprecedented difficulties.

Labor-intensive enterprises begin to "live by cost" from the beginning. In the late 80s of last century, in order to disperse the production base and make use of the relatively low production environment in overseas areas, Baocheng set up factories in mainland China, Indonesia and Vietnam by investing in Yuyuan Industrial (Group) Co., Ltd. (hereinafter referred to as "Yuyuan group").

Yuyuan Group official data show that in the first half of this year, the proportion of footwear manufacturing business in the Greater China region accounted for 71.1% of the group's turnover. At the same time, the group has now set up new production facilities on the mainland and elsewhere.

In recent two years, the local government of Guangdong Province proposed "cage changing birds". Part of the Pearl River Delta labor intensive industries began to migrate to North Guangdong and Jiangxi.

According to his knowledge, Liu Yu has already spanferred many orders to Baocheng Jiangxi factory. He suspected he was being cut off with his workmates or spanferred to Baocheng. At present, the relocation of factories is very frequent. Before being dismissed, he was mobilized 3 times this year. It is understood that Baocheng group currently has 5 factories in Jiangxi.

However, Asia footwear industry Li Peng, the Secretary General of the association, said that some cheap orders were spanferred to Jiangxi very normal. "Baocheng is still in factories in Zhongshan, Zhuhai and other places, and the scale is almost the same."

Li Peng believes that at present, the cheap labor and cheap land factors in the PRD have disappeared, and the industry itself is overcapacity. Therefore, this year's new round of internal and external troubles will make it difficult for enterprises with poor competitiveness such as quality, capital, management and customers to support it.

But Liu Yu, who had struggled for many years in the Pearl River Delta manufacturing industry, had to be forced to consider his way back. "The road ahead will be seen again, because I am 40 years old now." The wife and children are in Guangdong. Liu Yu looks very entangled about the plan after leaving Baocheng. "Now I think that if I enter the factory again, I will feel scared. Such a big and beautiful factory is still unreliable."