PRD Enterprises: Frequent Failures And Difficult Steps

The reporter saw in an industrial park in Huadu District that a leather factory had long been shut down, leaving only empty factories. There were several porters waiting for business at the gate of the factory.

There's another family near here.

The factory has also gone bankrupt, and the boss set up a restaurant to make ends meet with the funds he moved.

During the financial crisis in 2008, manufacturing industry slump, foundry enterprises in the Pearl River Delta went bankrupt and migrant workers returned home in large scale.

Since the beginning of this year, the European debt crisis and the rising cost of domestic industry have led to the emergence of the foundry enterprises and the return of migrant workers to the countryside.

Frequent bankruptcy

At the junction of Guangzhou and Foshan, Chuang Yi equipment and equipment factory also failed to escape misfortune.

The staff of the LED parts factory has been disbanded, leaving only the goods and machines waiting to move.

The boss has pferred the entire production line, and now there are only shop facades.

"I can't stay fast. There have been many close colleagues."

Mr. Zhang, who is engaged in handbag subcontracting in Dongguan, told reporters that according to his knowledge, there were two large factories in Dongguan recently, and the number of employees was around 1000, while the smaller factories collapsed.

The most recent collapse in Dongguan is the collapse of Dongguan Guan Yue Toy Co., Ltd., which was founded by Li Jiacheng, the richest Asian company, to turn its price out during the financial crisis. Premier Wen Jiabao also visited the factory.

The most brilliant period of this factory is to make a living by foundry. After the rising production costs and smaller profits, the factory tried.

But in the end, it has not escaped the fate of bankruptcy.

"We have heard that there are small factories closing down and clearing, which industries have, and there are many bosses running away. I hope we will not fall into such fields."

Mr. Liu, who is the head of a textile enterprise in Dongguan, is worried about the failure of enterprises around him.

The reporter understands that the situation of closure is not only existing in Dongguan and Guangzhou, but also in Shenzhen, Zhejiang and Fujian.

Said of an aged person

More enterprises are on the brink of bankruptcy than those who have already failed.

News of Adidas's closure of Chinese factories has been bubbling with excitement.

In fact, the production capacity of this factory is not large in Adidas, and the production of Adidas in China is mostly done by the foundry factory.

In response to closing the Chinese factory, Adidas said it would not affect its 300 foundry factories in China, which had about 300 thousand workers in the 300 foundry factories.

Just after Adidas's response, Oriental News broadcast a news in the Orient news that Adidas suddenly terminated its cooperation with its "foundry enterprise".

These enterprises produce for Adidas.

T-shirt has been waiting for more than 10 years, but it has been notified recently that Adidas will terminate cooperation with them from October to April next year.

"Fixed investment is around ten million, and there are still costs in manual lifting and so on. We have not made a clear calculation and we dare not calculate."

Chen Yunfu, the head of a foundry enterprise of Adidas, said.

These companies only got the promise of Adidas last year, and will not terminate the OEM cooperation by 2015. Enterprises have increased investment to this end, and now they have suddenly changed their views.

"Orders, costs, funds, these problems stack up together, we can not breathe."

Zhang Qiuren, general manager of Dongguan North China Industrial Company, told our reporter that this year's business situation is even worse than that of the financial crisis. Not only are the orders less, but also the short list, coupled with the continuous increase in labor costs and the difficulty of financing.

"This year's clothing orders are worse than the financial crisis, and the business is still more difficult than the financial crisis."

Cai Huantian, vice president of Wenzhou clothing trade association and chairman of Zhejiang fist Garments Co., Ltd., poured water on the media reporters. "From the number of orders this year, we saw a decrease of more than 30% from last year. From a single order, the amount of orders is reduced by 70% over last year, for example, the original order was about 100 thousand yuan, and now it is twenty thousand or thirty thousand yuan."

Mr. Zhang told reporters that in Dongguan, many people could not keep up or shut down their factories to other industries, or were forced to go bankrupt, and some factories moved to cheaper areas such as Southeast Asia. Some of them, like themselves, chose to rather lose their money.

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Choose to return home

More and more workers are forced to return to their jobs because of the continuous news of business failures and the decline in factory operating rates.

"Two months off, I don't know if the factory can start."

Liu Jing, 23, has been in Henan for two months. She worked in a shoe factory in Dongguan.

She told reporters that recently, many workers chose to return home to work, and the townsman who returned home with him did not meet with the factory closing down or a holiday.

Li Youhuan, director of the comprehensive development research center of the Guangdong Academy of Social Sciences, said that migrant workers returning to the countryside in the Yangtze River Delta indicated that their manufacturing industry had already been in trouble.

This round of crisis is completely different from the financial crisis of 2008. 2008 is the contagion crisis triggered by the financial crisis. This is the fundamental downward trend caused by the downward pressure of the world economy and the domestic economic structure.

Reporters in the interview with enterprises, most enterprises told reporters that the current difficulties are more serious than the financial crisis, and workers returning home are mostly due to inadequate factory start-up, and when the order is sufficient, these workers can return to their posts.