Swatch Swatch Factory Fire Completely Destroyed LVMH And Li Feng And Other Supply Shortages.

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< p > > the world's largest a href= "http://sjfzxm.com/news/index_s.asp" > Clock & amp; /a > producer Swatch Group AG (URH.VX) < a href= "a" > Swatch group < < > > recently issued a statement that Zurich local time 29 8:45 in the morning, a factory in Glen Xing was completely destroyed by fire, but fortunately, there was no casualties for non working hours, but the news led to Swatch's share price fell 1.3% on Monday.

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< p > > a href= "http://sjfzxm.com/news/index_s.asp" > Swatch Group AG < /a > URH.VX. Swatch group spokesman Beatrice Howald said that the factory was fully insured, and the factory mainly produces "other parts" for other brands, Swatch group itself business is not affected.

However, the industry is worried that as the world's most watch component supplier, the blaze will also affect the LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA) MOET & CHANDON Hennessy LV group and Compagnie Financi re re (LVMH.PA) and the Hermes group (Hermes) International Hermes group.

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< p > Swatch Group AG (UHR.VX) Swatch group was approved by the Swiss antitrust agency Weko at the end of October, and gradually reduced the supply of watch mechanical movement components before December 31, 2019. This means that the Swatch Group AG (UHR.VX) Swatch group's competitors will face the problem of the important components of the watch "a", "supply".

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< p > according to the agreement reached between the two sides, the Swatch Group AG (UHR.VX) Swatch group can reduce shipments to 75% of the 2009-2011 year average shipment volume in 2014, which will drop to 65% in 2016 and further reduce to 55% from 2018. However, Weko requires Swatch Group AG (UHR.VX) Swatch group to help small and medium-sized companies through the economic difficulties.

In addition, the Swatch Group AG (UHR.VX) Swatch group needs to continue to "assortiments" key components produced by other a href= http://sjfzxm.com/news/index_s.asp manufacturers, the Swiss watch manufacturer, to supply its Nivarox department, because it is difficult to find substitutes in the dominant market position, and now it is too early to reduce the supply.

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Prior to P, Weko agreed in 2011 that Swatch Group AG (UHR.VX) Swatch group reduced its movement supply in 2012 and 2013, and reduced its core supply by 10% in 2014. However, in July this year, Weko rejected the proposal to halt the supply of components in 2025, and then returned to the negotiating table.

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< p > analysts estimate that the core of 2/3 in Swiss made watches is from the ETA Department of Swatch Group AG (UHR.VX) Swatch group.

In the 2012 fiscal year, the sector's operating profit rose by 37% over the same period last year, contributing much to the 23% net profit growth of the group.

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Nick Hayek, chief executive of Swatch group, P Swatch Group AG (UHR.VX), has been seeking to reduce the dependence of other brands on its core products to stimulate creativity and research and development in the industry.

At the beginning of March, the group's chief counsel said that it would reduce the supply of machine core and do not want the group to become a "supermarket" in the industry. The group's movement will be more used for its brand OMEGA and Longines.

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< p > in response to the imminent shortage of supply, Swatch Group AG (UHR.VX) Swatch group LVMH Mo Mo t Hennessy Louis Vuitton Vuitton (MOET & CHANDON) MOET & CHANDON Hennessy Hennessy.

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