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    Wenzhou Encourages Mergers And Acquisitions Among Shoe Companies

    2008/11/10 0:00:00 10255

    Wenzhou

    For a long time, the uncertain factors of the international economic development have increased, which has seriously affected the development of many export industries in China. As an important base of China's footwear industry, Wenzhou has eliminated backward and integrated enterprises under the guidance of the government to enhance the competitiveness of its products.

    According to statistics, from 1 to September this year, footwear exports in Wenzhou decreased by 3.1% compared with the same period last year. Some large shoe companies are in good condition, but small shoe companies are facing the test of merger and elimination in the face of rising costs and other pressures.

    According to the statistics of Wenzhou shoe leather industry association, 172 of the shoe enterprises with output value below 10 million yuan have been merged or stopped production.

    Xie Rongfang, secretary-general of Wenzhou shoe leather industry association, said in an interview that by the end of the year, these enterprises will reach two hundred or three hundred and will increase to more than 1000 by the end of 2009.

    She explained that integration is not a bad thing. At present, China's footwear industry can only be promoted through integration. Wenzhou will encourage footwear companies with output value of more than 1 billion yuan to merge with lower output footwear companies, and especially encourage footwear exporters with output value of more than 500 million yuan to merge small OEM processing enterprises, so as to enhance the whole industry's ability to resist trade risks.

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