Foreign Firms Leaving China

Discussion in 'China' started by Armand2REP, Jan 19, 2012.

  1. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    TV maker to hire 100 workers at Michigan plant

    A small Minnesota electronics company aims to bring TV manufacturing back to the U.S., hiring 100 workers at a plant in Canton.

    Element Electronics, which sells TVs made in China to big-box stores like Walmart and Target, has teamed up with a Michigan company, Lotus International, to produce low-priced flat-screen TVs that are 46 inches and larger.

    The first large TVs could start rolling off an assembly line in March. The company plans to hire workers and set up a call center to handle customer questions.

    Michael O'Shaughnessy, Element's president and owner, pledges that its Michigan-made TVs will not cost consumers any more than if the sets were produced in China.

    "We are doing this to set an example," said O'Shaughnessy, who grew up in Ohio. "This is the right thing to do."

    Sony closed its last U.S. TV plant in 2010. Vizio is American-owned but outsources its production outside the country.

    Bringing back TV manufacturing is part of a growing business trend called reshoring. With soaring costs for Chinese labor and shipping, many companies are rethinking whether it still makes sense to make their products overseas.

    TV maker to hire 100 workers at Canton plant | Detroit Free Press | freep.com

    China No Match for Dutch as Philips Shavers Come Home

    Jan. 19 (Bloomberg) -- Royal Philips Electronics NV workers in the Dutch town of Drachten who expected to be fired were astonished when the site manager said the company was bringing production of its top-priced electric shavers home from China.

    Rob Karsmakers, the factory manager who returned from four years working for Philips in Asia, told the baffled crowd that the consumer-electronics company would boost investment in Drachten, where it employs 2,000 staff.

    "A product engineer in Shanghai now is just as expensive as in Drachten," said Karsmakers, who has overseen the plant since 2009, in an interview. "But in China, the headcount turnover is high. That is not sustainable."

    China No Match for Dutch Plants as Philips Shavers Come Home - Bloomberg

    Dishman in Talks to Sell China Factory

    BANGALORE — Dishman Pharmaceuticals & Chemicals is in advanced talks with prospective buyers for its Chinese factory and is expecting about $25 million from a possible sale that would help the Indian company cut debt.

    “If we get the price we are seeking, we’ll dispose it off and use the proceeds to reduce our debt to that extent,” Chief Financial Officer V.V.S. Murthy said recently. He expects to close a deal by June.

    Dishman started work on its China factory in the financial year ended March 31, 2007, to produce pharmaceutical intermediates and active pharmaceutical ingredients–raw materials used in making drugs–for supply to its U.S. and European clients. It has invested about $20 million on the factory at the Shanghai Chemical Industry Park.

    The company was initially expected to start commercial production at the factory by September 2008 but hasn’t been able to do so due to a lack of local regulatory clearances.

    Dishman in Talks to Sell China Factory - Deal Journal India - WSJ
     
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    As per the Chinese, there are merely sweatshops!

    And that they knew all about it going to happen and are ready for the same.
     
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  4. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Business returns to US as China loses edge

    January 17, 2012

    Bruce Cochrane’s family furniture business illustrates what may be the start of a US industrial renaissance.
    His story also offers insights into the opportunities and the pitfalls facing manufacturers wanting to build up their US production.
    The Cochranes were in the furniture business for five generations, employing more than 1,000 people in the early 1980s. But by 1996 the going had become too hard and they decided to sell out. Under the new owners, their factory in Lincolnton, North Carolina, was closed, the equipment was dismantled and production was moved to Asia.

    Mr Cochrane worked for 12 years as an import consultant, advising companies on how to source furniture from Asia to sell in the US. But by last year, he had come to the view it was viable to make furniture in the US again, even against competition from China.

    “Back in 2000, the average wage in China was about 50 cents an hour; now it’s $3.50,” he says.
    Non-wage costs have also risen in China. The Chinese authorities have become “much more aggressive” about environmental regulation, he adds. Taking into account the higher productivity of US workers, and shipping costs, the competitive advantage of Asian manufacturing was disappearing, he said.

    So last year, he announced that Lincolnton Furniture would open up production of high-quality wooden beds, tables chairs and cabinets in his family business’s old plant. “The ‘Made in the USA’ label is more important now than it’s ever been. People are looking for American-made,” he says. “I’m convinced that our timing is exceptionally good.”

    He is not alone in that view. Plenty of economists and business leaders believe that US manufacturing is entering an upturn that is not just a bounce-back after the recession, but a sign of a longer-term structural improvement. Manufacturing employment has grown faster in the US since the recession than in any other leading developed economy, according to official figures. Productivity growth, subdued wages, the steady decline in the dollar since 2002 and rapid pay inflation in emerging economies have combined to make the US a more attractive location.

    “Over the past decade, the US has had some huge gains in productivity, and we have seen unit labour costs actually falling,” says Chad Moutray, chief economist at the National Association of Manufacturers. “A lot of our members tell us that it sometimes is cheaper to produce in the US, especially because labour costs are lower.”

    The increased competitiveness of US production has been reflected in the past couple of years in job creation announcements from Ford, GM, Caterpillar, Sleek Audio, Farouk Systems and many others. President Barack Obama recently called it a “hopeful trend”.

    Business returns to US as Asia loses edge - FT.com
     
    Last edited: Jan 19, 2012
  5. Param

    Param Senior Member Senior Member

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    :pound: I wonder whether the pay hike includes our Chinese members here.
     
  6. Ray

    Ray The Chairman Defence Professionals Moderator

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    Will be dismissed by the Chinese as sweatshops returning!
     
  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    Even so, this is what happens.

     
    Last edited by a moderator: May 10, 2015
  8. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Master Lock hailed by Obama for 'insourcing'

    The White House Wednesday hailed Master Lock Co. as a forerunner in the movement to bring off-shored jobs back to the United States and compete against China from its flagship factory in Milwaukee's inner city.

    "When Master Lock looked at their numbers, they saw that union workers in America could do the same job at competitive costs as nonunion workers in China," President Barack Obama told a forum meant to highlight a small but growing movement to shift production back to the U.S.

    "In fact, Master Lock is now exporting their products from the United States to China and Europe," Obama said at the "Insourcing American Jobs" event in Washington. "Today, for the first time in 15 years, Master Lock's Milwaukee complex is running at full capacity."

    Over the past 18 months, Master Lock said it has returned 100 jobs to its Milwaukee factory that it previously had off-shored, even as the company maintains major production sites in Mexico and China. But it cites rising wage costs in China, where labor unrest has pressured costs higher in a nation with a supposedly inexhaustible supply of cheap labor. Master Lock also referred to rising container shipping expenses.

    Master Lock hailed by Obama for 'insourcing' - JSOnline
     
  9. Godless-Kafir

    Godless-Kafir DFI Buddha Senior Member

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    Wow!! a few companies and i am sure the Chinese are trembling... USA and west cant match China in any way as far as production efficiency.
     
  10. sukhish

    sukhish Senior Member Senior Member

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    china doesn't allow barking. this is bound to happen. what freaking oppsered society dreaming of becomming a superpower.
     
  11. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Turning point for China Light Manufacturing

    [​IMG]
     
  12. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Taiwanese firm steers Nike's shift from China to Vietnam

    Vietnam surpassed China to become the largest producer of Nike shoes at the end of May last year. According to market observers, Nike's top manufacturer, Taiwan's Feng Tay Enterprise Co, played a key role in Vietnam's ascent.

    Currently, Feng Tay, which manufactures shoes, clothing and sports equipment, produces one out of every six Nike shoes sold in the world. It shipped more than 60 million shoes in 2010.

    Both Feng Tay and Yue Yuen attributed the shift in production away from China to increasing labor costs on the mainland and the yuan's appreciation in recent years.

    Feng Tay added that the company is currently eyeing India as its new production site because of its reasonable labor costs, abundant labor pool and geographical proximity to Europe.

    Taiwanese firm steers Nike's shift from China to Vietnam|Economy|In-depth|WantChinaTimes.com
     
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  13. Blackwater

    Blackwater Veteran Member Veteran Member

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    i dont think so,,,i think they are still working free for paki firm in china :rofl::lol::scared2::scared2::taunt1::taunt1::rofl
     
    Last edited: Jan 20, 2012
  14. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    3,000 Chinese lose their jobs as Model Train factory closes

    Chinese Manufacturer of Model Trains Closes; What are the Implications?
    A large manufacturer of model railroad products in China has closed. The closure will be felt throughout the hobby, as explained by Jason Shron of Rapido Trains below. It will also adversely affect thousands of Chinese, who lost their jobs.

    Here is Jason's message, sent out today:

    Hi all,

    A large Chinese supplier of model trains closed down today. This factory employed 3,000 people and was a major producer for North American manufacturers.

    This is the second large supplier to shut their doors in two years. It will no doubt contribute to delays across the industry as that factory's clients try and move their production to other, overworked factories.

    The reality is that model railroad price increases (averaging 10%-25%) have not kept pace with cost increases in China, and it is often difficult for the Chinese suppliers to stay in business while meeting the demanded price point from their major North American clients.

    Our industry is currently tied to Chinese production, as southern China has developed the special skill set required to produce model trains. Bringing the manufacturing back to North America would cost even more, and there are no reliable model train factories set up yet in places like India.

    So I think we're looking at tough times ahead in our industry: more delays and even larger price increases. At some point many modellers will say "that's it - this hobby is too expensive!" and leave. With lower sales, the prices will increase more. So this could be the beginning of an escalating negative spiral.

    So far, Rapido has largely been spared from most major cost increases, but I have been warned that our costs are going up soon as well. That being said, we are looking at ways to avoid getting caught up in that negative spiral and keep our quality high and prices competitive. I will keep you guys informed of our progress.

    3,000 people in China have just lost their jobs a week before Chinese New Year. Not a good day.

    CP Rail Manitoba & Minnesota Subdivision: Chinese Manufacturer of Model Trains Closes; What are the Implications?
     
  15. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    No one said these outsourcing agents were smart.
     
  16. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Just Like China’ Before Wage Surge Lures Bra Maker to Cambodia

    Workers at Top Form International Ltd.’s newest Cambodia plant are painting a long line of latrines on a December morning. Rows of sewing machines sit idle in a dimly lit warehouse, while next door 150 18-year-old women learn how to sew bras on used Singer Sewing Co. machines.

    Chairman Willie Fung has big plans for the factory on Phnom Penh’s outskirts: By the end of 2012, 1,200 workers will produce 80,000 bras a month for sale to the U.S. and Europe. Eventually, this Southeast Asian nation of 14.7 million people could account for one-third of Top Form’s output.

    “Cambodia is just like China was 20 years ago. It’s on the verge of a big expansion,” says Fung, a 40-year veteran of the business who may open more factories outside Phnom Penh. Hong Kong-based Top Form, which supplies New York-based Warnaco Group Inc. and Japan’s Wacoal Holdings Corp. (3591), has reduced its China production from 65 percent of total output three years ago to just over 50 percent now. It could drop to just one-third.

    “In Cambodia, people are happy to have a job,” says Fung. “But in China we keep losing workers. Whether we like it or not, we will be moving out.”

    Top Form laid off 600 workers in its Shenzhen plant last month.

    `Just Like China’ Before Wage Surge Lures Bra Maker to Cambodia - Bloomberg
     
  17. Godless-Kafir

    Godless-Kafir DFI Buddha Senior Member

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    People like Armand2Rep are not just laughing at China but when they go to other forums they laugh at India and its poverty, make no mistake they are jealous and dont care that people are comeing out of poverty, offcourse if i put it that way it irks anyone's concision's and they may deny it but in reality they laugh at any nation that is not Western in other words white. I really feel for the poor chinese who may get hurt in all this, its not the Commie government that i care about, i wish it went away but to see anyone suffer is not my cup of tea.
     
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  18. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Toy Exports from China fell 20% in 2011. 3,000 factories closed and 10% workforce laid off

    A few thousand toy factories closed in China in 2011 while about 10 per cent of workers in the industry lost their jobs, according to the Toy Manufacturers' Association of Hong Kong. Link

    The Guangzhou Daily recently called this Christmas "the worst" for Chinese toymakers. In the third quarter, the official government statistics show that gifts and toys exported to the U.S. and Europe, which normally make up more than half of the total export volume, fell 20% from last year. At the recent Canton Fair 2011, the largest trade fair in China and a bellwether for China's export volumes, transaction orders in toys from the U.S. decreased by 24% from last year.Link
     
  19. no smoking

    no smoking Senior Member Senior Member

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    Carry on, Armand2REP, you know that your performance is the thing making chinese members here laughing.
     
  20. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    You laugh at mass layoffs of your people? :confused:
     
  21. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    OMNOVA closes Taicang Plant, 95 workers affected

    MNOVA Solutions Inc. (OMN: News ) said it will immediately suspend production at its Taicang, China plant and consolidate production into its Shanghai, China facility, pending future improvement in business conditions. The company noted that the idling will affect around 95 employees at the Taicang plant.

    Weak demand in the domestic and export furniture and automotive upholstery markets, which created excess industry capacity in the region, led the company to suspend production at the Taicang plant.

    OMNOVA emphasized that the suspension of production will occur in an orderly fashion, consistent with local labor requirements and appropriate safety and environmental practices.

    Cash costs to idle the facility are estimated at $0.5 million, which will be incurred during the fourth quarter of 2011. Cost savings from idling the plant are forecasted to be $1.2 million in 2012.
     

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