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About 100 jeans companies in Junan closed
Aug '11
About 100 jeans manufacturing companies in Junan town in Foshan city of China's Guangdong province have been closed down in the past six months, as per the statistics of the Bureau of Economic Promotion.

However, the actual number of jeans producing companies that collapsed would be even higher as the Bureau of Economic Promotion does not have data about the companies that were functioning without license or registration and have now closed down.

Junan town produces around 20,000 jeans every year and the factors leading to the closure of jeans companies include increase in production costs, and appreciation of Chinese currency.

The latest to shutdown is a reputed denim clothing company, which closed this month leaving 67 workers unemployed. The company owes 280,000 Yuan of wages to its employees and was scheduled to pay June wages in the first week of this month.

But the factory owner fled, leaving behind the manufacturing equipment in workshop. The owner left a letter for his employees thanking them and expressing his inability to continue operation of the unit. He, however, committed that the wages would be paid after auctioning of the factory equipment.

Fibre2fashion News Desk - China

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