Home / Knowledge / News / Textiles / Cascading effect of shutdowns in Pearl River Delta belt
Cascading effect of shutdowns in Pearl River Delta belt
15
Dec '08
On October 15 this year, Smart Union Group (Holdings) Limited, one of the world's largest toy enterprises, announced closure of its two plants, leaving about 6,500 workers jobless overnight. The incident has been seen as the concrete manifestation of the devastation created by the financial crisis and also shocking the companies of the Pearl River Delta.

All of a sudden, the Pearl River Delta was covered with in an atmosphere of sorrow. On October 23, the president of the Federation of Hong Kong Industries Mr. Chen Zhenren, said that of the 70,000 Hong Kong enterprises existing in the Pearl River Delta, 17,500 enterprises would suffer business failures, nearly 25 percent of all companies. He added by saying that the 70,000 factories in the Pearl River Delta employed more than 10,000,000 workers and if 17,500 of these were to close down, it would leave 2,500,000 unemployed workers.

Two days after the declared bankruptcy of Smart Union Group, Bailingda Industries (Shenzhen) Co. Ltd announced that it would stop operation on October 20 leading to laying off of more than 1,600 employees. It was like a cascading effect which led to other small and big companies in the Pearl River Delta also announcing closures on the heels of the announcement from these two big companies.

According to data from the Guangdong Provincial Bureau of SMEs, 1,464, 956, 709, 704, 587 526 and 432 companies in Dongguan City, Zhongshan city, Zhuhai City, Shenzhen city, Shanwei city, Foshan city and Chaozhou City respectively had pulled down their shutters. According to the data, the closure of maximum number of enterprises is concentrated in traditional industries with low-skilled but high employment generating industries like textile and garment, plastics and hardware, electronics, ceramics and building materials.

According to the statistics released by Guangdong Province, from January to September this year, 56,000 enterprises have announced shutdowns while 92,000 new companies have been set up in the same period which is a good sign in these troubled times. According to statistics, from January-September 2008, in various main markets of the province 62,361 enterprises of all types cancelled their registrations while at the same time 100,634 new units were registered, a net increase of 38,273 enterprises.

Fibre2fashion News Desk - China


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search