In the case of market consumption upgrading and intensified trade competition, the old foreign trade factories with unlimited scenery in the past are now struggling. Recently, the news of the collapse of two major foreign trade factories in 30 years has made many people sigh. What's going on? Hurry up and follow the 18 supply chain to take a look!
Recently, Shenzhen Weiqun Precision Machinery Products Development Co., Ltd. (hereinafter referred to as "Weiqun Machinery") has officially stopped production and business on June 6, and all employees were dismissed in advance, stopping the pace that has gone through 31 years. So far, this large factory, which has witnessed the ups and downs of China's foreign trade for decades, has officially withdrawn from the historical stage.
According to the closing announcement, since the new crown epidemic, the global economic recession has worsened the difficulties of factory operation, and it has been difficult to maintain the livelihood of employees, but to this day, it is difficult to continue. After the decision of the board of directors of the company, the production and business will be officially suspended on June 6, 2024, and all employees will be dissolved ahead of schedule.
Although it has decided to suspend production and business, the factory did not directly abandon the stall, but according to the requirements of the mainland labor law, the employees who have not reached the statutory retirement age will be compensated accordingly, and the average salary of different standards will be paid according to the personnel of different working years, so as to give everyone the dignity to leave at the end.
According to public information, Weiqun Machinery was founded in 1993, mainly engaged in the production and sales of vehicle machinery and parts, cutting tools, craft products, machinery and plastic products, and most traditional foreign trade enterprises, Weiqun Machinery mainly operates in overseas markets, accounting for 100%, and has left a good product reputation around the world.
After the epidemic, overseas demand has slowed down, but the production capacity of these traditional factories is still only increasing, which leads to oversupply, saturated market demand, and increasingly difficult factory operations. In addition to Weiqun Machinery, at the end of May, Dongguan Wycombe Abbey Electronics Co., Ltd. (hereinafter referred to as "Wycombe Abbey Electronics") also announced the news of closure and liquidation.
Wycombe Abbey Electronics is a wholly-owned subsidiary of Hong Kong company Wycombe Abbey International Group Co., Ltd., which is mainly engaged in the foreign trade export industry and has three factories in mainland China, two in Dongguan and one in Jiaxing, Zhejiang, but it has also been closed in recent years.
The recently closed Wycombe Abbey Electronics is mainly engaged in the production and sales of various cables, plugs and plastic products, which are sold well in overseas markets in Europe and the United States, and at its peak had more than 1,500 employees. It is a pity that although the product is very resistant, it still cannot save the decline of the enterprise.
At present, the mainland's manufacturing industry is in the throes of transformation, a number of low-end traditional foreign trade enterprises are being eliminated at the same time, another batch of foreign trade factories are transferring production capacity to increase long-term export competitiveness. Finally, what other news do you know about foreign trade factories? What is the current order volume?
This article is provided by 18 Supply Chain, and for more up-to-date information, please refer to the official account "18 Supply Chain Cross-border Logistics".
Editor of this article: Xiaoba