Dongguan authorities encourage firms to buy new machinery
19/07/2012
Chinese footwear firm Yongsheng is to close its factory in Dongguan in August after 25 years of making shoes there, the China Leather Industry Association has said.
Reports from the company say orders are down by 30% and profits are tumbling. There are fears of more factory closures in the city, once hailed as the factory for the world as many Taiwanese-funded businesses are looking for alternative production sites in China’s interior or in Vietnam.
Dongguan’s economic growth in the first quarter of 2012 was 1.3%, the lowest in Guangdong Province.
Share this story:
