Status Quo Of Foundry Enterprises In Pearl River Delta: Sad Christmas Rush

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On the afternoon of December 14th, Mr. Liao, the owner of Dongguan Guan Shun leather goods factory, chose to end his life in an extreme way - self Immolation, but behind him, debt troubles did not go away because of his death.

This may be just a microcosm of many foundry enterprises in the Pearl River Delta.

Guangdong customs statistics released in January 2011 ~11 month foreign trade statistics show that Guangdong has processed since the second half of this year.

What are the difficulties of manufacturing enterprises in the Pearl River Delta? What is the frustration and reflection of China's manufacturing industry under the slogan of "leftover is king"?

First line survey

The most extreme way of self destruction appears in the Pearl River Delta - self Immolation.

In the afternoon of December 14th, Liao, a boss of leather factory in Dongguan, burned himself with petrol in his office.

However, the debt troubles behind him did not go away because of his death.

Since the beginning of this year, enterprises in the usury game have been fleing, hanging, jumping buildings and other cases.

And what is the dilemma facing the boss who chooses to end his life in such a tragic way?

Reporters in the field survey found that the manufacturing industry's long-term loss of business frustration, let the boss fall into deep psychological anxiety, "shut the factory, close shop, or export to domestic sales?" this anxiety has spread to many areas of the Pearl River Delta.

Murder Caused by millions of debts

On the morning of December 19th, in front of Dongguan guanshun leather products Co., Ltd., No. 4 middle Garden Road, laoxia village, Houjie village, Houjie Town, Dongguan City, Guangdong, 3 debt collectors waited for the person in charge of the factory.

In the afternoon of December 14th, the more than 40 year old Houjie local businessman, Mr. Liao, poured gasoline on himself on the first floor office and ignited himself.

And behind this Liao Mou, leaving behind is nearly 4 million yuan debt.

Guan Shun leather products Co., Ltd. was founded in 1996, specializing in the production of various kinds of CD bags, manuals, photo albums and handbags.

The factory building occupies an area of more than 1800 square meters, and the scale of personnel is over 300.

But as of the date of the incident, there were only 80 employees left.

According to the staff, one night before the incident, several people came to the factory to collect debts, and the owner's self Immolation may not be related to arrears.

Reporters later saw at laoxia community service station, the registered debt collection suppliers nearly 10 people.

According to the staff, the company has declined since 2011, and its employees are basically "a few days off for a few days".

It is totally different from the busy scenes of Christmas and new year's rush in the past year. It was the busiest season every year from June to October. But from June this year, the order of Guan Shun leather goods factory has been reduced by nearly half.

In October this year, the crown leather factory began to default on its wages.

In December 1st, dozens of workers in the factory began to strike and complain to the labor service station.

Liao Xiamen community service station on the morning of the 14 day to ask questions, Liao said at the time, said shortly to pay wages.

Unexpectedly, after lunch, Liao then burned himself in the office.

Although Li Qitian, deputy director of the propaganda and education style Bureau of Houjie Town, said that Liao's self Immolation was "mainly personal reason".

However, according to a reporter's investigation, Liao's company has been in debt for a long time. Its choice of extreme suicide is directly related to the company's long-term management difficulties.

In December 19th, a supplier waiting at the factory gate told reporters that as early as June, he supplied 2 needles machines to the crown leather products, with a total price of more than 15000 yuan. At that time, he did not receive cash payment, but only got a cheque.

However, when pferring a bank account, the teller said there was no money to be paid in the checking account.

He asked Liao's financial problems by telephone, and the reply was: "wait a minute, November funds must be credited."

However, in the past November, the amount remained unchanged.

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Closing shop is the best choice.

Similar to Liao, such a small and medium-sized enterprise, which is insolvent, is only a microcosm of hundreds of thousands of small and medium-sized enterprises in Dongguan.

In the past six months, numerous export-oriented Chinese enterprises have chosen to shrink their businesses or even go out of business, and some have even fled the way of volume to cope with the shrinking of capital chains and market demand.

There is an industrial park less than 500 meters away from the crown crown leather factory. One of the factories called Wanli Shoes Co., Ltd. closed down at the end of September, but before the announcement of the bankruptcy, the boss fled with the money when he failed to repay the debt.

Today, the company has gone to the ground.

Earlier this July, Shun Street, Houjie town.

Closure is a forced necessity.

"Shoe production profit margins have been greatly reduced, even if there are orders, we dare not answer.

Sometimes factories start up, but staffing is seriously inadequate.

And small factories are basically running at a loss.

Hui Sen shoe city D area of a foreign trade store owner said.

The North Ring Road of Houjie Town, Dongguan, which is "one shoe Street", is the most concentrated place of shoe industry in Dongguan. It has more than 10 professional markets, namely, laoxia market, Hongyun shoe material square, Kangmei shoe city, husinen shoe city and so on.

The Houjie ha ha community, known as the "10 pairs of shoes in the world, has 1 pairs of products" since then, with an annual export volume of 500 million pairs.

However, nowadays, apart from the large enterprises such as Huajian group and BELLE group, these stores are mainly for customers from Africa, the Middle East and other places, and these customers are very sensitive to prices. "A pair of shoes earn only a few yuan."

In December 20th, reporters found that a large number of stores had closed down in the "shoe city" survey.

In the once booming market of Hongyun shoe materials, reporters found that nearly half of a row of stores closed.

Zeng boss has closed for more than 1 months at a store in the shoe city of Hui Sen.

Giving up the nearly 20 square meter store means that he will also lose another 10 thousand yuan of rental deposit.

"Business is so bad, rather than 10 thousand yuan."

As he did, there were more than 10 in the shoe city of Hui Sen.

The city of Conson shoes is just like the front door of the city.

The most prosperous northern ring road is the most famous shoe city in Dongguan and the Pearl River Delta. Nowadays, there are few pedestrians on the streets. The lorries are parked in the twos and threes, and most of the drivers do nothing at all.

And half a kilometre away, soon after the completion of the heyday shoe Bo city is facing the opening.

Although the rental price has been approved as a relatively cheap 70 yuan / square meter, and half a year's rent free period, there are still more than 10 stores in 50 stores that have not yet been leased.

Most of the rented shops have no signs of being settled.

Once the boss told reporters that now that "small orders, fewer employees, cash shortage, high cost" era, many bosses are considering how to spend the winter next year, how to quit the industry.

The most difficult period has not yet arrived.

In fact, not only the problem of how the shoe industry in the Pearl River Delta is going to survive the winter, but most industries in the Pearl River Delta are facing the problem of shrinking or unprofitable market.

Cui Guangde, chairman of Zhongshan Dan Li Sanitary Ware Co., Ltd. has been engaged in the export of sanitary ware.

Due to the shrinking demand in Europe and the United States, as early as 2009, he opened the door of domestic sales through the sponsorship of Guangzhou Asian Games, but so far the domestic market has been developing slowly.

"We must fight brand when we sell domestic products. The company has not yet set up a brand marketing team with ability, so it has not found the right marketing talents.

So we have to shift from domestic sales to exports.

Although the Middle East and Africa markets are relatively strong, the added value of products in Africa and the Middle East has been low to no profit.

He said.

In the ceramic bathroom industry, there are hundreds of thousands of bosses facing a similar dilemma with Cui Guangde.

There are also thousands of small and medium LED lighting enterprises in Shenzhen, Guangzhou, Haizhuqu District, Lujiang and upper Chung areas.

All trades and professions staged "winter swimming" in different versions.

In December 13th, Shenzhen Datong Enterprise Services Co., Ltd. released the "-11 January 2011 SME index report" in January 2011. The report shows that, contrary to the steady increase in orders for foreign trade enterprises at the end of last year, the order of small and medium-sized foreign trade enterprises dropped sharply in the last two months.

As an export declaration platform, one Datong grasps the operation of thousands of small and medium-sized foreign trade enterprises in the Pearl River Delta.

After a random sampling of 2000 small and medium-sized foreign trade enterprises and tracking and testing their foreign trade situation in 2011, the report is concluded: "the situation facing small and medium-sized foreign trade enterprises is expected to be more severe in the first half of next year, which is the most difficult period in recent years."