CNC Machining and CNC Machine Tools, Industrial enterprise management

Layoffs! Off factory! Another giant factory fled overnight

Since the cost of production has been rising year by year, some large-scale manufacturing factories have been diverting and diverting capital in China. This is not uncommon for some factories in Europe, especially Japan, Japan and Taiwan. They are currently investing and building factories in Southeast Asia. The United States is also Encourage the return of manufacturing …. large machining

January 7, 2018, Suzhou, a manufacturing town in eastern China, was cold and windy. That is, on this day, Japan’s top 500 Japanese giant, the Nitto Denko Suzhou plant, announced it will stop production in January and begin to terminate the contract in February. At a peak, nearly 6,000 giant factories will cut the last 1,000 Chinese employees and officially withdraw from the Chinese market. More than 1,000 families will lose their jobs before the Spring Festival to meet the coldest winter in history.
Factory workers in the online extensive help, the factory is full of “to work, to live” rights banner and employees, experience the holiday before the fall of the collapse

Constant withdrawal of the deserted giant giant manufacturing capital

Nitto Denko, a giant with 94 offices, has offices in Beijing, Shanghai, Xiamen, Hong Kong, Shenzhen, Suzhou and Taiwan.

The discontinued sub-plant, which was established by Nitto Denko in Suzhou in July 2001, has a total investment of 13 billion yen and is still profitable. Due to its core material technology, its position in China is also quite solid . large machining

The withdrawal of such a famous giant can not help but reminiscent of the two-month-old Nikon Wuxi plant layoffs after the closure of 2,000 people, as well as New Year’s Day last year, the American hard-line giant Seagate layoffs thousands of people fleeing.

It is understood that as a comparable to Shenzhen, another Chinese manufacturing capital, Suzhou escaping in recent years does not stop there, Nike, Adidas, United Construction, Hong Hui, Philips, Puguang, Wal-Mart, Nokia, Seagate, and as and so on, all of which are once famous, employees thousands of businesses at every turn.

Once brilliant world of the world factory, in the end what happened?

Giants have evacuated reason

The departure of these giants may really be as the Internet said, because the cost is too high, have diverted to low-cost manufacturing plant in Southeast Asia, but Xiaobian think more is inseparable from the strategic development of the city of Suzhou. large machining

First, industrial upgrading

In Suzhou, the fall of industrial growth in 2012 began to fall, and the slogan of industrial upgrading in Suzhou shouted for many years. Behind these policy slogans, accompanied by the demise of China’s demographic dividend, the cost of employing enterprises and the cost of land The continuous improvement and the consolidated tax rate remain high. This is exactly what can not be neglected to encourage many enterprises to be evacuated.

Second, high prices

In Suzhou, for example, in 2016 this year, Suzhou property market has become a veritable “king of the earth.” In 2016, the land sales of seven cities nationwide surpassed one hundred billion. Suzhou took the lead and the land transfer fee was about 177.3 billion yuan, more than three times the amount of 2015 full year! Limit before the king frequent, mansion topic lead circle of friends. Suzhou, Nanjing, Xiamen, Hefei, known as the “four dragons in the property market.”

However, the soaring situation will not change until 2017, but the price is still at a high level, raising the manufacturing cost invisible. large machining

Third, prices soaring

Suzhou not only skyrocketing prices, to the industry plus straw, prices also rapidly rising in these two years. In particular, under the dual impact of supply-side reform and environmental protection, raw material prices skyrocketed and the production costs of enterprises soared. In order to reduce costs, they could only choose to shut down factories and high-end direct return to their home countries and transfer of low-end to Southeast Asian countries.

There are good things for users even an account, Suzhou Industrial Park, after the tax basically hand to tax the average is about more than 5000, if you count five insurance a gold, then the company needs to support an employee 12,000 yuan / month. Compared with more than 1,000 Vietnamese workers in January, there is no way to compete. Moreover, the same piece of goods, China’s cost of raw materials plus labor costs plus tax is 100, Vietnam added up to 70. The same export, Vietnam offer 100. large machining

The withdrawal of these manufacturing companies, after many young people in 90s, is a powerful result of China. When the foreign capital is gone, there will be countless Huawei, Jingdong, Tencent and Ali standing up and Suzhou still prospering. Left China, the world will lose a big market, Europe and the United States will fall into recession ……

Immersed in the mirage of real estate and finance, they have forgotten that manufacturing is the thriving capital of the city. Nor can they see that China is still far behind the imagination so much that many core technologies of high-end manufacturing are still in the hands of Europe, We are still at the level of selling coolies and foundries, and industrial upgrading is still far from complete. large machining

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