Chinese headphone maker in Dongguan shuts down, intensifying country’s woes in manufacturing, cross-border e-commerce – Yahoo Finance
Summary
A major Bluetooth headphone maker, Dongguan Koppo Electronics Co, has decided to shut down for good and dismiss all its workers, becoming the latest casualty of the economic headwinds, supply chain disruptions and trading woes that have hit China’s manufacturing heartland.
Koppo Electronics, which has operated its factory in the city of Dongguan in southern Guangdong province for 12 years, said it was ceasing operations partly because “a number of cross-border e-commerce clients have fa…….
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A critical Bluetooth headphone maker, Dongguan Koppo Electronics Co, has decided To close down for good and dismiss all its staff, turning into The latest casualty of the financial headwinds, current chain disruptions and buying and promoting woes Which have hit China’s manufacturing heartland.
Koppo Electronics, which has operated its manufacturing unit Inside The metropolis of Dongguan in southern Guangdong province for 12 yrs, said it was ceasing operations partly as a Outcome of “Pretty A pair of cross-border e-commerce consumers have Did not make due funds”, Based mostly on a discover seen by the Submit.
“Since the outbreak of the Covid-19 pandemic, worldwide financial and commerce flows have seen unprecedented disruptions,” the discover said. “The agency has been hit by delayed funds by Pretty A pair of cross-border service providers, and An limitless quantity of accomplished items are stockpiling Inside the wrestleehouse.”
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Koppo Electronics Is predicted To place off 100 staff, Based mostly on a report on Wednesday by Chinese language digital media Jiemian Information. At its peak, the agency had Greater than 1,000 staff and produced about 400,000 headphones a month.
A manufacturing line Contained in the manufacturing unit of Dongguan Koppo Electronics Co, a primary Bluetooth headphone maker in China. Photograph: Handout alt=A manufacturing line Contained in the manufacturing unit of Dongguan Koppo Electronics Co, a primary Bluetooth headphone maker in China. Photograph: Handout>
“The agency has been making losses In current occasions and It is troublesome to proceed the operation,” the discover said. “The sudden outbreak of [the Ukraine] wrestle has dealt one other heavy blow to the agency’s enterprise and the market state of affairs is simply grim.”
Telephone calls to Koppo Electronics went unanshave beend on Wednesday.
Its collapse comes on the heels of Pretty A pair of extreme-profile manufacturing unit closures Inside the Pearl River Delta, which has raised considerations about China dropping its aggressive edge in manufacturing and primary position in worldwide current chains.
Problem in China’s manufacturing heartland has the potential to ripple by way of The broader financial system. The export sector currents jobs for 180 million people, or Greater than A third of the nation’s 530 million non-farming jobs, Based mostly on knowledge from China’s Ministry of Commerce.
The demise of Koppo Electronics additionally displays extra indicators of trouble for the “Made in China, Purchased on Amazon” group, following the US e-commerce agency’s in depth crackdown that eliminated hundreds of Chinese language vendors from the platform since final yr.
Definitely one of many agency’s largest consumers To overlook funds was Shenzhen-based cross-border shopper electronics …….
Source: https://finance.yahoo.com/news/chinese-headphone-maker-dongguan-shuts-093000789.html