Pearl River Delta printing enterprises in October temporary closures
According to the Hongkong Wen Wei Po reported, because the United States sub-prime crisis export demand, a large number of small and medium-sizedbusinesses and Guangdong, the appreciation of the renminbi and paper andrising labour costs, a reluctance to disclose the names of Shenzhen Printing Association, said people familiar with the situation, the Pearl River Delta 1.5printing industry is facing a dilemma, the only Shenzhen has Parkway, Blue Starprinting etc. large and medium-sized printing enterprises closed down, along with the printing industry in October is expected to the end of the season, there will be a large number of printing enterprises especially small and medium-sizedenterprises go bust.
"We 70% are export orders, as the 1 years, the appreciation of the renminbi 9.7%,makes our loss of tens of millions of dollars, while the state against hot moneymeasures also affects the company's cash flow and exchange loss. "Chinese business joint printing (Guangdong) Co. Ltd. deputy general manager Zhou Zhiqiang said, since last year the city of Shenzhen and the 2 time this year to raise the minimum wage standards, the company employee wages last year increase of 15% this year, an increase of 20%, coupled with the implementation of the new labor law, paper prices and environmental requirements increase, the company production cost increase of at least 25%. The rise in other printing enterprise iswidespread.
Production costs generally rose 25%
President of Shenzhen Printing Association, Heidelberg printing equipment(Shenzhen) Limited General Manager Tan Haohui also said that the United States of America, a sharp decline in demand, resulting in Shenzhen and the Pearl River Delta into 5 business is export processing printing enterprises are facing difficulties, the state's macro-control policies also make many small and medium-sized enterprises in bankruptcy. He also refers, many export processingenterprises printing is usually one year ahead of the signing of contracts with overseas customers, but in recent years, the RMB last August by a dollar to 7.60yuan to 6.86 yuan in the middle of August, the appreciation rate is as high as 9.7%, which has a lot of printing enterprises loss big.
Early signing to exchange loss
Former Chinese business joint printing (Guangdong) Limited company deputy general manager, the incumbent Shenzhen Chinese business security printingLimited by Share Ltd general manager Chen Jun also said, since the fourth quarter of last year, the widespread use of printing copperplate paper, book paperand baryta rose more than 20%, the production costs rise sharply. And the appreciation of the renminbi also make the former cost the company tens of millions of dollars.
Blow hot money liquidity reduction
In addition, he said, China in the last year to the processing trade export tax rebate rate from 11% down to 5%, and in July 2nd this year to combat the hot money "on the export method settlement network verification notice", printing enterprises to export customs statistics more than the amount of foreign exchange, need to saveinto the designated account, printing enterprises only have foreign exchange quota before they can apply for the use of, and many export processing contractbefore signing, product is already exported, have now been included in this way,many printing enterprises liquidity decreases considerably, and will lead to the appreciation of the RMB to bring foreign exchange losses.
Close serial chain and printing enterprises
Tan Haohui said, the first half of this year a total of 6.7 small and medium-sizedenterprises closed down, the Pearl River Delta accounted for a large proportion,the inevitable spread of print business. He learned from the authorities in Hongkong, Hong Kong enterprises have 7 in the Pearl River Delta, have been or will face closure is amounted to 2. And Zhou Zhiqiang said, the first half of this year, the Pearl River Delta including Shenzhen, Dongguan, there are 4000 Hong Kong enterprises closed down, mostly clothing, footwear, textiles and toys,accounting for the main business of printing and packaging enterprises shoebox and toy box cannot be continuous production, only bankruptcy or closure.
According to industry sources, only in Shenzhen, there are several large printingbusiness failures, such as large-scale printing enterprise in Shenzhen large-scale printing enterprise LAN-STAR art printing and printing of Hong Kong inParkway bankruptcy. A reluctance to disclose the names of the Shenzhen PrintingIndustry Association professional personage says, the current printing enterprisesin the Pearl River delta connected overseas Christmas gift packaging and printing the 6 to October business peak, the peak is over, believe that there will be a large number of printing enterprises are facing closure, downsizing or bankruptcy.
