BEIJING, Oct 18 (Reuters) - Hong Kong-listed home appliance maker BEP International Holdings will shut its south China plant on Monday after racking up huge losses stemming from declining exports, Xinhua news agency reported on Saturday.
The export-oriented company's closure of its plant in the southern Chinese city of Shenzhen would affect 1,500 workers, Xinhua said, citing an unnamed company spokesman.
'The company was currently paying arrears to its 1,500 workers. Some had found employment with other factories in the southern Hong Kong border city,' the agency said.
Calls to the company's Hong Kong office on Saturday went unanswered.
The report did not provide other details or say whether the company faced liquidation.
The company posted a loss of nearly 36 million Hong Kong dollars ($4.64 million) in 2007/2008, according to its annual report, which cited rising costs and supply chain weakness across the whole industry.
Factories in the once-booming southern Chinese province of Guangdong have suffered over the past year and a half from tight curbs on loans, rising labour costs and China's stronger currency, which makes their product more expensive.
On Friday, Hong Kong-listed Smart Union Group, one of the areas largest toymakers and a supplier to U.S. toy company Mattel, said provisional liquidators had been appointed after state media reported that two factories subcontracting to the firm shut their doors, affecting 6,500 workers.
(Reporting by Ian Ransom; Editing by Swaha Pattanaik) ($1=7.753 Hong Kong Dollar) Keywords: CHINA BEP/ tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The export-oriented company's closure of its plant in the southern Chinese city of Shenzhen would affect 1,500 workers, Xinhua said, citing an unnamed company spokesman.
'The company was currently paying arrears to its 1,500 workers. Some had found employment with other factories in the southern Hong Kong border city,' the agency said.
Calls to the company's Hong Kong office on Saturday went unanswered.
The report did not provide other details or say whether the company faced liquidation.
The company posted a loss of nearly 36 million Hong Kong dollars ($4.64 million) in 2007/2008, according to its annual report, which cited rising costs and supply chain weakness across the whole industry.
Factories in the once-booming southern Chinese province of Guangdong have suffered over the past year and a half from tight curbs on loans, rising labour costs and China's stronger currency, which makes their product more expensive.
On Friday, Hong Kong-listed Smart Union Group, one of the areas largest toymakers and a supplier to U.S. toy company Mattel, said provisional liquidators had been appointed after state media reported that two factories subcontracting to the firm shut their doors, affecting 6,500 workers.
(Reporting by Ian Ransom; Editing by Swaha Pattanaik) ($1=7.753 Hong Kong Dollar) Keywords: CHINA BEP/ tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.