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What caused the discontinued production of leading enterprises in this industry?
On February 27th, the reporter learned from the interview with the company that there were three factors in this production suspension: the “plastic limit order†made the non-environmentally friendly plastic bags have no market; the implementation of the new “Labor Contract Law†increased the labor cost; Family-run companies have also had an impact on them.
20,000 employees were notified of “a holidayâ€
“Before I left the factory, the workers who came out of the factory could block the crossroads full, cycling, walking, like the fairs. The business was a terrible fire on the road. Now, the streets are empty.†An employee of Luohe Huaqiang Plastic Co., Ltd. told reporters.
Some old workers recalled that in the past, the machinery in the factory had never stopped, and the workers were divided into three classes of early, middle, and late classes. Now the machine stopped, and the factory said that it would take a few days to cut production. The reporter learned that employees of Yuanping Huaqiang Plastic Co., Ltd., who is located in Zhumadian, also received notice of “a holidayâ€. Up to now, Huaqiang's more than 20,000 employees have left the company.
On February 27th, the reporter saw notices affixing transfer equipment at the factory gate of Luohe Huaqiang. “1600 blown film machines, more than 1,000 bag making machines, etc. were all transferredâ€. At the same time, information on the overall transfer of Luohe Huaqiang and Zhangping Huaqiang has also appeared on the Internet. The “post-tax†transfer price is tentatively set at 280-350 million yuan, and the transfer period is valid until November 12, 2008.
Three factors have led to the suspension of production. It is reported that Fuping Huaqiang Plastic Co., Ltd. is a private enterprise specializing in the production of various kinds of plastic bags. Before the "plastic limit order" was issued, the company had been making a good profit, and it was also a large local taxation. Fuping Huaqiang and Luohe Huaqiang (second branch factory and third branch factory) are all companies invested by Guangzhou Nanqiang Plastics Co., Ltd. (one branch factory) in Henan. It is reported that the market share of its products in the country reached 50%, and some provinces and cities reached 70%. According to a staff member of the company, "90% of our company's products are among the country's restrictions. With the approaching of the country's 'plastic limit order', only production has been suspended." Actually as early as last July and August, Huaqiang. Plastics hoped to be transferred as a whole. After the “plastic limit order†was issued, Huaqiang Plastic finally decided to stop production and liquidation. However, according to the reporter's understanding, the transfer has not yet been successful. The relevant staff of Fuping Company told the reporter that the equipment of Fuping Plant is not currently sold or transferred, and the equipment transfer of Luohe Company is the first.
The cost of labor for enterprises has increased. The newly implemented "Labor Contract Law" stipulates that if the laborer satisfies "the employer has been working continuously for ten years", he can conclude an "unfixed-term labor contract" with the employer and become a permanent employee.
Huaqiang is a labor-intensive enterprise with more than 20,000 employees. According to this regulation, nearly 2,000 employees will become permanent employees of Huaqiang. With this alone, Huaqiang will spend more than 10 million yuan each year. In addition, according to the new law, after signing labor contracts with employees, companies will pay for social security such as pensions, medical care, unemployment, etc. These fees are a significant amount for Huaqiang.
In addition to the above two reasons, there is the fact that the production of plastic bags is not too high technical content, there is a set of machines to start, which led to the production of a lot of family workshop-style enterprises, and brought the impact of sales of Huaqiang products.
Non-environmentally-friendly plastic bag companies are facing a transformation In response to the situation in which the “big boss†of domestic plastic bags stopped production and liquidation, the reporter interviewed a number of industry experts and industry peers. Some people in charge of plastic bag manufacturing companies said that there is a saying in the "plastic limit order" that "can not be provided to consumers free of charge." This shows that as long as reasonable fees are charged, non-environmental plastic bags still have a market. But at the same time, they also stated that companies must make a positive transition in order to survive. According to the reporter's understanding, at present most enterprises are actively transforming, and many companies have targeted environmentally-friendly biodegradable plastic products. A plastics expert stated that environmental-friendly plastic bags will be a trend. This is a fact that no one can deny. Through transformation and upgrading, plastic bag manufacturers can still have a great deal in the environment-friendly plastic bag market.
However, experts in the industry emphasized that after the implementation of the “plastic limit orderâ€, it will eventually have a huge impact on the industry. For example, raw material suppliers upstream of plastic bags will surely face a bearish situation at present and in the near future; the laid-off workers of plastic bag companies will cease production. Relocation issues, etc., need to be considered in advance.
"Limiting Plastic Order" Forces Many Plastic Enterprises to Transform into Environment
As a plastic bag manufacturing enterprise with an annual production value of 2.2 billion yuan and a business scale of 11 years in a row, Huaqiang Plastics Co., Ltd. (including Luohe Huaqiang Plastic Co., Ltd.) in Suiping County, Henan Province has suddenly announced the , And hang out the announcement of the transfer.