A 31-year-old foreign trade factory in Shenzhen closed down and its employees we

外贸人

A 31-year-old foreign trade factory in Shenzhen closed down and its employees were laid off!

With the upgrading of market consumption and the intensification of trade competition, the old foreign trade factories that were once prosperous are now struggling. Recently, Shenzhen Weiqun Precision Machinery Products Development Co., Ltd. (hereinafter referred to as "Weiqun Machinery") officially stopped production and business on June 6, and all employees were laid off in advance, stopping the pace that had been 31 years. So far, this large factory that has witnessed the ups and downs of China's foreign trade for decades has officially withdrawn from the stage of history.

According to the content of the closing announcement, since the COVID-19 pandemic, the global economic recession has made the factory's operating difficulties increasingly serious. In order to maintain the livelihood of employees, it has been struggling to move forward, but it is difficult to continue today. After the decision of the company's board of directors, it will officially stop production and business on June 6, 2024, and all employees will be dismissed in advance.

Although it has decided to stop production and business, the factory did not directly close its stall. Instead, according to the requirements of the Chinese Labor Law, it made corresponding compensation to employees who have not reached the statutory retirement age, and paid different standards of average wages according to different lengths of service, giving everyone a decent final departure.

According to public information, Weiqun Machinery was established in 1993. It mainly produces and sells automobile machinery and parts, knives, craft products, and mechanical plastic products. Like most traditional foreign trade companies, Weiqun Machinery mainly operates in overseas markets, accounting for 100%, and has left a good product reputation around the world.

After the epidemic, overseas demand slowed down, but the production capacity of these traditional factories continued to increase, which led to oversupply, saturated market demand, and increasingly aggravated factory operating difficulties. In addition to Weiqun Machinery, Dongguan Weiya Electronics Co., Ltd. (hereinafter referred to as "Weiya Electronics") also announced the news of closing and liquidation at the end of May.

Weiya Electronics is a wholly-owned subsidiary of Hong Kong-based Weiya International Group Co., Ltd. Weiya International Group is mainly engaged in foreign trade export industry and has three factories in the mainland, two in Dongguan and one in Jiaxing, Zhejiang, but they have also been closed in recent years.

The recently closed Weiya Electronics is mainly engaged in the production and sales of various cables, plugs, and plastic products. Its products are hot-selling in overseas markets in Europe and the United States. At its peak, it had more than 1,500 employees. It is a pity that although the products are very resistant, they still cannot save the decline of the company.

Currently, China's manufacturing industry is in the pain period of transformation. While a number of low- and mid-end traditional foreign trade enterprises are being eliminated, another group of foreign trade factories are transferring production capacity to increase long-term export competitiveness.