119 industrial enterprises in Shenzhen are planning to move out of the city, involving a total industrial output value of 9 billion yuan (US$1.27), according to a research conducted by Shenzhen Bureau of Trade and Industry.
An arts and craft factory, which is owned by Boto Limits, a subsidiary of the Carlyle Group, was closed down. Many labor-intensive enterprises in the Pearl River Delta area are closing down due to recent increases in operation costs. The factory was one of the world's largest producers of artificial Christmas trees, once owning eighty percent of the world market share in the industry.
It is true that the arts and craft factory was closed at the beginning of this year although it has not been declared bankrupt. "Disadvantages such as fierce competition, the appreciation of the RMB, soaring prices of raw materials and labor costs have contributed to the factory's decline," said an insider of the Carlyle Group. The factory shut down in late December of 2007.
Fore more details, please read the full story in Chinese. (http://www.china-cbn.com/s/n/000002/20080313/000000090053.shtml)
(China.org.cn March 14, 2008)
