Sunday, November 16, 2008

The crisis affected the China Toy Factory bankrupt

Beijing - Manufacturers of toys in China to export its products to the United States such as Mattel and Disney have to close the factory due to the global financial crisis.

"The reason why we close the factory because of our market share depends on the U.S.. Where the current U.S. economy anjlok middle," said one officer from the Human Resources Division of the Smart Union, Xu Xiaofang, such as the BBC This Friday (12/10/2008).

Employee salary increases, the price of raw materials, and the appreciation China's currency also contributed to the problem.

Smart Union announced the loss of up to USD25, 9 million in the first semester of this year. This is based on changes in shares of Hong Kong. This condition does not give clarity whether or temporarily stop production factories should close.

A newspaper in China said that the Smart Union has been selling products to the U.S., such as Mattel and Disney products.

"After the losers in the mid-year, the flow of money to be stagnating. The workers become the victims of this global financial tsunami," said the newspaper.

At this weekend newspapers in China reported that most of the exporters of toys losers due to the increase in the price of production, strengthening the yuan, and increased safety standards for toy products.

Some 3,631 or 52.7 percent of the company's toy manufacturer has come out of this business in the first seven months of 2008.

China is the country's largest exporter and manufacturer of toys. Based on customs data in China, the country is to send as much 17 billion toy to a number of countries in 2007