Chinese Factories At Halt By Govn.

[SueDi]

The factory i use to manufacture my goods has halted any production due to the Chinese government halting all production by factories in the Northern regions due to pollution levels.

Has this happened to anyone else and if so, what were your contingency plans?

 

[Mr D]

Did they say how long the halt was for?
I know there has been talk for a few years about pollution, government not quite cracking down like UK would.

 

[SueDi]

Apparently until the 15th Sept. Not ideal as we have orders to fulfil, naturally, so just wondered if others have experienced this as I've not heard of this before.

 

[MOIC]

Yes, the government have ordered many factories, not only in North China, to halt production, due to pollution levels. This is especially true in metal fabrication, electroplating, fabric dyeing and many other trades that use chemicals as part of the manufacture or finishing processes.

These restrictions all have a knock on affect within the supply chain for the final product.

The time limits are open ended and do not have an "end date", until the government lifts the ban, which could be a month, a year or even closing a manufacturing plant (or thousands) down completely.

Different areas in China will have different limits imposed, so the option is to find alternative suppliers in a different area, which is easier said than done.

China (believe it or not) are very pro active when it comes to cutting down pollution levels. Heavy fines are imposed on factories, or are closed down for non compliance.

This has been in effect for the past 18 months and is spreading to many trades.

Some suppliers will not tell you the whole truth for fear you will cancel and move to find alternative suppliers.

 

[Mr D]

While I'm sure some of the manufacturing people elsewhere may cheer if China isn't producing the knock on effect could be considerable.
We forget how much Chinese factories actually supply.

I'm checking this evening regarding a prototype I'm having made up. Not in China.
Part of the process does involve imported stuff. From China.

 

[Maple Sourcing]

One supplier of mine, a wooden factory located in 150 km from Beijing was halted for a week, as it's a part for the main product, the ready date was delayed for a week.

For some industries such as cast iron, you do not have choice, only the province Hebei can make, but the province is not far away from Beijing and is suffering from heavy pollution.

Many factories have to install pollution control facility to survive from government audit, some small factories will have to shut down. So, in overall, the supply will be tighter and cost will be higher.

Along with time, there will be new balance. China will still remain as the No. 1 manufacturing source for most of products at least for the next 20 years.

 

[SueDi]

Well we mostly go to China for price right? So its a case of just shut up and put up or find another factory to produce for you. I have textiles produced for me so can see this sort of thing happening a lot within my industry. How very frustrating.

 

[Sophia Liang]

Yes.A bad news for some factories in China ,but also chances for some factories.

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