When you come to China, look for suppliers for ceramic tile , you will notice the New Zhongyuan Ceramic and New Pearl Ceramic. The largest ceramic manufactory in China. They have the biggest booth in the Canton fair every year, they have more than 100 production lines, more than 3 production bases in China….
But now there is so many rumors around these two big factories.In July and September, New pearl ceramic altogether stop around 30 production lines for tiles, 1800 to 2000 workers were requested to have a ” holiday “. During the “holiday”, New Pearl Ceramic pay USD113 per month, and just request the workers punch the time clock everyday, then can go back home. But the workers don’t satisfy it. They gather and block the traffic in factory. And that news is reported by the local news paper. In the following date, so many rumors around New pearl ceramic.. Some said Mr Yedelin, the boss of New Pearl ceramic lose 44 million US dollar gambling in Macao, Some said New Pearl ceramic extend the payment terms for the raw material supplier. Some said Mr Yedelin have already transfer property to another company…. It seem New pearl ceramic will be bankrupt..
For New Zhongyuan ceramic, there is always around bankrupt news since 2000. But till now, it is still there. Maybe it is because they sold in a very very cheap price before. But they raise the price, stop production for the cheapest series. They would rather stop kilns if customers reject the new price. But just last week, one of my friends said the government agree the bankruptcy protection for New Zhongyuan Ceramic, he had already seen the official documents. It sounded true…
Sometimes we can not clarify the information true or not. But one thing we can confirm that there is a big difficulty during the financial crisis for the ceramic manufactory in China. Since Auguest 2008, Foshan area have stop at least 1/4 production line, 23 factories have been bankrupt till December. In the following dates, there will be more. As we know, Foshan share 40% production for tiles in China, 25% in the world. It produce 1600 million SQM per year.From Foshan you can tell what a bad situation we are going on in China. Our friends always make jokes that China is famous in ” Made In China” before, now is famous in “Bankrupt In China”
But, these two factories will not bankrupt. because they are strong enough. Even when they meet the worst situation, our government will stand up to support them. You know, our government is rather rich. They will not let so many workers lose their jobs.
In the end of the year, everyday we hear some “big news”. Like a idiom in China, rumors stop in the wise. How to pass the cold winter that really need these two factories’ s wise.
Vito Zhang
http://www.articlesbase.com/business-articles/will-quotbankrupt-in-chinaquot-come-true-for-the-ceramic-manufactory-in-china-688494.html
