Villagers Compensate For The Blockade Of Textile Mills Due To Resentment

According to the world clothing shoes and hats net, Hongkong

Pacific Textiles Holdings Limited (1381.HK)

The Holding Company Limited (hereinafter referred to as "mutual textile") issued a public announcement on Tuesday to give tenth explanations on the problem of blocking the entrance of Vietnamese factories.

Mutual textiles said that the road connecting the Vietnamese factory building was still blocked by villagers. According to the company, the villagers blocked the entrance road because they were dissatisfied with the land compensation for their land being reclaimed to build industrial park in the factory building.

Mutual textile says land compensation is a topic between local governments and villagers.

According to the announcement, mutual textile says local villagers do not welcome it.

Stationed because it is a polluting industry.

In December 2016, due to the mechanical failure of the pump in the sewage treatment plant of the workshop, the accident occurred in the leakage of the factory sewage to the industrial park.

However, the exchange of textiles said that the leakage of sewage did not flow into the river and any source of water in the village. The workshop knew the leakage message and immediately repaired the problem.

Government environmental officials have inspected factory buildings and are happy to see the solution.

Due to sewage leakage, the plant was ordered to suspend business for half a day and was fined $29600, and then returned to normal operation until the villagers blocked the plant entrance in April.

With the consent of the workshop, the Vietnamese government invited villagers to appoint representatives to inspect sewage treatment works with government officials.

However, the villagers have not appointed any representatives to the invitation so far.

Therefore, mutual textiles believes that sewage leakage accidents are not the main reason for blockage, and environmental concerns are only an excuse for villagers to ask for more land compensation.

Since April 2017, mutual textile has released 10 times the progress of blocking the entrance of Vietnam's factory gate. It was once close to solving, but it still needs observation.

On this issue, the 10 announcements were made in April 19, 2017, May 5, 2017, May 22, 2017, June 5, 2017, June 19, 2017, July 3, 2017, June 19, 2017, June 19, 2017, July 3, 2017, and July 3, 2017.

As a result of clogging, the factory sales order is now processed by the company's Panyu plant. In addition, the blockage has no significant impact on the company's operation.

However, mutual textiles also said that the above events had a significant financial impact on the public search. The company paid a monthly payment of about HK $6 million on the factory premises. Due to the cost of the incident, the company pferred the operation to Panyu to complete the sales order, and the company was faced with a claim from the customer for the delay in delivery.

In addition, a company customer may also make a claim for tax reduction due to the different export countries.

The total amount of customer claims is being negotiated, initially estimated at no more than US $10 million.

The company's customers include Calvin Klein, Maidenform, Victoria "s Secret", "Uniqlo" and other clothing giants, is a well-known supply chain enterprise.

In the 2017 fiscal year ended March 31, 2017, the company recorded HK $5 billion 993 million 600 thousand in revenue, down 13.5% from year to year, and sales decreased by 13% to 155 million 800 thousand pounds, while the average selling price fell 0.5% to 38.47 Hong Kong dollars. The annual profit fell by 11.9%, from 1 billion 122 million 700 thousand Hong Kong dollars to 9.892.

At the end of last month, mutual textiles had just completed the replacement of major shareholders, the largest shareholder of Far East Asia Limited, the only shareholder of Far East and the non-executive director of the company, Lin Huiyi and Ye Bingyan, signed an agreement with Dongli to sell 403394000 shares and 2000000 shares of mutual textiles to the famous Japanese textile technology enterprises Toray Industries, Inc. (Dongli) Co., Ltd. (hereinafter referred to as "Dongli"). The company has issued a total share capital of 28.03%, and the paction price is HK $10 / share, which is 11% higher than the suspended price 9.01 Hong Kong dollars, involving HK $4 billion 50 million, or about 59 billion yen.

The event of Vietnam textile workshop in Vietnam is another reflection of the recent risk of Chinese supply chain enterprises in Southeast Asian market. Before the beginning of February, Hangzhou Hundred-Tex Garment Myanmar (Company), Hangzhou Bai Yi garment and textile garments (Burma) Co., Ltd. (hereinafter referred to as Hangzhou 100 Arts Burma) was hit by Burma's former capital Yangon, and was temporarily closed due to workers seeking more benefits.

Hangzhou Bai Yi Burma company is mainly involved in labor disputes. This is also a collective problem currently encountered in key textile exporting countries such as Vietnam, Kampuchea, Burma and Bangladesh in Southeast Asia, which will have an impact on the capacity of Chinese enterprises.

In addition, regional political crises often have an impact on Chinese funded enterprises.

At the beginning of 2014, due to the South China Sea issue, Vietnam had violent Anti China incidents, resulting in the temporary closure of Vietnam's workshop of Li & Fung Ltd. 0494.HK (0494.HK) Li Feng limited, while Vietnam was the second largest purchasing country of Li Feng.

Despite the uncertainties, low labor costs still drive a large number of Chinese enterprises to Vietnam and other countries. Underwear maker Regina Miracle International Holdings (Limited) 2199.HK (2199.HK) Virginia International Holdings Limited, founder, chairman and chief executive of Hong Kong, said in the middle of 2, the company's future Vietnamese capacity will surpass that of mainland China.

He pointed out that there are currently 19000 and 13000 workers in China and Vietnam respectively, and the staff will be recruited as soon as possible. Currently, there are 700 people in Vietnam's second factory buildings, and the number is expected to increase to 6000. The construction of Vietnam's third and fourth plants will be built in June and December this year. In the future, there are nearly 4000 employees in Vietnam and Shenzhen factories. When Vietnam's four factories are put into operation at the end of the year, the capacity will be at least double that of Shenzhen.

The Chinese and Hong Kong invested overseas factories are experiencing labor problems. Recently, Fuyao Glass factory in the United States was also brought to court for industrial disputes.

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