Source: CCTV.com

11-27-2008 11:39

A slowdown in global demand has dealt a severe blow to manufacturers in southern Guangdong Province. But companies are fighting back cutting costs by moving production to neighboring Hunan Province.

A slowdown in global demand has dealt a severe blow to  manufacturers in southern Guangdong Province. But  companies are fighting back cutting costs by moving  production to neighboring Hunan Province.

Hunan's Yongzhou city is a major destination for Guangdong shifting enterprises. A world-leading shoe manufacturing group has just opened a huge new factory here. It has the capacity to manufacture 2 million shoes every year, generating 20-million US dollars in exports.

Lin Zhimin, Director Yongzhou Xiewei Rubber Co., said, "Our factories used to be in coastal areas. We moved here because both the manufacturing and personnel costs can be lowered by 18 percent."

Hunan Province has made great improvements to its infrastructure in recent years. Better services have attracted over 30 enterprises from Guangdong to move their factories here this year, offering local residents 20-thousand new jobs.

Huang Tianxi, Party Chief Yongzhou City, said, "We don't accept all kinds of businesses. We've learnt from the past. We say no to heavy-polluting and energy-costly projects."

Yongzhou city's experience has generated interest from many places in Hunan Province looking to cash-in on the changing winds of the export business. Economic development here has helped the region gain over 2 billion US dollars of direct foreign investment this year alone.

 

Editor:Du Xiaodan