HK footwear manufacturer to relocate manufacturing base from China

  •  Hong Kong S.A.R.
  •  Oct 12, 2019
  •  By WFB Bureau
  • 1949 Views
HK footwear manufacturer to relocate manufacturing base from China

Hong-Kong based footwear manufacturer Yue Yuen is mulling upon shifting its manufacturing base located in China to other Southeast Asia countries amidst the ongoing US-China trade war. 

Recent confirmation of imposition of additional 10 per cent tariff on apparel and footwear from September 1 has further strengthened the management’s idea of relocation.

Chu Chin Lu, the Chairman of the Group said in the half year review meeting, “The group will continue to migrate its manufacturing capacity from the PRC to Southeast Asia, while being mindful of the labour supply situation in countries where we operate, especially in Vietnam.”

Concerned over the uncertainty of the future trade situation and policies between the two countries has led the footwear manufacturer to take this decision. It is pertinent to mention here that President Trump imposed 10 pe cent additional tariffs on US $ 300 billion worth exports from China.

The company reported revenue worth US $ 5.07 billion in the first half of the current financial year, registering an increase of 6.3 per cent compared to previous year. It manufactured 163.2 million pairs of shoes in the review period to June 30, up by 2.7 per cent year on year. Vietnam accounted for 45 per cent of Yue Yuen’s shipments in the first half of this year, Indonesia for 38 per cent and mainland China for 13 per cent.

Image Source: https://cdn.i-scmp.com

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