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Article: South China plastics firms eye modernization.

Article from:
Plastics News
Article date:
September 29, 2008
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Byline: Steve Toloken

Hong Kong's Yee Kueng Industrial Co. Ltd. is like a lot of midsized South China manufacturing operations. The last year has been tough for the 500-employee injection molder and mold maker, with rising costs, new labor regulations and China's rising currency taking a big bite.

By some estimates, thousands of factories in the Pearl River Delta manufacturing area between Guangzhou and Hong Kong have closed down, as China kicked in tough new tax and labor laws designed to push local industry to modernize.

"It affects our profit margins a lot,'' said Winnie Ho, director of project management for YKI, which has a factory in ...

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