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Rumor: Flextronics to Shut Down Changzhou Factory

21st Century Business Herald, 8/04/09

An assistant director of human resources at Flextronics International has stated that the electronics manufacturer's plant in Changzhou, Jiangsu province, is set to close. Currently, 60% of the factory's orders are from mainland China, with 40% coming from overseas.

Chen Baosheng, managing director of the Changzhou plant, said that the company will very likely merge operations at the Changzhou plant with Flextronics's operations in Shanghai. Flextronics' local Changzhou suppliers will also probably absorb some of Flextronics's employees. Flextronics currently employs nearly 2,000 people at its Changzhou plant.

A spokesperson at the public relations department in Malaysia for the Singaporean outsourced design and electronics manufacturing service provider was "unable to comment" on the matter.

An official at the Changzhou Foreign Trade & Economic Cooperation Bureau has stated that, "since the beginning of the financial crisis last year, sales for this company began to worsen noticeably as orders dropped off rather sharply, and layoffs began in the second half of the year." The official also revealed that earlier this year, Flextronics' Changzhou plant even submitted an application for capital reduction to the Changzhou municipal government.

Other sources have revealed that Flextronics's plant in nearby Nanjing also faces the possibility of closure in the near future, in which case operations would be merged with the firm's plant in Suzhou. However, Flextronics general manager Yang Qiaoyuan has denied this rumor.

Keywords: hardware Flextronics HR M&A production facility contract manufacturer electronics

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