Advertisement
China economy
EconomyChina Economy

In China’s manufacturing hub of Dongguan, a sock maker struggles to keep his factory from folding

  • Supply chain disruptions in the pandemic have forced many Guangdong manufacturers to close their doors, while workers are left to wait and hope
  • Factory owner hopes one of his five daughters can bring him a son-in-law to help keep the business afloat

Reading Time:4 minutes
Why you can trust SCMP
The factory gates at Staryee Knitting remain close as business has come to a standstill in the Fenggang town of Dongguan, one of China’s biggest manufacturing hubs, just across the border from Hong Kong. Photo: He Huifeng
He Huifeng
After nearly three decades, Lin Danru, 54, fears that his sock factory’s days are numbered. Export orders have dried up amid the coronavirus pandemic. Domestic sales have plunged. And frankly, none of his five daughters want anything to do with the antiquated manufacturing business model.
Advertisement
The warehouse of his factory, Staryee Knitting, in the manufacturing hub of Dongguan in southern China’s Pearl River Delta, is full of boxes upon boxes of unsold socks. Lin estimates 4 million unsold pairs are in his inventory.

His production lines are idle, without a single worker in sight – about 30 were furloughed, but he pays them each 1,700 yuan (US$243) a month in case there is a sudden turnaround in his business and he needs to call them back quickly.

“The factory survived the severe acute respiratory syndrome (Sars) outbreak in 2003, the global financial crisis in 2008, and the trade war with the US … but I am afraid it can’t survive 2020,” Lin lamented. “I haven’t received a single call from the exporting traders in Hong Kong since February, and daily sales at my 40 stores have dropped to an average of 600 yuan from [about] 2,000 yuan.”

With no new orders and 4 million pairs of unsold socks in his inventory, Lin Danru’s factory in Dongguan, Guangdong province, has gone quiet. Photo: He Huifeng
With no new orders and 4 million pairs of unsold socks in his inventory, Lin Danru’s factory in Dongguan, Guangdong province, has gone quiet. Photo: He Huifeng
Advertisement

From 2018-19, Lin had more than 50 employees working in two shifts, with an annual output of around 5 million socks. Roughly a third were exported, and the rest were sold as his 40 retail locations across Guangdong province.

Advertisement