Advertisement
Chinese headphone maker in Dongguan shuts down, intensifying country’s woes in manufacturing, cross-border e-commerce
- Dongguan Koppo Electronics Co has decided to cease operations partly because of delayed payments by cross-border e-commerce merchants
- The Bluetooth headphone maker, which has been in business for 12 years, is expected to lay off 100 workers
Reading Time:3 minutes
Why you can trust SCMP
1
A major Bluetooth headphone maker, Dongguan Koppo Electronics Co, has decided to shut down for good and dismiss all its workers, becoming the latest casualty of the economic headwinds, supply chain disruptions and trading woes that have hit China’s manufacturing heartland.
Advertisement
Koppo Electronics, which has operated its factory in the city of Dongguan in southern Guangdong province for 12 years, said it was ceasing operations partly because “a number of cross-border e-commerce clients have failed to make due payments”, according to a notice seen by the Post.
“Since the outbreak of the Covid-19 pandemic, global economic and trade flows have seen unprecedented disruptions,” the notice said. “The company has been hit by delayed payments by a number of cross-border merchants, and a huge amount of finished goods are stockpiling in the warehouse.”
Koppo Electronics is expected to lay off 100 workers, according to a report on Wednesday by Chinese digital media Jiemian News. At its peak, the company had more than 1,000 workers and produced about 400,000 headphones a month.
“The company has been making losses in recent years and it’s difficult to continue the operation,” the notice said. “The sudden outbreak of [the Ukraine] war has dealt another heavy blow to the company’s business and the market situation is just grim.”
Advertisement
Phone calls to Koppo Electronics went unanswered on Wednesday.
Advertisement