Hong Kong-owned electronics factory shuts down in Shenzhen and lays off workers as economic downturn bites

A Hong Kong-owned electronics company has closed a decades-old factory in Shenzhen, throwing hundreds of workers out of work, as China’s economic downturn and export weakness continue to erode the country’s manufacturing base, according to local media reports and an employee.

Xin An Electrical (Shenzhen) Co, which has a factory in the Bao’an District of Shenzhen, told workers that it will cease operations on Friday due to a deteriorating business situation, lower orders after the Covid-19 pandemic and the global economic downturn, according to a notice published by local Chinese media.

According to the notice, Xin An Electrical said that it will pay employees compensation in accordance with the country’s labour laws.

An employee at the factory, who answered a phone call from the Post on Thursday but declined to give their name, said that the notice was authentic.

The small manufacturer has been downsizing in the last two years, and according to China Business News, it currently has over 900 workers. Its Hong Kong-based owner, Simatelex, did not immediately reply to a request for comment.