Case Studies

Featured Case

Closure of a Chinese Manufacturing Plant

Key Takeaway:
Publicly traded, Western producer of complex electronic products needed to close its manufacturing operation in Beijing while offering uninterrupted service to their China/Asia Pacific customers.

Background:
The Chinese General Manager (GM) and Human Resources Director announced the plant closure, which resulted in an employee strike. The GM resigned from his position to take another job. Additionally, several senior level executives also threatened to quit.

Challenge:
The Company needed to support their China/Asia Pacific customers for 6-months during the closure period. It was imperative to with local government officials to facilitate a smooth transition. The closure process was projected to take 9 months.

Solution:
East West Associates (EWA) assumed leadership of the liquidation activities at the Beijing plant and placed an on-site GM with experience closing China-based companies. EWA created and executed a detailed Project Plan that included, but was not limited to the following:
  • Management of the liquidation process and formation of an on-the-ground Liquidation Team.
  • Oversight and management of the Chinese workforce.
  • Negotiation and Management of the facility’s existing process with the landlord and environmental agencies.
  • Liquidation of the equipment in the plant.
  • Management of the external Stakeholders at the facility (local Chinese officials, Labor Board and all regulatory agencies).
  • Facility Oversight to ensure product shipments made during the first 6 months of the Liquidation.
  • Manage Communication with all corporate personnel in the U.S. and China.
  • Negotiations with all Chinese governmental agencies.
  • Consistent updates on all aspects of the Liquidation process: costs, personnel, customers, suppliers, and Chinese governmental and regulatory agencies.
Result:
EWA was able to close a Chinese manufacturing plant within the necessary 10-month timeline, under budget, while successfully servicing their China/Asia Pacific customers.


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