Closing China Operations? The Dangers & Challenges of Closing a Factory

WEBINAR:

Closing China Operations?

Dangers and Challenges of Closing a Factory in the Current China Environment

Closing china operations?

About The WEBINAR

Who Should Watch?

If you’re considering closing or relocating your China manufacturing operation, you’ll benefit hearing the experiences of those who have already done so.

Why Should You Watch?

To find new ideas & updated guidance to address avoidable problems when closing or downsizing a plant in China, and to ease the path of transferring your manufacturing assets & knowledge out of China.


Many C-level executives are closing their China manufacturing-for-export operations.  In the past 4 years alone, 100 MNCs have announced intentions to downsize or shutdown manufacturing in China.

Why?  Because when a US-owned company makes products in China then exports them, they’re facing more and more headwinds:

✓  Annual increases in labor and production costs

✓  A more challenging regulatory environment for US operations in China

✓  Continuing US /China tariffs that are expected to increase

✓  Geopolitical tensions between China and US

However, the process of closing China operations can threaten a company’s ability to properly serve its customers. If the plan is not carefully thought-through and not properly implemented, a plant closure can stress a company’s operational stability, strain supplier relationships, and risk one’s brand reputation around the world.

Given China’s economy, many manufacturing facilities are downsizing or closing.  As a result, concerned Chinese authorities are paying particular attention to the regulatory compliance of companies closing operations. Other dangers include:

      • Work stoppages and extended strikes
      • Violence to plant management and personnel
      • Damage to plant and equipment
      • IP and physical property theft

If carried out with thorough, highly detailed planning by a knowledgeable project team, executing the right plant closure plan will minimize the negative closure experience for all, and will produce lasting positive results for a company’s global operational stability, customer service, and financial performance.

Speakers answer registrants’ questions, including:

Our speakers presented real-life plant closure decisions and the results of those decisions, and illustrate key points using actual case histories.  Additionally, we addressed webinar attendee questions.

For example:

      • What dangers might our people and assets in China face when it becomes known that we might close? Is it true that sabotage, local riots, and personal injury threats can occur? How do we avoid THAT?
      • When should the company only notify the employees on the actual day of closing? When should the company notify the employees in advance of the plant closure?
      • What are some local & regional roadblocks that companies are seeing when closing a China facility?
      • Is the EWA Plant Closing Methodology tailored to closing US-owned plants in China without “burning our bridges” with China-based suppliers, contract manufacturers and customers.
      • What should our Risk Assessment Plan include? When should I engage protective security guards?
      • What HR practices should we follow to be fair to our employees in China and to safeguard our reputation there?  Are there PSB (Public Security Board) considerations?
      • Is it relatively easy to physically move the manufacturing equipment we own out of China? Are we likely to face barriers by the Chinese government?
      • What should a manufacturer do to help protect our IP and know-how when relocating out of China?
      • As we assess where to relocate, what important in-country factors & data should we be sure to compare to China?
Closing China Operations?

Speakers

This webinar features seasoned speakers with real-life experiences in closing over 70 China plant closures and relocations, and with sourcing both within China and within relocation target countries:

Li Xiao | Senior Operational and Commercial Director
    • General Manager, Argosy Aerospace Materials in Shanghai
    • General Manager Lancaster Consulting, Shanghai
    • Head of Marketing, Wipro Hydraulics
    Vicky Shao | Director, China
      • Vice President of Human Resources, Flexco Conveying Equipment Manufacturing Company
      • Human Resource Manager, Lombard Risk International Ltd.
      • Executive Department Human Resources & Administration, Nitto Denko Corp.
      Jay Hoenig | Director, East West Associates
        • Chief Operating Officer Asia Pacific, Hill & Associates Group
        • Asia Pacific Vice President & General Manager, Bechtel Corporation
        • Chairman of the American Chamber of Commerce in Shanghai
        Dan McLeod | Executive Advisor, East West Associates
          • Former Director Asia Pacific Operations. Ashland Specialty Ingredients (Shanghai)
          • Former Director of Manufacturing & Supply Chain for Hercules specialty chemicals
          Closing China Operations?

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          Relocating Out of China? Critical Considerations

          WEBINAR:

          Relocating Out of China?

          Critical Considerations for Transferring Technology

          Relocating Out of China

          About The WEBINAR


          Who Should Watch?

          Before actually moving forward, executives considering relocating their manufacturing operations out of China will benefit by attending.

          Why Should You Watch?

          You’ll hear ideas and guidance to avoid problems and smooth the path to transferring your manufacturing technology assets and knowledge out of China.


          Why are manufacturers relocating out of China? What are some critical considerations?

          After successfully establishing manufacturing and sourcing in China for the past 20+ years, many companies have relocated, or plan to relocate, all or part of their operations to another country. In the past 4 years alone, 100 MNCs have announced intentions to downsize or shutdown manufacturing in China.

          Companies are relocating their China-based operations to reduce labor costs, lessen tariff exposure, protect their IP, and move closer to customers. If you’re looking at doing so as well, you’ll need to be prepared for some new challenges.

          These include selecting the country that best fits your unique or not-so-unique operation, Make-vs-Buy decisions, restructuring costs, avoiding burned bridges in China, and successfully transferring your technology and intellectual property out of China.

          One of the most overlooked or under-appreciated challenges of relocation is transferring the know-how your company has developed in China over the years, whether it’s in-house or with key suppliers.

          In this webinar, East West Associates executives who have actually moved operations from China shared their experiences, learnings and insights that will help you avoid delays and costly hassles.

            Speakers answer registrants’ questions, including:

            1. Do you know for sure that your technology, product designs and know-how are adequately documented? 
            2. Is there a significant amount of know-how controlled by China suppliers, or by only your factory personnel currently living in China?
            3. Will you face difficulties or limitations by the Chinese government when physically moving hard assets including manufacturing machinery out of China?  
            4. Ability to access or transfer tooling and specialized equipment from your current supplier?
            5. What constraints might you encounter when transferring technical know-how documentation out of China? What about your information-laden laptops, desktops and hard drives during relocation?
            6. Is localizing procurement of raw materials and components in your target country a realistic option? Or will you continue to be reliant upon current suppliers in China?
            7. Will your manufacturing process allow you to meet “Country of Origin” requirements at the new location?
            8. How will you identify and qualify the right people to support your relocation project?
            9. Do you fully understand the cultural differences between the sending factory and a soon-to-be receiving factory?  How do you plan to manage those inevitable differences, which could be critical to your success?  These cultural differences could be between China and countries in Southeast Asia (Thailand, Vietnam, Philippines) as well as Mexico.
            10. What trade compliance and certifications are necessary to minimize tariffs and duties?
            11. What is the manufacturing “eco-system” in your target country?  Are you relocating to an area with a similar or complementary manufacturing base? Is there a qualified & affordable labor pool?  Will the government there be friendly and inviting, and offer incentives to new US-owned businesses?  
            12. Consider the importance of establishing a network of service providers at the new location:  legal, compliance, tax, accounting, advisory, maintenance services, HR services, et. al.
            13. Can East West Associates share a couple of real-life examples of how a US-owned, in-China operation was successfully relocated?
            Relocating Out of China

            Speakers

            Tze Beng Lim | Chief Technical Advisor, Honeywell UOP)
              • Lead technology transfer, qualification and management of contract manufacturers and tolling companies in China, India, and Southeast Asia for Ashland, Inc. 
              Dan McLeod | Executive Advisor, East West Associates
                • Former Director Asia Pacific Operations. Ashland Specialty Ingredients (Shanghai)
                • Former Director of Manufacturing & Supply Chain for Hercules specialty chemicals
                Relocating Out of China

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                Relocating Out of China

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                Thailand’s Incentives for US Automotive Manufacturers & Suppliers

                SEMINAR:

                Thailand’s Incentives for US Automotive Manufacturers and Suppliers

                Join Us Thursday, June 6, 2024

                Registration & Breakfast: 8AM EST
                Conference: 8:30AM – 10:30AM EST

                Event Location:

                BDO Detroit | 2600 W. Big Beaver Road, Suite 600, Troy, MI

                HOSTED BY:

                East West Associates LLC
                BDO
                Foley & Lardner LLP
                Thailand Board of Investment

                Thailand Incentives for U.S. Manufacturers and Suppliers:

                About The SEMINAR

                In an era where the global manufacturing landscape is rapidly evolving, automotive suppliers with operations in China face unique challenges and opportunities. As the US intensifies efforts to diversify supply chains away from China, Thailand emerges as a strategic alternative, offering compelling incentives and a skilled labor force.

                We cordially invite you to a roundtable discussion (with viewpoints from a variety of SMEs) that will delve into how Thailand can serve as an integral part of your diversification strategy, potentially enhancing your company’s resilience and profitability.

                This event promises to provide invaluable insights into the financial and operational benefits of relocating or expanding your manufacturing base to Thailand, amid the shifting dynamics of global trade and investment.

                Many U.S. companies are relocating manufacturing and sourcing to Thailand. Senior operational executives who’ve lived in Thailand, and Thailand Board of Investment officials will explain why, including:

                    • U.S. tariff exclusion
                    • 8-10 year Corporate Income Tax holidays
                    • Labor availability
                    • Low labor costs

                Manufacturing & Supply Chain Seminar Roundtable Discussion with Senior Executives


                Who Should Attend?

                Executive leaders from automotive-related manufacturing companies who are navigating manufacturing, sourcing, or profitability challenges in China or elsewhere, and are considering expansion or relocation to better serve global markets. This roundtable is a unique opportunity to gather critical insights and engage with seasoned professionals who have navigated the complexities of expanding into Thailand.


                Topics of discussion will include:

                    • Insights into the changing dynamics prompting U.S. companies to reassess their manufacturing strategies, driven by challenges such as U.S.-China trade tariffs, rising labor costs, and diminishing tax incentives in China.
                    • Learn about the financial and operational incentives Thailand offers, including U.S. tariff exclusions, significant Corporate Income Tax (CIT) holidays, and access to skilled, cost-effective labor.
                    • Key considerations before moving your manufacturing or supply base from China or other locations.
                    • Explore the rich history and current opportunities within Thailand’s vehicles and auto parts manufacturing sector, setting the stage for future growth.
                    • Learn about future infrastructure projects and investments in Thailand that promise to enhance manufacturing capacity and offer tangible benefits for companies looking to expand operations

                This discussion will feature insights from senior executives and government officials, including experts from the Thailand Board of Investment (BOI), Foley & Lardner LLP, BDO USA, and East West Associates (EWA). These speakers bring a wealth of experience and will share valuable perspectives on integrating Thailand into your manufacturing strategy.

                The BOI is the governmental agency responsible for direction, oversight, &approval if foreign investment incentives to locate to Thailand. EWA and the Thai BOI have worked together for years. EWA supports U.S. companies with evaluating Thailand and other attractive venues, and with establishing operations and sourcing capabilities in Southeast Asia and elsewhere. Hear how one U.S.-based company save US$27.5 million by relocating from China to Thailand.

                We look forward to your participation in and important and timely discussion on leveraging Thailand’s strategic advantages for your manufacturing and supply chain strategy.

                Thailand Incentives for U.S. Manufacturers and Suppliers:

                Speakers

                Nanthapol Sudbanthad | Director, Thailand Board of Investment
                  • Investment Consul of the Royal Thai Consulate-General of New York under the Thai Ministry of Foreign Affairs in the United States
                  Mark Plum | Director, East West Associates
                    • Former President Briggs & Stratton Asia (incl. Thailand)
                    Steve Blyth | Director, East West Associates Thailand
                      • Former senior executive for Volvo Cars
                      Alex Bryant | President, East West Associates
                        • Moderator
                        Ashley Hetrick | Principal, Sourcing & Supply Chain Segment Leader, Management Consulting, BDO USA
                          Ishan Shah | Partner, Tax & Legal, BDO in Thailand
                            Vanessa Miller | Partner, Foley & Lardner LLP
                              John Turlais | Of Counsel, Foley & Lardner LLP

                               

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                                Thailand Incentives for U.S. Manufacturers

                                SEMINAR:

                                Thailand Incentives for U.S. Manufacturers

                                Thailand Incentives for U.S. Manufacturers:

                                About The SEMINAR

                                Many U.S. companies are relocating manufacturing and sourcing to Thailand. Senior operational executives who’ve lived in Thailand, and Thailand Board of Investment officials will explain why, including:

                                  • U.S. tariff exclusion
                                  • 8-10 year C.I.T. holiday
                                  • Labor availability
                                  • Low labor costs

                                Join Us Thursday, May 30, 2024

                                Registration & Breakfast: 8AM CDT
                                Conference: 8:30AM – 10:30AM CDT

                                Event Location:

                                Dorsey & Whitney: 50 South 6th St., Minneapolis, MN  P: 612-340-2600

                                HOSTED BY:

                                Dorsey + Whitney LLP
                                Build What Matters in Minnesota
                                East West Associates LLC
                                Global Minnesota

                                Manufacturing & Supply Chain Seminar Roundtable Discussion with Senior Executives


                                Who Should Attend?

                                Executives of U.S. manufacturing companies:

                                      • Who face manufacturing, sourcing, or profit challenges in China
                                      • Who might benefit from expanding out of China to serve European and U.S. markets
                                      • In these industries: Automotive. Electronics. Medical devices & Medical technology. Automated manufacturing systems. Agribusinesses.

                                Why Companies Like Yours Are Attending

                                U.S. manufacturers are diversifying locations, especially beyond China. Thai government officials, along with U.S. legal and business executives with Thailand experience, will present why Thailand is becoming so attractive. The discussion, case histories, and answers to questions from fellow attendees will provide you with information and data to understand why companies land in Thailand as part of their manufacturing & supply chain strategy.


                                Speakers will aslo answer registrants’ questions, including:

                                  1. What are the recent effects of conditions on companies that produce in China and sell the majority of their productswithin China? Conversely, what are the effects on companies that produce in China and export the majority of their products outside of China?
                                  2. What strategies are companies employing to address the current China situation? How have these strategies affected countries in Southeast Asia?
                                  3. How do China’s and Thailand’s costs compare? Skilled labor costs? Labor availability? CIT? Land? Utility costs? Inflation? Lease rates? Building costs? Tariffs?
                                  4. Some companies may wish to relocate or establish a facility outside of China but continue to source their products (or components) from China (example: automotive parts and electronics manufacturers). How does the concept of “local content/local certificate of origin” affect this strategy?
                                  5. Could you talk about site selection factors in Thailand? Land; build to suit; lease existing facility, etc. Does Thailand allow for 100 % ownership by U.S. companies (including land)?
                                  6. For companies developing Thai suppliers of raw materials or component parts, what are the main challenges to identifying and qualifying Thai suppliers?  Transitioning from Chinese to Thai suppliers?
                                  7. What has been your experience transferring technology from China to Thailand?
                                  8. In addition to automotive and electronic suppliers, what other industry sectors does Thailand have a large number of manufacturers & suppliers?
                                  9. If a company relocates from China to Thailand, what are the challenges of closing their China manufacturing plant? Can you comment on closure considerations like severance and personnel? How does a company protect intellectual property and physical property? What about relationships with customers vendors, Labor Bureau, PSB, et. al.? Disposition of equipment? Duties on equipment relocated out of China to Thailand?
                                  10. What financial & operational incentives does the Thailand government provide U.S. companies to establish operations on leased or owned land?
                                Thailand Incentives for U.S. Manufacturers:

                                Speakers

                                Nanthapol Sudbanthad | Director, Thailand Board of Investment
                                  • Investment Incentives in Thailand
                                  Dave Townsend | Partner, Dorsey & Whitney LLP
                                    • Government Solutions and Investigations Practice Group.
                                    Alex Bryant | President, East West Associates
                                      • Moderator
                                      Chad Gauger | Vice President and General Manager, Scoular, Former Cargill Managing Director-Asia South (incl. Thailand)
                                        • Operational Considerations in Thailand
                                        Mark Plum | Director, East West Associates
                                          • Former President Briggs & Stratton Asia (incl. Thailand)
                                          Thailand Incentives for U.S. Manufacturers:

                                          REGISTER TODAY!

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                                          Mitigating Fraud & Corruption in China Operations

                                          WEBINAR:

                                          Mitigating Fraud & Corruption in China Operations:

                                          What are the best Corrective Actions and How can we address on-going risk?

                                          Mitigating Fraud and Corruption in China Operations:

                                          About The WEBINAR


                                          Who Should Attend?

                                          Executives of U.S. manufacturing companies:

                                                • U.S. & European executives with China-based operations, looking to prevent or remedy instances of fraud and corruption.

                                          Why Companies Like Yours Are Attending

                                          You’ll hear guidance to assess and address fraud and corruption that may exist right now within your China operations.  The financial and reputational risks to your people and your brand in China would not be limited locally, but could easily expand, damaging your reputation globally.


                                          Why Is This Webinar Important NOw?

                                            • Recently publicized risks to business travelers to China. 
                                            • A new, unpredictable business environment there. 
                                            • U.S./China political tensions.  Years of China COVID restrictions. 

                                          All these have made normal, prudent oversight of China operations difficult, to say the least.  Assessing your China operations and demonstrating support to your people there – in person – is important.  Not just to manage smooth and efficient operations, but also to identify and minimize instances of fraud and corruption.

                                          Association of Certified Fraud Examiners’ international research indicates that organizations lose 5% of revenue to fraud each year, and 84% of fraudsters display at least one behavioral red flag.  But frequent in-person travel to China remains a challenge. There you are, operating in China… with limited oversight. What could go wrong?

                                          In our webinar, seasoned executives with real-life manufacturing experience in China – and a skilled professional with deep forensic expertise in China – talk about how to mitigate risk in your China operations.

                                          Speakers answer registrants’ questions, including:

                                            1. How different is China today from the business-friendly environment pre-Covid?
                                            2. What are your forensic people in China actually finding?
                                            3. How well-founded are the recently publicized risks of travelling to China to oversee our operations?
                                            4. Are there “red flags” we can look for to infer fraud or corruption in our China operations without actually going there?
                                            5. What are the risks of doing nothing right now?  Is it possible recent geopolitical tensions will improve soon and I can resume visiting China more often?
                                            6. What are the risks of doing nothing right now?  Is it possible U.S. China relations will improve soon and I can resume visiting China more often?
                                            7. What can we do now if we suspect fraud, corruption or IP theft in our China operations?
                                            8. Does management and employee Fraud & Corruption Training really help?
                                            9. How effective is a formal whistleblower program?  Has it changed since Covid?
                                            10. I’ve got a guy who’s a real rainmaker for us in China, but I’m not absolutely sure about his integrity? What should I do?
                                            11. If I find a problem in China, is my degree of risk limited to within China?
                                            12. If I decide to sell my China operation and move production elsewhere, how concerned about this topic do I need to be?
                                            13. What is the real-life challenges when implementing a new operational strategy or conducting forensic accounting after the ‘dust has settled, and any unhealthy employees terminated?
                                            14. Can you describe some real-life case studies of fraud& corruption in China that you can share?
                                          Mitigating Fraud and Corruption in China Operations:

                                          Speakers

                                          DR. TIM KLATTE | Partner, GRANT THORNTON, CERTIFIED FRAUD EXAMINER (CFE), CERTIFIED FORENSIC INTERVIEWER (CFI)
                                            • Leader of the Forensic Advisory Practice in Shanghai
                                            • Advises clients on complicated compliance investigations and effective ethics programs 
                                            Warren Clark | Partner, Grant Thornton, Audit Partner and LEader of National China Business Group
                                              • Specialized in auditing and U.S. based companies with operations in China, foreign private issuers, and  companies going public in the U.S.
                                              • Lived and worked in greater China for more than 18 years
                                              LI XIAO | OPERATIONS MANAGER, EAST WEST ASSOCIATES, CHINA
                                                • Former China General Manager for US construction materials manufacturer

                                                • Former China Director hired to turnaround business and manufacturing plants for US electric motor manufacturer
                                                Dan McLeod | Executive Advisor, East West Associates
                                                  • Former Director Asia Pacific Operations. Ashland Specialty Ingredients (Shanghai)
                                                  • Former Director of Manufacturing & Supply Chain for Hercules specialty chemicals
                                                  Mitigating Fraud and Corruption in China Operations:

                                                  WATCH VIDEO

                                                  Mitigating Fraud and Corruption in China Operations:

                                                  Presentation

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