Is Mexico an option for moving your US operations?

WEBINAR:

Is Mexico an option for moving your US operations?

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:

Dan McLeod, Director, East West Associates
    Jacob Miller, East West Associates
      Closing China Operations?

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      Closing China Operations?

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      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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              Closing China Operations?

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              GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

              GLOBAL FOOTPRINT SERVICES:

              PLANT CLOSURE

              GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

              BACKGROUND

              As part of a global restructuring of business units, a multinational chemical company was closing one of their Chinese production facilities. EWA engaged as Project Leader with responsibility for closure implementation.

              GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

              APPROACH

              Six months prior to plant closure

                • Closure strategy (budget, timing, expenditures, government relations, etc.)
                • Defined implementation team (Operations, HR, Legal, Security, IT, etc.)
                • Development of communication plans (staff, government, external, etc.)
                • Security risk assessment (employee unrest, physical & IP assets theft, etc.)

              Three months prior to plant closure

                • Implementation of operational and protective security measures
                • Finalized equipment & inventory disposition, decommissioning plant, etc.
                • External stakeholder negotiations (governmental agencies, landlord, etc.)
                • Obtain approvals from business zone, governmental authorities, etc.
                • Identification of compliance and payment issues, severance packages
              Step 3

              Upon plant closure and after

                • Finalization of equipment disposition and plant demobilization
                • Filing government documentation in keeping with the registration, business license, board resolutions
                • Filing of all necessary financials, bank accounts, tax, VAT rebates, registered capital and customs documentation
                • Competition of all de-registration and governmental documentation and plant turnover to the landlord
              GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

              RESULTS

                • No theft of IP assets, physical violence or governmental authority repercussions
                • 100% of employees signed employment forms
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