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?

          Presentation

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          Operational & Commercial Performance: Investigation and Correction of Employee Trade Secrets Theft

          RISK MANAGEMENT:

          INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

          RISK MANAGEMENT: INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

          BACKGROUND

            • A manufacturer of specialty chemicals had lost 70% of company customer base due to TS theft
            • The previous Operations Director in China had removed electronic drawings and other IP over a 2-year period, set up a competing company and bribed the purchasing managers to move their purchases to his new company.
            • EWA was engaged to investigate the claim and develop counter-actions
          RISK MANAGEMENT: INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

          APPROACH

          RISK IDENTIFICATION

            • Investigation and confirmation of the existence of the new company and the individual’s equity ownership
            • EWA obtained product samples and verified a trademark violation

          Risk Mitigation

            • Recruitment of local Chinese attorneys and the filing of a legal claim against both the company and the individual
            • The competitive office, workforce, sub-contractors and customer base visitors were investigated
            • EWA contacted the client’s original customer base to inform them of the various illegal actions and acts of corporate espionage
            • Legal proceedings cannot be disclosed due to confidentiality restrictions
          Step 3

          Long-Term Risk Prevention

            • Development of a comprehensive asset protection program
          RISK MANAGEMENT: INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

          RESULTS

            • 75% of the lost customer base returned to the client within 7 months
            • No new acts of corporate espionage or theft
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