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
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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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