High Oil Prices Make The Guangdong Toy Orders Dropped Three Percent Business Corporate Failures

8 17 , the world market oil prices surged to 66.50 U.S

. dollars a barrel. Relations with the group runner-up in Guangzhou Jetta director's words, oil prices just for the toy industry is a "step in a Sac." Industry and even rumors, toy manufacturers in the Pearl River Delta "survival" of the moment, some small and medium businesses shuttered toy. However, the Guangdong Toy Association, said 17 people, although there is no specific statistics, but the toy business because of rising raw material costs can not afford to close it was just a case by case. Previously, there were data that is because high oil prices, three percent in Guangdong toy companies have failed.

Toy companies fall oil prices Guangzhou Jetta Group is the world's largest toy factory. The group head off the runner-up has been plagued by shortage of oil problems, but the way the world oil price rise so that he can not relax the strained nerves. "World oil prices today price of 66.5 U.S. dollars per barrel, then rose a bit," Kwan said this when runner-up is at 4:00 p.m. on the on the 17th or so. Off runner-up still a little lucky, because the Jetta set Group buy Buy oil products futures, the current impact is not obvious, but substantial losses estimated at 1,2 months may still be seen out. "Large group of anti- Risk Ability is always a little stronger, but the products will definitely decrease the profit. We are only holding on by their own strength in the past, "off runner-up recognition, may be many small and medium enterprises can not afford toys, this devastated the.

"International oil prices 50 dollars per barrel, which is plastic toy enterprises should be a limit. Last October had already exceeded 50 dollars", the Guangdong Toy Association, said the people of Guangdong Province is the main export of plastic toys and the plastic is a petroleum byproduct, so oil prices, the toy industry's raw material costs will naturally see.

The trade rumors, toy manufacturers in the Pearl River Delta "survival" of the moment, some small toy company shuttered.

Gongbei from Zhuhai Customs Statistics show that, despite the Guangdong toy exports this year showed a slight increase of the situation, it is not optimistic the Guangdong toy exports, one of the reasons is the toy drive up the cost of raw materials to increase the enthusiasm of the enterprise export setback. As the international crude oil, steel and plastic prices have been rising, leading to rising raw material prices toys, toy manufacturers export costs increased dramatically.

Toy manufacturers simply do not take orders

"PRD most toy companies are processing, and as raw material costs continue to rise, many businesses have not received orders," and the people of Guangdong Toy Industry Association, said despite the international market, the demand for toys is still increased from the first half of this increase in the Guangdong toy exports can be seen. However, because raw material prices, market Competition Intense, and the manufacturers generally can not increase the order price or export price, manufacturers have to avoid loss-making business, it simply temporarily not accepting orders. Hong Kong-owned factories in Dongguan City

toy manufacturers, said David Chiu, to his factory in Dongguan, for example, had 20 sets of plastic "beer machine", the present, only three units are still Operation , The number of workers from more than 300 people, dozens of people to the present. He added that now some of the industry profit from the original into a loss bullet, if the situation does not turn, or there will be individual with the closure of the crisis facing the industry; As part of the same industry as the strain of the crisis, has been outsourced to other provinces (such as Hunan etc.) responsible for the manufacturers hope to reduce raw material costs offset the additional spending.

High oil prices, many toy companies, said rising oil prices affect the cost of production rose by 7 to 8 percent, if the situation persists, manufacturers may reduce the expected orders 5 percent.

High value-added development or impact can be reduced

Suggested Guangdong Toy Association Guangdong toy companies should step up development of new products, improve production levels and reduce raw material consumption. At the same time, in order to reduce the impact of rising oil prices, manufacturers will turn to develop the design to use less plastic toys, and research and development of high value-added products.

Chenghai head of a toy factory, said Mr. Chen, in response to rising oil prices, take a strip cut costs to reduce traffic, administrative and communication expenses, may Layoffs . Meanwhile, the adjustment of product structure, the company's response is one of the ways to improve products not associated with the proportion of oil.

Manufacturers have pointed out that the sharp price increases of raw materials such as plastic, of course, impact on the toy factory, but due to the different types of products, so the impact is not one. He pointed out that some low-value-added and low-cost toys hardest hit, because they both have to face the pressure of raw material prices, but also to meet with industry, especially manufacturers of low pressure over customers and their own space without bargaining large, so profits will continue to be eroded.

by: gaga

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