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Chinese contract manufacturers pinched in recession


08:14, August 30, 2012

HEFEI, Aug. 29 (Xinhua) -- Chinese contract manufacturers are feeling the pain of dwindling orders as many of their clients withdraw production plans amid the global economic slowdown or move to southeast Asia in search of lower costs.

Adidas, the world's second-largest sportswear maker, was reported to have ended cooperation with some contract manufacturers in China this month after announcing that it would move its only Chinese factory to southeast Asia last month.

"We're still producing for Adidas," said a company executive of Tongling Donglong Huadong Garments Co. Ltd. in east China's Anhui Province. "But the batch of 190,000 products is the last order it placed with us."

Donglong Huadong is the epitome of many low-cost exporters in China.

In Suncun Township in the city of Wuhu, Anhui, one of the top garments manufacturing center in China, many small companies likewise face bleak prospects.

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