A PCB Factory in Huizhou Announce Close

In the past year of 2019, we've heard factories bankcrupt from time to time. Several days ago, a news said, one PCB factory in Huizhou announce business close due to inproper management.

Message on the notice

We are regret to let you know, our company is closing due to inproper business management. Employees who wish to settle the salary (terminate contract), we will pay relevant salary before 27th, November. Employees who ask for compensation, we promise to do so, but the company now is short of money, so the compensation will be paid by local government after they have sold our equipment by auction.

This PCB factory focus on the production of high mix, low volume PCB, its products are mainly used in telecommunication, consumer electronics, medicel devices, millitary and defense. Their PCBs include 2-30 layers rigid PCB, blind and buried PCB, metal core PCB.

Several employees from the company posted online "the notice tells salary will be paid before 27th, Nov but they did NOT, today is 28th and we do not have the money."

While we can see in the notice the company didn't explain much on the reason of business close. However, we can think of all the PCB factory bankrupts, there are three main factors：

1. Capital loss heavily

2. Enviormental pollution

3. Raw material cost increase

Due to the ever long China-US trade war, many mid-small manufacturers are suffering from sales decrease, some of them go into death. Most of the mid-small sized PCB manufacturers in China adopts a strategy called " low profits, high sales", their main customer type is OEM customers. Due to the recent material cost increase and enviorment protection getting serious, these PCB manufacturers face a problem"they could neither increase price to their customers, nor bear the cost increase in production. "

Last month, a PCB factory invested by Hong Kong capital announces that due to shortage of cash, they have been delaying in pay their suppliers for a long time, they would like to invite all suppliers representative together to discuss how to settle this issue.

In July, a stock listed PCB manufacturer announce close. All suppliers heard of this news go to the factory immediately, it is reported the PCB factory owes their 50 suppliers about 20 Million CNY.

The PCB manufacturing industry is being adjusted by itself, only those who has advantage in technology and management can survive in this period.

Inno Circuit Limited has healthy capital flow and strong customer base, we are now investing on a new plant which focused on HDI PCB manufacturing and SMT service. Please contact us once you feel like to do so!

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