The rapid development of China's economy has benefited from the development of China's manufacturing industry based on low-cost labor and raw materials. However, in 2012, with the continued downturn in external demand caused by the European and American debt crisis and the uncertainty of the domestic macroeconomic situation, factory closures, conversions, and layoffs frequently occurred, not only in the traditional clothing and textile industry, but also in home appliances and engineering. Machinery, automobiles, new energy and other fields have been affected. Our reporters also visited many companies in the Yangtze River Delta and the Pearl River Delta to investigate their current status. At present, the layoffs, production cuts, and sharp declines in profits in the manufacturing field have spread to many industries. Today we should pay attention to the building materials industry. Under the control of real estate, the impact of the building materials industry is the most direct. The largest tile manufacturer in Shanghai has planned to close the production line, and more than 900 workers are facing a contract cancellation situation to see the reporter's investigation in Shanghai. In the Smick factory in Minhang District, Shanghai, most of the production lines have been sealed. In the large workshop, only a few workers are still working. They said that by the end of the year, all production will be stopped. Just a while ago, the workers facing the contract were dissatisfied with the compensation and gathered in the office area and the factory gate, causing the Smick Shanghai base to temporarily suspend production. Smick employees said that the compensation is not uniform, the employees' ideas and the company's, the company's handling according to the law, but some employees do not understand, so the difference in appeals is relatively large. Shanghai Smick is the largest ceramics manufacturer in Shanghai and the only listed company with ceramics as its main business. On the 22nd, Smick announced that it intends to speed up the shutdown of the Shanghai plant in order to improve the efficiency of shutting down and relocating production lines. The remaining 3 production lines and 1 test line will be relocated to the Jiangxi plant area after transformation and put into production. Once the plan is implemented, the total number of employees who will be dismissed will be around 900. Smick expects to compensate these employees for more than $46 million. This news has hit Smick's share price. Since the announcement period, Smick's share price has fallen by 30%. Chen Kezhen, executive vice president of Shanghai Smick Holdings Co., Ltd. said that it plans to stop all at the end of this year. We stopped two kiln last year and stopped three kiln at the beginning of this year. We plan to have three large kiln and one this year. The small kiln is ready to stop at the end of next year. The Smick factory told the reporter that after the company shut down all the production lines in Shanghai, the Shanghai base will only leave about 80 people to continue to engage in logistics and part of the processing business. In the investigation, the reporter learned that ceramic production enterprises in Shanghai and surrounding areas are facing pressure to reduce production and relocation. The data shows that in the first half of 2012, the national ceramic tile production was 4.28 billion square meters, an increase of 3.8%; the national sanitary ceramics production was about 70 million pieces, down 9.2% year-on-year. Both figures have set a new low in the ceramic industry over the years. Tian Wankang, chairman of the Shanghai Interior Decoration Industry Association, said that the sales of wall tiles have dropped by nearly 30% compared with last year. Some products may have more problems . China's manufacturing costs have pushed the market to accelerate the transformation of manufacturing as a listed company. The only ceramic company, Smick's suspension of production is undoubtedly a microcosm of the ceramic industry downturn, facing the overcapacity of the ceramic industry, and the continued sluggish consumer demand, how to get out of the predicament, is the production line relocation is the lifeline of Smick? Industry insiders said that the industrial transfer can only solve the urgent need, and the ultimate way out is to increase the added value of the industry. Under the influence of slowing economic growth and real estate regulation, the building materials decoration market has been greatly affected. In the first half of this year, the loss-making enterprises in the ceramic industry increased by 14%, and the loss increased by 47%. For example, in the case of Smick, its tile business has been in a downturn in the past two years, with a loss of 180 million yuan in 2011. The semi-annual report released by Smick in August showed that it still lost more than 90 million yuan in the first half of the year, an increase of 46% over the same period last year. . In the face of the decline in performance, in addition to industrial transfer, Smick began to seek a new way out. Li Cixiong, chairman of the Smick Group, said that in addition to the ceramic tile industry, in addition to the development of 600 acres, we will gradually introduce insulation materials like construction and even some of the lithium mines we have done some time ago, including lithium batteries, which are new energy sources. This matter, we also have a lot of specific developments in this aspect. Chen Xian, a professor at Shanghai Jiaotong University, believes that in the past, domestic manufacturing industries relied too much on the relatively low prices of labor, land and raw materials to obtain profits, but this part is too low. The price is distorted. The motivation for the company's active transformation is insufficient. Now that these costs have risen, manufacturing companies have to transform under such pressure. Chen Xian, executive director of the School of Economics at Shanghai Jiaotong University, said that there are cost reasons and market reasons.//Multiple reasons are intertwined. At this time, it has come together. So during this time, this problem (corporate layoffs) It is very prominent that Huang Shunqing, a researcher in the building materials industry of Xiangcai Securities, seems that in the course of this downward cycle, the entire building materials industry, especially after real estate restrictions, coupled with a decline in investment, demand is sluggish, and the problem of oversupply will be highlighted. The overall industry situation is declining, and the profits of building materials such as cement, glass and ceramics will decline relatively. Huang Shunqing, a researcher in the construction and building materials industry of Xiangcai Securities, said that the demand for the building materials industry will be affected in the future, especially in the case of economic transformation, when the investment will shift the marginal efficiency. The current overcapacity will be highlighted. More serious de-capacity will be a painful process.
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