Low-cost Dongguan furniture companies plan to move westward collectively

A group of local gangsters with the strongest strength in Dongguan furniture industry have concluded their inspection of Guangxi Industrial Park. The reporter learned yesterday from the person in charge of the famous furniture club, the leader of the event, that Dongguan companies are interested in the local rich forest resources, low cost and good facilities. It is expected that there will be contacts in the future, and the possibility of investing in factories is not ruled out.

     Collective expedition

     This inspection is not a furniture company in action, but a group. Last week, the bosses of local heavyweight furniture companies such as Guangrun Furniture, Evergrande Furniture, and Yongxin drove all the way to Guangxi for 6 hours and visited Yulin and Beiliu.

     It was Luo Wen, the chairman of the furniture master who was responsible for the shuttle. Luo Wen's other identity is the chairman of the Guangxi Chamber of Commerce in Dongguan. Previously, his furniture company in Guangxi also set up a factory in Houjie, and actively used his connections to actively support investment in his hometown.

     Luo Wen told reporters that Guangxi is rich in forestry resources, and Dongguan Furniture is at the forefront of the country. The purpose of organizing this event is to facilitate mutually beneficial cooperation between the two parties and help Dongguan's furniture industry transfer.

     Resource temptation

     Dongguan furniture companies are no strangers to what Luo Wen calls " rich forest resources " . The local rainfall in Guangxi is plentiful, and eucalyptus trees can be grown into pieces within five years. Therefore, it has become an important source of domestic plate. The local Gaolin and Sunway MDF are very well known in the industry. Zhao Jiayao, vice chairman of Window of the City, who went to the inspection together, told reporters that part of the MDF used in his company's panel furniture came from Gao Lin.

     In addition to forestry resources, Guangxi's relatively low manufacturing costs are also an important reason for attracting furniture companies to form teams to visit. Zhaojia Yao confirmed to reporters, local land per acre 50,000 yuan to 10 yuan, much lower than in Dongguan. The population of Yulin is 6.5 million and the labor force is abundant. The difficulty in recruiting workers after the economic recovery in the second half of last year is precisely the most problematic problem for Dongguan furniture companies. For this reason many companies have in-depth Guangxi, Guizhou, Yunnan recruitment even more remote, if they can enter Guangxi as good as taking place "only."

" Many people would rather pay 800 yuan in the local area than go to Dongguan to do a 1200 yuan job. " Luo Wen said that many local people in Yulin and Beiliu had worked in a furniture factory in Guangdong and had a certain technical foundation .

     In terms of supporting facilities, Guangxi has also been affirmed by the furniture bosses. According to Zhao Jiayao, the industrial park visited this time is also equipped with a commodity trading center and a logistics center, and it is based on the whole country, and its ambitions are not small. This will solve the circulation problems that furniture companies are concerned about.

     Although the local conditions in Guangxi seem to be quite tempting, Luo Wen told reporters that Dongguan furniture companies don't share much from them. Instead, many furniture companies in Shunde use raw materials and labor from Guangxi.

     Go upstream?

     Guangxi has built an industrial zone and is waiting for Dongguan ’s Golden Phoenix to fly in. What kind of projects these furniture companies are investing in has not yet been finalized.

     From the perspective of Guangxi's resource endowments, furniture companies in Dongguan can enter the processing of sheet metal in the upstream of the industrial chain to produce MDF.

     Since the second half of last year, the surge in plate prices has also made some enterprises in Dongguan have this intention, hoping to use this to control the upstream of the industrial chain and avoid the risk of price increases. Luo Wen also confirmed to reporters that an accompanying furniture company expressed interest in this investment direction, "and also made a speech at the local symposium. "

     In contrast, Zhao Jiayao of Window of the City is more interested in investing in a local furniture factory.

However, Zhao did not make it clear whether he would go to invest and set up factories, but only said that " follow-up communication and consultation are needed. "

     In the past, most of the outward expansion of Dongguan furniture companies relied on Taiwan-funded companies to find places with lower costs for overall transfer. Local private furniture companies have also made foreign investments, but all of them are fighting in vain. This expedition was completely spontaneous, and it happened just after the financial crisis when it was difficult to recruit workers and the cost rose, which is very symbolic.

     From the feedback point of view, Beiliu has gained more favor. As for the next action after the inspection, Luo Wen responded that Guangxi will also have a government team to negotiate.

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