Chinese mobile phone manufacturer’s closure in Shenzhen deepens fears of economic slowdown
A Shenzhen-based supplier that assembles mobile phones for major brands like Samsung Electronics has suddenly ceased operations, raising concerns of a worsening slowdown in mainland China’s smartphone market.
G.Credit Electronic Company, a Hong Kong-financed manufacturer that had more than 2,500 workers in the Longgang township of Shenzhen, shut down its factories on Friday, according to a company announcement, in which it said it was stopping operations and terminating workers’ contracts with immediate effect.
It joins the ranks of other electronics goods manufacturers based in the Pearl River Delta that have been shuttered in past months in the wake of a steady decline in demand for consumer electronics merchandise in the domestic and foreign markets.
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In addition to the slump in exports, rising costs involved in running factories in Guangdong have prompted companies from Hong Kong, Taiwan and other overseas markets to withdraw from the province and relocate to other countries.
G.Credit spokespeople could not be reached for comment.
Founded in 2009, G.Credit had once been a supplier to several leading smartphone brands – including Samsung, Huawei Technologies and ZTE – and start-ups like Smartisan.
At the height of domestic and overseas demand for smartphones, G.Credit employed more than 4,000 workers at its Shenzhen plants.