BEIJING Development Group is planning staff cuts when it moves two of its yarn spinning operations from Hong Kong to China in 1996.
Vice-chairman Brian Ng said: 'We plan to keep over 100 staff from our present management team, and the majority will be responsible for our operations in Guangdong and Beijing.' The company said it planned to sack workers employed in the two Hong Kong factories, but it did not provide any details.
Mr Ng the group's spinning division needed to reduce costs substantially while maintaining productivity and quality.
He said Hong Kong's high labour costs were a principal reason for the China move.
'With Hong Kong's expensive labour and high land cost, the only way to diminish the increasing operational cost is to move our [yarn spinning] operations to a more cost-efficient country,' Mr Ng said.
He said staff cuts were inevitable.
The group was talking with Chinese partners to form a 50-50 joint-venture manufacturing base in China, including a worsted mill in Beijing and a woollen mill in Guangdong.
