ELECTRONICS manufacturers with operations in the Pearl River Delta are facing a number of competitive challenges - rising costs, a growing labour shortage and environmental concerns - but most believe the region still offers significant advantages.
Although toymakers are shifting some production to plants elsewhere on the mainland, companies that design and manufacture electronic components and consumer items are looking for more engineers and technical managers to work in Guangdong. In some cases, they are even offering salaries up to 30 per cent higher than for similar roles in Hong Kong.
Karrie Industrial, a major manufacturer of electronic components, has no plans to relocate operations and, in fact, is building a new factory in Dongguan. This is the culmination of five years' rapid growth.
The new 210,000 square metre plant in Fenggang district will be more than twice the size of the company's plants in the region and will be built in three phases.
Silvia Chan Ming-mui, Karrie's assistant administration director, said the plant was in an ideal location in terms of business and logistics requirements.
'We need timely delivery of raw materials to satisfy customer demand, and nowhere else can provide the same kind of support,' she said.