Eastcolight’s labour force has been trimmed to 300 from a peak of 2,000, significantly reducing production costs to remain competitive, even though the capacity is set to increase by 25 per cent to 600,000 units per month this year. Illustration: Perry Tse

Trade war tariff threat, rising costs drives Hong Kong manufacturer to automate Chinese factory to survive

  • Eastcolight’s new 70 million yuan (US$10 million) factory in Guangdong province has reduced its workforce to 300 from a peak of 2,000 by investing in 50 robotic arms
  • Its capacity is set to increase by 25 per cent this year as the company seeks to focus on China’s domestic market
Topic |   China economy

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Eastcolight’s labour force has been trimmed to 300 from a peak of 2,000, significantly reducing production costs to remain competitive, even though the capacity is set to increase by 25 per cent to 600,000 units per month this year. Illustration: Perry Tse
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Karen Yeung

Karen Yeung

Karen Yeung joined the Post in 2017 after more than 15 years' experience on global newswires in Hong Kong and Shanghai. She spent eight years in Shanghai and has received awards for best feature, analysis and agenda-setting.