Caught in the Pearl River Delta to Hong Kong business enterprises lack of electricity in the next three years, or close to Sancheng

NetEase Finance 5 June meeting, according to Hong Kong, "Wen Wei Po" reported that in April began a lack of power in the mainland provinces and cities have emerged as a center for production of the Pearl River Delta factories of Hong Kong, from time to time, on the other five-stop "or" stop open four and three. "Vice-President, Confederation of Industry of Hong Kong, said Stanley Lau, a Hong Kong to the Pearl River Delta, a backup generator, it costs more than twice as expensive than the market price. The next month, the peak power shortage worsened the situation will drag on production, together with rising wages and raw materials, gross margin pressure, there did not dare take a single situation. If this is not the next 3-5 years upgrading and restructuring, coupled with no intention of taking the second generation, 60000 Pearl River Delta to Hong Kong, or have two to three plants would be closed by year end.
Stanley Lau said in an interview the next month will enter the peak period of power shortage situation will be serious. He said that producers use a back-up generators to 2 yuan per kilowatt, but the market price as long as 0.9 yuan, if the monthly average of one third of the electricity supplied from the emergency generator, the monthly increase in electricity costs will be ten million to several thousand dollars. "The current average cost increase of around one percent, but only customers Keng rates of 3-5%, together with the lack of power backup generators to use, some manufacturers may be only single-digit margins."
Speaking on the commercial impact of energy shortage, he noted that every year in July, producers will discuss the second half of the orders and customers, especially Christmas orders. However, due to unstable power shortage, along with gross margin pressures, many manufacturers are not all received a single, usually only willing to take seven, eight.
As for ways to deal with the Hong Kong Federation of Industry Director Kwok Chun-wah said that some manufacturers will be outsourced to China for small orders for plants, these small plants are often able to lower orders, to a certain extent the pressure on the production of Hong Kong. At the same time, the manufacturer of automation to increase production or to move production outside Guangdong give a lower production cost and labor abundant provinces such as Hunan, Jiangxi and Henan. In recent years, many manufacturers simply set up new production lines to Southeast Asia.

"In recent years, Jiangxi, Hunan, the costs may be lower than the Pearl River Delta, there is no guarantee in the Pearl River Delta after several flat years, so many manufacturers set up factories in the inland provinces to worry, I am very uncertain future . Stanley Lau said.
Looking for the second half of the orders, Stanley Lau is expected to gradually stabilize the economy in Europe is expected that Hong Kong in the second half of the units is expected to increase exports, but a significant factor in commodity prices and rising labor costs in mainland support. He said that although orders bothered problem, but the problem is that U.S. and European economies through the financial tsunami, local buyers are still purchasing requirements cruel, even though raw material prices and the mainland in response to rising wage costs have risen proportionally, but the growth is often only a few percentage points, a one-time bulk purchase in the past, shopping in the series, which significantly increases costs for manufacturers.                                                                                                                                     2011-6-6