May 20, 2006
Chinese shoemakers to move to Indonesia
JAKARTA - At least 50 Chinese shoemakers plan to move their factories to Indonesia to avert the impact of anti-dumping charges by the European Union.
The EU Commission has slapped anti-dumping import duties on footwear products from China and Vietnam, making footwear products from the two countries much less competitive. Nearly 3,000 shoe factories have already been closed in China as they have received no orders since the implementation of the anti-dumping measure, Eddy Widjanarko, chairman of the association of shoe makers (Aprisindo) said.
Eddy said 1,000 factories in Wenchou, 1,500 in Jian Zhou and 300 in Shenzhen have been closed, a situation which could benefit Indonesian shoemakers. He also noted relocation of factories from China to Indonesia would generate 50,000 new jobs in the country.
He said there were already eight Chinese companies moving their operations to the country, including six involving a US$40 million investment in East Java. The other two factories are in Jakarta and Serang with a total investment of US$35 million.
A delegation representing 20 shoemaking companies from China are to visit Indonesia in July to observe the condition of industrial estates there. Last year, Indonesia exported 150 million pairs of shoes valued at US$1.5 billion. This year exports are expected to rise by at least 20%, another official of the association said.
(Asia Pulse/Antara)
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