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Zhejiang Xingxing Refrigeration, China’s largest fridge exporter, has sent out its first products made since it got back to work following closures due to the novel coronavirus outbreak from Wuhan.
The Taizhou-based firm sent out five freezers destined for Europe, the US and Southeast Asia on Feb. 18, it told Yicai Global yesterday. It plans to send another 40 plus in the near future.
“Those that resume work, deliver goods and restore clients’ confidence first will be the first to land opportunities coming out of the crisis,” said Li Fan, deputy general manager of Xingxing’s overseas business department.
About 70 percent of the company’s employees are back at work but the firm is only outputting about half of its usual amount, Li added, explaining that this is because several suppliers have not yet re-opened and raw material supplies are low. Measures to reduce the potential spread of the coronavirus have also reduced efficiency, he continued, though he expects more workers back next week and to be operating at around 70 percent to 80 percent of its usual production.
“The disease has brought many challenges but mainly affected customer confidence,” said Lin, who believes many clients are worried about the possible further spread of the disease and therefore delayed deliveries. Other concerns include possible changes to import-export regulations, as 60 countries have already proposed putting special requirements on goods coming in from China.
That could be a big blow to Xingxing, which earned made sales to the tune of CNY6 billion (USD854 million) last year with about 40 percent coming from overseas. Nearly a third of its exports go to the US and Canada, 20 percent to Asia and between 10 and 15 percent each going to Europe, Central and South America, Africa and the Middle East.
To combat any export troubles, Xingxing is planning to set up production plants, research hubs, logistics arms and sales offices overseas, Lin said, adding that the firm is currently seeking a suitable location and that Southeast Asia and South and Central America are all potential sites.
