Singamas keeps box factories closed
12 Mar 2009
Source:Lloydlist

SINGAMAS Containers Holdings, the world's second largest box maker, has confirmed it has extended the closure of four factories in China making dry freight containers, writes Keith Wallis in Hong Kong.

The company initially suspended production at seven factories for two months and planned to resume box making from March 1.

But the company confirmed yesterday that while production had restarted at three plants, box making at four factories was still halted, although it

did not identify the locations.   Singamas has dry freight container factories in Guangdong, Huizhou, Ningbo, Qingdao, Shanghai, Tianjin and Xiamen.

Together the facilities can produce around 1.3m teu a year.

Singamas said production would gradually resume "in the near term". The company added that 4,000 workers of a total workforce of 12,000

had been laid off.    Singamas said the layoffs were made to achieve "better cost saving" and "enhance cost efficiency in response to the

recent global financial and economic turmoil".

It said while production of dry freight containers had been affected, demand for refrigerated containers, tank containers and other specialised

containers remained healthy and factories making these boxes were operating normally.

The Hong Kong-listed company denied local media reports that it had received almost no orders between December and February.

Instead, Singamas said it had secured orders during those three months and had received "more inquiries and accepted more purchase

orders from clients and potential clients for containers since March".