China International Marine Containers confirmed today it had suspended dry container production earlier than the previous years.
Almost all of China"s container production business has ground to a halt, according to the world"s largest box maker.
China International Marine Containers confirmed today it had suspended dry container production earlier than the previous years as the global financial crisis slowed Chinese exports and affected the demand for new containers.
?Hit by slow demand due to the global financial crisis, almost all of China"s dry container business has ground to a halt,? said the company in a filing to the Shenzhen stock exchange.
The statement confirms a report which revealed that CIMC had suspended the production of dry marine containers, allowing its dry box manufacturing employees to have their year-end holiday much earlier than the usual practice. CIMC suspended the trading of its shares on the Shenzhen bourse last Friday.
?Our company has warned of the risks as slowing demand is now a universal phenomenon due to the economic environment caused by the global financial tsunami,? the stock exchange filing explained.
The statement reaffirmed CIMC's business was traditionally slack in the fourth quarter, but added that the company had allowed more staff to take leave this year than in previous years due to slow demand.
Meanwhile, Hong Kong-listed box maker Singamas has also suspended production at its Indonesian factory, PT Java Pacific, which has an annual production capacity of 30,000 teu.
The company said last week its factories in China were still operational as they still had some orders on hand to complete. The factories will close for the Chinese New Year after finishing the orders on hand.