Two More Large Electronics Manufacturers Close In Shenzhen

On August 30th, Alco Electronics (Dongguan) Limited and Goodway Electric Manufacturing (Shenzhen) Co., Ltd. issued a factory closure notice respectively.

Alco Electronics, affiliated to Hong Kong Alco Group, entered Dongguan in 1986 and was listed in the Hong Kong stock market in 1992. It is one of the first HongKongese audio manufacturers to build its factory in mainland China. Its business scope involves its self-developed brand AVITA laptops and other consumer electronics. In 2004, its number of employees reached 10,000. Alco Electronics’ subsidiary company Dongguan Alco Electrics was registered in 2013, with a plant area of around 49 acres.

Since the outbreak of the CCP virus (COVID-19) in 2020, Alco Electrics has reportedly been facing operational problems, when its clienteles have dropped orders sharply, and even in deficit.

At the end of 2021, Wilison Leung Wai-sing, chairman of Alco, committed suicide by jumping off the building. On August 30th, 2022, the company issued a notice of closure, terminated the labor contracts with all of their employees, and the electronics factory that had been in operation for 36 years was shut down.

Shenzhen Goodway, another private-owned enterprise from Hong Kong, was established in 1989, its manufacturing business includes small home appliances such as irons, hair dryers and microwave ovens. Exporting is part of its main revenue, with an annual turnover of US$80 million. On August 30th, 2022, Goodway issued a notice stating that the company had not received new orders and was going to shut down, and that the shareholders had decided to dissolve the company. Employee compensation packages have also been sent out.