Shenzhen—Chow Tai Fook Jewellery (1929) has ceased production at its Shenzhen factory as of June 1, relocating certain operations to its Shunde facility to enhance resource allocation and operational efficiency.
The unexpected move has left many employees surprised and uncertain. “I had always planned to retire at Chow Tai Fook and did not expect the factory to close suddenly,” one affected worker told Lanjinger, a Chinese financial news outlet. Staff have been offered compensation packages or the option to relocate to Shunde.
Chow Tai Fook operates three plants in mainland China: Shenzhen, Shunde, and Wuhan’s Huangpi. While Shunde is a high-value-added production base, Shenzhen focuses on research and development.
The decision to relocate may be influenced by rising gold prices, which have exerted pressure on the jewelry market. Gold jewelry consumption dropped 6% year-on-year to 184 tonnes in the first quarter, according to the World Gold Council. Additionally, same-store sales in Chow Tai Fook’s mainland stores fell 2.7% for the three months ending in March this year.
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