The China syndrome

Manufacturing News, Source : TheManufacturer.com
Published : 16 Nov 2002 10:13

China's influence over the world of manufacturing was evident again yesterday as succesive headlines hailed its role in the global battle for industrial supremacy.

Toymaker Hornby put its new-found success (interim pre-tax profits doubled to £1.7m on sales up by a third at £14m) down to the dual effects of the popularity of Harry Potter's Hogwarts Express train and shifting production to China, which had produced better-detailed models more cheaply.

Elsewhere in the grown up world, doubts have emerged over cash-strapped MG Rover's plans for a joint venture with China that would see Rover designs adding to the 16m cars that currently serve one fifth of the world's population. Rover says it is 'monitoring' an alliance, while China says it has no involvement in any deal. Reports suggest that Rover has received £150m from China by way of much-needed funding for new models. China says it has paid nothing and Rover says it doesn't need the money anyway.

Things are less confusing at Volkwagen, which has said it is to invest almost 3bn eoros (£1.8bn) in new models to be produced via joint European/Chinese ventures.

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