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Govt, companies work together to restore production capacity

ezhejiang.gov.cn| Updated: April 27, 2020 L M S

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The workshop of a textile company in Deqing county, Huzhou, Zhejiang province [Photo/zj.zjol.com]

Governments and companies throughout Zhejiang province have been making concerted efforts to recover their production capacity over the past few months.

Xinhai Group, a medical equipment and plastic product manufacturer based in Cixi, a county-level city in Ningbo, was faced with a lack of supplies when it began resuming operations on Feb 14.

As a result, Cixi government immediately took measures to allow major local companies and associated companies to resume operations simultaneously.

"Now 95 percent of our suppliers are operating normally and we are back at 100 percent capacity," said Sun Ningwei, vice-president of Xinhai.

In addition, in early March, exports made by Jiada Machinery Manufacturing Co in Deqing county, Huzhou weren't able to enter transit warehouses in Suzhou and Shanghai.

In response, the Deqing government negotiated with authorities in Suzhou and Shanghai and helped the company receive a "green pass".

Statistics show that 781 industrial companies and 327 service companies in Deqing were back at 100 percent capacity as of mid-March.

Another company that faced struggles was Binhai Group, an auto parts supplier in Huangyan district, Taizhou. The company was seeing a shortage in funds in late February until the local government not only allowed it to defer tax payments but also helped it receive loans from banks. As a result, the company saw a year-on-year increase of 20 percent in its output in the first quarter of this year.

Yibo High-tech Co is another company in Deqing that suffered from a decline in orders from foreign clients as the pandemic worsens overseas. The local government helped it secure many domestic orders to make up for some of its losses.

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