The same source indicates a “great contraction of business orders and layoff workers” as the cause for the decision now announced by Stella International. Production has stopped and complete closing of the factory is expected to occur before the end of February. Ten thousand workers in the Dongguan-based Stella should be impacted by the closure.

Stella established its Dongguan factory 13 years ago and has been focusing on lady’s shoes for worldwide known brands such as Nike, Prada, Rockport, amongst others.

According to CLIA, the Pou Chen group is also reducing its workers in Dongguan factory to 30-40 thousand (coming down from 100 thousand), and accelerate transference of production to Vietnam.

The same source also reported that 60 shoemakers in Putian city closed their business, as they went bankrupt, went hit by the increasing production costs or shifted their business to other Eastern Asian countries.