Industry Cold Winter Dongguans 27 year old chemical factory went bankrupt

    Recently, a large chemical enterprise named Dongzhan Chemical in Dongguan announced a comprehensive shutdown, which has attracted widespread attention. The company has been rooted in Dongguan for 27 years and has always enjoyed a good industry reputation. However, recently, due to multiple factors, the company's operation has fallen into difficulties and cannot continue to maintain.
According to industry sources, there are two main reasons for the shutdown of Dongzhan Chemical. Firstly, due to macroeconomic impact, the global plastic and chemical market is facing a severe situation, leading to significant fluctuations in international exchange rates and a significant decline in plastic product prices. This has put the company's daily operations in a difficult position and cannot continue to be maintained.
    Secondly, due to the business difficulties of upstream and downstream partners in the chemical industry, they were unable to timely fulfill the payment, resulting in the breakage of Dongzhanhua's salary chain. In the absence of sufficient financial support, the company ultimately made the decision to completely shut down production.
    Dongzhan Chemical is a joint venture established in 1996 and has been operating in Dongguan for 27 years now. During this period, the company has been continuously developing and growing, with strong strength and a good reputation in the industry.
Its business covers the Pearl River Delta Economic Belt and is a truly large enterprise in Dongguan. However, in the current severe situation, Dongzhan Chemical ultimately failed to overcome this difficulty.
    According to industry insiders, the main reason for the closure of chemical enterprises such as Dongzhan Chemical is a decrease in orders. Due to the impact of the epidemic, industries such as automobiles, toys, home appliances, and electronic appliances are facing a difficult situation internationally, with low shipments and reduced demand for chemical materials or semi-finished products. This directly affects the orders of chemical enterprises, leading to a financial crisis and even a breakdown of the enterprise's capital chain.
    Although Dongguan's chemical industry has cluster advantages, this high-density and high-frequency intensive cooperation has led to a local "financial crisis". Once a company encounters problems, it can quickly spread to other partners, creating a domino effect. Therefore, the bankruptcy of Dongzhan Chemical reflects to some extent the current difficulties and challenges of Dongguan's chemical industry.