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Fri, Nov 02, 2007 - Page 10 News List

Tomy looking for new base as labor costs rise in China

AFP , TOKYO

Major Japanese toymaker Tomy plans to slash production in China by one-third because of surging labor costs, shifting it to other Asian countries, a spokeswoman said yesterday.

Tomy makes 90 percent of its products in China in revenue terms, with some 10 percent done in Thailand.

"We aim to shift some 30 percent of the [Chinese] production to elsewhere over the three years," Tomy spokeswoman Shigemi Sugaya said.

Costs are rising rapidly because of a labor shortage around Guangdong Province, where Tomy products are made, she said.

"Not only us, but also other toymakers are recognizing various risks arising from concentrating production in one place," she said.

"Our candidates as the destination for the production relocation include Vietnam," she said, suggesting Thailand as another candidate, where it has one factory.

Sugaya said the planned cutback in Chinese production did not stem from global scares over the safety of Chinese-made products.

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