News

China's largest plastic bag manufacturer, Huaquiang, is reported to have closed down, nine days after the government announced a ban on ultra-thin carrier bags.

Huaquiang, which has 20,000 staff, produced 250,000 tonnes of bags a year and was worth CNY2.2bn (£150m), shut on 18 January, the Xinhua News Agency reported today (26 February).

On 9 January, China's State Council announced a ban from the beginning of June on the "production, sale and use" of ultra-thin bags, defined as less than 0.025mm thick.

The ban is said to affect 90% of Huaquiang's output, and a local government official was reported as saying the "only way forward" was closure.

Xinhua reported that there was a sign on the factory gates announcing: "1,600 plastic film blowing machines and over 1,000 packing machines are for transfer."

It said there were also concerns that a new labour law, protecting employees with more than 10 years' service from dismissal without cause, would have applied to some 2,000 staff and increased human resources cost.

Huaquiang has two plants and is owned by Nanqiang Plastic Industrial.