The South China Morning Post reported Tuesday that a wholly-owned subsidiary of Stanley Black & Decker has permanently closed its factory in the city of Shenzhen, resulting in the reduction of more than 1,000 jobs there.
The report cited a corporate notice dated Oct. 26 that attributed the closure of Stanley Black & Decker Precision Manufacturing (Shenzhen) to changes in the overall market environment and growing competition.
The business unit is listed by Stanley Black & Decker as a subsidiary, one of 22 in China as of April 2018.
According to the Morning Post, SBD’s Shenzhen factory has been in operation for 25 years.
The report went on to describe a visit the Morning Post made to the factory last week in which “the entrance was swarming with human resource managers and labor agents who were trying to persuade laid-off workers from the closed factory to join other ones.”
The report came a day after Stanley Black & Decker reported its 2020 third quarter fiscal results, which showed a considerable rebound to growth after large year-over-year losses in Q2. SBD had Q3 sales of $3.85 billion, up 6.0 percent year-over-year, led by an 11 percent sales jump from its Tools & Storage unit. Operating profit of $520 million and net profit of $395 million were also major year-over-year improvements.