Shanghai: Shanghai Zhenhua Heavy Industry (ZPMC), a world leading port machinery manufacturer, announced its 2012 results with revenue dropping by 4.57% to RMB18.2bn and it suffered a huge loss of RMB1.04bn.
“ZPMC hasn’t paid any monthly bonuses since the second half of last year and there were no annual bonuses for 2012. It has also announced in January to cut the bottom level employee’s salary by 20%. A lot of people have complained about it, but they all got serious warnings from the company,” an employee of ZPMC revealed.
Although ZPMC occupies 70% of the world’s port machinery market, it is still facing many challenges.
“Firstly, the company’s total order volume has decreased and many developed countries are back in the manufacturing businesses which has intensifies the competition. Secondly, our product portfolio is too limited, we called for a transformation, but it is not very successful so far. Thirdly, the company suffers from structural overcapacity and has excessive investment in fixed assets which caused high management and depreciation cost,” Song Hailiang, president of ZPMC said frankly. [03/04/13]
