Production halted at Samsung China supplier amid child labor probe

Mon Jul 21, 2014 7:53am EDT
 
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By James Pomfret

CHASHAN China (Reuters) - Production has been indefinitely halted at a Chinese supplier to Samsung Electronics Co Ltd (005930.KS: Quote) after the factory was suspected of using child workers.

Samsung, the world's biggest smartphone maker, said last week it had stopped doing business with the Dongguan Shinyang Electronics factory, a wholly owned subsidiary of South Korea's Shinyang Engineering Co Ltd 086830.KQ, after an audit led to evidence of what Samsung called suspected child labor.

The Dongguan Shinyang factory is a squat building in an industrial estate in Chashan, one of hundreds of towns spread across southern China's Pearl River Delta, dubbed the factory of the world.

In Seoul, a senior official at parent firm Shinyang Engineering said its China factory had been idle since July 14.

The official, who declined to be named as he was not authorized to speak to the media, said Shinyang Engineering had asked the Chinese authorities to investigate the company that had supplied the factory with labor.

"We hope the problems will be resolved in a speedy manner so that we can resume production soon," he added.

The senior management at Dongguan Shinyang declined to meet or speak to the Reuters reporters who recently visited the plant but a manager who only gave his surname as Xie said there was no indication when production would resume.

"Of course it will take some time for us to get back to normal," he added.   Continued...

 
Debt collectors gather outside Dongguan Shinyang Electronics factory, a wholly owned subsidiary of South Korea's Shinyang Engineering Co Ltd, in Dongguan at the heart of southern China’s manufacturing powerhouse of the Pearl River Delta July 17, 2014. REUTERS/James Pomfret