North Shields company brings work back home from China

Oct 26 2009 by Andrew Mernin, The Journal

THE lure of cheap labour in Asia may be waning for UK businesses, according to a North East furnishings firm which is bringing much of its manufacturing operations back to the region from China.

There are very few positives to come out of the global economic crisis, save for cheaper high street prices and financial reform.

However, for family-run empire Fuda-Hobart Rose, it has helped bring manufacturing work back to Tyneside from Asia, creating jobs and fuelling its expansion.

The 50-year-old company, which employs 140 people in North Shields, supplies furniture and soft furnishings to seven retailing giants, including Tesco, Next, Morrisons and TK Maxx.

It also runs an operation in China, with two other local partners, which employs 150 people at a manufacturing facility that sells goods into the US and Germany.

Although the firm has no plans to downscale its Chinese operation thanks to surging demand for its smaller goods, the stormy economic climate has meant that production of bulk items will return to the North East this year.

The main motivation for the move was the pound’s plunge against the dollar during the downturn.