Stanley Black & Decker Permanently Shut Down Its Manufacturing Facility in Shenzhen, China

Author: Z. Li       

According to Chinese media, Stanley Black & Decker permanently closed its manufacturing facility in Shenzhen on Oct. 26, 2020. Stanley & Black Decker Precision Manufacturing Shenzhen Co. Ltd, a wholly owned China unit by Connecticut-based Stanley Black & Decker, was established in 2012. It produces electric drills, small household appliances and other products. Public data shows the company had 1194 employee last year and reported about 150 million USD in assets and 300 million USD in sales. It has become the latest to join many American companies to bring back jobs to the United States from China.

A manager of Stanley Shenzhen said, “I have been working for more than 20 years, and it is the first time I have ever seen such a high severance compensation. It can be said that no one in our factory is sad.” To avoid criticism from the government, the manager had to lie to the public: “The factory will move to Suzhou”, which is totally not true.

The manager told the reporter: “The factory will move to Suzhou and merge with Stanley Black & Decker (Suzhou) Power Tools Co., Ltd. after dissolution. We have been here (Shenzhen) for ten years. The lease term will end next year. The rent has risen too high. Now it costs 38 CNY per square meter, which is simply unacceptable.”

According to Dr. Cheng Wanli’s report (, CCP’s Department of Labor shamelessly said that Stanley’s high severance pay was to buy Chinese people’s support and set traps for other Chinese companies. They also claimed that the part of the overpayment was invalid, and the company should take it back. China Labor Law clearly states that the interests of dismissed employees should be legally protected. However, it can be seen from CCP’s comments that even the standard severance compensation cannot be honored in communist China.

Due to the trade war with China and insecurities of supply chains due to COVID-19, U.S. companies are moving their manufacturing operations back to the U.S. from China.

In May 2019, Stanley Black & Decker announced that it planned to move production of Craftsman wrenches, ratchets, sockets and more back to the United States from China. The new plant will be based on a 425,000-square-foot facility in Fort Worth, Texas, and projected to be running in late 2020. About 500 people will be employed at the new $90 million facility, which will utilize robots in the forging presses to boost output compared to the older forging machinery now used in China. This will keep production costs in-line with those in China, according to the Wall Street Journal.

reviewer: Ivy

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