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Tens of thousands of mask-making companies mushroomed across China at the start of the coronavirus pandemic, but many are struggling to survive as they face stricter quality control measures and falling domestic demand.
China launched a huge effort to produce protective gear to meet shortages during the outbreak, which first emerged in the country late last year before spreading across the globe.
More than 73,000 companies registered as mask makers in the first half of the year -- including over 36,000 new companies in April alone -- as prices and demand soared.
But the influx of new companies led to a “dilution in quality and a surge in scams”, according to China-based researchers at Daxue Consulting, as firms from carmakers to diaper producers converted production lines to make masks.
Now the outbreak is largely under control in mainland China, domestic mask demand has dropped dramatically, pushing prices down.
“Our orders have been slashed five or sixfold since April,” said Yang Hao, a sales director at CCST, a company in the southern city of Shenzhen that makes air purifiers but added masks to its repertoire.
“We do not need to produce masks days and nights every day now.”
Some of the companies that piled into the industry are now backing out. (AFP)
China launched a huge effort to produce protective gear to meet shortages during the outbreak, which first emerged in the country late last year before spreading across the globe.
More than 73,000 companies registered as mask makers in the first half of the year -- including over 36,000 new companies in April alone -- as prices and demand soared.
But the influx of new companies led to a “dilution in quality and a surge in scams”, according to China-based researchers at Daxue Consulting, as firms from carmakers to diaper producers converted production lines to make masks.
Now the outbreak is largely under control in mainland China, domestic mask demand has dropped dramatically, pushing prices down.
“Our orders have been slashed five or sixfold since April,” said Yang Hao, a sales director at CCST, a company in the southern city of Shenzhen that makes air purifiers but added masks to its repertoire.
“We do not need to produce masks days and nights every day now.”
Some of the companies that piled into the industry are now backing out. (AFP)
