Toy recalls threaten Hong Kong exports
Hong Kong (dpa) - Toy exports from Hong Kong could be hit in the second half of the year following the recall of millions of Mattel toys made in China in a faulty toys scandal, a media report said Sunday.
As a result Hong Kong trade officials are encouraging the city's toy manufacturers to diversity into new export markets such as Eastern Europe and South America, the South China Morning Post said.
"We in the TDC are worried that the recalls may have an impact on Hong Kong's toy exports in the second half," Trade Development Council spokesman Lawrence Yau Chung-hok said. "Toy exports make up around 3 per cent of total exports. Suppliers have a good track record on safety and quality."
Jeffrey lan Kin-fung, chairman of the council's advisory committee on toys, said companies should aggressively expand into the many emerging markets that are opening up, such as South America, Eastern Europe and the Middle East.
Lam said the entire toy industry had been upset by the recalls. "Everyone is doing checks on their production processes and suppliers, and people across the industry are thinking about how they can respond in a concerted fashion."
On Tuesday, US manufacturer Mattell recalled millions of Sarge die-cast metal cars from the Pixar film, Cars, because of lead in the paint. It recalled Polly Pocket, Batman Magna, Doggie Daycare and One Piece playsets because of fears small magnets could be swallowed by children. Mattel's Fisher-Price subsidiary recently recalled 1.5 million toys in a global scare about unacceptable levels of lead in the paint.
The lead-paint scandal led Hong Kong businessman Cheung Shu-hung, a partner in Lee Der Industrial which made toys for Mattel, to hang himself at a warehouse at Foshan in southern China near Hong Kong.
Cable Chu Yui-wa, general manager of the Hop Lee Cheong Industrial Company, which supplies toy ducks, said the recall scandal had made consumers and producers nervous about the quality of products.
He said part of the problem was the multi-layered subcontracting in the industry which made it difficult to ensure quality standards. "It may go to three, four or five layers of subcontractors," he said.
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