13/02/2016

BREAKING NEWS

Glider manufacturer Gin Gliders is deprived of its production unit due to political unrest

Political tension between North and South Korea means the manufacturer, Gin Paragliders, must abandon its activity on the major production site of Kaesong, the “inter-Korean” economic zone

Kaesong is geographically situated in North Korea but accepts South Korea’s trade. In 2004 the opening of the shared zone symbolised a reconciliation between the North and the South, however it was discovered later that salaries earned from the North were chanelled to provide financing for nuclear programmes.  

News from Arirang on the political decision

“Some days after the North Korean firing of long-range missiles and just one month after the fourth nuclear tests, South Korea defended the decision to close the inter-Korean industrial complex in Kaesong, claiming that the North Korean capital of Pyongyang had syphoned off some 70% of its North Korean workers wages to fund its nuclear missiles program.  The site had 124 South Korean companies employing  53,000 North Koreans.”*

This decision has an effect of the paragliding market because Gin Paragliders have their primary manufacturing unit there, and therefore lose their production site, its qualified workers, the machines, stock references and raw materials. Gin Paragliders has an alternative factory in China which will in the meantime take on the Kaesong production.  Gin Paragliders apologises in advance for delays in delivery.

* Source: Europe 1

Extracts from Gin Paragliders’ news to distributors

“As of the 11th February 2016, it has been confirmed that our factory will be closed.  All raw materials, machines and stock will be abandoned.  We have been authorised to cross the frontier to collect any equipment we are able to transport from our factory.  This definitive closure will affect our entire production because the manufacturing of all our products is from the Kaesong factory.   Fortunately, we are able to continue manufacturing to a maximum capacity in our Chinese factory where production will commence in the near future as soon as we have recovered our equipment…

This political situation has seriously effected our company.  We would like to apologise in advance for the inconvenience caused due to late deliveries and for the lack of information available with regards to future production…We are in the process of negotiating the necessary compensation and support from our government and reiterate that your satisfaction is our priority…”