How can the largest plastic bag manufacturer in China close down, I hear you ask. Well, like any other state-run company, competition and business environment moves faster than the company can turn around. In this case, Suiping Huaqiang Plastic Co. Ltd., China's largest maker of plastic bag products, is closing its doors as new environmental laws set up last month banned 90 percent of its products. The company produces 250,000 tons of bags worth 2.2 billion yuan annually.
20,000 workers are laid off from the company as the State Council in Beijing issued a Jan. 9 order stop to production, sale and use of plastic bags thinner than 0.025 millimeters starting on June 1. The threat to the industry turned out to be so great that the Suiping Huaqiang plans to close without considering to redesign their products. But the use of plastic bags will nevertheless go on as China's domestic consumption steps up. How many bags do you use per day?
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