According to a Xinhua news agency report China’s first factory that uses only robots for production is in the first stages of construction in Dongguan. At first, approximately 1,000 robots will be introduced in the factory managed by Shenzhen Evenwin Precision Technology Co. The company chairman, Chen Xingqi, states that the plan is to decrease to 90% of the 1,800 strong staff to around 200. There are no actual figures described about the investment for the factory, but production forecasts of a value of 2 billion Yuan (US$322) annually are predicted.
Due to shortages of labor in China’s delta of the Pearl River where the major export manufacturing industries are located, replacing workforce by robots is soon going to be the norm. This innovative change is required to respond to the economic deceleration. 4.2 billion Yuan has been invested by 505 factories according to Dongguan Economy and Information Bureau, to replace 30,000 workers with robots. It is expected that 1,500 industries in the area will use robots in place of workers by 2016.
In Guangdong 943 billion Yuan is ready to be spent for substituting robots in place of human labor. Robot manufacturers and manufacturers replacing robots with human labor are getting paid 200 to 500 million Yuan as annual subsidies, from cities in the province. Guangzhou has a target of building a 100 billion Yuan value robot manufacturing industry by 2020, and to automate 80 % of the city’s manufacturing units through robots.
There is an extreme labor shortage in the province and there is a requirement for 600,000 to 800,000 workers since March 15, 2015. Post the Lunar New Year the need goes up due to migrant workers not returning to their jobs.