Safety measures pinch overseas toy makers

Hong Kong toy makers face increasing costs, production time after recalls.

Stringent safety measures implemented in the wake of high-profile toy recalls last year will drive up the cost of China-made toys by at least 10 percent this year, an industry executive said Monday.

Hong Kong toy makers, most of which have production lines in mainland China, have been struggling to repair reputations damaged by last year's recalls of millions of potentially hazardous toys.

Added checks along the supply chain are driving up costs and production time, however, said Michelle Chong, assistant to the director of The Toy Company (Hong Kong) Ltd., the buyer for a toy wholesaler in Germany.

Chong said her company expected to spend US$1 million (euro681,514) this year on quality control - up from US$300,000 in previous years - to test each of the painted toys they buy before they are shipped to the wholesaler.

Overall, the new checks and balances could push up prices by an extra 10 percent this year and dent their competitiveness, she said.

Read Complete Story