New Delhi: Amidst an ongoing trade war between the United States and China, one of the world’s leading toymakers, Hasbro Inc., has announced its plan to shift its manufacturing plants from China and open newer ones in Vietnam and India.Also Read - Earthquake of 5.2 Magnitude Rattles China's Xinjiang
The largest publicly traded toymaker worldwide, Hasbro Inc has licenses for some of the most popular franchises like “Frozen”, the “Transformers”, the “Avengers” and more. The company had, earlier this week, reported a 9% revenue increase in the second financial quarter of 2019. Also Read - Google Bans Several Malicious India-linked Domains | Check Full List
The company also announced that the US goods produced in China could reduce to less than 50% by the end of 2020, where currently nearly two-thirds of the toys are made. Also Read - Fourth Covid Wave? India’s Daily Case Zooms Past 17K-Mark; Kerala, Maharashtra Among Top Contributor
Chief Executive Officer Brian Goldner, on a conference call to discuss the second-quarter earnings, confirmed its plan saying that the company aims at increasing its footprint by “adding new geographies for production globally”.
Since the trade war between the two global superpowers has heightened, many companies, including Intel Corp., have been reviewing their production plans while some others have started diversification of their production units to different parts of the world.
Goldner said that the step has been taken to avoid any risk in the light of tariffs on direct import. However, he added that China will remain a high-quality, low-cost place to manufacture toys, and will continue to be a part of the “global network” of the company.
Meanwhile, Chief Financial Officer Deborah Thomas said that although it will be disruptive to their business, they “are prepared to address tariffs” in case they are implemented.