www.pengnuochemical.com Shijiazhuang Pengnuo Technology Co., Ltd.
September 9, 2025, Bao’an District, Shenzhen – The closure of the Shenzhen factory by global semiconductor packaging equipment giant ASMPT serves not only as a wake-up call for the semiconductor industry but also as a typical case study for asset-heavy industries like chemicals and manufacturing in dealing with geopolitical pressures and rising costs. This liquidation, affecting 950 employees, highlights the difficult choices traditional industrial enterprises face in high-cost environments and offers insights for cross-industry supply chain restructuring.
The Cost Dilemma: Three Major Pressures Overwhelming Traditional Factories
ASMPT’s official announcement stated that closing the Shenzhen factory is expected to save CNY 115 million annually, driven by three pressures that also loom over the chemical industry:
High Operating Costs: Chemical companies face not only plant rents and labor costs but also the increasing compliance costs associated with stricter environmental regulations.
Lagging Technological Iteration: Outdated equipment and a workforce with skills gaps lead to an unfavorable return on investment for upgrades.
Order Contraction: Global economic downturn has caused weak demand for chemical products, leading to continuously low capacity utilization rates.
Capacity Optimization: Automation and Regional Transfer in Tandem
Chemical companies are responding to the crisis through a “tech upgrade + regional diversification” strategy:
Automation Transformation: Building smart factories to increase production efficiency and reduce labor costs.
Regional Transfer: Shifting production capacity to low-cost regions like Southeast Asia and the Middle East to mitigate geopolitical risks.
Industry Insights: From Passive Reaction to Active Restructuring
The chemical industry can draw three key lessons from the ASMPT incident:
Balancing Short-Term Costs and Long-Term Technology Investment: For example, Hengli Petrochemical has offset cost pressures through continuous R&D in high-value-added products.
Supply Chain Diversification: Avoiding reliance on a single production location, exemplified by Saudi Aramco’s refining and chemical projects in multiple locations including China and India.
Green Transformation: Reducing environmental costs through circular economy practices, such as Sinopec’s “Zero-Waste Factory” pilot projects.
ASMPT’s factory closure is not an endpoint but a microcosm of a turning point in the industrial era. The chemical industry must find a new equilibrium between cost, technology, and geopolitical risks to navigate the cyclical winter.
Shijiazhuang Pengnuo Technology Co., Ltd. was established in 2020. We specializing in the research and development, production and sales of pharmaceutical intermediates and fine chemical products. We have one production plant and one R&D center.
Our products include:
Methyl D-(-)-4-hydroxy-phenylglycinate CAS： 37763-23-8
1,3-Diethylurea CAS： 623-76-7
Chlorosulfonyl isocyanate CAS： 1189-71-5
6-Methyluracil CAS： 626-48-2
6-Amino-1-methyluracil CAS： 2434-53-9
6-Amino-1,3-dimethyluracil CAS： 6642-31-5
Post time: Sep-15-2025