Nikko closes factory
By Staff -- Playthings, 7/2/2008 8:18:00 AM
GEORGE TOWN, Malaysia—Remote-control toy maker Nikko abruptly shuttered its factory in Prai, Penang, this week.
The move came as a result of “dwindling exports and market demand, and escalating production costs,” a government official in charge of promoting business investment in Penang told the Malaysia Star's news site, The Star Online.
The decision resulted in a loss of approximately 950 jobs, the website reported. Local officials allege the company failed to give its workers a legally mandated 1 month warning of the closure; they are contemplating legal action, according to published reports.
Officials at Nikko's Japanese headquarters could not be reached for comment in time for this story.
