Two Wenzhou Enterprises Get Indemnities from SINOSURE
- Published: Thursday, 14 January 2016 08:01
- Written by CHINA WENZHOU GUIDE
Recently, two Wenzhou optical companies got indemnities of 25.77 million Yuan from China Export and Credit Insurance Corporation (SINO SURE) for the unpayable debts of the same American buyer, the highest amount of indemnities ever paid to the optical industry of Wenzhou for the debts of a single buyer.
The American buyer, also a big supplier of Wal-Mart, has expanded vigorously in the market of reading glasses in recent years. The two Wenzhou glasses suppliers have been supplying to the buyer for more than three years with growing transactions. In October last year, the two suppliers noticed the buyer had delayed its payment and owed a large amount of debts to them. The high financial pressure has greatly affected their business operations. Therefore, they initiated claims to SINOSURE.
According to the investigation of SINOSURE, the buyer has suffered serious financial problems. Thus, SINOSURE paid a total amount of 25.77 million Yuan to the two suppliers as compensation. Unfortunately, another glasses exporter in Ouhai District of Wenzhou, lost USD 1.5 million as it has not insured its exports to the same buyer.
“At present, there are only 7% of the glasses exporters in Wenzhou insuring their exports and mostly they arrange insurance for big orders.” Said an insider from Wenzhou Spectacles Association. “For those insured enterprises, their risks in trade security are better covered.”
According to the statistics from the Wenzhou office of SINOSURE, Wenzhou spectacles companies initiated 31 claims in the year of 2015 with the claimed indemnities reaching USD 7.42 million.