Elgi Equipments to wind up Chinese subsidiary over economic downturn, Covid

Elgi Equipments, a Coimbatore-based industrial air compressor manufacturer, has announced plans to wind up its subsidiary in China.

The company's Chinese subsidiary Elgi Equipments Zhejiang Ltd has not been performing to expected levels for the past few years and the business operations in China have been severely affected due to the general economic downturn, now aggrevated by the advent of Covid-19.

The subsidiary is in the business of import, warehousing, selling and servicing. The winding-up activities are likely to begin shortly.

In 2015, the company had said that it was restructuring the China operations due to economic slowdown in China, in order to minimise losses and approach the market in a focussed manner by supplying products that meet local market requirements.

It also decided to surrender manufacturing licence and optimisation of manpower, among others during the time.