GUANGZHOU: The strategic decision to relocate its labor-intensive manufacturing facilities to an economically less developed region has proved hugely beneficial for the Guangzhou Eagle Coin Enterprises Group. It is now one of the company's key strategies in its bid to ride out the rigors of the current financial downturn.

Zhou Canyu is the general manager of the 50-year old food processing company. Commenting on the significance of the move, he said: "If we had not relocated, our company would definitely have suffered as a result of the current economic difficulties."

The company has now divided its manufacturing facilities between Dianbai and Qingxin, in the west and north of Guangdong respectively. These two areas are relatively underdeveloped, allowing Eagle Coin to enjoy considerable cost savings.