When orders fell due to the collapse of China’s housing market, factory owner Zheng Weirong decided to take action and protect his steel company from the downturn in the real estate sector.
Riding on a tourism boom, he closed a production line for making metal rods in 2021 and shifted investment to manufacturing container-sized huts, often used as guesthouses. The turnaround paid off, as demand for Chinese travel exploded last year after pandemic restrictions were lifted.
With 50 full-time employees, he aims to increase sales this year by 30% to about 130 million yuan ($18 million), an ambitious target given the slowing economy and falling consumer spending.
