Zhang Shuhong
Encyclopedia
Zhang Shuhong was a Chinese
businessman and factory
owner. Zhang committed suicide
after toy
s made at his factory for Fisher-Price
(a division
of Mattel
) were found to contain lead paint
.
. He first worked as an errand
boy for a Hong Kong factory. He eventually moved to
Guangdong
province
, just across the border
from Hong Kong,
to work in the toy factories which grew up in the area in the 1980s
and 1990s. He never married.
years before taking over as head of the company's day to day
operations. The Lee Der company, which is based in
Foshan
, China
, and is also known as Lida,
s and other products for
Western companies, including Mattel
and its subsidiary
,
Fisher-Price
. Zhang was described by employees and co-workers
as an entrepreneur
. Lee Der Industrial was losing money and
suffering financial loses at the time that Zhang took over
operations. Zhang was credited with stopping the
money loss. He invested much of Lee Der's earnings
back into the
company
, investing in new buildings, capital
and equipment. According
to Lee Der employees, Zhang was planning to move one of his three
factories to a new $5 million USD plant
that had recently been
completed.
Zhang was reportedly devoted to the Lee Der Industrial
company. He resided on the factory grounds in a 25-square-meter room for the 10 years before his death to be close to his
work.
Zhang also owned two subsidiaries, which were named Hengjing
and Shuaimeng.
hundreds of thousands of toy
s which were made in China
under the Fisher-Price
label
. These recalled Fisher-Price toys included figurines
of Big Bird
, Elmo
and Dora the Explorer
and related characters, which were manufactured by Lee Der Industrial. Some of these toys were found to have been coated in paint
containing excessive levels of lead
. Lead exposure, particularly from lead paint
, has been found to cause vomiting
, nausea
, diarrhea
, and even death
in children. A million toys were recalled from American stores such as Toys R Us and Walmart.
The Mattel Company sent investigators to China
. Mattel identified Lee Der Industrial company as the main supplier of the lead paint tainted toys. China immediately suspended the company's export
license
which had a devastating effect on the company's business
. According to press reports, Lee Der Industrial stood to lose as much as $30 million due to the Fisher-Price toy recall scandal
.
Mattel tracked down three paint suppliers who worked for the Lee Der company - Dongxin, Zhongxin and Mingdai. Each of these three companies had supplied paint to factories which were contracted to make Mattel products, including Fisher-Price.
Mattel believes that specifically, the Mingdai company sold yellow paint pigment
containing lead to Dongxin and Zhongxin, which produced the paint. The paint was then used by Lee Der, operated by Zhang Shuhong, to produce Mattel's line of Fisher-Price products.
It is believed that a personal friend of Zhang's ran the company who supplied the lead paint, which ultimately led to the Mattel recall and the financial ruin of Lee Der Industrial. It has been speculated that Zhang Shuhong felt demoralized by the scandal
and possibly betrayed by a close friend. Whether or not Zhang knew of the lead paint before the recall is unknown.
Zhang spent the morning of August 11, 2007, talking to some of Lee Der Industrial's 5,000 employees encouraging them to look for other jobs
. He also told his managers to sell the factory's equipment. Zhang then apparently hanged himself on the third floor of one of his factories later that day. According to The New York Times
, Zhang was 52 at the time of his death. A funeral was held for Zhang Shuhong on August 17 in the factory yard of the Lee Der company.
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
businessman and factory
Factory
A factory or manufacturing plant is an industrial building where laborers manufacture goods or supervise machines processing one product into another. Most modern factories have large warehouses or warehouse-like facilities that contain heavy equipment used for assembly line production...
owner. Zhang committed suicide
Suicide
Suicide is the act of intentionally causing one's own death. Suicide is often committed out of despair or attributed to some underlying mental disorder, such as depression, bipolar disorder, schizophrenia, alcoholism, or drug abuse...
after toy
Toy
A toy is any object that can be used for play. Toys are associated commonly with children and pets. Playing with toys is often thought to be an enjoyable means of training the young for life in human society. Different materials are used to make toys enjoyable and cuddly to both young and old...
s made at his factory for Fisher-Price
Fisher-Price
Fisher-Price is a company that produces toys for infants and children, headquartered in East Aurora, New York. Fisher-Price has been a wholly owned subsidiary of Mattel since 1993.-History:...
(a division
Division (business)
A division of a business entity is a portion of that business that operates under a different name. It is the equivalent of a corporation or limited liability company obtaining a fictitious name or "doing business as" certificate and operating a business under that fictitious name...
of Mattel
Mattel
Mattel, Inc. is the world's largest toy company based on revenue. The products it produces include Fisher Price, Barbie dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, board games, and, in the early 1980s, video game consoles. The company's name is derived from...
) were found to contain lead paint
Lead paint
Lead paint or lead-based paint is paint containing lead, a heavy metal, that is used as pigment, with lead chromate and lead carbonate being the most common. Lead is also added to paint to speed drying, increase durability, retain a fresh appearance, and resist moisture that causes corrosion...
.
Personal life
Zhang Shuhong grew up in Hong KongHong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. He first worked as an errand
boy for a Hong Kong factory. He eventually moved to
Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...
province
Province
A province is a territorial unit, almost always an administrative division, within a country or state.-Etymology:The English word "province" is attested since about 1330 and derives from the 13th-century Old French "province," which itself comes from the Latin word "provincia," which referred to...
, just across the border
Border
Borders define geographic boundaries of political entities or legal jurisdictions, such as governments, sovereign states, federated states and other subnational entities. Some borders—such as a state's internal administrative borders, or inter-state borders within the Schengen Area—are open and...
from Hong Kong,
to work in the toy factories which grew up in the area in the 1980s
and 1990s. He never married.
Lee Der Industrial
Zhang Shuhong worked at the Lee Der Industrial company for over tenyears before taking over as head of the company's day to day
operations. The Lee Der company, which is based in
Foshan
Foshan
Foshan is a city in central Guangdong province in southern China. The prefectural area under the city's jurisdiction over an area of about 3,840 km² and a population of 5.4 million of which 1.1 million reside in the city proper ....
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, and is also known as Lida,
Toy
A toy is any object that can be used for play. Toys are associated commonly with children and pets. Playing with toys is often thought to be an enjoyable means of training the young for life in human society. Different materials are used to make toys enjoyable and cuddly to both young and old...
s and other products for
Western companies, including Mattel
Mattel
Mattel, Inc. is the world's largest toy company based on revenue. The products it produces include Fisher Price, Barbie dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, board games, and, in the early 1980s, video game consoles. The company's name is derived from...
and its subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
,
Fisher-Price
Fisher-Price
Fisher-Price is a company that produces toys for infants and children, headquartered in East Aurora, New York. Fisher-Price has been a wholly owned subsidiary of Mattel since 1993.-History:...
. Zhang was described by employees and co-workers
as an entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
. Lee Der Industrial was losing money and
suffering financial loses at the time that Zhang took over
operations. Zhang was credited with stopping the
money loss. He invested much of Lee Der's earnings
Earnings
Earnings are the net benefits of a Corporation's operation. Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT -- earnings before interest and taxes, EBITDA - earnings before...
back into the
company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
, investing in new buildings, capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
and equipment. According
to Lee Der employees, Zhang was planning to move one of his three
factories to a new $5 million USD plant
Factory
A factory or manufacturing plant is an industrial building where laborers manufacture goods or supervise machines processing one product into another. Most modern factories have large warehouses or warehouse-like facilities that contain heavy equipment used for assembly line production...
that had recently been
completed.
Zhang was reportedly devoted to the Lee Der Industrial
company. He resided on the factory grounds in a 25-square-meter room for the 10 years before his death to be close to his
work.
Zhang also owned two subsidiaries, which were named Hengjing
and Shuaimeng.
2007 Mattel toy recall
On August 2, 2007, the Mattel Corporation recalledProduct recall
A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence and to improve or avoid damage to publicity...
hundreds of thousands of toy
Toy
A toy is any object that can be used for play. Toys are associated commonly with children and pets. Playing with toys is often thought to be an enjoyable means of training the young for life in human society. Different materials are used to make toys enjoyable and cuddly to both young and old...
s which were made in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
under the Fisher-Price
Fisher-Price
Fisher-Price is a company that produces toys for infants and children, headquartered in East Aurora, New York. Fisher-Price has been a wholly owned subsidiary of Mattel since 1993.-History:...
label
Label
A label is a piece of paper, polymer, cloth, metal, or other material affixed to a container or article, on which is printed a legend, information concerning the product, addresses, etc. A label may also be printed directly on the container or article....
. These recalled Fisher-Price toys included figurines
Figurines
Figurines is an indie rock band from Denmark, formed in the mid-1990s. The band released their first EP, The Detour, in 2001 and their first full-length album, Shake a Mountain, in 2004. The band began to receive national attention in Denmark around the time of the full-length release, and began...
of Big Bird
Big Bird
Big Bird is a protagonist of the children's television show Sesame Street. Big Bird, like many of the other Sesame Street characters, is a Muppet character. He is sometimes referred to simply as "Bird" by his friends....
, Elmo
Elmo
Elmo is a Muppet character on the children's television show Sesame Street. He is a furry red monster and currently hosts the last full 15 minute segment on Sesame Street, Elmo's World, which is aimed at toddlers. His puppeteer, Kevin Clash, uses falsetto to produce his voice...
and Dora the Explorer
Dora the Explorer
Dora the Explorer is an American animated television series created by Chris Gifford, Valerie Walsh, and Eric Weiner. Dora the Explorer became a regular series in 2000. The show is carried on the Nickelodeon cable television network, including the associated Nick Jr. channel. It aired on CBS until...
and related characters, which were manufactured by Lee Der Industrial. Some of these toys were found to have been coated in paint
Paint
Paint is any liquid, liquefiable, or mastic composition which after application to a substrate in a thin layer is converted to an opaque solid film. One may also consider the digital mimicry thereof...
containing excessive levels of lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
. Lead exposure, particularly from lead paint
Lead paint
Lead paint or lead-based paint is paint containing lead, a heavy metal, that is used as pigment, with lead chromate and lead carbonate being the most common. Lead is also added to paint to speed drying, increase durability, retain a fresh appearance, and resist moisture that causes corrosion...
, has been found to cause vomiting
Vomiting
Vomiting is the forceful expulsion of the contents of one's stomach through the mouth and sometimes the nose...
, nausea
Nausea
Nausea , is a sensation of unease and discomfort in the upper stomach with an involuntary urge to vomit. It often, but not always, precedes vomiting...
, diarrhea
Diarrhea
Diarrhea , also spelled diarrhoea, is the condition of having three or more loose or liquid bowel movements per day. It is a common cause of death in developing countries and the second most common cause of infant deaths worldwide. The loss of fluids through diarrhea can cause dehydration and...
, and even death
Death
Death is the permanent termination of the biological functions that sustain a living organism. Phenomena which commonly bring about death include old age, predation, malnutrition, disease, and accidents or trauma resulting in terminal injury....
in children. A million toys were recalled from American stores such as Toys R Us and Walmart.
The Mattel Company sent investigators to China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. Mattel identified Lee Der Industrial company as the main supplier of the lead paint tainted toys. China immediately suspended the company's export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
license
License
The verb license or grant licence means to give permission. The noun license or licence refers to that permission as well as to the document recording that permission.A license may be granted by a party to another party as an element of an agreement...
which had a devastating effect on the company's business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
. According to press reports, Lee Der Industrial stood to lose as much as $30 million due to the Fisher-Price toy recall scandal
Scandal
A scandal is a widely publicized allegation or set of allegations that damages the reputation of an institution, individual or creed...
.
Mattel tracked down three paint suppliers who worked for the Lee Der company - Dongxin, Zhongxin and Mingdai. Each of these three companies had supplied paint to factories which were contracted to make Mattel products, including Fisher-Price.
Mattel believes that specifically, the Mingdai company sold yellow paint pigment
Pigment
A pigment is a material that changes the color of reflected or transmitted light as the result of wavelength-selective absorption. This physical process differs from fluorescence, phosphorescence, and other forms of luminescence, in which a material emits light.Many materials selectively absorb...
containing lead to Dongxin and Zhongxin, which produced the paint. The paint was then used by Lee Der, operated by Zhang Shuhong, to produce Mattel's line of Fisher-Price products.
It is believed that a personal friend of Zhang's ran the company who supplied the lead paint, which ultimately led to the Mattel recall and the financial ruin of Lee Der Industrial. It has been speculated that Zhang Shuhong felt demoralized by the scandal
and possibly betrayed by a close friend. Whether or not Zhang knew of the lead paint before the recall is unknown.
Zhang spent the morning of August 11, 2007, talking to some of Lee Der Industrial's 5,000 employees encouraging them to look for other jobs
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
. He also told his managers to sell the factory's equipment. Zhang then apparently hanged himself on the third floor of one of his factories later that day. According to The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
, Zhang was 52 at the time of his death. A funeral was held for Zhang Shuhong on August 17 in the factory yard of the Lee Der company.