Despite suspended production in one of its four major factories, China’s biggest lighting company NVC Lighting’s recent boardroom drama will have limited impact on its UK subsidiary, according to a report by Lighting.

 

Based in Birmingham, NVC Lighting’s UK arm emphasized the company operated independently from the Chinese parent company, and company operations will be unaffected.

 

The UK subsidiary also noted the Chongqing government in China was acting as a mediator to resolve the standoff between factory workers and the new company management.

 

A report by The South China Morning Post noted production had been halted at a factory based in Wanzhou, Chongqiang since Aug. 8,2014, after workers loyal to former company CEO Wu Changjiang refused to turn over the production site, which accounts for 25 to 30 percent of the company sales. It is believed 2,000 workers at the factory have been put on leave.

 

To prevent possible misuse of funds, the company has suspended Wanzhou factory bank account, however, it is believed employee salary were not affected.

 

Wu has repeatedly defied board’s decision and refused to relinquish his position as NVC Lighting CEO. In a company announcement on Aug. 8, 2014, the board informed the public of its decision to remove Wu from company CEO position. Elech-Tech International (ETI) Chairman Wang Donglei has been appointed by NVC Lighting board to stand in as interim CEO, and has resigned from his position as ETI President.