Rolex shuts all factories and readies for financial blow

Rolex set to shut all plants amid the coronavirus outbreak and readies for yet another economic blow after downturn from political protests in Hong Kong left it unstable.

The Swiss watch industry Rolex, Omega and Cartier now face China’s economic slowdown which threatens to engulf the rest of the world.

The plants will close in Switzerland for at least 10 days starting Tuesday.

The luxury watchmaker is also facing a strong Swiss franc, surging gold prices, and store closures which will lead to higher costs for companies such as Swatch Group AG and Richemont.

Richemont is now offering price cuts of as much as 49% for second-hand Cartier timepieces in a one-week special offer.

Swatch is also dealing with the potential cancellation of the Tokyo 2020 Olympics for which it had prepared a special-edition Omega.

Swiss watch exports fell the most in eight months in February, as shipments to China and Hong Kong slumped 52% and 42% respectively, according to Bloomberg.

More than 2,000 people have tested positive for coronavirus in Switzerland, with at least 15 fatalities.