( dpa )- A leading German toy brand, Simba-Dickie , said Friday it expected shortages of toys this year as a purge hits manufacturers in China.
Speaking a week before the Nuremberg Toy Fair, the world's top toy event, chief executive Michael Sieber said the company had bought a majority in two toy factories in China as a precaution.
The lion's share of world toys are made in China, but often sold under western brands such as Simba and Dickie .
Beijing has cancelled 1,000 export licences and slapped tight rules on Chinese toymakers to purge the business of operators who last year exported products containing lead paint and other toxic substances.
In Fuerth , a suburb of Nuremberg, Sieber said Chinese toymakers were also being hit by rising wages and the disappearance of subcontractors.
Sieber said his brands expected to raise prices this year 5 to 10 per cent and were only growing sales outside of Germany. Domestic German retail sales are in a slump. Other group brands include Eichhorn , Tamiya and BIG.
Sieber said recalls of toys by Mattel of the United States had been negative for the whole industry and tighter safety checks planned by the European Union would also increase costs.
He said the newly acquired factories would make more than half the group's products. Out of 370 million euros (548 million dollars) in world sales last year, two thirds were outside Germany.