China's Cotton Textile Industry Is Facing A Large-Scale Reshuffle.

Influenced by many factors, the production capacity of cotton textile industry in China has been greatly reduced, and the profits of cotton textile enterprises have been reduced, and the industry has entered a large-scale shuffling period.

Reporter survey found that the main task of cotton textile enterprises in China is to carry out strategic pformation from three levels, namely, increasing the rapid reaction mechanism, upgrading technology and equipment, and improving the level of mechatronics.

According to the information released by China Cotton Textile Industry Association, the export growth of cotton textile industry in 2007 was about 15%, 10 percentage points lower than the previous year.

According to the association, there were four unfavorable factors in textile exports last year: the appreciation of RMB continued to weaken the price advantage of China's textile exports; the impact of the reduction of export rebate rate appeared in 2007; the unstable trading environment brought by the restrictions and trade frictions in Europe and America provided an objective opportunity for competitors; the industry still faced the constraints of domestic cotton shortage, long-term dependence on chemical fiber raw materials, excessive use of printing and dyeing, unbalanced energy supply and insufficient labor supply.

According to Lin Houyu, chief engineer of Jiangsu textile industry group, the textile industry, including cotton textile, has entered a large-scale shuffling period, mainly in two aspects: first, the industrial layout is undergoing large-scale adjustment.

The Eastern Textile industry has been moving to the Midwest as a whole. The processing links of Shanghai textile enterprises have almost completely moved out, and some old textile enterprises in the East have begun large-scale relocation into industrial parks.

Two, there are signs of polarization in the industry.

According to statistics, since 2005, Jiangsu textile enterprises have been increasing in total volume of losses, and the total profit is also increasing.

This shows that the profits of the well run enterprises have been further improved, while the losses of the poorly run enterprises are aggravating.

The main reason for the aggravation of some enterprises' losses is that the low level of repeated construction is serious, resulting in vicious competition and declining profits.

The hidden surplus of China's textile capacity is mainly manifested in the low level expansion of low-end links, while in the high-end sector, the main factors hindering enterprises from participating in international competition are backward technology and equipment and lack of independent brands.

In addition to resource, exchange rate, tax rate and other factors, the rapid rise of cotton textile industry in developed countries and neighboring countries has also posed a threat to Chinese enterprises.

India and Pakistan have lower labor costs, land costs and raw material costs than China, so products are more competitive in price.

At present, the quality of cotton yarn of some foreign-funded enterprises in addition to some imported equipment is superior to that of India, Pakistan and Indonesia. The quality of most domestic cotton yarn is inferior to that of India and Pakistan.

In view of the above situation, textile experts suggest that enterprises should carry out strategic pformation at the following three levels.

First of all, enterprises should strengthen management, increase the quick reaction mechanism, and take the route of small batch, multiple varieties, fast delivery and high quality.

Da Ping, director of the human resources department of Wuxi cotton mill, told reporters that in the increasingly unfavorable situation of the external environment for the cotton spinning and weaving industry, there was no way out of the old road of low-level repetitive construction.

In the 90s of last century, the international spinning technology developed on the basis of single machine automation, and continued to develop in the direction of continuous production. In Europe, the total number of spindles employed in Europe's automatic spinning workshop was only 6, while most of the cotton textile enterprises in China employed 200 workers.

At present, the developed countries, represented by the United States, have established a rapid reaction system among retail, garment and textile factories.

After receiving orders from the clothing factories, the textile factories can provide the required fabrics in 12 hours, while the general enterprises in China need more than 12 days.

Wuxi cotton mill has intensified its R & D investment in recent years. It adheres to the route of small batch, multi variety, fast delivery and high quality. It can satisfy customers' needs as far as possible, and the actual profit margin has been improved in 2007.

Since the model of small profits and quick turnover can not be maintained, Wuxi cotton will not expand its capacity in the future, but will focus on customer demand oriented production.

Secondly, the new projects of enterprises focus on upgrading technology and equipment to achieve leapfrog development.

Bai Guohua, director of the Jiangsu provincial economic and Trade Commission's two industry, said that the level of equipment is the basic condition for the competitiveness of the textile industry. Therefore, cotton textile enterprises should invest limited funds in the use of advanced cotton textile technology, and support the use of new and efficient cotton textile technology, automatic doffing spinning long cars, compact spinning technology and coarse and fine combination machines.

For example, the new compact spinning 50 thousand ingot production project of Xinjiang new stock company has introduced the most modern production equipment, the most advanced processing equipment and the most advanced inspection equipment, and directly entered the high-grade cotton textile market, and received a steady stream of orders.

Third, we should gradually improve the level of mechatronics.

According to Xie Ming, President of Jiangsu Textile Industry Association, due to the wide application of electronic technology and computer technology, the international cotton textile technology has developed rapidly in the direction of high quality, high yield, automation and continuity.

Through continuous technological progress, enterprises should gradually improve the level of mechanical and electrical integration of cotton textile machinery, realize on-line monitoring of process parameters, replace automation, continuous and intelligent traditional technology and equipment of cotton textile technology, so as to improve labor productivity and enhance the competitiveness and economic benefits of products.