Hebei'S Textile Industry Is Facing The Most Difficult Year In The Past 20 Years.

"Now textile enterprises are really spending their time."

Mr. Wu, director of the Sales Department of a dyeing factory in Shijiazhuang, said in an interview with reporters that the survival environment of textile enterprises is deteriorating due to multiple factors such as the subprime mortgage crisis, appreciation of the renminbi, trade barriers and rising costs.

Hebei Textile Industry Association recently released "Hebei textile industry in the first quarter of 2008 operation analysis" describes that 1035 textile enterprises in the province's research shows that Hebei textile industry is facing the most difficult year in the past 20 years.

"This year, our factory has not yet received an export order. At this time in the past year, we have to receive at least 3 batches."

Lin Jian, a director of the export garment processing factory of the provincial capital, has more headaches than Mr. Wu. "Now the factory has been shut down, and it is hard to maintain orders without receiving orders. Many small factories like ours are on the verge of closing."

It is understood that the United States is the largest market for textile and clothing exports in Hebei.

Shijiazhuang customs statistics show that this year, Hebei's textile exports to the United States continued to slow down.

The first quarter only increased by 12.5%, down 4.6% from the end of last year.

Meanwhile, the growth rate of textile exports in Hebei is lower than that in the whole country, accounting for 6.7%.

"Many enterprises are suffering from underemployment and increasing losses."

Wei Yongjun, director of the office of Hebei Textile Industry Association, said that enterprises not only had fewer export orders, but also small orders, increased production difficulties and production costs, and made profits very thin.

It's hard for small businesses to make ends meet.

Changshan textile Limited by Share Ltd mainly produces cotton yarn, grey cloth and other products, which belong to the most upstream part of textile production.

"The reduction of orders from downstream enterprises has a direct impact on our production, sales and profits."

Ma Yunjie, deputy general manager of Changshan textile, introduced the company's 1~4 profit margin down 2.3% in the same period last month.

"I understand that the national cotton textile industry 2/3 enterprises are losing money, and the average profit margin is -0.7%."

The analysis of the operation of Hebei textile industry in the first quarter of 2008 shows that as of the end of March, the total number of deficit enterprises in the 1035 textile enterprises surveyed by the province increased by more than 60% over the same period last year, and 6 of the 10 main textile products of Hebei decreased.

The Provincial Textile Industry Association believes that since the late 80s of last century, Hebei textile industry has undergone the most difficult operation in 20 years since the large-scale textile market reform.

"The EU Directive on PFOS will come into effect next month, which will add to our difficulties."

Mr. Wu said the dyeing factory.

It is reported that Hebei Provincial Quality Supervision Bureau issued an urgent risk warning earlier. The EU Directive on restricting the sale and use of perfluorooctane sulfonate (PFOS directive) will come into effect on June 27, 2008, when the EU market will prohibit the use of PFOS in commodities.

The Provincial Quality Supervision Bureau said that the order will have a huge impact on Hebei's exports to textiles, leather, paper, packaging, dyeing auxiliaries, cosmetics and other products.

PFOS is the most widely used in the textile industry. Any fabric that needs printing and dyeing and finishing needs to be washed by pretreatment. It will contain PFOS.

However, there is no substitute for PFOS in line with EU standards.

The Provincial Quality Supervision Bureau reminded textile exporters to communicate with European importers as soon as possible and intensify the selection, testing and application of alternative products.

PFOS directive is only a difficult problem for textile export enterprises. In fact, there are many difficult problems for textile enterprises to survive.

First of all, in 2006, China's textile export tax rebate rate dropped from 13% to 10%. In June last year, the export tax rebate rate of clothing was reduced from 13% to 11%.

Entering the 2008, the export tax rebate rate will again reduce the rumor again, making textile enterprises more worried.

Secondly, Wei Yongjun said that the impact of the subprime mortgage crisis on the US consumer spending has reduced the import orders in China, and Hebei's exports to the US have continued to decline.

The most important thing is that the accelerated appreciation of RMB has become the most direct and obvious pressure for export textile enterprises.

Wei Yongjun said, "research shows that the profit rate of cotton textile, wool textile and garment industry will drop by 3.19%, 2.27% and 6.18%, respectively, for every 1% appreciation of the RMB."

"In fact, the appreciation of the renminbi is only an inducement.

The problem of overcapacity exists in the domestic textile industry for a long time. Now it is only an outbreak after the accumulation of problems. "

Ma Yunjie believes that a large number of exports of blocked textiles to domestic sales, exacerbated the market competition.

Under such circumstances, the vicious competition among enterprises, coupled with the increase of energy prices and the increase of environmental costs, will eventually push the textile industry into a predicament.

For the current plight of Hebei textile enterprises, the Provincial Textile Industry Association believes that the severe situation will aggravate the textile industry reshuffle. In the first half of this year, textile enterprises will further expand their business difficulties, and suggest that the government departments should give policy support to the textile industry.

Wei Yongjun put forward suggestions to export textile enterprises. On the one hand, enterprises should negotiate with customers as far as possible to adopt non US dollar quotations and settlement methods, shorten the bidding period, advance deposit, hedge and so on, so as to reduce exchange rate losses; on the other hand, actively develop new markets such as ASEAN, Eastern Europe, Latin America and Africa to reduce dependence on European and American markets.

Shijiazhuang customs reminds that textile enterprises should speed up product structure adjustment and pformation and upgrading, increase product added value, and extend to design, brand and service competition.

Textile enterprises themselves have not abandoned themselves, and have increased product mix adjustment and new product development.

Data show that the first quarter of the province's spinning script src=>