Jiangsu Textile And Leather Enterprises Are Facing Collapse

Since last year, the textile industry in Shengze town has changed suddenly. The door of a factory's factory is closed. From the outdoors of the fence, the workshop is empty. It seems that the factory has been shut down. The factory doorman told reporters that the factory has been shut down. Enterprises like this do not stop on this road, but the textile industry has become sluggish.

Made in China, is the pride of the Chinese economy and the key link in the global economic chain. With the cheap and cheap Chinese goods, China's GDP has climbed the fourth place in the world. Foreign consumers enjoy a low price and high consumption life. However, in the environment of labor force, raw material prices rising, RMB exchange rate rising and bank interest rates rising, traditional Chinese manufacturing has also encountered unprecedented pressure. Starting today, we have a group of reports, focusing on the new problems encountered by Chinese manufacturing industry and looking for a new way of manufacturing in China.

Today, let's go to the silk capital - Wujiang, Jiangsu to see the textile export enterprises there.

Where is the silk capital "sleepy"?

Located in the southernmost Taihu basin of Jiangsu Province, Shengze Town, Wujiang, is one of the four largest silk cities in China with Suzhou, Hangzhou and Huzhou. It has tens of thousands of sets of leading production facilities at home and abroad. The town produces 6 billion meters of textile products every year, which is equivalent to producing one metre of fabric for every person in the world every year. The ancient silk capital has become an important world-class textile production base.

But since last year, with the accelerated pace of RMB appreciation, the textile industry of Shengze town has changed suddenly. In the small town of Shengze Town, small and medium-sized textile enterprises gathered together, the original traffic was no longer. Only one or two cars were seen passing through the wide streets. The door of a factory's factory was closed. From the outdoors of the fence, the workshop was empty and seemed to have been shut down.

The factory doorman told reporters that the factory was shut down.

Enterprises like this are not only on this road, but also in a factory building not far away.

How big is the impact of Shengze on the silk capital? How many enterprises are forced to stop production now?

Reporters in Wujiang Textile Industry Association learned an astonishing figure.

Miu Hangen, vice president of the textile industry chamber of Commerce: "hundreds of production shutdowns."

Miu Han root vice chairman said that the current small and medium-sized enterprises discontinued production accounted for about 1/3 of the total number of SMEs, most of these products are relatively single, relatively small scale.

Miu Hangen: "survival may be more difficult."

Before entering the door of textile enterprises, journalists can feel the impact of the textile industry on Wujiang. If it is not for their own eyes, it is hard to imagine that this prosperous silk capital will become so cold and cheerless.

For a long time, textile and clothing are the best selling Chinese products, but how can these textile enterprises in Wujiang not be able to go on?

Then look inside the enterprise.

Because of the news that the production stopped coming to the bank to recover the loan, the local small and medium enterprises ceased to accept interviews with reporters. For this reason, the reporter found a small and medium-sized textile enterprise which is still producing - Han Tong Textile, compared with many small and medium sized enterprises that have stopped production, Han Tong's life is slightly better, but the situation is not optimistic. Qian Aling, general manager, told reporters that in the case of RMB appreciation and export tax rebate reduction, their profit margins have been smaller and smaller.

Qian Aling, general manager of Wujiang Haotong silk jet weaving mill, "now that the export is going on like this, I am sure that the general people will tell me to do it. I don't want to do it. You don't make profits and do anything."

Not only is the profit space constantly squeezed, but also because of the unclear prospect of RMB appreciation, Qian A Ling just refused a large list from the United States in the first two days. If the list is enough for several months, but Qian Aling is afraid to pick up the bill.

Qian Aling: "to order a year, then I can't make a reservation. Today may be the order that was laid down in May 1st. It may be done in May 1st next year, not to make money, but to lose money. The exchange rate of the US dollar is seven point three, seven point one, probably to six point five. According to the same time, it is seven point three or seven point one. Is it not six point five?"

Qian Aling did this because many of the local companies have already eaten such a loss.

Now local textile enterprises have refused to accept long-term letters of credit from foreign partners to strive for short-term settlement and avoid the negative impact of RMB appreciation.

In addition to the appreciation of RMB, another great pressure faced by enterprises is the rise of labor costs. The average wage of Han Tong workers is more than 1800 yuan. Although the market is not good, the wages of workers must be guaranteed.

Under such circumstances, many enterprises stop production in Qian Ling's view, is a helpless but also a wise choice.

Although Qian Ling Ling did not make a decision to stop production, most of the textiles that are still running by Han Tong are imported from abroad in recent years, which have advanced international level looms. This is a production line that uses the sizing process and produces low-grade products. After the Spring Festival, it has been stopped.

Qian Aling hopes to survive this period of time. In Wujiang, many enterprises are holding teeth like Qian Aling's Han Tong.

Xu Ming, Secretary of the Wujiang Municipal Committee of the CPC, said: "it is to stop some of the funds, part of it will continue to produce, its main technical backbone personnel to retain, its workers to retain, because it has a problem of customer credibility."

Sheng Hong Group reporter learned that more than a year ago they decided? Script src=>