Development Report Of Shandong Textile And Leather Industry

Shandong province is a major textile Province in China, and also a key production base for China's textile and clothing industry.

Shandong textile industry not only occupies a leading position in the same industry, but also plays an important role in the economic development of the province.

In recent years, under the pressure of strengthening national macro-control and increasing international trade frictions, Shandong textile industry has made great achievements in its efforts to innovate, dare to practice and overcome difficulties.

However, with the successive expiry of the textile agreement between China and Europe and the United States, and the impact of a series of domestic and international factors such as the rising price of international raw materials, the fluctuation of RMB exchange rate and the adjustment of the export tax rebate policy, Shandong textile industry is also facing great challenges.

In order to fully understand the development of textile industry in Shandong in recent years and grasp the problems encountered by enterprises in production and operation, I have done follow-up research on related situations recently.

1. Overall development of Shandong's textile industry

At present, there are 4226 textile enterprises in Shandong province. In recent years, these enterprises are keeping up with the trend of the times, based on innovation, promoting development, increasing investment in capital and technology, speeding up the upgrading of industrial structure, and striving to improve their ability of independent innovation, and have achieved certain results.

(1) steady growth of textile production in Shandong

In 2007, the textile and garment industry in Shandong was faced with a lot of factors, accelerating structural adjustment, striving to improve the competitiveness of enterprises, and moving out of a sound and fast development path.

According to statistics, the production and sales rate of textile and garment enterprises above Designated Size in Shandong has reached 98.3%, and sales revenue has reached about 460000000000 yuan, up 29.7% over the same period last year.

The industrial added value reached about 110000000000 yuan, an increase of about 25% over the same period last year, a profit of about 26 billion yuan, an increase of 40%, and an export earning of 13 billion 810 million US dollars, an increase of 12.5% over the same period last year. The realization of profits and taxes was about 43000000000 yuan, up 34.8% over the same period last year.

All textile industries in Shandong province have realized profits.

(two) obvious adjustment of export structure

The steady development of production ensured the sustained growth of exports.

In 2007, Shandong textile and garment exports maintained a two digit growth, with a total export volume of US $13 billion 810 million, an increase of 12.5% over the previous year.

At the same time of export growth, the structure of export products is improving day by day, and the export products are further optimized.

Deep processed knitted garments and cotton knitted fabrics have increased rapidly, and exports of primary products have declined.

From the perspective of export commodity structure, the textiles and clothing exported to Shandong in 2007 were mainly represented by high-end knitted garments and cotton knitted fabrics.

Among them, knitted apparel exports 2 billion 370 million US dollars, an increase of 16.2%, accounting for 16.3% of the total export value; cotton cloth exports 3 billion 460 million US dollars, an increase of 15.7%, accounting for 23.8% of the total export value.

Low profit margins of primary textile products, coupled with appreciation of the renminbi, adjustment of national policies and rising prices of raw materials, have led to a decline in exports.

Leather clothing declined considerably, and exported 220 million US dollars in 2007, down 31.4%.

Exports in emerging markets are growing rapidly.

In 2007, while maintaining steady growth in textile exports, Shandong port's textile exports to emerging markets such as Africa, ASEAN and Oceania increased rapidly, laying a good foundation for Shandong textile enterprises to find new market growth points.

The export of private enterprises has maintained rapid growth and has become a new force for export earning.

In 2007, private textile exports amounted to 3 billion 600 million US dollars, an increase of 36.2%, higher than that of the province's export growth of 9 percentage points, accounting for 26.1% of the total textile and clothing exports in Shandong, an increase of 4.6 percentage points over the previous year.

The rapid rise of private enterprises reflects not only the growth and growth of local enterprises, but also the strong vitality of textile export in the future.

(three) the rise of independent brands

With the change of the domestic market and the increasingly fierce market competition, Shandong enterprises have realized the importance of brand building, and the original business mode is quietly changing.

In the past, Shandong textile enterprises mostly made OEM for foreign famous enterprises. After the development in recent years, while relying on the introduction of advanced technology, enterprises' innovative consciousness has been strengthened, some enterprises have successfully pformed, and gradually built their own brands, and have gained more and more recognition from the market.

For example, the success of Rutai's own brand "gray" has been gradually revealed. In 2007, the export of textile and clothing brand led by the "series of products" has increased significantly. The former URI Japanese stock company, which has made OEM production in a famous American enterprise, has quietly completed its pformation. Its self developed "Fu Shi" towel series has been listed as "China's famous brand", and its products sell well to more than ten countries and regions such as Japan, the United States and Europe. At the same time, the company has become the sole licensed dealer of the 2008 Olympic Games towel blanket products, and has become the largest domestic production enterprise with the largest export volume and the largest export volume of household textile companies.

Textile enterprises in Shandong are making full efforts to create their own brands through independent innovation.

Gradually pformed from "foundry base" to "independent R & D", and through the pformation from "made in China" to "created in China", Shandong's textile industry is rising with a new look.

(four) textile technology leads the whole country.

In recent years, on the basis of the original competitive advantage, Shandong textile enterprises have actively explored and promoted major scientific and technological progress, accelerated independent innovation, and promoted industrial upgrading, and made significant breakthroughs in key technologies and technologies that have great constraints on the development of enterprises.

A number of advantageous enterprises have played an active role in promoting technological innovation in the textile industry of the whole province.

Lu Tai textile Limited by Share Ltd's "cotton and linen fabric garment ironing and wrinkle resistant processing technology", Shandong Hailong Limited by Share Ltd, Qiingdao University's "flame retardant and anti melting fiber new materials and textiles research and development", Binzhou Huafang Limited by Share Ltd's "Sheng Ma Wei Wei top grade dress fabric", de Mian's "super high count comfortable home textile series fabric" and other results, a more concentrated display of Shandong textile enterprises comprehensive technology and competitive strength.

A total of 143 scientific and technological achievements were commended at the 2007 China Textile Industry Association Awards for scientific and Technological Awards sponsored by the China Textile Industry Association. Among them, 21 textile enterprises in Shandong province accounted for 14.69% of the total results, and continued to maintain relative advantages in the same industry nationwide.

Two, Shandong's textile industry is facing a grim situation.

Shandong textile industry is facing many difficulties due to factors such as rising global prices of raw materials, exchange rate movements and adjustment of domestic and foreign policies.

(1) a substantial increase in the cost of enterprise production

In recent years, domestic land rents, raw materials, labor and other prices rose, international agricultural products and crude oil prices continued to rise, the textile industry's two main raw materials - cotton and chemical fiber prices rose, the cost of business grew significantly, some small businesses are difficult to digest the rapid rise of costs, on the verge of collapse.

The proportion of low-end products such as yarns and cloth in Shandong's textile and clothing exports is relatively high, which is greatly influenced by the prices of raw materials. The rising prices of raw materials and other products make the products almost lose the international competitive advantage, resulting in the slow development of Shandong's textile and garment industry and low export growth.

(two) the continued appreciation of RMB will increase the risk of export.

The continued appreciation of the RMB is undoubtedly a great challenge to the export oriented textile enterprises. According to experts estimates, the RMB profit will decrease by 7 billion 200 million yuan every 1% appreciation of the RMB, and the continued appreciation of the RMB will increase the pressure on the textile industry.

How to avoid exchange rate risk is a pressing problem faced by Shandong textile enterprises.

Faced with the test of RMB appreciation, the performance of enterprises is different.

It is understood that many large textile enterprises, such as Lu Tai, purchase large quantities of cotton, machine parts and accessories, dyestuff and other materials every year, which can offset the adverse effects of RMB appreciation to some extent.

However, for some enterprises with low added value and relatively small scale, the appreciation of the renminbi is like a cold current. Some enterprises are unable to adjust and organize reproduction in time because of limited technology opening capacity and insufficient operation funds. In this case, the textile industry of Shandong is bound to reshuffle.

(three) the export tax rebate rate will be reduced, further reducing the export space of enterprises.

Since 2006, the state has made a series of adjustments to its export policy, and textile exports have become one of the key commodities of regulation.

In 2006 and 2007, the two reduction of export rebates was another severe test for textile export enterprises.

The reduction of the export tax rebate rate will further compress the profit margins of textile enterprises, which will have a greater negative impact on export oriented enterprises in the short term, so that the profitability of the textile industry will be greatly tested, and the survival space of some small and medium enterprises will be smaller and smaller.

In addition, in September 2007, the adjustment of the national processing trade policy also imposed a large amount of cash flow on the cotton import margin, which caused huge financial burden to the enterprises.

Under various pressures, some big enterprises are trying to find a way to break through by changing the value added to high-end textile exports, and some small businesses with low efficiency may have to lose. If they are not merged by other companies, they will have to quit the industry.

(four) Sino EU and Sino US Textile Agreements have expired one after another, and the uncertainty of international trade has increased.

Since the integration of textiles, the countries and regions led by Europe and the United States have taken frequent restrictive measures on the export of textile products.

In 2005, after hard negotiations, our country reached a bilateral agreement with Europe and the United States to win a favorable international environment for textile exports.

At the end of 2007 and the end of 2008, the textile agreement between China, Europe and the United States expired, and the international environment of textile exports will be changed. This will be a severe test for Shandong textile export enterprises that have just stabilized.

(five) the main textile market abroad is saturated, and the space for further expansion is limited.

Geographically, Japan and South Korea have been the two main markets for textile exports in Shandong province. In 2007, Shandong exported first, third of Japan's and South Korea's textile and garment exports.

However, the textile market in Japan and South Korea has opened up very early and the competition is fierce. Some of our textiles have been basically saturated in the Japanese and Korean markets, and there is no big increase.

In 2008, China abolished the restrictions on the export volume of the ten categories of textiles to the EU. However, in the past two years, the export volume of the 2 and 39 categories of textiles as Shandong's strong exports to Europe continued to decline, and the utilization rate of the quotas was relatively low, indicating that the European Union market for these two commodities had basically been developed and the market potential was very limited.

It is estimated that Shandong's export to EU textile and clothing in 2008 will not increase significantly.

(six) labor employment and environmental protection requirements are increasingly stringent.

In recent years, China has attached great importance to the reform of labor and environmental protection. The relevant policies have been continuously improved, and the responsibilities of enterprises are increasing.

This year, the new labor contract law promulgated by China has led to a further rise in the production costs of enterprises, and some foreign-funded enterprises have also been evacuated.

At the same time, in terms of environmental protection, social responsibility and other aspects, foreign customers have set up more and more non trade barriers to our textile export enterprises, and most SMEs in Shandong province are not ready or unable to meet, which will also restrict the development of Shandong's textile industry in the long run.

Three. Measures taken by Shandong Province

In view of the external pressure encountered in the development of textile industry in recent years, Shandong province has intensified policies and measures, increased investment in scientific research, improved the development environment, and has taken various forms to attract funds from all sides to support the textile industry, so as to promote the upgrading and structural optimization of textile industry.

(1) clarify the direction of development and improve the industrial chain.

The Shandong provincial government has listed textile and clothing as a pillar industry with key support and development in the outline of Shandong province's new development road to build a strong industrial province.

Relevant departments of Shandong province are organizing and implementing "