Wuxi Textile Industry Is Looking Forward To "Rebirth"

For Li Guangming, director of the Wuxi cotton mill, half an hour of dialogue with the prime minister made him unforgettable for life.

On a hot afternoon in early July, Premier Wen Jiabao of the State Council came to Wuxi to understand the survival of the textile industry.

"What is the overall situation of Wuxi's textile industry?"

"This is the most severe year for me in the textile industry in 30 years."

Li Guangming spoke frankly to the prime minister.

The labour productivity and efficiency of Wuxi cotton are among the best in Wuxi and even in the whole country, but the profits in the first half of this year have dropped sharply.

One leaf knows the autumn.

The situation of Wuxi's cotton reflects the plight of the textile industry.

To meet challenges and rebirth is the expectation of many enterprises and the pursuit of Wuxi's textile industry.

The embarrassment of "cloth wharf": nearly 38% of the deficit is in Wuxi. During the Ming Dynasty, it was already known as the "cloth pier".

In the past ten years, through structural readjustment, technological progress and industrial upgrading, Wuxi textile industry has been upgraded in its technical equipment, market resilience and competitiveness, and has become the base for production and export of high-grade textiles in China.

"This is like a basin of cold water that is constantly warming, though it will not burn, but it is very fragile."

Li Guangming made a metaphor in the city's industrial and commercial Symposium.

He thinks that RMB appreciation, export tax rebate reduction, raw material price increase, labor cost rising, tight monetary policy and expanding international trade friction.

The superposition of multiple unfavorable factors has made the textile industry stand out.

From the statistics of the Textile Association of China, the economic growth of the textile industry in 2007 dropped sharply, and the number of deficit companies and losses increased further, with a deficit of 19.46%.

In the first half of this year, the operation of the textile industry was even more difficult to please, with 397 enterprises losing money and 38.43% loss making, especially cotton textile printing and dyeing industry and garment enterprises.

At present, the textile industry in Wuxi is relatively stable in addition to the wool textile industry, and there are other serious situations resulting in the decline in profits and even losses due to increased costs, increased costs and reduced exports.

"Breakthrough" direction: where is the high-end market and the way to improve labor efficiency?

Textile companies seek answers.

Li Guangming's "breakthrough" direction is "two high": expand to the international high-end market, and vigorously improve labor efficiency.

Wuxi cotton can win the market and benefit by improving the technical content of yarn, improving product quality, developing new products with high added value, and exporting products to high-end markets such as Europe and America.

Through management and technical measures to improve labor productivity and reduce the level of employment, in order to digest the factors of rising costs.

The average number of cotton spinning spindles employed in China is 200, with an average of 120 in Wuxi, while only 26 in one cotton, and the labor efficiency is 5-6 times that of the domestic counterparts, reaching the international advanced level.

Wu Zhiqing, the head of the Municipal Textile Industry Association, is more comprehensive.

He analyzed that the Wuxi textile industry should promote the way of Wuxi cotton to high-end extension, improve product quality and labor productivity.

On the export side, Wuxi textile enterprises should adjust their product mix and market structure to meet the needs of diversified markets according to the changes in domestic and foreign markets.

In terms of brand, Wuxi textile products have always been mainly OEM export, and lack of independent brands. Therefore, we should vigorously implement the brand strategy.

In terms of technical pformation, textile enterprises have slowed down the pace of technological pformation in recent years. This is a very dangerous signal. We should increase the pace of pformation and enhance the competitiveness of enterprises with innovative ideas.

At the same time, textile enterprises should actively "go out" to go abroad and the Midwest and the cities with labor advantages, so as to reduce labor costs and avoid trade barriers.

To solve difficulties: to make efforts to become a "service for enterprises and help enterprises to solve problems" is in hot progress.

These days, the relevant departments of the Municipal Economic and Trade Commission are often empty, and most of them are deeply involved in business services.

The head of the operation Department of the Municipal Economic and Trade Commission said that the textile industry is one of their most recent research hotspots. In the second half of this year, the government is expected to introduce relevant policies to help the textile industry tide over the difficulties.

From the perspective of our city, we are conducting a comprehensive survey. After summarizing and analyzing the survey results, we will promptly release relevant support policies.

Capital is another difficult problem faced by textile enterprises.

As a small profit industry, the textile and garment industry is often regarded as a high-risk industry by the financial sector. It has tightened control over the loan policy. Under the current economic situation, the fund seems to be more difficult.

The head of the City Textile Association expressed the hope that banks would appropriately relax the scale of loans and the time limit for repayment.

The Municipal Economic and Trade Commission has revealed that our city is expected to lend interest to related textile enterprises and help enterprises to reduce financial costs to a certain extent.

Environmental protection has become a pillar of textile enterprises.

At the recent Industry Association Forum held in our city, the City Textile Association put forward suggestions that governments at all levels should concentrate on adopting "three lift" or market operation methods to build sewage treatment stations that meet the discharge standards and strictly manage them, and actively solve the problems of survival and development for textile and dyeing enterprises.

The municipal leaders agreed with the suggestion, and urged the printing and dyeing enterprises and the printing and dyeing industry to concentrate on the construction of sewage treatment stations that meet the discharge standards.

In this "general mobilization", the textile industry in Wuxi is actively moving towards a new life.