China'S Textile Machinery Exports Encounter Cold Currents, Technological Innovation Has Become A Life-Saving Straw

"The volume of orders in the first half of this year has decreased significantly, and next year's list is almost none."

Xu Lin, general manager of Shanghai Pu Yi Import and Export Co., Ltd. ("Pu en Yi") said to the first financial daily.

China Textile machinery and technology import and Export Co., Ltd. (hereinafter referred to as "China Textile Machinery Import and export"), the responsible person also said: "next year, textile machinery exports will drop sharply."

In view of the saturation situation of the domestic spinning machine market, the development of the international market was once regarded as one of the way out for the development of China's textile machinery industry.

China's textile machinery exports amounted to US $1 billion 200 million the year before, and this figure increased to US $1 billion 500 million last year.

But this growth rate has not been extended to this year.

Textile machinery production and delivery cycle takes six months. According to convention, 6 and July are the main time for overseas orders in second years.

However, from the current situation of the two major textile machinery trading companies in the north and south, textile machinery exports also encountered cold currents as well as the domestic textile machinery market.

The import and export of China spinning machines occupy about 10% of the market share of China's textile machinery exports. "Last year, we made 1.2 billion, and this year we can only maintain this level. Next year's situation is hard to tell."

China Textile Machinery Import and export head of the first financial daily said.

And Pny's situation is even worse.

"In order to maintain a certain profit margin, we have chosen to increase the quoted price by 40%, so the number of bills in the second half of this year has been significantly reduced."

Xu Lin said, "last year we exported $42 million in foreign exchange, and this year we expect to have only US $20 million."

According to the analysis of the import and export of China Textile machinery and two heads of Pny, there are two main factors in the cold current of export. One is the recession of the global economy, which leads to the weakening of textile machinery industry.

Take Pakistan, the world's third largest cotton producer, for example, Xu Lin said that 20% of Pakistan's cotton mills were forced to close.

Pakistan was once a big importer of China's textile machinery, but demand declined in recent years.

Another factor is money.

"In the past three years, the renminbi has appreciated substantially against the US dollar. Meanwhile, the main export countries, including Vietnam and Pakistan, have depreciated sharply.

This is a great impact on the textile export industry dominated by US dollar. "

At the same time, the high price of steel will impact the profits of the textile machinery industry.

Under the double pressure of exchange rate and steel cost, some textile machinery export enterprises choose to raise prices this year, but they can not keep the order quantity.

And some of the companies that hold on to their teeth this year have kept their orders this year, but they are still slim next year.

Unfortunately, the adverse factors of domestic textile environment also hampered the expansion of overseas market by textile machinery enterprises.

A business manager of Qingdao textile machinery Limited by Share Ltd under the China Textile machinery company said that the tightening of loans by banks made it extremely difficult for textile enterprises to borrow.

"Our priority now is to return the funds, and sales are secondary."

In fact, when exporting textile machinery, China imports 3 billion to 4 billion dollars annually from abroad.

Imported textile machinery has occupied the high-end market of domestic textile machinery, and is also a relatively lucrative market.

A senior domestic textile machinery trade practitioner told reporters that the technology gap between most of China's textile machinery enterprises and overseas textile machinery enterprises is very large.

"We sell rough steel, and they sell technology.

Therefore, steel prices rise, foreign enterprises can withstand, but we have encountered difficulties in survival.

This person pointed out that some European textile machinery enterprises have chosen to set up factories in China to export overseas while meeting local market demands.

"They settled in euros, so they can circumvent the negative impact of the appreciation of the renminbi."

However, as Xia Lingmin, Deputy Secretary General of the China Textile Industry Association, said, even in the most difficult field of the textile industry in the cotton textile industry, some companies still live in the adversity.

"Because their ancestors have been upgrading and upgrading step by step."

At the scene of the China Textile Machinery Exhibition, the booth and billboards of the East Flying Machine Co., Ltd. are particularly eye-catching.

Zhu Peng, chairman of the company, told the reporters proudly that the company received 60 million yuan of domestic and international orders on the first day of the exhibition.

Pointing to the company's display equipment, Zhu Peng is proud to say: "if we use our equipment to pform 1 million 500 thousand spindles, the efficiency can be increased by 10% to 15%."

The Sino Italian joint venture East flight Ma Jo Li is one of the largest exporters of textile machinery in China. According to Zhu Peng, the company has made two innovations after introducing technology, and now has more than 300 patents in its hands.

Since it is a Sino Italian joint venture company, part of the export products of Eastern flying horse are settled in euros.

Coincidentally, Shanxi Hongji Polytron Technologies Inc, a private enterprise founded by Qiu Yonghong brothers, is also very confident in its technology and future.

"We have completed a series of training and preparatory work before the listing, and we will start listing as early as the end of this year."

Qiu Yonghong told reporters.