Futian Industries: Close To PRD Factories And Move To Yangtze River Delta

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Regarding the reasons for the relocation of factory buildings from the Pearl River Delta to the Yangtze River Delta, Zheng Huixian, a manager of Futian industrial communications and investor relations, told the first financial daily that it is not only the reason of cost, but also the comprehensive consideration from many aspects. The establishment of a new factory will enable the group to increase its capacity in a timely manner and provide huge potential development opportunities.

As for the location of East China, the main reason is that the labor force in East China is more stable and less tense than Southern China.

At present, the new factory is located in the economic development zone of Yancheng City. It occupies several geographical advantages and can more conveniently connect more major cities, such as Jiangyin, Shanghai and other places within 4 hours. Convenient pportation provides logistics advantages.

"In addition, the Yancheng City government has an open attitude towards foreign investment and offers preferential policies to foreign-funded enterprises that are developing locally.

Textile dyed fabrics manufacturers use large quantities of water, power and water discharge capacity. Therefore, whether the local government supports manufacturers adequately is also an important factor for the group to consider whether it can develop in the area.

Zheng Huixian said.

Futian industries located in Guangdong Dongguan Fu'an textile printing and dyeing Co., Ltd. (hereinafter referred to as "Dongguan Fu'an") has been closed before the outbreak of the financial crisis and was pferred last year.

The company had a staff of up to more than 9000 at its peak, and there were more than 4000 people before the big layoffs in early 2008.

Due to the discharge of printing and dyeing wastewater, Fu'an, Dongguan, was punished by the local environmental protection department, and was fined 210 thousand yuan by the Guangdong provincial Environmental Protection Agency. At the same time, the Dongguan Environmental Protection Bureau recovered the company's sewage charge of about 11000000 yuan.

Fukuda industry pointed out that the relocation of the new plant to Yancheng is to promote industrial pfer, not because of pollution checked and closed.

Due to the deterioration of the international economic situation and the market downturn, Fu'an, Dongguan, has suffered huge losses since the second half of 2007. The production and operation is very difficult. It has been unable to afford the huge organization structure and personnel.

In recent years, due to the rapid increase of production costs in the Pearl River Delta, the shortage of water power, the shortage of land, and the continuous improvement of the threshold of environmental protection by the local government, the comprehensive cost has risen sharply.

Some of them shift from the Pearl River Delta to the Yangtze River Delta.

Comparatively speaking, the overall production cost of the Yangtze River Delta is slightly lower than that of the PRD.

This year, many provinces and municipalities are raising the minimum wage standard. The overall increase in Guangdong is higher than that in the Yangtze River Delta.

The Yangtze River Delta is a collection of famous brands of textiles and clothing, such as YOUNGOR, Shan Shan, Hong Dun, and Lusa, while Guangdong textile and apparel are mainly processing trade, and relatively lack of independent brands.

Zhu Sujun, assistant president of Ningbo Shanshan Limited by Share Ltd (600884.SH), told an interview with our reporter that this year, with the rapid growth of domestic sales and the rise of export orders, some fabric suppliers even appeared to be in short supply. Many domestic clothing brands were fighting for raw material channels and production lines with export orders. Because the retail prices of domestic brand clothing were good, the price of brand manufacturers to factories was higher than that of processing trade orders.