China Textile: Textile Enterprises Have Become One Of The Four Largest Grain Enterprises Directly Under The Central Government.

For the domestic oil and fat processing industry, the market structure seems to have undergone tremendous changes overnight. A company that was not familiar to all of us before suddenly broke into the top three industries.

This enterprise is called.

"It's unbelievable to say that a textile enterprise has become the four largest central authority.

In the domestic oil processing industry, the YIHAI KERRY group from Singapore has won the first place with more than about 15000000 tons of annual crushing capacity, while COFCO is expanding its investment and building factories.

What's the courage and path of the China Textile Group?

10 years of incubation

China textile is based on trade. Its predecessor was China.

"China textile has been doing for nearly 10 years," a person close to China Textile Group told reporters, "in 2004, China textile has gone to Rizhao to buy land, first build logistics, and the second is processing project."

But in the middle of April, China's General Administration of quality supervision and Quarantine (AQSIQ) began to discover "red beans" containing red seed coating agents from imported soybeans in China, and ceased the qualification of dozens of foreign companies to export soybeans to China.

Therefore, the plan of China spinning has also been suspended.

Starting from the acquisition of Jiangsu Xinyi grease Co., Ltd. in 2006, China textile is officially involved in the oil processing industry.

However, until 2008, China spinning was confined to the trade of soybeans and palm oil in the field of oils and fats. In the case of "China Grain and oil first case Zhongsheng grain and oil" that shocked the industry, nearly 10 thousand tons of palm oil sold by Tianjin Zhongsheng grain and oil were owned by China textile.

As a result of that case, China Textile Oil Co., Ltd. acquired all the assets of Zhongsheng cereals and oils, and plans to increase its processing capacity to 1 million 100 thousand tons and storage capacity to 180 thousand tons by 2011.

Coincidentally, the expansion of China Textile cereals and oils in the oil processing industry started rapidly in 2008. Especially in 2009, 9 soybean crushing and refining enterprises were successively purchased at the speed of thunderbolt, including Dongguan Ying Feng oil meal company, Shenyang Jin Dou company, Fujian Jinshi and Sichuan Jinshi company, Dalian Lian Wang company, Zhanjiang Hua Nong and Zhanjiang Fu Hong Company, etc., and the processing capacity of 2 other oil enterprises was obtained by lease and commission processing, so that the crushing capacity of the company reached 5 million 600 thousand tons, refining and splitting capacity reached 1 million 800 thousand tons.

The strategic pformation was realized immediately.

Similar to iron and steel industry, China's soybean crushing industry is also a raw material industry.

The processing of oils and fats imported from genetically modified soybeans has accounted for the vast majority of domestic soybean crushing capacity, while China imported soybeans mainly rely on several large multinational grain traders who control soybean industry, port, shipping and other upstream industrial chains (AMD bang jigi Louis Duff).

The traditional grain and oil enterprises such as COFCO are different in the coastal construction and processing enterprises. The choice of China spinning is another way.

"They develop ideas very much like foreign investment in China. First, they set up foreign trade companies, organize supply sources, then expand to the downstream of the industrial chain, invest and acquire processing enterprises," Guo Qingbao, chief information officer of China fat net, told reporters. "COFCO, 93 fat and so on are all set up factories and then go out to buy raw materials."

Perhaps the experience from the cotton textile trade helped the Chinese spinning.

"China textile has always advocated the concept of supply chain, focusing on the control from source to terminal. In their traditional cotton spinning industry, they now have products such as textiles and garments from cotton to the back."

An insider close to China spinning said.

Unlike the concept of "whole industry chain" put forward by COFCO in recent years, the supply chain of China spinning is still on the basis of industry. Around the "food and clothing world" put forward by ourselves, cotton spinning began to get involved in grain and oil, soybeans, and so on, while Cereals, small package oil, food, grape wine and so on were operated at the same time.

In fact, it is the COFCO's "doing nothing" in the past few years, which has made China spinning the opportunity to expand its oil business, and the same opportunities have been provided by foreign grain merchants such as Yihai Jia Li, Jia Ji and Louis Duff.

Reporters learned that in the 7 original business segments of COFCO, grain and oil accounted for only 20% of the business.

One footnote is that the price of edible oil rose sharply in 2007, and the state commissioned COFCO to coordinate, but the weak COFCO failed to shoulder the task.

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So COFCO began its crazy expansion in the grain and oil industry last year and publicized the concept of "the whole industry chain", but it has already given rise to the gap in the rise of China textile.

Another contributing factor is the arrival of the economic crisis.

At the end of 2007, the subprime mortgage crisis began to spread. Insiders told reporters that a lot of capital had entered the market of bulk agricultural products, and the prices had been frying at the same time. In 2008, the crisis worsened, and the fund began to sell in large quantities after the problems appeared.

This has provided the possibility for China textile to pick up the bottom. In addition, at the end of 2007, the state promulgated policies to restrict foreign investment in the domestic oil and fat enterprises.

The ambition of China spinning

In fact, in recent years, despite the restrictions of the state, the expansion of foreign oil in the oil industry has been limited, but it has not stopped. "When they failed, they began to build new products, such as Lai Bao and Jin Guang were building new oil companies. Yihai also secretly built 6000 tons of processing plants in Taizhou.

Although the policy is limited, the local government is enthusiastic, and the local government can set up a written approval before 2007, saying that this is a project before 2007.

People familiar with the matter said.

With the increasing influence of foreign investment on China's grain and oil industry, such as Yihai, Jia Ji and Bunge, the State supports the expansion of central enterprises such as grain, grain reserves and other central enterprises.

At that time, China textile, which was rising in the oil industry, got the central attention and attention.

In November 2009, the joint venture was issued by the national development and Reform Commission, the Ministry of finance, the State Grain Administration and the Agricultural Development Bank of China. China textile is listed as one of the 4 grain enterprises directly under the central government.

Up to now, the oil and fat industry has become one of the two pillar industries of China spinning, and even its operating income has exceeded its traditional cotton textile industry. It is reported that in 2008, its oil and oil accounted for 74.49% of its 26 billion 800 million yuan business income, and its proportion in 2009 1~9 was still 61.81%.

"China spinning, COFCO, these central enterprises will have the future goal of the world's four largest grain traders, have their own ports, fleet, etc., but now can not be done.

On the one hand, the cooperation between multinational grain producers and their origin has been very stable. In addition, the supply of credit, funds, warehousing and chemical fertilizers has been very close, and the threshold for entry is very high, so China Textile and COFCO are still looking for opportunities.

Those close to China Textile Group said.