Quanzhou Textile Enterprises Enter Xinjiang To "Get To The Point"

Quanzhou textile enterprises have entered the Xinjiang layout. A few days ago, the reporter learned from official channels that 4 Quanzhou textile enterprises such as Xie Sheng Feng, Hua Feng, Fu Hua and Taishan cloth industry invested in Xinjiang. cotton The agreement between production and marketing and production base of cotton spinning is expected to be signed in the middle of this month. The total investment will be more than 400 million yuan.

　　 Hundreds of millions of dollars are brewing in Xinjiang.

"The contract is ready, and now we will wait for the arrangement of the superior department." A person who is familiar with the investment in Xinjiang investment company told reporters that as early as the beginning of August, the 4 companies had already finalized their initial intention to invest in Xinjiang, and the specific time for signing the contract still needs to be determined in the province. According to the current plan, the 4 enterprises, such as Taishan, Quanzhou, Huafeng, Fuhua, and Xinjiang textile industry, are likely to become the first Quanzhou textile enterprises to invest in Xinjiang. The 4 enterprises are from Changji, Changji, and the total investment of the 4 enterprises will exceed 400 million yuan.

As for the way of investment, according to the above sources, 4 Quanzhou textile enterprises will sign a contract called "cotton production and cotton production base project" with 4 docking enterprises in Xinjiang. The contract will be based on procurement, and the enterprises will have a stable relationship between purchase and sale. The Xinjiang cotton production enterprises should supply cotton to Quanzhou textile enterprises according to contract requirements.

But just purchasing does not satisfy the appetite of Quan. People familiar with the matter told reporters that because the 4 Xinjiang enterprises are state-owned enterprises, the ability to deal with market changes is poor. In the long run, "the next step of the enterprise is to acquire and reorganize Xinjiang's cotton production enterprises." In addition to four enterprises such as Huafeng, a textile enterprise in Jinjiang has also inspected Xinjiang.

Hou Sheng, general manager of Xinsheng Knitting Fabric Co., Ltd. told reporters that he would go to the frontier to explore suitable partners in the near future.

Intended to master raw material resources

Suddenly, the enterprises suddenly became interested in the layout of Xinjiang, due to the pressure brought by soaring cotton prices.

This year, the sustained recovery of the macro-economy has made Quanzhou textile and garment enterprises obtain a rapid growth period of orders. In the first half of this year, Quanzhou's textile and garment exports grew by more than 50% over the same period last year, but many textile enterprises' leaders were "depressed" that the increase in orders did not bring about the same period of profit growth. Among them, the rapid growth of raw materials such as cotton is a headache for many entrepreneurs.

China's cotton price index shows that in early 2009, China cotton The price 328 index is less than 11000 yuan / ton. By August 30th this year, the index had exceeded 18000 yuan / ton, and the price increase was over 60%, even though the price increase was close to 40% compared with the same period last year.

While cotton prices are rising rapidly, downstream textile companies are unable to pass on costs. Federal Sanhe chairman Lin Rongyin told reporters that with the rising price of raw materials, textile production enterprises are facing the dilemma of extrusion at both ends, on the one hand, the rapid rise of raw material prices, and on the other hand, the price of finished products can not grow correspondingly.

The enthusiasm of Quanzhou textile enterprises to invest in Xinjiang cotton enterprises is closely related to soaring cotton prices. Xinjiang is the most important cotton production base in China. Hou Zhen told reporters that facing the cost pressure brought by the rapid rise of cotton prices, the direct integration of upstream cotton resources will be the most effective measure for the downstream textile production enterprises. Once the raw material resources are grasped and the vertical integration of the industrial chain is realized, enterprises can not fear the rise of cotton prices. {page_break}

　 Battle for upstream resources

With the layout of Xinjiang cotton textile base by Chuanhui, it seems that the battle for upstream resources is inevitable, and the competitors that spring enterprises are facing are not just local enterprises in Quanzhou.

Lin Rongyin told reporters that before spring enterprises entered Xinjiang, many domestic counterparts took the lead in entering Xinjiang's investment cotton textile base, and many of them were giants.

According to the information obtained by reporters, this year, the list of textile enterprises entering the layout of Xinjiang did appear in the form of many tycoons, including Jiangsu and Zhejiang capital, China's largest color spinning enterprise, Zhejiang Huafu Holdings Limited and YOUNGOR. While the industry is analyzing the reasons for this big cotton price increase, in addition to the decline in production, the speculation of Zhejiang's idle capital is considered to be one of the main reasons. After this spring enterprise launched the layout of Xinjiang, the two capital will inevitably fight.

As spring enterprises accelerate the penetration of upstream industries, Quanzhou's textile and textile industry is likely to usher in a new round of shuffling. Hou Zhenkan believes that within a certain period of time, the competition between Quanzhou's textile and fabric enterprises has evolved into the competition of the whole industrial chain. "Because the profit margins of the textile industry are very low, the lower the cost, the stronger the competitiveness, and the lower cost is mainly dependent on the integration of resources."

It is under the guidance of this kind of thinking that in fact, as early as a few years ago, the Quanzhou fabric enterprises began to vertically integrate the industry, and marched into the upstream spinning chain and downstream products. However, because the cotton production area was far away from the cotton production area, the enterprises that directly entered the most upstream cotton production link had not yet appeared. The layout of the 4 enterprises also officially launched the bugle of Quanzhou textile and fabric enterprises entering the cotton production link.