An Exclusive Interview With Mr. Huang Hefang, Chairman Of Jiangsu Xin Fang Textile Group, Nanjing Wool Market

Mr. Huang Hefang, chairman of Jiangsu Xin Fang Textile Group, is an old friend of our market. In the first wool forum held in the market in 2009, he delivered a keynote speech on "innovating semi worsted products and developing new textile space".

A year later, the market reporter walked into the factory and gave an exclusive interview with Chairman Huang.

Reporter: during the post financial crisis,

Chairman Huang Hefang: at present, there are two leading products of the new Fang Group, namely, woolen and semi worsted, the annual sales volume is about 300 million yuan, and the total output of semi worsted is 80 thousand spindles. The annual production of 8000 worsted yarns is 8000 tons, with annual sales volume of 4 billion yuan, becoming the largest semi worsted production base in China.

In the face of the impact of the international financial crisis beginning in the second half of 2008, the new Fang Group has maintained rapid and healthy development through accelerating industrial pformation and upgrading, technological pformation, and implementing new investment across industries.

Sales revenue reached 580 million yuan in 2009.

With the improvement of the overall economic situation, the development of the new Fang Group is very fast this year, with an increase of around 50% per month.

At present, the annual targets set out at the beginning of this year have been completed, and the sales volume is expected to reach 1 billion yuan this year.

Reporter: May I ask if the textile raw materials have been rising rapidly in the context of the rising global resource commodities? What do you think is the reason?

Chairman Huang Hefang: Although the financial crisis has gradually gone, but the global economy has not embarked on the road of healthy development.

The United States announced the possibility of restarting quantitative easing monetary policy, making the global capital market rise like a stimulant.

The US's two economic stimulus plan has printed the US dollar, leading to the global currency depreciation and the high inflation rate of the emerging economies.

Speculative forces, such as the depreciation of the US dollar, liquidity and inflation expectations, have taken the lead in the market.

In addition to these external causes, textile stocks are depleted and demand restored after the financial crisis.

At the same time, the demand for textiles in emerging countries such as China is also increasing, resulting in a great increase in demand for raw materials.

At this time, enterprises can only do raw materials inventory, and now our indoor garage is used to store cotton, viscose and other raw materials.

However, as far as I know, cotton prices are rising or foreign investment drivers. In fact, global cotton production is basically balanced in addition to China's 50% increase in output in the United States due to climate and Pakistan's flood reduction.

I expect cotton prices will fall next year. For one reason, the high cotton prices this year have made cotton growers increase their enthusiasm for cotton production and increase their output. Two, due to the high price of raw materials, the structure of products will surely be adjusted, and raw materials should be shifted to low-grade or low price alternative fibers.

Reporter: we all feel that the future of India and other emerging processing countries will pose a threat to Chinese textile enterprises. Do you think so?

Chairman Huang Hefang: I think there is a threat in the low end of the future.

But the labor quality and management level of these countries can not be compared with that of China.

In terms of semi worsted, India has not yet mastered this technology.

Even if mastered, there will be a certain gap between Chinese enterprises and the production rate.

It is the west to undertake industrial pfer, and workers do not want to go out to work. The labor crisis in coastal areas is perplexing the development of enterprises, but sometimes it is also a good thing. Before the 400 workers in the spinning workshop, through technical pformation and increasing the wages of workers, 300 people can also complete the task satisfactorily and improve the production efficiency.

Reporter: what are your plans for the future development of Xin Fang?

Huang Hefang Chairman: for the future group "three carriages" one of the woollen fabrics, our plan is to carry out technical pformation in the future, not to expand the scale.

This year, another factory was invested in Anhui. With the upgrading of industry, some of its capacity will be pferred to Anhui.

In the future, the development of the group will focus on two aspects: semi worsted and pugg machinery: the semi worsted fabric, which is based on the current production capacity of the 80 thousand head of the group headquarters, will be able to form a semi worsted scale of 180 thousand spindles next year. The annual sales volume of only half worsted can reach about 800 million yuan. While the Puge mechanical pressure vessel project, we expect that the sales target can reach more than 60 million yuan by the end of this year, and the sales target will be more than 200 million yuan next year. On the basis of the first phase, next year, we are also going to start the construction of the two phase project of Puge machinery in the second half of the year, and we plan to build another 15000 square meter standard factory building and increase the annual production capacity by 8000 tons.

Although the interview time is very short, reporters can feel from Huang's chairman's words that the new Fang Group has always been developing the concept of scientific and technological innovation and deepening management, taking industrial pformation and upgrading, and cross industry as the main line of development, so as to integrate the advantages of scale, technology and development.