Cotton Spinning Enterprises In Xinjiang Are Starting Another Round Of Transfer Upsurge.

Xinjiang becomes a hot spot for transfer

This year Cotton price A record high hit the nerves of cotton spinning enterprises, and the battle for cotton resources intensified. Xinjiang, with its advantaged cotton resources, has once again become the focus of attention. Many cotton spinning enterprises are investing in factories in Xinjiang.

The transfer of cotton spinning industry is concentrated in two areas: Shihezi in Northern Xinjiang and Akesu in southern Xinjiang. Shihezi is an important cotton producing area and textile industrial base in Xinjiang, and a large number of well-known cotton textile enterprises have been introduced. At present, the total size of Shihezi's cotton textile has been put into operation and is nearly 3 million spindles. By the end of this year, it is possible to produce 200 thousand tons of cotton yarn per year, 8 million meters of household textiles, 20 million meters of yarn dyed shirts, 8300 tons of towels and 20 million meters of clothing fabrics. In September of this year, Shihezi, Xinjiang, was designated by the China Textile Industry Association as a pilot area for industrial clusters, and was awarded the title of "China's famous cotton textile city".

Akesu is famous for its long staple cotton. The hometown of long staple cotton " In recent years, we have introduced Shandong Lu Tai, Zhejiang giant eagle, Fu Hong, Hongkong Bailong, Xinjiang longitudinal and other cotton spinning enterprises. Akesu will take the cotton spinning industry as a breakthrough, and vigorously develop the following industries such as weaving, printing and dyeing, garment manufacturing. At the same time, we must grasp the cotton industry chain and strive to build a cotton industrial cluster, so that Akesu will become an important large-scale, high-tech and export-oriented cotton textile industrial base in Xinjiang and Western China. The scale of 3 million ingots will be formed by 2015, and the model base will be built from east to west.

At present, the concentration degree of Xinjiang's cotton textile industry has been further improved. It has gradually formed five textile cluster regions, namely, Urumqi, Changji, Shihezi, Kuitun, Korla, Yuli, Akesu, alar and Kashi.

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In August 29th, on the "Zhejiang Akesu economic and Trade Fair", Zhejiang Jie Lai ya Spin Group Co., Ltd. signed a large order of 3 billion 500 million yuan with the Akesu region at one time, and plans to set up a cotton textile project in Akesu. The contract includes 30 thousand tons of towel production base and 200 thousand towels special yarn and line project.

In September 12th, Shandong Ruyi group and South Korea SamSung products (Hongkong) Co., Ltd. jointly invested 2 billion yuan in the "Ruyi spinning" industrialization project held a foundation laying ceremony in Shihezi. The "Ruyi spinning" industrialization project, including the annual production of 6 million meters of high-end worsted fabric items, is equipped with an annual production of 1 million 500 thousand sets of high-end suits, with an annual output of 30 million meters of high-grade dyed fabric and 10 million sets of high-grade non iron shirts. After the project is completed, the annual sales income can reach 4 billion yuan, and the profits and taxes will be 900 million yuan, so as to solve the employment of nearly 5000 people.

In September 18th, Henan Xinye textile Limited by Share Ltd signed a project cooperation contract with alar city, Xinjiang, and built 200 thousand spindles textile mill in Alar Industrial Park. The Henan Xinye textile Limited by Share Ltd plans to jointly set up a joint venture with the Xinjiang production and Construction Corps first agricultural division seven and alar farm to set up a joint venture company. The company will produce 200 thousand spindles of pure cotton combed yarn production line in 2 years. {page_break}

In September 30th, Guangdong's largest foreign trade enterprise, Guang Xin Foreign Trade Group Co., Ltd. signed the investment cooperation framework agreement with Xinjiang Jiashi County People's government and Guangzhou Suihua garment and Textile Co., Ltd., and the three sides jointly invested in the Jiashi County Industrial Park to build an annual production of 200 thousand spindles of high-end cotton textile production and R & D logistics center. It is understood that the project is Guangdong's counterpart support for Xinjiang Kashi area Jiashi county's major investment and aid projects. The total investment of the project is 650 million yuan, the annual sales revenue is 1 billion 500 million yuan, the annual profit tax is 200 million yuan, and the first 100 thousand ingot project is completed by the end of 2011.

In December 6th, the Jiangsu joint development Limited by Share Ltd announced that in order to make full use of the advantages of cotton resources in Akesu city of Xinjiang, a wholly owned subsidiary of Haian, the joint venture of Haian and the Xinjiang Akesu people's government signed a framework agreement on investment in cotton spinning projects. It will invest 200 thousand yuan in the textile industry park of Akesu City, with a total investment of 600 million yuan.

Policy guidance to promote industrial transfer

Whenever it comes to the advantages of cotton spinning industry in China, Xinjiang is always an important area. Xinjiang has always had the resource advantages of developing cotton textile industry, but it is suffering from the lack of technology, capital and talents for developing cotton textile industry. Meanwhile, the mainland cotton textile enterprises are concerned about cotton resources in Xinjiang. Many enterprises hope to develop in Xinjiang. A few years ago, the famous enterprises in Yida, YOUNGOR and other famous industries opened their branches to Xinjiang. This is undoubtedly the potential of Xinjiang to develop cotton textile industry.

In from May 17th to 19th, the central Xinjiang work forum was held in Beijing to build Xinjiang with the national strength. Prior to that, in from March 29th to 30th, the National Working Conference on counterpart support for Xinjiang was held in Beijing. The meeting called for further support from the central government to Xinjiang, mobilizing the strength of all parts of the country and fully implementing counterpart assistance to Xinjiang. The textile industry readjustment and revitalization plan, promulgated in 2009, clearly pointed out that we should strengthen cooperation between the mainland and Xinjiang, build Xinjiang's high-quality cotton yarn, cotton and cotton textile production base, and build Xinjiang into a base and regional international trade center relying on the export of textiles and clothing from the mainland to Central Asia and Europe. The guidance of these policies has provided unprecedented opportunities for the development of Xinjiang's textile industry.

In order to better attract mainland enterprises to invest and develop cotton textile industry in Xinjiang, Xinjiang has adopted a series of preferential measures. The Xinjiang Autonomous Region government has proposed that in the next few years, Xinjiang will focus on the construction of textile towns, parks and trade centers, and encourage and guide projects and enterprises with high technology content, low resource consumption, less environmental pollution and a certain economic scale in the textile industrial city and industrial parks. In addition, it will provide fast, convenient and efficient services in land, project construction management, capital loan, raw material guarantee, energy supply and taxation, and speed up the process of attracting the textile industry in the eastern region.

The process of integrating cotton resources has also been speeded up in various parts of Xinjiang, providing protection for the foreign enterprises to invest in the cotton textile industry. They actively guide qualified cotton purchasing and processing enterprises to develop cotton textile industry downward and extend the cotton industry chain. For newly built or expanded cotton textile enterprises, cotton processing and purchasing resources should be allocated according to production scale and equipment level. Encourage and guide cotton textile enterprises and existing cotton ginning production enterprises to restructure their assets. We should give liquidity loans to enterprises temporarily encountering difficulties in operation, and give full play to the role of Guarantee Corporation in small and medium-sized enterprises, and support cotton textile enterprises to purchase cotton and increase their reserves of raw materials. In addition, Xinjiang cotton textile enterprises also increase investment in technological progress and technological transformation. Governments around the country encourage enterprises to implement mergers and reorganization, enhance support for small and medium-sized textile enterprises, and enhance the enthusiasm of mainland enterprises to establish spinning, weaving and deep processing production bases.

Industry review {page_break}

Du Yuzhou, President of China Textile Industry Association: Although the product structure of cotton textile industry has been greatly improved in recent years, there are still many problems at present, such as the rising cost of raw materials and labor, the increasing cost pressure of textile enterprises, the obvious trend of polarization of industries, and the inefficiency of enterprises, which restrict the development of the industry. Due to rising costs and environmental constraints, China's textile industry has already seen the trend of industrial transfer. As a western cotton producing area and a high quality cotton production base, Xinjiang has become a hot area to undertake the transfer of the cotton textile industry in the mainland under the background of Xinjiang's great construction, opening up and great development. It is hoped that the textile and textile enterprises with relatively mature textile and economic development will have a better understanding of Xinjiang, invest in factories in Xinjiang, increase investment in knitting, weaving, clothing, home textiles, printing and dyeing and industrial textiles, and form a complete textile industry chain in Xinjiang.

Xu Wenying, vice president of China Textile Industry Association and honorary president of China Cotton Textile Industry Association, Xinjiang: located in the west, it is a major cotton producing province and a high quality cotton production base. The mainland, especially in the eastern region, has become an indisputable fact that the relative surplus of production capacity, the change of investment environment and the increase of labor costs have become an indisputable fact. The development of China's textile industry has reached a critical historical period of structural adjustment. This large-scale aid to Xinjiang has brought good opportunities for development. We hope that the textile economy will develop relatively mature provinces and cities to mobilize local textile enterprises with strong strength to invest and build factories in Xinjiang, increase investment in knitting, weaving, clothing, home textiles, printing and dyeing and industrial textiles, first Digest about 400000 tons of cotton yarn locally, and form a complete industrial chain of textile industry in Xinjiang, thus producing high-end textile products with high added value and earning more profits.

Industrial relocation is not a simple move.

Industrial transfer is not simply to move Eastern equipment to the central and western regions. Enterprises should upgrade the industrial level in the process of transfer and make industrial transfer an opportunity for technological innovation. The example of low level capacity transfer is not. In the 90s of last century, some enterprises simply transferred the equipment to Xinjiang in the industrial transfer of the "east to West shift" which was called for by the state. After several years of implementation, it was proved that none of these equipment was profitable. For the textile industry, eliminating backward production capacity is the top priority of the industry upgrading process. Industrial transfer is a great opportunity for enterprises to eliminate backward equipment.

The textile industry adjustment and revitalization plan put forward clear requirements for the industrial transfer and undertaking transfer of the textile industry. We should encourage the central and western regions to "give full play to their advantages and actively undertake", but at the same time, we must strictly guard against the transfer and expansion of low level production capacity. For the eastern region, when the industry is transferred, it also takes the "unable to transfer backward, high energy consumption and high pollution technology and equipment" as the specific requirements for undertaking. Therefore, enterprises should make full use of the opportunity of industrial transfer to introduce advanced equipment and speed up the pace of industrial upgrading.

In recent years, a large number of outstanding mainland cotton textile enterprises, such as Yida, Lu Tai, YOUNGOR, Australia ocean technology and other more than 20 well-known textile enterprises settled in Xinjiang, so that the quality of Xinjiang textile enterprises as a whole has risen. Now, Xinjiang's new equipment has accounted for 80% of the total equipment, which is higher than the national average. In recent years, Xinjiang's textile industry has achieved remarkable results every year, and exports have also soars.

However, the road to change is not smooth sailing. Because the industrial supporting environment in Western China is far different from that of the coastal textile and garment enterprises, some of the "daughter-in-law" who are far away from marriage feel that they are not suited to the "husband's family".

First is the lack of a complete industrial chain. Although Xinjiang is rich in cotton resources, the industrial chain is incomplete at present. If the cotton yarn is not digested locally, it still needs to be transported back to the East. In addition, there is a big gap between Xinjiang's industrial supporting environment and coastal areas. This makes the textile enterprises in the West have a big discount on the rapid reaction. Some enterprises that are characterized by "small batch, multi variety and fast delivery" are hard to develop in the West.

In addition, the low labor cost is one of the factors that attract the textile and garment industry in the coastal areas to move to the central and western regions, but the fact is that the untrained local labor force is very difficult to meet the needs of the production of enterprises. The loss of personnel, the shortage of skilled workers and the shortage of senior technicians have made some textile and garment enterprises who have come to invest in Xinjiang in the predicament of "having orders for their products and producing skilled workers". With the increasing number of cotton spinning enterprises to invest and build factories in Xinjiang, the shortage of skilled workers will still be a difficult problem for them in the short term. {page_break}

Industry Review

Sun Weiting, chairman of Huafu color spinning Limited by Share Ltd: Xinjiang has abundant natural resources and low cost of resources. Xinjiang is the lowest cost area for developing cotton spinning industry in China, and is the best area to undertake industrial transfer. But the difficulty of development in Xinjiang is the relative scarcity of human resources. Therefore, investment in Xinjiang can not be a transfer of low level equipment and technology, and a high starting point and high efficiency must be achieved.

He Xingrong, chairman of Zhejiang Xiong Feng holding group, said: Xinjiang has abundant cotton resources, and the price of coal and electricity is cheap, which can reduce the production cost. However, enterprises must not blindly shift and blindly go on projects. They must determine the scale of production according to their own sales, and pay more attention to the establishment of sales network.

Feng Liming, deputy general manager of Beijing Jing cotton textile Refco Group Ltd, Shihezi: the energy competitive advantage of the city is very significant. The overall level of equipment is advanced and the level of field management is high, which is very advanced in the national cotton textile industry. To build the textile city in Western China, Shihezi needs to pay more attention to the extension effect of the industrial chain and pay attention to the promotion of the core competitiveness of trade, brand and design so as to bring the overall benefit into full play.

Wan Gang, general manager of Qingdao Sheng Bao Textile Co., Ltd.: Shihezi has a good foundation for development, sufficient policy and strong stamina. Many enterprises are aiming at this development treasure. If Shihezi can put more energy into the management of labour resources, it will surely produce more benefits.