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    Spinning Enterprise "Life And Death Speed" &Nbsp; Search For Upgrading Road

    2011/7/14 9:56:00 64

    Spinning Enterprise Life And Death Speed Escalation

    After the roller coaster of cotton prices, the domestic textile enterprises are facing severe tests, which are constrained by many factors, such as rising labor costs, shrinking foreign trade orders, weakening domestic demand and financing difficulties.


    Reporter survey found that since the Spring Festival, textile enterprises in China's foreign trade predicament is beginning to show, since May, the situation has further deteriorated.


    Rising costs and declining orders


    "Affected by the European and American economies, the sales volume of products has declined to an inevitable trend. The reduction of orders for some enterprises is expected at 30%~40%."

    Wang Yun, chairman of Su Pai Garments Co., Ltd. told our reporter.


    Because China's textile industry relies heavily on exports, some enterprises

    Foreign trade order

    30%~40% accounts for the total volume of orders, and the reduction of foreign trade orders has great impact on these enterprises.


    A number of textile industry executives told reporters that the drop in orders brought business pressure to the enterprises.

    "The foreign economic situation is not very good. We have shifted 50% of our foreign trade orders to China."

    Baoding Ji Hongxing Clothing Co., Ltd. uniform factory director Xiao Guoxin told this reporter.

    Collection Hongxing clothing is the largest garment manufacturer in Hebei Province, and its products are sold to many countries such as Russia, Europe and America.

    In order to reduce losses, Baoding Ji Hongxing's practice is to pfer some low-end foreign trade orders to domestic sales, while retaining high-end orders with larger profit margins.


    On the other hand, the rise of costs is also suffering from textile enterprises.


    The first is the rise of raw materials.

    In order to make garments.

    cotton

    For example, "in July last year, the price of cotton cloth was 1.2 yuan / m, and reached the highest point of 1.9 yuan / m in November, and now it has dropped to 1.7 yuan / m, although it has declined steadily, but it still increased a lot compared with the same period last year."

    Xiao Guoxin told our reporter.


    In addition, the cost of chemical fiber materials is also rising.

    Data show that as of the end of May this year, PTA, ethylene glycol and other chemical fiber raw materials compared with the same period last year rose faster, or 35%, 50%.


    The increase in labor costs is also a major factor in the cost increase.

    Cai Yanhua, Secretary General of Wujiang textile chamber of Commerce, told reporters that the labor costs of textile enterprises rose by 20%. At present, the monthly salary of textile workers in Wujiang is between 3500 yuan and ~5800 yuan.

    Xiao Guoxin told reporters that before and after the Spring Festival, he made two salaries for factory workers, and labor costs rose to 40%.


    Under the dual constraints of high cost and declining sales, textile enterprises' profits are further compressed.

    "The average net profit of the textile industry is around 6 points. According to the present situation, the profit may decrease by 30%."


    The downturn of downstream enterprises will affect the upstream industry.

    Xiao Guoxin said that due to reduced orders, he will adjust the product mix and appropriately reduce the quantity of raw materials purchased.

    Baoding set Hongxing Clothing Co., Ltd. has more than 10 raw materials suppliers in Shandong, Jiangsu, Zhejiang and other places, and will cut down 1/3 after the adjustment of the structure.

    Supplier

    。


    Overcapacity?


    Three feet of ice are not cold in a day.

    Although the call for closure of textile enterprises began to soar in May and June, it appears to the industry that it had already appeared in the Spring Festival this year.


    In February of this year, Xiao Guoxin signed a new year's order with foreign customers.

    "Owing to the rising cost, our quotation this year increased by 10%~20% over last July.

    Even so, the price increase of the product still can not keep up with the rising cost.

    Finally, our foreign trade customers are losing nearly 1/3 because they can't accept the price increase.

    "We can't give in," Xiao Guoxin told reporters. "As an order takes 3~5 months to finish, we can't estimate what's going on, as the cost goes up."


    A staff member of the Jiangsu Textile Association told reporters that a subtle change has also taken place in the order of the national clothing industry this year.

    "This year's order will be held in March, 20 days earlier than last year. I find that although many of the franchisees will take part in the order, there are very few orders, which means they have a backlog of stocks."

    The source told reporters.


    With regard to the predicament facing the textile enterprises, in addition to the bad economic situation and the low consumption, another argument is that overcapacity leads to imbalance between supply and demand.


    After the financial crisis in 2008, textile enterprises appeared blowout growth under the promotion of loose monetary policy.


    "In 2009, ~2010 textile enterprises frantically increased investment in equipment, especially when cotton prices rose to two or three thousand tons last year, and some people were lining up to buy cotton spinning machines.

    At that time, it was only six months after the deposit was paid to get the machine.

    Wen Hao, deputy general manager of Jiangsu Hengli Chemical Fiber Co., Ltd., told reporters.


    "From the Jiangsu and Zhejiang chemical fiber industry, the new capacity reached 60% in 2011, and the capacity of Xiaoshan in Zhejiang has increased by 2 million 800 thousand tons on the basis of the original 4 million 500 thousand tons, and the capacity has increased significantly. Our relevant statistics show that domestic and foreign demand has not increased significantly. How to digest these products is a very serious problem."

    Shen Bin, deputy director of Wujiang SME Bureau, said in an interview with the media.


    In fact, textile enterprises are facing more than just domestic competitors. Because of the appreciation of the renminbi and the rise of labor costs in China, China's advantages as the world's factory are no longer available. Vietnam, Indonesia and some African countries will become new competitive rivals for Chinese textile enterprises.

    "There are many situations where some large foreign enterprises purchase cotton yarn in China and get them to do weaving in other countries."

    Xiao Guoxin told reporters.


    However, there are still experts who hold different views on overcapacity.

    Wang Qianjin, chief analyst of the first textile network, told an interview with our reporter that overcapacity is only a relative concept, and the change of demand is the core issue.


    Industrial upgrading is at hand.


    "Behind every crisis is the opportunity of industry."

    Wen Hao, deputy general manager of Hengli Chemical Fiber Co., Ltd. told reporters that "this is a process of industry shuffling, and tide over the sand. Finally, enterprises with strength and advanced capacity will survive."

    Hengli Chemical fiber is the core subsidiary of Hengli Group. Its products are used by brands such as Nike, Adidas, TOYOTA and so on. Hengli Group is currently a large modern textile enterprise with Asia's largest weaving capacity and three national polyester filament production capacity.


    Despite the huge impact of the crisis on the entire textile industry, large companies like Hengli are looking for opportunities for industrial upgrading.


    In the view of Wen Hao, the "roller coaster" phenomenon of cotton prices tends to use polyester products as raw materials.

    "In 2008, the price of polyester was about 18000 yuan / ton, and the price of cotton yarn was 15000 yuan per ton ~16000 yuan. Now cotton prices have risen to 23000 yuan ~24000 yuan per ton, and the price of polyester still lingers around 18000 yuan / ton, which means that as raw materials, polyester can maintain a stable price."

    Wen Hao told reporters.


    "Despite the fact that the textile industry has generally experienced pressure drop in orders and rising costs, our chemical fiber materials are extracted from petroleum.

    At present, international oil prices are further reduced, thus ensuring their own profits.

    Wen Hao said.


    In the long run, the adoption of industrialized synthetic cotton spun materials will be the trend of the times.

    "The area of the land is limited. With the further shrinking of the cultivated land area, people will definitely use land to grow food instead of industrial goods such as cotton, and the price of cotton will be an inevitable trend."


    In fact, some downstream customers have invested the production focus in developing products with polyester as raw material.

    "A customer group in Zhuji, Zhejiang, is making use of polyester raw materials this year."

    Wen Hao told reporters.


    In addition to industrial upgrading, the trend of industrial pfer is also gradually obvious.

    According to the statistics of China Textile Industry Association in the first quarter of 2011, the pace of China's textile industry pferring to the central and western regions has been accelerating.

    Among them, investment in central and western regions has increased significantly.


    "The Midwest is close to the cotton producing area, where enterprises can effectively control local cotton resources and control costs, and on the other hand, the labor costs in the central and western regions are relatively low, so the textile enterprises will move faster and faster to the central and western regions."

    Insiders said.

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