The Development Of The Footwear Industry Is Stagnant, And The Tanning Industry Has Suffered Setbacks.

Because of the influence of many factors such as overcapacity and sluggish development of downstream footwear industry, many leather enterprises, especially cattle and two layers of leather production enterprises, have been unable to continue. At the same time, production capacity is beginning to concentrate on large enterprises. The polarization of leather industry in Quanzhou accelerates further.

Industry overcapacity is the main reason for the overcapacity. Leather manufacturers are divided into two types, namely, the first layer of leather, the leather of the top layer, the synthetic leather and so on. The leather enterprises in Quanzhou are mostly two tier leather production enterprises.

According to the relevant person in charge of the Quanzhou Leather Association, influenced by factors such as rising labor costs, RMB appreciation and environmental protection policies, the two layer leather tannery enterprises in Quanzhou began to show a relatively low level since the beginning of this year. Especially after the adjustment of the export tax rebates in July, due to the reduction of orders from many shoe factories in Jinjiang, the two tier leather tanneries in the upper reaches of the market were even worse. "Many enterprises began to switch production or simply stop production."

Jinjiang Tenghua tannery Co., Ltd. is a large leather enterprise with two layers of leather in Anhai's tannery city. Xu Qingsi, general manager of the company, has a personal understanding of the tannery industry's downturn. "In the past few years, many enterprises have been working overtime day and night, and now this situation is hard to see again. Obviously, orders have been reduced a lot."

However, Xu Qing Si does not agree with the view that the industry is sluggish due to the national macro-control.

In his view, the industry downturn, of course, is due to the reduction of orders from downstream shoe companies, but most of them are caused by overcapacity. "When the market was good the year before last, we all rushed to expand production capacity, which has greatly exceeded the demand of the market."

When there are worries that many enterprises are struggling for the market downturn, the development momentum of leading enterprises such as Xingye and Feng an has not diminished.

According to the above leather association responsible person, at present, the leather industry in Quanzhou has ordered the phenomenon of concentrating on large enterprises.

From the statistical data of Quanzhou Municipal Bureau of statistics, the output value of leather, fur, feather and its products ranks the top in every industry in the first three quarters of this year, accounting for 16.5% of the industrial output value above the scale of the whole city. Under the condition of the market downturn, the large increase in output value has been contributed by several large enterprises. This also proves that the above orders are concentrated on large enterprises.

From the two tier skin to the first floor, facing the bottleneck of capital, judging from the current market situation, the downturn of the two tier leather tannery enterprises seems to have just begun. Under such circumstances, the pformation has become the hope of many two leather leather enterprises.

The above leather association leaders believe that compared with low value-added two layers of leather, the top layer leather is not only of high added value, but also has wide uses and less impact from downstream industries, which should be the best way to pform many two level leather enterprises.

However, for many second tier leather tanneries, this pformation path is hard to say.

The biggest problem comes from capital. According to Xu Qingsi, it is simple to turn from two layers of skin to the top, but in fact, it needs to invest a lot of money. "The purchase of raw materials is only several times higher than that of the two storeys, and the investment in equipment and technology has not been put into practice. At the very least, it will cost millions of dollars to pform successfully."

And for most of the two layer leather tanneries that have long been wandering on the fringe of low value-added, millions of dollars have not been a small number for them.

Xu Qingsi told reporters, especially in the triangle debt serious Quanzhou area, the leather enterprise's funds are largely defaulted by the downstream shoe factories, and the leather industry as a restrictive industry in the country, it is impossible to obtain loans from the bank, which makes the bottleneck of capital become more prominent.

"Without enough capital, pformation is almost impossible."