"Grassroots Enterprises" Grow Into Industry Leaders

When he first saw Guo Yushun, he gave people a sense of simplicity, understatement and boldness.

He did not shy away from being a typical "grass root" entrepreneur. He grew up to be the leading enterprise in the abrasive belt foundation industry of Jiangsu Huayue textile new material Co., Ltd. (formerly Salt City Hua Yue weaving factory) from more than 10 years ago.

In recent years, the annual growth rate of China textile has reached 23%, ranking first in the same industry in China.

In 2010, the company achieved sales revenue of 225 million yuan, profits and taxes of 20 million 700 thousand yuan, and occupied 20% of the market share in the fine sand belt base cloth industry.

Abrasive belt is a kind of coated abrasive tool in machine tool. It is called flexible abrasive tool. It is more flexible, safer, higher accuracy and lower grinding cost than solid abrasive wheel in polishing.

The abrasive belt seems to be unrelated to textile, but its base cloth is made of cotton or chemical fiber, and belongs to the downstream industry of chemical fiber textile.

According to Guo Yushun, more than 10 years ago, the abrasive belt base cloth was hardly produced in China, and Hua jump was the founding unit of China's industrial belt base cloth.

In 1998, the Asian financial turmoil raged, Guo Yushun remembers this.

At that time, a large number of local enterprises in Jiangsu were closed down, and a few of the surviving enterprises began to plan for pformation.

Guo Yushun started his own career after being laid off from a Loom factory.

After several visits to the market, combined with the local industrial characteristics and development trend, Guo Yushun stepped into the abrasives industry, specializing in the production of abrasive belt cloth.

Guo Yushun told reporters that the development of China's abrasive belt base cloth was relatively late. Before 1998, only two small businesses in the country were engaged in the production of abrasive belt base cloth. Most of the abrasive belts used in China rely on imports, and the price is very expensive.

In the early days of Huayue company, most of the products produced by several companies were mainly pure cotton and low grade products.

Until 2005, with the rapid progress of related industries, the development of abrasive belt base cloth industry became rapid.

Today, there are more than 30 enterprises in the production industry using abrasive belt cloth, and the total industrial output value has increased from $56 million before 1998 to today's over three billion yuan (plus the value of downstream conversion enterprises).

In this process, Hua Yue textile has played a positive role in promoting its products. Many of its products, such as knitted fabrics and woven fabrics, have filled the gap in China. The technologies such as waste beverage bottles and other renewable resources have been used to produce abrasive belt cloth and other related technologies, thus promoting product diversification, low cost and industrial upgrading.

In Guo Yushun's view, the reason why Hua Yue can grow into a leading industry is not only the insistence, but also the focus on product quality.

Over the years, Hua Yue has been insisting on quality as the king, making continuous improvement in the aspects of smoothness, strength and product stability, and has won the loyal support of customers.

At the same time, Hua Yue improves the R & D of new varieties according to the market demand and meets the needs of different levels.

Guo Yushun believes that products should be designed and manufactured according to requirements, so as to avoid excess quality or inadequate quality.

For example, polished glass, steel sheet, polishing material for stainless steel pot, the abrasive belt base cloth needs different grades.

Through continuous experiments and explorations, Hua Yue has developed more than 80 products, ranging from 40 mesh to 2000 mesh, and is widely used in many fields such as steel, casting, building, automobile, precision instrument, aircraft, missile and so on.

The company produces all kinds of abrasive belt bases for Jiangsu MITSUBISHI, Hubei Yuli, Zhengzhou Bao Long, Changzhou Jinniu and dozens of large mold enterprises.

On the basis of strict guarantee of quality, Hua Yue has also expanded its scale and improved its market share.

"5 years ago, as the industry profit margins gradually reduced, the two state-owned enterprises withdrew from the industry, leaving room for the market.

Hua Yue seize this opportunity to expand production in a timely manner and provide more reliable products for more users.

Guo Yushun said, at present, the output of Huayu belt has reached 20 million meters.

It is particularly worth mentioning that under the condition of shortage of cotton resources and sharp fluctuations in prices, Huayue textile has turned waste into treasure. We have independently developed the technology of producing abrasive belt base cloth with waste plastic bottles and spinning mill leftovers, weaving pure polyester or polyester cotton belt base cloth.

This breakthrough will not only alleviate the bottleneck of raw materials, but also help recycle resources, and the production cost of products will be reduced by more than 1/3.

The performance of the product is even better than that of cotton belt base cloth, which has created a larger profit margin for customers.

It is understood that China's industrial base cloth chemical fiber products have reached 70%.

At present, the world economic situation is worrying and the macroeconomic environment is down.

Under the influence of stringent domestic policies, frequent international wars, the United States sovereign debt crisis and the spread of EU debt crisis and other factors, the price of raw materials, labor costs and the environment have become increasingly apparent.

According to Guo Yushun, after June this year, the market continued to decline, the local two factories have closed, and the export volume of Hua Yue is also facing a downward risk.

However, due to long-term structural adjustment, Huayue's overall order is relatively stable, and it is also confident that it will overcome the difficulties.

Under the condition of guaranteeing survival, Hua will still produce a fixed proportion from limited funds for R & D and ensure the development potential of enterprises.

At present, through the active research and development of high-tech fiber products, Hua Yue has made many breakthroughs in bulletproof clothing, fire-fighting clothing and radiation protection products, and has obtained relevant patents.

Huayue has always been developing the enterprise with the aim of "technological innovation and technological innovation". It has carried out production, learning and research cooperation with Shanghai textile School of Donghua University and Zhejiang Sci-Tech University School of materials and textile. It mainly develops new textile fiber materials, including functional fiber products such as radiation protection and static electricity resistance, high performance polyethylene products such as ultra-high molecular weight polyethylene, aramid fiber, and equipment innovation and pformation.

Guo Yushun told reporters that at present, the imports of high-end products of sand belt reached more than 1 billion yuan, and Yue hopes to make marketable products through efforts, so that downstream enterprises can find reassuring base cloth products in China.