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    Blind Expansion Led To The Haining Tanning Enterprise Boss "Run Away".

    2012/5/9 10:24:00 49

    Haining LeatherGarment LeatherMaterial Price

       Haining leather Industry insiders said: "since last year, raw material prices, labor costs rise, weak international market demand, Hongchang tanning will definitely be affected. Up to now, only 1/3 has been exported to Haining's leather industry. "


    In such a large company, some employees come in and out to make plans for their next step; many people are queuing up to reimburse their tickets before the company canteens. This is yesterday (May 8th), reporters in Zhejiang Hongchang tanning Co., Ltd. (hereinafter referred to as Hongchang tanning) see the scene. It is understood that the wages of the company's employees have to wait until May 11th.


    Leather industry is the traditional dominant industry in Haining. In the local area, there is a saying that "1.3 seconds is born of a fur coat, producing an average 3 seconds to produce a wallet and 48 seconds to complete a group of leather leather sofa sets". Huang Jian, chairman of Hongchang tannery, was "unable to contact" and was once worried about the involvement of the local leather industry and other leather enterprises. Haining leather industry association responsible person said, "Hongchang tannery appears capital chain problem, has nothing to do with the whole industry, mainly is the enterprise's own problems."


    "For some export and processing trade oriented leather production and marketing enterprises, on the one hand, raw materials continue to rise, on the one hand, demand is not strong, prices will not go, two ends squeeze, the situation is more difficult." An industry insider of Haining leather industry analyzed to reporters that at present, Hongchang tanning may encounter many pressures such as inventory and slow repayment.


       It has nothing to do with financing difficulties?


    "Hongchang tanning is a foreign enterprise. Huang Jian bought it in 2011," the official of the Haining Leather Industry Association told the daily economic news. "The company mainly engaged in leather upholstery leather, luggage leather. Garment leather Manufacture and sale, import raw materials from abroad, then export, or sell to local enterprises. Production and sales have been good, and environmental verification has been passed. "


    The reporter learned that Hongchang leather used 40 tons in 2010, more than 50 in 2011, and the output increased by 25%. But according to local media, the company achieved sales income of only 260 million yuan in 2011.


    In the first quarter of this year, the Zhejiang Provincial Commission of letters and commissions made a survey of the enterprises' activities to solve the problems, and found that 2642 enterprises had financial gaps, accounting for 54% of the total number of enterprises, and the total gap was 34 billion 250 million yuan.


    "But (Hongchang tanning) is not because financing is difficult, so that enterprises can not repay debts due." The relevant departments in Haining revealed that on the contrary, Hongchang made more financing from banks, mainly by investing in large scale banks and financing.


    The director of Zhejiang capital and Enterprise Development Research Council, director of Zhejiang local financial research center, and professor of Zhejiang Financial College should analyze that financing by enlarging and expanding production capacity will increase business risk to some extent. In his view, if such enterprises can obtain large funds, there is no relationship with bank verification.


       Industry faces double squeeze


    The reporter learned that in 2011, the annual output of leather garments in Haining city was 31 million 800 thousand pieces (sets), an increase of 2.58% over the same period, and 7 million 710 thousand sets of leather couches, an increase of 11.74% over the same period last year. In 2011, Haining had 1962 leather industry enterprises, employing about 69 thousand and 500 people, realizing the current price output value of 21 billion 350 million yuan all year round, and the product sales revenue was 20 billion 496 million yuan. In 2010, the industry output value was 18 billion 345 million yuan. Although the output value of Haining leather industry is increasing, exports are slowing down obviously. Statistics show that leather products (excluding finished products sofa) exported to US $270 million in 2011, a decrease of 3.41% over the same period last year.


    Haining leather industry insiders analysis: "Hongchang leather processing trade enterprises, since last year, raw material prices, labor costs rise, weak international market demand, Hongchang tanning will definitely be affected. Up to now, only 1/3 has been exported to Haining's leather industry. "


    In May 7th, Xingye science and Technology (002674, SZ), which has just entered the capital market, engaged in the development, production and sale of high-grade and high-grade cattle shoe upper leather, has made clear the main reasons in its prospectus. Material price Volatility brings risks. Prospectus shows that the average purchase price of cattle raw leather increased from 8.59 yuan / foot in 2009 to 12.13 yuan / foot in 2011, and the average purchase price of ox blue leather rose from 10.03 yuan / foot in 2009 to 12.96 yuan / foot in 2011.


    Su Chaoying, executive vice chairman of the China Leather Association, publicly mentioned at the end of last year that the whole industry is facing pressure from environmental protection and international market. "There is another very serious pressure. The price of raw materials in the upstream has been rising, which makes enterprises really overburdened."


    According to the "China Haining leather index" information system monitoring, in the first 4 months of this year, although the monthly price index of clothing, clothing and leather bags and footwear prices varied, the monthly price index of raw materials did not decline. In January, the raw material price index closed at 103.89 points, and in April it rose to 109.72 points, or 5.61%.

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