Xiangyang's Textile And Apparel Industry Is In Trouble.

90% small and medium-sized textile enterprises are in a state of loss; skilled monthly workers are higher than the surrounding "big cities", and the profit margins of enterprises are narrow; small and medium-sized textile enterprises are mainly dependent on private high interest loans; half of the enterprises have more than 60% of their assets lending rate, and their business risks are increasing.

Textile industry is one of the important pillar industries in Xiangyang city of Hubei Province, and there are more than 400 existing textile and garment enterprises. 2011, Xiangyang textile clothing Industry output value reached 28 billion 500 million yuan, 1~5 output value this year is 11 billion 175 million yuan.

Since the second half of last year, influenced by the international market situation, Xiangyang's textile and garment industry has been in a difficult position, especially the small and medium-sized textile enterprises are facing greater difficulties.

　 Product price decline, operation continued losses

From August 2011 to date, Xiangyang textile and garment enterprises generally encountered problems such as reduced orders, declining product prices and so on. The business situation did not improve for 11 consecutive months, and the market situation showed a further deterioration. According to Luo Jianqiang, director of Yarlung textile company, the price of cotton yarn in Xiangyang was 16 thousand and 300 yuan / ton in the middle of June, 10 thousand and 200 yuan / ton of staple fiber, and about 20% in half a year. 90% of the small and medium-sized textile enterprises were in a state of loss. Some textile entrepreneurs said they had no confidence to run again.

　 Various costs increase and production costs rise.

First of all, cotton prices remain high. At present, the domestic cotton market price is 19 thousand and 300 yuan / ton, which is 7000 yuan / ton higher than the quota cotton imported from India, Indonesia, Vietnam and other countries. Textile enterprises generally say it is difficult to accept the policy of purchasing cotton protection price by the state. Next is the continuous rise in labor costs. According to Zou Yongqiang, the head of Jin Mingda textile company, in order to retain employees, the company has increased wages for more than 10 times in 5 years. At present, the monthly salary of a skilled truck driver is 3200 yuan ~4000 yuan, which is much higher than that of Henan Zhengzhou textile enterprise employees 2600 yuan / month. Again, the electricity price is high. On the one hand, the state has raised the electricity price since the beginning of this year. On the other hand, there are a number of small and medium-sized textile enterprises in Fancheng District, where the industrial electricity consumption is not reported, and the price is 0.84 yuan / degree through community substation such as Qiao Ying and Shi Ying. In addition, the layout of textile enterprises in Xiangyang is scattered, and the textile enterprises are in the vicious circle of recruiting, employing and selling.

　　 Cotton price upside down exports seriously hampered

The cost of raw materials, labor, electricity and transportation in Xiangyang textile and garment industry is high, and the price of products is hard to reduce. According to the textile enterprises in Fan City, the price of cotton yarn imported from Vietnam and other countries is 20% to 30% lower than that of the domestic market. As a result, the competitiveness of Xiangyang textile enterprises in the international market is weakened, orders are reduced, and exports are seriously hindered.

Difficult to get financing support for high interest loans generally

Small and medium-sized textile enterprises are mostly private enterprises. They are weak in strength, single in products and backward in equipment, especially in the absence of funds for land purchase, lack of mortgage conditions for bank loans, and it is difficult to obtain financing support. According to Lu Wanyou, the head of crane Xuan textile company, more than 80% of small and medium-sized textile enterprises are currently leasing factories, and at least 50% of small and medium-sized textile enterprises are in partnership. Under severe losses, shareholders tend to increase their differences and withdraw shares or change careers. In the absence of bank loans, small and medium-sized textile enterprises rely mainly on private high interest loans (monthly interest rate is 0.015 yuan ~0.02 yuan), and half of enterprises' assets lending rate reaches more than 60%.

　 Desire for transformation is strong, land demand is limited.

Facing fierce market competition, textile and garment enterprises begin to "break through" to seek transformation and upgrading, but the land problem has become a "bottleneck" restricting development. From the perspective of the backbone enterprises, some enterprises face difficulties in relocation.

The large textile enterprises represented by Jihua 3542, Xin Xiangmian and Yinhe shares responded positively to the call of Xiangyang municipal Party committee and municipal government to "withdraw from the city and enter the garden", and registered land acquisition in the Gang Industrial Park, to increase investment and seek greater development. However, because of the restrictions on land use quota each year, the state can not be approved in a timely manner.

New Xiangmian company signed the investment agreement with Xiangzhou District Government in March 20th this year, planning a total investment of 1 billion 600 million yuan, building 200 thousand spindles and 1100 high-speed air-jet looms in the Gang Industrial Park. In April 6th, it passed the Xiangyang municipal government's first quarter investment evaluation meeting. But until now, the enterprises still haven't got the red line of land use. The "double change" command in Fancheng district has issued the notice of relocation supervision, and the new plant construction plan can not be started. Zhang Xuezheng, chairman of the company, said: "now the company is losing $3 million every month. It can't move."

Shuang Jia printing and dyeing company is one of the key enterprises to eliminate backward production capacity in Xiangyang. The high-grade printing and dyeing equipment purchased by the company at 100 million yuan is being put in place. However, due to the fact that the park land is not implemented, it can only be upgraded on the original site. The small and medium-sized textile enterprises represented by crane Xuan, Jin Xue and Ya Tong do not have enough funds to buy land. They hope that the two party committees and governments in Xiangyang and Fancheng district should attach importance to the situation, and take full account of the fact that the textile enterprises absorb large numbers of employees and undertake large social responsibilities, so that they can arrange land in the outskirts of the city and establish a textile industrial park so that enterprises can continue to develop.

　 Higher relocation costs, companies eager to support

Qiu Weibing, the 3542 general manager of Jihua, said: "the development of Jihua Textile Industrial Park is progressing slowly. On the one hand, the industrial park has not implemented the land. On the other hand, the relocation of enterprises is too large, and the equipment upgrading and capacity expansion need 600 million yuan investment. In accordance with the existing policy relocation (only 60% of the land acquisition and storage, the old factory area listing value-added income), the enterprise has to borrow hundreds of millions of yuan, and the headquarters of the group is hard to approve." Many textile enterprises located in Renmin Road, Fancheng District, including new Xiangmian, Yinhe textile, Xin Fangyuan and Shuang Jia printing and dyeing, have been included in the object of the urban commercial complex development. They want to vacate before the end of the year, and enterprises take a wait-and-see attitude in view of the current market situation and the high relocation costs.