Huilong Dam Encounter Sleepy: 80% Textile Enterprises Shut Down This Month

22, the business daily reporter learned from the economic development office of the dragon dam town government, this month, accounting for Chongqing City

The total output was 50%. In 1997, it was awarded the Huilong dam town of "textile professional town", and 80% of the textile enterprises concentrated on production.

From the annual output of cloth to 50% of the total annual output of Chongqing, up to now there are less than 100 textile enterprises struggling to support, and the first time the commercial reporters rushed to the textile town 40 kilometers away from the Shapingba Central Business District of Chongqing.

Individual case

The biggest textile mill is facing half stop production.

At the beginning of this month, Chongqing's largest textile enterprise Yangzi Jiang Textile Co., Ltd. entered a semi shutdown state. More than half of the workshop was closed down, and the workers in the workshop received notice of shift work one after another.

"Compared with other enterprises in the town, our situation is good."

Tang Yuanchuan, owner of Yangzi River company, told the business daily reporter in an interview recently.

Yangzi River company is located in Huilong dam, the largest textile base in Chongqing, and its main business is sizing business.

Zhang Chengan, the party secretary of the company, said that the Yangzi River company was founded for 12 years and is now the largest textile production enterprise in Chongqing, with an annual output value of 310 million yuan.

As far as sizing business is concerned, the company can rank among the top ten in the country.

However, the original good momentum of development began to turn sharply from the beginning of this year.

Since the second half of last year, the textile market has been in a doldrums. Most textile enterprises in our town are in trouble.

It is not only our main business of sizing, but also the days when large numbers of main spinning and weaving businesses are starting to suffer.

Zhang Chengan said frankly.

"In the past normal month, the factory has to process 30 million meters of cotton yarn, and this year, it can receive up to 15 million meters of cotton yarn processing business."

Zhang Chengan said frankly, "starting production now, there is no profit at all, and business owners are looking forward to the improvement of the situation as soon as possible."

Industry

80% textile enterprises will be closed this month.

"This is the most difficult year in the past decade.

In August 12th, I finally made up my mind to suspend business temporarily, and all the workers were closed down and the workers were on holiday.

Huilong dam town Lu Li Textile Co., Ltd. boss Tao Sijun told the business daily reporter.

"At the most prosperous time, the total output of Huilong dam output reached 50% of the total fabric output of Chongqing and 20% of the total fabric output of the whole country.

Even last year, 645 textile companies were still in normal production and operation, but this month, 80% of the textile enterprises concentrated on production.

Up to now, there are less than 100 enterprises working hard. "

Xu Xingquan, director of the economic development office of the Hui lung dam town government, said in an interview with a Commercial Daily reporter.

Data from the China Federation of textile industry showed that output growth of textile enterprises above Designated Size dropped by 4.1 percentage points last 1~11 months.

At present, about 15% of the processing textile enterprises in the eastern part of the clustered area are in a state of shutdown and semi shutdown.

In the town of Huilong dam, the business daily reporter saw a large number of facades on the streets locking the gates, and the notices for the pfer of textile mill buildings were posted everywhere on the poles and walls.

"These used to be textile sales outlets, and almost all of them have been closed this year."

A resident told a newspaper reporter.

Probe into

Barbarism grows gold for 10 years.

"Huilong Ba town has had a textile history of about 40 years."

Xu Xingquan told the business daily reporter, "especially in the last 10 years, the textile enterprises in Huilong Ba town developed from more than 100 in the early 90s to 645 last year".

Xu Xingquan introduced that the 10 year before 2011 is China.

During the golden period of development, with the rapid rise of export volume, the whole industry ushered in explosive development.

"Even small workshop companies are making money."

Tao Sijun told Business Daily reporters, especially before and after 2010, the profit rate of textile industry once reached over 10%.

At that time, almost all the town people were engaged in textile related work, and no one did not make money.

"The direct result of explosive development is that the textile industry in Huilong Ba town is characterized by small, scattered and chaotic distribution."

Xu Xingquan said frankly, as of last year, only 272 of the 645 textile enterprises in Huilong dam had annual output value of more than 5 million yuan. "A large number of enterprises in the workshop are looking at the good market and buying a few second-hand equipment to start work. Anyway, the products are not worried about sales."

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Financial crisis, sales market is hard to open

However, the "good market" came down sharply with the outbreak of the international financial crisis.

"At first I realized that chill was in the second half of last year.

The impact of the international financial crisis has spread to the textile industry, and the volume of exports has been greatly reduced. Most of the spinning mills and weaving factories in the town are beginning to face the dilemma of closing sales channels.

Xu Xingquan introduced that the textile products produced by Huilong Ba town accounted for only about 20% of the total output, but the indirect impact was very serious.

The first is the sharp reduction in export orders, and the sales of cloth sold by many enterprises for export market are directly blocked.

Secondly, "the whole industry is facing the situation of shrinking export market, resulting in many textile companies that focused on the international market before turning their attention to the domestic market".

Zhang Chengan said frankly that in the second half of last year, with the export of many strong textile enterprises in the field to domestic sales, the domestic orders were squeezed.

Even as one of the largest textile enterprises in Huilong dam, their products are also facing a sluggish sales.

High cost, difficult to control the upper and lower channels

"Products are unsalable, on the one hand, from the shrinking of the market and the squeeze of competitors. On the other hand, they are at the bottom of the industrial chain for a long time. Both the cost disadvantage and the short technology lead to the fact that most products are not competitive."

Xu Xingquan said, "Chongqing does not produce cotton, and all cotton raw materials used by all textile enterprises in Huilong Ba town come from Shandong, Xinjiang and other cotton producing areas. It is only a large part of the cost of logistics."

In addition, due to the extensive development of the past 10 years, most of the textile enterprises in the town are lagging behind, and the production cost is much higher than the textile enterprises in the developed areas.

Xu Xingquan said that they have done a survey, compared with the new textile enterprises in other provinces, the textile enterprises of Huilong Ba town produce a high wage cost of 3~5 per cent, electricity charges 5 cents per degree, and pportation cost more than 2~3 cents per meter.

That is to say, the cost of producing one metre cloth is about 2 cents higher than the cost of production.

"We simply can't control these costs."

Tao Sijun said that almost all textile enterprises in Huilong dam are confined to the production of cloth. The raw materials of upstream cotton need to rely on foreign input, while downstream processing and terminal sales also need to rely on foreign enterprises. "We can only passively accept high yield, which ultimately leads to the lack of market competitiveness of products at first."

Way out

Large enterprises broaden the industrial chain

Small and medium-sized enterprises embrace the cold

"Large-scale production shutdown is a crisis and opportunity for the textile enterprises in Huilong dam."

Xu Xingquan said frankly, what these enterprises need to do most is to upgrade their production by discontinuing production and say goodbye to the extensive production mode in the past.

Xu Xingquan disclosed that the town government is also actively helping enterprises to further solve the problem of financing, so as to start upgrading of production factors such as equipment as soon as possible, thereby reducing production costs and improving product competitiveness.

"The township government will also actively promote enterprises to further expand the industrial chain and increase control over the upstream and downstream chains."

Xu Xingquan said that through efforts to expand the industrial chain, and create their own clothing brand, there is still hope.

For smaller textile mills, the direction given by the town government is to carry out the business of Baotuan.

"We suggest that some small and medium-sized enterprises achieve large-scale production through the way of holding together or merging."

Xu Xingquan said, Huilong Ba town has begun planning the construction of an industrial park specifically aimed at local textile enterprises, and in 3~5, the industrial park will be built, which will accommodate at least 100 large scale industries.

Enterprises, through large-scale and modern production and operation, lead the textile enterprises of Huilong dam to get out of the predicament.