Interview With Li Zhongping, Director Of Xianyang Textile Industrial Park Management Committee

The government should make moves when it comes out.

Reporter:

Textile industry has been improving in the past two years in undertaking industrial pfer and readjustment of industrial structure. Can you talk about Xianyang textile experience in this field?

Li Zhongping: talking about the structural adjustment of Xianyang's textile industry, we must mention the history of Xianyang's textile industry.

Before the 70s and 80s of the last century, Xianyang's textile industry had a great influence in the whole country. The famous "Zhao Mengtao group" came out in Xianyang textile enterprises.

But after 80s, with the deepening of market economy, Xianyang textile industry was struggling because of its rigid management mechanism, incomplete industrial chain and increased social burden. Textile workers' income decreased and became a vulnerable group in the society.

Seeing the rapid development of the textile industry in the eastern region, we also want to carry out technological pformation, but we are powerless because of lack of funds.

In order to change this situation, promote the technological upgrading of enterprises and improve the living standard of workers, under the strong support of the governor of Shaanxi province and the provincial government, the Xianyang municipal government set up the "Xianyang Xinxing Textile Industrial Park Management Committee" in April 2011 under the strong support of the provincial governor Zhao Zhengyong. In the western suburbs of the city, it planned 10 square kilometers of land construction "Xianyang Xinxing Textile Industrial Park".

After the establishment of the park, the provincial government classified the park construction as a provincial key project and became a "governor project", giving oblique support from funds, land indicators and supporting policies.

Governor Zhao Zhengyong visited the park for the four time, and made important instructions: the park management committee reported to the provincial labor and trust office, the NDRC and other departments weekly; the Xianyang municipal government and the park management committee reported to the provincial government on the progress of the park construction every month.

We hope to build the park into a model for Revitalizing Traditional Industries in Shaanxi.

The Xianyang municipal Party committee and the municipal government have also listed the construction of the park as Municipal No. 1 project.

The municipal Party committee secretary and mayor have gone deep into the park inspection guidance and field work several times, and the deputy mayor is stationed in the park to solve the specific problems.

The high degree of concern and support of provincial and municipal leaders has created the necessary conditions for the construction of the park.

Reporter: how much is the problem of how to solve this problem?

Li Zhongping: the problem of capital is the main problem facing the upgrading of textile equipment and the infrastructure construction of the park. Although the investment balance can be achieved through land replacement and land gradation, there is a certain time lag in the supply and demand of funds in this process. This is a problem we need to solve.

To this end, the park actively takes advantage of the provincial and municipal government's credit enhancement policies, formulating investment and financing plans conscientiously, and builds good credit structures with financial institutions, and adopts multi platform, multi-channel and multi financing modes. According to the timing and project requirements of the construction of the park, the financing group is set up to provide strong financial support for the relocation of the state-owned enterprises and the construction of the park.

A total of about 2 billion yuan will be needed for equipment upgrading and new plant construction in the relocation of enterprises. The total infrastructure needs and infrastructure projects will be 1 billion 500 million yuan and the total capital demand will be 3 billion 500 million yuan.

The park is able to raise 2 billion 200 million yuan through the Xianyang Textile Group in the form of medium-term notes, private placement, trust and so on, including 1 billion yuan in trust financing, and 1 billion 600 million yuan in indirect financing through Xianyang city investment holding group and the State Development Bank and the Construction Bank. The total financing amount is 3 billion 800 million yuan, which ensures the relocation of state enterprises and the capital demand for park construction.

According to the source of funds, the textile group can earn 3 billion yuan through the replacement of 1000 acres of land in the state-owned enterprises. 20% of the residential and commercial land in the park can earn 2 billion 200 million yuan through the differential in land, and the total income can reach 5 billion 200 million yuan. These funds ensure the repayment ability of the financing.

At the same time, the park also provides financial services to enterprises in the park through the textile development guidance fund and Guarantee Corporation, small loan companies, village banks and PE ventures, so as to solve the capital needs of enterprises.

At present, the park has a total of 3500 mu of land, and the construction of the road network has basically been completed. The projects of power supply and heating center, Textile Museum and farmers' resettlement area have been launched, which has laid a good foundation for the future development of the park.

Reporter: did you just say that changing the cage and changing birds is not to eliminate backward enterprises and introduce advanced enterprises?

What we call "cage changing" refers to the pformation and upgrading of enterprises, so that "sparrows" become "Golden Phoenix".

According to the industrial planning and overall planning of the park, the park should give full play to the advantages of the existing high-quality brands, complete marketing channels and mature workforce of the state-owned enterprises. Through the integration of enterprise resources, the Xianyang textile group should be set up to achieve pformation and upgrading.

In accordance with the two step strategy, the first step is to integrate resources through land replacement, complete the withdrawal of the city into the park, upgrade equipment, establish a group, enhance the level of enterprise management mechanism, improve the production efficiency of enterprises, achieve the goal of "six unification", such as unified procurement, unified production, unified accounting, and unified marketing. The second step is to realize diversified industries and diversified structures through asset operation and equity pfer.

The two step strategy is adopted to improve the efficiency of asset utilization and reduce the cost of capital operation, so that the textile production equipment reached the international advanced level and the domestic first-class level. The scale of production will reach 400 thousand spindles, and the labor consumption per 10000 yuan will be reduced from 200 to 50. After the completion of technological pformation, the debt ratio of enterprises will be reduced to 22% from the 75% before relocation, and the cost of management can be saved by 160 million yuan per year.

Reporter: what measures have you taken in the park construction and undertaking industrial pfer?

Li Zhongping: incomplete industrial chain is a prominent defect of Xianyang's textile industry. Undertaking industrial pfer and implementing investment promotion is an important way to realize the extension of industrial chain in the park.

After the technical pformation, the product is still at the lowest end of the industrial chain.

If we do not change the operating mechanism and do not solve the problem of incomplete industrial chain, we will only move the new equipment after the technology pformation to the park. After 3 years, Xianyang textile will remain the same.

Only through breakthroughs in dyeing and finishing, home textiles, clothing, etc., can the park industry develop continuously and healthfully.

To this end, the park has hired the China Textile Construction Planning Institute to complete the industrial planning, and invited Singapore CPG to complete the master plan and the detailed construction plan. At the same time, it also invited relevant academicians and experts to serve as the park's annual technical adviser to guide the construction and development of the Park scientifically.

According to the actual situation of Xianyang textile, we have determined the development target of "trade drive, industry support, strong terminal and superior upstream".

Our textile industrial park has unique advantages, one is location advantage.

The two is land superiority.

The three is the advantage of human resources.

Xianyang has 59 professional and technical schools in textile and clothing specialties, and more than 30 thousand high-quality professionals are trained every year.

Xianyang people have strong loyalty and cultural belonging, so the local labor force is stable.

The four is planning advantages.

The overall planning of the park is compiled on the basis of summing up the experience and lessons from different localities, avoiding the problem of repeated construction after the entry of enterprises.

According to the above advantages, according to the needs of the industrial chain, the park actively accepts the textile industry pfer and achieves the extension of the industrial chain of the park through point to point and consultative mode of investment.

At present, the park has signed a cooperation agreement with the Zhejiang chamber of Commerce and the Fujian chamber of Commerce. 5 well-known brands at home and abroad have signed an agreement with the park, with a total investment of 4 billion 500 million yuan, and 3 garment enterprises in the province are doing preparatory work before they start construction.

The entry of these enterprises will greatly enhance the industrial supporting capacity of the park, enhance the radiation function of the park, and achieve the goal of product diversification better.

Reporter: what are the difficulties and problems in the construction of the park?

Li Zhongping: since the establishment of the park, although it has made some achievements, it faces many difficulties.

First, affected by the international and domestic economic downturn, the difficulty of industrial pfer is increasing.

At present, most enterprises slow down investment and wait for wait-and-see. At the same time, restricted by intellectual property rights, pfer enterprises have problems such as innovation, pulling and competitiveness.

Two, from the macro level, there is a lack of supporting and supporting policies for industrial pfer.

There is no specific guiding plan for the pfer of enterprises and how to pfer them.

At the same time, supportive policies are not clear and affect the speed of pfer.

Three, the labor force training is not enough.

The human resources service platform is not perfect, the allocation of production factors and elements has not yet formed systematic support, and the directional training mechanism has not been established.

At the same time, we suggest that the relevant departments of the state should increase the publicity, financial support and guidance for textile industry pfer through textile specialized channels, and hope that the China Textile Industry Federation will increase the opportunities for communication in various parks and realize resource sharing.