Fujian Cotton Textile Industry: Industry Development Needs Urgent Solution

Industry is the traditional dominant industry in Fujian. It has already formed a relatively large industrial cluster and a complete industrial chain. At present, the total economic volume of textile industry in Fujian ranks fifth in the country.

However, with the fluctuation of cost in recent years, the development of the industry has been unstable and even regarded as the sunset industry.

Cotton prices skyrocketing, textile enterprises day is sad, cotton prices continue to decline, spinning enterprises are still facing difficulties.

Experts pointed out that as a traditional industry, cotton spinning enterprises need to find ways to break the situation.

Difficulties often accompany

"Weaving business revenue decreased by 4.99%, bleaching and dyeing business income decreased by 33.07%, and yarn dyed business revenue decreased by 20.31%."

Textile enterprises Fujian phoenix bamboo textile daily reported that the main business losses in the first half of this year, operating profits fell sharply.

Feng Bamboo textile explains why, because of the decline in external demand and the sluggish domestic demand, the difference in domestic and foreign cotton prices has led to a decline in export competitiveness of products, resulting in a decrease in sales revenue, a decrease in production and an increase in unit fixed costs. At the same time, the increase in labor costs has led to a significant decrease in gross margin of the company's products compared with the same period.

"Textile enterprises have been in turmoil for quite a few years."

The head of a textile enterprise in Fujian textile town, Changle, told reporters that cotton prices last year experienced two waves of skyrocketing and plummeting. Last March, they reached a historical high of 34 thousand yuan per ton. But then the deterioration of the European debt crisis caused the global commodity market to dive, and the international cotton price began to decline continuously.

At the beginning of August, the price of China's main port of imported cotton was generally down, and the national weighted average price of grade 328 cotton was 18325 yuan per ton, a drop of 41.3%.

Cotton prices have gone down this year, but the majority

Textile enterprises say they have little impact on the profits of enterprises.

"A lot of cotton is ordered earlier, who knows it will drop so much!" said the head of a textile enterprise in Fuzhou. The cost of falling cotton prices is far from being able to compensate for the rise in labor costs.

Taking a garment as an example, the proportion of raw materials in cost is decreasing, and the proportion of labor cost has increased from 15% to 30%, and the proportion of energy cost has increased from 10% to 15%.

Fujian textile industry Changle City, the first half of the year, the textile industry tax revenue growth is limited, compared with the previous year, due to the market economy environment downturn, Changle textile production and operation situation has been more difficult.

Internal and external difficulties

"As a traditional industry, the textile industry is faced with many difficulties, such as talent, capital and technology. In the era when demographic dividend is fading away, traditional advantages no longer exist."

Fujian Province

Relevant people of the association said.

Earlier, the Ministry of industry released the first half of this year's China textile industry operation situation analysis report that, compared with some emerging countries, China's textile industry has lost the advantage of low cost, in the process of economic pformation and upgrading, the shortage of labor shortage in textile industry is becoming more and more serious, and the labor shortage in the eastern region is more obvious.

It is understood that there are many reasons for this result.

"Although the price of cotton has declined, labor costs are rising and the gap is increasing.

Enterprises have always wanted to pform and upgrade, but because of lack of managerial talents and high technology talents, they have difficulty in product research and development, innovation and so on.

The head of a textile enterprise in Wu Hang Town, Changle, said that the textile industry was a low wage industry and basically implemented a shift system. The intensity of labor and the low wages led to an increasing number of people fleeing the industry.

At present, the number of labor force in the textile industry is around 12 million. It is estimated that by 2015, the demand for textile industry will reach 23 million, which means that the problem of labor resources will become a key issue affecting the development of the textile industry.

Due to the rise in labor costs, it has also led to the loss of orders. It is understood that some foreign enterprises and orders have been pferred to new cheap markets such as Southeast Asia.

"Due to lack of orders, enterprises are in a semi shutdown state."

The head of a textile enterprise in Jinjiang told reporters that since the second quarter, some textile enterprises are in a semi shutdown state.

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Seeking new ways

Has the textile industry really become a sunset industry? Experts deny this statement. "The crux of the problem lies in the following trend of textile industry, imitation, homogenization competition and blind expansion since the reform and opening up.

The necessities of life can not be separated from this industry, and we will find new ways through pformation.

Then, what kind of way to go? In Shishi, some textile enterprises still maintain a higher profit in the case of rising costs of raw materials and labor.

Their "secret" is the implementation of differentiation. As early as a few years ago, they sought to pform and promote differentiation.

Shishi Federation Sanhe relies on "low carbon and environmental protection" fabrics. This year's development is flat with last year.

"The path of alienation should undergo a period of cultivation and market validation, customer recognition and consumers' recognition."

Qiu Zhiqiang, general manager of Hongtai (China) Limited, believes that the differentiation of textile enterprises is an inevitable trend in the future.

It is understood that Hongtai textile has already begun to try blended products.

Fujian textile industry cluster effect has been significantly enhanced, and the whole province has been awarded Chinese textile and clothing.

The pilot area has 3 "China textile base cities", such as Jinjiang, Changle and Yongan. 60% of the enterprises in the whole industry reach the advanced level in the country, of which 30% of the chemical fiber equipment and 15% cotton spinning equipment are in the leading or advanced international level, with 1 enterprises with over 100 billion output value and 10 enterprises exceeding 5 billion yuan.

According to the plan, during the "12th Five-Year" period, Fujian textile industry will focus on the development of new textile fiber materials industry, high performance industrial textiles, new textile equipment manufacturing industry, and deep processing of fabrics and clothing products. To the end of 12th Five-Year, the total industrial output value, industrial added value and export delivery value of textile enterprises above Designated Size will reach 500 billion yuan, 170 billion yuan and 100 billion yuan respectively, with over 8 enterprises in the province's textile industry output value exceeding 10 billion yuan, and more than 30 yuan in excess of 5 billion yuan.

The pformation and upgrading of textile enterprises is obviously the only way out for Fujian textile enterprises to get out of the predicament.