How Do Textile Enterprises Tide Over The Current Difficulties?

Cotton Association of Hunan Province

Management Office understands that the Deputy Secretary General of China Cotton Textile Industry Association Wang Qingcui, assistant director Ouyang Xia Zi and Hunan Textile Management Director Zou Xiyuan went to Ningxiang, Huarong, Nanxian, Anxiang, Tianjin, Lixian, Linli and Changde to conduct research in November. They visited 24 cotton textile enterprises and a cotton processing factory, such as Dongxin, Yun Jin, Yintai, and heard the development report of Huarong county and Nanxian cotton textile industry.

It is reported that the opening in 2012 has remained stable, with large enterprises and independent brand enterprises operating at 80%-90% due to sufficient orders and abundant capital.

Our province's Dongxin, Yunnan brocade, Yintai and other key enterprises have a relatively high degree of automation of textile equipment, and the coverage rate of long cars and automatic winding is over 80%. Besides relying on the stable market of high-grade slubby yarn with certain characteristics, and with non cotton yarn, the production and operation situation is better than other enterprises.

However, the textile industry is still facing a series of risks. In the first half of the year, due to the outbreak of the European debt crisis, the textile industry was affected by the slowdown in social investment growth, the weakening of export driven economy, and the deepening adjustment of the economic structure. In addition, the domestic cotton market was complicated and the labor cost of textile enterprises increased significantly. The textile market in China was still in the doldrums. The small and medium sized textile enterprises still faced the problems of poor financing, high cost and unstable order quantity.

Processing small and micro enterprises, the order reduction, staff shortage, capital shortage, pformation difficulties and other serious problems.

At present, speeding up structural adjustment and pformation and upgrading, striving for national policy support, reducing operational risks and promoting steady economic growth are an arduous task facing the textile industry.

The national "12th Five-Year plan" has promulgated a series of policies such as pformation and upgrading of enterprises, and independent development, so as to encourage and stimulate enterprises to step forward.

The head of China Textile Industry Federation pointed out that the pressure and uncertainties of the international market demand this year are still more, which has affected the export growth of the industry.

In addition, fluctuations in the raw material market will be the main risks facing the textile industry.

But with the promotion of domestic policies to stimulate domestic demand, the domestic demand market will be further opened, when the textile industry will usher in new opportunities for development.

If domestic domestic demand market can be reasonably opened, it will generate a strong potential market, so that enterprises that are difficult to survive due to the reduction of foreign trade orders will take a strong road.

Wang Qingcui, deputy secretary general, also hopes that our cotton textile enterprises will operate steadily under the current situation, grasp management, reduce costs, upgrade equipment grades, develop new products, and hope that the provincial cotton textile base counties can give more support.

Policies and measures to help enterprises accelerate pformation and tide over the current difficulties.