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    The Difference Between Domestic And Overseas Production Of Cotton Textile Enterprises Is A Thousand Miles Away.

    2013/5/21 21:46:00 20

    Cotton Textile EnterprisesCotton Textile Enterprises

    Shortly before "P", I learned from the interview of Heng Tian Heavy Industries (formerly Zhengzhou a target= "_blank" href= "http://www.91se91.com/" > textile < /a > Machinery Factory) that in 2011, their export of chemical fiber equipment was the largest and orders were many; in 2012, their cotton spinning and blowing carding equipment was also exported; until now, enterprises are still working overtime to make orders.

    "It is mainly the large enterprises abroad that are ordering equipment, such as the list of Tianhong Group. These years they have been taking the road of differentiation to achieve industrial upgrading".

    And on the second day when I interviewed Liu Yanwu, deputy general manager and chief engineer of Heng Tian heavy industries, he had embarked on his journey to Vietnam.

    < /p >


    < p > reporters saw such a clear industrial chain. Most of our textile enterprises built factories abroad, and they bought relevant equipment at home, thus driving the export of textile machinery enterprises.

    < /p >


    < p > however, the difference between domestic and overseas production of cotton textile enterprises is far away.

    Since 2011, the price of cotton in China has been about 6000 yuan higher than that in the international market. This makes the Hong Kong listed companies Tianhong textile, which has built factories in Vietnam, get an enviable cost advantage.

    The 2012 annual report released by Tianhong textile showed that the turnover of the company in 2012 was 7 billion 341 million 500 thousand yuan, and the profit increased by 7 times to 486 million 300 thousand yuan in the year. The profit per share also jumped 7 times to 0.55 yuan from 0.07 yuan in 2011.

    The gross profit margin of the company increased from 8.1% in 2011 to 15.3% in 2012. This achievement has made the domestic cotton textile enterprises breathtaking.

    Affected by China's cotton purchase and storage policy in recent years, domestic cotton prices are stable at around 19000 yuan per ton, while Tianhong textile has factories in Vietnam, and the purchase of cotton in the international market is less than 3000 yuan ~4000 yuan per ton. Because of the huge cost advantage, the yarn price of cotton processing is correspondingly lower than that of domestic textile enterprises by 3000 yuan per ton, so its performance is better than that of domestic counterparts.

    < /p >


    < p > it is learnt that Hong Tianzhu, chairman of Tianhong textile board, decided in 2006 to invest in the construction of textile factories near Nai Province in Vietnam near Hu Zhiming, in addition to considering the possibility of freely importing cotton in the international market, taking into account that the wages of local workers were only about half of that of China.

    In addition, in order to attract foreign investment, Vietnam stipulates that foreign investment companies are exempt from income tax in 3~4 from the first profit year, and then impose a half tax on the income tax of 7~9 (about 12.5%), which is far better than the "two exemption and three halved" stipulation in China.

    Tianhong textile, which has tasted the sweetness of overseas investment, has further increased investment in Vietnam. In the southern part of the Tung Nai base, the new factory of Tianhong textile in northern Vietnam has started construction since July last year, with a total investment of about 1 billion 100 million yuan and an increase of about 400 thousand spindles.

    In addition, Tianhong textile also plans to invest 400 million yuan to build textile factories in Uruguay, South America.

    It is estimated that after the completion of all the projects, the processing capacity of Tianhong textile will increase from the current 1 million spindles to about 1 million 500 thousand spindles.

    < /p >


    < p > Lu Tai is one of the largest cotton spinning enterprises in China. In 2012, the European debt crisis led to the continuous increase in cotton price difference at home and abroad, and the continuous increase in domestic labor costs, and customers gradually pferred orders to Southeast Asia.

    In 2012, the total net income of Lu Tai and the net profit attributable to shareholders of listed companies showed a downward trend compared with the same period last year.

    Another domestic listed company, Baron East, is also a cotton textile enterprise which is more affected by the cotton price difference at home and abroad. In 2012, the profit of the company decreased by more than 55%.

    < /p >


    < p > it is not difficult to see that the earlier "going out" of Tianhong textile, with the advantage of first mover, and the huge price difference between domestic and foreign cotton, the overseas layout shows the cost advantage.

    Hong Tianzhu believes that the price difference between domestic and foreign cotton will exist for a long time due to policy differences. Enterprises with overseas production bases will have more space.

    Gao Yong, vice president and Secretary General of the China Textile Industry Federation, said: "from now on, enterprises with export orders are better to build factories in Southeast Asia.

    And this trend of "going out" will remain for several years.

    < /p >


    < p > industry experts also believe that the inverted price inside and outside cotton prices may be a short-term phenomenon.

    The reason is that the cotton purchase and storage policy may be adjusted or not implemented for a long time.

    In the long run, wages are rising rapidly in Vietnam and other places. Once the cotton purchase and storage policy is adjusted in the future, domestic and foreign enterprises will still have strong competitiveness in the cost of starting the same starting line.

    < /p >

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