Restructuring Of Xinxiang Chemical Fiber Business Started

As a leading enterprise in the chemical fiber industry, Xinxiang Chemical fiber is currently in the stage of business transformation and adjustment. The company has recently said that the viscose staple fiber is in a state of loss due to excessive market capacity, and the company plans to continue to reduce its production line next year, and is conceiving to achieve profit through the transition business.

Company insiders said that at present, the company is focusing on developing functional fibers and extending the industrial chain, thereby increasing gross margin. "Functional fiber used in underwear and other products manufacturing is the company's unique innovative ideas, there is no other similar products in the market."

Viscose filament business as a company's main business, has been in a good profit level, due to the domestic industry boom is not high, the company will be committed to the development of overseas sales next year.

In addition, spandex business continued to maintain the first three quarters of the profit level, an additional 40 million tons of capacity has been trial production. Company insiders said that compared with last year's huge losses, it would not be a problem to turn deficits into profits this year.

* * viscose short fibre Industry continues to slump, enterprises start shutting down production lines *

It is understood that the short staple fiber industry has been expanding since 2011. Due to this situation, many enterprises have chosen to slow down the pace of production increase or even shut down some production lines, and small businesses are gradually on the verge of being eliminated. To this, Xinxiang chemical fiber insiders said that the company is gradually reducing production capacity next year, and strengthening the advantages of the project to extend the industrial chain.

The above said that, because the short fiber industry has been expanding too fast in recent years, the price of the products has been falling all the way. In 2011, the price of staple fiber was as high as 20000 yuan / ton, and the price has dropped to 13000 yuan / ton at present, and the price has been in a loss stage for a long time. It now accounts for 30% of the company's main revenue. The company has shut down an old production line last year and will gradually reduce its capacity next year according to market demand.

Industry analysts said that at present, the short fiber gross margin loss is about 200 yuan / ton, and the price difference between cotton and cotton is still around 5000 yuan / ton. The new capacity was mainly launched last year, and the new capacity in 2012 was 780 thousand tons, with an incremental capacity of about 29%. As the price of viscose staple fiber has dropped sharply, although the raw material has also dropped to a certain extent, the price difference has been narrowing gradually, resulting in a substantial loss in 2012. As the industry continues to slump, small businesses will be eliminated in the future.

* * Xinxiang chemical fiber project short fiber transformation, functional fiber into a new direction * *

"Viscose staple fiber is in the stage of transformation. The future plan focuses on developing exclusive patent functional fibers and extending the industrial chain to downstream." Xinxiang chemical fiber Insiders say so when they talk about the short business of this business.

He said that because of the long-term loss of viscose staple fiber, the company plans two steps in the future. On the one hand, it should further strengthen the advantage projects, and on the other hand, consider extending the industrial chain to the downstream, so that the profit interval of the company can be improved.