Textile Enterprises Or Transferring Capacity To Southeast Asia And South Asia

"China Spin clothing Enterprises, especially small and medium-sized enterprises, are facing increasingly serious problems. They began to migrate factories to Southeast Asian and South Asian countries with more labour cost advantages. We must prevent the crisis of further migration of industries. " Gao Dekang, chairman of Bosideng, once said.

Now, the trend of textile enterprises transferring capacity to Southeast Asia and South Asia is more and more obvious. Reporters noted that only a few months later, several listed textile companies or related parties announced their investment plans in the above regions.

Textile enterprises to make such a choice, for themselves and the whole industry is in danger or machine? CIC light industry researcher Xiao Kun, an interview with reporters, said that with the domestic and foreign cotton prices upside down, domestic manpower Soaring costs Textile and garment industry is facing more and more pressure on industrial transformation and upgrading. The pace of "going out" has obviously accelerated. "Many are not the wishes of the enterprises themselves, but the customers are forcing them to go."

Southeast Asia and South Asia

Pakistan Karachi Stock Exchange announced on Thursday that Shandong Ruyi Technology Group (hereinafter referred to as "Ruyi technology") issued a takeover offer to Masood Textile Mills, a listed textile company in Pakistan, and plans to acquire 31 million 200 thousand shares, or 52% shares, of the latter.

Statistics show that Qiu Yafu, chairman of Ruyi technology, is also a legal representative and chairman of Shandong Ruyi (002193). Ruyi technology also indirectly owns Shandong Ruyi 6.98% stake through Ruyi wool textile group. Qiu Yafu controlled Shandong Ruyi is one of the most enthusiastic overseas buyers in Shandong textile enterprises, and has been involved in Australia, Japan, Korea and New Zealand.

The Karachi exchange announcement did not disclose the takeover price, but the company's share price rose more than 5% in 6 consecutive trading days since November 27th, rising from 48 rupees to 48 rupees. After the dividend ex dividend in December 2nd, the company's share price continued to rise from 55.49 rupees to 6 rupees / shares on the 6 day, or about 7 yuan / share.

Coincidentally, another textile enterprise in Shandong, Lu Tai A (000726), also announced last week. overseas investment The plan aims at Kampuchea, a Southeast Asian country.

According to the disclosure, the company intends to invest in the establishment of Lu Tai (Kampuchea) Limited, with a total investment of US $8 million, accounting for 100% of the total investment. Lu Tai (Kampuchea) Co., Ltd. will mainly engage in the processing and sales of shirts, and other business activities that are in line with the laws of Kampuchea. The scale of production is 3 million shirts per year.

Lu Tai A said that the investment can give full play to the advantages of the company in the yarn dyed fabric, avoid the plaguing of the continuous rise of domestic labor costs, give play to the relatively low labor resources advantages of ASEAN region, and enhance the international competitiveness and profitability of the garment processing company.

Also looking at Kampuchea, there is also the Bank of China's cashmere industry (000982). The company has established a production enterprise in Kampuchea by renaming Kampuchea Xin Wang Knitting Co., Ltd. 91% of its shares and adding capital to the company, and renamed it as "Bank of China (Kampuchea) textile limited liability company". It mainly produces, processes and trades cashmere and other kinds of textile garments, and at the same time takes the subsidiary company as the main body to invest in the production of 2 million multi component special fiber knitwear production lines annually.

　　 Danger and opportunity

"Now that domestic demand is not booming, export orders have decreased by 1/3 this year, and many customers have gone to Southeast Asia." Mr. Meng, head of a textile enterprise in Xiajin County, Dezhou, said many of her colleagues began to consider setting up factories in Southeast Asia. "Like Kampuchea, labor costs per month are less than 1000 yuan per person per month, but in the country, the monthly wage of a front-line worker is close to 3000 yuan."

The gap between cotton prices and labor costs does lead to the loss of low-end orders in the textile industry to Southeast Asia in the past two years. Since the beginning of last year, this shift has accelerated the trend. The increasing cost of manpower and land in the Midwest of China has weakened the investment enthusiasm of enterprises. On the other hand, the Southeast Asian region has not only low operating costs, but also the enthusiasm of local governments for attracting foreign investment. Xiong Xiaokun explained.

However, many people in the industry believe that "going global" to seek better resource allocation and establish a more efficient multinational supply chain is the inevitable trend of the textile industry in the context of current transformation and upgrading.

Wang Tiankai, President of the China Textile Industry Federation, said that the current layout of the international textile industry to the developing countries with more cost comparative advantages has intensified the competition in the international market, but it has been able to resolve excess capacity and provide opportunities and power for China's textile industry to accelerate the establishment of new international competitive advantages.

In fact, not only Chinese textile companies began to "go to sea", but also in the second half of this year, foreign textile enterprises have shifted positions in Chinese factories.

　　 Textile chamber of Commerce The head of the Ministry of information said that the Japanese Castle Peak commercial plan to build a direct factory in Indonesia will gradually reduce its production in China from 70% to less than 50%. The third chamber of Commerce plans to transfer some orders from down garments to Burma to turn Kampuchea's summer jacket clothing orders to Kampuchea. UNIQLO plans to expand its capacity in Bangladesh and Indonesia and reduce its production in China from 75% to 60%.

In response to the worries expressed by many entrepreneurs like Gao Dekang, Xiong Xiaokun told reporters that the industrial gradient transfer is inevitable, and the late turn is not as early as possible. He suggests that enterprises can still keep their positions in high-end fields, such as fabric functionalization and fashion styling, and use surplus funds to develop new fabrics with high technology content, such as high fiber, non iron and nano technology.