China'S Textile Industry Has Greater Room For Development.

< p > Zhejiang Cole Group invested $218 million to open factories in the United States. This is China's first a target= "_blank" href= "http://www.91se91.com/" > textile < /a > for the first time to build factories in the United States.

Voice of the economy: going out, China's textile industry has greater room for development.

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< p > it is reported that cotton textile leading enterprise Cole Zhejiang Group Limited will open its first overseas factory in Lancaster County, South Carolina, with a total investment of US $218 million.

Reported that the contract has been pformed from intent investment to substantive effect, the first phase of the project will start in February 2014 and is expected to be put into operation in October 2014.

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Cole P became the first textile enterprise in China to set up a manufacturing factory in the United States.

At the end of last year, they began looking for investment opportunities in Vietnam, India, Pakistan, the United States and other countries, and finally placed their factories in the United States.

They calculated the accounts in detail. The new factory needs about 500 labor force, the domestic labor costs about 50 thousand yuan per year, and the United States needs 200 thousand yuan, but the domestic labor cost is rising year by year, and the US level has been maintained for 20 years.

The annual cotton consumption is about 150 thousand tons, and the average cotton price per ton in China is about 5000 yuan higher than foreign countries. This means that although the labor force of the United States is relatively high, the raw material of cotton can be saved by 750 million yuan.

Moreover, cotton textile has more power consumption, and the domestic electricity cost is 0.7 yuan, while the United States has only 0.3 yuan.

Because the domestic cotton price is much higher than the international cotton price, it is not new for textile enterprises to go abroad to run factories. But in the past, factories directly run factories mainly in emerging markets or developing countries, and it is rare to go to factories in developed countries such as the United States directly.

Some experts pointed out that at present, some traditional manufacturing industries in southeast coastal areas are pferring to other countries such as Southeast Asia, but the mode is still the mode of traditional manufacturing in the early days of our country. Cole group's operation in the US can bring some new enlightenment to the development of manufacturing industry. With the increase of factors such as trade barriers, land, labor, resources and other factors, the "going out" strategy can effectively promote industrial pformation and upgrading, and achieve growth and improvement in resources, technology, brand, market and competitiveness.

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< p > Zhang Handong, President of Zhejiang Business Research Institute, said that foreign investment in manufacturing industry mainly included equity investment and mergers and acquisitions. Direct factories were mainly in emerging markets or developing countries, and factories in developed countries such as the United States were relatively rare.

With the restriction of trade barriers and the rising cost of land, labor and resources, it is estimated that direct foreign investment will become more and more.

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< p > < < a href= > http://www.91se91.com/news/index_s.asp > cotton price > /a > much higher than the international cotton price, labor and energy costs rising, coupled with environmental pressure and insufficient demand. The cotton textile enterprises in China are not at a good time now. The research conducted by China Cotton Trade Association in late October shows that the downstream market demand has not improved, the enterprise orders are not prosperous, the underemployment is insufficient, and sales are not smooth.

It should be said that it is necessary to go out of the castration, but in recent years, enterprises going abroad to run factories are going to the emerging market or developing market.

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< p > Zhang Lidong said, first of all, from a separate case, it is indeed rare. Chinese traditional manufacturing enterprises go to the market in the mature market economies of the United States. This is relatively new, but if you look at some factors behind the scenes, you will find that it is a very reasonable investment behavior.

First of all, we see the exchange rate factor. We now know that the trend of RMB appreciation is unchanged. Recently, a dollar has been exchanged for RMB 6.1. Now this trend is continuing. We can also recall that last year there was a news that the RMB continued to appreciate. After a year's time, the investment in overseas markets was less than a hundred million, that is to say, this time is the most favorable time to invest overseas, which is from the angle of exchange rate.

Consider other factors.

First of all, we see that this field is located in South Carolina, south-east of the United States, and South Carolina itself. It has the basis of a textile industry. In those days, during the last round of large-scale industrial pfer, the textile enterprises in the United States moved to the present. We see some developing countries. That is to say, at that time, there were some foundations in South Carolina. Besides, from the wage level of South Carolina workers, the average wages of the whole and the United States were fully respected, and the salary level of South Carolina was relatively low.

Of course, in addition to considering these factors, it is more important to look at this business from the perspective of the enterprises. It is necessary to bypass the trade barriers of textile industry. The barriers to trade in the US trade are more obvious for textile trade. The tax rate ladder is rising from 20% to 50%, and it will avoid such a trade barrier directly.

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< p > host: you mentioned four reasons. Do you think you can copy the experience of going out to the United States to run a factory like this? < /p >

< p > Zhang Lidong: I think going to the United States to run factories and factories, especially in South Carolina, where these traditional manufacturing industries are more intensive, are actually more and more. We have heard similar situations this year, including some enterprises in India, such as South Carolina.

By the way, I can say a word, that is, around 2000, China's Haier has been in the United States, that is, in the United States, the factory is in South Carolina, so I think experience can be learned, but are our other manufacturing industries based on the internationalization strategy of your company?

In addition, your product is not plagued by trade barriers, I think this is also a specific analysis.

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< p > host: we must not rush out blindly, we need to analyze the specific situation.

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< p > Zhang Lidong: you can learn, not necessarily copy.

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Moderator: in particular, we need to figure out this fine account. In the end, it is not worthwhile to go out. In the past few years, the news from traditional manufacturing to emerging markets or to developing countries to run the market should not be new. It is still a model of the traditional manufacturing industry in our country. This time, when we venture to the us to run factories, we are also exploring new models. This is obviously more favorable for pformation and upgrading. What kind of inspiration can it bring to our country's manufacturing industry pfer? < /p > p

< p > Zhang Lidong: I think that for the pfer of manufacturing industry, we may pay more attention to the price risk of some basic elements, such as labor force, including land and so on. But in fact, there may be more and more external risks in the future, and more and more concentrated on the original elements, which may occur in exchange rate, such as exchange rate factors and fluctuations, because we know that many enterprises pfer industries to Vietnam, Indonesia and other countries. The exchange rate of these countries is very unstable, and finally caused a great deal of losses, so I think that in a mature market economy country, it will avoid such problems.

In addition, from a legal perspective, it is possible to go to the United States, including measures to counter some of its legal trade volume. You are really anti monopoly or manufacturing those trade barriers. You can hit the inside of it and play a close game with it. Maybe you can learn more about this aspect for enterprises.

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< p > host: from the analysis just now, is it for Zhejiang Cole group to set up a factory in the United States for 218 million US dollars?

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< p > Zhang Lidong: This is the case. From the perspective of the future, as I mentioned just now, this area is located on the southeastern coast of the United States, that is, it is next to the Atlantic (6.98, 0.14, 2.05%). It is very close to Central America and Europe, and the regional advantage is very obvious.

In addition, the advantage of a North American FTA is that the trading partners in the region are free and can play a good role in reducing costs.

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P: host: that's the worst plan. Do you think they will have some difficulties? What are these difficulties? < /p >

< p > Zhang Lidong: there will also be risks, including the exchange rate risk just now. If we now know that the RMB is in constant appreciation, it may bring some risks to the investment in case of any depreciation.

In addition, from the perspective of the potential of other private enterprises in the United States and Chinese enterprises to invest in the United States, including some members' consideration of national security or interference from trade union level, if these conditions occur, it may be faced with some new problems for Chinese enterprises. I think these risk factors still exist.

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< p > host: to build factories in emerging markets or developing countries or to run factories in developed countries? Which is better? What should enterprises pay attention to when they go out? < /p >

< p > Zhang Lidong: as for where to go to run a factory, it is still necessary to settle accounts first. What is your cost and income position for < a href= "http://www.91se91.com/news/index_c.asp" > Enterprise < /a > it does not necessarily say that the developed countries are the best, maybe in developing countries, its market potential will be greater.

But if you are a multinational company or have a very large international strategy, it may be a good choice for the developed countries to allow for some local production conditions or their legal conditions.

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