Investment And Expansion Of The Company

On February 4th, Premier Wen Jiabao chaired a State Council executive meeting to deliberate and adopt the adjustment and revitalization plan of textile industry and equipment manufacturing industry in principle.

This plan is of great significance to China's textile enterprises in the cold winter.

In particular, "the export tax rebate rate of textile and clothing increased from 14% to 15%. Policies such as credit support for enterprises with better fundamentals but temporarily operating and financial difficulties" have enabled textile enterprises to benefit immediately and smell the long lost spring.

In fact, in the face of various unfavorable factors, the textile industry has begun to carry out strategic self rescue, and many coastal enterprises have migrated inland.

At the same time, there are also some big enterprises, who have won a lot of orders, and have begun to recruit new employees.

Industry experts have said that the cost factor is important, but the huge market demand in the central and western regions may be more valued by the enterprises.

"If there is no market demand, there is no enterprise to build factories in the interior.

Social services, supporting industry chains, skilled workers and other factors need to be carefully considered by enterprises.

In Lujiang, Anhui, people who work in the field usually leave home after fifteen of the first month.

In February 4th, at the beginning of the year of the year of the ox, ten, from Yiwu, Zhejiang, the sock group of the socks industry started a large-scale recruitment campaign there.

In June last year, the first and next phase of the first phase of the project started in June.

He said it had enough orders, and it has been released in June this year.

With the increasing tension of labor resources and land in the Yangtze River Delta region, accelerating the pfer of industries to the central and western regions seems to be the choice of more and more textile enterprises under the financial turmoil.

But apart from the cost, it is also an important factor to consider the opening up of the Midwest market.

In June, in June, Mr. Yu was sent from Lujiang to Lujiang to take charge of the construction of the factory building. He took the son who had not yet attended school to live in a temporary housing. The gate was facing the 2 factory of rift.

As early as May 2008, he decided to invest 400 million yuan in Lujiang to set up Lujiang's industrial park.

According to the plan, he will invest in Lujiang in two phases. After the completion of the industrial park, the number of factory buildings will reach 11.

In February this year, the 4 standardized factories in Lujiang County West New District have been completed, and equipment installation is about to begin.

At present, we have set a timetable for building all the plants by November 2009.

Lujiang, located in the central part of Anhui Province, is a large agricultural county. The traditional pillar industry is mining industry.

Since 1996, local governments have been making great efforts to build economic development zones.

However, it was not until 2006 when the local development zones were upgraded to the provincial level that the enterprises that came to invest began to increase.

Weng Rongjin, chairman of the group, said in an interview with the daily economic news that the most attractive source of labor for Lujiang is abundant labor resources. Besides, it is closer to Yiwu headquarters and has a certain radiation effect in Anhui.

Weng Rongjin said that the financial turmoil did not have much impact on the company. The biggest problem now is how to complete the order on time.

It is understood that, when the factory building was not completed last year, the company had already rented the existing workshops and began production.

Lujiang is not the first place to move inland.

In Yibin, Sichuan, the factory has been put into operation several years ago.

It is also an important factor to consider the relocation of production to the west central market in addition to cost considerations.

Weng Rongjin said that she would continue to shift to the West and central China.

He believes that the financial turmoil is the most serious impact on textile enterprises which rely on exports and brands. With the increasing tension of labor resources and land in the Yangtze River Delta region, the textile enterprises will move to the central and western regions in the future.

A lot of recruitment has become a top priority. Due to the large number of orders, the most urgent job for the company is recruitment.

It is understood that, due to the economic crisis since last year, many small and medium-sized enterprises closed down, resulting in a large number of orders to focus on the company.

"The annual production orders are already full," said the insiders of the group. New equipment will be available in April and May, and the staff gap will start to increase. For this reason, the company began to recruit large quantities before and after the Spring Festival.

In February 4th, he launched a large-scale recruitment campaign in Lujiang.

Weng Rongjin thought that letting migrant workers work at home would help them take care of their families and benefit the enterprises.

According to the data released by the Lujiang county government in 2007, there are about 410 thousand labor force aged 18 to 45 in the county, and about 1/3 of the workforce is left behind.

After the financial crisis, this proportion is likely to expand.

According to our understanding, we have planned to build 6 staff dormitories in the factory area, which can accommodate 2000 workers.

In order to recruit workers, in addition to the recruitment meeting and the GFA leaflet, the director of the employment agency of deep sand has gone deep into various townships in Lujiang.

According to the recruitment leaflet issued by the Sha Sha, the wages of skilled workers are calculated by piecework method, including various rewards, and the workers' monthly income can reach 1500 to 2000 yuan.

In the "production factor price list" published by the Lujiang county government, the per capita monthly wage of the local people is 1000 yuan, while the average monthly salary of the enterprise in the past three years is only 800 yuan.

The salary conditions provided by the company are attractive locally.

Despite the large number of applicants, Mr. Yu only recruited more than 60 workers before the Spring Festival.

Compared with Yiwu, Lujiang's workers are far from proficient enough, so the company has to train workers.

Many executives, machine repairmen, and technical masters were sent from Yiwu.

Besides, Lujiang's local high-end talent is still scarce. Although the list of deputy general managers with annual salary of 8 to 150 thousand yuan is listed on the brochure, there are few people who can meet the requirements.

The government has enthusiastically opened the bus line to Lujiang, and on the other hand, the government has to solve the problem of local employment.

After staying in Lujiang for more than half a year, Mr. Yu felt most strongly about the enthusiasm of the local government.

The executives in the area also frequently arrived, and the gap was less than half a month.

It is understood that, due to the impact of the financial crisis, the economic benefits of local mines in Lujiang plummeted from last year, and the prices of mineral products dropped to the original one to 20%. Many enterprises began to leave their employees.

Employment has become an urgent problem for local governments.

In order to provide convenience for Lujiang, the county government has already started operation of the "Chengxi bus" line.

The bus passes through the county town and goes to the Sha Sha directly, so as to facilitate the workers who live in the county town to work.

It is understood that after the construction and operation of the factory, all 5000 jobs will be created locally, and the output value will reach 8 hundred million in 2010, and the tax revenue will reach 40 million ~5000 yuan.

Local people told reporters that enterprises can move to Lujiang almost everywhere to save money.

The price of electricity in Lujiang is relatively cheap, and there will be no shortage of electricity. The cost of water resources, plant construction, land and pportation is lower than that in coastal developed areas.

Weng Rongjin said that after the operation, Lujiang's products will be sold both at home and abroad.

Reporters have learned that the company has set up stores in the local and nearby capital cities, and the products may be pported through the adjacent Yangtze River waterway.

In addition, Lujiang is only 1 hours and 40 minutes' drive from Hefei Luogang Airport and the newly built Xinqiao airport. It is also very convenient for pportation.

In depth analysis, the demand for production to move to the market is the key. Under the financial crisis, the textile industry is generally facing difficulties, and shifting production to the Midwest has become a priority option for textile enterprises to reduce costs.

Industry experts have indicated that the cost factor is important, but the market demand may be more valued by the enterprises.

The most important thing is to follow the market. Government officials in Lujiang told reporters that many textile enterprises in Nantong, Jiangsu, started to visit Lujiang recently.

Compared with the coastal areas, the cost advantages of the central and western regions are beyond doubt, but the huge market demand here is also valued by enterprises.

A large population of the central and western regions represents a huge market demand. Under the current general demand downturn, labor-intensive enterprises move the production base and develop the local market with the opportunity to become a way out for the enterprises under the financial crisis. At the same time, they may also bring some opportunities to the central and western regions.

Some analysts believe that the relocation of industries will bring a lot of positive effects, not only conducive to the pformation of coastal areas to high-tech industries, but also opportunities for the Midwest cities that lack capital and labor.

The government of the industrial undertaking will usually introduce a number of preferential policies for tax and land use so as to save costs for enterprises.

Zhou Tiansheng, executive vice president and Secretary General of Guangdong Textile Association, said in an interview with "daily economic news" that "capital is definitely the place to maximize profits."

"There are many cities in Northeast, Jiangxi, Hunan and Sichuan to find textile enterprises in Guangdong Province, hoping to become a place to undertake the relocation of enterprises.

But businesses do not mean moving.

Zhou Tiansheng emphasized that the most important thing for processing enterprises to move inland is to follow the market.

"The cost of an employee 200~300 yuan is not the biggest impact on the enterprise, the cost is derived from a comprehensive factor."

Zhou Tiansheng said that the cost of labor and land can not be seen at all, and the comprehensive cost of logistics, industrial chain and social services should be considered.

"If there is no market demand, there is no enterprise to build factories in the interior.

Social services, supporting industry chains, skilled workers and other factors are all enterprises need to consider carefully, "joint Securities researcher said.

In the process of pfer, we seek to upgrade industries. In addition to shifting production to inland cities, enterprises are also looking to the domestic market in a severe international environment.

First textile network editor in chief Wang Cheng analysis, "many enterprises are precisely looking at this big cake and choosing to move inland."

But Zhou Tiansheng thought, "domestic sales do not mean turning around."

He said that many enterprises now only engage in production and do not directly target consumers.

The change of marketing strategy also needs to be judged by intermediate links.

The researcher of the joint securities also believes that in the process of pferring production, "the upgrading of enterprises should be synchronous."

If the textile companies want to produce better products, they need to upgrade their machinery and equipment, the researchers said.

In fact, the upgrading of industries in the Midwest cities is correspondingly low.

The researchers also said that if the old system was used, enterprises would not be able to make money, and the products would be phased out.

Zhou Tiansheng also expressed his view on the industrial upgrading in the process of migration. "When building a new factory, investors who really want to do business will definitely want to get better and better in technology, energy saving and environmental protection, and industrial upgrading is necessary."

But he pointed out that at present, some inland cities in order to complete their investment targets, do not pay attention to changes in the industry, reduce the threshold of blind investment, which in fact has gone the old way of coastal areas.

Experts suggested that textile and clothing should also go to the countryside. At the beginning of this month, the executive session of the State Council passed the plan of textile industry adjustment and revitalization.

Wang Qian, editor in chief of the first textile network, believes that export enterprises may not be able to make real profits. If the external demand is shrinking, expanding the domestic market is undoubtedly a top priority for garment enterprises.

"The actual growth rate of clothing domestic demand is basically maintained at around 15%, and it can not completely compensate for the weakening of investment and exports."

In Wang Qian's view, the release of domestic demand energy is a slow process. It is estimated that the average annual growth rate of clothing retail sales in China will be 10%~15% in the next few years, and the total retail sales in 2010 will reach 1 trillion yuan.

"China's textile and clothing consumption is extremely uneven, the consumption level of urban residents is relatively high, and the rural market is at a very low level.

According to the data in 2008, urban residents spend more than 1000 yuan on clothing every year, but less than 200 yuan in rural areas, which is only about 1/5 of the urban area.

Wang Qianjin believes that textile and clothing should also go to the countryside. On the one hand, the consumption level of the rural areas is still at a lower level; on the other hand, the rural population is large and the market potential is very large.

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