Dai Yin 640 Million Ma Multinational Spinning And Weaving Base

The "640 million Ma" and "200 thousand spindles spinning base", the huge investment amount and the large-scale production target, made the recent China Dai Yin group's implementation of the "going out" strategy has been widely concerned by the industry.

China Dai Yin textile and garment (China) group will set up a spinning base in Malaysia, Malaysia (Sedenak Industrial Park) in Malaysia, Malaysia, through its subsidiary Dai Yin textile (Malaysia) Co., Ltd., 640 million Malaysia ringgit (about 1 billion 264 million RMB).

Dai Yin group and Ma Dahua Bank (UOB Malaysia) signed a cooperation agreement on credit financing, business settlement and comprehensive business.

Dai Yin textile (Malaysia) Co., Ltd. will introduce the world's advanced textile equipment and build a spinning base of 200 thousand spindles, with an estimated annual export volume of about 350 million US dollars.

Layout overseas, building a spinning base, fully test the enterprise's infrastructure construction ability and anti risk quality.

Dai Yin group is a large comprehensive enterprise integrating spinning, weaving, clothing, import and export trade, and pnational production and operation. In 2013, the total import and export volume of the group was US $210 million.

Back in 2000,

The group chose the first overseas base in Sri Lanka and invested in the Dai Yin Lanka apparel company.

In recent years, Dai Yin group has vigorously implemented the strategy of "going out", and has several branches such as American trading Co and Canada Commercial Corporation. Now, it aims at "going abroad" in Southeast Asian countries.

The construction of Dai Yin textile Malaysia Company is an important move made by Dai Yin group to adapt to the global economic integration and actively implement the internationalization strategy. Zhao Huanchen, chairman of Dai Yin group, said that Dai Yin will build a spinning base in two phases in Malaysia, and the first phase of construction is currently producing an annual output of 100 thousand spindles.

According to Zhao Huanchen, the construction of the new 100 thousand spindles project, on the one hand, can achieve a reasonable distribution of the company's business globally, closer to the market, allocate resources rationally and seize the opportunity to seize the market. On the other hand, with the rapid development of the overall level of China's spinning equipment, the cost performance of the complete sets of equipment has a strong advantage in the world.

The new factory will make use of our mature spinning production and management experience to make product quality and cost competitive advantages more prominent.

In addition, Malaysia workers in recent years, domestic

The cost of raw materials and labor has risen sharply, and the processing orders in Europe and the United States have been pferred to neighboring countries such as India, Vietnam, Kampuchea and Malaysia. Dai Yin said that the labor cost of the above countries is only about 60% of the domestic cost, and the raw material cost is only about 70% of that of the domestic market.

After many investigations, Dai Yin group decided to establish Malaysia Dai Yin company in Malaysia.

Zhao Huanchen said that Dai Yin invested and built factories in Malaysia, hoping to make full use of the cost advantage of the country, which is mainly reflected in three aspects.

"First, the advantages of raw materials.

For the cotton textile industry, raw material costs account for about 70%~75% of the total cost. Due to the quota management of imported cotton in China, the domestic and foreign cotton prices are quite different, and Dai Yin is an important market with export market as a business. Thus, our products lose the competitiveness of similar products in the international market.

Malaysia does not produce cotton in its own country. It has no restrictions on imported cotton and is exempted from the export of raw materials and products for export processing enterprises.

Second, the advantages of labor resources.

Due to the fact that Malaysia has a small population, it allows factories to import and use foreign labor, while expatriate workers are relatively easy to manage. The workforce is relatively stable, the quality of labor is relatively high, and the wage cost is relatively stable and easy to control.

Third, power resources advantages.

Malaysia has abundant natural gas resources as the main power supply, the power facilities are complete, the power system is safe and stable, and the power supply is reliable. The average electricity price is 0.72 yuan / degree, which is more than 28% cheaper than the domestic electricity price.

Spinning power costs account for about 10%, thereby greatly reducing production costs.

The policy guarantee to invest in Malaysia is another attraction for Dai Yin to "go out".

Malaysia is one of the TPP member countries. Trade between member states can enjoy preferential policies such as tariff reduction and exemption. In addition, according to Zhao Huanchen, the Malaysia government has introduced a series of new measures to promote investment growth and revised the catalogue of foreign investment industries.

Incentive measures and preferential measures are mainly in the form of tax deduction, which are divided into two types: direct tax incentives and indirect tax incentives.

Direct tax incentives refer to a partial or full reduction of income tax for a certain period of time; for example, the textile enterprises, for example, can obtain a new industrial status (PS), and enjoy a partial reduction of income tax for a period of 5 years, and only 30% of the statutory income is required to collect income tax.

Then there are preferential measures such as reinvestment subsidy (RA) and accelerated capital subsidy (ACA).

Indirect tax incentives are exempt from import tax, sales tax or domestic tax.

"During the construction of Malaysia Company, Malaysia government, Ministry of trade and industry, Johore leadership, industrial park and other relevant departments have provided various preferential policies and convenient conditions to provide effective protection for the smooth start construction of factories.

In the future, Dai Yin will optimize the allocation of all aspects of R & D, design, production and marketing in the global scope, and gradually establish the development mode of pnational enterprises, enhance the ability of enterprises to resist market risks and sustainable development capabilities, and accelerate the pace of internationalization.

Zhao Huanchen said.