How Do Garment Enterprises That Transform Their Masks To "Whole Body Retreat" After The Outbreak?

An epidemic has caught everyone off guard. Mask has become the scarce resource at present. China is the largest producer and exporter of masks in the world, accounting for 50% of the world's total. Recently, China's mask production capacity has exceeded 100 million. Since the outbreak, many small and medium-sized garment factories have switched to masks production. Seeing that China's epidemic situation has been greatly alleviated, the productivity of masks is slowly improving. How did the garment enterprises fight the mask production after the epidemic? What should these garment factories do after the epidemic? Can they "retire all over the body"?

The government encourages the garment enterprises to refrain from changing the production line masks, and coordinate the local staff to go to the post to deal with the situation that the field workers can not get to the post. They are also actively adjusting the local unemployed workers who can not return to work in the local factories. The strong organization and production capacity will enhance the masks capacity in China in a short time.

Small and medium-sized garment processing plant mainly rebuilds production lines.

Small and medium-sized garment processing plants have natural advantages in the transformation of production masks. There are many similarities between the existing equipment and the mask processing equipment, and the production line is also in general agreement. But there will be a certain degree of adjustment in production.

After the transformation of small and medium-sized garment processing enterprises, the production of civil respirator is mainly, after satisfying the self employment of their own factories, the excess capacity can be provided to the upstream and downstream suppliers and distributors. The factory for changing the mask will undergo the transformation of operation: remove the original production line and transform it into a mask production workshop. It can be seen that in fact, for a small garment processing plant, the degree of transformation is not large.

The biggest problem in the process of conversion is the raw materials, especially the spray melted cloth. According to Xinhua news, the core material of masks rose from 20 thousand yuan per ton to about 300000 yuan / ton. The industry is expected to rise in the future. Melt blown non-woven fabrics have risen more than 15 times in the past month or so, forming a very strong seller's market.

Big companies officially enter the medical supplies industry.

Based on the above practical problems, A shares were listed in Dongguan in February 25th, announcing that the wholly-owned subsidiary of the city search special medical supplies Co., Ltd. is making full preparations for mask production. Masks export certification is also being actively promoted, and is expected to be put into production in early March.

Sky eye showed that the wholly-owned subsidiary of search special in February 13, 2020 was established in February 26th, with a registered capital of 200 million. Its business scope includes the first class medical devices, second kinds of medical devices (medical masks, spray melted cloth, etc.). Business scope changed in February 26th, and daily masks and disinfectant supplies were added.

According to the news of March 4th, in search of the interactive platform, the company said that the company is mainly Buying melted spray cloth in the market. The wholly-owned subsidiary of the company is actively promoting the preparatory work of melt blown fabric production.

It is noteworthy that by the end of March 4th, search had been on 5 consecutive trading days for 6 days.

After the outbreak, what is the future of excess capacity?

Government purchasing and storing excess mask production capacity

For some enterprises concerned about the problem of overcapacity of masks in the future, the NDRC has publicly stated and stressed again: after the epidemic, the surplus production will be carried out by the government, so long as the standards are met, enterprises can organize their production at full capacity.

Global epidemic continues and demand for respirators is not decreasing.

Despite the marked increase in China's mask production, many analysts pointed out that the gap is still large. Zhang Yu, chief macroeconomic analyst at Huachang securities, said that the total number of employed people in the two or three industry in China amounted to 530 million people. If a comprehensive resumption of work was done, 530 million people would be required to supply 530 million masks per day. Under extreme circumstances, only "two production + medical workers + transportation industry resumed" would need 238 million per day.

In addition, due to the continuous development of the global epidemic, and China as a large country of mask production, the time line of mask production will continue to lengthen in the future. Coupled with the impact of the epidemic, clothing unsalable, the market is sluggish. In the future, the market demand for mask is relatively high. So these fast entry masks will have a better development of garment enterprises, which is a wise choice for the transition period.

Based on the above, we can see that the transformation scale of small and medium-sized garment enterprises in production lines and equipment is not very large, so for the restoration of the original production line, resources and so on are in the controllable range.

Just like the Soviet Union's tractor factory during the Second World War, most of the area was occupied in response to the sudden invasion of Germany. In order to make up for the productivity gap in Germany, the Soviet Union produced a tractor's civilian factory and quickly switched to tank production under the guidance of the government. After the end of World War II, the order of tanks slowed down, and the tractor factory which converted to production resumed tractor production. China's garment enterprises and masks can also switch between dynamic production capacity.

Epidemic and war are special emergency turntables of a society. In such a state, a large number of temporary market demand will be generated. So at this time, speculative mentality is very dangerous, unable to recover the cost of equipment and raw material investment in the short term, coupled with the panic of large-scale market demand in the future. Whether or not the masks should be converted to their own actual conditions can make full use of the original resources on the basis of being able to bear the cost of transformation so as to give full play to their advantages, expand their production capacity and achieve the optimal conversion.