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    Linqing County, Shandong Province: Practice Internal Power And Stabilize Management

    2020/8/21 14:28:00 1246

    Shandong And Hubei Textile Enterprises Operate NormallyWhat To Seize Domestic Demand Orders?

    Linqing County, Shandong Province: practice internal power and stabilize management

    Local textile mills mainly produce pure cotton yarn, ranging from low count rotor spinning to medium high count ring spinning, with a total capacity of more than 3 million spindles. Some enterprises are facing bankruptcy or temporary shutdown, and some enterprises can maintain healthy operation. We visited two large-scale local textile enterprises, about 300000 spindles and 600000 spindles respectively, with complete industrial chain, including spinning, weaving and printing and dyeing. Cotton spinning sector basically maintained full load operation, downstream printing and dyeing started more than 70%. Both of them are export-oriented enterprises, and the overall export situation has a limited decline compared with previous years. One has a decrease of about 20%, while the other is almost flat. The two enterprises share the following characteristics:

    First, the whole industry chain model

    As a result of the successful extension of the two enterprises to weaving and printing and dyeing, forming their own cost and scale advantages, effectively improving the competitiveness and profit margin. Most of the yarns in the spinning process are for their own use. Only a small amount of medium and high count yarns are sold externally. In addition, the yarn structure is adjusted in time according to the market situation, and the proportion of blended yarn is moderately increased. As a result, the finished yarn inventory is relatively low, all within 15 days, but it is slightly higher than that in the same period last year.

    Second, the product has certain differentiation

    Although the end products of these two textile enterprises are mainly exported, the export market anchored is not Europe and the United States, but the printed fabric market in Africa. One of them accounts for about 20% of the total amount of printed fabrics exported to Africa. Under the influence of the new epidemic situation this year, the European and American markets have shrunk sharply, but the rigid demand of the African market is relatively stable. The environmental protection process of African printed fabric is relatively difficult to pass, so there is a certain threshold. Domestic enterprises do not enter much, so the profit and sales volume are relatively stable.

    Third, strengthen the internal training

    Enterprises have made great efforts in reducing costs and energy consumption, and at the same time, they have also increased some varieties suitable for domestic demand and seized a part of the domestic demand market. "Eggs can't be put in one basket". There is a risk of over dependence on any market. Although the African market is relatively stable, there is also the possibility of the impact of other factors such as epidemic situation in the future. Therefore, the two enterprises are also trying to open up new markets and open up new development space. However, the problem of difficult loans and expensive loans still exists in textile enterprises. Enterprises also hope that the government can introduce more help policies to help enterprises tide over the difficulties faster.

    Hubei: textile enterprises maintain normal operation, product degradation transformation

    According to the national cotton textile industry reform quota of 610000 tons in 2018, Hubei Province is close to the 6000t cotton quota declared by the national textile and Trade Commission. According to the statistics of China's cotton industry reform, Hubei Province ranks close to the 6000t cotton production quota, which is higher than China's cotton industry in the fifth year.

    The person in charge of a state-owned textile enterprise in Wuhan, Hubei Province revealed that a few years ago, the enterprise launched into the middle and high-end cotton yarn Market and purchased the world's advanced cotton yarn production equipment, mainly producing combed 80s and 100s yarns. The main reason is that the state-owned enterprises do not have an advantage in the low-end yarn market, and the production of high-value-added products is the core and direction of development. However, the sudden outbreak of the epidemic has disrupted the development of the enterprise Due to the restriction of foreign trade and export, the high-end yarn market has declined sharply, so it can only develop the domestic medium and low-end market. Each production equipment with a value of 10 million yuan produces combed 40 and other middle end yarns, which is really overkill. Although this phenomenon is rare in Hubei Province, the domestic medium and low-end market really needs enterprises to survive. According to the introduction of enterprises, foreign trade orders are mainly high-end yarn, and domestic market is mainly low-end yarn.

    Since the start-up, the main production scale of the company has been keeping up with the domestic market demand of 2.63 million s and so on. At present, the lint warehouse of the enterprise has existed for about two and a half months, which is basically the same as that of the same period last year, with an average monthly yarn output of 400 tons. Affected by the global epidemic situation and Sino US trade war, cotton yarn sales were hindered, and the inventory of finished products increased. Up to now, the company has expanded the sales market from Guangdong to Zhejiang to reduce the current pressure on cotton yarn inventory.

    According to a textile enterprise in Xiantao, Hubei Province, the current cotton yarn market is cold, affected by the early epidemic situation, enterprises are more difficult to operate, in order to reduce expenses, some enterprises have entered the semi holiday state. The person in charge of the enterprise said that since the resumption of production, the enterprise is in the process of product transformation, from the original production of yarn to the manufacture of masks.

    According to the interviewed enterprises, the proportion of China's textile and garment overseas trade accounts for about 50% of the total, which means that textile enterprises can't digest such huge production capacity only relying on the domestic market. Most textile enterprises will export to domestic sales, increasing the competitive pressure of domestic cotton textile market. As the international situation is in a more severe stage and there are still uncertain factors in the future development of the global epidemic situation, domestic textile enterprises are still facing greater business pressure.

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