The Epidemic Situation Intensifies, And The Polarization Of Henan Textile Enterprises Needs To Be Solved!

Recently, all localities have successively announced the overall development and operation of the textile industry since the first half of the year. The epidemic situation has generally affected the development of the industry in varying degrees. As a major province of textile industry, how has Henan Province performed since this year? A few days ago Yuan Jianlong, executive chairman of Henan Textile Industry Association In the interview, the characteristics of the textile industry operation in Henan Province in the first seven months of this year were summarized as follows: The overall growth rate was stable, but the performance of domestic demand was stable. The fluctuation of raw material market slowed down, the investment continued to shrink, and the operation quality and efficiency improved steadily.

Overall, growth and efficiency slowed down

Statistics show that from January to July this year, Henan Textile Enterprises above Designated Size produced 1543900 tons of yarn, 726 million meters of cloth and 364000 tons of chemical fiber, respectively, down 6.19%, 4.85% and 19% year-on-year; the main business income reached 172.9 billion yuan and the profit was 7.93 billion yuan, down 15% and 20.3% respectively; the export of textiles and clothing was 1.11 billion US dollars, with a year-on-year growth of 9.5%. The increase of export of epidemic prevention materials has promoted the growth of textile export.

At the beginning of the year, enterprises were affected by the epidemic Yuan Jianlong said that in addition to the explosive growth of market demand of epidemic prevention materials manufacturers, other related industries' market feedback is pessimistic, enterprises stop production and limit production, increase inventory significantly, increase accounts receivable and increase risks. After March, the production of raw materials and basic products began to recover, but local logistics was not smooth. In the second quarter, with the support of the national macro-control and the policy of promoting production and ensuring people's livelihood, industrial production gradually improved. Since June, the overall situation has gradually returned to normal.

In the cotton textile industry, At present, most enterprises in Henan cotton textile industry are in normal production. At present, the utilization rate of production capacity is more than 70%, and the average yarn count of enterprise yarn production is more than 40. Fabrics are produced according to sales, and differentiated products are the mainstream. In the chemical fiber industry, It is difficult to expand the viscose and spandex fiber market; the polyester market is stable and tends to decline, viscose staple fiber fluctuates slightly, the price and sales volume are relatively stable, and the enterprise profit has decreased. Since the beginning of this year, the international crude oil market has fluctuated violently, and the prices of downstream raw materials have also been greatly reduced, which has forced the production of enterprises. The outbreak of the epidemic has led to a large increase in nonwovens equipment orders in the textile machinery manufacturing industry. Cotton spinning enterprises have a strong desire for transformation and upgrading, and the demand for cotton textile equipment is increasing.

On the whole, the shock of the epidemic intensified the polarization of enterprises. Wugang Yinlong, Xuchang Yufeng, pingmian group, Jiaozuo Haihua, Luoyang Baima, Weishi textile and other enterprises produce according to the order and normally take turns. Nanyang, Kaifeng, Xinxiang and other key enterprises are operating normally. Chemical fiber enterprises have pressure. Textile special equipment manufacturing epidemic prevention materials related equipment orders have a blowout growth, other types of machinery and equipment market demand has shrunk seriously. Some small and medium-sized enterprises have encountered unprecedented difficulties in reducing production and stopping production.

Three problems to be solved

According to the analysis of senior personnel in the industry, the problems faced by Henan textile industry are mainly reflected in the following aspects:

First, the price of raw materials fluctuates, and enterprises lack orders. Since this year, affected by the epidemic situation and the uncertainty of Sino US trade friction, textile export pressure has increased and uncertainty has increased, and domestic consumption has exceeded demand. Enterprise inventory increases sharply, cotton market downward pressure is obvious. Pure cotton yarn market continues to be weak, rayon yarn prices are still falling. Domestic small and medium-sized cotton mills, weaving factories, clothing factories are facing more and more serious production reduction and production stoppage. The main problem at the moment is the lack of orders, not prices. Cotton yarn futures have gradually become an important tool for cotton mills to sell and avoid risks.

Second, the pressure on production and operation costs has increased, turning to overseas investment growth. At present, the speed of yarn import is slowing down, but there is a trend of large import. Compared with domestic cotton, India and Pakistan have a strong price advantage and strong international market competitiveness. At the same time, the domestic cost of water and electricity, labor costs, raw materials costs are gradually rising, which is an important problem facing the textile industry. This is also an important reason for the decline of textile enterprises' investment enthusiasm at home and the increase of overseas investment.

Third, financing costs remain high and industry profits are diluted. Or because of the huge pressure on the loan repayment cycle of the financial institutions. The high financing cost has eroded the profits of the industry, which is not conducive to the expansion of reproduction and stable operation of the industry.

Active action to release industrial vitality

Yuan Jianlong said that although the epidemic is still spreading around the world, which has a huge impact on the world economy and China's economy, as well as the development of the textile industry, and enterprises are facing unprecedented difficulties, but China's epidemic prevention and control and economic recovery are at the forefront of the world, and economic development continues to improve. The state and Henan Province have also issued a series of policies and measures to protect and support enterprises. Under this situation, Henan Textile entrepreneurs with a strong sense of responsibility, not afraid of difficulties, take the strength of the whole industry to break through, and strive to break through the waves.

In the next step, Henan Textile Industry Association will play a leading role and do a good job in various services.

First, through various forms, go deep into the grass-roots units to actively and timely understand the difficulties and demands of raw materials, funds, employment and sales channels encountered by enterprises in the process of resuming work and production, Give full play to the role of a bridge between the industry and the government, provide good services, and actively help coordinate and solve difficulties.

The second is to strengthen the drive of advantageous enterprises and lead the industry to break through the waves. The number of advantageous enterprises only accounts for 1.29% of Henan's textile industry enterprises, and their profits have reached 14.5% of the total profits of textile industry enterprises in the whole province. We should give full play to the mainstay role of the dominant enterprises in the textile economy of the province, lead the employees of the enterprises to do everything possible to overcome various difficulties, and lead the textile industry of the province to break through the waves.

Third, project driven development and increased industrial vitality. In the first half of this year, Henan Caijin Textile Co., Ltd., located in Tanghe County, started construction of 100000 spindles, high-grade cotton and non-woven fabrics projects, as well as textile trading market projects with a total investment of 1.05 billion yuan. After the project is completed and put into operation, the annual output value can reach more than 500 million yuan. After the completion and operation of the textile trading market, the annual trading volume will reach 3 billion yuan and the annual tax revenue will be more than 30 million yuan. After the whole project is completed and put into operation, more than 3500 new jobs will be created. In late July, with a total investment of 4.6 billion yuan and an annual output of 200000 tons, the laisel project of Henan Hengtong started to lay the foundation in Taikang county. The project will be constructed in two phases. After the completion of the whole project, the annual main business income will be 5 billion yuan, the profit and tax will be 1.2 billion yuan, and 2000 people will be employed. In Xinxiang Economic Development Zone, the green printing and dyeing project with a total investment of nearly 3 billion yuan and covering an area of 1500 mu was jointly developed and constructed by Keqiao Economic Development Zone and Xinxiang economic and Technological Development Zone. The project has attracted the attention of more than 100 enterprises. A number of major projects, including Shaoxing Zhongcheng chemical fiber weaving project with an investment of 1.5 billion yuan and Xingli textile dyeing and finishing project with an investment of 800 million yuan, have been signed. Xinxiang Bailu Investment Group Co., Ltd. will also start construction in the near future. The construction of these projects will accumulate stamina and add vitality for the high-quality development of Henan textile industry during the 14th Five Year Plan period.

Fourth, we should make full use of the policies, fully grasp the development opportunities, improve our internal skills, refine our products and strengthen our enterprises.