Difficult to survive，textile mills “New Year” in advance
Author: Dec 14, 2011 11:29
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Once, the textile industry let many people rich overnight, which has created countless tens of millions or even billions of dollars worth of township business owners. Once, the textile prices double in just a few months, and the numbers of mills are jumped three times in short time. However, all good seems like a night-blooming cereus, gorgeous bloom and then wither quickly. Currently, the textile industry appears unprecedented low tide, even in some textile-dominated areas; nearly half of the textile factories face suspension or even closure. Although the distance from the Spring Festival is more than 40 days, while many textile mills have been put long annual leave in advance.
According to insiders, because the textile industry is ups and downs and the textile mills were near collapse. “After this crisis, there will have a great part person transfer the textile line to other lines.”
1. Workers put the annual leave in advance
December 10, the distance from the Spring Festival is more than 40 days, while parts of the textile mills put annual leave for workers in Changyi. The textile workers faced nearly two months of holidays, the heart is not happy, but worried. “The boss just said put the annual leave in advance, as for when start work after the festival, and it is temporarily no exact information yet.”
Changyi city is a textile-based county-level city, which the whole region have thousands of large and small textile mills and textile products throughout the country at the same time, while also exported to Europe and other developed countries. However, this is a city that based on the textile industry, which is suffering from an unprecedented blow. Large number of workers put annual leave in advance more than 40 days; while this year is simply this industry the epitome of a crisis.
“This year, the textile industry has been sluggish, if now the factory continues to start work and the plant loss more.” a mill owner of Yinma town Changyi Mr. Yang told reporters, “I have do more than ten years in the textile, and have never encountered such a situation.”
According to Mr. Yang introduced, Changyi with thousands of large and small mills and textile-related businesses, which have suffered different degrees. “Now it just some factory lose much and other plants afford to lose less.” And as for the entire textile industry is facing problems, but also from last year's "crazy cotton" speaking.
“Last year, the basic raw material of cotton textile industry drastically increases. In the craziest in October, it had appeared one day can be rose 1,000 Yuan of myth, while the corresponding prices of textile products also rise, and a day can rise one or two thousand Yuan.” Remembering to the rise of the crazy textile products last year, a textile mill owner Mr. Yu Changyi Yinma town told reporters, “In early 2010, the finished yarn (a piece of textile) price only 15,000 Yuan/ton, while come to October, the maximum rose to 35,000 Yuan/ton. At that time, many people can not sell out of the textile processing, which were afraid to sell today, tomorrow is selling price deficient.”
2. More than half textile mills have been suspended
Mr. Yu told reporters, although rising prices are only a few months time, and the crazy prices of textiles let some enterprises have tasted the sweetness, so some of the textile business leaders began to purchase a large number of new textile equipment, and increased production strength. However, some were not engaged in this industry also began to borrow money to buy the textile equipment to join the armies of the textile industry.
“Because the textile price rose sharply, now the number of textile mills increased about three times compared to the beginning of 2010. In some towns, there is almost universal textile boom.” Mr. Yu said.
However, the crazy price increases did not last long, on October 11th 2010 this day; suddenly there is a significant turning point. “I’ll remember this day for ever, October 10th 2010 this day; I sell out a part of the finished yarn as 35,000 Yuan/ton, and the next day, suddenly all the middlemen all don't.”
Since then, the textile price began to down all the way, although there was a short wave period, however, the overall downward trend has not changed. To December of this year, “the finished yarn prices fell by 13,000 Yuan a ton.”
Mr. Yu introduced that currently it has more than half of the mills which are in a shutdown state. “A lot of textile warehouses are piled up a large number of products, according to the market recession to see, many textile mills want to deal with the backlog of products, at least until after the Spring Festival, which is also now a lot of textile mills the reasons of putting annual leave in advance.”
3. The trapped three major reasons
So, why this year's textile industry will be a crisis? What made decades old enterprise faces collapse? The reporters get some reasons from more than ten textile business owners.
The first reason is currently exports volume of textile has shrunk dramatically. Reporters learned from the interviews that China's textile lower price and good quality by some countries in Europe and America's favorite. However, since the European debt crisis, China's textile exports to Europe by frustration. “The foreign order of Qingdao Textile estimate cut by 40%. In addition, Pakistan, Bangladesh, Turkey and other countries are far lower in cost advantage to compete with Chinese textiles, some of these countries offer lower than 10% of China, while our net price is less than 10%, and we have to give up such orders.” A foreign manager Mr. Liu who works at a leading trade company told reporters, “the mainly export-oriented textile processing companies are now hard to survive, a large number of foreign trade was supposed to export of textiles to sales in domestic market, increasing the pressure of domestic textile market.
The second reason is that the number of textile enterprises appears super-saturation. In less than two years, the number of textile enterprises was tripled in Changyi. The textile company owner Mr. Yu told reporters, “Because last year the temptation of textile crazy prices, many people have engaged in the textile, which also resulted in the textile enterprises have been saturated situation.”
The third reason is that labor costs rise caused the collapse of the enterprise. “The beginning of last year, the works’ wages is 1,400 Yuan/month, while this year rose to 2,600 Yuan a month at most, and the works’ wages increased more than half.” The textile company boss Mr. Yu said, “Now the construction, processing, catering and other industries of workers' wages are rising, if the works’ wages are not rising in the textile industry, then it is faced with the embarrassment of no one is available. "
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Editor: sunny From: 168Tex.com
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