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    Shaanxi Textile Industry: Seeking Breakthrough In Structural Adjustment

    2008/8/27 16:49:00 26

    Textile Industry Restructuring In Shaanxi

    In mid July, the largest bankruptcy case in Shaanxi, the central enterprises under the central government, announced a policy bankruptcy.

    The news came out as "explosive" news, and the whole textile industry had a "crazy wind". The reasons for the bankruptcy of Tang Hua group are different.

    The Tang Hua group is known as the Shaanxi Textile Group Printing and dyeing Refco Group Ltd of Tang Hua group. It is made up of 5 subsidiaries of the northwest North Cotton Company, the Northwest National Cotton Plant four, the Northwest National Cotton six plant, the Shaanxi cotton eleven plant and the West North first printing and dyeing company by the Huacheng Cci Capital Ltd, a Beijing based central enterprise, Huacheng Cci Capital Ltd.

    The predecessors of the 5 enterprises were large state-owned textile enterprises established in the 50s of last century. They had a glorious history and made outstanding contributions to the economic development of Shaanxi and even the whole country.

    According to reports, before the bankruptcy, 5 enterprises, Tanghua one printing has been completely shut down for 10 years, Tang Hua six cotton partial stop production, Dahua Company, Tanghua Sanmian serious losses for many years, at any time faced with a total shutdown, Tang Hua four cotton survival difficulties.

    I have repeatedly interviewed the Tang Hua group, and the relevant personages of the company said, "we are in the process of rectification and bankruptcy. We will not accept interviews."

    In this regard, Li Zhaoli, Secretary General of Shaanxi Textile Association, said: "bankruptcy of Tang Hua group is a good thing. It can be carried out through the pformation of mechanism, debt decomposition, reorganization and new appearance."

    The bankruptcy of Tang Hua Group has sounded the alarm for the current Shaanxi textile industry, which is losing money.

      向下“運動”

    According to Li Zhaoli, Shaanxi textile industry with a series of development conditions such as "good resources, good foundation of textile industry, well-equipped facilities" and its total output value accounted for 14.5% of the total industrial output value of the whole province in 1988.

    "Entering the mid 90s of last century, Shaanxi's textile industry began to suffer losses for many years."

    Li Zhaoli said that although Shaanxi's textile industry has been developing fastest and has the best economic efficiency in recent years, it is still in a state of deficit in 2006.

    According to statistics, the main business income of textile industry in Shaanxi province was 7 billion 994 million yuan in 2006, accounting for only 0.33% of the total share of the country, ranking twentieth. The loss of the textile enterprises above Designated Size reached 47.50%, higher than the average level of 15.20% of the whole country, and the textile industry completed eighteenth of the total value of export delivery in the whole country.

    In the 1-5 month of this year, the textile industry above designated size enterprises completed the total industrial output value of 3 billion 447 million yuan, an increase of 9.73% over the same period last year, and a loss of 108 million yuan, an increase of 77 million 840 thousand yuan over the same period last year.

      三大因素制約發(fā)展

    Shaanxi is a "textile province". This labor-intensive industry has made outstanding contributions to the state's employment, foreign exchange earnings and people's livelihood. Why has the development in recent years stagnated or even retrogressed?

    Li Zhaoli believes that the textile industry in Shaanxi is actually developing, but the speed and benefits are not very obvious. Among them, the main reasons are as follows:

    First, Shaanxi textile industry is mainly state-owned holding, although the vast majority of enterprises have been reformed, but the pace of restructuring is slow and the enterprise managers still have no fundamental change in the concept and mode, or to apply the past model.

    Two, the industrial structure is irrational.

    From the industry point of view, the added value of products is not high, and industrial capability is not matched, which weakens the competitiveness of some advantageous industries.

    In addition, the price of raw materials such as cotton continues to rise, and the price of products can not go up. The profit margins of enterprises are getting smaller and smaller.

    The three is the serious shortage of investment, which is also the most important reason restricting the development of the textile industry.

    From 1990 to now, the average annual growth rate of fixed assets in Shaanxi's textile industry has been lower than the national average.

    The serious shortage of funds has restricted the technological pformation, scale expansion and upgrading of products, and the total amount of spindles in the province is only 1/3 of that of a private enterprise in Shandong.

      尋求突破

    "When state-owned enterprises continue to decline, private enterprises have become the new strength of Shaanxi's textile industry."

    Li Zhaoli said.

    At present, the private cotton textile industry has gathered and developed in counties, towns and towns in Xi'an, Baoji, Xianyang and Weinan. The total industrial output value is about 1 billion 300 million yuan, and the regional textile and garment industry cluster has taken shape.

      

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