The "Cold Resistance" Of Ma Kou In Hanchuan, A Textile Town

"Affected by the debt crisis in Europe and the United States, the international market has shrunk and orders have fallen sharply. This year, sewing thread yarn exports accounted for only 30% of sales, while foreign orders reached 70% last year." Recently, Liu Zhikun, chairman of Hanchuan Textile Association and chairman of Hubei new antenna cable technology Co., Ltd., told reporters that Hanchuan is currently the largest sewing thread yarn production base in the world. Most of the sewing thread produced here is exported annually, and the domestic market only accounts for a small proportion.

"Under the dual pressure of debt and credit tightening in Europe and the United States, what kind of runs do Hanchuan's Ma Kou textile industry suffer from upstream and downstream? How do these small and micro enterprises with low technology content" spend the winter "? Recently, our reporter went deep into Hanchuan's Ma kou to visit the" cold resistance "action of these small and micro textile enterprises in the winter of cotton spinning and weaving industry.

Judging from the current situation, 90% of textile enterprises are in a state of loss, and only less than 10% of them can make a profit or run a profit. From 7 to September, the average net profit of every ten thousand spindles was 200 thousand yuan per month. At the same time, sales difficulties, prices fell, the inventory of products per 10000 yuan of 80 tons.

The voice of an old textile worker:

A holiday is a big worry.

Xiang Jinrong, 46, is an old textile company. He became a textile worker when he was 18 years old, and he had been in the industry for nearly 30 years.

"I'm not afraid of hard work and I'm worried about nothing." Xiang Jinrong said that one of her friends worked in another textile mill in the town. During the "eleven" period this year, their factory had put in seven days' leave. "When I saw her staying at home, I was also in a panic, for fear that my factory would follow a holiday."

Xiang Jinrong's father-in-law was paralyzed at home, and the child was still reading. The expenses of a family of four depended on the monthly salary of her husband and her husband. She had to pay more than 7000 yuan of pension insurance every year, and the husband and wife paid barely enough daily expenses. At present, workers like them are pieceworkers. They have wages and bonuses for work. They can only take a small amount of welfare at home, and their income is greatly reduced.

"I belong to laid-off and re employed. I worked in a state-owned textile factory in Ma Kou. I went to the factory 3 years ago. Xiang Jinrong said, there is a saying that "men do not enter the steel mill, and women do not enter the cotton mill". The textile workshop is noisy and dusty, and there are three shifts. But like her age, women workers are old and small, and one person is "half the sky".

"These years, I seldom heard of a holiday in the factory, but recently there are sisters who work in other factories in turn to rest at home in the near future." Huang Lihua, who works at a textile factory in Ma Kou, told reporters that she had been in textile mill for more than 6 years, and she seldom heard "holiday". Everyone was in three shifts, but she had something to do with colleagues. Things in the factory are always done, and every day is a rush hour. It is impossible for a factory worker to have a holiday together.

"A skilled worker can get 2500 to 3000 yuan per month, which is fairly good at the pay level, and has the final say in our family expenses." Huang Lihua pointed to two women workers around to tell reporters that in recent years, some factory holidays really made them "panic" in these homes, for fear that they would be "free" and had nothing to do. {page_break}

Butterfly Effect of holiday in textile mills

"I can't run at all, but I've seen a lot worse since the second half of this year. Xiao Chen, who runs the business in the town of Ma Kou, laments the impact of the textile industry's plight on other local businesses.

"In the past" eleven "long vacation here is small Hankou, the street shopping workers crowded the streets, this year many factories are off, and the young people who come here to work here have gone home. Liu boss, who is a snack business in town, said that before the recruitment ads were flying everywhere, factories were waiting for people to do things. "Labor shortage" was the norm. Since June this year, workers in some factories have been away for a few days, and recruitment information is much less than before.

It is understood that Ma Kou textile enterprises mainly produce sewing thread yarn, which is dyed and made into garments by downstream enterprises, which is the upper reaches of the textile industry. At present, there are 216 textile and related enterprises in Ma Kou Town, with a total scale of 1 million 300 thousand spindles, 8 of assets over 50 million yuan, 63 of which are over 10 million yuan, and 150 thousand tons of polyester yarn per year, accounting for 1/4 of the total production of pure polyester yarn.

"The rapid expansion of Ma Kou textile and garment industry in recent years has led to the development of related industries, enhanced the vitality of regional economy, and also accelerated the rapid development of local economy." Xiong Hongxiang, deputy director of Hanchuan economic and commercial bureau, and Secretary General of Hanchuan Textile Association, told reporters that at the mouth of the textile industry, the textile industry has become the leading part of the whole town economy. 80% of the total industrial output value of the town is provided by the textile industry, 80% of the industrial and commercial revenue comes from the textile industry, and the 80% of the third industry income is derived from the textile industry, and the textile industry is facing difficulties, and the local economy will definitely be affected.

"Affected by the debt crisis in Europe and the United States, the appreciation of the renminbi and the competitive factors of India, Vietnam, Laos and other countries, the international market has severely shrunk, and orders have fallen sharply. Export sales have dropped by 70% in the second half of this year compared with the same period last year, and the business situation is very grim." Speaking of the impact of the export downturn, Wu Guohua, the responsible person of Shengli Textile Technology Co., told reporters that during the international financial crisis in 2008, although the export was affected, the state expanded domestic demand, and the products produced were digested domestically and had limited impact on enterprises. Since the second half of this year, exports are declining, and enterprises are squeezing more and more products in warehouses. Some enterprises are even in a state of shutdown and semi shutdown.

"Domestic digestion is limited, and growth is also slow, so it is still time to alleviate the plight of most textile enterprises in Ma Kou." Liu Zhikun said.

Downstream garment industry downturn, Ma Kou textile enterprises are very hurt

"Every July is the peak season for downstream garment enterprises. This year, the clothing industry is generally depressed. The media reported that clothing enterprises overseas orders fell by nearly 50%." Wu Guohua said that in the first half of this year, some downstream manufacturers did the order they received last year. The impact of the reduction of overseas orders has not yet been highlighted. After July, the impact has gradually become apparent, and has been transmitted to such an upstream line enterprise.

"The domestic garment market is in a doldrums, and downstream production enterprises are mostly in a state of shutdown or semi shutdown. It will take some time to reverse the situation based on domestic demand." Liu Zhikun told reporters that influenced by factors such as price fluctuation of raw materials, appreciation of Renminbi and other factors, the downstream enterprises are hard to predict the future and dare not take long orders and large orders. This also causes a large backlog of products produced by upstream line enterprises.

"The downturn in the clothing market naturally affects the upstream dyeing and weaving industry." Jin Guoping, the responsible person of Hubei Jiuding dyeing and finishing company, told reporters that although the financial crisis happened in 2008, the RMB exchange rate and cotton price were relatively stable and the prices were controllable. Since June this year, labor costs have risen, cotton prices have fluctuated, and the appreciation of the renminbi has been appreciated. Textile enterprises can only take short lists and small bills, and production plans are also forced to readjust. {page_break}

"Upstream and downstream" costs high upstream

"Raw material prices rose month by month, wages and electricity prices climbed again, fees increased, and sales prices fell." Liu Zhikun used the number to describe the reality of the "double faced clamp" of the enterprises at present. In 2008, the processing cost of polyester yarn was 5500 yuan / ton, and now it reaches 7500 yuan / ton. Judging from the current situation, 90% of textile enterprises are in a state of loss, and only less than 10% of them can make a profit or run a profit. From 7 to September, the average net profit of every ten thousand spindles was 200 thousand yuan per month. At the same time, sales difficulties, prices fell, 80 yuan per 10000 yuan inventory backlog, 30% of enterprises are in semi shutdown state, individual enterprises have been closed, and there is no sign of improvement recently.

"In the first two years, the average monthly wage of workers is 2000 yuan, and now it rises to 2500 yuan / month, and now there is still labor shortage. Some workers can get more than 4000 yuan a month, and the increasing labor cost has also increased the burden on enterprises to resist the crisis." Wu Guohua said.

Liu Zhikun told reporters that the raw materials of spinning polyester staple fiber, more than 50% came from Sinopec subsidiary company, yarn products were basically sold to Jiangsu and Zhejiang provinces and Guangdong, some directly or indirectly exported abroad. Since 2008, the financing cost, human resources cost and raw material procurement cost of textile and garment enterprises in Hanchuan have been continuously raised. At present, the average wage of Hanchuan textile and garment workers is around 2500 yuan / month, and the wages of technical workers such as winding and spinning can reach 4000 yuan / month or even higher, coupled with the lack of supporting industries such as warehousing and logistics, thus increasing the difficulty of the operation of enterprises.

"Scattered capital raising households run the business back and forth."

"In July this year, we just interviewed a media, talked about the current difficulties encountered by enterprises, and find the topic of bank financing difficulties. I did not expect that some second days later, some fundraising people came to the factory to refund money." Liu Zhikun said that after 10 years of development, his company has a certain ability to resist risks. He has full confidence in the current difficulties and can run from time to time.

Liu Zhikun told reporters that enterprises in the development process to find some private fund-raising people financing, which is very common in the textile enterprises of Ma Kou. Because of its simple procedures, no need to mortgage and other advantages, it also played a positive role in the development of local SMEs. "Some fragmentary households' instability also has an impact on enterprises' resistance to difficulties, and will cause joint effects." Liu Zhikun said that on the day of the July run, he immediately informed the finance that he had returned some of the fund-raising funds and avoided adverse effects on the enterprises.

Xiong Hongxiang, deputy director of Hanchuan economic and commercial bureau, and Secretary General of Hanchuan Textile Association, told reporters that the development of Hanchuan's textile and garment industry is very similar to the business model of Wenzhou businessmen. Active private capital laid the foundation for the development of the local textile and garment industry. More than 90% of the textile and garment enterprises in Hanchuan have management figures. Moreover, each textile enterprise shares shares with each other, forming a pattern of "you have me and I have you". However, there are some "congenital deficiencies" in this development mode. Especially under the impact of the financial crisis, the structural contradictions and single financing channels of the industry are exposed.

"Most of the liquidity of Hanchuan textile enterprises is mainly private capital raising. Due to the overall decline in the overall business situation, some enterprises are running a run." Xiong Hongxiang said, according to rough statistics, the current run accounts for about 20% of the total capital. Because of the wide range of private fund-raising, the phenomenon of run will affect the normal production and operation of enterprises.

On the other hand, under the current credit crunch situation, the cash flow of enterprises is also tense. "Bank credit has tightened again and again, and most SMEs are experiencing cash flow tensions." Wu Guohua told reporters that under the influence of the state's macroeconomic regulation and control policies, on the one hand, banks increased their cash control over the enterprises, and the credit was very strict, and the interest rate was also increased by 50% compared with the previous years. The annual interest rate reached 10%. On the other hand, the cash receivable from the enterprises below 5 tons was cash, and 60% of the 5 tons were accepted bills of exchange, which caused the cash flow of enterprises to be tight.

"The payment for a business is the acceptance of a bill of exchange. If such a money order is to be paid to the bank, the textile enterprise will be a small profit traditional industry. On the other hand, enterprises must use cash for their monthly wages, utilities and so on, which also increases the risk of enterprises.

"The threshold for finding bank loans is also very high. Enterprises must have their own land and property as collateral, and the procedures are very complex, which also discourages many small businesses." Zhang Chunfang, the head of Hubei Yinfeng textile company, told reporters that it is difficult for some small and micro enterprises to find bank loans. {page_break}

enterprise

Increase productivity and reduce costs

"Workshop in the near future often meets, on the one hand, conveys to the workers the present situation of the textile industry, on the other hand, it is to enable everyone to increase production capacity, use this time to grasp the quality, the product quality goes up, the production efficiency is improved, and it is also sharing pressure for the factory......" Wu Jun, a production manager of Hubei new antenna cable technology Co., Ltd. told reporters that the workers are also very clear about the current situation. We consciously grasp the quality in the production process, strive to improve efficiency, and try to enhance the competitiveness of our products so as not to let ourselves "have a holiday".

Wu Jun said that at present, the production capacity of 100 tons per 10000 yuan is very high. If we reach 110 tons, it should be regarded as the top level. Facing the severe situation now, as a production department, we can only start with increasing production capacity, so as to enhance the competitiveness of our products in the market.

Liu Zhikun said that from the perspective of industrial development, we should first use the "advantage of late development" to introduce advanced technology and equipment, and promote industrial upgrading through scale. At the same time, we should guide competent enterprises to develop and produce differentiated, medium and high grade products, and improve the industrial chain under reasonable planning. The new projects must be energy saving and environmental protection. On this basis, we should gradually change the relatively closed development mode in the past and carry out more timely communication and exchanges with the outside world.

government

Pull banks and enterprises

130 million yuan loan has been made.

"At present, enterprises are actively striving for credit support from banks, such as equipment loans, credit loans, corporate joint guarantees and so on." Liu Zhikun briefed reporters that in order to help the textile enterprises and financial institutions with financial gaps to achieve effective exchanges and docking, in mid August, Hanchuan held the docking meeting of the textile industry, and nearly 50 textile enterprises and 8 financial institutions held talks, and signed a total loan agreement of 130 million yuan.

"After getting the support from banks, the first thing is to improve the equipment technology, and then expand the regulation quickly, enhance the scale and enhance the ability to resist risks." Liu Zhikun said that there are more than 20 textile projects under construction in Hanchuan, and the scale of the city's spindles is expected to exceed 3 million by the end of the year. After nearly ten years of rapid development, Hanchuan textile industry has accumulated some experience to resist risks. With the support of the government and efforts of all parties, as the president, the textile industry is confident enough that it will become better and better.

Xiong Hongxiang, deputy director of Hanchuan economic and commercial bureau and Secretary General of Hanchuan Textile Association, told reporters that the great impact of the financial crisis made Hanchuan textile and garment industry soberly aware of the gap. The Hanchuan municipal government has introduced a series of measures to help enterprises solve the problems of financing and loans, and ensure the safety of capital chain in crisis enterprises. Before the crisis, Hanchuan textile and garment industry invested nearly 1 billion yuan, only tens of millions of money obtained from banks, and the rest came from private capital. After the crisis, the bank injected capital from 3 to 400 million yuan, which effectively promoted the development of Hanchuan's textile and garment industry. "We believe that with the active efforts of all parties, the textile industry in Hanchuan will surely tide over the difficulties and continue to develop in the right direction." Xiong Hongxiang said.