Revival Of Jiangsu'S Shengze Textile Industry

There is a significant difference between the current macro policies and the coping strategies of "quick action and heavy punching" in 2008. More emphasis is placed on the combination of "steady growth" and "structural adjustment". The key lies in how to stimulate the vitality of various market players and how to enhance the stamina of China's long-term economic development.

Along this line of thought, the reporter selected the textile industry of Shengze town in Wujiang city of Jiangsu Province, the copper tube, children's clothing industry in Shangyu town of Zhejiang Province, and the pharmaceutical industry in Taizhou area, and tried to show the changes in China's economy through these representative micro regions and specific industries.

Shengze Town, Wujiang City, Jiangsu Province, is known as "Silk City" since ancient times. It is a famous textile town in China. There are more than 2300 kinds of textile enterprises in the town. There are more than more than 100 thousand shuttleless looms in the whole town. It has formed an annual scale of 8 billion 500 million meters of textile products, 2 million tons of spinning capacity, and 3 billion meters of printing and dyeing capacity.

The textile economy accounts for more than 80% of the local GDP.

In 2009, the reporter went to Shengze to investigate, and saw the blind expansion of capacity, inventory collapse and the depression after the debt crisis. In that year, Shengze's GDP growth rate dropped to 10.92%.

However, after 4 years, the reporter visited Shengze again but felt a different smell. The local textile industry, which has undergone continuous pformation and upgrading, is showing a strong vitality again.

In the first half of this year, Shengze completed GDP158.2 billion yuan, an increase of 16.07% over the previous year, with a general budget revenue of 1 billion 138 million yuan, an increase of 25.33% over the previous year, all significantly higher than the average level in the whole country and surrounding areas.

Shengze textile in the economic cold winter, first adjustment, first recovery, can be called a successful example of traditional regional economic development.

Differentiated competition under product innovation

Since the second half of last year, the chemical fiber industry has been greatly affected by the dual impact of slowing demand for terminal demand and rapid expansion of industry capacity.

Nevertheless, some leading enterprises in the industry take advantage of product innovation to take up the upgrading path of differential competition and maximize the market risk.

Sheng Hong group is a typical example. As a large enterprise group with an annual revenue of more than 20 billion yuan, Sheng Hong Group has formed a group enterprise with chemical fiber and printing and dyeing as the core industry, thermoelectricity, real estate, hotels and trade as the main business.

The group's main differential fiber has a relatively high gross profit rate. The microfiber and memory fiber developed by the group have been widely recognized in the market.

"Because of the downturn in downstream demand, the price of chemical fiber products has fallen rapidly this year, and the profit margin of the industry has declined significantly.

Sheng Hong, based on differential fiber, is still able to maintain a gross margin of around 10%, and the company starts at full load, and its inventory is normal, which is better than most of the same industry enterprises.

Qian Min, Secretary of Sheng Hong Polytron Technologies Inc group, said that the company's chemical fiber production capacity this year is expected to reach 1 million 400 thousand tons, mainly sold to downstream industries such as clothing, home textiles, automobiles, 90% for domestic sales, and 60% to 70% of products differentiated rate is significantly higher than 20% of the industry.

According to introduction, ultrafine

Sheng Hong group is the main chemical fiber product, occupying 60% to 70% share of the domestic market, and has certain pricing power.

On the basis of continuous innovation, its technology is at the leading level in China, and the finest monofilament has reached 0.15dpf.

The memory fiber developed by the group is still forty thousand or fifty thousand yuan per ton, still in short supply, with a considerable profit margin.

Innovation results from the daily attention of the enterprise, and behind it is a strong R & D team.

At present, Sheng Hong Group has set up a Provincial Textile New Material Research Institute, with two academicians, dozens of doctors and masters.

The whole industry chain builds terminal brand.

Shengze is known as the "silk capital" because of the silk industry, but the silk market gradually shrank after 80s.

However, the decline of processing profit has forced the relevant enterprises to take the lead in pformation and upgrading. From the simple export fabric to the whole industry chain and the production of terminal products, a number of well-known real silk brands have sprung up in the locals.

It is understood that the traditional silk industry in Shengze used to be exported only to the weaving stage, and the processing profit rate dropped to less than 5% in recent years.

By extending the industrial chain to create terminal brands, many silk enterprises have realized the benefits of pformation and upgrading.

Wu Jianhua, general manager of Wujiang Silk Association and vice president of Dingsheng silk Co., said that the export situation of this industry is grim, with a drop of more than 30% this year, but domestic sales are slightly better than last year, and overall sales are normal.

"Transformation and upgrading of enterprises will have certain advantages, our enterprises two years ago to gradually pform, including the pformation of equipment technology and build its own brand, the production of clothing and other end products.

At present, enterprises have made good response to the batch production of "Song Jin" fabric for luggage and bags, and the new silk fabric has good prospects. The gross profit margin of the enterprise can reach more than 20%.

Hua Jia group is a large silk enterprise in Shengze. The group has two famous silk products trademarks, "Sang Luo" and "Jasmine Flower".

This year's total sales increased by 25%. Wang Yonggen, deputy general manager of the group, introduced Hua Jia's experience in pformation and upgrading.

"On the one hand, we should create a competitive advantage in the whole industry chain; on the one hand, we should intensify product development and adjust the structure of internal and external sales."

Wang Yonggen said that before the pformation of enterprises, the operation was very simple, and now formed a complete industrial chain from breeding, mulberry cultivation, silkworm weaving, silk weaving, printing and dyeing to clothing.

In 2002 and 2006, two sericulture bases were set up in Northern Jiangsu and Guangxi. After the completion of the industrial chain, the market competition advantage and market share increased.

In terms of technological innovation, Hua Jia group and tertiary institutions cooperate to improve the fineness of real silk, develop new fabric products such as wrinkle resistant silk fabrics, and enhance the brand effect of enterprises.

In terms of sales, after the financial crisis, enterprises took the initiative to adjust the proportion of internal and external sales, and the proportion of domestic sales rose from less than 10% to 30%. Structural adjustment reduced financial costs and increased profit levels, and gross margin rose to 15%-20%.

Effective guidance of local governments

In recent years, Shengze town has implemented a series of incentive subsidy measures to encourage local enterprises to increase investment and increase investment in technological pformation, and guide enterprises to accelerate pformation and upgrading, and play a positive role in the overall upgrading of the local textile industry.

It is understood that in the first half of this year, Shengze town looks for bright enterprises from different aspects such as "superior and strong", "scientific and technological innovation", "industrial upgrading", "energy saving and emission reduction". All kinds of financial support and rewards for high-tech enterprises in the area are allocated to 342 million yuan, an increase of 192.83% over the same period last year.

The leaders of the Shengze town government said that after the 2008 crisis, the awareness of independent innovation of local textile enterprises was significantly improved. Many enterprises took the initiative to take the road of pformation and upgrading, coupled with the effective guidance of the government, and formed a benign interaction between government and enterprises to promote the overall upgrading of the industry.

"In recent years, the leading enterprises in the textile industry have undergone rapid pformation and upgrading, and the product structure, technical content and added value have been improved, and the relative risk resistance ability is stronger. The textile enterprises are getting longer and longer in their own industrial chains. Some enterprises have begun to invest moderately in cross industry. This year, when the overall situation of the domestic textile industry is not good enough, this part of the enterprises with earlier pformation and upgrading have tasted the sweetness."