Hunan Textile Industry Breakthrough After Encountering Difficulties

The survival and development of enterprises are restricted

According to statistics, from January to June this year, Hunan spin 439 enterprises above designated size achieved an industrial output value of 34.621 billion yuan, up 7.3% year on year, sales revenue of 336.03%, up 6.5% year on year, and industrial added value increased 14.2% year on year, down 27.7 percentage points.

In the first half of the year, textile exports were blocked and domestic demand was depressed, especially in Europe, where orders were significantly reduced. It was difficult for textile enterprises to receive large orders. Many foreign trade enterprises have small orders, short delivery time, and some foreign businessmen ask for discounts, resulting in very low profits or even upside down. For example, in the first half of the year, the orders of Dongxin Group, the largest leading cotton textile enterprise in Hunan, fell by about 30%. At present, the international and domestic economic environment is more complex, and the impact will continue.

The cost of raw materials in the cotton textile industry accounts for 70% of the total cost, especially the domestic cotton price is higher than the international cotton price, and the domestic and foreign cotton prices are seriously inverted, which has become a major problem faced by the textile industry, seriously affecting the stable operation of the cotton textile industry chain and the international competitiveness of cotton textiles. Due to the widening price difference between domestic and foreign cotton, some foreign orders flow to countries with cost advantages such as Southeast Asia.

At present, the difference between domestic and foreign cotton prices per ton has exceeded 5000 yuan, a record high. The cotton yarn imported from Southeast Asia is even cheaper than the domestic cotton, and China's textiles have almost lost competitiveness in the international market. On the other hand, the low price of international cotton prices will also cause the decline of domestic cotton prices. Enterprises will lose when they buy, making cotton textile enterprises dare not place orders. The more they buy, the more they lose.

Due to the serious backlog of products, the enterprise has insufficient working capital. For example, Hunan Jiexin Textile Printing and Dyeing Co., Ltd. has had a normal production capacity of 3 months, with a deposit of more than 100 million yuan, endangering the normal production and operation of the enterprise. In this case, the company had to take measures to limit production, reducing the production time by 2 days per week, shutting down 20% of the machines, and reducing the production by 30% per month. If this situation does not change as soon as possible, it will cause huge losses to the enterprise, and some employees will face unemployment again.

At present, the employment orientation of the new generation of migrant workers has had a tremendous impact on labor-intensive manufacturing industry, of which the textile industry is a typical one. The survey shows that the average wage increase in the textile industry last year was more than 15%, but more than 80% of enterprises still have labor shortages. According to Eastcom Group, the cost of human resources, energy, transportation and finance of the enterprise has increased by 10% over the past.

Difficult financing, expensive financing and heavy taxes have seriously restricted the survival and development of enterprises, especially SMEs. It is reported that nearly 40% of the enterprise financing interest rate is nearly 10 percentage points higher than the bank's benchmark interest rate. The high loan interest rate and the disguised charges of some banks have led to the increasing financing costs of SMEs.

Struggle through difficulties

How to solve the problem of survival and development of textile enterprises? Liu Hui, Director of Hunan Textile Industry Office, pointed out that in a sense, crisis and difficulties are also "opportunities", which can force enterprises to speed up the pace of structural adjustment, transformation and upgrading, practice hard in crisis, open up markets in adversity, and find enterprise The way out for survival and development is to strive to "break through" in difficulties.

First, strengthen muscles and bones, and practice internal skills hard. A company in Hunan pays close attention to management innovation centering on increasing income and reducing expenditure and improving efficiency. Since this year, the company has carried out comprehensive budget management, making enterprise management more optimized and standardized; Establish and improve the performance management system to improve individual and team performance; Implement benchmarking management, surpass benchmarking, and narrow the gap with benchmarking enterprises in organizational processes, production management, product quality, brand building, rapid response and other professional levels. In the first half of this year, Yunjin Company achieved a basic balance between production and sales in spite of many difficulties. Its sales revenue was the same as last year, and its inventory was low.

The second is to change the mode and adjust the structure. The financial crisis has refined enterprises, promoted enterprises to change their growth mode, focused on structural adjustment, transformation and upgrading, and improved the grade and added value of products. Jiexin Company gritted its teeth in the predicament, eliminated 50 million meters of backward production capacity, introduced a large number of advanced equipment and technology at home and abroad, developed and produced a series of products such as pure cotton single card twill cloth, high-density poplin, coarse and fine canvas, elastic cloth, etc. The printing and dyeing factory adopts domestic advanced finishing processes such as softness, wrinkle resistance, shrinkproof, waterproof, anti-static, flame retardant, etc., which greatly improves the quality and grade of printing and dyeing fabrics. At present, Jiexin's dyed fabrics and decorative printed fabrics have formed a unique style and become the supplier of Wal Mart, Fortune and other large enterprises at home and abroad.

Focusing on optimizing the product structure, aiming at international cutting-edge technology, the Group focuses on developing and producing new blended products such as various new fibers. At present, all kinds of new fibers and other new blended products have increased to more than 70%, but cotton consumption has decreased by 50%, forming a new fiber feature. This series of products show obvious competitiveness in the market. It has become a new economic growth point and an important support for stable growth of enterprises.

Third, we will strengthen scientific and technological innovation. In order to meet the high-end market positioning of developed countries in Europe and the United States, a textile company in Hunan has built a new sewage treatment system, a 2400 ton/day reclaimed water recycling treatment facility, a new waste heat recovery system and a condensate recovery system, built a green environmental protection factory, and achieved a real sense of clean production. At the same time, the company also established an industry university research cooperation with a college in Hunan to carry out "ecological" dyeing and finishing 13 scientific research projects, such as "photo printing technology", "biological enzyme short process dyeing and finishing and cleaner production", have achieved many results and 44 patents. Since this year, this towel enterprise with only more than 200 employees has been developing against the trend in the crisis. The output value and sales revenue of the company increased by 47.6% and 41.2% year on year, and the profits, taxes and foreign exchange earnings increased by 40.8% and 83.3% year on year respectively.

Fourth, strengthen the construction of independent brands. A sock industry is a private enterprise restructured from a state-owned sock factory. In recent years, it has focused on doing a good job of "bamboo article" and calling for a green brand. The enterprise has developed rapidly, leaping from a small local sock factory to the first brand and leading enterprise in the sock industry in Hunan Province. Recently, the trademark was recognized as a famous trademark in Hunan Province, and the product was recognized as a famous brand in Hunan Province. The sock industry infuses the brand with the cultural connotation of green, environmental protection, health, comfort and fashion, and strives for innovation and change persistently. With dynamic and romantic design, the sock industry explores the beauty and taste of the world's top sock industry, which leads the new fashion culture of the sock industry.

From January to June this year, Hunan textile enterprises completed 4.392 billion yuan of investment in technological transformation projects, a year-on-year increase of 54.6%, 236 construction projects, a year-on-year increase of 36.4%, 150 new projects, a year-on-year increase of 36.4%, and 41 completed projects, a year-on-year increase of 95.2%. The third phase project of 320 air jet looms in a high-tech industrial park in Hunan Province for the production of high-grade extra wide width home textile fabrics has completed an investment of 80 million yuan. 72 extra wide width air jet looms have been installed and the production capacity has been formed. The production project of 160000 spindles of high-grade new fiber blended yarn and polyester cotton combed blended yarn implemented in an industrial park in Hengyang is progressing smoothly, and the first phase of the project is about to be put into production. The construction project of a 20000 square meter modern logistics center is also about to start.

At the same time, under the guidance of the strategy of "deep integration of industrialization and industrialization" proposed by the Hunan Provincial Party Committee and the Hunan Provincial Government, a number of advantageous enterprises have become demonstration enterprises of integration of industrialization and industrialization. First taste of informatization. Many enterprises feel deeply from practice that the deep integration of industrialization and industrialization will promote China's textile industry to have higher technological content, better economic benefits, lower resource consumption, less environmental pollution, and give full play to the advantages of human resources.