Xiaoshan Enterprises Go Abroad To Set Up Textile Factories In The US

The province is located in Xiaoshan, Zhejiang province. cotton spinning Cole Cole group, a leading enterprise, and Zhejiang hang min Industrial Group Co., Ltd. set up an overseas factory in South Carolina, USA, with a total investment of US $218 million. Reporters learned from Cole group that the first phase of the project was broken down in February 11th and is expected to be put into operation in October this year.

Liu Aihua, Secretary General of Zhejiang cotton textile industry association, said that the Cole group is the first direct foreign investment cotton textile enterprise in Zhejiang Province, which is also the first manufacturing plant set up by Chinese textile enterprises in the US.

Huang Guogang, director of the office of the group, said that the total land area of the factory located in the United States will reach 820 mu, with a total construction area of 150 thousand square meters. Among them, the first phase of the construction area is 40 thousand square meters. The whole project will form 100 of the most advanced spinning machines in the world today, with an annual output of 150 thousand tons of yarn. The first stage is equipped with 52 sets of air spinning machines and 6 sets of production equipment such as Qing Lian Lian. After the commissioning, the annual production scale reaches 70 thousand tons of rotor spinning.

Huang Guogang said, external Investment Factories are mainly caused by environmental pressure and the price of raw materials. First, the domestic cotton price is significantly higher than the international cotton price, the difference is about 5000 yuan / ton, although the labor cost of the United States is much higher than that of the domestic market, but the cost of cotton can be significantly reduced; the two, the domestic labor cost of cotton yarn industry is increasing year by year; three, the domestic energy cost is large, the electricity cost is 0.7 yuan, the United States has only half of the domestic price; four is the cotton import quota, the cotton textile industry's tax policy and the demand for energy saving and consumption reduction in recent years, and so on, it also urges the enterprise to go out to develop.

Huang Guogang told reporters that since last year, the external environment has become more and more restrictive to enterprises, and the company has been looking for countermeasures. 2 years ago, the company was in Vietnam, India, Pakistan, the United States and other countries. Finally, after actual investigation and demonstration, it is concluded that the United States is the third largest cotton producing country in the world and the largest exporter of cotton in the world. South Carolina is a major textile enterprise. It has gathered the major textile enterprises in the United States and formed a relatively perfect industrial agglomeration.

　　 Cole group A dozen managers will be selected from the company's headquarters to serve as senior managers of American companies and vocational skills training for local workers. As for sales, Huang Guogang said, "part of the products are transported to the domestic market, and some of them are sold locally or in the surrounding area." Huang Guogang said frankly: "because of the huge investment, it is unlikely that profits will be made that year, but within 5 years, the investment in the US will get a good return."

Our region is an important production base of Zhejiang petrochemical and textile manufacturing industries. In recent years, leading enterprises in many industries in Xiaoshan have begun to invest abroad. Last year, Xiaoshan reported 17 overseas investment enterprises approved by the state and provincial business departments, with 4 capital increase. China's total foreign investment reached 2 billion 12 million US dollars, an increase of nearly 8 times over the previous year. The total amount of overseas investment approved by the new year ranked first among the counties (cities and districts) of the country. Investing abroad and running factories has become a major trend in China's manufacturing industry.

Zhang Handong, President of Zhejiang Business Research Institute, said in an interview that the way of Cole group's operation in the United States can bring some enlightenment to the development of manufacturing industry. The "going out" strategy of enterprises to run factories in developed areas can effectively promote industrial transformation and upgrading, and achieve growth and improvement in resources, technology, brand, market and competitiveness.