Xinjiang Textile And Garment Industry Development And Enterprise Status

Preface

The author has the honor to participate in May 28, 2019 -6 3, sponsored by the Zhengzhou commodity exchange and the China Cotton Storage Information Center Co., Ltd., "Xinjiang cotton planting area and growth survey in southern Xinjiang" in 2019, to understand the farmers' planting structure, production cost changes, new year's area, cotton seedling rising trend, lint sales situation, and local Xinjiang textile policy and enterprise management.

This report mainly focuses on the development status of Xinjiang textile industry, as well as the development of textile parks in Korla and Akesu, as well as the status quo of some textile enterprises.

Summary of research contents

1. Since 2014, the textile and garment industry has been developing rapidly in the autonomous region, and the textile and garment industry in Xinjiang has been growing steadily and rapidly.

Xinjiang cotton yarn production capacity increased to 20 million spindles, annual production of 1 million 800 thousand tons of yarn, annual consumption of cotton about 1 million 500 thousand tons, has basically achieved the 2023 spindles planning, follow-up subsidy policy will go to the textile and garment rear link development to improve the domestic spinning service industry chain.

2. Under the influence of trade relations, downstream export orders represented by Huafu and Ru Tai have different degrees of influence. The finished product inventory accumulates and the operating rate declines. The high end consumption with some high added value is limited by the effect of tariff increase, while the direct stop order of some enterprises involved in policy risk is not considered the price comparison after adding taxes.

Affected by this, textile orders and capacity have been accelerated to Southeast Asia, especially Vietnam.

3, within the territory of cotton yarn subsidies, a number of enterprises said that 14 years from the earliest 32 cotton yarn can be converted to 2000-3000 yuan / ton discount; at present only about 1000 of subsidies, competitiveness has been greatly reduced.

The introduction of Xinjiang's textile and garment industry and specific research contents are as follows:

1. The development of Xinjiang's textile and garment industry

1. the geographical advantages of Xinjiang's textile and garment industry: "one belt and one road" to the west, and eight countries, 29 open ports.

China is the world's largest producer, consumer and exporter of textiles and clothing, and exports of textiles and clothing account for more than 35% of the world's total.

The "one belt and one way" initiative has proposed that over the past 5 years, China's textile industry has invested more than 80% in foreign investment, and has exported more than 30% of its textiles and garments to the countries along the belt.

Xinjiang is the gateway to the northwest of China, bordering 8 countries, with 17 first-class ports and 12 two types of ports.

Xinjiang's textile and clothing products can be exported to Central Asia and European countries through external ports. With the implementation of the strategic concept of "Silk Road Economic Belt", Xinjiang can fully rely on the international railway intermodal passage, and export goods to the west, such as textiles and garments, so as to attract textile and garment export processing enterprises to invest and build factories in Xinjiang.

2. the development trend of Xinjiang textile industry in recent years: weaving and garment industry is growing steadily, and cotton spinning capacity is close to the planning target.

Since the implementation of the textile and garment industry planning in Xinjiang in 2014, the textile and garment industry in Xinjiang has completed about 170000000000 yuan in fixed assets investment in 2018, and cotton spinning capacity has increased from 7 million to nearly 20 million spindles. Yarn production has increased from 439 thousand and 900 tons to 1 million 853 thousand and 600 tons, accounting for 20.1% of the national cotton yarn output; the output of cloth has increased from 45 million meters to 287 million meters, accounting for 0.6% of the whole country.

Cotton yarn has gradually become an important business card of Xinjiang's industrial economy. Xinjiang has become one of the important cotton spinning and processing bases in China.

In 2018, the main business income of the region was more than 3 million yuan, and the textile enterprises completed the industrial added value of 11 billion 55 million yuan, an increase of 14.8% over the same period. Among them, the textile enterprises above Designated Size completed the industrial added value of 10 billion 814 million yuan, an increase of 14.5% over the same period last year, an increase of 267% over the 4 billion 139 million yuan in 14 years.

The total profit of textile industry increased from 540 million yuan in 2014 to more than 2 billion yuan, and more than 2200 new textile and garment enterprises were added, and the number of new employment was about 450 thousand.

According to the plan, by 2023, Xinjiang will be built as China's largest production base for high-quality cotton textile products, the largest textile export processing base in the western region and the West export distribution center.

According to the Xinjiang textile and garment industry development plan (2018~2023), by 2023, Xinjiang reached 20 million spindles of cotton spinning capacity, more than 50 thousand looms, 250 thousand tons of knitted fabrics, 800 million garments and garments, and 1 million workers in the whole industrial chain.

In the first quarter of 2019, Xinjiang achieved a total import and export value of 30 billion 990 million yuan RMB, an increase of 6.7% compared with the same period in 2018. The total value of exports was 23 billion 270 million yuan, the total value of imports was 7 billion 720 million yuan, and the total value of imports increased significantly, up 40.5% over the same period last year.

Electromechanical products, clothing and accessories, footwear and so on are still the main categories of Xinjiang's export commodities.

In the first quarter, Xinjiang exported garments and accessories 5 billion 259 million yuan, accounting for 22.6% of the total value of Xinjiang's exports in the same period, and 6 billion 90 million yuan of electromechanical products, accounting for 26.2%.

Border trade is still the main way of Xinjiang's foreign trade. In the first quarter, it achieved 18 billion 770 million yuan in imports and exports, an increase of 2.6% over the same period last year, accounting for more than 60% of the total import and export value in the same period.

General trade mode imports and exports 10 billion 750 million yuan, an increase of 12.6% over the same period, accounting for 34.7% of the total import and export value, the proportion increased 1.8 percentage points compared to the same period in 2018.

From the perspective of trade countries, Kazakhstan still ranks as Xinjiang's largest trading partner, followed by Kyrgyzstan and Russia.

Meanwhile, Xinjiang's growth in imports and exports to Australia, Argentina, Finland, Chile and other countries has been increasing rapidly.

3. inner textile industry development plan: "three cities and seven gardens one center"

Xinjiang textile in the "12th Five-Year" planning and development, the "three cities and seven parks one center": "three cities" that Akesu textile industrial city, Shihezi textile industrial city, Korla textile industrial city, "seven garden" namely Hami, Bachu, alar, Sha ya, Manasi, Kuitun, Huoerguosi textile Garden; "one center" is the Urumqi textile international trade center.

Efforts have been made to promote the construction and development of industrial agglomeration areas.

By the end of last year, there were 26 textile and garment development counties (cities and districts) in Xinjiang, and the output value of textile and garment industry in key parks of three cities and seven gardens reached 35 billion 280 million yuan, accounting for 80% of the total output value of textile and garment industry in Xinjiang.

In accordance with the plan, we should focus on strengthening the division of labor between the autonomous region, the corps and the Xinjiang provinces. Xinjiang strive to create a reasonable layout, clear division of labor, misplaced development, distinctive textile and garment industrial parks and industrial clusters, so as to avoid homogenization and low level competition.

The carpet industry in Xinjiang is mainly located in Shache, Bachu, Kuche, Jinghe and other places. The development of the products is centered on Hotan, and embroidery is arranged in Kuche, ATU Shi, AI Tao, Hami, Mu Lei, Aletai and other places, and embroidery industrial parks are established.

Two, research and record: Akesu textile industrial city and Korla textile industrial city

The survey visited the Korla economic development zone and the Akesu Textile Industrial Park. The following is the latest situation I learned about the two textile cities.

1. Korla Economic Development Zone

According to the relevant person in charge of the Korla Economic Development Zone, the scale of Korla's spinning is at the forefront of Xinjiang. The scale of the whole Xinjiang's 1800 spindles has been basically completed, and about 1 million 500 thousand tons of cotton are used in Xinjiang. Among them, Korla has a capacity of 10 million yuan.

At present, by the end of 19, the actual production capacity of Korla is expected to reach 5 million ingots, including 153 thousand air spinning, 10 thousand vortex spinning and 800 thousand ring spinning. After 19 years' completion of production in December, it will continue to enjoy the original subsidy policy, and the subsidy policy will not cover the deadline.

At present, the three large scale spinning enterprises in the economic development zone are Bazhou Jinfu special yarn industry Co., Ltd. (Zhongtai wholly-owned), Xinjiang Fuli Zhen Lun cotton spinning Co., Ltd. and Xinjiang Li Tai Silk Road Investment Co., Ltd.

Among them, Bazhou Jinfu special yarn industry has 1 million 500 thousand spindles and cotton yarn production capacity (basically air jet spinning), and the cotton yarn (including spinning and ring spinning and vortex spinning) of Xinjiang Fuli Zhen 1 million 200 thousand spindles is mainly made of medium and low yarn, and all the raw materials are purchased from Fulda Holdings Limited.

Xinjiang Li Tai Silk Road 1 million 300 thousand spindles all cotton yarn, has already put into operation nine factories; at present two installs four factories to install, by the end of the year will achieve 2 million 150 thousand spindles production capacity.

Xinjiang viscose staple fiber has an annual capacity of 820 thousand tons, with an annual output of 400 thousand tons, of which four hundred thousand tons of Xinjiang viscose viscose production capacity in Korla industrial area.

In order to develop the rear dyeing and finishing process of cheese, knitted fabric and towels, the Korla Kangping textile industry city introduced Shandong Kangping Kangping intelligent Dyeing Co., Ltd. and Korla Huitong printing and Dyeing Technology Co., Ltd. from Shanxi in 2018-19.

In addition to Shihezi Ruyi and Akesu Huafu brand direct printing and dyeing plant, Kangping NHT and hitai Tai provide printing and dyeing to downstream of Xinjiang.

Korla Economic Development Zone responsible person said that the first five years of the textile industry in Korla 2 billion of the support funds, the five years after the increase will not be reduced.

The development of the textile industry is still the key direction, focusing on solving the problem of employment. On the one hand, because of the small amount of labor employed by the mills, on the one hand, Xinjiang yarn 95% still needs to go out of Xinjiang, hoping to develop a complete set of textile and garment industries in the territory, and the policy support direction should be adjusted to support the existing cotton mills, and increase the introduction of downstream enterprises.

Especially in dyeing plant, we hope that the dyeing mill can connect the cotton mill, knitting and towel to improve the downstream pformation of yarn.

Then there are downstream towels, knitwear and garments. Korla now plans to develop the largest cotton socks factory in Xinjiang.

Referring to the recent trade frictions, the official said that the output value of Xinjiang's textile and garment industry in the first quarter of 2019 was 3 billion yuan, down 10% compared with the same period last year. Orders for cotton yarn and cotton yarn were declining, and downstream factories and printing and dyeing factories were also affected, mainly influenced by Sino US trade relations.

Li Tai Road, Xinjiang:

Xinjiang Li Tai silk road is currently producing 1 million 300 thousand spindles of cotton yarn in Korla, and the production capacity in Xinjiang will reach 3 million by the end of this year.

The yarn location of Xinjiang branch is relatively high, mainly based on production and sales, with 60 more brands and 100% Xinjiang cotton, corresponding to brand customers. At present, the company's cotton consumption is 200 thousand tons, reaching 30-35 tons by the end of this year.

50% of cotton will be bought from northern Xinjiang because of the shortage of cotton in southern Xinjiang, and neps and short lint should also be considered.

Regarding the recent demand, the order of ordinary quality yarn has slipped, but the impact on the order of high-grade yarn is relatively small, reflecting the quality requirements raised downstream, while the price is also very strong.

The combed compact spinning market is relatively good, and the order of the combed ring is greatly affected by the impact of Ba yarn.

The starting rate of the entire cotton mill is really insufficient, and the production must go according to the order.

2. Akesu textile industrial city

Akesu is named for its water, and its Uyghur language is "clear and Pentium water". It is located in the south of Tianshan Mountain and the northern margin of the Tarim Basin in Xinjiang, and is located in the central part of Southern Xinjiang.

The first division of the Xinjiang production and Construction Corps is located in the 16 districts of alar city and its respective districts.

The advantage of being in the middle is obvious. The neighboring five prefectures connect Kyrgyzstan and Kazakhstan, which are located in Wushi County, an important passageway on the "ancient Silk Road". The port of Diego is 300 kilometers from Bishkek, Kyrgyzstan, so as to enter the European market.

The Akesu textile industrial city was approved in October 2010, and the three city and seven garden key construction projects.

Industrial planning: planning area of 54.58 square kilometers, cotton spinning 6 million spindles, machine weaving 760 million meters, knitted fabric 72 thousand tons, Socks 2 billion pairs, 100 million garments, home textile 5 million, all kinds of printing and dyeing 100 thousand tons, after construction, can absorb 95 thousand people.

By the end of 2018, Akesu Textile Industrial Park has settled 100 textile and garment enterprises, and has now formed 3 million spindles of cotton spinning, 3000 looms, 40 million (sets) home textiles, 1500 socks, 20 thousand tons of scattered fiber and 10 thousand tons of fiber.

At present, Akesu is actively building relevant supporting facilities for the development of industries, constructing railway special lines and freight yards, setting up export supervision warehouses and bonded supervision warehouses, and establishing Akesu Zhejiang export industrial cooperation zone.

Akesu customs has just been established. The previous statistical export is through the Huoerguosi port, and it has not been calculated in the Akesu area.

In 2018, the total retail sales of consumer goods in Akesu totaled 15 billion 926 million yuan, an increase of 8.14% over the previous year, of which 20.88% of clothing, shoes and hats and needle textiles increased by more than the retail sales of Enterprises above designated size.

Huafu fashion:

Huafu fashion 18 cotton textile industry revenue 16 billion, fourth in the industry.

The construction of Huafu 1 million ingot project in Akesu has invested 630 thousand ingots and employs 5900 people. Last year, its revenue was 2 billion, net profit was 3 hundred million, and its operating condition was better. At present, 150 thousand spindles were still installed, and 220 thousand spindles were left behind.

The yarn market was relatively balanced in the first half of last year, but it was not good in the second half of the year, but it started 100% before the end of March. Now it has stopped 60 thousand spindles and the operating rate is 90%.

At present, the yarn inventory in Akesu is 18 thousand and 500 tons, and the inventory is 6 million meters.

Huafu cotton maintains two months of normal cotton stock (about ten thousand tons), and the current color spun yarn inventory to more than 12000 tons.

It was mainly due to the rejection of the Wall Street journal's interview at the beginning of the year, which was issued by the investigation letter, including compulsory labor, human rights and other items.

Target, Adidas, HM and other original partners have reduced or even stopped the purchase volume.

This is the biggest hurdle for Huafu now, affecting about 30% of its orders, because Huafu 60% yarns rely on foreign orders.

Huafu has 300 thousand tons of capacity in Vietnam, and Vietnam's orders are far better than domestic ones. Indeed, industrial pfer is taking place. Later plans continue to pfer 500 thousand capacity to Southeast Asia.

The rapid development of viscose also has a great impact on cotton. Huafu is also producing cotton and viscose blended yarn.

The dominance of Southeast Asia has always been there, and the trade war is only accelerating. The TPP agreement between the United States and Vietnam is preferentially purchased in the agreement countries.

The reduction of orders is not a price issue after tariff plus, it is a question of political risk and demand.

The demand for the entire textile industry in Akesu has declined, and it has been on the low side. Therefore, the high-end orders with long staple cotton as raw materials have also been greatly reduced.

Xinjiang Lu Tai cotton industry:

Mainly the long staple cotton and American Pima cotton in Awati county are used as raw materials to spin high count yarn, which is integrated with R & D, breeding, planting and spinning.

Lu Tai produces 20 thousand tons of long staple cotton (self occupied) annually, and 228 thousand spindles produce 60-300 spun yarn, with an annual output of 10 thousand tons.

Sales revenue 450 million yuan, profits and taxes thirty million yuan.

Mainly for shirt fabrics, international high-end high-end market share of more than 20%.

The world is close to 1 million spindles, the yarn needs to be picked up, and pure cotton accounts for 80%.

Supply downstream brands: Buberry, Hai Lan home, UNIQLO, YOUNGOR and so on.

Its own brand: 100% clean silk, a high-end brand, the main promotion of private custom, artificial intelligence.

At present, Xinjiang Lu Tai 230 thousand spindles are basically full production. Most of the other cotton mills in Xinjiang are low spun yarns, and the operating rate is somewhat worse.

Many of Xinjiang's cotton mills are three thousand to 15 thousand tons of inventory. Lu Tai has no stock at present, or orders, but the production cycle is shortened from 90 days to 37-38 days.

The impact of Sino US trade relations: Lu Tai mainly targeted at the US, EU and Japan markets, of which the United States accounted for about 25-30%.

First, the added value is relatively high, and the price of the terminal will rise by 25%, which is still acceptable.

Lu Tai has already laid out 1/3 capacity in Southeast Asia. Now the Chinese market has some influence and is hedging with the Southeast Asian market, which has little impact on the group as a whole.

In Southeast Asia, orders are in short supply, and even domestic orders are lost.

Vietnam's investment advantages and disadvantages: Vietnam electricity 4.1-4.4 yuan, Xinjiang more than 3 yuan, 7 more inland.

In the whole spinning cost, electricity accounts for 20%, manual labor accounts for more than 10%, and raw material accounts for more than 60%.

Vietnamese trade unions demand annual leave of 14 days per year, daily attendance rate is only 89%, and Vietnam's salary is 2000-2200 yuan (Xinjiang textile wage: 3500-4000 yuan).

Xinjiang's Pima cotton, plus 25% tariff, costs 28900 yuan / ton, 7000 more than Vietnam's shipping cost, and 1500 yuan per ton of labor cost.

Recently, a large number of garment factories in Kampuchea have gone bankrupt because of the sharp rise in wages, and the salary of 14 years is 70 dollars, now 170 dollars.

3. The standard of special subsidy funds for textile and garment enterprises in Xinjiang Autonomous Region

In the 14 years, Xinjiang textile and garment industry has preferential policies in terms of electricity price, pportation, loan discount, pre job training and social security. Its subsidies are distributed quarterly.

However, after the establishment of the plant, the subsidy for the cotton price difference and the value-added tax return subsidy are only one year; the training subsidy is one-time; until now, only the freight subsidy, the social security subsidy (new employees within three years), and the electricity subsidy have been left to the present.

From 14 years, the first 32 cotton yarn can be converted to 2000-3000 yuan / ton discount. At present, only about 1000 of subsidies, competitiveness is greatly reduced.

The main items are as follows:

Freight subsidy: 32 or more subsidies for yarn products 800 yuan / ton, 32 below subsidies 720 yuan / ton, 60 or more yarn products subsidy standard unified increase 100 yuan, weaving products subsidies 800 yuan / ton, after October 1, 2016, the newly registered spinning enterprises 32 production under half of the product subsidy standard, wool spinning (including wool), hemp spun yarn products, subsidies 720 yuan / ton;

Loan interest discount: the interest discount rate of fixed assets loans of enterprise textile projects is 1.5%, the discount rate of productive liquidity loans is 3.5%, the discount rate of fixed assets loans for clothing, home textiles, knitted, industrial textiles and other end products is 2%, and the discount rate of productive liquidity loans is 4%.

Tariff subsidies: the price of the textile and garment production enterprises in the autonomous region is 0.38 yuan / kWh, and the difference is 0.03 yuan / kWh.

Subsidies for pre job training: regional enterprises give a one-time subsidy in accordance with the subsidy standard of 2400 yuan per person and the number of employment approved by the autonomous region spinning.

Social insurance allowances: Xinjiang recruits of textile, chemical fiber and other production enterprises are subsidized by 50% of the sum of social insurance premiums paid or paid by enterprises. Clothing workers, home textiles, knitwear, carpets, industrial textiles and other end product production enterprises are recruited by Xinjiang employees, who are fully subsidized according to the actual sum of social insurance premiums.

Inside and outside spreads subsidies: the cotton products produced and sold by the enterprises use cotton and viscose fiber from Xinjiang. The difference between the import cotton price and the Xinjiang cotton price difference is 1500 yuan / ton, and the subsidy per ton is 800 yuan.

VAT rebate subsidy: the autonomous region should use all VAT revenues paid by textile and garment enterprises to support the development of Xinjiang's textile and garment enterprises.