There is no shortage of stories about industrial transfer! Since the national environmental protection rectification movement was launched in 2017, the transfer of the textile industry is becoming a rational choice for enterprises to achieve transformation and upgrading and seek breakthrough development. Under the pressure of environmental protection, the central and western provinces with low costs, abundant resources and large environmental capacity have ushered in the “westward expansion” of textile enterprises. Industrial transfer is also a double-edged sword. For enterprises, it can find a “fertile ground” in “troubled times”, but for the market, the exponential increase in production capacity can make the supply and demand of the textile market where the original demand has weakened. More pressure.
In 2019, the entire textile industry was in a state of At the turning point from prosperity to decline, the market environment is not good, and domestic demand for fabrics and foreign trade orders are not as good as expected. Many textile people point the finger at the explosion of foreign production capacity, which has led to increased market supply and demand pressure. Mr. Qu from Anhui Fuqiang Textile Co., Ltd., who was among the first batch to enter the Langxi Textile Industrial Park, was also worried: “The expansion of production capacity will have a great impact and it will be difficult for the enterprise.”
Since the first batch of 6 Shengze textile companies bought land in Langxi Textile Industrial Park in 2011, the development zone has It has developed into nearly 50 textile enterprises, with a scale of about 15,000-16,000 water-jet looms, forming a relatively complete industrial chain from sizing, weaving, finishing and deep processing.
Under the high pressure of environmental protection, the national water spray production capacity has not decreased but increased!
The impact of “industrial transfer” has affected the entire textile industry. In 2017, under the high pressure of environmental protection, many textile enterprises in clusters in Jiangsu and Zhejiang were shut down or relocated, and their production capacity was significantly reduced for a time. This also led to the “once-in-a-decade market situation” in the textile industry from 2017 to 2018. However, with the “Eastward Exit” With the deepening of “Westward Expansion”, many textile bosses have doubled their production capacity to other places. The market production capacity began to increase instead of decreasing in the second half of 2018, and the original good scenery has gone forever.
“This year’s market is really not optimistic. The most important thing is that there is more production capacity outside the country,” said a boss in the park. “From 2011 to 2013, Langxi was still Few companies pay attention to it. At the earliest, six Shengze companies came to buy land and invest. In 2017, after various environmental protection and safety supervision policies were introduced, the number of bosses coming here to buy land and build factories increased significantly. Now there are 15,000 people in this park. There are multiple water-jet looms, and the capacity of the entire park is about 30,000 water-jet looms.”
In fact, Anhui Langxi is just one of many emerging industrial parks, including northern Jiangsu, Jiangxi Industrial parks in China, Hubei, Henan and other places are also rising rapidly, with greater production capacity. The textile industry in the central and western regions is entering a new era, and production capacity will increase exponentially.
(Textile enterprises equipped with sizing and consolidation)
For textile bosses, since the Qingming Festival, transactions in the entire fabric market have been lacking in hot spots, and these effects first appeared in the relocated new industrial park. The industrial parks that originally relied on the textile industry have become much quieter, and some manufacturers are already at the crossroads of whether to stay or go.
In the industrial park, a textile boss from Jiaxing is preparing to withdraw from the industrial park. Since this year’s market is very different from last year, the boss produces rayon fabrics. In today’s bad market, rayon fabrics encounter more cost problems than other filament fabrics and are more “delicate”: if the gray fabric is stored for a week, it will either be dyed or needs to be dried, otherwise stains will easily appear. There will be problems with dyeing. Disposable water needs to be used during production instead of recycled water… These all increase the boss’s weaving costs. In the case of poor environment and lack of orders, the cloth boss can only Choose to move out of the industrial park. Of course, in addition to the “acclimatization” phenomenon of rayon fabrics and Langxi Industrial Park, poor market conditions are the most critical crux. A small number of bosses are already waiting to see whether they should move back or continue to stay.
Indeed, during the visit , the most common thing that textile bosses say is: business is not good this year, and there is a lot of pressure! At present, Langxi Industrial Park is facing the following status quo:
1. The degree of homogeneity is high and the “price war” has begun. Although 80-90% of the fabrics produced in the industrial park are returned to Shengze, Jiaxing and other places, most companies in the park mainly produce conventional chemical fiber fabrics, so the degree of homogeneity is high. As the market weakens, market competition has become more intense. In response to the fierce competition, manufacturers have begun to accept orders at low prices.
2. Inventories continue to rise, and manufacturers are under great financial pressure. At present, the weaving inventory of manufacturers in the park is generally above one month, which is more than half a month higher than the same period last year. The textile boss said that after the Qingming Festival, market orders dropped sharply, and gray fabrics were stuck in the warehouse and could not be shipped. However, the purchase of raw materials, workers Funds are needed to pay wages, etc., so the financial pressure is increasing.
(Warehouse full of inventory)
3. High-pressure environmental protection, the water spray indicator is also “piercing”. For many textile bosses who have moved out, indicators are the original intention. However, as Langxi Industrial Park matures, environmental protection and safety supervision requirements are getting higher and higher. Drones, daytime monitoring, and old machines more than 2 years old are not allowed to enter the park… Various requirements also make textile bosses feel uncomfortable. Not easy. In addition, it is said that the current industrial park quotas are limited. If companies want to buy quotas now, they need to wait in line until next year.
4. The cost of labor, water and electricity is high, and the overall cost is not low. The labor wages and circulating water fees, which are higher than 600-700 yuan/month in Shengze and other places, and the rising land costs also make the overall cost of gray fabric produced in Langxi not much lower than that in Shengze and other places.
The author once believed that the transferred textile bosses were seizing the opportunity , low-cost, but from Lang Xi’s point of view, among the three necessary factors of “time, location, and people”, each link seems to be more or less “holding back”. Not just for Langxi, but for most textile bosses this year, life is better than anything else!
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