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In the hot and cold environment, textile enterprises may face the second reduction of production and holiday measures

Since the environmental protection campaign was launched nationwide in 2017, textile industry transfer has become a rational choice for enterprises to realize transformation and upgrading and seek breakthrough development. Under the high pressure of environmental protection, a large number of looms have sprung into the low-cost and resource rich central and western regions, but with the passage of time, how are the bosses who have been expanding their production in the past two years?

Peripheral dividend began to fade, but the cost was not much lower

In the past two years, the owners who transferred the looms began to have a consensus: in fact, the cost of transferring the looms is not much lower! Here are some views on the cost of cloth owners who moved to Subei, Anhui, Henan and other places.

"Compared with the local government, labor is more important. Other rent, water and electricity are all good. Environmental protection is a little better this year because of the epidemic." ——Transfer to Langxi, Anhui

"The rent is cheap. It's 120 yuan per square meter. The labor is almost as expensive as the local labor. Because we arranged local management workers to guide the production in the past. The water and electricity fees and taxes are basically unified across the country." ——Transfer to Henan

In this way, especially in terms of labor, some peripheral areas have even surpassed the local area. Although the rent is relatively cheaper, the overall cost advantage is not obvious, and the transferred boss is also due to the strict local indicators, while the central and western regions basically have no indicator requirements. Therefore, in the first two years, some large-scale enterprises are hundreds of machines This will lay a foundation for the blowout of grey cloth production capacity in the next few years.

Millions of meters are stored in a normal way, and most enterprises in peripheral areas only open half of their machines

"This year, the situation is really not optimistic. Our export orders have been reduced a lot, the demand is low, and the machines are also in the weaving stock. Our stock has reached 5-6 million meters. In addition, the price of cloth has not been increased recently, which is equal to the production of low price grey cloth with high price raw materials, which is actually a loss. In this case, we choose to stop half of 300 looms in Langxi, Anhui Province, only Open 50%. The startup rate of the surrounding manufacturers is basically about 50%, and the better ones are about 7-80% Said a cloth boss who moved to Langxi, Anhui Province.

In addition to Anhui, Henan, Northern Jiangsu, Hubei, Jiangxi and other regions have also undertaken most of the looms, most of which have been transferred to other places are water jet looms, which are also the most low-end fabrics, such as polyester taffer, Chunya textile, Nisi textile, etc. According to incomplete statistics, the number of new looms added in Northern Jiangsu, Jiangxi, Anhui, Hubei and other places has exceeded 200000! It can be imagined how much grey cloth production capacity there is in other places.

Since the first half of 2019, grey fabrics such as polyester taff and Chunya textile have been in a state of overcapacity. By April of this year, although it is said that polyester taff and Chunya textile can replace non-woven fabrics as protective clothing, the demand for polyester taff and Chunya textile has picked up, but they can not digest so much inventory. Therefore, the current field of grey cloth is still in a serious imbalance between supply and demand.

Foreign grey cloth with low price and large output has an impact on the local market

"The price of grey fabric of peripheral looms is lower. For example, their 210t polyester taffer in Northern Jiangsu can be less than 1 yuan, while the price of raw materials for our own production is about 1.2-1.3 yuan / meter. But the quality of these grey fabrics is not as good as that of the local ones. Generally, they produce low-end products such as polyester taff and Chunya textile. In the end, most of these grey fabrics also flow into the local market, causing a great impact on the local market! " Cui, who has more than 300 looms, said.

A large number of peripheral grey fabrics flow into the local market. Although their quality is not as good as that of the local market, these grey fabrics belong to the market. Customers do not have high quality requirements. Coupled with the temptation of low price, on the premise that there is no major problem with fabrics, they will give priority to the low price. Affected by this, many local enterprises are forced to join the price war and fall into the abyss of loss. The more production, the more loss, however When the machine stopped, the rent, the depreciation of the machine, and the basic living expenses of the workers were all expenses. Boss Bu faced a dilemma.

In the hot and cold environment, the next step will be to reduce production and take holidays

Now the raw materials have increased a certain amount compared with the beginning of the month, but the price of cloth still remains unchanged. In addition, the recovery of foreign trade is not obvious, and domestic trade is gradually entering the off-season, leading to the lack of orders. Even the previously hot anti epidemic orders such as polyester taff, chunyafang and conductive cloth are beginning to come to an end. Facing this situation, the cloth owners in the peripheral areas say that after comprehensive consideration, the next may be Cut production, or even stop it all!

"If the raw materials fall, we will buy some to continue production, if not, we may have a holiday at the end of the month." Said boss Bu, who has a 50% startup rate. "In this case, we can only sell grey cloth at a low price to collect funds, but we are not willing to lose money all the time. In the future, we may have to reduce machines by more than 300 directly to more than 100." Mr. Wang, who moved to Henan Province, said.

As far as the current situation is concerned, only by trying to survive this period of time can we possibly receive orders after the outbreak