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Hangzhou Xiaoshan Zhengda Textile Co., Ltd.

0571-83892320 Phone: 0571-83892320
0571-82640779

0571-82640779 Fax: 0571-82640779

jerry@zd-fabric.com Email: jerry@zd-fabric.com

浙江杭州市杭州萧山区红山农场坎红路2958号 Address: 2958 Kanhong Road, Hongshan Farm, Xiaoshan District, Hangzhou, Zhejiang, China

Another Zhejiang textile company closed down, the textile industry is really dead?

2016-07-07

It used to be one of the top 500 Chinese companies and once supported Cixi's foreign trade. Because of the good welfare, he organizes tourism every year, and there is a year-end award at the end of the year, and he has become a "other company" recognized by Cixi. However, recently, a notice circulating in Cixi Square, signed under the name of Cixi Import and Export Co., Ltd., reads: It is planned to negotiate the termination of labor relations for all employees, starting July, no longer pay wages, and fell in an instant.

Ningbo Cixi Import and Export Co., Ltd.

According to the company's official website, Cixi Import and Export Corporation was founded in 1988, with a registered capital of 185 million yuan. In 2003 and 2004, it ranked among the top 500 Chinese companies. It also entered the top 500 Chinese companies with 12 consecutive imports and exports. National Advanced Collective of Business System, National Foreign Economic and Trade Quality and Benefit Advanced Enterprise. Mainly engaged in bearing auto parts, hardware plumbing, home appliances electronics, textiles and clothing, luggage shoes and hats, light industrial technology and other six major categories of products.

Why did star companies fall?

The saying in Cixifang is: dragged down by the property market.

There is a Hengyuan Yuecheng Real Estate in Cixi, which was developed by Hengyuan Real Estate, a subsidiary of Cixi Import and Export Co., Ltd. The real estate market in 2010 was good. As the only 70-year residential property in the cultural business district, Hengyuan Real Estate invested heavily in the development of Hengyuan Yuecheng. According to a document from the Cixi Development and Reform Bureau, The investment was 3.18 billion, and the source of funds was self-raised. The method indicated was bank loans. However, after the start of construction in 2012, the property market was sluggish and building sales encountered a bottleneck.

According to shareholders' understanding, in addition to Hengyuan Real Estate's real estate projects, Cixi Import and Export Company also invested heavily in German rev projects, Argentina investment, Tianjin Samsung Camera, Zhenhai New City Real Estate and some hotel investment projects, all reported losses, resulting in a capital chain Break, payment difficulties, and insolvency.

It can be seen that once the foreign trade aircraft carrier could not withstand the temptation of the market and made a lot of diversified investments. In the smooth year, it can also dismantle the east wall and fill the western wall. When the market was depressed, diversified investment Maintaining the main textile industry and making no money from the investment is really a shame. It is a shame to lose the textile lady and the textile old man.

Textile trends have changed

Due to the gap between cotton prices and labor costs, low-end orders in the Chinese textile industry have been continuously lost in recent years;

The traditional advantage of China's apparel trade at low cost is gradually disappearing, and more and more apparel orders are shifting to Southeast Asia. In order to reduce production costs and increase export profits, some of our export-oriented apparel companies have also chosen to build factories in Southeast Asia;

Coupled with the disappearance of the demographic dividend, the transfer of foreign businessmen in China's manufacturing industry has also begun to shift. The low-cost competitive advantage of Southeast Asian countries such as Vietnam has forced the Chinese textile industry to undergo industrial upgrading, structural adjustment, and advance with the times. Will be eliminated by market trends.

Is the textile industry really dead?

In 2008, when the textile industry encountered the global financial crisis, the European debt crisis, the widening of domestic and foreign cotton price differences, rising labor costs, and huge market pressures, Dezhou Hengfeng Textile Co., Ltd. went up against the trend. From a debt of 160 million yuan, from 70,000 spindles to 750,000 spindles, from a factory to a group of 17 subsidiaries, from a debt ratio of 150% to a total asset of 1.5 billion yuan, from 2800 employees to With more than 7,000 employees, Hengfeng has been restructuring for 5 years and successfully counterattacked with actions. The scale of the company and the realization of profits, taxes, and foreign exchange earnings from exports have reached a record high, creating the myth of 5 years of restructuring. The achievements of the Hengfeng Group are about the hardships that they have experienced, and they are the trajectories of innovation and development. They also show us how to grasp the market trends and transform and upgrade in the context of the changing textile environment.

The Hengfeng Group invested in Ningxia along the Belt and Road strategic plan. At present, the total investment of the Ningxia Hengfeng Textile Project has been increased to 2.5 billion yuan. Two and a half years have been set up to build 4 factories, 3 spinning mills, and 1 weaving mill. Hengfeng Group has established a complete industrial chain integrating textile, printing and dyeing, and clothing. There are about 300,000 spindles and 288 looms, of which 72 are jacquard. At present, the first industrial park of Hengfeng Group has been completed, and the second industrial park is being planned. On December 12, 2015, Ningxia Hengfeng Group signed a "millions of spindles, thousands of looms, ten billion yuan" with Litong District. The output value development project will eventually reach the scale of 1 million ingots.

Dezhou Hengfeng's main business income from 32 in 2012, 23 in 2013, 15 in 2014, and 10th in 2015. Texas Hengfeng Group has made a step each year and successfully entered the ranks in just 4 years. 10th in the country. Moreover, the main business income of chemical fiber staple fiber blended yarn has maintained its leading position in 2015 after ranking first in 2014. Hengfeng is also constantly upgrading and strengthening while expanding continuously, and the overall situation of the national textile industry is not optimistic. In the past three years, Texas Hengfeng Group has presented such a transcript, which is really exciting, and it also shows us that in the new market environment, all industries are facing repeated construction and low-price competition. The situation is not optimistic.

Postscript

The textile industry, as one of the four basic needs of human clothing, food, shelter, and transportation, is a sunset but never falls, so textile companies must strengthen product innovation and technological innovation, and also pay attention to relevant national policies, even if they make diversified investments Also try not to be too scattered, especially if you are unfamiliar, try not to vote.

Finally, a quote from the General Secretary was quoted as saying, "Industrial Xingbang, talk about wrong country, seize the main business, and calmly invest."