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Instead of "flying" to Southeast Asia, the United States, Japan Russia, the cotton mill has been opened to Jiangxi. What is the intention of this textile enterprise?

2016-10-09 16:55:40

"In recent years, the company's yarn sales in Nanchang surrounding areas have been increasing, with an annual increase of about 5% - 6%. Jiangxi has attracted a number of well-known clothing brands fabric enterprises to invest in local factories, the orders undertaken by local enterprises are increasing day by day. The local textile clothing products are also upgrading towards the middle high-end direction, it is expected that the demand for yarn products in the local market of Jiangxi Province will continue to grow steadily in the future. " Zheng Hong, chairman of Jiangxi Jinyuan Textile Co., Ltd., described to reporters his judgment on the future of Jiangxi cotton textile market

It is usually an important factor for a company to grow rapidly to invest at a right time. Judging the adjustment of regional structure of domestic cotton textile industry in recent years, the central western regions are undoubtedly a hot spot for investment. Jiangxi Jinyuan Textile Co., Ltd. (hereinafter referred to as Jiangxi Jinyuan) is seizing the opportunity of southeast coastal textile industry transferring to the central western regions, seizing the opportunity to invest build factories in the central provinces, so as to grow rapidly into the "leading benchmark" of Jiangxi textile industry. It is also because of the drive of the enterprise that the development upgrading of Jiangxi textile industry is accelerated


"Targeting" opportunity to invest in Jiangxi


In the whole cotton textile industry, some enterprises even lost money in the past two years, The performance of Jinyuan in the central part of Jiangxi province keeps stable good, the life is very "moist" In 2015, the company's yarn sales increased by 86.1% year-on-year, sales increased by 53.9% year-on-year, its gross profit margin also maintained a stable growth, Zheng Hong said

Jiangxi Jinyuan is located in Fengtian Economic Development Zone, Fengxin County, Yichun City, Jiangxi Province. At present, the total spinning scale is about 800000 spindles. The yarn varieties mainly include polyester yarn, polyester cotton blended yarn, cotton yarn, hemp grey polyester color yarn, viscose fiber yarn, etc. About 50% of its yarn products are sold to Shaoxing, Zhejiang, about 20% to Guangdong, Fujian, Shandong other places, about 20% to be "digested" in Jiangxi, a small part to be exported (mainly polyester yarn).


When it comes to why we invest in Jiangxi, Zheng Hong said that this was due to several factors

The first is the demand for the structural adjustment of domestic cotton textile industry. After 2008, the domestic cotton textile industry capacity experienced a new round of expansion. It will take some time to digest the new capacity, which has become one of the important factors for the decline of market efficiency of cotton textile industry in recent years. In this context, "going out" has become an important idea. The central region can undertake part of the textile industry realize the optimal allocation of industries among different regions

"At present, the operating efficiency of many enterprises going out the southeast coast has declined. After going out, we are forced to innovate, improve upgrade yarn products, pay more attention to differential product development. For example, in 2015, the sales of rabbit hair yarn was booming, enterprises seized the market demand created several times the profits of ordinary yarn. " Zheng Hong said

Second, the local government of Jiangxi Province has made great efforts in attracting foreign investment, has also introduced some preferential policies in tax, tax other aspects

"In 2005, the Jiangxi provincial government went to Hong Kong to attract investment. I felt that the conditions given by the local government were relatively favorable, considering the large space for the development of the textile industry in the central region, I established Jiangxi Jinyuan in 2005, the company was put into production in 2006," Zheng Hong said


With the steady rapid development of Jiangxi Jinyuan, in December 2011, the company ushered in a "big event", listing on the Hong Kong stock exchange, thus opening a "new channel" for its further rapid development. After going public, Jiangxi Jinyuan began to have "big moves"

In December 2014, Jiangxi Jinyuan established Jiangxi Xinyuan Special Fiber Co., Ltd. in Jiangxi Fengxin Industrial Development Zone, holding 51% Jiangxi Xinyuan will be mainly engaged in polyester staple fiber, mainly for Jiangxi Jinyuan spinning business, mainly producing polyester yarn

Zheng Hong calculated such an account for the reporter: "before that, about half of the polyester staple fiber raw materials needed by the company had to go to the chemical fiber factories in Jiangsu, Zhejiang, some to Fujian chemical fiber factories. The transportation cost of PET staple fiber these provinces to Jiangxi is relatively high. Through the establishment of Jiangxi Xinyuan, our local industrial chain in Jiangxi can be more complete cost can be better controlled. Some raw materials needed by Jiangxi Jinyuan can also be supplied nearby. It is estimated that the cost of raw materials purchased by the company can be reduced by about 500 yuan per ton, the transportation cost can be saved. "

According to reports, Jiangxi Xinyuan phase I project has an annual output of about 80000 tons of polyester staple fiber, will install the machine in the second quarter of this year. After being put into production, 50% of the output of Jiangxi Xinyuan will first be supplied to Jiangxi Jinyuan itself, the remaining 50% will be used to support the cotton textile enterprises around Nanchang


Another big move is,In 2015, Jiangxi Jinyuan purchased Jiangxi huachunse Textile Technology Development Co., Ltd. with annual spinning capacity of about 300000 spindlesThrough the acquisition, Jiangxi Jinyuan entered the market of grey polyester yarn, the synergy began to highlight in that year

Talking about the next development idea of Jiangxi Jinyuan, Zheng Hong said that the company will continue to strengthen product development, is currently building a R & D production facility for the development testing of new products, will also strengthen marketing to fully expand the market for the promotion of new products. At the same time, the company will start vertical integration to the upstream of the industry through Jiangxi Xinyuan

The development trend of cotton textile industry in Central China is good

In recent years, the transfer of domestic textile industry the southeast coast to the central region the western region represented by Xinjiang has a significant momentum Especially with the promotion of the strategy of "the rise of the central region", Jiangxi, Shenzhen, Hubei other places, which are close to Guangzhou the developed clusters of traditional textile garment industries, have become important places to undertake textile industry

In the past few years, local textile enterprises in Jiangxi were more about production capacity, but in the past three four years, local clothing brands began to upgrade towards the middle high-end direction. At the same time, Jiangxi enterprises have undertaken more more orders. With the steady development of Jiangxi local garment industry, the demand for fabric yarn products has been growing steadily. On the other hand, some well-known clothing brand enterprises the southeast coast also "aim" at Jiangxi invest in local factories, which creates new demand. Driven by the continuous expansion of demand in several aspects, Nanchang surrounding areas have attracted some famous fabric enterprises in Guangzhou, Fujian other places to build factories in recent years, which undoubtedly greatly boosted the demand for yarn in the local market.


[Taiwan funded enterprises come to Jiangxi Shangrao garment factory]

This problem can be confirmed by the localized sales of Jiangxi Jinyuan yarn products. "This can be seen the rapid growth of sales volume of Jiangxi Jinyuan in recent years. In the past few years, our yarn is mainly sold to Guangdong, Zhejiang, Fujian other places, with a small proportion of sales in Jiangxi, about 5%. However, in recent years, the company's yarn sales in Nanchang surrounding areas have been increasing, with an annual increase of about 5% - 6%. At present, local sales account for more than 20% of the company's total sales. " Said Zheng Hong. This undoubtedly shows that Zheng hongyiran's judgment on investment in Jiangxi was accurate.

According to the data the textile industry department of Jiangxi industry Information Technology Commission, January to November 2015, the industrial added value of Enterprises above Designated Size in Jiangxi textile garment industry was 54.7 billion yuan, up 6.3% year on year; the main business income was 219.4 billion yuan, up 5.7% year on year; the profit was 15.7 billion yuan, up 8.6% year on year. At present, Jiangxi has basically formed the pattern of "taking clothing as the leader to drive the common development of cotton spinning, Ruichang cotton spinning, De'an textile chemical fiber", gradually formed nine provincial industrial bases, i.e. "Qingshanhu District knitted clothing, Gongqingcheng down clothing, knitting, Xinzhou MAH textile, Fengxin textile so on


[Qingshanhu District Textile clothing industry conference was established]

Zheng Hong also said that with the restructuring of Shandong's local cotton textile industry, some textile enterprises in Shandong began to purchase more yarn Wuhan, Nanchang central provinces since last year. This also brings new market space to Jiangxi spinning enterprises. At present, in addition to the daily maintenance, Jiangxi Jinyuan is basically started at full load, which also proves the good development trend of the enterprise the side

"There are some weaving enterprises around Nanchang, which have been scattered before, but have been concentrated in the past two years through integration In recent years, some fabric enterprises Guangdong, Zhejiang, Fujian Jiangxi started to build new fabric factories in Jiangxi, Jiangxi Jinyuan has connected with them in sales On the whole, the structure of local textile clothing products in Jiangxi is upgrading towards the middle high-end direction. Jiangxi is rich in labor resources, local employment is relatively stable, the government has made great efforts to attract investment. It is expected that the demand for yarn products in Jiangxi's local market will increase in the future. " He has been deeply involved in Jiangxi market for more than 10 years. Zheng Hong is very optimistic about the development prospect of Jiangxi textile industry is confident in the next development of Jiangxi Jinyuan


Talking about the current development trend of domestic cotton textile industry, Zheng Hong used four words of "overall stability" He believes that at present, the cotton stock in the domestic cotton textile market is still high, the cotton price tends to be stable in the year. The lower price of raw materials will bring about a decline in the price of yarn products to some extent. However, the possibility of further substantial downward adjustment of yarn price, as in the past two years, is small. On the whole, the stable price of raw materials will provide a better development environment for the domestic textile industry

"The added value of products in cotton textile industry is relatively stable with little fluctuation relatively stable demand, so I have confidence in the development prospect of the industry. the quality of yarn products to improve, mainly depends on improving the quality quantity. " Said Zheng Hong


Add:Fengtian Economic Development Zone, Fengxin County, Jiangxi Province, China