Affected by factors such as environmental protection policies and increased labor costs, textile companies have become a trend to “migrate northward” in recent years. Traditional textile towns such as Suzhou, Shaoxing, and Haining are also in the process of transformation and upgrading, and are gradually phasing out backward production capacity. This has also led to the A large number of textile companies have relocated. The central and western regions of my country are the main base for undertaking the relocation of domestic textile enterprises, but in fact, Jiangsu’s northern Jiangsu region is also favored by textile enterprises “relocating north” because of its excellent geographical location, complete supporting facilities, and convenient transportation.
Recently, large-scale textile projects have frequently been relocated to northern Jiangsu.
On the morning of August 6, the signing ceremony for the Xuzhou Tianhong high-end textile fabrics R&D and production project was held in Suining.
The Xuzhou Tianhong high-end textile fabrics R&D and production project has a total investment of approximately 10.5 billion yuan, and will build various 1.2 million square meters of high-standard factory buildings, 300,000 square meters of supporting ancillary and functional facilities, 300,000 new cotton spinning production lines, 50 knitting dyeing production lines, 25 woven dyeing production lines, 30 loose fiber dyeing production lines, and 10,000 units purchased Looms, 200 eddy current textile machines. The project is expected to be completed and reach production in 2025, and is expected to achieve sales revenue of 15 billion yuan and profits and taxes of 900 million yuan.
In recent years, Xuzhou has regarded the textile industry as a top priority in making the new materials industry bigger and stronger. It has worked together to build one of the city’s 24 characteristic industrial chains, building a The work promotion system with the “chain length system” as the core has formed leading industrial clusters and industrial regional block economies in nine major product categories, including cotton textiles, printing and dyeing, chemical fibers, and clothing.
The decision of many textile giants including Hengtian, Hengli, Tongkun, Xinfengming and others to settle in Northern Jiangsu is not a matter of luck, but a manifestation of strength. Compared with the central and western regions, the geographical location of northern Jiangsu is more advantageous, allowing textile companies to reduce logistics costs. In addition, Northern Jiangsu has more convenient transportation and better supporting facilities. Compared with traditional textile towns such as Suzhou, Shaoxing and Haining, the labor costs and production costs are lower. On the other hand, in recent years, many areas in northern Jiangsu have introduced preferential policies to attract investment, attract companies to settle in, and provide more support to textile companies that “migrate north”, which also makes everyone willing to enter northern Jiangsu.
The originally unknown textile industry in northern Jiangsu rose rapidly almost “overnight”, and the huge textile cluster market began to take shape. At present, due to the rapid rise in land costs, energy costs, labor costs and ecological environment constraints, the textile and apparel industry in the southeastern coastal areas is accelerating its gradient transfer to the central and western regions, and many textile companies are expanding production capacity in inland areas.
According to statistics from each cluster area, in the first half of 2020, eight cities including Shengze, Xiuzhou, Longhu, Siyang, Pingwang, Qidu, Keqiao, and Dafeng Xiaohai The cumulative output of chemical fiber filament fabrics was 10.668 billion meters, a year-on-year decrease of 13.17%, and the decline was 9.45 percentage points narrower than the first quarter. Looking at the overall situation of the industry, Siyang, an important textile cluster in northern Jiangsu, has performed outstandingly, especially in the second quarter, which has bucked the trend. In the first half of the year, output increased by nearly 20% year-on-year. Judging from the data, North Jiangsu Textile is on the rise.
But everything has two sides. The rise of North Jiangsu Textile is also a test of the surge in market risks! Recently, it was reported that due to high gray fabric inventories, production losses, and few new orders, water-jet weaving outages in northern Jiangsu have increased recently, and some home textile fabric companies with thousands of machines have stopped production or significantly reduced production.
Due to the spread of the COVID-19 epidemic since last year, many large-scale export-oriented textile companies in India have been unable to guarantee normal delivery. Orders originally produced in India have been transferred to my country for production, including towels and bed sheets. The large order volume for other products has led to a blowout in demand in the home textile market since last year. Earlier, reporters found during investigations and visits that some private textile companies are eager to return overseas orders, and some companies have begun to add new equipment and expand production capacity. A textile company told reporters at the time that the company added 20 new circular knitting machines in September. There were 30 machines before, and now there are 50 machines in total. The number of precision packaging workers has also increased by at least 1.5 times this year, and sometimes temporary workers are also hired.
But due to the epidemic, we are looking for replacement orders, which is destined to not last long. Since July, the trend of reshoring orders has slowed down. Experts pointed out, “China has transferred orders overseas in recent years, but the situation last year was special. Many Chinese factories were the first to resume work and production. While many countries were still in the midst of a severe epidemic, it affected their textile exports. Customers couldn’t wait any longer. Just go to China to buy textiles. Now that the production capacity of those countries has recovered, customers have gone back.”
Large domestic textile and apparel companies are also “concerned about the temporary return of orders. “Knowing it all”, Jiansheng Group pointed out in the third section of the semi-annual report “Management Discussion and Analysis” that “the transfer of mid- and low-end production capacity to Southeast Asian countries with lower factor costs and less disruption from tariff disputes is still the general trend.” For enterprises Generally speaking, the expansion of production capacity may lead to an increase in production costs, and the return of overseas orders will not be continued, and the company will eventually bury the risk of overcapacity. </p
