Since 2017, special rectification work on water-jet looms has been in full swing, and various regions have successively introduced regulations to suspend production and limit production. The impact on the textile market can be said to be unprecedented. Taking Wujiang area as an example, the cumulative elimination of low-end and illegal water-jet looms in 2017 and 2018 was 44,408 and 30,642 respectively. In 2018, Shengze Town passed the total control and promoted the special rectification action of water-jet looms in a differentiated and orderly manner. A total of 12,400 water-jet looms were eliminated throughout the year. It is understood that Wujiang is striving to pass the rectification measures in the three years from 2017 to 2019. , reducing the total number of water-jet looms from 340,000 to 238,000, ensuring a total reduction of 30%.
With the frequent tightening of environmental protection policies in the southeastern coastal areas in the past two years, a large number of textile companies have flocked to the central and western regions, where there are currently no troublesome environmental shutdowns and production costs are lower. Labor is cheaper there. For a time, a large number of chemical fiber textile companies were vying for land in the central and western regions, boosting the weaving production capacity in the central and western regions to usher in leapfrog growth. After years of practical experience, is the central and western region really as good as originally imagined?
The transfer direction of water-jet looms is aimed at the central and western regions
At the beginning, we all thought that the water-jet looms in Jiangsu and Zhejiang areas would be transferred to Anhui, Hubei, Northern Jiangsu, and Jiangxi and other inland areas took the initiative to move there due to the influence of local preferential support policies, but this is not the case. It is more of a helpless move due to reasons such as no factory buildings and no indicators.
Anhui Xinyangtian Weaving mainly produces Huayao crepe series and high silk treasure series. It has built a factory in Langxi, Anhui. It currently has 170 looms. Mr. Chen of the company said that the previous factory in Shengze It was rented, because the company’s development was restricted because it could not buy a new factory building, so it was moved to Anhui Langxi Cross Development Zone. It was moved out as early as 2011, not for environmental protection and other reasons.
Wujiang Zhengxin Warp Knitting Factory was one of the first to set up factories in other places. Manager Jin said that the factory went to Anhui Guangde Economic Development Zone to build a factory in 2005 and invested in the establishment of a printing and dyeing factory and a The warp knitting factory is mainly restricted by Shengze land and other aspects.
Yancheng Dongtaita Sudi Textile, which specializes in polyester taffeta and Oxford cloth, has 630 looms in northern Jiangsu. The person in charge, Mr. Bao, said that it was helpless to move out because the Jiashan area had to be cleared last year. 80% of the looms have to be returned, so the machines can only be moved to northern Jiangsu.
Suzhou Zejun Textile Technology specializes in down and outdoor fabrics. It has 200 looms in Siyang, Suqian. Mr. Zhang Shuhua of the company said that the main reason for the transfer was that Shengze had local quota restrictions and The tax burden is high, but Suqian has no quota restrictions and low taxes.
So, what is the difference in cost between textile companies in central China and Wujiang and Jiaxing? Taking Anhui as an example, we settled an account.
Labor cost: The labor cost is higher than that of Shengze, which is inconsistent with the original expectation. For example, the salary of a car driver in Anhui is 9,500 yuan/month, while that of Shengze is basically 8,000 yuan. Not only that, the difficulty in recruiting workers still exists.
Land cost: The rent is similar to that in Shengze area, around 200 yuan/square meter; if it is a self-built factory, the current price does not have much advantage.
Logistics costs: Since most polyester factories, printing and dyeing, and terminal sales are concentrated in Jiangsu and Zhejiang, textile companies may bear double logistics cost pressure if they relocate to central China. , for example, raw materials are shipped for 100 yuan/ton, and gray fabrics are shipped for 0.15 yuan/meter.
Indicators and tax burden: There are more water-jet loom indicators in the central and western regions than in Wujiang, and it is easier to approve the indicators. This is a major advantage. In addition, the tax burden It is also a major aspect that affects corporate costs. Affected by preferential policies, the tax burden in northern Jiangsu, Anhui and other places is generally lower than that in the southeastern coastal areas.
In addition, local policies and supporting facilities are also an important indicator for enterprises to consider. After years of development, the central and western regions How is the development going?
Mr. Chen of Anhui Xinyangtian Weaving said that Anhui Langxi’s policy is that certain discounts will be given when the investment reaches a certain amount, and the supporting measures are relatively complete, such as warp drawing, dyeing plants, and accessories. Everything is ready.
Mr. Bao, the person in charge of Yancheng Dongtai Tower Sudi Textile, said that the Dongtai area is still under development, so there are no complete supporting facilities. The original consideration of moving there was only because there were indicators. At present, There are only about 2,000 looms in Dongtai.
Zhang Shuhua from Suzhou Zejun Textile Technology said that the supporting measures for Suqian’s weaving industry are currently being gradually improved, and a complete industrial chain is expected to be formed in the next 2-5 years.
Mr. Shen of Cili Textile said that the policies in northern Jiangsu are a little looser than here, and all supporting measures are in place.
The transferred production capacity will increase multiple times, and “making money every day” will become a thing of the past
It is understood that SuThe total newly added loom production capacity in Jiangxi, Anhui, and Hubei has now reached about 200,000 units, while the elimination target for the entire Wujiang region is only about 100,000 units (see table below).
Wujiang District Water-jet Loom Special Renovation Work Task List
The transferred looms are all With exponential growth, most of these looms are used to produce mid-to-low-end gray fabrics. However, the current production capacity is already oversupplied, and coupled with the surge in transferred production capacity, competition will become more intense for a cake that is not enough to divide.
Yancheng Dongtaita Sudi Textile believes that the market outlook is still focused on stability, because the current market capacity is already oversupplied, so it will not consider expansion, but will make good products and develop market.
Mr. Chen of Anhui Xinyangtian Weaving feels that the overall trend is quite promising, but the pressure of competition is definitely getting bigger and bigger. The companies that used to be in Shengze basically increased their machines five times after moving to other places. , Langxi already has more than 20,000 looms. With the blowout of peripheral production capacity, some enterprises whose capital and technical strength cannot keep up due to blind expansion will be eliminated.
In 2019, these production capacities transferred to the central and western regions will begin to be put into operation one after another. Once the peripheral production capacity blows out, low-price competition will inevitably occur, and some companies with difficulty in maintaining capital chains will also face reshuffle and elimination. Therefore, in 2019 This year is a severe test for gray fabric manufacturers in Jiangsu and Zhejiang! </p
