Xiaoshan down industry is about to kick off the rectification! Xintang, the famous “Hometown of Down in China”, held a special meeting on the rectification work of related industries on December 12 to mobilize, deploy and implement the rectification work of related industries, kicking off the rectification work.
The meeting pointed out that Xintang Sub-district strictly follows the requirements of superiors, strictly regulates standards, strictly controls time points, and strongly promotes the rectification and improvement of relevant enterprises. As of now, the sub-district has required each village (community) to conduct down (washing, wool separation), Eleven industries including printing and dyeing, chemicals, and concrete were investigated and relevant information was collected. The street summarized and initially approved the reported investigation results, and required each village (community) to further fill in the gaps. It is expected to be comprehensive before December 14 Completed, providing the basis for this rectification of related industries. Preliminary statistics show that there are 2 printing and dyeing companies, 4 chemical companies, 2 electroplating companies, 176 down companies (washing, wool separation), 1 concrete company, and 2 chemical fiber (polyester, slicing) companies in the street.
The down industry is one of the twelve heavily polluting enterprises in Xiaoshan. According to the “Implementation Opinions on the Improvement and Improvement of “Low, Small and Scattered” Industries in Xiaoshan District, Hangzhou”, down companies will complete the closure of 152 companies before the end of 2018, and complete the improvement and improvement of 30 companies before the end of 2019. After the rectification, the number of down companies in Xiaoshan District will be limited to 30. This is obviously another major reshuffle of the industry.
The price of down has increased by 60%, affecting the sales of down fabrics
In Xintang, more than 200 down companies have sprung up like mushrooms after a rain. The down production and export of Xintang Subdistrict accounts for 90% of Xiaoshan, 56% of the country, and about 30% of the world. It has the reputation of “Looking to Xiaoshan for the world’s down, and Xintang for Xiaoshan’s down”. Down enterprises are concentrated in Xintang Street. As the “Hometown of Down in China”, Xintang’s down industry accounts for half of the country’s total, and this industry rectification is bound to have a lot of impact on down products.
In fact, as early as the beginning of this year, due to the soaring prices, the price of down began to skyrocket. It has risen from more than 100,000 yuan per ton in previous years to more than 300,000 yuan per ton, an increase of about 60%! In addition to the high price, cash must be purchased. The atmosphere in the textile market was very weak some time ago, and the performance of the autumn and winter fabric down jacket series was average. The important reason is that many small clothing factories have difficulty purchasing down to produce down jackets. For example, there are many small clothing factories in Pinghu that produce down jackets. Due to the cost of down, few manufacturers are making down jackets this year. This has resulted in a reduction in the purchase of down jacket fabrics, resulting in the sales of down fabrics this year not being as expected.
Following the 381 companies that were renovated and shut down in Xiaoshan, the 152 down companies will be reduced to 30
Before this down industry rectification, Xiaoshan’s chemical fiber textile companies had already begun rectification. The specific work arrangements for the “Three-Year Action Plan for Improving Urban Environmental Quality in Xiaoshan District, Hangzhou (2017-2019)” include: 1,000 companies (workshops) are planned to be shut down; 1,000 companies will be renovated and upgraded; all 8 recycled fiber companies will be shut down. Stop; shut down 2 chemical fiber companies in the ring line, from the current 14 to less than 12; shut down the printing and dyeing companies in the ring line, and integrate the existing 35 printing and dyeing companies into no more than 19 companies… …
The Xiaoshan textile industry’s “vacate the cage and replace the bird” plan is in full swing, but what this has brought to the textile industry is undoubtedly a huge change! The cost of chemical fiber raw materials has increased, and raw material prices have been at a high level, which directly affects the profits of downstream weaving companies. Nowadays, after the down industry has been rectified, it is currently difficult to imagine how high the price of down will reach. Then, the improvement of down will directly affect the output of down products, thereby affecting the procurement of downstream down fabrics. This series of chain reactions may bring another major reform to the enterprise!
Not long ago, down jacket fabrics such as high-density nylon spun have accumulated inventory in weaving factories and the goods are not flowing smoothly. For example, the price of 380T nylon yarn has been reduced by 0.5 yuan/meter, and some products have been reduced by 0.8 yuan/meter! This situation has already occurred, so after Xiaoshan Down’s rectification, will down fabrics usher in a “cold winter”?
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