Cotton Industry Development Xinye Current Situation Problems and Suggestions

First, county cotton textile industry development status

In recent years, county cotton textile industry in the county, the Government under the correct leadership, according to “cultivating the lead, to grow bigger, stretch the chain, optimizing the structure and upgrade the level of” development ideas, adhere to grasp the scale of industrial expansion, grasping the leading strong backbone, grasp on the level of technical innovation, excellent grasp Park vector to adjust grasp and promote innovation, and achieve sound and rapid development. At present, the county a total of 145 cotton-related private enterprises, including textile enterprises above designated 126, fixed assets reached 3.0 billion, employing three thousand people, 1.3 million spindles, looms more than 6,000 units, of which more than 10000 19 cotton spinning enterprises. 2008 textile enterprises above designated the county added value of 3.32 billion yuan, up 22.7%; right above designated size reached 79% contribution to industrial growth, accounting for more than limit of the 75.7% value-added enterprises.

Of the international financial crisis broke out, county-wide textile industry rely on themselves and take the initiative to meet the challenge, the first 5 months of this year compared with last year by the end of the cotton textile industry showed signs of warming. More than the textile industry is expected to limit the first 5 months to complete the added value of 1.301 billion yuan, up 9.1%, accounting for the proportion of above-scale industrial added value up 81.1%; to achieve sales income of 3.644 billion yuan, up 27.7%; to achieve profit of 390 million yuan , an increase of 6.5%.

Overall, in recent years, county cotton textile industry, the main achievements are: First, cotton economy has become a county an important part of the county’s economy. Correct guidance provided by the Government, relying on the new leader of the drive spinning company, the county rapid expansion of cotton textile industry, cotton textile enterprises above designated size has increased to 126, spindle size to reach 1.3 million. Particular, the new textile company size to reach 50 million spindles, Chinese star textile company size to reach 80000, and another 17 the textile industry reached more than 10000. In 2008, the county’s textile enterprises above designated sales income of 12.85 billion yuan, 3.32 billion yuan in added value has become the county an important part of the county’s economy. Second, cotton economy has become a major source of revenue.

In 2008, the county’s textile industry turned over to the county’s financial income taxes accounted for about 50% of local fiscal revenue growth from 65% cotton economy, has become a major source of revenue. Third, textile employment and the urban and rural economy has become an important means of increasing peasant incomes. In 2008, the county employed in the textile industry to reach three thousand people, the county 80% of rural surplus labor in the textile industry to achieve employment. 2008 county per-capita wage of workers in the textile industry reached more than 12,000 yuan, rural per capita net income of nearly half of wage income from migrant workers has become an important means of increasing peasant incomes. Fourth, the county textile park picking up steam. County Textile Park 1-5 months of this year completed a total industrial output value of 702 million yuan, warehousing tax 17.92 million yuan, 48.45 million kwh of electricity consumption, job placement 5915 people, respectively, year on year increase of 28.6%, 28.3%, 29.6% and 24.5% textile park has become a platform for our county to attract foreign investment, industrial concentration of carriers, economic growth, a bright spot.

Second, there are major problems

First, poor corporate anti-risk ability. Cotton textile industry in our county through the carefully nurtured in recent years, has been the rapid development of the number of enterprises reached 145, and encouraged the new spinning, Hua Xing, Peng upgrade big one leading enterprises, these three companies have entered the ranks of the national medium-sized enterprises . Currently, however, county textile industry chain is short, single product structure, the majority of cotton spinning enterprise-based, and the smaller, 10000 cotton textile enterprises accounted for 87% of the following; 10000 cotton textile enterprises accounted for only over 13%, less ability to resist risks. Second, the national macro-control policies have failed to directly benefit the enterprise. Although the textile and garment export enterprises the current tax rebate rate to 16%, but the county cotton spinning enterprises are mainly domestic trade, the policy to make our county do not benefit the textile industry. In addition, “the textile industry restructuring and revitalization of planning” has been officially introduced, but the county most of the textile enterprises are small, difficult to derive benefit.

Third, product sales were severely disrupted. Although the county of textile products are mainly cotton yarn, fabric and other upstream products and downstream products but an outward-looking, and therefore under the influence of the financial crisis, the global context of a serious decline in consumer demand, a chain reaction caused by a sharp reduction in orders for county enterprise products, there excess capacity, a direct result of product backlog. Currently, most enterprise product backlog in production for more than a month.

The fourth is business more difficult. This year, three cotton in November last year, 1.08 yuan / ton now risen to 1.3 yuan / ton, recently are still rising, while the cotton yarn market was weak, difficult to effectively with the yarn price rise. To 32 ? S yarn, for example, prices in November last year to 1.7 yuan / ton now risen to 1.8 yuan / ton, cotton yarn prices and cotton prices appears inversion phenomenon, the product margins have been severely compressed, resulting in a considerable part of the Enterprise loss.

5 is the enterprise fund even more tense. Textile enterprises high demand for liquidity in the financial crisis, capital shortages business flow is particularly prominent. Due to market contraction, resulting in backlog of cotton spinning enterprise products, in order to digest inventory, enterprises were forced to sell debt, so that accounts Waiqian increase Waiqian balance recovery cycle of up to more than 3 months, affecting the enterprise’s liquidity position, increased the flow of capital tension. Yarn prices on the low side, companies reluctant sellers, resulting in flow-owned enterprises occupied. Most enterprises lack of effective collateral materials, can not use the land and plant material as a pledge from a bank loan, resulting in corporate collateral in getting loans. Another single-county financing channels for enterprises (mainly through the Agricultural Development Bank and the Credit Cooperative loans), private financing ratio is small, non-standard business flows has also caused tension in our county.

III Suggestions

At present, the financial impact of the crisis persists and grows, the county must work together to jointly cope with the crisis from top to bottom, turn pressure into motivation, turning crisis into opportunity, and strive to the financial crisis, minimize the impact on enterprises. Business development services for this county Board recommends that:

First, guide enterprises to establish confidence, actively seeking survival and development of breakthrough. At present the majority of enterprises, the confidence is more important than gold, only by adhering to survive, only the hope of development. The relevant functional departments to guide to help companies carefully analyze the economic situation and development trend of the textile industry research, fully and flexibly using a variety of favorable state policies, and actively seek solutions to problems be resolved. Enterprises should be encouraged to try not to downsizing, not lower, and do not stop production, strengthen communication with customers, in line with the principle of profit sharing to prevent the market, stability, customer confidence, hand in hand the difficulties. To build linkages between enterprises and collaboration platform, exchanging information and tide over the crisis.

The second is to guide enterprises to strengthen management, and effective to avoid market risks. Difficult times that it’s the best time to strengthen their internal management. The textile industry must integrate reality, all-round tap the potential of reducing costs, strengthening material supply management and timely adjustment of prices, efforts to reduce procurement costs. We should actively look for niche markets, speed up response capabilities, to seize the opportunity to quickly organize production. As Peng l company’s “customer first world order, the company transferred the next day technology, the third day out the product” is very worth promoting. To innovative marketing approaches and ideas to increase sales of means, such as telephone sales, Internet sales, to ensure smooth flow of business sales.

3 is a great loss to vigorously accelerate the pace of industry consolidation. In accordance with “integrated resource limitations, and lengthen the chain, upgrade standards, started the brand” Cotton cluster development ideas, to develop a timely introduction of preferential policies on enterprise integration, effectively playing the market to guide the Chief promote the “two hands” role in accelerating the cotton textile resource integration. Encouraged to guide the big one the textile industry on a voluntary basis, to form a joint group to raise industrial concentration degree and enhance their ability to withstand market risks, to promote the county overall competitiveness of textile industry cluster upgrading.

Fourth, to guide enterprises to optimize product structure, improve product grade. Face of the current economic situation, to guide enterprises to further optimize target market, product mix, speed up the pace of adjustment, vigorously develop high value-added products, green products, the product high-grade, sharp on the efforts to develop marketable products, and take winning by quality of the sound development of the road, and comprehensively improve the competitiveness of products, and strive to achieve industrial upgrading.

5 The pace of technological innovation, enhance core competitiveness. The financial crisis will bring a new round of domestic and international industrial transfer opportunity that will help county businesses to absorb the use of domestic and foreign advanced technology and management. For the advantages of enterprises, or to develop the brand, expand the industrial chain will continue to develop a good opportunity.

6 is a multi-linkage, crack corporate finance problems. Relevant departments should guide enterprises to strengthen financial fund management, careful scheduling better utilization of limited resources, speed up cash flow to ensure maximum efficiency and effectiveness of the use of funds. Further improve the guarantee system for small and medium enterprises, give full play to county central role in SME credit guarantee to give priority to absorb the big one private textile companies have joined in support of business development.

7 is to strengthen the service function, to create a good environment for development. Various functional departments should combine “corporate service” activities, increase to-business services support to do everything possible to ensure normal production of the textile industry, and steadily improving their efficiency. The light of reality, introduced conducive to enterprise development policies, the implementation of policies favoring the priority list. At the same time vigorously pursued “quiet days” system, efforts to reduce corporate interference, full support to help businesses weather the storm. To in-depth business, conduct investigations and studies to help ease the ideas to solve practical problems and improve the mental capacity of entrepreneurs to take the initiative to cope with difficult circumstances, in a crisis of survival, the survival and development.

I am an expert from China Hardware Suppliers, usually analyzes all kind of industries situation, such as nonwoven polyester , spun polyester yarn.

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