Orders To Reduce Inventory Increase, How Fujian Cotton Textile Enterprises Have Experienced The Spanformation Pains?

It has been said that textile making hundreds of millions of cluster industries in Fujian is not worth a fuss, because after the reform and opening up, Fujian's private economy started from textile and clothing. From the original "three to one patch, pre shop and factory" to the formation of a modern industrial cluster, Fujian is writing a section of textile legend with gorgeous figures.

Specifically to the cotton spinning industry, the Fujian area is an indispensable part of China's cotton textile map. For a long time, the development of Fujian's yarn industry has never stopped. According to the data released by the National Bureau of statistics, in 2018 1~12, China's yarn production was 29 million 760 thousand tons, of which Fujian yarn production exceeded Shandong and Henan, ranking the first in terms of 5 million 692 thousand and 100 tons of data in the whole year. In 2017, Fujian's yarn production also ranked third after Shandong and Henan.

The growth of industry data is inseparable from the progress and development of local enterprises. However, in the context of the current fall in cotton prices and the complex international environment, the domestic cotton textile industry is experiencing pains, and the Fujian cotton textile industry has not been spared. Facing the internal and external shocks, what is the future of Fujian cotton spinning industry? How should cotton spinning enterprises break out of the market encirclement?

Cotton prices fall

Fujian cotton enterprises inventory pressure

In recent years, the cotton spinning industry in Fujian has developed rapidly. Data show that the annual cotton consumption in Fujian increased from 4.5 million tons a few years ago to about 1000000 tons, while the layout of the local cotton textile industry chain is also improving.

According to the statistics of Fujian Textile Association, the cotton spinning spindles in this province have exceeded 13 million ingots, ranking sixth in the country. Among them, there are about 8000000 ingots in Fuzhou (about 7000000 in Changle), about 1000000 ingots in Quanzhou, about 2000000 ingots in Sanming, and about 1500000 ingots in Putian, Longyan, Nanping and Zhangzhou. Cotton, cotton blended, chemical fiber blended yarn has been developed into the characteristics of Fujian yarn products. The development of non cotton yarn and fabric has been accelerated. The production of polyester, viscose and synthetic fiber blended yarn is the first place in China. In 2018, the actual output of cotton yarn in the province was 5 million 692 thousand and 100 tons, of which 853 thousand and 500 tons of pure cotton yarn, 2 million 447 thousand and 600 tons of cotton blended yarn and 2 million 391 thousand tons of chemical fiber yarn. Fujian province cotton spinning yarn is mainly sold to Guangdong, Zhejiang, Jiangsu and Fujian's professional market.

Although the momentum of development is very rapid, the Fujian region has its own disadvantages compared with other large domestic textile provinces. Industry experts believe that Fujian textile industry mainly has the following problems: first, the lack of labor force in enterprises, part of the cotton spinning enterprises are short of employment, facing difficulties in recruitment; two, the lack of funds for technological spanformation of enterprises, and the slow progress of spanformation and upgrading of enterprises; three, the lack of independent development capability of enterprises, the shortage of talent, the lack of product structure, the lack of downstream terminal brands, and the fierce homogenization of competition; four, the cotton textile industry mainly consists of four categories: Polyester / cotton, polyester / viscose, pure polyester and pure sticky, and pure cotton products are few, other fiber blended varieties are less, and most of them are 21 ~60 branches, and 60 or more high count yarns are less.

In addition, it is understood by reporters that Fujian cotton textile enterprises are characterized by the fact that both raw materials and products are outside, compared with enterprises built with raw materials, they do not have the advantages of procurement cost; compared with those close to the consumer market, the sales strength is relatively weak, and enterprises can only work hard in the processing process and product quality. For example, at present, the spanportation cost of Xinjiang cotton to Fujian is 700 yuan / ton (excluding freight subsidy of 500 yuan per ton), and the normal situation is 800 yuan / ton. The shipment to Henan is basically 600 yuan / ton, reaching 1400 yuan / ton ~1500 yuan / ton in the peak period of 11 month.

Under the background of falling cotton prices and weak market demand, Fujian cotton textile enterprises are also facing difficulties in operation. The head of the purchasing department of a Yongan enterprise in Fujian said that the production scale of the cotton spinning enterprises in this area was mainly 50 thousand spindles ~10 spindles. The normal turnover of cotton yarn was generally about 7 days, but this year it was difficult to sell from April. The inventory is now about 20 days, obviously higher.

"Some local enterprises have reduced the price of blended yarn to 1000 yuan / ton ~2000 yuan / ton deficit for capital turnover. Even if losses are running, enterprises can't stop work easily. A company official told reporters that compared to the mainland textile enterprises concentrated in the county level, Yongan employees basically rely on work to maintain their living, once shut down, the difficulty of re opening will be much higher than Shandong, Henan, Jiangsu and other textile provinces.

It is understood that in this round of cotton prices plunging process, Fujian textile enterprises bear greater pressure. Enterprises in Henan, Shandong and other places can reduce the turnover period of raw materials to 7~10 days. However, Fujian textile enterprises produce polyester cotton blended products, plus cotton blending and spanportation distance. Stock is usually in 2~3 months, even if the stocks are few, the enterprises will remain in 1~2 months. It is conceivable that both of them will bear great pressure in the process of cotton price dropping and product accumulation.

Through labor pains

Transformation and upgrading to break the market encirclement

In the face of complex and changeable market environment, SMEs are often more vulnerable, and for strong textile enterprises, the spanformation of labor pains can enhance the ability to resist risks and break the market encirclement.

In fact, cotton spinning enterprises in Fujian province have been actively planning spanformation and upgrading and putting them into practice in the past two years. Enterprises should either increase their product development or take a differentiated market path, or make technological improvements toward intelligent factories, or invest in factories and expand their scale to enhance their profitability. The new Huayuan Group in Changle, Fujian, is the first one to stabilize the market by continuously developing new products.

According to the reporter, in 2018, new China Huayuan Group jointly launched the company's Sadaer products, which were approved by the downstream fabric enterprises, and led the new trend of the yarn market. Chen Zongli, chairman of the new Huayuan Group, said: "the characteristics of market demand for product differentiation and individuation are very clear. In such a market environment, many enterprises must consider how to make corresponding product innovation." At present, 100%Sadaer cellulose fiber has mass production of 50 to 120 Siro compact spinning lines, with stable indicators, distinctive yarn characteristics, comparable to all kinds of high-end differential products, and has the reputation of imitation Tencel in the market, and is well received by customers.

Coincidentally, as a high-tech textile enterprise producing high-end environment-friendly yarns, Fujian Huajin Textile Co., Ltd. of Yongtai County specializes in special products. The company mainly produces 32S to 100S cotton yarn, Tencel yarn, bamboo fiber yarn, pearl fiber, cotton single spinning and blended high-end environmental protection and health yarn, its "Hua Jue" yarn has won the famous trademark of Fujian province.

Facing the current fierce market competition, Chen Yihua, chairman of the company, thinks that it is very important to deepen the brand positioning and develop characteristic products. "The whole industry is changing now. It's not just a partial adjustment, but the whole business model is changing. The past mass production mode has been unable to adapt to the market development at this stage. We must follow the pattern of differentiation and customization, develop characteristic products that meet the needs of the enterprise and market demand, further increase the intensity of product research and development, speed up the development of new products, introduce advanced machinery and equipment at home and abroad, and carry out research and development of new products to the end." Chen Yihua said.

Lesel Changyuan Textile Co., Ltd., located in Changle, launched the new series of knitted yarn products of Fujian environmental protection series at the end of last year. The company's chief quality officer, Dai Yueping, said that the Lesel fiber itself has good mechanical properties and hygroscopic properties. The Changyuan textile Lesel environmental protection series needle yarn and its fabric made by weaving and dyeing process have both the comfort of cotton, the strength of polyester, the luxurious beauty of woolen fabrics and the fine quality of high-grade silk fabrics. At present, the scale of long spinning is 600 thousand spindles, more than 7000 tons per month, and the degree of automation is high.

Opportunities ahead

Be bigger and stronger and stick to the bottom line of quality

In recent years, Fujian has vigorously promoted industrial development in the region by supporting industrial support policies such as machine substitution. According to Chen Chun, director of Fuzhou textile engineering society, at present, Fujian province has more than 13 million spindles for cotton spinning spindles, and Changle accounts for more than 50% of key industrial clusters. Take Changle as an example, enterprises attach great importance to technological spanformation, and many excellent equipment technologies have been applied. The production efficiency, unit labor and product quality have been greatly improved. At present, the average number of employees is about 40, which has greatly improved the competitiveness of enterprises.

Regarding the spanformation and upgrading of Fujian's cotton spinning industry, Ye Jianchun, vice president of China's cotton textile industry, proposed several measures:

First, the development direction of production automation and continuity. The combination of high technology and traditional spinning and weaving technology has become the consensus of the industry. It combines closely the key technologies and production with high production speed and high speed, improves labor productivity and solves the problem of labor difficulty.

The two is the development of online automatic monitoring and detection. The key spinning equipment can realize on-line monitoring of the main process parameters and production data of a single machine, and it is also more convenient in the mediation of equipment parameters, so as to realize man-machine conversation.

The three is the development of applied new spinning technology. We should speed up the application and popularization of new spinning methods, and constantly innovate the spinning process detection and control technology, such as the popularization of compact spinning, air jet vortex spinning and automatic rotor spinning technology. Besides, flower yarn, Takesetsu Sa, core spun yarn, wrapped yarn and siro spinning can produce high grade textiles and increase the added value.

The four is the application of non cotton fiber innovative product structure. Colored fibers, cotton, wool, hemp, silk and other fibers use different components (more than two kinds of fibers) blended yarn, with different appearance and wear effect, so that ordinary raw materials in the original state has extremely high added value, after processing can be sold in the market.

In any case, in the face of complex and changeable market environment, what enterprises can do is strong power. Even after the spanformation of labor pains, we must stick to the bottom line of quality. Only in this way can the cotton spinning industry become stable and not afraid of external risks and changes.