Excessive Domestic And Foreign Cotton Prices, Shandong Textile Enterprises Are Forced To Pfer Overseas.

Now domestic cotton prices are above 20 thousand yuan / ton, which is 5000 yuan / ton higher than the foreign market.

The competitiveness of enterprises has been greatly reduced and the trend has shifted to low cost regions such as Southeast Asia and Africa.

"The pattern of global textile industry is changing, and orders in Southeast Asia are increasing. Our orders are losing.

Our company is also considering setting up a new production base in Southeast Asia. "

On the 22 day, the leader of Tian Fang, a cotton textile enterprise in Dezhou, Shandong, told the Economic Herald reporter.

The reporter noted that since September, at least 6 textile enterprises in Shandong have submitted applications for overseas investment to the Provincial Department of Commerce.

Shandong textile industry association president Xia Zhilin guide newspaper reporter analysis, Shandong province textile enterprises to overseas pfer, not only for Southeast Asia low cost area, but also for developed countries, this is facing the domestic labor cost rise, high cotton prices and other problems of pformation and upgrading.

6 companies apply for overseas investment

According to the disclosure of the Shandong Provincial Department of Commerce, an application for "Weifang Hua Ting printing and dyeing weaving Co., Ltd. applied for the establishment of sunshine Zone International Logistics Co., Ltd. in Uganda" has been submitted to the head of the relevant department of the hall a few days ago.

A reporter from the Weifang Yingtang printing and dyeing weaving Co., Ltd., Qi Yingli guide, explained that a considerable proportion of the products in Hua Ting printing and dyeing weaving were sold to Africa.

Prior to this, Hua Ting printing and dyeing weaving has set up a textile enterprise in Uganda, and has set up sales outlets in Tanzania, Kenya and Rwanda.

The sunshine belt International Logistics Co., Ltd. is a main container shipping company, which will provide a lot of convenience for the company's freight pportation in the future.

The application of Hua Ting printing and weaving weaving in Africa is still under way. The application of Shandong Dai Yin Textile Group to set up Burma Dai Yin Textile Co., Ltd. has already completed the application.

The reporter learned that the Shandong Dai Yin Textile Group has been set up in Sri Lanka.

The company's entry into Burma will make it another city in Southeast Asia.

In addition to Huateng printing and weaving and Shandong Dai Yin Textile Group, from September to now, the textile enterprises of overseas investment projects disclosed by Shandong Provincial Department of Commerce include Shandong Tianyan dress Limited by Share Ltd, Zhucheng Li Feng Garment Co., Ltd., Weihai Textile Group Import and export limited liability company, Shandong Gaotang run home Textile Co., Ltd., respectively, in the United States, Kampuchea, Bangladesh and Japan.

Transformation and upgrading

As for textile enterprises' investment in overseas projects, Xia Zhilin regards it as a pformation and upgrading of Shandong textile enterprises.

"At present, domestic textile enterprises are faced with problems such as rising labor costs and excessive price spread of cotton at home and abroad."

Xia Zhilin analysis, this is part of the enterprise to Southeast Asia, Africa pfer capacity reasons.

In addition, a number of enterprises have begun investing in developed markets such as the United States and Japan. "Investing in these areas can make better use of their new and high technology, design resources, etc., which is conducive to spreading the sales channels of the company, and is a beneficial move for the domestic textile enterprises to open up the market."

The above Shandong Dezhou cotton textile enterprise Tianren leader guide newspaper reporter said, recently the domestic textile enterprises pfer overseas capacity is mainly driven by domestic and foreign cotton price difference.

"At present, domestic cotton prices are above 20 thousand yuan / ton, which is 5000 yuan / ton higher than that in foreign markets, and thus the competitiveness of domestic textile enterprises has been greatly reduced and pferred to low-cost regions such as Southeast Asia and Africa."

The above Shandong Dezhou cotton textile enterprise Tian surname leader also expressed the worry to the domestic cotton industry's future.

"By restricting imports and raising the prices of storage and storage, the interests of domestic cotton farmers are guaranteed.

However, high cotton prices will pfer the capacity of domestic textile enterprises to foreign countries, which will reduce the demand of domestic textile enterprises for domestic cotton and will eventually have adverse effects on the interests of domestic cotton farmers.

As a corroboration of this concern, data from the General Administration of Customs show that in October of this year, China has accumulated

1 million 213 thousand tons of cotton yarn, an increase of 70.01% over the same period, and a total of 356 thousand tons of cotton yarn exported, an increase of 7.46% over the same period last year.

"This shows that domestic textile enterprises are more and more inclined to buy Yarn directly from abroad instead of spinning with high price domestic cotton."

The above Dezhou cotton spinning enterprise official surnamed Tian said.