Cotton Mills Must Find A Way Out For Cotton Prices.

This year, the international market

The price difference between cotton and domestic market is constantly widening. The price of cotton yarn in Pakistan is even lower than that of cotton in China, which has caused a great impact on domestic cotton spinning enterprises.

Domestic cotton spinning enterprises not only have to bear too high raw material costs, but also bear the loss of market orders. This time, Hubei Lida Textile Co., Ltd. was not spared, and the warehouse was full of cotton yarn. The workers of Hubei Lida Textile Co., Ltd. told reporters that this situation had never happened before.

"At a critical moment, cotton spinning enterprises must find a way out for themselves." Zhang Yaohua, chairman of Hubei Lida Textile Co., Ltd., who has rich experience in cotton spinning field, hopes that enterprises never give up their lives. Even though they are facing difficulties, he is still leading the company to move forward.

Insight crisis

However, Hubei Lida textile has a natural sensitivity to cotton.

In 2011, cotton prices rose to nearly 30 thousand per tonne. At that time, Zhang Yaohua, who was engaged in the cotton textile industry for more than 20 years, felt a little "wrong". He predicted that the cotton price would go down after soaring, and decided to control cotton consumption from January to January. We should use nitrile cotton, viscose cotton, polyester cotton and blended varieties on the production lines to increase the added value of the products and defuse the risks.

"At present, the excessive price of cotton at home and abroad is a great test for cotton spinning enterprises, and our enterprises have also been greatly affected.

But we must grasp the market trend, adjust the production target, insist on achieving no stop production, no reduction in production, no arrears of wages, and workers' wages must be steadily increased, so what our enterprises can do is only that.

Zhang Yaohua said.

After this crisis, Zhang Yaohua began to consider how to avoid the severe fluctuations of cotton prices in the future. He first thought of relying on the advantages of cotton supply to build a large cotton reserve Trading Center in Central China to provide "delivery, storage and logistics" services for cotton, agricultural and sideline products in Hubei, Anhui and Jiangxi provinces.

"Under the pressure of imported cotton, the interests of China's cotton industry as a whole have been reduced, resulting in the three interests of cotton farmers, cotton merchants and textile enterprises hard to balance.

Therefore, in order to fundamentally protect the cotton industry and effectively protect the supply and demand of cotton, we must build a cotton reserve bank, because a certain amount of cotton reserves can be achieved, which can relatively suppress the price fluctuation caused by abundant or deficient cotton resources in the market.

Zhang Yaohua said.

Through the investigation, he also found that the 1 hour round trip has 5 million cotton spindles and 1500 cotton spinning and cotton factories. In addition, Hubei Lida Textile Co., Ltd. has one hundred thousand spinning scale spinning mills and two cotton processing plants in the main cotton producing area within 1 hours.

"The establishment of a cotton reserve reserve will have a positive impact on cotton growers, cotton related enterprises, and the development of cotton market and cotton industry in Huanggang and even Hubei Province, and will play a decisive role."

Zhang Yaohua is more confident about this.

In October 2011, Zhang Yaohua invested in Longxing Lake Lixing cotton storage and Transportation Co., Ltd.

As soon as the company was established, Zhang Yaohua immediately started building "100 thousand tons" in Central China.

Center "project.

"The project will bring together cotton resources and build spot cotton supermarkets to provide resource trading and resource protection for cotton farmers, ginning mills, textile mills and small and medium-sized enterprises in Longgan Lake and surrounding areas.

Its completion will inject new vitality into the development of Hubei Lida Textile Co., Ltd. and the local economy.

It is reported that Hubei province is the main cotton producing area in China, and the construction of cotton reserve storehouse in Longgan Lake area will make it easier for local cotton farmers and cotton purchasing enterprises to store cotton. This undoubtedly plays a certain role in promoting cotton growers' enthusiasm for planting cotton.

And because of the difference between the classification of the cotton grades acquired by the reserve and the capital returns, this will also promote cotton farmers' pursuit of cotton quality and indirectly increase the capacity of cotton.

Technological pformation and survival

When an eagle flies in practice, he always flies with the wind. If he is in danger, he turns his head to fly against the wind and flies higher.

In the face of market crisis, Hubei Lida textile quietly worked hard, and hoped that one day it would come up against the wind and play the role of the blue sky.

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"We should rely on ideas to solve risks, improve efficiency through management, promote development by innovation, actively carry out industrial upgrading and adjustment, increase product added value, and enhance enterprise competitiveness.

I think this is the key to the current cotton textile enterprises to resolve market risks and crises.

Zhang Yaohua told reporters that in order to enable enterprises to achieve steady and sustainable development, since 2010, Hubei Lida textile will eliminate backward production capacity and upgrade the degree of automation of equipment as the focus of enterprise technological pformation.

The process of cleaning flowers and carding has been changed into automatic cleaning steel joint. The 304 type drawing frame has been changed to the advanced D81 type, and the original 1603 type air jet spinning machine has been eliminated, and it has been replaced by the most advanced electric cleaning, semi-automatic and semi automatic spinning machine in China, and the ordinary slot machine has been upgraded to an automatic winding machine.

After upgrading the equipment, the quality of the product is effectively improved, and the net profit of varieties is also promoted accordingly.

In 2011, Hubei Lida textile factory added three automatic air spinning production lines.

In addition, 30 thousand twisters were added to extend the industrial chain.

So far, Hubei Lida textile has achieved the goal of scale of one hundred thousand ingots, and realized the competition from products that rely mainly on the comparative advantage of the labor force, and gradually turned to rely on the competitiveness of technological innovation.

When the double twisting equipment is put into operation, on the one hand, it can reduce employment, save energy and reduce consumption. On the other hand, the products produced by the company can realize the coexistence of single yarn and double yarn, extend the industrial chain, increase the added value of products, and increase the diversity of production varieties, greatly improve product profits, and lay a good foundation for further improving market share.

Zhang Yaohua said that while the company was systematically phasing out backward equipment, it also actively introduced international and domestic advanced textile machinery equipment, such as blowing carding unit, high-speed self levelling drawing frame, Japanese Murata automatic winding machine, etc. the three sub factories carried out systematic and automatic upgrading and pformation projects of production equipment in batches according to the plan, and realized the goal of product structure adjustment, quality improvement, added value of products and increased market competitiveness, so that the development of the company really entered the fast lane.

In the low tide of cotton spinning industry, Zhang Yaohua led Hubei Lida textile to carry out technological pformation drastically. Since its establishment, the company has continuously realized an annual average profit increase of 2 million 80 thousand yuan, an annual per capita income of employees increased by 1000 yuan, and the annual turnover of taxes increased by 30%.

Talent predicament

As a matter of fact, India and Pakistan's cotton yarns have great impact on China's domestic market because of their rich cotton resources and low cotton prices.

Low price allows importing cotton traders, yarn traders and fabric enterprises to give most of the orders to the two cotton yarn enterprises in India and Pakistan.

Data show that imports of cotton yarn in China, Pakistan imports grew by 58.43% over the same period, India imports grew by 138.48% over the same period, accounting for 40% and 19% of the total imports of cotton yarn in China.

"The difference between domestic and foreign cotton prices is so many tons per ton. The profits and orders of domestic cotton spinning enterprises will definitely be affected.

We have already lost the price advantage in low-end cotton products, but our yarn products are much better in quality and differentiation than imported yarn. This is one of the reasons why we can still survive even though the cost of manpower, raw materials and other costs continues to bring great pressure to businesses.

But Zhang Yaohua also said that due to historical reasons, Hubei Lida Textile Co., Ltd. did not get cotton quotas. Under the current situation, enterprises can only enhance their ability and go against the market.

To increase the added value, enterprises should first start with science and technology, increase the research and development of new products, enrich the products and improve the quality of products.

But this problem is also difficult to implement.

You know, nowadays college graduates are unwilling to work and live in small areas, and they are less willing to work in textile enterprises.

When recruiting, we can only say that the laboratory in the factory needs researchers, because the working conditions of the laboratory are good and the treatment is higher, so as to attract college students to work at the grass-roots level.

Although Zhang Yaohua has made clear the goal of improving the added value of products, the problem of talent has been plaguing enterprises.

Although there are many problems at present, Zhang Yaohua is still optimistic about China.

The future of the industry.

"From the future situation, the current difficulties are temporary.

Because China has a relatively complete industrial chain, this is one of our greatest strengths, and China is the largest cotton producing country, with a complete chain of spinning, weaving, home textile, printing and dyeing, and apparel industry, which is difficult to surpass in a short time. "