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| Issue date:01/06/2008 |
| ATA Journal for Asia on Textile & Apparel - Jun 2008 Issue |
| Source:Journal for Asia on Textile & Apparel |
| by Tiffany Zhu |
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| Textile industry is one of the established pillars of the economy of Shijiazhuang city (石家莊市), Hebei province (河北省). The textile industry of Shijiazhuang comprises fields of cotton spinning, dyeing and printing, chemical fiber producing, wool spinning, knitting, garment making and textile machinery manufacturing |
Geographically, the textile industry of Shijiazhuang is located in counties of Zhengding (正定), Jinzhou (晉州), Gaoyi (高邑) and Zhaoxian (趙縣). There are also industrial parks for the development of leather, textiles and garments, including the Xinji Leather Industrial Park (辛集皮革工業園) and the Zhuoda Garment Industrial Park (卓達服裝産業園).
The Shijiazhuang textile industry achieved an investment of RMB5.48 billion last year, up 82.73% over the previous year. Sizable textile enterprises (those with a registered capital of over RMB5 million) accomplished a total industrial output value of RMB 27.95 billion, with an industrial added value of RMB 7.51 billion. These enterprises in total earned a gross profit of RMB 1.57 billion last year.
The output of major textile products also grew steadily last year. The production of dyed or printed fabrics increased 37.29% year on year to 1,130 million meters, while that of leather garments surged 29.18% to 11.74 million pieces. The output of fabrics and chemical fiber also increased to over 1,357 million meters (+16.45%) and 29 kilotons (+5.93%) respectively.
Shijiazhuang is rapidly developing its textile and apparel industry through advanced industrial parks (pictured is Zhuoda Garment Industrial Park) |
Optimizing production with advanced machinery
According to the municipal 11th five-year plan, the textile and apparel industry was one of the five economic pillars of the city.
In a bid to further consolidate the position of the Shijiazhuang textile and apparel industry, the authorities planned to erect a 20-square-kilometer textile park in Zhengding county (正定縣) in the northern part of the city, focusing on cotton spinning and garment making.
The textile park is expected to achieve a sales income of RMB10.9 billion and a profit tax of RMB2.8 billion by 2010, representing respectively 32% and 47% of the total sales income and profit tax of all sizable textile and garment enterprises in the city. The authorities further planned that this textile park would be one of the largest textile and garment producing areas in North China. The park, when fully developed, would have an annual production capacity of 80 kilo tons of yarns, 500 million meters of fabrics and 20 million pieces of garment.
Changshan Textile (常山股份) has entered the new site for further development. The first-phase construction of the production facility started late last year, with a total investment of RMB 5.8 billion. The capacity was projected to reach 170 kilotons of yarns, 500 million meters of fabrics and 20 million pieces of garment upon the completion of the facility.
Ranking as the ninth most competitive enterprise among the top 50 cotton textile enterprises in China in 2006-2007, Changshan Textile is known in the country for the use of advanced machinery with an improved product portfolio.
Eight years after it was listed on the Shenzhen Stock Exchange in 2000, Changshan Textile recorded a jump in the total asset value rose to RMB4.2 billion, and the net asset value from RMB450 million to RMB2.2 billion last year. It enjoyed a 6.21% growth in gross profit in 2007.
The company explained that with advanced technologies in production, it was able to develop such higher-end and market-desired products as compact yarns, high-count combed yarns, functional fabrics and fashionable jacquard fabrics. In addition, Changshan Textile’s combed yarn under the brand name of Cuizhu (翠竹) was honored as a "Famous Brand in China" last year, while other high-count, high-density pure cotton gray goods were also known in Hebei province.
In recent years, Shijiazhuang formulated a new restructuring strategy for upgradation of the textile industry.
Consequently, five production plants of Changshan Textile situated in a prime location of the city moved out of Shijiazhuang city, in exchange for land outside the city and additional capital for machinery.
With a total investment of RMB5.8 billion, the upgradation plan of Changshan Textile involved a land area of 2,500 mu, which would be developed in four phases from 2007 to 2012.
The first-phase project was commenced last December and expected to complete late this year. After completion, 600 world-class airjet looms would be put into operation. Upon the full completion of the development plan, the company will be operating 800,000 spindles, over 4,000 shuttleless looms and over 2,000 circular knitting machines. An annual sales income of RMB6.5 billion is projected.
Chairman of Changshan Textile, Tang Zhangming (湯彰明), explained that the relocation of five plants was more than a physical move of the production facilities. A new management model, based on that of Hengxin Textile (恒新紡織), a subsidiary of Changshan Textile, would be adopted in the new site to improve operation efficiency and productivity.
Located in a national high-tech development zone in Shijiazhuang, Hengxin Textile was established under Changshan Textile in 2004 with an RMB860-million investment. About 40,000 spindles of imported compact spinning lines, 100,000 spindles of imported combed yarn production lines and 2,300-head China-made rotor spinning lines were initially installed. In the second phase, the enterprise purchased 320 wide-web shuttleless loom production lines by the end of 2005 to boost the annual capacity to up to 1,500 tons of compact spinning products, 9,000 tons of high-end combed yarns, 4,000 tons of OE yarns and 25 million square meters of wide-web decorative fabrics.
Hengxin Laboratory was the first private technical center among Chinese cotton textile enterprises to be nationally certified |
The sales income from shuttleless loom products currently accounts for more than 30% in the total sales income. In the first half of 2007, Hengxin Textile registered an operating income of RMB170 million and a profit of RMB15.09 million. The growth in sales income and profit continued through 2007, according to the company.
Building industry parks
In an attempt to promote the textile and garment industry, the Shijiazhuang authorities enacted "Policy on Developing Shijiazhuang Textile and Garment Industry" back in 2005. The policy stated that the city's textile and garment industry would undergo a major restructuring and optimization in the fields of cotton spinning, dyeing, printing, accessory materials and spinning machinery.
Under the policy, the garment-making sector was regarded as a highlight in the future development with the establishment of Zhuoda Garment Industrial Park (卓達服裝産業園) and Xinji Leather Garment Park (辛集皮革服裝園).
Located in Shijiazhuang High-Tech Industrial Development Zone, Zhuoda Garment Industrial Park was built in 2001. The initial phase involved an investment of RMB700 million, covering a floor area of 260,000 square meters.
What Shijiazhuang lacked was branding, the municipal Reform & Development Commission of Shijiazhuang once said, considering that the size of the entire garment industry in Shijiazhuang was yet smaller than a single enterprise in Ningbo, namely Youngor -- a Chinese brand of menswear.
The officials at the Shijiazhuang authorities thus emphasized the essence of branding in the garment-making sector. With reference to officials at the industrial park, Zhuoda Garment Industrial Park attracted 100 textile and garment production enterprises with some 60 famous enterprises within Hebei or in the country.
Ariel view of Zhuoda Garment Industrial Park (illustration) |
Enterprises in the park annually produce a total of 11 million pieces of various garment goods, achieving a sales income of RMB1.2 billion a year, including a foreign-exchange income exceeding US$60 million. The exporting destinations of these products include Japan, South Korea, North America, Europe and Australia.
Another growth area in Shijiazhuang was the leather sector in Xinji (辛集), the authorities said. The Xinji fur sector greatly contributed to the brand building activities in the Shijiazhuang city. For instance, fur coats and apparel made by three enterprises, namely Hebei Dongming Leather, Hebei Xinji Shulan Leather and Xinji Materials Development, were named "Famous Brands in China" last year.
The latest focus of development is the Xinji Leather Industrial Park. With a total investment of RMB5.2 billion in several phases, it comprises several leather industrial districts and garment production districts.
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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