Chongqing: 90% of Silk Enterprises Under Production, Sales, and Sales Lose Money

At the end of the year and the beginning of the year, the silk enterprises in Chongqing made an account: More than 90% of the companies claimed losses. Chongqing Foreign Economic Relations and Trade Commission yesterday said that at present, Chongqing silk enterprises have dropped from more than 70 in 2008 to 21 now. Under such circumstances, many companies have begun to seek breakthroughs in transformation, and through the simultaneous efforts of domestic and foreign markets, and from upstream to downstream of the industry, they have changed the past purely production-oriented business model and gradually moved toward the branded development of weaving and finished products.

Current situation: 90% of the companies are at a loss. "Only half of the production capacity was started last year." Yesterday, Zhou Hyunji, chairman of Junan Xianxi Silk Co., Ltd. inventoryed the past year's accounts: South Korea, 5 orders; Europe and the United States market, a total of 7 orders There are only 12 businesses throughout the year. In addition to shrinking business volume, he also clearly felt that in the past, large quantities of orders had been reduced, and overseas orders for small quantities had increased significantly. "The previous purchase volume increased by 30% on the basis of demand. Last year's purchase volume was mainly based on small-batch orders, and it was strongly supported."

“We are still quite good. Some of our colleagues simply stopped work.” He sighed with a wry smile.

According to a statistical data of the Chongqing Silk Industry Association, raw silk production was 1,591 tons from January to November 2011, a year-on-year decrease of 24.45%; real silk production was 2,246,600 meters, a year-on-year decrease of 43.73%; silk fabrics decreased by 14.55% year-on-year; production of silk It was 5,923, which was a significant drop from the same period in 2010. At the same time, the number of silk companies has also dropped significantly. Before the outbreak of the financial crisis in 2008, there were more than 70 silk companies in Chongqing; after this phase of elimination, there were about 40 left. By the end of last year, it had been reduced to 31, and only 21 companies were in operation, and surviving companies. The situation is also not optimistic. Over 90% of the companies are at a loss.

Reason: Price and cost "rear-end"

“The current situation may be worse than when the financial crisis occurred in 2008.” Wang Xiaohui, president of the Chongqing Silk Industry Association, said that in 2011, under the backdrop of the weak international consumer market, raw material prices fluctuate drastically, coupled with rising labor costs. The vast majority of silk companies in the low-value-added segment of the industrial chain are out of breath. Some small enterprises with insufficient capital strength have closed down and stopped production. Some large-scale enterprises are also struggling between low profit and no profit.

Zhang Yongchun, head of Hechuan District Yonghua Silk Co., Ltd., calculated an account with the reporter. The price of cocoon rose from 1,200 yuan/ton at the beginning of last year to nearly 1,600 yuan/ton, and the finished product was manufactured. The price was 330,000 yuan/ton at the beginning of last year, and it had sold as high as 410,000 yuan/ton in July last year, and it has now fallen back to 250,000 yuan/ton. "Raw materials are erratic, like roller coasters, which have a considerable impact on the business."

In an interview, the reporter learned that due to the high price of silk, the price of silk was high, which affected the price of the finished product, which in turn led to a decrease in orders. This in turn affected the enthusiasm of the terminal to purchase raw silk, which in turn affected silk prices. Has become the current vicious circle of silk companies.

In addition, rising labor costs have also made many companies on the edge of meager profits overwhelmed. “Before 2011, the wage cost of a front-line worker is usually between 1,200 and 1,500 yuan per month, rising to 1,500 to 1,800 yuan per month last year. Together with **, only the labor cost will increase by 30%.” Indicated.

Wang Xiaohui stated that due to the low degree of automation and aging of equipment, local companies have been mainly processing semi-finished products for many years. A few companies have involved downstream end products, but have remained in cotton quilts, pajamas and other products, and lack innovation. This is also currently in Chongqing. One of the reasons for the downturn in the silk industry.

In-depth news: Extension of the industrial chain response to support policies will be issued by the Deputy Director of the Foreign Economic and Trade Commission. Anybody thinks that competition in the industry from neighboring countries is increasing day by day, coupled with the pressure of *** appreciation, the comparative advantage of the city's silk export prices is being With weakening, it is no longer possible for silk companies to rely on primary products to win markets at low prices.

“We intend to gradually change the business model of simple production and gradually shift to R&D and design.” Ren Zhiqiang, chairman of Chongqing Hongmeida Xinxing Industry (Group) Co., Ltd., said that he has already “borrowed his brain” with the Japanese design team. “ The value of high value-added silk products is as high as 200%.”

Chongqing Weilan Silk Co., Ltd. told reporters that the company has now developed a direct dehydration, can not afford the ball of the product, has applied for a patent, intends to enter the high-end markets in Europe and America.

According to reports, in order to help the development of the silk industry, the current “Opinions on Promoting the Development of Chongqing’s Modern Silkworm Industry” is being discussed. By then, it will support the city’s silkworm layout, science and technology industry, investment environment, etc. This year, the city’s financial investment in the silk industry will increase nearly threefold to more than 40 million yuan.