Wujiang Textile Industry To Achieve V Shape Reversal Can Finally Relax.

Wujiang, a textile industry as a pillar industry.

As the national textile heavy land and the largest chemical fiber fabric gathering area in the country, Wujiang, located in southern Suzhou, has more than 5000 textile and weaving enterprises, with an annual spinning capacity of nearly 5 million tons, annual weaving capacity of 20 billion meters, dyeing and finishing capacity of 5 billion meters, and 20 national textile development bases.

It is such a region that depends on the textile industry and gathers small and medium-sized enterprises. It has gone through a period of rising labor costs, excess capacity, loss of orders, and low profit margins. In the passive and active pformation, it gradually emerged from the "mire" and started a positive upward trend.

This is a pformation sample of traditional textile industry. It is not a plentiful reality, but also has the vitality and light of regional and enterprise pformation.

Wujiang's Shengze town is the largest textile production base in China, and it is a national silk spark intensive area.

Local chemical fiber production accounts for 1/10 of the country.

In late October, 2016 Wujiang high tech Zone (Sheng Zezhen) textile industry pformation and upgrading Shanghai briefing, Shengze town Party committee deputy secretary Zhao Juguan told reporters that the local

The pformation began in 2014.

At that time, there were obvious overcapacity in the textile towns that experienced a lot of investment.

"Originally, there were nearly 140 thousand looms in the whole town, which were actually producing low-grade products. The price itself was only 1~2 yuan / m, and there was about 10% profit in the past, but there was no profit or even negative profits since the year before last."

Zhao Juguan told reporters that many orders began to flow to cheaper places such as Southeast Asia and Africa.

In this new situation,

The town government is determined to start pformation.

"No pformation."

Zhao Ju Guan said, "the town government began asking enterprises to produce fabrics of at least 5 yuan in price and one meter in diameter, and encouraged enterprises to eliminate backward production capacity through a series of incentives to pform and upgrade products with higher added value."

Zhao Juguan said that after more than 2 years of efforts, the profit margins of local textile enterprises have changed significantly.

He provided the data to the first financial reporter: "in the first half of this year, the average profit rate of our enterprises above the industrial scale reached 18%.

This is just an average figure.

Some enterprises have already produced cloth of 50 yuan per meter, and the added value is even higher.

Earlier official data showed that in November of 2015, the profits of Enterprises above Designated Size in Shengze increased by 113.9% compared with the same period last year. The tax revenue of key enterprises increased by 20.52% yuan over the same period of 1 million yuan, and industrial electricity consumption increased by 3.2% over the same period last year.

Hengli Group is the largest enterprise in Shengze town and the largest weaving enterprise in the world.

Guo Yujun, assistant general manager of the company, told reporters that the gross profit of the company's textile products has reached 26%.

and

The main reason for the increase is "mass production according to the customized method and the guidance of new products and the change of raw materials".

According to Guo Yujun, the company now has more than 500 new products on the market.

This was followed by an increase in Shengze's financial strength. The town's total fiscal revenue reached 2 billion 973 million yuan in the first half of this year, an increase of 22.09% over the same period last year.

After experiencing the rising cost of human resources, excess capacity, loss of orders and low profit margins, Wujiang is groping for a passive and active pformation.

In less than 3 years, local enterprises turned over from negative profits to 18%.

"From the end of last year, our textile industry has begun to pick up, and this year it has been fully improved."

At the 2016 China Wujiang investment and Trade Fair in October, Wu Qi told reporters.

He skillfully quoted several data: "this year, Wujiang's general public budget revenue grew by more than 13%, and the tax ratio (tax revenue accounted for the proportion of the general public budget revenue) exceeded 90%, the best in nearly 5 years.

In the past two years, the amount of tax paid by leading enterprises has risen sharply, and the fundamentals of enterprises are very good, and the growth is relatively healthy.

Tax ratio is an index used to evaluate the quality of economic development.

The higher the tax ratio indicates that the government's money comes from the economic behavior of enterprises and individuals, which can prove the vitality and competitiveness of growth.