Since the beginning of this year, the upstream, midstream and downstream links of the textile industry, from raw materials, production to sales, have been having a hard time. The economic environment, industrial transformation, and comprehensive social transformation have all forced the textile industry, like other industries, to enter a period of joy and sorrow at the same time. , an era of mixed pain and itch. Not only small and medium-sized enterprises are encountering difficulties, but also some industry leading companies are worried about loss-making industries!
Sanfang Lane: Plans to sell printing and dyeing workshop-related assets for 20.5 million yuan
No longer in the printing and dyeing business!
The polyester giant announced its transformation: the printing and dyeing business will cease! Sanfangxiang, a leading polyester company in Jiangsu Province, announced on the evening of July 6 that based on the company’s business development plan and actual production and operation conditions, it will further optimize the industrial layout and concentrate resources on the development of new polyester material industries. The company has decided to transfer the relevant assets of the printing and dyeing workshop to sell.
The announcement stated that the company plans to sell the relevant assets of the printing and dyeing workshop to Zhejiang Dongxiang Industrial Co., Ltd., with the transaction price being 20.5 million yuan. After the sale of assets, the company will no longer engage in printing and dyeing business and focus its resources on the development of new polyester material business. At the same time, the company’s printing and dyeing workshop has stopped production and related equipment is idle. The sale of assets will not have a significant impact on the company’s normal production and operations. The subject matter of this transaction is the fixed assets such as machinery, equipment and vehicles in the company’s printing and dyeing workshop. The machinery and equipment mainly include stenter and setting machines, deboiling and bleaching combined machines, reduction soaping machines, hot-melt dyeing machines, pre-shrinking machines, high-speed mercerizing machines, Singeing machine, etc.
The company’s printing and dyeing workshop is currently in a state of suspension due to poor operating efficiency. For relevant information, please refer to the “Announcement of Jiangsu Sanfangxiang Jucai Co., Ltd. on the suspension of production of the company’s printing and dyeing production workshop” disclosed by the company on March 29, 2022.
Data show that from January to December 2021, Sanfangxiang’s operating income composition is as follows: the chemical industry accounts for 94.07%, other industries account for 3.2%, the textile industry accounts for 1.58%, and thermoelectricity accounts for 1.15%.
Printing and dyeing, once the most profitable textile industry, has now become an “abandoned child”, which is really helpless. It is really sad that such an industry giant will transform at the word of transformation! However, looking back at the status and development history of domestic textile printing and dyeing, it can be seen that in recent years, the textile and garment industry has developed rapidly and has strong demand. The industry is very fragmented, with widespread overcapacity in mid- and low-end production, environmental pollution and energy consumption problems are serious, and mid- and high-end products Insufficient supply. Printing and dyeing, as a traditional industry with high pollution and high energy consumption, is facing supply-side reform. Environmental standards and costs have increased, and small and medium-sized production capacity that does not meet standards has begun to shrink.
In addition, the profitability of the industry is poor under fierce competition. The demand for textile printing and dyeing has gradually weakened over the past 20 years. The rising costs of labor, land, etc., as well as the rising prices of coal, dyes, etc. have also caused the living space of some small and medium-sized enterprises to be squeezed.
How bad is the printing and dyeing market this year?
The current situation of a printing and dyeing factory in Shaoxing: stabilizing employees and shouldering social responsibilities
Keqiao District, Shaoxing City, Zhejiang Province is an important textile raw material industry cluster in China and even the world. Here, printing and dyeing companies are troubled by rising costs, insufficient orders, and insufficient production. Reducing costs and finding orders have become top priorities.
Shaoxing Bailiheng Printing and Dyeing Co., Ltd. revealed that this year’s foreign trade has been affected by the epidemic, and the market has been average. “It is not difficult to book shipping space at present, but shipping costs are high. Moreover, the cost of raw materials is high, and the price of natural gas has also increased, and the company is losing money every month. Now it’s ‘ There are less cakes, but there are many textile printing and dyeing factories that share the cakes, and some textile factories have to close their workshops.”
Another Keqiao printing and dyeing company, which declined to be named, revealed that due to the epidemic, the company’s foreign trade market this year is not good. In addition, the price of raw materials has increased sharply, and the purchasing power of foreign consumers is currently limited, which has affected the company’s foreign trade orders. “Because the textile industry uses a lot of petroleum products, when the price of petroleum increases, the price of textile raw materials will also increase. It is not easy for our company to maintain an operating rate of about 70%. We maintain basic operations at a loss every day. We hope to survive this period. time, stabilize employees, and shoulder social responsibilities.” said a staff member of the printing and dyeing company.
The textile printing and dyeing industry has now reached a crossroads of hesitation and anxiety, but difficulties and opportunities coexist. Perhaps only by actively breaking through and accelerating transformation can we adapt to the market rules of “survival of the fittest”.
With the economic downturn and market saturation in recent years, competition has become increasingly fierce, because the textile industry has obviously reached a hesitant and anxious crossroads, requiring qualitative breakthroughs and looking forward to rapid comprehensive transformation. However, in this era when technology, culture, and economy are facing complex transformations in all aspects, the safe transformation expected by an industry is obviously not easy.
In the current textile printing and dyeing market, difficulties and opportunities coexist, and itches and pains coexist. This year’s off-season will be more difficult than in previous years, and textile printing and dyeing people need to be mentally prepared in advance!
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