“It is planned to move the company’s headquarters from Yiwu to Moyu this year.” Zhang Fangjie, general manager of Xinjiang Meixu Textile Co., Ltd., told reporters on the afternoon of the 7th.
On that day, in the Moyu County Industry-City Integration Park, on one side was the Phase I factory of Meixu Textile, with machines roaring, spinning yarns winding, and more than 1,400 employees of all ethnic groups skillfully operating various machines; on the other side, the factory area and investment had doubled times the second phase construction site. It is understood that Meixu Textile has been developing in Zhejiang for 15 years and is headquartered in Yiwu City. It is a textile industry chain enterprise integrating design, research and development, production and sales. It has its own brand and its products are exported to Europe and South America. Established 8 direct sales points in Russia, Italy, Spain and other countries.
Zhejiang Textile Enterprise Headquarters Moved to Xinjiang, What’s the Purpose?
“There are discounts for electricity and water, and relevant departments take the initiative to provide door-to-door services and help apply for loan discounts.” In 2018, Zhang Fangjie brought his company to Moyu. As his interactions with various county departments deepened, he became more familiar with the business environment here. With more and more recognition, the idea of relocating the headquarters gradually came up. “The government departments have served us, and we also want to make a more practical contribution to local development.” Zhang Fangjie said that moving the headquarters to Moyu will make a greater contribution to local industrial added value and tax revenue.
“The driving effect of leading enterprises on the industry cannot be underestimated.” Zhang Guanjun, secretary of the Moyu County Party Committee, said that on the one hand, Meixu Textile promotes the industry to extend from single spinning and weaving to the entire industrial chain of garment production and sales; on the other hand, It will drive various enterprises upstream and downstream of the industrial chain to gather and form an industrial development scale in Moyu.
Meixu Textile has made great contributions to people’s livelihood and employment. Zulia Toheti Maimeti, a female worker who is busy in the yarn wrapping workshop, told reporters that she came to work in the factory in August last year. It is close to home and has a good working and living environment. It not only has a minimum salary but also performance pay. “On the 15th of last month, I received a salary of 3,488 yuan. Now I have a fixed income every month, and my efforts have been rewarded.”
Zhang Fangjie said that the good business environment created in Hotan area to invest with confidence, operate with confidence, and focus on development has strengthened the confidence of enterprises. After the second phase of the project is fully completed and put into operation in June this year, it will produce nearly 2 million pairs of socks per day, with a total output value of 3 billion yuan, employing nearly 6,000 people, and become the enterprise with the highest annual output value in Moyu County.
There are no secrets in the manufacturing industry. What needs to be competed is cost.
In order to control costs, the central and western regions have become the choice of more and more textile companies. From January to November 2021, the growth rate of garment exports in central and western cities such as Shanxi, Ningxia, Sichuan and Tibet exceeded 100%, showing good industrial growth potential.
At present, a number of textile industrial parks have been built in the central and western regions, and their size continues to expand. Zhijing Technology (Baibu) is one of the companies that has built industrial parks in the central and western regions. Zhijing’s industrial parks focus on Sichuan and Xinjiang. Currently, it has established its first industrial park in Pingshan Economic Development Zone, Yibin, Sichuan, and in Aksu Textile Industrial City in Xinjiang has set up an entrepreneurial park.
Its advantages in labor costs, production factors and resources are important reasons for its layout in the Midwest.
Take Sichuan as an example. In Sichuan, the salary of skilled workers is around 7,000 yuan, and the monthly salary of ordinary workers is around 4,000-5,000 yuan. Although it is still relatively high compared to Southeast Asia, it has certain advantages compared with coastal areas.
In addition, the cost of production factors in the Midwest is also key. Take electricity charges as an example. The cost of electricity per kilowatt hour in coastal areas is more than 7 cents, while the electricity bill in Sichuan Industrial Park is about 3 to 4 cents. This is one of the very large asset factor costs for textile enterprises.
Based on cost advantages and support from some governments, the central and western regions are currently forming a convergence of the upstream and downstream industrial chains of the textile industry, which will also attract more companies to settle down. At the same time, if it is to serve domestic brands, Sichuan or Xinjiang have advantages in terms of transportation and proximity to the market.
There is undoubtedly potential for industry to take root and grow in the Midwest!
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