Recently, spinning processing profits have been relatively good, yarn prices at home and abroad have been rising steadily, and most spinning companies are optimistic about future demand. Against this background, leading companies have accelerated the pace of production capacity expansion, invested in building factories, and improved the industrial chain.
Tinhong Textile builds 300,000 spindles cotton spinning production line
On August 6, Xuzhou Tianhong High-end Textile The signing ceremony for the fabric R&D and production project was held in Suining County, Xuzhou City, Jiangsu Province. Hong Tianzhu, chairman of the board of directors of Tianhong Textile Group, said that the project will further improve the vertical integration of the light textile industry chain based on Tianhong’s existing industries, with the goal of building an intelligent industrial chain, deepen the construction of industrial intelligence, and achieve interconnection of the industrial chain. .
It is understood that Xuzhou Tianhong’s high-end textile fabrics R&D and production project has a total investment of approximately 10.5 billion yuan, building 1.2 million square meters of various high-standard factories, 300,000 square meters of supporting ancillary and functional facilities, and 300,000 new Spindle cotton spinning production lines, 50 knitting dyeing production lines, 25 woven dyeing production lines, 30 loose fiber dyeing production lines, purchasing 10,000 looms and 200 eddy current textile machines. The project is expected to be completed and put into production in 2025. It is expected to be achieved Sales revenue is 15 billion yuan, with profits and taxes of 900 million yuan.
Since the second half of last year, Tianhong Textile has performed well. As of May 31, 2021, Tianhong Textile’s net profit after tax this year exceeded 1 billion yuan. Regarding the reasons for the changes in the company’s performance during the reporting period, Tianhong Textile explained that it was mainly due to the continued recovery of textile market demand and product gross profit margin since the fourth quarter of 2020, coupled with the increase in raw material prices, so the average product selling price increased accordingly, compared with the previous Due to the lower cost of raw materials purchased or ordered over several months.
Industry insiders judge that in the short term, the domestic epidemic situation will gradually be controlled, foreign orders will be transferred to the country, the textile and clothing industry will usher in the peak sales season, and market demand will continue to be released. Judging from the layout of Tianhong Textile’s downstream business , it is expected that its long-term integrated layout will improve stability, and the downstream business is expected to continue its performance in the second half of 2020.
In terms of yarn business, industry insiders said that Tianhong Textile’s yarn business demand has fully recovered to pre-epidemic levels, although the gross profit margin will gradually return to normal levels in the second half of this year after the advantage of low-price inventory disappears. , but it is expected that with the gradual recovery of demand, the 840,000 tons sales plan formulated by Tianhong Textile at the beginning of the year has a high probability of being realized. Therefore, after the high gross profit margin advantage in the first half of the year has passed, Tianhong Textile’s yarn business is still expected to maintain its performance in the second half of the year. Steady growth.
Fuchun Dyeing and Weaving invested in a 500,000-spindle precision spinning project
On August 4, Wuhu Fuchun Dyeing and Weaving Co., Ltd. (hereinafter referred to as “Fuchun Dyeing and Weaving”) released its first semi-annual report after listing. Benefiting from the strong demand from downstream sock companies, the company achieved operating income of 925 million yuan from January to June, a year-on-year increase of 56.48%; and net profit of 103 million to 106 million yuan, a year-on-year increase of 318.87%. While its performance is growing, Fuchun Dyeing and Weaving has taken advantage of the trend and launched a 2 billion yuan investment plan to build an intelligent precision spinning project with a scale of 500,000 spindles to expand into the upstream spinning industry.
It is understood that the cheese yarn produced by Fuchun Dyeing and Weaving is mainly used for socks, T-shirts and other products. The industry prosperity and development prospects of the sock industry will directly reflect the cheese yarn production of the company. Line printing and dyeing field. The relevant person in charge of the company said: “As an upstream cotton yarn supplier for sock-making enterprises, Fuchun Dyeing and Weaving has broad development prospects. On the one hand, China’s sock-making industry has formed a dominant position in the international market and has become the world’s largest sock exporter. On the other hand, the increase in consumption power of domestic consumers has changed many dressing habits in the past, and socks will inevitably become the largest consumable in the clothing field. Most of the products of domestic yarn companies are mainly high-count yarns, and Fuchun Dyeing and Weaving can Make it 80 or even 100 or 120.”
For some time, domestic cotton prices have been rising. The person in charge said: “Affected by the rise in cotton prices, the price of cotton yarn has been rising in the first half of the year. It can be said that it is hard to find a yarn now. The reason for this situation is the rapid development of the epidemic abroad. Mainly countries such as India and Vietnam are affected by the epidemic and their local production capacity cannot be opened, resulting in a shortage of cotton yarn.” According to his introduction, Fuchun Dyeing and Weaving purchases a large amount of cotton yarn from Pakistan, India, Vietnam, Indonesia and other countries.
According to industry practice, the production and operation of enterprises must ensure a certain inventory of raw materials. Taking Fuchun Dyeing and Weaving as an example, in years with normal market conditions, the company needs to maintain raw material inventory for one to one and a half months. “Cotton yarn is in particularly tight demand this year. Since the second half of last year, our monthly production of colored yarn has reached 5,400 tons, which requires 8,000 tons of raw material inventory. Without this inventory, production cannot remain stable. At the end of June, our inventory was only 3,000 tons. If it’s more than a ton, it’s close to about 60% of the normal monthly output.” said the person in charge.
Based on its own operating conditions and industry development, Fuchun Dyeing and Weaving began planning to launch an intelligent precision spinning project two months after its listing to enter the upstream yarn industry. The intelligent precision spinning production project with a total investment of 2 billion yuan has a construction scale of 500,000 spindles and will be constructed in two phases. The investment in the first phase is about 1 billion yuan, and the project construction period is expected to be 36 months. The person in charge of the company said: “After the completion of this project, the strength, abrasion resistance, gloss and drape of the product will be very good, making it an ideal yarn for the production of high-end fabrics. In addition, our upstream raw materialsThe supply of high-grade yarn made of high-quality raw materials is guaranteed, and the cost can also be effectively reduced. ”
Blum Oriental expands 390,000 spindles of yarn project in Vietnam
In addition to investing in and building factories domestically, China’s textile companies are also actively accelerating the pace of overseas expansion. In early July, Blum Oriental Co., Ltd. (hereinafter referred to as “Blum Oriental”) announced that the company planned to raise no more than 1 billion in additional capital. Yuan, used for Blum (Vietnam)’s 390,000-spindle yarn expansion project. Blum (Vietnam)’s 390,000-spindle yarn expansion project has a total investment of US$250 million. It is located in Fudong Industrial Park, Xining City, Vietnam, and the implementation entity is wholly owned by the company. Subsidiary Bailon (Vietnam) Co., Ltd.
Industry insiders analyze that colored spinning, as an emerging branch industry in the textile industry, represents the development trend of yarn production. With the industry’s environmental protection standards and technical level The continuous improvement of individual needs, as well as the increase of residents’ disposable income and the continuous upgrading of consumption, have put forward higher requirements for the design and development of textiles. The future market demand of the colored spinning industry will increase significantly, and it has broad market prospects. . As a leading enterprise in color spinning, Blum Oriental’s overseas expansion projects can enhance the company’s production capacity and meet future market growth needs.
Blum Oriental said that Vietnam is the only country in the “One Belt, One Road” construction Countries connected to China by sea and land have significant geographical advantages. As one of the important members of ASEAN, it enjoys various trade policy preferences inside and outside ASEAN, has signed free trade agreements with Japan, South Korea, the European Union and other countries and regions, and has introduced a number of attractive policies. Preferential policies for foreign investment, with good export-oriented economic characteristics, have attracted brand companies to transfer orders to Vietnam. Coupled with its relatively low labor costs, the cost advantage for labor-intensive companies has become prominent. In recent years, it has become an overseas choice for domestic companies. One of the important destinations for investment.
In overseas investment, opportunities and risks coexist. Blum Oriental said that due to the epidemic, Vietnam will implement the second round of 14-day quarantine starting from 0:00 on August 2 Maintain social distance measures. As a result, Blum Oriental’s wholly-owned subsidiary Blum (Vietnam) Co., Ltd. located in Tay Ninh Province, Vietnam, has implemented the second round of “three locals” policy starting from 0:00 on August 2, that is, in the factory Employees work, eat and rest on the spot. Due to restrictions on mobility in the places where some Vietnamese employees live, they are unable to report to work within the above 14 days, which will affect the existing production capacity of Bailong in Vietnam.
As of now, Vietnam Blum has a production capacity of 1 million spindles, accounting for approximately 60% of Blum Oriental’s total production capacity. According to preliminary calculations by Blum Oriental, during the implementation of this round of Vietnam’s epidemic prevention and control measures, Vietnam Blum’s production capacity will be reduced to 32 About %. It is expected that for every 14 days that Blum Vietnam is affected, the company’s annual output will drop by 2%. However, Blum Oriental said that the company’s current orders on hand are not affected.</p
