Financial Crisis Accelerates China's Textile Machinery Industry to Reshuffle

The sales of roller, cradle and compact spinning recovered all week. Workers are now working overtime to get orders. “As with Tonghe, there have been many other textile machinery companies that have seen a booming ups and downs in the financial crisis. However, at the same time, a number of textile machinery companies have failed to cover the entry of the financial crisis. The attack quietly fell.There are industry insiders believe that a large-scale industry reshuffle has already kicked off in the textile machinery industry.

Financial crisis accelerates industry consolidation

After the outbreak of the financial crisis, people predicted that the dates of cotton spinning equipment companies and supporting equipment companies would not be better than that, and the facts were just as good. In 2008, sales of domestic spinning frames dropped from 10 million spindles per year before 2007 to more than 6 million spindles. In 2009, sales of spinning frames were about 5 million spindles. However, with the exception of Roller, which has dominated the domestic market, the company did not suffer from this impact. The company not only did not have a single penny, but also accumulated sufficient funds to capitalize on the special period of the financial crisis. On the one hand, it concentrated on developing the second generation, The first Xia Shang and Zhou Lola products, on the one hand, will further refine the cradle and compact spinning products that have grown up afterwards. In 2009, while the company's sales in Rolla continued to occupy the top spot in China, it also sold 500,000 spindles for compact spinning, making it a factual profit of more than 20 million yuan. The company’s general manager, Cui Guisheng, said: “The financial crisis is a test of the true strength of Tonghe. What's gratifying is that we not only passed the inspection, but also made the crisis even more powerful.

Wuxi Sepland Air-jet Weaving Machine Manufacturing Co., Ltd. also experienced a short-lived product sales crisis when the financial crisis first broke out. However, the orders quickly recovered. In 2009, the company sold more than 200 air-jet looms. “The textile companies that may survive the financial crisis are all truly core competitiveness enterprises, and the equipment purchased by these companies must be highly automated and highly efficient equipment. This allows us to firmly believe that 5 years ago The company challenges the selection of air-jet looms with the highest technological content.” Faced with the financial crisis, Ding Chaoying, the company’s general manager, is very calm. “Seplan’s equipment has established stable positions in weaving companies. In the future, we shall expand the air-jet looms to a wider range of applications.

After the baptism of the financial crisis, a group of powerful textile machinery companies that are truly strong have come to the fore, but there is also a company that lacks core competitiveness. A textile machinery company in Zhejiang had been well sold before 2008, but it quickly fell after the financial crisis. After a deep reflection, the CEO of the company thought that although the market was good in the past few years, the technology content of the company’s products was not high and the profit was very low, while the low profits caused the company to fail to make money and use it for technical innovation. The result of this vicious cycle is that if the market has trouble, the company will be able to escape.

When talking about some major textile machinery companies in this financial crisis and the difficult times, Gao Yong, chairman of the China Textile Machinery and Equipment Industry Association, believes that these companies often suffer a lot, but they are not strong enough to do it. Expertise, lack of refinement, ability to survive and resist crisis are limited. These companies must seriously consider the way out for the future, and the timing of the use of this mediation should be a complete change. For the whole industry, the financial crisis will eliminate a large number of extensive enterprises, give birth to a large number of large companies that truly have scale and true power, and enhance the overall industry's overall competitiveness. This is a good time to speed up industry consolidation.

Where is the way out for mediation?

In recent years, accompanied by the rapid growth of the textile industry, the China Textile Machinery Industry has also taken advantage of the growth, making China the world's largest textile machinery manufacturing country. However, the size of China's textile machinery enterprises is generally small, and the technical content of products is low. At present, China's textile machinery market accounted for 80% of the number of domestic equipment, but the proportion of sales accounted for less than 50%. In the first 11 months of 2009, the textile machinery industry made a total profit of 2.451 billion yuan, and the gross profit margin was only 15.23%. The loss-making enterprises suffered a loss as high as 676 million yuan, with a deficit of 17.57%.

Obviously, the financial crisis has exposed the drawbacks of the textile industry itself with low technological content and low profitability, and it is imperative that the entire industry mediate the transition.

The transformation of the textile machinery industry involved in the transformation of the largest cotton textile equipment manufacturers. According to the reporter’s understanding, some small companies with a “small ship” called for mediation began in 2009, but several large, industry-leading companies, although early in 2008 have begun to seek the purpose of mediation, but the mediation The action was slightly slower.

One of the problems here has been siege and disturbing these companies. Should the mediation transition be completely turned back, and using the advantages of general-purpose equipment in spinning mills, take the initiative to reach out to other industries?

Or stick to the main business of textile machinery?

In view of this, Gao Yong believes that, from the current situation, there has been no effective examination in the areas of industry that have turned to hot spots, such as digital control machine tools, agricultural machine tools, auto parts, and so on. The market prospects of these properties are comparable. Good, value when the business goes to attention. In addition, even the spinning machine category can make a difference.

Specifically speaking, companies should first settle in their original products and shift from low-grade products to high-end products. This is also the industry's future growth trend. Second, companies can focus their attention on the gatekeeper's attention in the textile machinery industry and have not yet entered an environment and R&D category. The development and utilization of some new types of fibers in related areas have put new demands on textile machinery equipment. For example, for fiberglass fabrics for wind turbine blades, multi-axial warp knitting machines, rapier looms, and air jet looms are used in the processing process, and reclaimed fibers are used to pave the net for nonwoven fabrics. Hot-rolling equipment is now also no enterprise enters a certain environment, in addition, the production of wide-weave looms for geotextiles, strong weaving loom and other production are also very limited.

In addition, there are blind spots for research and development on some scales relative to smaller traditional property equipment. For example, semi-worsted wool textiles that have been fired for several years have no special equipment. Enterprises generally buy old carding machines and spinning machines, and then do some transformations by themselves. The individual hemp textile companies also replace the cotton spinning equipment or wool textile equipment because they cannot buy the supporting equipment. These devices are the best targets for the transformation of cotton spinning equipment companies.

This information comes from the collection, does not represent the concept of China