In the past few days, the novel coronavirus pneumonia epidemic has affected everyone’s heart. At the same time, the challenges and pressures brought by the epidemic to the printing and dyeing industry and enterprises have also attracted much attention in the industry. How to reduce industry losses and withstand the negative impact of the epidemic is worthy of consideration by the entire industry.
The upstream production resumption time has not yet been determined and dye production capacity may be reduced
As Enterprises in Hubei, the hardest-hit area by the epidemic, have suffered a greater impact. Chuyuan High-tech Group Co., Ltd. (hereinafter referred to as “Chuyuan High-tech”) is located in Shishou City, Hubei Province. It is one of the world’s leading manufacturers of reactive dye intermediates and has been affected by the epidemic. The company’s resumption of production has been delayed and the start of construction has not yet been determined.
It is understood that Chuyuan High-tech has total assets of more than 2 billion yuan and nearly 3,000 employees. The company’s annual sales reach more than 3 billion yuan, and its annual export earnings are US$100 million. It mainly produces and operates dye intermediates and reactive dyes, and its products cover 80% of the dye intermediate categories. The company has an annual output of 28,000 tons of H acid and 36,000 tons of para-esters, ranking first in the world in terms of scale; and an annual output of 50,000 tons of reactive dyes, ranking among the top in the world.
On February 2, Chuyuan High-tech announced that in accordance with the requirements of epidemic prevention and control work, the company will resume production and preparations as planned. It will continue to be postponed until it receives a notice from the Shishou City Epidemic Prevention and Control Headquarters allowing production, and the company will make another notice based on the actual situation. The on-duty staff will continue to be on duty, while other employees will postpone their duties until further notice.
“Chuyuan High-tech has strong self-supporting capabilities and scale advantages, can guide the global market, and plays a pivotal role in the industry. Its suspension of production will undoubtedly have an impact on industry production.” 1 An industry insider pointed out that more importantly, not only companies in Hubei have been affected by the epidemic, but many dye companies across the country have also postponed their resumption of work.
“There are many confirmed cases in Zhejiang during this epidemic. Zhejiang is the largest production base of disperse dyes and reactive dyes in the world. The epidemic will affect dye production and transportation in the short term.” The above-mentioned industry insiders said that in addition to safety Nuoqi’s production factory is located outside Shandong Province. Major domestic disperse dye manufacturers such as Zhejiang Longsheng, Runtu Co., Ltd., Zhejiang Boao, Jihua Group, and Flaint are all located in Zhejiang Province, mainly concentrated in Shangyu District, Shaoxing and Xiaoshan, Hangzhou. district. Zhejiang Province’s disperse dye production volume is expected to account for about 80% of the country’s total. “If the epidemic continues to spread, it will inevitably lead to a reduction in the production capacity of dyes in the domestic market.”
Printing and dyeing The subsequent impact of the delay in the start of business remains to be seen
The impact of the epidemic on the textile printing and dyeing industry is gradually emerging. In addition to dye intermediate manufacturers and dye distributors who have postponed their resumption of work due to the epidemic, some domestic printing and dyeing companies are also unable to resume production in a short period of time.
“Although the processing orders at the end of last year were full and the printing and dyeing industry ushered in a rare peak season, this is a special period. We resolutely implement the government’s requirements and resume work no earlier than February 17, 2020. The specific start time will depend on the development of the epidemic,” said Zhu Yumei, chairman of Zhejiang Jiahua Printing and Dyeing Co., Ltd.
The reporter learned that the printing and dyeing enterprises in Shaoxing, Zhejiang basically start operations after February 17, and the printing and dyeing enterprises in Jiangsu, Fujian, Shandong, Guangdong and other places generally start operations after February 10. However, the delay in resumption of work is only superficial. In fact, the overall impact on printing and dyeing enterprises is still many.
“The first thing is orders. As we all know, the textile printing and dyeing industry has special low and peak seasons. Generally speaking, the peak season is after the Spring Festival. Around the Dragon Boat Festival, factories basically have no orders to make. In other words, after the Spring Festival is the best production time for printing and dyeing companies, if work is not started during this period, orders will be seriously lost.” Jun Fang, director of the information department of Qicai Yun Dyeing’s e-commerce platform, analyzed.
For printing and dyeing companies facing the domestic market, due to varying degrees of delays in the resumption of work of upstream and downstream companies in the industrial chain, the subsequent impact remains to be seen. However, for export-oriented printing and dyeing enterprises, the inability to start operations as scheduled is undoubtedly a heavy blow.
A person in charge of an enterprise who did not want to be named said with concern that the epidemic is now serious and some other countries have taken some measures against my country’s exports, which has caused a serious blow to my country’s exports of textile printing and dyeing products. The person in charge of another company also said helplessly that after surviving the “cold winter” of the industry in 2019, he finally looked forward to some easing of Sino-US trade frictions, but now he has encountered the epidemic again, and the capital chain has become the biggest problem after resuming work.
In addition to whether production capacity can be restored in the short term after the holiday, whether there will be production management or international logistics outage risks due to the impact of the epidemic after resumption of work, etc., will become multiple considerations for foreign customers when placing orders. It is possible to speed up the transfer of orders.
Jun Fang also pointed out that issues such as worker tension are also one of the issues facing companies that need to be solved. She said: “Hubei printing and dyeing workers, as part of the national printing and dyeing workers group, due to the epidemic…Seriously, I am currently unable to return to work as scheduled. This has severely hit printing and dyeing companies whose employees are mainly from Hubei. In addition, employees whose hometowns are in other areas will also be affected to some extent when they return to work, which will further aggravate the company’s “labor shortage”. ”
It is worth noting that due to the epidemic, the resumption time of printing and dyeing enterprises has been extended. Even after the resumption of work, employee health management will become the most important issue for the enterprise, and the supply of masks is a big problem for the factory. At the same time, employees Work in the workshop, daily meals, etc. will all become difficult issues that require special attention. If the epidemic spreads within the factory, it will cause shutdowns and even bring more serious operational risks.
The support policies introduced by various regions are expected to decline first and then increase
Epidemic The impact on the industrial chain of China’s textile printing and dyeing industry is an indisputable fact. Against this background, local governments have introduced policies to support enterprises to tide over the difficulties.
For example, Zhejiang issued the “Zhejiang Province Novel Coronavirus Opinions of the Leading Group for the Prevention and Control of the Infectious Pneumonia Epidemic on Supporting Small and Micro Enterprises to Get Through Difficulties. The Opinions pointed out that it is necessary to accelerate the implementation of new cost reduction and burden reduction measures for small and micro enterprises, and reduce the consumption of electricity, gas, logistics, etc. by small and micro enterprises. cost, effectively reducing the burden on enterprises. Industrial electricity prices are adjusted in a timely manner in accordance with national policies, and industrial water prices and natural gas prices are both reduced by 10% for a period of 3 months.
Guangdong Province has multiple financial departments jointly issued the “Notice on Providing Financial Services, Security and Stability during the Epidemic Prevention and Control Period”. The “Notice” requires that all financial institutions (enterprises) should establish “green channels” for financial services such as credit and exchange for relevant enterprises, effectively Solve the liquidity needs of relevant enterprises. Banking financial institutions can reasonably take measures such as deferring loan repayments, extending loans, lowering interest rates, or exempting overdue interest to help enterprises tide over difficulties. Local financial institutions should make appropriate decisions based on the actual impact of the epidemic on enterprises. Increase loan, leasing, factoring quotas, delay or reduce rent and interest, and help enterprises reduce costs.
In view of the development trend of the industry this year, the relevant person in charge of Annoqi Group pointed out that from the In the first quarter, the output and demand of the printing and dyeing industry will decrease, but throughout the year, the total supply and total demand of China’s printing and dyeing industry are expected to be basically stable. He proposed that the relevant persons in charge of printing and dyeing enterprises should consider how to deal with the increasing labor costs. , how to apply intelligence and automation to reduce dependence on manpower, improve the company’s ability to resist changes in the external environment, internal quality control, and stabilize output.
The judgment of this person in charge has been endorsed by many experts in the industry Agreed. “In the short term, the impact of the epidemic on the printing and dyeing industry is mainly concentrated in the first quarter, especially the impact on the downstream demand side will be greater than the printing and dyeing production side, which will cause the prices of raw materials and fabric products to fall. It is expected that industry production and operation in the first quarter The situation is not optimistic. In the medium term, as the epidemic weakens or ends, the impact on the printing and dyeing industry will gradually lessen. From the perspective of the whole year, the overall operation of the printing and dyeing industry will show a trend of first decline and then rise. “An industry expert analyzed it.
“Printing and dyeing companies must respond calmly to ensure safe production and operation. Enterprises should focus on maintaining the stable operation of their production and operations while further tightening their grip on epidemic prevention and control. “The above-mentioned experts said that printing and dyeing enterprises should pay close attention to the dynamics of downstream demand, adjust the production rhythm in a timely and reasonable manner based on the company’s orders, funds, transportation, etc., strengthen self-discipline, consciously prevent and control risks, avoid vicious competition, and manage their respective traders. , strictly prevent low-price selling from disrupting the market, prevent market ups and downs, jointly safeguard the hard-won results of overcapacity reduction, and lay a solid foundation for the normal operation and profitability of the industry throughout the year.
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