People say that without years of vicissitudes, there will be no growth, and without the hardships of life, there will be no real success. Standing at the end of 2019, looking back at what the past year has left us?
Is it a sluggish economic environment? Difficulty finding an order? Innovation strength that has been stretched far apart? A state of decadence under pressure? Or rational analysis? Actively seeking progress? Pragmatic innovation? Or, the spirit of becoming more and more courageous as he fights?
Let us look back on 2019 with time as the axis, and search for the true imprint of 2019 from the industry events, corporate development, and character status recorded by reporters.
Focus overseas
When “going global” becomes the market development for enterprises important strategy, how should China’s textile machinery industry be laid out? Obviously, “knowing yourself and the enemy” is very important. Therefore, we focus on those overseas markets that have attracted much attention, based on the real status of China’s textile machinery industry, and through detailed analysis of the needs of multiple overseas markets, we explore new opportunities for “going global” with industry companies.
Ethiopia
Ethiopia’s textile and garment industry started late. The entire industry is still in the climbing stage, dominated by small and medium-sized enterprises, with a total of nearly a hundred companies. The Ethiopian government has many policies that favor the textile and garment industry; it plans to develop the textile industry from the perspective of the entire industry chain through the layout of industrial parks; it is rich in raw material resources such as cotton, wool, and hemp, and has good infrastructure; it enjoys exports to the United States and Europe The zero-tariff and zero-quota policy allows exports to 23 African countries at preferential tariffs; the labor force reaches 54 million people, the population structure is young, and the quality is relatively high.
The supporting issues in the textile and apparel industry chain are more prominent. For example, the fabrics and auxiliary materials required by production companies are basically dependent on imports; logistics costs remain high; labor productivity needs to be improved; and foreign exchange controls remain Tightening etc.
Kenya
The development of Kenya’s textile and garment industry is relatively backward, and the industrial chain Not perfect. Currently, there are more than tens of thousands of textile and apparel small and micro enterprises in Kenya, more than 80% of which are in the informal sector and have relatively rudimentary production equipment. The government is relatively stable and attaches great importance to attracting foreign investment, and investment regulations are relatively complete; the manufacturing base is relatively developed, and the textile industry is its key development industry; the domestic economic development is relatively stable; there are a number of international trade cooperation agreements; the geographical location is superior, and the infrastructure is relatively It is relatively good, with potential in transportation; abundant labor resources and relatively low salary levels; multiple export processing zones can enjoy preferential investment policies.
Social security problems are more prominent; strikes occur frequently, high-tech workers need training, water and electricity supply is relatively unstable; government efficiency is low, and corruption problems are widespread.
India
The current valuation of the Indian textile and apparel industry is about 1,500 billion, and the market size is expected to reach US$226 billion in fiscal 2023. At present, India has 53.45 million ring spinning spindles, accounting for 24% of the world’s spindles. In the fiscal year 2017~2018, the total demand of the Indian textile machinery market was approximately US$1.95 billion; of which imported equipment was 96.52 billion rupees, accounting for 71% of the total demand of the Indian textile machinery market.
In terms of cotton spinning machinery, LMW is the largest complete set of cotton spinning equipment manufacturer in India, with a cumulative market share of more than 60% in India. In terms of weaving machinery, currently, there are 168,000 shuttleless looms, 2.5 million hand looms, and 2.38 million power looms in the Indian market. High-end customers are occupied by Picanol, Toyota, and Tsudakoma. These three companies have always occupied the high-end air jet market. The import share of looms is about 80%. In recent years, the Indian textile industry’s demand for mid-to-high-end knitting equipment, chemical fiber equipment, air-jet textile equipment, non-woven fabrics, etc. has increased significantly. Knitting, printing and dyeing and other equipment will have relatively large room for development.
Vietnam
Vietnam’s textile equipment is outdated and its technology is backward. There is a lack of funds and a large market gap. In order to produce products that meet the market needs of Western countries, 90% of Vietnam’s machinery and equipment need to be imported from abroad. In addition, Vietnam’s tariffs on textile machinery and equipment are lower than those in other Southeast Asian countries. Therefore, Vietnam’s textile industry The machine market has huge potential. The signing of the CPTPP agreement will undoubtedly stimulate the import demand for textile machinery products.
At present, China is one of the main suppliers of textile machinery to Vietnam. China’s various textile equipment products are more suitable for the needs of the Vietnamese market at this stage than similar products from other countries in terms of price, quality, service, etc., and the average price is also more acceptable to Vietnamese textile enterprises.
Bangladesh
According to statistics from the Bangladesh Textile Association in 2018: Nationwide There are 425 spinning mills with a total of 12.41 million ring spinning spindles and a total annual yarn output of 2.589 million tons. There are a total of 796 weaving factories, with a total of 51,211 shuttleless and shuttle looms, with an annual output of 3.583 billion meters of fabric. There are a total of 240 printing and dyeing factories, with a total annual processing capacity of 3.173 billion meters, including 2.29 billion meters of woven dyeing, 313,000 tons of yarn dyeing, and 570,000 tons of knitting dyeing. Compared with Bangladesh’s garment industry, there are still large gaps in spinning, weaving, printing and dyeing.
In terms of Bangladesh’s textile machinery imports, taking cotton spinning equipment as an example, this year Indian equipment overtook China and became the country exporting the largest amount of spinning equipment to Bangladesh. At the same time, it almost preempted Switzerland and Japan. market. Through careful study��Customs data shows that there are more large orders for Chinese equipment exports, while the amount of each order for Indian equipment is not large. It is a large quantity piled up with many small orders. This also shows that Indian equipment is subject to more Favored by enterprises.
Indonesia
Indonesia’s “Made in Indonesia” policy developed for industrial upgrading 4.0” In the national development strategic plan, textiles are listed as one of the five priority industries.
At present, the demand for cotton spinning equipment in Indonesia has slowed down, but the demand for mid-to-high-end knitting equipment, chemical fiber equipment, non-woven equipment, etc. has increased significantly, and there will be a relatively large demand. development space. At present, the overall technical level of Indonesia’s spinning industry is lower than that of China; high-end customers have high requirements for the technical performance of equipment; large customers value strategic cooperation and are more loyal, but have higher service requirements; there is still a lot of demand for mid- to low-end equipment. Large demand; mid- to low-end customers are mostly price-sensitive and have low loyalty.
In Indonesia’s “Made in Indonesia 4.0” national development strategic plan for industrial upgrading, textiles are listed as one of the five priority industries.
At present, the demand for cotton spinning equipment in Indonesia has slowed down, but the demand for mid-to-high-end knitting equipment, chemical fiber equipment, non-woven equipment, etc. has increased significantly, and there will be a relatively large demand. development space. At present, the overall technical level of Indonesia’s spinning industry is lower than that of China; high-end customers have high requirements for the technical performance of equipment; large customers value strategic cooperation and are more loyal, but have higher service requirements; there is still a lot of demand for mid- to low-end equipment. Large demand; mid- to low-end customers are mostly price-sensitive and have low loyalty.
Turkey
In the past, Turkey was dominated by European textile machinery; In recent years, as the performance and competitiveness of Chinese textile machinery products have gradually increased, more and more textile companies in Turkey and surrounding areas have begun to consider choosing Chinese textile machinery products. The final products in the Turkish market are oriented to Europe and the United States. In order to avoid competition with Southeast Asian companies such as China, most orders are for small batches and multiple varieties, with high quality requirements. They have differentiated requirements for textile machinery equipment, machine performance, automation level, and labor input costs. relatively high.
Although exchanges between China and Turkey have increased in recent years, most Turkish companies still do not know enough about Chinese products, especially the specific data such as the advanced level, manufacturing level, and scale of Chinese companies. Relatively unfamiliar and lacks knowledge of Chinese products.
Pakistan
The textile industry is the most important manufacturing industry in Pakistan The industry has a complete industrial chain: from raw cotton, ginning, spinning, weaving, printing and dyeing to garment manufacturing. Pakistan’s total spinning production capacity is nearly 11 million spindles. More than 1 million spindles have been added in the past five years, with 80% of equipment coming from Europe and Japan, 12% from India and the remaining 8% from China. There are currently about 300 cotton spinning mills, and the planning of new cotton spinning complete projects has gradually expanded from the past design of 15,000 to 30,000 spindles/workshop to 30,000 to 50,000 spindles/workshop. In recent years, the monthly salary of car operators has gradually increased from the previous US$100 to US$150, and the demand for smart spinning has surged.
Pakistani textile mills tend to use Japanese and European equipment because of high output, more energy saving, higher degree of automation, more stable operation, and faster and more efficient localized services. .
Uzbekistan
Uzbekistan currently has a total number of spindles. The number of ingots is about 1.5 million. According to the government’s goal of deep processing of cotton reaching 50% to 60%, there is still much room for growth. Cotton spinning is the main body of the market, and weaving, dyeing and garment making are developing slowly under the requirements of the Uzbek government. The share of chemical fibers in Uzbekistan is very small.
Since 2018, the Uzbek government’s industrial policy has shifted from supporting spinning to supporting high value-added projects in weaving and printing and dyeing post-processing. Loans have been tilted towards weaving and printing and dyeing post-finishing projects. In principle Loans are not provided for individual spinning projects. Starting in 2020, Uzbekistan will stop cotton exports. In the future, the Uzbek textile industry will adhere to an export-oriented approach, use high technology to produce competitive technology-intensive products, and encourage investment and innovation in the industry. As a key country along the “One Belt, One Road” initiative, it is likely to become the next hot spot for companies to invest in and build factories.
Egypt
Egypt’s cotton spinning industry ranks among the top, and It has the largest cotton and textile industry cluster in Africa. Egypt’s domestic cotton spinning industry chain is relatively complete, from cotton planting to spinning, weaving and garment manufacturing, giving Egypt strong capabilities in the field of garment manufacturing. At present, the textile industry accounts for 3% of Egypt’s GDP and 22% of the total manufacturing output value. Egypt’s textile industry has now grown to approximately 7,344 companies, 90% of which are small and medium-sized enterprises.
Although Egypt’s textile industry chain is relatively complete, the weaving, printing and dyeing and other links are weak, and the quality of related products often does not meet standards. Egypt’s solution to this is to promote The downstream industrial chain is complete and related industries are well-equipped, and China’s experience is replicated in the industrial park model. </p
