Home / Knowledge / News / Textiles / Textile & apparel firms edge in for heavy losses
Textile & apparel firms edge in for heavy losses
May '08
Textile and garment exporters in Shandong Province are facing immense problems due to multiple factors including RMB appreciation, increase in labor cost and adjustment in export tax rebate.

According to the research made by Shandong Provincial Foreign Economy and Trade Department, only 30 percent of the textile enterprises in the province perform well, while more than 20 percent are suffering losses and have to either cut or change the line of production.

The Department made a survey on about 1,464 textile and garment exporters which revealed that profits of the entrepreneurs are squeezing day by day. Of these, only 433 enterprises had their margins crossing 3 percent, accounting for 29.6 percent of the total companies while nearly 21.3 percent were incurring losses or had suspended production or transferred to other industries. The remaining had balanced profits of about one percent.

Reports reveal that last year, the profits of textile and garment exporters got reduced by about 700 million yuan due to export tax rebates alone resulting in 30 percent of the textile enterprises standing at the edge of losses.

Moreover, in the first quarter of this year, the average cost of textile enterprises increased by 20-35 percent while the export prices showed no signs of pushing up. In the recently concluded 103rd session of Guangzhou Fair, prices for textile and apparel prices rose to the highest by about 15 percent while the growthrate of most of the products remained below 5 percent.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 18th Feb 2017

Bangladesh apparel sector has 95% local investors: BGMEA

Over 95 per cent of the total investors in the Bangladesh apparel...

Textiles | On 18th Feb 2017

Smriti Irani resolves cutting of carpets issue at ports

During a meeting held with stake holders of the carpet weaving...

Apparel/Garments | On 18th Feb 2017

Andhra Pradesh inks MoUs to set up 12 apparel units

At the recent CII Partnership Summit held in Hyderabad, memorandum of ...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search