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Hike in power prices puts pressure on textile industry
30 Jun '08
1 min read
The textile industry is known for its high consumption of power and after the recent adjustments made by the National Development and Reform Commission (NDRC) the sector is likely to face immense pressure of increasing production costs.
The NDRC has raised the electricity prices by 0.025 yuan per kilowatt hour which will badly affect the already ailing cotton textile industry.
According to an industry expert, rise in electricity price will increase the cost of the cotton textile industry by 1.288 billion yuan which is definitely more than what the textile industry can take in such critical situations.
Besides, the price rise of 0.025 yuan per kilowatt-hour will increase 1.05 billion yuan of additional annual electricity burden on cotton spinning enterprises.
Power costs in cotton mills account for 6-8 percent of the total manufacturing costs. Energy consumption in recent years has been greatly reduced because of a phenomenal improvement in technical equipment, but this present hike in prices would surely offset the benefits resulting from technological advancement.
The NDRC has raised the electricity prices by 0.025 yuan per kilowatt hour which will badly affect the already ailing cotton textile industry.
According to an industry expert, rise in electricity price will increase the cost of the cotton textile industry by 1.288 billion yuan which is definitely more than what the textile industry can take in such critical situations.
Besides, the price rise of 0.025 yuan per kilowatt-hour will increase 1.05 billion yuan of additional annual electricity burden on cotton spinning enterprises.
Power costs in cotton mills account for 6-8 percent of the total manufacturing costs. Energy consumption in recent years has been greatly reduced because of a phenomenal improvement in technical equipment, but this present hike in prices would surely offset the benefits resulting from technological advancement.
Fibre2fashion News Desk - China
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