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Shanghai looses big textile orders to Taiwan
05 Aug '08
1 min read
It has been noted that due to the pressures of strained international trade, rising production costs, RMB appreciation and natural calamities like the earthquake and heavy snow fall in the fist half of this year, many SMEs were forced to close down.
Reportedly, so far, in Shanghai alone, most of the factories stopped about 50 percent of weaving machines required for fabric manufacturing. In other areas, especially Guangdong Province, weaving industry is in worse state.
Shanghai statistics show that atleast 20 percent of city's fabric orders from the EU and US, had already shifted to Taiwan.
Insiders report that many fabric manufacturers of Shanghai city have not been able to pick up due to continuing issues like soaring raw-material prices and subprime loan of the US. Thus, many buyers have turned to Taiwan, finding it much more suitable and cost-effective.
However, sources from Taiwan stress that orders from the US market have been small due to weakening economy in the country. Therefore, local enterprises have not been able to earn considerable profits.
Reportedly, so far, in Shanghai alone, most of the factories stopped about 50 percent of weaving machines required for fabric manufacturing. In other areas, especially Guangdong Province, weaving industry is in worse state.
Shanghai statistics show that atleast 20 percent of city's fabric orders from the EU and US, had already shifted to Taiwan.
Insiders report that many fabric manufacturers of Shanghai city have not been able to pick up due to continuing issues like soaring raw-material prices and subprime loan of the US. Thus, many buyers have turned to Taiwan, finding it much more suitable and cost-effective.
However, sources from Taiwan stress that orders from the US market have been small due to weakening economy in the country. Therefore, local enterprises have not been able to earn considerable profits.
Fibre2fashion News Desk - China
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