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Fabric processing sector to eliminate backward capacity
Aug '10
Recently, China's Ministry of Industry and Information Technology announced the list of enterprises with backward production capacities which will be eliminated from among 18 industrial sectors and must be removed before the end of September this year.

Within the textile fabric processing sector, 201 enterprises have been identified which will have to remove these obsolete equipment. However, some enterprises had already had their equipment removed as early as in 2007, so it will not be a difficult task to eliminate the backward production capacities of printing and dyeing industry as required.

According to the announcement of the Ministry of Industry and Information Technology, the backward production capacities to be eliminated from the 201 companies in dyeing and printing industry will reach 3.81 billion meters or so in terms of printed and dyed fabrics.

China's production of printed and dyed fabrics reached 20-30 billion meters in the first half of 2010. Based on the production capacity, backward production capacities to be eliminated from dyeing and printing industry will account for about 10 percent of output.

Ningbo Zhongxin Printing and Dyeing Co., Ltd. is one of the companies which have been advised to eliminate obsolete equipment. The Ministry has asked the company to remove one printing and dyeing production line. The printing and dyeing cloth production capacity of Ningbo is 100 million meters per annum.

Ningbo Zhongxin, formerly known as Ningbo Hengfeng Dyeing Factory, founded in 1929, was listed amongst the top 50 in terms of sales of cotton dyeing and printing fabrics. The company too has discarded its old factory and has built a new factory with new equipment.

Changshu Yilong Knitting & Finishing Co Ltd is required to eliminate 2 sets of 1000Kg high temperature and pressure dyeing vats, 2 sets of 113 room temperature tanks and 2 sets of 500 Kg dyeing vats. It has already installed new equipment and replaced the old machinery.

An official from Huzhou Hengfeng Dyeing Co., Ltd., which is required to eliminate 90 million meters of printed and dyeing fabrics, says that the company has closed down since the last two years.

An industry source points out that a lot of printing and dyeing enterprises believe it is not an accident for the Ministry to discontinue and close some plants, as a number of environmental events such as Wuxi algae bloom have caused great concern from local authorities in recent years.

Printing and dyeing enterprises are large energy and water consumers and pollution producers, they have become focus of environmental remediation operations by local authorities, a large number of backward production capacities of printing and dyeing industry had already been eliminated in the last two or three years.

The Ministry requests relevant authorities to take effective measures and ensure the elimination of backward production capacities of the listed enterprises before the end of September 2010. It is learnt from a survey that it will not be difficult for printing and dyeing industry to complete the goal by the end of September.

According to industry sources, the elimination of backward production capacities of printing and dyeing industry required by the Ministry will bring apparent polarization to the industry. In the current situation, those large-scale printing and dyeing enterprises with advanced technology will face an easier situation in the future, while small and medium sized printing and dyeing companies will face fierce competition.

Fibre2fashion News Desk - China

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