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China's textile hub facing crisis; workers worried

15
Dec '11
Textile mills in Changyi city located in Shandong province of China are facing an unprecedented crisis that has made workers worried.

The textile hub has thousands of small and large textile mills and the products manufactured in this city are not only shipped throughout China but are also exported to Europe and other advanced countries.

However, the textile units in this city are facing a crisis and some mills are allowing workers to enjoy their annual leave in advance, even though around 40 days are left for the Chinese Spring Festival.

This has made the workers worried as they have not been told by their employers about the exact date of getting back to work after the festival, while granting the annual leave in advance.

The fact that large numbers of workers are being given 40-days annual leave in advance points to the kind of crisis faced by the textile industry this year.

"The textile industry has been sluggish since 2011 and factories will suffer more losses if they hardly maintain operation," said Mr. Yang, a mill owner in Yinma area of Changyi City. He adds that he had not seen such a situation in the last ten years.

The impact of crisis is being faced to various degrees by thousands of small and large textile units and related businesses, according to Mr. Yang. He blames the high cotton price last year for the current problems faced by the entire textile industry in Changyi city.

Another mill owner Mr. Yu recalls that the price of finished yarn rose to 35,000 yuan/ton in October last year from only 15,000 yuan/ton in early 2010. He adds that several textile mill owners did not sell processed textiles at that time in fear of incurring a loss as prices hike further.

Fibre2fashion News Desk - China


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