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Shaoxing textile cos strains under rising cost pressure

11
Apr '08
A statement made by an official of Shaoxing County, Zhejiang Province unfolds that nearly all the local textile enterprises in the region are running a huge loss because of a sharp decline in orders placed last month.

However, experts believe that other factors like rising costs of production have also played their role in turning the situation from bad to worse.

Prices of coal, electricity, oil, transportation and other essential raw materials have gone up by nearly 8 percent while the final price of product goes up by only 2 percent.

Additionally, while the prices of dyes soared from its initial 15 to 30 percent, those for printing and dyeing processing surged from 1.7 to about 2.5 yuan per meter.

The situation has turned out to be so grave for mediocre entrepreneurs that two of the clothing and fabric manufacturers had to opt for a shut down. Nonetheless, big business firms are still managing to remain unswayed from the effects of such adversities.

Fibre2fashion News Desk - China


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