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Stagnant textile sector detracts sewing machinery profits
14 Apr '08
1 min read
Burgeoning crisis in the textile sector is not only stagnating industry, but is also chewing away the margins of the sewing machinery manufacturers.
According to the reports furnished by Zoje Group, one of the most significant sewing machinery manufacturers in China, profits in the first quarter of this year plummeted by about 70 percent compared to the same period in the previous year.
It has virtually become impossible for textile and clothes enterprises to survive with such unacceptable profits. As a consequence, firms have disclosed their intentions to either shut down or reduce the magnitude of its production scale which in turn has affected the sale of domestic sewing machines in the market.
Nearly one third of the Chinese textile and clothes enterprises are expected to shut down. Infact, Zoje Group, has also expressed the desire to enlarge export business in order to counteract the effects of losses in domestic market.
According to the reports furnished by Zoje Group, one of the most significant sewing machinery manufacturers in China, profits in the first quarter of this year plummeted by about 70 percent compared to the same period in the previous year.
It has virtually become impossible for textile and clothes enterprises to survive with such unacceptable profits. As a consequence, firms have disclosed their intentions to either shut down or reduce the magnitude of its production scale which in turn has affected the sale of domestic sewing machines in the market.
Nearly one third of the Chinese textile and clothes enterprises are expected to shut down. Infact, Zoje Group, has also expressed the desire to enlarge export business in order to counteract the effects of losses in domestic market.
Fibre2fashion News Desk - China
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