;
Home / Knowledge / News / Textiles / Gloom surrounds Wei Qiao textile unit
Gloom surrounds Wei Qiao textile unit
08
May '08
Wei Qiao, the largest cotton textile unit of not only China but of Asia, is going through tough times. There are various reasons that have affected the manufacturing unit, including decline in export orders, changes in RBM exchange rates, tax rebate rates and implementation of new laws like Labor Contract Law and state credit policy.

The price of raw material has also increased that has reduced the profit margins of the unit. To add further woes, the textile plant that earlier had 1,35,000 employees, saw almost 17,000 workers walk out in 2007, that has affected the production process to some extent.

In 2007, Wei Qiao produced almost 8,91,000 tons of cotton yarn, 1.64 billion meters of fabrics and 180 million meters of denim, which is slightly higher when compared to previous year.

However, the turnover decreased by approximately 1.24 billion yuan, gross margin reduced by 660 million yuan and average gross margin rate fell from 16.8 to 1.3 percent last year, when compared to 2006.

According to China Textile Industry Association, the actual business profit margin of 2/3 enterprises is only 0.62 percent. These statistics have made the people associated with the sector worry about the future of textile industry in China.

Fibre2fashion News Desk - China


Must ReadView All

Courtesy: Lululemon

Apparel/Garments | On 16th Dec 2018

Lululemon’s net revenue up 21% in Q3 2018

Lululemon Athletica Inc, a healthy lifestyle inspired athletic...

Courtesy: Walmart

Apparel/Garments | On 16th Dec 2018

Rakuten, Walmart start Walmart ecommerce store in Japan

Rakuten and Walmart have joined hands to start the first Walmart...

Courtesy: H&M

Apparel/Garments | On 16th Dec 2018

H&M Group's wage summit discusses fair wages

The textile and fashion industries were brought together by H&M Group ...

Interviews View All

Rajiv Sirohi, Shara

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Top executives, Textile industry

Top executives
Textile industry

Denimsandjeans India 2018

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search