Is Xinjiang Worth Spinning To Invest? How Long Will The Industrial Policy Continue? Through The Layout Of Huafu, We Can See Three Things At Last.

Data show that since the first half of this year, textile enterprises have changed their former enthusiasm, and the number of investment enterprises in Xinjiang has dropped significantly.

Is Xinjiang still suitable for investment? This is the suspension of relevant policies in Xinjiang since March of this year.

After the construction of the proposed project and the announcement of the April "further improving the policy of textile and garment industry in the autonomous region" and "notice on strengthening the management of cotton spinning construction projects and promoting the development of high quality industries", many textile enterprises in the East are most concerned about.

In August 25th,

This move seems to have released a positive signal for the cool Xinjiang market.

Is Xinjiang worth it?

Recently, in Akesu area

On the development and prospect forum, Xie Qing, deputy director of the Xinjiang autonomous region economic and Information Committee, said that the policy guidelines of the state and Xinjiang autonomous region to strongly support the development of the textile and garment industry have not changed. The initial intention of promoting the employment of 1 million people by changing the textile and garment industry has not changed.

From 2014 to now, the cotton spinning capacity of the autonomous region has increased by 10 million ingots to solve nearly 100 thousand jobs.

During the rapid development of Xinjiang's cotton spinning industry, cotton spinning production capacity has been growing too fast, and the back end structure of the industrial chain has been unbalanced.

If the financial subsidy funds are too large, if we do not take measures to control and prevent the cotton spinning capacity from expanding in disorder, it is estimated that this year's Xinjiang cotton spinning has been put into operation and its capacity in construction will break through the development target set by the state to the 2023 Xinjiang (including Corps) cotton spinning production capacity of 20 million spindles.

In the factory of Huafu in Akesu, Ismaili Ibrahim, a Uygur boy, told reporters that he entered Huafu in 2015. He worked from 2550 yuan security worker. Now he has become a former spinning squad leader and manages more than 50 people. His monthly income has risen to 4200 yuan. In Huafu, in the past 3 years, not only the family economic situation has changed, but also his wife has been acquainted with him, and two people earn nearly eight thousand yuan a month to make him feel happy and satisfied.

For the most concerned issues of the industry and enterprises, when does the policy continue to exist? Xie Qing said that the special policy of high gold content has greatly promoted the rapid development of Xinjiang's textile and garment industry.

The policy can be extended to 2023.

According to the notice of further improving the policy of textile and garment industry in the autonomous region, Xinjiang is not going to slow down the development of the textile and garment industry. On the contrary, it should accelerate the healthy, sustainable and high-quality development of the textile and garment industry: actively coordinate and speed up the progress of the project to ensure that the cotton spinning project under construction is on schedule and put into production on schedule.

In the future, we will concentrate our policy funds on greater support for industries such as cotton spinning, chemical fiber, weaving, clothing, home textiles, knitting and so on. We must adhere to the southern Xinjiang as the focal point to promote the employment of ethnic minorities in the southern Xinjiang. We should pay more attention to the development of large enterprises that have landed. We should pay attention to giving full play to the leading role of leading enterprises, attracting businessmen and businessmen to form a group of leading backbone enterprises with core competitiveness and strong employability.

What business is suitable for Xinjiang?

As for the layout in Xinjiang, Sun Weiting, chairman of Huafu holdings and Huafu fashion, has said: not all enterprises are suitable for development in Xinjiang, to see their strengths and weaknesses, and to meet their own development goals and plans.

"We see a lot of textile enterprises in Xinjiang are facing embarrassment. Unlike Zhejiang and Guangdong, the market is large and the industry is complete. They say there is a big gap between Xinjiang's actual situation and imagination."

In Sun Weiting's eyes, Xinjiang's advantage is very outstanding. It has four overlapping effects of resources, location, policy and national pportation, and the future is limitless. It is an effective supply for domestic consumption upgrading.

Resource advantages: 6 million tons of cotton output in the whole country, 5 million tons in Xinjiang, and a high proportion of Akesu in Xinjiang.

The most delicate long staple cotton grows in only four places in the world, and China Akesu is one of them.

At the same time, Xinjiang is a large oil and gas production and processing and storage base, large-scale coal, coal, electricity and coal chemical industry base and large-scale wind power base.

Location advantage: it takes 7 days from Xinjiang to the coastal ports and 35 days to Europe. It adds up to 42 days. If we get through the westward route, we can pport goods to Europe in 10 days.

This is very substantial for reducing the logistics cost. According to the current estimate, at least 500 yuan per ton.

Policy advantages: many enterprises are most concerned about what to do if there is no subsidy. Sun Weiting said he has confidence in the long-term and stable policy, and the industrial aid will be a long-term policy. Xinjiang must take the road of modern agriculture and moderately develop industry instead of relying solely on agriculture.

In the future, there are three main trends in Xinjiang's industry: one is cotton, two is mineral resources, and three is tourism.

Advantage of national pportation: the national strategy of the rise of great powers and the strategy of "one belt and one road". Xinjiang is the exchange station and the pfer station between China and Eurasia. The location advantage will turn into a scale advantage and there will be greater opportunities for development.

And there are many challenges, including shortage of talents, road far away, ecological fragility, industry matching and so on.

Environmental protection has always been a big problem. Sun Weiting said that Huafu firmly decided to go to Xinjiang to do colored spinning. One of the most important reasons is its own water saving and emission reduction.

"We can make about 100% of the colored products with about 40% of water. Huafu's 100 thousand ton dyeing plant in Akesu can consume about 50% of the waste water through reclaimed water reuse.

Now, the technology of zero discharge of sewage is mature, but the cost is relatively high, and the technology of low cost is being developed. After 3 years, there is no pollution and sewage.

Sun Weiting also said that in recent years, he appealed to the government to subsidize the printing and dyeing enterprises with zero emissions.

"After printing and dyeing difficulties, the fabric comes naturally."

How is the layout most consistent with trend development?

With the speeding up of the construction of the core area of the Xinjiang Silk Road Economic Belt, the demand for knitted, home textiles and clothing in Europe, Central Asia and surrounding markets is also growing.

At the same time, Xinjiang's local policy is also vigorously promoting the development of downstream industries such as weaving, clothing, knitting and home textiles with large employment capacity, and further increasing employment opportunities.

Just 12 years after the development of Huafu in Xinjiang, what we have done is to optimize the layout of the whole industrial chain of textile and clothing.

Especially in the past two years, under the development strategy of "insisting on the main industry and sharing the industry", the layout of the network chain for the front end and the back end is becoming clearer.

Therefore, in addition to 1 million spindles of Akesu colored textile industrial park and 100 thousand tons of dyeing industrial park, Huafu in Akesu has acquired and built a cotton front network chain system integrating cotton farms, ginning plants, flower gauze trading markets and logistics companies in Xinjiang, and will also build Akesu textile town.

Akesu greenbelt textile town is only one of the layout of Huafu national greenbelt town. In 2017, Huafu Huaibei green town has already started.

What these green towns have to do is vertically integrate the industrial chain. Huafu only completes the spinning and dyeing links, as well as providing support, service and logistics platform, so that downstream partners can pack their bags, clothing and weaving can be realized through investment.

The vertical green town will restructure the competitive power of subdivision products.

In addition, in April this year, Huafu Shangyu fashion network chain headquarters has also been started. The project is expected to be completed and put into operation in 3 years.

At that time, Huafu will form 1 headquarter + multiple industrial production modes.

The headquarters will link up with the small towns to establish a vertical garment platform that integrates new yarn, new fabrics, new clothing, global fashion designers and e-commerce pactions, and truly solves the market pain points of the back-end production links, and creates a new pattern of the fashion industry.

Sun Weiting once said that the vision of Huafu is to advance from the world-class yarn kingdom to the fashion operators of the global textile and garment industry. This is based on the realistic benchmarks of Li Feng and Yi Teng, and is based on the advance anticipation of the industrial development trend.

Li Feng is famous for its "dispersed production" without plants. The raw materials, spinning, dyeing and finishing, processing, excipient and finished products are all made by different factories all over the world.

As a benchmarking company, Li Fu can see that Huafu's position in the future is to integrate the supply chain.

As a matter of fact, there are basically 3 supply chain modes. One is outsourcing of all processes represented by Li Feng, only supply chain integration. The other is the production of other manufacturers, their own assembly and core, and the three is to invest in the entire textile industry chain so as to reduce the logistics cost.

What Huafu wants to do is different from the above. To do well in the main business -- yarn, master the front-end cotton, share the back-end platform -- let the industry see fourth kinds of new supply chain models.

Sun Weiting once said, "the basic elements of the new supply chain are the industrial Internet and the complementary advantages among enterprises.

The ideal supply chain is data sharing and elimination of inventory.

Now, the layout of Xinjiang has already seen a clue. It can be seen as a microcosm of Huafu's national and global layout.