Ma textile companies expand production capacity overseas

The reporter learned that at present, the profitability of domestic hemp textile companies has gradually increased. According to Xu Jixiang, President of the Chinese Machining Industry Association, “It is expected that in 2014 the national hemp textile enterprises above the designated size will accumulatively achieve a total revenue of RMB 50 billion and above, and will export hemp products and garments worth US$25 billion or more to expand the domestic market share. In the previous year, it increased by 6% or more, achieved a total profit of 3 billion yuan or more, and the per capita salary of employees rose by 10% or more, achieving a fixed asset investment of 12 billion yuan or more."

Industry insiders pointed out that in the face of an increasingly mature domestic market, China's linen textile companies are expanding their production capacity overseas and upgrading their corporate structure. In April this year, Jinda Holdings Co., Ltd., the third production base in Haiyan County, Zhejiang Province, has been successfully put into operation, with an annual production capacity of 5,000 tons, and the annual production capacity is expected to reach 18,000 tons. The commissioning of the new base will better serve the company’s customers both at home and abroad, and help the group fully grasp the market demand and expand its market share, thus making an active contribution to the Group’s revenue growth. “At present, the company’s orders are sufficient, and the supply contracts signed with domestic and overseas customers have reached the end of 2014. The company has made the decision to expand production, in order to meet the market demand for high-quality linen yarn, on the other hand, The future will lay a solid foundation for development, said Ren Weiming, chairman of Jinda Holdings Limited.

It is understood that in July this year, Jinda (Ethiopia) Linen Co., Ltd. invested by Jinda Holdings Limited and the Ministry of Industry of the Federal Republic of Ethiopia formally signed an investment agreement to develop and build a flax industry park with world-class technology. A project has an annual capacity of 5,000 tons of linen yarn. The first phase of the project investment is 50 million US dollars. This is the largest overseas investment project of private enterprises in Haiyan County, Zhejiang Province.

Ren Weiming introduced that the establishment of the Jinda Flax Industrial Park project is under the guidance of the “Going Global” national strategy, in order to deal with trade barriers, enjoy tariff preferences, exert cost advantages, realize corporate structural upgrading and adjustment, and promote domestic enterprises to overcapacity. Strategic shifts will be made to increase international competitiveness and enable the textile industry to achieve sustainable development.

Like Jinda Holdings, in the face of an optimistic international market, Heilongjiang Yanshou County Jiajia Linen Textile Co., Ltd. also chose to expand production capacity. At the end of 2013, Heilongjiang Yanshou County Jiajia Linen Textile Co., Ltd. signed a contract for “building a new 10,000-line linen textile project.” At present, the project is still under preparation. It is understood that the project will have a total investment of 150 million yuan. After the project is put into operation, it is expected to produce 2,000 tons of linen yarn every year, realize an output value of 100 million yuan and a tax of 10 million yuan. After the project is completed, it will play a positive role in the company's development of domestic and foreign markets.