Southeast Asia sets off a boom in textile machinery investment

The annual survey report recently released by the UN Economic and Social Commission for Asia and the Pacific (ESCAP) predicts that the economic growth rate of the developing economies in the Asia-Pacific region will further slow down in 2012 due to the decline in demand from developed countries. The report also pointed out that although The growth rate has slowed down, and the Asia Pacific region is still the fastest growing region in the world economy. In such an environment, although the growth rate of the Asian textile industry is also generally slowing, Asia remains the center of the global textile industry and remains the largest market for global textile machinery.

It is worth noting that after experiencing the global financial crisis, the demand for textile machinery in the Asian market has changed, and the demand for equipment has been further enhanced. The demand for high-efficiency, high-quality, high-automation, and energy-saving equipment has continued to grow.

Strong growth in demand for high-end equipment India is the second-largest textile machinery market after China. With the advantages of cotton and labor resources, the annual spinning capacity has increased by 3 million to 4.2 million spindles since 2006. At present, the spinning capacity in India is about 43 million spindles.

Despite the current slow recovery in the global economic situation and the continued sluggish demand, China, as the world's largest textile producer, is still firmly attracting the attention of global textile machinery manufacturers and textile manufacturers. In 2011, China's textile machinery industry realized sales revenue of 105.013 billion yuan, a year-on-year increase of 27.07%. In 2011, the cumulative total of China's textile machinery import and export was 7.610 billion U.S. dollars, a year-on-year increase of 25.60%. Among them, the export value of textile machinery was 2.245 billion U.S. dollars, an increase of 27.81% year-on-year; the import value was 5.364 billion U.S. dollars, a year-on-year increase of 24.70%.

After a period of rapid development, in recent years, the Chinese textile industry has been committed to the adjustment and upgrading of the industrial structure. The momentum of the expansion of production scale has gradually slowed down, and the demand for renewal and transformation has obviously increased. The rising costs of raw materials and labor also force companies to increase labor productivity and reduce employment through new technologies and new equipment. In recent years, the ownership rate of advanced equipment in the cotton spinning industry in China has been continuously increasing, with automatic doffing long cars, blowing-carding, automatic winders, and shuttleless looms all having varying degrees of growth. Many problems facing textile companies nowadays can be solved by raising the level of equipment. For example, for high labor costs, automatic winding machines, spinning spun yarns with automatic doffing, etc. can be used to reduce labor; market competition is fierce and conditional. Enterprises can compact spinning projects, produce combed yarns, and aim at “three-in-one” high value-added products. Air-jet looms and long-haul vehicles can be used on equipment. Many companies have realized this and have begun to carry out technological transformation.

India is the second largest textile machinery market after China. With the advantages of cotton and labor resources, India has officially entered the fast track of investment in the textile industry since 2006. The annual spinning capacity has increased by 3 million to 4.2 million spindles. At present, the spinning capacity in India is about 43 million spindles.

Indian cotton textile industry has strong competitiveness. For many years, through the cooperation with world-famous textile machinery manufacturers, such as Trützschler in Germany, Rieter in Switzerland, Sussen in Germany, Savio in Italy, Toyota in Japan, etc., it has greatly enhanced the manufacture of Indian cotton textile machinery. Level. Indian cotton textile companies have good management and quality control capabilities, and the requirements for high-speed, high-efficiency cotton spinning machinery are even more prominent.

In previous years, the investment in textile machinery equipment in India was mainly concentrated on spinning equipment. The development of other equipment was relatively slow. In the past two years, the demand for medium and high-end weaving equipment, knitting equipment, chemical fiber equipment, and air-jet spinning equipment has increased significantly in India's textile industry. Knitting, printing and dyeing equipment will have a relatively large space for development. At the same time, about 2 million to 3 million spinning devices are needed in India every year.

At the request of Indian textile companies, the Indian government is preparing to extend the Textile Industry Technical Reform Fund (TUF). It is understood that the Indian textile ministry has proposed to extend the TUF plan in the twelfth five-year plan and allocate 158.86 billion rupees. After the reorganization of the technical reform fund plan will pay more attention to weaving, processing and high value-added industries such as downstream textile industry.

Investment boom in Southeast Asia With rising domestic costs and the manufacturing advantages of Southeast Asian countries, the number of spinning capacity in China will gradually increase. This will also drive demand for textile machinery.

Judging from the pattern of international textile production, the competitiveness of Southeast Asia in the low-end textile sector has increased. As a labor-intensive industry that increases employment and expands exports, the textile industry has developed rapidly in Southeast Asian countries. With the advantages of local resources and relatively cheap cost, it has a better development environment.

In the recent period, Southeast Asia set off an upsurge in spinning and building factories. According to Vietnam’s “Investment” report, some large-scale spinning companies in Vietnam have started production and started construction. In 2012, the yarn self-sufficiency rate will increase to 70%, gradually changing the long-term dependence of imports on spinning. At the end of 2011, the Tingwu Polyester Yarn Plant invested by Vietnam Petrochemical Fibers Co., Ltd. was completed and put into production. The yarn production in 2012 was approximately 150,000 to 175,000 tons, which will meet the demand of 40% in the domestic market. In June this year, Japan's ITOCHU Corporation will start construction of spinning mills in Nanding Province. It is expected to start production in 2013 with a total investment of 120 million U.S. dollars for 50,000 spindles. After the project is put into production, it will further improve the self-sufficiency of spinning in Vietnam.

At present, there are more than 3,700 textile and garment enterprises in Vietnam. The yarns needed for production are mainly imported from mainland China, Taiwan, South Korea and India. The Vietnam Textile and Apparel Association recently called on the government to give greater support to enterprises in terms of policies and financing and promote the development of upstream industries. At the same time, actively guide enterprises to change the mode of production, and gradually shift from feed processing to FOB (buying raw materials, exporting finished products), ODM (from design to production) and OBM (using Vietnamese brands).

For a long time, most of the raw materials for the textile and garment industry in Vietnam depend on imports. Vietnam needs 400,000 tons of cotton each year, but the domestic can only meet 3,000 tons, less than 1%; rayon yarn needs 400,000 tons, but the domestic can only meet 120,000 tons, about 30%; need 6 billion meters of cloth, but domestic Can only meet 800 million meters, about 13%; production of machinery and equipment, chemical products and dyes rely entirely on imports. The government has formulated a series of preferential policies to encourage domestic and foreign investors to develop upstream industries.

The textile and garment industry has always been Indonesia's largest industry. Due to the relatively low wages of Indonesian textile workers and the strong support of the Indonesian government for investment in the textile and clothing industry, many international importers of clothing have increased their imports to Indonesia. In addition to the domestic market, Indonesian textiles have a certain market in the Middle East, Africa and the United States. In recent years, as the political situation has stabilized and the middle class continues to increase, Indonesia’s economic fundamentals have been developing well, and the scale of foreign investment in Indonesia has gradually expanded.

Over the years, the problem of aging equipment has been plaguing the textile industry in Indonesia and the introduction of a large number of advanced textile machinery. The Indonesian government has provided corresponding support to the textile industry in recent years. Therefore, the sales of Indonesian textile machinery still have great potential. This can be seen in the growth of sales of textile machinery in the three centres of the Indonesian textile industry, namely Greater Jakarta, West Java and Solo (Central Java).

Pakistan is one of the world's major textile producers and exporters, and its spinning capacity ranks third in Asia. However, in recent years, it has been affected by various unfavorable factors at home and abroad and it has gradually become less advantageous in international competition. Due to the lack of electricity and natural gas and unstable social environment, some investors relocated their factories to neighboring Bangladesh. In order to revitalize the textile industry, Pakistan’s Ministry of Textiles recently approved the Technical Transformation Fund Program (TUF), which may take effect from July 2012. As part of the plan for the technical reform fund, the Central Bank of Pakistan will support textile enterprises throughout the country to increase their production capacity and upgrade their textile machinery. According to the technical reform fund program, large textile companies can obtain a 5% discount in updating technology, while small-scale enterprises can receive a 20% discount on bank loans and up to 10 million rupees on investment.

With the acceleration of the process of free trade integration, and in accordance with the principle of market-based allocation of resources, some of China's dominant textile companies have also turned their attention to Southeast Asian countries and tried to “go global” to set up production bases. In addition to the tax exemption for imported raw materials enjoyed by certain Southeast Asian countries, advanced economies such as Europe, the United States, Japan, and other countries also provide preferential export policies for cotton textiles.

With the rising domestic costs and the manufacturing advantages of Southeast Asian countries, the number of spinning capacity in China will gradually increase. This will also drive demand for textile machinery.