08 Years Or Cotton Textile Industry Is The Most Complex And Heaviest One Year.

The rising prices of raw materials, tight monetary policy, the accelerated appreciation of the renminbi, the reduction of export tax rebates, trade frictions and the implementation of the new labor contract law seem to have caused the negative factors overnight and have caused tremendous pressure on the cotton spinning industry.

Under high pressure, as a national cotton textile Province, how can Hubei enterprises survive?

Zeng Zhong has worked in 4 of the 6 largest cotton textile enterprises in Wuhan, and its crisis response capability has always been praised by peers.

Because of the reasons mentioned above, the annual production cost of cotton is increased by about 20000000 yuan.

Under the ingenious response of Zeng Zhong Yi, the cotton group has maintained a steady market share at home and abroad, with an annual export volume of US $20 million.

"The second crisis occurred between 2004 and 2006. A large number of cotton spinning enterprises appeared policy bankruptcy, and state capital gradually withdrew from this completely competitive industry."

The unpredictable exchange rate has caused many enterprises to suffer a lot.

In this regard, one of the ways was to increase the import of raw material cotton while exporting finished products.

"Last year, the company exported $20 million in textiles and imported 20 million dollars in cotton at the same time," he said.

This practice has been called "to conquer the country by foreigners".

In contrast, the price of cotton abroad is 1000 yuan to 2000 yuan lower than that in the domestic market, and the cost of imported cotton can be greatly reduced.

Besides using the exchange rate strategy, cotton also digested the new cost internally.

In recent years, one cotton distribution has implemented the strategy of moving from central city to outer suburbs and surrounding counties and cities.

The direct effect of pfer is that it greatly saves traffic and energy consumption and can save more than 10 million yuan per year.

Zeng Zhong Yi, who is good at dancing, finally tells the fellow workers who are still struggling in the crisis.