During the first three quarters of 2012, textile machinery industry achieved main business income of 80.664 billion yuan, a year-on-year increase of 6.33%; sales value of 79.299 billion yuan, growing 7.73% year on year; a total profit of 4.623 billion yuan, a year-on-year growth of 1%; the loss of enterprises amounted to 331 million yuan, an increase of 175 million yuan; the range of loss increased six percentage points over the same period of 2011 to 15.83%. The textile machinery import and export value totaled 4.816 billion USD, down by 16.49% year on year. Among them, export grew 1.62% to 1.679 billion USD, while import dropped 23.76% to 3.138 billion USD.

Gao Yong, Vice President and Secretary General of China National Textile & Apparel Council, made a comprehensive analysis of the overall development trend of the textile industry in 2012 as well as its influence factors,and put forward some suggestions for the development of enterprises in 2013.

Gao Yong said that since 2012 China's economy has suffered an obvious decline in terms of growth rate due to the lack of external demand and the domestic investment structure adjustment. For the textile industry, in addition to the impact of the global economic downturn, the huge domestic and international cotton price differences not only has brought obvious pressures to the textile enterprises, but also has led to the downward trend of textile enterprise benefit. And the doldrums in the cotton and chemical fiber industries have exerted direct influences to the sales of textile machinery. According to Gao, there is still no effective way to solve cotton price difference which will still continue influencing the operation of textile industry. Therefore, he reminded the textile machinery enterprises to accelerate the adjustment of product structure in order to change as soon as possible China’s textile machinery industry’s over-reliance on cotton and chemical fiber equipment.

“Textile machinery situation and macro-economic situation are inseparable”, said Gao Yong. The enterprises should pay close attention to the adjustment of textile industry, product, and area, keeping up with the industry adjustments to adjust the product structure of textile machinery.

Wang Shutian, President of China Textile Machinery Association, summed up the development of textile machinery industry in 2012 into two characteristics. Firstly, the structure of product sales has changed a lot. For example, the sales volume of cotton spinning machines is more than 8,800 with a declining of 35.57% year on year, wherein there are over 2,800 spinning frames of 1008 spindles with an increasing of 18.88% year on year. This falling and rising is a hallmark of change as well as a concentrated reflection of the industry technological progress for many years. Secondly, the enterprise M & A action represented by Jiangsu Jinsheng Industry Stock Co., Ltd.’s acquiring of Oerlikon’s Natural Fiber and Textile Machinery Parts Division and the enterprise transformation represented by Tonghe Textile machinery manufacturing Co., Ltd.’s engagement into cotton spinning frame manufacturing industry took some changes to the patterns of textile machinery manufacturing enterprises. This means that textile machinery industry may welcome a new pattern in the year of 2013.

When it comes to the developmentof textile machinery industry, Wang Shutian said that in the future, no matter textile industry stays in China for
development or goes out to Southeast Asian countries, textile machinery sales can follow up. However, at present China’s textile machinery enterprises are weaker in global combat, and wanting in higher industry internationalization. For the textile industry, two problems are to be coped with: one is to raise t h e c o re i n n o v a t i o n a b i l i t y o f t h e enterprises; the other one is to improve concentration of industry, avoiding excessive competition. Wang Shutian said that the textile machinery market is in the winter, hoping that the enterprises can take this opportunity to conduct an effective self adjustment.

The attending enterprises generally believe that the market will present a polarization in 2013 that a portion of the equipment may be in a very considerable demand, while a portion might suffer gloomier sales than last year. The cotton and chemical fiber equipment manufacturing enterprises
believe that if the huge domestic and international cotton price difference cannot be changed, textile machinery will have to face a more severe situation this year. Looms, especially air jet loom companies have confidence in this year’s market because of a large number of orders they harvested in 2012. They believe this year will be better than last year for the reason that their users have to choose the equipment of high automation and efficiency.

A l s o s o m e b o d y t h i n k s t h a t , n o m a t t e r h o w t h e t e x t i l e m a r k e t g o e s , t h e re a re a l w a y s n e e d s f o r investment and technical reformation in textile industry. The most affected in the textile industry last year are small and medium enterprises, while some large enterprises with strong c o m p e t i t i v e n e s s s t i l l m a i n t a i n e d a g r o w t h w i t h w e l l - a r r a n g e d technological transformation in good order. Fujian is particularly evident that the technical transformation investment into Changle textile industry amounted to 4.3 billion yuan. According to the local textile bureau, at present among the building textile projects, 30 ones are warp knitting, 27 cotton spinning, and seven chemical fibers. There will be further investment this year, and all these projects are to be strongly supported by equipment.

S e v e r a l t e x t i l e e q u i p m e n t companies exchanged their product development and production during the meeting, to share their experience in how to reduce cost and improve efficiency to win the maximum benefit under such adverse circumstances in 2012.