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Xuancheng City People's Government Notice Regarding Issuance of the Xuancheng City Textile Industry Adjustment and Revitalization Plan

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Xuancheng City People's Government Notice Regarding Issuance of the Xuancheng City Textile Industry Adjustment and Revitalization Plan Xuancheng City People's Government Notice Regarding Issuance of the Xuancheng City Textile Industry Adjustment and Revitalization Plan Xuan Zheng [2009] No. 76 To all county, city, and district people's governments, governmental departments, and associated institutions: The Xuancheng City Textile Industry Adjustment and Revitalization Plan is hereby issued to you. Please organize and accomplish it accordingly to the local situation. December 31, 2009 Xuancheng City Textile Industry Adjustment and Revitalization Plan The textile industry is one of the traditional fundamental industries and an important livelihood industry for the people. It exerts great importance in maintaining market prosperity, expanding exports, maintaining the employment rate, increasing local economic income, and other such areas. In order to respond actively to the international financial crisis, keep up with the general guideline of “maintain economic growth, expand internal consumption, and reorganize economic structures” from the Party Central Committee, the State Council, and the provincial government, seize the opportunity of “building a Wan River city-band model industrial transfer zone,” advance textile industrial structural restructuring and technical transformation, cultivate advantageous enterprises, and achieve aggregation of the textile industry comprehensively. This plan is formulated according to the Anhui Provincial Textile Industry Adjustment and Revitalization Plan and according to a realistic evaluation of the textile industry. The timeline of this plan is 2009-2011. I. Introduction of reality and situation of our city's textile industry The textile industry of this city started early with an excellent foundation, which has given the industry great importance and influence in the whole province. In recent years, the production and sales from the textile industry have continued to grow. Textile enterprises have increased in number and scale. The products and the structure of production have also gradually been optimized. The textile industry began in apparel production, and gradually formed a quite complete production structure consisting of apparel textiles, domestic textiles, and industrial textiles. In 2008, there were 81 large textile enterprises, with 10,900 employees, 1.26 billion RMB of total revenue, 120 million US dollars of total export value, and 2.1 billion RMB of total net worth. These enterprises own 5,000 spindles for cotton spinning, more than 4,000 looms, 2,000 spindles for flax spinning (among which 1,000 spindles are for long threads), 28,000 spindles for silk reeling (among which there are 64 sets and 25,600 spindles of automatic reeling machines), 2,500 silk looms (among which there are 48 arrow looms), and 6,300 clothing processing machines. The enterprises produced 1.45 billion RMB of total domestic industrial production value. Cotton and linen textile production accounted for 367 million RMB, clothing production accounted for 350 million RMB, silk reeling and silk and satin production accounted for 480 million RMB, and home textile and industrial textile production accounted for 220 million RMB. Since the second half of 2008, influenced by the global financial crisis, export of textile products has faced challenges. This situation has led to the decrease of enterprises’ revenue, deficit expansion, and increased losses. The industry's ability to increase employment has also been weakened and the industry's development has been challenged severely. Meanwhile, the long-term accumulated problems and conflicts holding back the textile industry have appeared together. Some of these problems were represented by enterprises' weak indigenous innovation ability, lagging research and development of new products, outdated processing machinery in production of main textiles, such as cotton, linen, and silk, and low industrial concentration. Most enterprises are small in scale and their profit levels are low, and some factories lack a sufficient number of employees and are under the burden to reduce energy consumption and waste output. In general, the textile industry is facing unprecedented challenges. It shall be seen, while the textile industry is facing many difficulties, opportunities coexist with these challenges as risk contains opportunity. Since the second half of 2008, the national government and local government have heightened the importance of the restructuring and development of the textile industry and issued a series of supporting policies. The increase of tax refunds for exports is beneficial for increasing the advantage of export textile goods and enterprises’ profits. Also, policies to stimulate domestic consumption increases the domestic consumption of textiles and clothing. As the disposable income of residents increases stably, the purchasing power of both urban and rural populations is to increase. At the same time, the geographic advantage of neighboring Jiangsu, Zhejiang, and Shanghai and the ongoing construction of development zones in our city provide an opportunity to become a new host of the textile enterprises gradually transferring out of Jiangsu, Zhejiang, and Shanghai, as well as other developed regions of the east coast. This advantage attracts direct foreign investment in the textile industry and further facilitate the formation of industrial clusters. All of these opportunities provides a broad space of development that will encourage healthy growth of the textile industry of our city. II. Guiding ideas, basic principles and goals (I) Guiding philosophy Guided by the Scientific Outlook on Development and the main theme of development strategy transformation. The focus is on apparel production and textile products with high additional value. Key point is the application of new material, the development of new techniques, and the promotion of brand and quality, which significantly impacts improving the development of the industry to enhance the progress of industrial technologies, cultivate promising and leading enterprises, and heighten the entire developmental capability of the industry. (II) Basic principles Pursue jointly and integrate exploration of international markets and expansion of domestic markets. Overall planning to cover both international and domestic markets by adopting comprehensive measurements. On the basis of strengthening and exploring international markets, maintain the stability of export value, while cultivating and expanding domestic consumption. Support backbone enterprises and promote the integration of small- and medium-sized enterprises. Key competitive enterprises encouraged to play a leading role in industrial adjustment and revitalization. Competitive corporate mergers and acquisitions supported to build stronger and more competitive corporations. Small- and medium-sized enterprises with good performance and development potential to receive help to cope with the crisis and to enhance their ability to resist risks. Encourage the integration of indigenous innovation and technological innovation and eliminating outdated technologies. Give full play to technological progress bringing forward the key links and important areas of the industry. Accelerate the pace of technological development and industrialization by promoting technological innovation in cotton, silk, and other key components of the industry to speed up the elimination of outdated technology and of low production capacity. Give free rein to the role of market mechanisms and integrate strengthening policy guidance. Free rein given to market forces, the basic role of which is allocating resources. Promote industrial restructuring, strengthen enterprise management, and achieve a situation of the survival of the fittest. Strengthen policy support and guidance, maintain stable industrial development, and promote the optimization and upgrading of the industrial structure. (III) Adjustment and revitalization goals The building of a textile industry cluster (concentration area) aims to achieve an optimized industrial structure, strong innovation ability, influential brands, high market share, strong core competitiveness, complete industrial chain, etc. and create three major industrial chains: silk textiles, cotton textiles, and apparel and home textiles. To the year 2011: 1. Maintain stable production growth. The large textile enterprises strive to produce an output of three billion RMB, for an average annual increase of 28 percent. Of this revenue, cotton textiles to account for 600 million RMB, for an average annual increase of 15 percent. Silk to account for 700 million RMB, for an average annual increase of 20 percent. Home textiles and industrial textiles to reach revenue of 800 million RMB, for an average annual growth of more than 50 percent. Accelerate increasing of apparel production capacity, so that the proportion of the clothing textile industry in the city's total industrial output value increases from 24 percent in 2008 to around 40 percent by 2011. 2. Substantially promote backbone enterprises. Cultivate three enterprises with annual sales revenue exceeding 200 million RMB and ten enterprises with annual sales revenue reaching 100 million RMB. 3. Increase the proportion of advanced technology and equipment. Eliminate outdated production capacity. To reach the national advanced level, the proportion of autoconers for cotton production to increase to 90 percent, the proportion of shuttleless looms and combing machines to increase to about 45 percent. The proportion of automatic silk reeling
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