Xinjiang strictly controls the backward textile production capacity. Xinye Textile said that the project in Xinjiang is operating normally.

Securities Times reporter Kang Yin

Recently, the "Emergency Notice on Strictly Controlling the Disorderly Development of the Cotton Textile Industry" issued by Xinjiang has attracted market attention. A paper announcement by Xinye Textile (002087) clarified the ins and outs of the incident.

Xinjiang decided to suspend the construction of the proposed construction of the cotton spinning industry, mainly to control the disorderly advancement of the backward textile production capacity, and has no impact on the production lines that have been put into production. At present, Xinye Textile's investment projects in Xinjiang are operating normally, and the introduction of this policy will not have a negative impact on the company.

Control the backward production capacity disorderly

The above-mentioned “Notice” in Xinjiang indicates that the district government has requested to suspend the construction of the proposed project for the cotton spinning industry, suspend the procedures for cotton spinning project land use, environmental impact assessment, project filing and project construction, and concentrate policy funds on clothing with large employment capacity in the future. The knitting, home textile and other industries have given greater support, and in turn promoted the Xinjiang textile and garment industry from high-speed development to high-quality development, and further optimized the layout of the textile and garment industry.

Relevant cotton spinning industry analysts, the purpose of the policy is to adjust the financial funds for rational distribution, will give greater support to the clothing, knitting, home textiles and other industries with large employment capacity, to achieve sustainable and healthy development of the textile and garment industry chain, is expected to be Xinjiang Cotton spinning enterprises that are under construction and ready to build have a great impact.

In February of this year, the “Xinjiang Textile and Apparel Industry Development Plan (2018-2023)” issued by Xinjiang proposed that by 2023, it will reach a cotton spinning capacity of 20 million spindles, more than 50,000 looms, 250,000 tons of knitted fabrics, and clothing. It has reached 800 million pieces (sets), and the employment capacity of the whole industry chain has reached 1 million. Among them, the employment of the southern labor force in the whole industry in Xinjiang has reached more than 650,000.

The above-mentioned development plan clearly optimizes and upgrades the cotton spinning industry, synergistically promotes the chemical fiber industry, accelerates the cultivation of industrial textiles, and develops printing and dyeing industries in six areas with high standards.

Invested 1 billion to build a pneumatic spinning project

In November last year, Xinye Textile and Xinjiang Alashankou Comprehensive Bonded Zone Management Committee reached a strategic cooperation, with wholly-owned subsidiaries as the main investment, and invested in the construction of a high-end air-jet spinning project in the Alashankou Comprehensive Bonded Zone.

The project will be constructed in two phases. The first phase will mainly build 350,000 spindles and related supporting facilities, warehousing and other projects, covering an area of ​​about 300 acres. The second phase will expand production to 500,000 spindles and carry out related downstream weaving industry chain projects. The total investment of the project is 1 billion yuan. After all the products are put into production, the annual operating income is expected to be 1.5 billion yuan and the annual profit is more than 200 million yuan.

Xinye Textile believes that because the project can not only enjoy the preferential policies of supporting textiles and garments in Xinjiang, but also enjoy the preferential policies of international low-priced cotton in the bonded area, this will help realize the development model of the company's full value chain.

Regarding the current policy changes in the cotton textile industry in the autonomous region, Xinye Textile said that the construction of the proposed construction project for the suspension of the cotton spinning industry in Xinjiang was mainly aimed at controlling the disorderly advancement of the backward textile production capacity and had no impact on the production lines that had been put into production. The development of Xinye Textile in Xinjiang is positioned as high-grade tooling equipment and high-grade textile products, expanding the employment of personnel and achieving good economic and social benefits.

At present, Xinye Textile's investment projects in Xinjiang are operating normally, and the introduction of the above policies will not have a negative impact on the company.