BeaverLake6 Report
BeaverLake6 Report

China Textile

China is one of the world's leading producers of technical textiles and products made from technical textiles. It is a pleasure to announce a media partnership between BeaverLake6 Report and China Textile magazine. China Textile is the only English language print media source published by the China National Textile and Apparel Council (CNTAC) and, in its prominent position, serves as the leading source for news on the China textile industry. 

 

Zhao Hong, the Editor-in-Chief, and Flora Zhao, the Director of the Editorial Department, oversee China Textile's technical textiles contributions for BeaverLake6 Report. Mr. Zhao holds two official positions: 1) Director of International Trade Office of the China National Textile and Apparel Council, a national confederation of all textile-related industries, and 2) Vice President of the China Knitting Industry Association. 

 

Steve Warner, Publisher

Posted June 18, 2018

Status Quo of China's Nonwovens and Industrial Textiles Industry in 2017

by Zhao Zihan

 

In 2017, the nonwovens and industrial textile industry in China continued to deepen the reform of the supply-side structure and ensured the sustained and stable development through technological innovation and refined management. The investment in fixed assets continued to maintain a rapid growth, and the quality of operations maintained a good level. Exports reversed the slow growth or even declining trend in recent years. Due to the fluctuation of the price of major fiber raw materials and the rapid increase in the effective supply of some products, the profitability of the industry slightly decreased compared with the same period of last year; the growth rate of industrial added value fell to 4.0%; and the total profit growth in some areas declined.

 

Overall Performance of the Industry

 

Production growth rate falls

 

Since the 12th Five-Year Program period, the production of China’s industrial textiles industry has maintained a rapid growth. The total fiber processing has increased from 9.1 million tons in 2011 to 14.5 million tons in 2016, an average annual growth of 8.1%, making it the largest in industrial textiles producing, trading, and consumption in the world. The rapid growth of China’s industrial textiles is mainly due to the construction of China’s high-speed rail, highways and water conservancy infrastructure, the gradual tightening of environmental protection policies, the improvement of people’s living standards and the improvement of medical and health standards. In 2017, China’s economic structure was accelerated, and the industrial textiles industry was facing a more complicated development environment. The growth rate of production fell back to 4.00%, and the total fiber processing volume for the year was 15.083 million tons (The total amount of industrial fiber processing includes the amount of fiberglass used). Various fiber processing is shown in Table 1. The production of textiles for filtration and separation, medical and hygiene, geotechnical and building & construction continued to maintain a relatively high growth rate, while the growth rate of production of textiles for synthetic leather and textiles for sport and leisure was relatively lower.

 

 

Table 1  2017 China’s Industrial Textile Industry Fiber Processing Capacity

 

Categories

Output in 2017 (10,000 tons)

Growth rate in 2017

Medical and Hygiene Textiles

155.5

7.50%

Filtration and Separation Textiles

130.9

8.20%

Geotextiles

99.6

6.80%

Building and Construction Textiles

75.0

7.00%

Transport Textiles

78.7

3.30%

Protective and Safety Textiles

38.7

5.00%

Structural Reinforcement Textiles

124.8

3.60%

Agricultural Textiles

79.5

2.50%

Packaging Textiles

103.9

4.00%

Sport and Leisure Textiles

40.8

2.00%

Canvas and Tarp Textiles

249.7

3.26%

Synthetic Leather Textiles

113.1

1.50%

Isolation and Insulation Textiles

46.0

2.50%

Cord (Cable)Textiles

76.6

5.00%

Industrial Carpet Textiles

47.7

2.00%

Others

47.8

3.00%

Categories

1508.3

4.00%

Source: China Nonwovens and Industrial Textiles Association

 

Investment maintains a rapid growth

 

Fixed asset investment is an important indicator of industry vitality and entrepreneurial confidence. It can be seen from Table 2 that in 2017, although the growth rate of the industry’s production declined, the investment in fixed assets continued to maintain a rapid growth. The total investment amounted to RMB 84.925 billion, which represented a year-on-year increase of 2.76%. It was at the highest level in all textile industries and was 18 percentage points higher than the investment in 2016, re-entering the rising period. The investment in nonwovens accounted for 44.1% of the entire industry, with a growth rate of 22.38%; the investment growth rate of rope cables was close to 50%; the investment in canvas and tarp was increased by 26.22%; the investment growth in filtering, geotechnical, transportation and other fields reached 28.41 %. The tyre cord fabric industry continued its decline for many years, and investment dropped by 22.85%. The investment in fixed assets in the industry is mainly the increase in new production capacity, especially in the fields of spunbonded nonwovens, spunlace nonwovens, geotechnical textiles, building & construction textiles, and filtering and separating textiles. And the companies also put more investment in driving the technological transformation and upgrading of existing equipment, especially energy conservation & emission reduction and smart manufacturing.

 

Table 2  Investment in Fixed Assets of China’s Industrial Textile Industry

              in 2017

Sectors

Investment (billion RMB)

Investment Groeth (%)

Industrial textiles

84.93

22.76

Nonwovens

37.48

22.38

Ropes and cables

8.99

48.92

Ribbons and tyre cord fabric

4.71

-22.85

Canvas and tarp

9.90

26.22

Other industrial textiles

23.86

28.41

Source: National Bureau of Statistics

 

Good economic benefits

 

According to data from the National Bureau of Statistics, in 2017, the main business income and total profit of enterprises above designated size in the industrial textile industry in China were RMB 289.75 billion and RMB 16.51 billion respectively, an increase of 5.19% and a decrease of 3.90%. It is the first falling that total profits had ever seen since the 12th Five-Year Program. The reasons for the decline are as follows: First, the ribbons and tyre cord fabric sector continued to slump. In 2017, the main business income in this area was reduced by 3.44%, and the cost was reduced by only 1.89%, resulting in a decrease in its gross profit margin by 1.41 percentage points. The total amount has been reduced by nearly 30%. Second, in 2017, the price fluctuations of major chemical fiber raw materials made it difficult for enterprises to transfer all price pressures to users in a short period of time, affecting the profitability of the company. Third, the industry’s investment has been active and production capacity has grown rapidly in recent years. It is difficult for the market to fully absorb the new capacity in the short term, which has led to fierce competition among companies in some areas and the sales price of products has been under greater pressure. According to the survey conducted by the association, it is difficult for companies to generally reflect the sales price of products in escalation with raw materials. Customs data also show that the export prices of most commodities have declined to varying degrees.

 

Of the five categories of products given by the National Bureau of Statistics, the other industrial textiles including filtration, geotechnical, protective, and automotive textiles exhibited the best development (see Table 3), and the total income from main operations and total profit are respectively RMB 44.262 billion and RMB 2.874 billion, with an increase of 13.35% and 22.28% respectively. The gross profit margin was 15.53%, an increase of 0.51 percentage point, and the profit rate was 6.49%, an increase of 0.47 percentage point, which was nearly 0.8 percentage point higher than the industry average, reflecting the good development potential and profitability. The development of enterprises in this area is in good condition. On the one hand, these products have high technological content and strong market competitiveness, playing an increasingly important role in all fields. On the other hand, these areas are facing markets of high-speed development including environmental protection, infrastructure construction, and transportation, etc., enjoying ample room for development.

 

Table 3  Economic Benefits of China’s Industrial Textile Industry in 2017

Categories

Unit

Industrial textiles

Nonwovens

Ropes and cables

Ribbons and tyre cord fabric

Canvas and tarp

Other industrial textiles

Main Business Income

Billion RMB

289.750

139.573

30.055

50.842

25.018

44.262

±%

5.19

6.73

4.28

-3.44

3.56

13.35

Main Business Cost

Billion RMB

250.242

119.947

26.059

45.484

21.364

37.388

±%

5.30

6.51

4.94

-1.89

3.40

12.66

Gross Margin

%

13.64

14.06

13.30

10.54

14.60

15.53

± %

-0.09

0.18

-0.54

-1.41

0.13

0.51

Total Profit

Billion RMB

16.506

8.399

1.817

2.130

1.286

2.874

±%

-3.90

-1.03

0.73

-29.86

-14.13

22.28

Profit margin

%

5.70

6.02

6.04

4.19

5.14

6.49

±%

-0.54

-0.47

-0.21

-1.58

-1.06

0.47

 

Source: National Bureau of Statistics

 

Rebounded imports and exports

 

With the technological advancement of China’s industrial textiles, the further promotion of the “Belt and Road” Initiative, and the economic recovery of major developed countries, the companies in the industry have made great progress in exploring the international markets. In 2017, the industrial textile industry exported 24.261 billion U.S. dollars, a year-on-year increase of 5.99%, reversing the situation in which exports have been growing at a low rate for many years or even declined. In the same period, the imported industrial textiles worth 7.054 billion U.S. dollars, a year-on-year increase of 12.18%. The economy is full of vitality and the demand for high-tech and high-quality products is still relatively strong.

 

  • The main export products

In 2017, the export value of major products maintained a varying degree of growth. The export value of industrial coated fabrics, wiping cloth, industrial fiberglass products, and tyre cord fabrics increased by more than 10%. Felt cloth, tents, ropes and cables, nonwoven protective clothing and airbags also enjoyed faster growth, but the packaging textiles decreased by 2.93%, and the medical dressings was basically the same as last year (as shown in Table 4).

 

Table 4  Main Export Products of China’s Industrial Textile Industry in 2017

Products

Export Value (100 million USD)

Growth Rate of Export Value

(%)

Growth Rate of Export Volume

(%)

Price Changes (%)

Industrial textiles

242.61

5.99

-

-

Industrial coated fabric

33.54

10.21

8.09

1.95

Nonwovens

26.12

2.31

7.48

-4.80

Felt and tents

24.08

8.38

15.04

-5.79

Synthetic leather and base cloth

21.15

2.31

3.96

-1.59

Packaging textiles

17.36

-2.93

-4.48

1.62

Diapers and sanitary napkins

16.07

5.41

12.42

-6.24

Ropes and cables

15.81

8.05

7.85

0.19

Wiping cloth

9.72

10.13

12.71

-2.29

Industrial glass fiber products

9.17

10.8

12.59

-1.58

Nonwoven protective clothing

8.63

8.77

9.38

-0.56

Airbags

8.34

7.27

8.69

-1.30

Medical dressing

7.69

0.61

5.31

-4.46

Tyre cord fabric

6.9

15.13

8.56

6.06

 

Source: General Administration of Customs

 

l The main export markets

Figure 1 shows that Asia is the largest export market of industrial textiles in China, accounting for 47.2% of annual exports, followed by North America and the European Union with a share of 16.9% and 15.7%, respectively. The share of Africa and Latin America is 6.6% and 6.9% respectively.

 

Source: General Administration of Customs

 

Figure 1  Main Export markets of China’s Industrial Textile Industry in 2017

 

The English corresponding to the Chinese Characters in the above figure

亚洲:Asia

非洲: Africa

欧盟:European Union

非欧盟:Non-European Union

北美:North America

拉美:Latin America

大洋洲:Oceania

 

The United States is still the largest country where Chinese industrial textiles are exported. Table 5 shows that in 2017, export value amounted to 3.74 billion U.S. dollars, an increase of 7.09% year on year. Japan was the second largest one, but exports fell by 3.12%. In recent years, China’s exports of industrial textiles to Vietnam and India have grown relatively rapidly, which were respectively 1.35 billion U.S. dollars and 1.03 billion U.S. dollars in 2017, with respective growth rates of 13.1% and 15.23%. The top five countries in export value accounted for 37.8% of China’s total exports. In addition, China’s Hong Kong, Germany, Indonesia, Russia and the Philippines are also important markets. The export value of these 10 countries and regions accounted for 51% of the total.

 

Table 5  Main Export Markets of China’s Industrial Textile Industry in 2017

Countries

2017Value (USD)

Growth Rate (%)

The United States

3,736,901,092

7.09

Japan

1,846,752,612

-3.12

Vietnam

1,354,639,868

13.10

South Korea

1,160,605,579

5.87

India

1,029,693,879

15.23

Source: General Administration of Customs

 

Coated fabrics, synthetic leather and its base cloth, and nonwovens are China’s major export products to India and Vietnam. Export value is relatively large, but in terms of export prices, Vietnam is higher than India. Vietnam and India are countries with rapid economic growth around China. The demand for various industrial textiles is relatively large. China’s industrial textile industry has strong advantages in equipment manufacturing, technological innovation, product quality, etc. It is superior to European and American countries and other developed countries in terms of price, and geographically adjacent to it, the overall advantages are very obvious. It is to continue to increase the development of these two markets.

 

l Imports

 

In 2017, China imported industrial textiles of 7.054 billion U.S. dollars, an increase of 12.18% year on year. Among them, diapers and sanitary napkins saw the largest amount of imports, reaching 1.423 billion U.S. dollars. Imports of nonwovens, industrial coated fabrics, airbags, and industrial fiberglass products were also relatively high, at 883 million U.S. dollars and 768 million U.S. dollars, 638 million U.S. dollars, and 606 million U.S. dollars respectively. In addition to airbags, the imports of the other four categories of products were all increasing; however, the import prices of major products declined at different rates. Japan, China Taiwan, South Korea, the United States, and Germany are the main sources of imported industrial textiles in China, with imports accounting for 78.4% of the total.

 

Status Quo of Key Sectors

 

Medical and hygiene textiles

 

Medical and hygiene textiles are widely used in the industrial textiles industry. From the perspective of disposable sanitary products, the market for women’s sanitary napkins is relatively mature and has a high penetration rate. It also maintains a natural growth every year at about 5%, and the quality of products continues to grow toward high levels. Baby diapers are still a market with rapid growth at about 15%. The industry continues to innovate in surface materials, absorbent cores, product design, etc. The Chinese market has been able to lead the innovation and development of the global diaper industry; and adult incontinence products are still in the market cultivation period of very large potential, with an annual growth of more than 30%. However, to achieve a breakthrough needs a relatively long-term process based on joint efforts from the level of economic development, consumption habits, and related national policies. Wiping products (dry towels and wipes) is another high-growth market with a growth rate of more than 10%. In particular, as economic conditions improve and the pace of life accelerates, the scope of application and use of disposable wiping products will continue to expand. In 2017, the investment and production of spunlace nonwovens and spunbonded nonwovens for sanitary materials continued to grow at a high rate. China’s sanitary materials also actively explore overseas markets. In 2017, the export value of diapers and sanitary napkins reached 1.607 billion U.S. dollars, an increase of 5.41% year on year, of which adult incontinence goods exports reached 240 million U.S. dollars.

 

The development of the medical textile industry is relatively stable, and the degree of concentration of the industry is relatively high. The export proportion of the industry is relatively large. In 2017, China exported 893 million U.S. dollars worth of disposable nonwoven protective clothing, an increase of 8.77% year on year. The export of medical dressings such as gauze and bandages totaled 769 million U.S. dollars, a year-on-year increase of 0.61%. Due to the factors of China’s medical insurance policy and product certification system, the proportion of disposable medical textiles used in hospitals in China is not high, and the products are mainly produced in the form of OEMs for exports.

 

According to the association’s research on key enterprises in the field, the company’s main business income and total profit respectively increased by 15.55% and 16.23% in 2017, and the profit rate was basically the same as that of the same period of last year.

 

Geotextiles and construction textiles

 

The market for geotextiles and construction textiles is closely related to the country’s infrastructure construction. In 2017, the investment in fixed assets of the railway industry in China completed 801 billion RMB, with 35 new projects and 356 billion RMB new investment. The accumulated investment in highway construction reached 2116.25 billion RMB, a year-on-year increase of 17.7%, and the implementation of water conservancy investment was 717.6 billion RMB, creating a new record high. The country’s huge investment in fixed assets and the advancement of the “Belt and Road Initiative” have contributed greatly to the development of China’s geotextiles and construction textiles industry.

 

Although the overall development of the industry is relatively good, due to the impact of the national environmental protection policy, the production of small enterprises within the industry is affected. In the long run, with the adjustment of national engineering bidding policies and improvement of engineering projects on geotechnical materials performance indicators, small companies with weak product development and poor quality control capabilities will suffer more upgrading pressures.

 

Transport textiles

 

Transport textiles are a relatively fast growing field in industrial textiles. First of all, the auto industry still maintained a certain growth. In 2017, China’s auto production was 29,015,400, an increase of 3.19% year on year, of which the growth rate of SUVs and commercial vehicles was 13.81% and 13.95% respectively, and the output of new energy vehicles was increased by 53%. China has become the world’s largest car producer. Secondly, textile materials have strong advantages over traditional materials in terms of weight, sound insulation, comfort performance, and environmental performance, showing an obvious trend to replace traditional materials. Thirdly, the application of new textile materials in vehicles is expanding. For example, microfiber materials are being more widely used in automobile seats, door panels, etc. High-performance fiber composite materials are gradually used in new energy vehicles. As technology matures and costs are reduced, the use of fiber composites in automobiles will become more widespread. In addition to automobiles, the application of textile materials in high-speed rail and aircraft is also expanding, including not only traditional seat fabrics but also new honeycomb materials, door panel materials, and filter materials.

 

It is more difficult for transport textile companies to enter the supply chain of auto companies and the cycle is longer. Therefore, the size of companies in the industry is generally large and the degree of industrial concentration is high. However, with the development of domestic auto companies, there are also some smaller supporting companies in the industry. According to the statistics of the association, in 2017, the main business income of the backbone enterprises increased by 8.75%, and the total profit was basically the same as last year.

 

Filtration and separation textiles

 

In 2017, China intensified efforts to improve the atmospheric environment, seeing significantly improved air quality, in which the filtration and separation textile companies have played an important role, and the industry has ushered in a rare opportunity for development. In 2017, the emission standards for air pollutants in the industrial sector were revised again, and a new round of environmental improvement reform of enterprises was emerging. The emission concentration of soot and dust less than 10 mg/Nm3 has gradually become normal.

 

Bag type dust removal has the characteristics of efficient purification of fine particles, wide range of processing air volume, and small influence of dust properties. Bag filter has become the mainstream dust removal equipment, and its industrial application is very extensive. The application ratio has been rising year by year. The reality shows that bag filter has gradually become the mainstream equipment for the efficient purification of particulate matter. Bag type dust removal has become the main force in China to achieve ultra-low emissions and upgrade the standard. In terms of water filtration, benefiting from the increase in environmental protection requirements, woven filter fabrics also developed rapidly in 2017, and the export value reached 129 million U.S. dollars. According to the survey conducted by the association, the main business income and total profit of backbone enterprises in 2017 increased by 21.97% and 13.95% respectively, and the profit rate was about 10%.

 

Filtration and separation textiles are industrial consumables. National environmental protection requirements will maintain relatively high standards. It is expected that the industry will continue to maintain a rapid growth. China has established a complete industrial chain from high-performance fibers to engineering services in this field, and it is highly competitive. However, market competition is not standardized. In particular, a large amount of accounts receivable has had an adverse effect on the development of the industry.

 

Structural reinforcement textiles

 

At present, China has become the world’s largest and fastest growing market for wind power generation, and offshore wind power has achieved rapid development. According to statistics, in 2017, China added 15.3 million kilowatts of grid-connected wind power, and cumulative grid-connected installed capacity reached 164 million kilowatts, accounting for 9.2% of total installed power generation capacity. Due to changes in policy, the newly installed capacity of wind power in China has continued to decline since 2015, but due to the increase in average stand-alone power, the use of glass fiber and carbon fiber still maintains a relatively high level.

 

With the technological advancement of domestic carbon fiber, China’s carbon fiber composite material industry has also achieved rapid development. However, compared with developed countries, applications are mainly concentrated in the field of sports and leisure products, and are now gradually being applied to transport, while being applied in aviation very little. According to customs data, in 2017, China exported 1,984 tons of carbon fiber and products, and the export value was 74.92 million U.S. dollars, an increase of 7.96% and 21.13% respectively over the same period of last year, while the value of imports during the same period reached 435 million U.S. dollars, an increase of 4.15% year on year.

 

Protective and safety textiles

 

The market for protective and safety textiles in China is very large. Front-line workers in the fields of fire protection, petroleum and petrochemicals, coal, steel and metallurgy all need high-quality products to ensure occupational safety. With the deepening of the people-oriented concept and the improvement of related safety production regulations as well as the development of the national emergency industry and the promotion of military-civilian integration strategy, the development of the security field has received more and more attention; however, compared with medical textiles, filtration and separation of textiles and other rapidly developing areas, this sector shows a slower pace.

 

On the one hand, it is related to the technology and products within the industry. China has made great breakthroughs in the development of various types of flame-retardant, cut-resistant, anti-static special fibers and fabrics, but subject to standards, testing and certification, the high-end market in this area, such as some protection products for special conditions, still needs to purchase from multinationals. Compared with the giants such as DuPont, 3M, and Honeywell, China’s enterprises are small in scale and have weak innovation capabilities. The gap between basic R&D and product development is relatively large. On the other hand, standards in the area of security protection are lagging behind, and procurement policies with low bid prices have also limited the application of new products and technologies to a certain extent, and cannot effectively protect workers.

 

According to the survey conducted by the association, in 2017, the main business income and total profit of key enterprises increased by 6.42% and 13.90% respectively.

 

Forecast of industry development in 2018

 

In 2018, China’s industrial textile industry is facing a more favorable environment. First of all, China’s economy and society will continue to maintain healthy and stable development. The GDP growth rate is expected to reach about 6.5%. The development environment faced by manufacturing enterprises is more optimized, for the state attaches importance to the development of the real economy, deepens the reform of the supply-side structure, vigorously reduces taxes and fees, and strongly encourages technological innovation. National income continues to grow, the gap between urban and rural areas is narrowed, and the integration of military and civilians is further advanced. The state will continue to increase investment in environmental protection, infrastructure construction and new energy sources, and the domestic demand market for major products of the industry will continue to maintain a rapid growth. The global economy continues to recover. The demand for industrial textiles in the developed markets of Europe and the United States continues to grow at a moderate pace. Countries and regions along the Belt and Road have a strong demand for the disposable sanitary materials, nonwovens, coated fabrics, geotextiles, and filter materials in China.

 

China’s industrial textiles not only have the largest scale in the world, but also have made tremendous progress in the training of professionals, special equipment and raw material guarantees. The gap between the developed countries in terms of technological innovation, new product development, refined management, and product quality has been gradually scaled down, achieving many achievements in smart manufacturing and green manufacturing. The strength of backbone enterprises has grown, with products not only meeting domestic needs, but also having strong competitiveness in the world.

 

In 2018, China’s industrial textile industry will develop steadily. The growth rate of production and sales will be slightly higher than that of 2017. Exports will continue to maintain a high growth rate, and profitability will be improved. The growth rate of investment in fixed assets may see somewhat dropping.

Status of China’s Industrial Textiles Industry in the First Three Quarters of 2017

Posted March 6, 2018

 

The present industrial textiles industry in China is centered on technical innovation and consumption upgrading, so as to intensify the strength in product development and innovation of technical processing equipment, enhance enterprise management, reduce cost and improve efficiency. 

 

After overcoming various adverse factors, the industry maintained stable growth in the first three quarters of 2017. According to the statistics of National Bureau of Statistics, the industrial added value of the above-designated enterprises in the industrial textiles industry in China had a growth of 3.9% in the first three quarters in 2017, in which, the main business income had an increase of 7.12%; the profit had a declining of 1.59%; the fixed investment had a year-on-year growth of 25.54%; the import and export of the industry had increase of 3.26% and 11.82% respectively.

              

Steady growth of the output of main products

 

According to the data of National Bureau of Statistics, the outputs of the non-woven fabrics and cord fabrics in the above-designated enterprises in China were 3.3468 million tons and 0.6498 million tons respectively, with the year-on-year growths of 0.64% and 3.47% respectively. 

 

It is worth keeping an eye on that: in recent years, the output of non-woven fabrics in China has witnessed fast growth. As the continuous increasing of cardinal number, the growth speed is slowing down gradually. However, the export amount of the non-woven fabrics keeps in growing. The customs data displays that the export amount of the non-woven fabrics had a growing speed of 6.15% in the first three quarters. 

 

The export volume of other main products also grew steadily. The export volume of coated fabrics grew by 6.52%; the wiping cloth grew by 11.72%; the felt and tent grew by 17.78%; the diaper and sanitary towel grew by 13.43%; the air bag restraint system grew by 7.3%. 

 

However, the export volume of some traditional products had declining in different degrees. For example, the textile products for packaging declined by 7.3%; the export quantity of the ordinary tape products declined by 6.28%. As a whole, the demand of China’s industrial textiles still kept on increasing steadily. However, the adjustment of demand structure enables the declining of the output of some products.

   

Recovery of industrial investment

 

The investment in industrial textiles industry presents a certain periodicity. The fixed-asset investment of the industry in the first three quarters of 2017 was 61.489 billion, which has extended the rising tendency since 2017. The year-on-year growth is 24.54%. The investment growth space further unfolds. The growing speed of industrial investment has stabilized from the declining channel of the recent years and recovered gradually.

 

The recovery of the investment acceleration in the industry in 2017 is because of the periodical regulation of the investment on the one hand. It indicates that the industry has basically consumed the increasing capacity of the previous years and has entered a new round of investment climax. On the other hand, the stable and rising macro-economic environment has also enabled the capital market to have better expectation to the industrial prospect.

 

Observing from different fields, non-woven fabrics are still the investment hot points of the industry. The investment amount of the first three quarters reached RMB27.948 billion, with a year-on-year growth of 29.27%. The investment in rope, cable and cord still maintained the vigorous momentum of the first half year, with a year-on-year growth of 57.31%. The investment in sail and canvas increased 17.96%. However, the investment in spinning band and cord fabrics continued to decline, with a year-on-year declining of 18.12%.

 

While the industrial investment continues to rise, the average asset-liability ratio of the industry declined by 0.93%; the interest expense increased by 4.32%.

 

The growth speed of the economic benefit indexes slows down

 

According to the data of National Bureau of Statistics, the main business income of the above-designated enterprises in the industry was RMB237.999 billion in the first three quarters, with a year-on-year growth of 7.12%; the total profit was RMB 12.972 billion, with a year-on-year declining of 1.59%. The average profit ratio of the industry was 5.45%, with a year-on-year declining of 0.48%; the loss scale of the industry was 9.63%. The loss amount of the unprofitable enterprises was RMB 385 million, with a year-on-year growth of 31.66%.

 

The main business income and total profit of the industrial textiles industry in 2011 had a growth of about 30%. In 2012 - 2015, the growth speed of the main business income maintained at a stable level after experiencing a period of declining. However, the growth speed of the total profit has not went out of the declining period. In addition, from the beginning of 2017, it has been lower than the growth speed of income. The slackening of profit acceleration is firstly because of the great fluctuation in raw material price, which has caused the rise of sales cost of the product, as well as the fierce market competition, which has caused the declining of the sales price of the product; secondly, the administration cost and sales cost of the enterprises had excessively rapid growth; thirdly, the continuous appreciation of RMB in the first half year has caused the exchange loss of export enterprises, thus enabling the financial cost to have fast increase.

 

From the perspective of different industries, the main business income and total profit of non-woven fabrics had a growth of 6.01% and 0.21% respectively; the profit rate was 5.64%; the loss amount of the unprofitable enterprises increased 32.04%.

 

The growth speed of the total profit for non-woven fabrics declined; profiting ability declined. It was mainly because the fast-growing capacity of the non-woven fabrics industry enabled the competition in the industry to become increasingly fierce in the recent years, thus having a certain suppression to the market price. The sales price of the product has always been in the declining tendency. Both the main business income and profit growth of the industry are bearing a certain pressure. Meanwhile, the price fluctuations of polyester staple fiber, rayon staple and other main raw materials also increased the cost pressure of the non-woven fabrics products.

 

The main business income and total profit of the rope, cord and cable industry have increased 6.4% and 2.33% respectively. Although its occupation in the whole industry is not high, its profit margin reaches 6.14%. As the industry intensifies the development strength of the products with high-technology contents, the application scope of rope, cord and cable will continue to expand. The industry will continue to maintain the growth.

 

The textile band and cord fabric industries has continued the low circumstance since 2017. Except the main business income increases by 4.11%, the total profit declines by 30.30%, the loss amount increases by 56.22%. The profit margin is 3.98%, which has declined by 1.97%. The declined profit of the textile bands and cord fabrics is mainly caused by the dramatic fluctuation in polyamide and raw materials. For example, the price of caprolactam has risen from 10,000 RMB/ton in last November to 19,000 RMB /ton last March and then fell back to 13,000 RMB/ton.

 

The main business income and total profit of the sail and canvas industry have a growth of 9.43% and 4.47% respectively. The profit margin is 5.35%. The industry continues the sound development tendency of the first half year. The business condition is stable and rising.

 

Double increase of import and export

 

In the first three quarters of 2017, the import and export of the industrial textiles industry in China extended the sound tendency of the first half year and realized double increase of import and export again. The customs data displays that: the export of the industry in the first three quarters was USD 17.935 billion; the import was USD 5.26 billion, with a year-on-year growth of 3.26% and 11.82% respectively. The growing amplitude of the import and export has slowed down compared with the first quarter and the first half year.

 

Main exported products

 

In the products with export amount over USD1 billion, only non-woven fabrics, leather base cloth as well as the textiles for packaging have declining export amount. Except these two categories, the textiles for communication medias have an export amount growth of 11.8%; the industrial coated fabrics have an export growth of 8.05%; the export amounts of the rest products are all about 5%. 

 

From the perspective of export volume, only cotton rope (cable) band type textiles and textiles for packaging have declined export quantity. However, the textiles for medical treatment and public health, sail and canvas textiles as well as the wiping cloths have rapid growth in export quantity, with a year-on-year growth of 10.49%, 13.05% and 11.72% respectively. It indicates that the international market still has strong demand to the Chinese commodities. 

 

In the main export products, the prices of coated fabrics, packaging textiles and textiles for communication medias basically maintain stable. The growth amplitudes of the export prices of the textiles for medical treatment and public health, sail and canvas textiles and non-woven fabrics all exceed 6%.

 

Main export markets

 

In the first three quarters of 2017, the export amount of Chinese industrial textiles industry to EU and North America continued to maintain the sound growth tendency of the first half year, with a respective growth of 12.03% and 10.1%. The export amount to Asia has declined 1.2%.

 

From the perspective of countries and regions, the export amount of the top 10 countries and regions in export amount occupies over 50% in the industrial output in China. In these ten countries and regions, the United States is still the first biggest overseas market of the industrial textiles in China, with an export growth of 10.38%. The export amounts to Japan and Vietnam still ranks the second and third places. Thereinto, the accumulated export amount to Japan has exceeded USD 1billion. Meanwhile, the growth speeds of exporting to the two countries have both slowed down, with a respective year-on-year declining of 4.22% and 2.28%. In other main markets, except the small-amplitude declining in exporting to Chinese Hong Kong, the exports to Korea, India, Germany, England, Russia and Indonesia have amplifications of different degrees.

 

Imports

 

In the first three quarters in 2017, the import amount of the industrial textiles in China was USD 5.26 billion, with a year-on-year growth of 11.82%. From the perspective of varieties, the import amount of baby diaper and sanitary towel was USD 1.07 billion, which could be ranked as the industrial textile with the biggest import amount in China. Compared with the previous year, the import amount has increased by 16.73%. As the implementation of the “second-child policy”, the growing tendency will continue to extend. 

 

The non-woven fabrics and industrial coated textiles had the import amounts of respectively USD 650 million and USD 589 million, with the year-on-year growth of 5.82% and -0.75% each. The import amount of airbag was USD 485 million, with a year-on-year growth of 2.29%. In the same period, the safety belt for vehicles had a dramatic increase of 42.89% in import amount. The dramatic growth in importing textiles of communication medias is closely related to the demand of the vehicle market in China last year. The year-on-year growths of automobile production and sales in the first three quarters both exceeded by 13%.

 

Observing from the import source, Japan is the biggest import destination for China, followed by Chinese Taiwan, South Korea, the United States and Germany. The import amount of the above five countries and regions occupies over 70% of the total import amount in China, in which, the import amount of Japan occupies 36.52% of the total import amount.

 

Summary

 

Despite the complicated domestic and international environments, the industrial textiles in China still maintained stable operation in the first three quarters. The main economic indexes had stable growth and the economic benefit maintained a good level. However, the growth speeds of manufacturing, income and profit all presented reductions of different amplitudes. The growth of the industry is confronting great challenges. It is worth paying attention that:

 

With the continuous temperature rise of the industrial investment, it is required to pay attention to risk prevention and control in making investment. At present, in the condition of the slow economic operation of the industrial textiles industry, the investment in the industry still maintains a sound development tendency. This reflects that the investors are still confident with the prospect of the industry from one hand. However, from the other hand, investment will have risk. It is required for the enterprise decision-makers to strength their research and judgment on the relevant market in selecting the investment direction. 

 

In recent years, the industrial textiles had quick development; the industrial capacity had fast growth. However, there are still problems, such as insufficient technological innovation ability of the enterprises, low proportion of high-technological products, short of production-demand connection and so on. The gradual declining of the profiting acceleration in the industry indicates that the market competition of the industry is already rather fierce. If the enterprises cannot put endeavors in improving product quality, new product research and development, promoting added value of the products, they will confront more operation pressures in the future and their investment activities might suffer from losses. Therefore, we believe that the selection of the investment is vital in order to strengthen the prevention of the investment risk in the industry. The blind scale expansion or scale up can only intensify the surplus of the industrial capacity and market competition. 

 

President Xi Jinping has pointed out in the report for the 19th National Congress: The economy in China has been transformed from high-speed growing stage into the high-quality development stage. The enterprise can only have advantages in the market competition through paying attention to product innovation, keeping on promoting the technological content and added value of the products, so as to promote the healthy and ordered development of the industry at the same time.

 

It is required to cultivate new growth points and form new dynamic forces centered on the six key development fields. In the “13th Five-Year Program” period the fields are: 

•  Industrial textiles for strategic new materials,

•  Industrial textiles for environmental protection,

•  Industrial textiles for medical treatment and health care industry,

•  Industrial textiles for emergency and public safety,

•  Industrial textiles for infrastructure construction supporting,

•  Industrial textiles for “military and civilian integration” 

Confronting the fierce market competition of the industry, the enterprises must embrace the great strategic deployment of the country, aim at the relevant products and items in the six key development fields as the development direction, look for the corresponding industries for emphasized development according to the natural resources where the enterprises located and their own basic strengths, so as to cultivate new growth points and form the new dynamic forces of the economic development.

 

Observing from the entire year, the industrial textiles industry will continue to extend the tendency of the first three quarters. Both the production and main business income will go on maintaining stable growth; the fixed-asset investment will maintain middle and high-speed growth; the export is going to be stable and rising.

New FR Cellulose Fiber - SOL FR® with FR and Anti-Bacterial Function

Making a Revolutionary Innovation

 

by Zhao Zihan

January 18, 2017

 

China, as we all know, is a textile power, accounting for more than half of the world’s fiber processing capacity, but still following behind some other countries in many high-tech breakthroughs in the technical difficulties, especially in fiber materials and equipment manufacturing. However, with the deepening transformation and upgrading of the industry in recent years, many technical problems have been resolved. For example, in the field of flame-retardant textiles, Beijing SOL Flame-retardant Fiber Limited (SOL for short) developed a new flame-resistant cellulose fiber - SOL FR® over more than ten years of research.

 

SOL FR® - Defines the flame-resistant application boundary with technology

The flame resistant textiles has become a major social concern of all walks of life , while the life and property safety as well as environmental protection is receiving much concern. Today, the FR fiber material is not only applied to such personal protection areas as the military, fire-fighting, and industrial protective clothing, but also largely used in the civilian market such as home textiles and clothing for special groups. For example, in some developed countries, there are strict flame-resistant laws and regulations on the soft furnishings such as mattresses, sofas, and carpets, as well as the components inside the vehicles such as the built-in cushions and backrest, and the infant clothing.

 

FR regenerated cellulose fiber, as one of the many flame-resistant fiber materials, has been playing an irreplaceable role in flame-resistance textiles' field thanks to its good flame-resistance performance as well as such characteristics as great wear comfort, natural soft touch and excellent moisture absorption and perspiration of the fabric.

 

 

However, the FR cellulose fiber worldwide is mainly phosphorus-based and silicon-based. The former enjoys good FR performance, but will release a large amount of smoke and cause great damage to the environment; the latter is well known for sound FR performance and environmental protection, but will suffer a serious decrease of FR performance against washing with low strength, and cannot be woven into fabric.

 

SOL FR® is a new inherent cellulose-based FR fiber. It is produced through spinning and solidifying after a grafting reaction between cellulose solution and new silicon-nitrogen flame retardants. Thanks to excellent thermal protection performance and small heat shrinkage coefficient of SOL FR®, the fabric can still maintain its original shape burned at a high temperature of 1100ºC, playing a role as a barrier. SOL FR® is characterized with excellent flame-resistant and thermal protection performances, no melting and dripping, small smoke emission, non-toxic & non-polluting smoke and great wear comfort. In addition, it will not pollute the environment after degradation. It can be widely used in fire-fighting, military and special protective clothing industry, as well as the garments for infants and young children and the elderly, home textiles, and the interior furnishings of transportation vehicles.

 

 

Flame-resistant + antibacterium, combined functions reveal the technical strength

 

SOL FR®, the main product from Beijing SOL Flame-retardant Fiber Limited, is endowed with another new function: antibacterium. Recently, the newly developed products have passed the authoritative test, which proved that a new series of SOL FR® products are of excellent antibacterial function.

 

It is said that the fiber with antibacterial properties can be widely used in personal protection, home textiles, underwear, medical textiles, sweatshirts and so on, especially garments for the elderly, pregnant women and infants. The clothing made from antibacterial fiber are able to resist the adhesion of bacteria in clothing so as to protect people from the intrusion of bacteria. Antibacterium is either inherent or through post-treatment, and the current international inherent antibacterial fibers are mainly chitosan fiber, seaweed fiber, and polyimide, while the post-treatment antibacterial fibers mainly include silver antibacterial fibers and copper antibacterial fibers.

 

The inherent antibacterium refers to the antibacterial radicals of the fiber molecular radicals, so that such kind of fibers is antibacterial permanently. Silver fiber is a high-tech product with a layer of pure silver permanently bonded to the surface of the fiber through special technologies. Copper fiber is a new type of acrylic fiber grafted with organic copper chain and high hydrophilic radicals respectively on the side chain of acrylic polymer by graft copolymerization in the stage of the primary pulp polymerization, followed by wet spinning technology.

 

Similar but different from other inherent antibacterial fiber in antimicrobial principles, the  antibacterial property of SOL FR® is long-acting based on ensuring the flame resistant performance. The antibacterial TiO2 and organic nitrogen compounds are added to the flame retardants: anatase TiO2 is photocatalytic antibacterial agent with antibacterial effect rising from catalytic activation mechanism: the metal elements absorb the environment energy (such as UV), activating the oxygen in air or water to generate hydroxyl radicals or reactive oxygen ions which then react with the protein, unsaturated fatty acids, and glycosides in bacterial cells, destructing its normal structure to death or loss of reproductive capacity. The antibacterial mechanism of organic nitrogen compounds: combining with bacterial or fungal cell membrane anion or reacting with the sulfydryl to destruct the synthesis system of protein and cell membrane, thereby inhibiting the reproduction of bacteria or mould, playing bactericidal, antibacterial, mould-proof and other effects.

 

The antibacterial function of SOL FR® has also won approval of the academician Jiang Shicheng and other experts in the appraisal meeting organized by China National Textile and Apparel Council. So far, SOL has successfully developed ecological, environmentally friendly cellulose -based series fiber products, namely, inherent FR fiber, inherent far-infrared emission fiber, inherent antibacterial fiber, inherent antibacterial and far-IR fiber and fiber with inherent FR, far-IR emission and anti-bacterial function all in one products.  

 

SOL FR® Main featuresFR series):

 

  • High flame resistant performance: Limit oxygen index LOI ≥ 32%;
  • Barrier effect: The fabric's original shape can be maintained though the cellulose are burn out after burning in 1100, forming a shielding layer;
  • Low smoking and non-toxic smoke: Combustion does not produce toxic gases and smoke;
  • Environmental protection performances: The waste is naturally degradable, harmless to the environment;
  • Inherent flame resistant: Laundering durability, and washing will not affect the flame resistance performance; reusable.

2016 China Textile Innovation Conference Explores the Roads to a Textile Power

by Zhao Zihan

December 19, 2016

 

2016 China Textile Innovation Conference, as an annual summit of industry innovation, was held in Beijing on December 12th, 2016. The conference, themed on “New Opportunity, New Advantages, New Vitality” – Stepping Towards aTextile Power, comprehensively summarized the industry innovation achievements and explored the new advantages in development in order to grasp the strategic opportunity of the new round of industrial changes.

Sun Ruizhe

Sun Ruizhe, President of China National Textile and Apparel Council (CNTAC), made a keynote speech themed on “To construct a new future for China’s textile and apparel industry”, pointing out that currently, the global economic development is suffering increasing uncontrollable and unknown factors, while the “Black Swan Event” occurs frequently in various fields. In face of such a challenging environment, China is still the most important growth engine for the world development. In spite of the flat growth rate and various challenges, China’s textile industry still maintains a stable position in national economy, and enjoys growing shares in global textile and garment trade. The industry new economy has presented great vitality.

During the 13th Five-Year Program period, based on the new position of the industry, China’s textile industry is transferring from traditional industry to scientific & technological industry, green industry, and fashion industry. Meanwhile, the framework of the new three industrial sectors in terms of fashion, science & technology, and manufacturing is increasingly clear.

 

Sun Ruizhe proposed that in the new historical period, under the magnificent goal of building a textile power, we need to achieve innovative development based on technological innovation, refined development with the direction of intelligent manufacturing, inclusive development with social responsibility as the focus, fashion development with cultural self-confidence as the goal, integrated development with industry and financial integration as the starting point, and linkage development with system construction as the core, so as to build a new future for the industry.

Development Trend and Orientation of China’s Textile Industry During the 13th Five-Year Program Period

Chen Dapeng

According to Chen Dapeng, Vice President of CNTAC and Executive Vice President of China National Garment Association, the 13th Five-Year Program has opened a new development for China’s garment industry. “This is a golden period of China’s garment industry, when the background, characteristics, and development concept are completely different from the past, but the industry will be fully re-oriented to the advantages of restructuring and upgrading accompanied with increasingly enhanced technological creativity, cultural creativity, and service creativity. In addition, the brand building, cultural construction and fashion right to speak will also see an overall increase, promoting the whole industry towards a medium- to high-end development.”

Li Lingshen

Li Lingshen, Vice President of CNTAC & President of China Nonwovens & Industrial Textiles Association, gave a detailed introduction to the breakthroughs and outstanding contributions that China’s technical textiles industry had made in the development of new products during the 12th Five-Year Program period, and conducted an elaboration on innovation-driven development of the industry in such fields as the strategic new materials, environmental protection, health, emergency and public safety, infrastructure construction and military-civilian integration.

Yang Zhaohua

Yang Zhaohua, Vice President of CNTAC & Executive Vice President of China Home Textile Association, made a speech focusing on the transformed new home textiles in the 13th Five-Year Program period, which should be centered on consumers and enhance the supply-front structural reform for an all-rounded promotion of brand strategy. “Over the past two years, China’s home textile industry maintained a continuously stable growth. Looking forward to the coming 2017, the industry is required to focus on the development program for the industry during the 13th Five-Year Program period in order to promote home textile industry to achieve new transformation, new development and new results.”

Awards Ceremony

 

One important section of the conference is the award ceremony to the enterprises, including 2016 China National Textile and Apparel Council Sustainable Textile Product Development -- Excellent Efficiency Award, 2016 China National Textile and Apparel Council Product Development Contribution Award / Product Development Promotion Award, and China National Textile and Apparel Council Product Development Outstanding Contribution Award during the 12th Five-Year Program Period.

 

Innovation forums

 

Another highlight of the conference was two innovation forums, respectively focusing on “product competitiveness and sustainable innovation” and “scientific and technological progress and fashion economy”.

Fiber Composites Growth (2016-2020)

Part 2

by ZHAO Hong and Flora ZHAO from CHINA TEXTILE

 

Posted July 12, 2016

 

II. International trade

 

The lethargic symptoms in global market gave way to a vitality in China’s domestic demand during the 12th Five-Year Program period (2011-2015) that witnessed a decreasing export share from 47.3 percent in 2010 to 41.8 percent in 2014, approaching progressively to 30 percent in its target share as laid down in the industry development plan that emphasizes more domestic contribution to the industrial growth, showing that the share of domestic sales was obviously increasing to respond to consumption growth in China.

 

 

Year                                              2010             2011           2012           2013           2014

-------------------------------------------------------------------------------------------

Export volume (10,000 tons)         121              122              121             119             129

Year-on-year growth change       23.47%          0.83%        -0.82%       -1.57%           8.36%

Share of export, (%)                    47.3             43.7             42.0            41.8              41.8

 

Import volume (10,000 tons)          25.7              21.1             20.4             23.3             24.5

Year-on-year growth change        35.26%         -17.9%         -3.32%        14.22%          5.11%

Apparent consumption (China)

  (10,000 tons)                                161                178              187              189              203

YoY  growth change                       27.5%           10.8%          5.2%            1.0%            7.5%

 

 

The data in 2015 also saw an export slide-down in both volume and value with 1.249 million tons for 2.05 billion U.S. Dollars, registering a drop by 3.2 percent and 0.7 percent respectively, but the highlight is the averaged price that reads 1640.86 dollars/ton, up by 2.6 percent, realizing 1.163 billion dollars in trade surplus, up by 6.4 percent, showing optimistic trend of an optimized product structure in export to reduce outbound shipment of low-end products. To be more exact, the coarse yarn export dropped by 4.1 percent in volume while the fine-denier yarn was shipped out at averaged price higher than that in the same period the year before. To keep that momentum, Chinese investment in more sophisticated product operations overseas has been increasing on new market fronts, like Chongqing Polycomp International Corporation (CPIC) that has furnace process operations in Bahrain and Brazil by virtue of acquisition and share holding, and China Jushi Co., Ltd. that is stepping up process of setting up glass fiber production facilities in Egypt and U.S.A. besides its 14 existing establishments (sales office and production bases) in South Africa, France, Italy, Canada, Spain, India and Singapore etc. in an effort to substitute "going-global" investment for home-grown export in a new international vision.

 

 

III. Development of fiber-reinforced composites

 

The dynamic growth in Chinese economy has contributed a lot to the domestic demand for glass fiber and its composites, in spite of the speed gear-down to 6.9 percent in GDP last year that saw even slower rate than that in 2008,2009 and 2010 with 9.6%,9.2% and 10.4% respectively during the three years of global financial crisis. The technology in pultrusion, fiber winding and modeling processes has made much headway, which increases productivity to challenge rising labor cost in the fiber-reinforced composites industry.

 

The windmills, railway transportation, urban infrastructure and environmental construction have boosted market demand for an ever-rising production of composite materials. To be more exact, the fiber-reinforced plastics(FRP) products turned out 4,567,100 tons in 2015, 5.36 percent in year-on-year growth, which can break down into 2,803,100 tons of thermoset products and 1,764,000 tons of thermoplastic products, up 3.06 percent and 9.023 percent respectively.

 

Thermoplastic v.s. thermoset products in production share (2015)

(Thermoplastic products account for 39% while the thermoset 61%)

Production of thermoplastic and thermoset products (2010-2015)     

Unit: in 10,000 tons

-------------------------------------------------------------------------------

Year                                       2010         2011         2012        2013         2014        2015

Thermoset                               238           263          270           273           272          280

Thermoplastic                            91           118          130           137           161          176

Total                                         329           381          400           410           433          456

Growth rate                              21.8%      15.8%          5%           2.5%       5.6%        5.3%

The table shows thermoset products outnumber thermoplastics in size and scale, but the rapid growth in automobile industry, high-speed train, electric and electronic industry give impetus to the rising demand for the thermoplastic composites that are advantageous in short time for modeling and in impact-resisting performance and well accepted by the market which has,in turn, driven the production and market share on consecutive growth in years. Of the total thermoplastic composites production, the engineering plastics has 1,464,000 tons, up 8.44 percent over the year before,still starring the product-lines.

 

1. Products by pultrusion process

 

The production of the products based on the pultrusion technology increased from 200,000 tons in 2010 to 305,600 tons in 2015 with the main product lines in power transmission tower poles & brackets, cable bridges & racks, wire conduits and other electricity insulators, in addition to the building materials in bridge and tunnel construction. In recent years, researchers and manufacturers hinge on  PU-pultrusion products as the polyurethane resin pultrusion process has the advantage in short fashioning time and higher productivity, free of styrene volatilization, and these products can be found in PU window frames, railway sleepers, ladders and roof plates in factory buildings.

 

2. Products by resin-steeped filament winding process

 

The filament winding process is still protagonist in composites output that saw 715,000 tons of the products in 2015, with various applications to water pipes in supply and sewage system, storage tanks in petrochemical and food industries, high-pressure pipes, thionizer (desulfurizing tower ), and air tubes etc.. The new application can also be found in the double-walled oil tanks which has such advantages as long service life, good erosion resistance, light weight and maintenance-free function, what is more, the double-wall structure allows for an inserted monitoring device to keep watch on oil leakage to prevent accident. Some big enterprises have made breakthroughs in technical advancement in manufacturing large storage tanks and vessels, some of which are sized in over 5000 cubic meters in volume by adopting the filament winding process.


3. Products by pressing process

 

There are 416,000 tons of composite materials in annual production by pressing technology with majority of the products applied to SMC/BMC mold-pressed automobile parts & assembles, power switch gear, electric meter box, insulating fixtures, artificial marbles in architecture etc.. Apart from those applications, the recent years witnessed an outstanding demand for pressed plates and boards,and for the plywood board or sandwiched panels in particular, which have enjoyed rapid growth in railway transportation, commercial cars and buses, shipping vessels, sports facilities, thanks to the structural and functional property and light weight with high tenacity.

 
4. Products by liquid composite molding (LCM) process

 

LCM technology injects liquid-state polymers into a closed die cavity or moulding chamber prefabricated of fiber-based structure, the liquid polymer flows to shape inside the moulding chamber. In 2015, China had 372,300 tons of the fiber-reinforced composites in annual production by this process with the products mainly used in the wings of windmill(wind blades),driven by the new installations of wind power at the record high to reach 30.50 million kilowatts, representing 48.4 percent of the world new wind power installed last year. In fact, China accounted for 33.6 percent of the world share by its total installed wind power capacity for 145.1 million kilowatts as of 2015. The rapid growth for wind power market gives impetus to more composites production for this product line that has very demanding standards for product performance, structure, process and technological indexes. Zhongfu Lianzhong Composites Group-Wind Blades plant has adopted manufacturing executive system(MES)to digitalize its production management, making sure that process is optimized with the fully-fashioned technology to provide large and high-performance, high-modulus fiber reinforced composites for wind power market.

 

 

China’s Wind Power Growth(2001-2015) both in new and aggregated installations

Source: CWEA (note: blue bar for new installation,red bar for the aggregate) Unit:10,000 kilowatts

The liquid composite molding technology is cost efficient, process flexible, making it possible to produce large and complex composites. The process flexibility allows for inserting grids and cores during the fully-fashioned production that gradually meets the needs of the various kinds of large-sized synthetic structures well accepted in shipping, automobile and railway transportation industries. 

 

China is now challenging the tough and pungent issues of air pollution to actively cope with the global climate change, the clean energy is elbowing its way in the right direction for replacing the fossil fuels in phases, which is already underscored as national fundamentals in strategic blueprint. The next five years is of paramount importance for the technical textile companies to be hard-charging, get-ahead and innovative in stepping up the production of the large, intelligent and light-weighted composites and the fiber-reinforced composites along with wind power development.

Fiber Composites Growth (2016-2020)

Part 1

by ZHAO Hong and Flora ZHAO from CHINA TEXTILE

 

Posted May 16, 2016

 

China has an ambitious plan to advance into a higher level of modernity in the country which is officially described as “a moderately prosperous society in all respects” by 2020, the end of its new five-year program for national economic and social development (2016-2020). As a pillar sector of its national economy, the textile industry is also believed to grow into a new world power explicitly set forth in the big-to-strong shift program in the sectoral five-year blueprint, including technical textile growth.

 

Although there are clouds of doubt, questioning the Chinese dream of becoming a strong textile country particularly in the technical textile regime, its scheme in category-specific development in the years to come is out of question, worthy of the notice either for strategic significance in global vision or in business opportunities at corporate level. With this, we present the 13th Five-Year Program for Fiber Composites Industry Development in China.

 

I. Retrospect (2011-2015)

 

China walked confidently into the new five-year period for the 12th half a decade program (2011-2015) for national economic and social development after it had successfully trekked across the swamp of economic slowdown on global basis. According to the summary report released in the first quarter of this year to review the past five-year achievements made in textile industry, the total fiber processing volume accounts for 50 percent in the world share, and its export growth in the last five years registered 9.7 percent annually with the market share by 37.4 percent in dollar terms in 2014, despite a fall by 4.8 percent in 2015. Structurally, the textile industry in China has continuously been reshaped for optimal development in a well-balanced way in the big three applications,say, apparel, home-textiles and technical textiles with the latter having been increased from 20 percent in 2010 to 24.6 percent in 2014 in the total share of fiber consumption.

 

Glass fiber has been an important player in technical textiles application even though it is not included as part of our textile industry in China for the simple reason that the glass fiber industry has traditionally been classified into building materials sector belonging to the ex-Ministry of Construction which has been reformed into Ministry of Housing and Ruban-Rural Development (MOHURD) now, but we have always regarded it as an integral part of our technical textile industry with growing interest in its development and economic performance.

 

 Table I            Glass Fiber Production (2010-2014)

Year                                         2010      2011       2012        2013       2014      2015

-------------------------------------------------------------------------------------------------------------------------------

GF production (10,000 tons)   256           279        288           285        308        23

 

Year-on-year change,%          24.88       8.98        3.23          -1.0        8.07      4.87

Filament (tank furnace process

In 10,000 tons )                          217        244         252          262        285     304.5           

 

Production share by           

Tank furnace process,%         84.77      87.45    87.50       91.93       92.63    94.27

 

From this table, we can see that the process has continuously been optimized with the production of glass fiber largely from the tank furnace process by 94.27 percent share, outnumbering the old-mode remelt (marble melt) line for a meager output of 185,000 tons reduced by 18.5 percent in year-on-year growth as against 2014 with 5.73 percent in cake-share.

Glass fiber production rate 2001-2015.

In 2015, the data from 1197 glass fiber and its composites companies showed main business income for 261.72 billion yuan (about 41 billion dollars), up by 10.1 percent with 18.3 billion yuan as profits that also curved up 10.2 percent, a marvelous achievement at the time when the whole building materials industry was in doldrums.

 

The investment in the fixed assets arrived at 44.122 billion yuan, up by 23 percent over the comparable period, showing the enterprises’ confidence in monetary input to optimize production process and shape product portfolios to stand up to the rising cost and environmental pressure. The technological renovation has made it true that some companies put robots onto the streamline in shop-floor management with automation process control that shapes for the future, featuring a smart run in new operations.

 

(to be continued)

 

 

The 2015 Economic Operation Analysis on the Technical Textile Industry

February 24, 2016

 

Contributors: Echo Xu, ZHAO Hong, Flora Zhao and Y.C.

 

The economy in China, in spite of the big downward pressure and its growth slow-down, turned out a steady increase in general. The technical textile industry overcame various unfavorable factors and speeded up the pace of transformation and upgrading, improving operation efficiency, increasing investment in technological innovation, actively developing new products in a wider spectrum of applications and markets by delicate management. Therefore, the general operation presented a slowing growth, stable operation and good benefit situation. 

 

According to the National Bureau of Statistics, the main business revenue and profit of the enterprises above the designated size in technical textile industry was up 6.51% and 14.44% respectively. The industrial added value and profitability was up 12.4% and 5.9% respectively during the past eleven months. The export was basically leveled off but increased slightly compared with last year. According to the survey of 140 enterprises by the association, the industrial business index of the whole year’s operation was 72.3, which was highly satisfied by entrepreneurs.

 

Technical Textile Industry Performance in 2015

 

The demand was more complicated in ther technical textile industry due to the downward pressure on the economy. Specifically, the market demands from infrastructure construction, environmental protection, and life health continued to maintain a high growth, but there are fields showing a slow growth or even decline, for example, artificial leather cloth, transportation textile, tire cord fabrics, etc. According to the survey of the member enterprises by the China Nonwovens and Industrial Textile Association (CNITA), the industrial demand index and production index was 52.9 and 54.3 respectively, which were the lowest points in recent years, but still staying in the expansion range in 2015.

 

According to the National Bureau of Statistics, the non-woven production of the enterprises above the designated size in January-November was 4.034 million tons and was up 15.77% year on year, securing the most dynamic growth in technical textile industry in contrast to only 1.59 million tons in 2010. During the 12th Five-Year Program period (2011-2015), the production of the nonwoven was up 177% at accumulative growth rate with an average annual growth of 22.58%. In regional growth, Shangdong has surpassed Zhejiang and became the largest nonwoven production province, with the application mainly concentrated on civil engineering and architecture fields, accounting for 20% of the total production in our country and continuing to maintain a rapid growth rate of 32.66% in the past eleven months (Jan.-Nov. 2015). In some areas like Zhejiang, Jiangsu, Hubei, etc. the nonwoven production has maintained around 10% of the growth. 

 

The tire-cord fabric production started to drop in the first half of 2014 and amounted to 717,000 tons in 2015 with a decrease by 6.56% year on year, but still enjoying the accumulative growth rate by 55.9% over 2010 with an annual growth of 5.59%.

 

Situation in Key Applications

 

Medical and Hygienic Textiles

 

The medical and hygienic textile is a field with large and robust market demand as it is closely related to life and health. The market potential is continuing to be released with the improvement of the income level and change of consumption ideas.

 

Regarding the medical dressing, operation cloth and disposable hygienic products, China has a very big production capacity and is also the world’s leading producer and exporter. The export medical and hygienic textiles was 3.19 billion dollars in 1-11, 2015, registering 1.35% in year-on-year growth. To be more exact, the export of sanitary pads and baby diaper was 1.43 billion dollars with an increase of 3.89%. The export of medical protective clothing made of nonwovens is 0.99 billion dollars with an increase of 4.27%. However, the export of gauze, bandage and other medical dressings is 0.77 billion dollars and decreased by 6.28%. 

 

The enterprises which produce the medical dressings and medical exposure suits have to turn to the overseas market as they have difficulty with hospital procurement system in China. Pengyang town (located in Xiantao city, Hubei province) is an important medical textile product cluster. In 2015, the main business income was 13.1 billion yuan and the export delivery value was 9.26 billion yuan with an increase of 9.14%, which accounted for 70.6% of the annual income.

 

Geotextiles

 

Geotextiles are mainly used in all kinds of infrastructure engineering and environmental protection projects. In the first half year of 2015, large numbers of projects are at the stage of planning and designing with few projects that came into operation, therefore, the geo-textile industry is faced with some challenges. In the second half year of 2015, the orders increased dramatically and the operation system got its breath again with some growth thanks to constructing large numbers of railways and water conservancy projects. Lingcheng district (located in Dezhou city, Shandong province) is the main production base of geo-textiles with over 10 billion yuan of main business income in 2015 and 0.82 million tons of geo-materials. 

 

Textiles Used for Filtration and Separation

 

The whole society paid close attention to the quality of atmospheric environment and the country continued to increase atmospheric environmental regulation, which has provided good opportunity for air filtration industry, for many cities were blanketed by unremitting haze or smog on and off in the whole year of 2015. The filtrating effect of bag-type dust collecting technology has reached near zero emission with four years of average service life thanks to the development of high performance fiber and improvement of bag-type dust manufacturing technology. Moreover, the comprehensive recycling of used bags has achieved breakthroughs with more significant advantages of the bag-type dust collecting technology. 

 

In July 2015, Emission Standard of Air Pollutants for Cement Industry was put into effect. Massive funds were poured into the cement industry to transform the environmental protection equipment, the market in metallurgy and electric power industry increased constantly, which has driven the rapid development of industry. Fucheng street (located in Funing county, Jiangsu province) is a high temperature filter material industry base, producing 0.2 billion square meters of filter materials in 2015 with 13.64% main business income at growth rate. According to the statistics of the member enterprises in filtration field, the main business income and total profit was up 15.67% and 32.33% respectively, and the average profit margin was 7.4%.

 

Textiles Used for Vehicles

 

The year of 2015 witnessed 24,503,300 cars produced and 24,597,600 cars sold, hitting a new record high with an increase by 3.3% and 4.7% respectively, comparing the data in previous year; therefore,, the economic situation in general runs steadily at a growth speed. Meanwhile, the sales and production of cars were 4 and 2.2 percentage points lower than that of last year. The slowdown in car market has brought some pressure for vehicle textiles.

 

In the long run, the traditional car industry will increase at a medium-low speed, and lightweight and new energy are two important trends for future automobile industry. The textile composite materials were widely applied in automobiles with the quality of light weight, great strength and low cost. In the future, the textiles used for vehicles will have a larger growth space with the growing consumption of textile materials for per car.

 

Development Prediction in 2016

 

Year 2016 is the first year of the 13th Five-Year Program; the technical textile industry will be ushered into a new period of an important development opportunity on the grounds that:

  • Firstly, during the 12th Five-Year Program period, the technical textile industry developed rapidly with high-speed growth of industrial scale, continuous improvement of economic efficiency, remarkable results of technological progress and industrial transformation, rapid development of important sub-industries, constant expansion of application fields, all of these have laid a solid foundation for the development of industry in the 13th Five-Year Program period and made the industry development at a higher starting point. 
  • Secondly, technical textile has a high dependency on national economy. China has increased investment in infrastructure construction, environmental protection and medical healthcare along with the continuous development of society and economy as well as the thorough implementation of One Belt One Road Initiative. Therefore, the huge domestic market is still the greatest motivation for industrial development.
  • Thirdly, supply-front reform will provide a growth impetus to industrial transformation, speeding up the update of the advanced equipment and high-end capacity investment, accelerating technological transformation and new product development, promoting the industrial competitiveness, and better replacing import and participating in the international competition.

But the development of industry also faces some challenges:

  • Firstly, the market demand presented a slowdown or even a structural decline in some fields owing to the slowing economic speed in the New Normal period.
  • Secondly, the world economic situation is still complicated and the economic recovery is slow in Europe and Japan. The position of international market is becoming preponderant constantly in Chinese technical textile industry, especially as the high-end products in the backbone enterprises are exported at pro-rate growth.
  • Thirdly, the chronic downturn of the raw material market suppressed price of the finished products in the downward channel for a long time, which has brought big pressure on the growth of industry.

In 2016, the production, investment, and sales in Chinese technical textile industry will continue to increase at a high speed with good economic benefits and the export will grow at 5%, as estimated.

 

 

 

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Coming Events

  • September 26-27: 2018 SPESA Executive Conference, Louisville, Ky., USA

  • September 27-28: 5th Digital Textile Congress 2018, Ghent, Belgium

  • October 2-3: Filter Media Training Course, Philadelphia, Penn., USA

  • October 2-4: Filtration 2018 International Conference & Exposition, Philadelphia, Penn., USA

  • October 7-8: 2018 Southern Textile Research Conference, Myrtle Beach., N.C., USA

  • October 8-10: 2018 AUSA Annual Meeting & Exposition, Washington, D.C., USA

  • October 9-12: Nonwoven Fabric Property Development and Characterization, Raleigh, N.C., USA

  • October 10-11: 4th International Conference on Nonwovens for High-Performance Applications, Cannes, France

  • October 15-19: ITMA Asia + CITME 2018, Shanghai, China

  • October 15-19: CAMX, Composites and Advanced Materials Expo, Dallas, Texas, USA

  • October 16-17: GeoDallas 2018, Dallas, Texas, USA

  • October 16-18: IFAI Expo 2018, Dallas, Texas, USA

Click here to view the complete technical textiles events calendar that includes show information links.

New Trade Deal with Mexico is Good News for US Textile Industry

Automotive Manufacturing Leading End Market for Technical Textiles Shipped to Mexico. 

 

The United States and Mexico have reached a preliminary agreement that covers a substantial revision of the North American Free Trade Agreement (NAFTA); specifically, the rules of origin for automotive parts. It is expected to incentivize billions annually in additional US vehicle and auto parts production. 

 

To qualify for zero tariffs under NAFTA, the current rule of origin requires 62.5% of the automotive parts must be made in NAFTA countries (Mexico, Canada and US). The new agreement increases to 75% for the parts to avoid the tariff. What's intriguing is that we don't know if the countries still include Canada, a substantial manufacturer of vehicles and automotive parts. Regardless, this will most certainly be a boon for US technical textile manufacturers as almost 50% of US technical textiles exports goes to Mexico and automotive fabrics are the leading destination end-product segment in making products such as airbags, headliners and seating.

 

Sobering Thought. Despite the "first glance" optimism, there may well be concern this revision could backfire on the US and Mexico. As I previously noted in my 2018 State of the US Technical Textiles Industry (March/April 2018, Textile World), increasing the percentage of automotive component parts (plus a new requirement that 40-45% of the auto content be made by workers earning at least $16 per hour) could end up pricing Mexican-made vehicles out of the very competitive global marketplace. Mexico currently makes 3.4 million cars annually for the world market.

 

Mea Culpa.  In my same article noted above, I honestly thought revisions to NAFTA would not get done in 2018 because of the elections going on in Mexico, Canada and the US. I underestimated the dodged determination of the Trump Administration to push this trade issue forward. Why Mexico has acted on it without Canada's input is still to be understood.

 

Click here to read the entire statement posted by the US Trade Representative. 

 

Steve Warner

Publisher

Posted August 28, 2018

Frédérique Mutel Stepping Down as JEC President

Frederique Mutel

In a message to BeaverLake6 Report, JEC Group President Frédérique Mutel has confirmed she has stepped down at the leader of the composite trade organization that she has led since 1997. At the head of JEC since its creation, Ms. Frederique Mutel fully committed to the expansion of composites, was instrumental in the establishment of JEC as provider of high value knowledge and networking services. At the same time, conducting a strong international development. No replace has been announced.

 

On July 13, 2018, Ms. Mutel was promoted to the rank of Officer in the Order of the Legion of Honour by decree of the President of the France. A very deserving honor for a key leader in the development of the composites industry. Posted July 25, 2018

State of the Chinese Technical Textiles Markets in 2017

Are you looking for a quick understanding of the China technical textiles industry? Through our special relationship with China Nonwovens & Industrial Textiles Association (CNITA) and their China Textile publication, BeaverLake6 Report is pleased to post the English-translation of the recently issued "Status Quo of China's Nonwovens and Industrial Textiles Industry, 2017." The report covers the different levels of the industry, geographic export demographics, and forecast the needs in the major end market applications. Click here to read the report in our China Textile website section. Posted June 18, 2018

Report Published on the US Technical Textiles Industry

I am pleased to announce the second part of my report 2018 State of the U.S.Technical Textiles Industry has been published by Textile World magazine. 

 

This first part features a general industry overview, plus an evaluation of the status and impact of US trade positions.

 

The second part, featured in the April/May issue will cover major end markets for technical textiles such as automotive and military.

 

Click here to go to the Textile World website to download a copy. 

 

Steve Warner, Publisher

New Dates for ITMA Asia + CITME 2018 Textile Machinery Show

The joint owners of the ITMA Asia + CITME 2018 textile machinery exhibition have announced new dates for the 6th combined showcase to be held at the National Exhibition and Convention Centre in Shanghai, China. The new dates are October 15-19, 2018. According to show owners CEMATEX and Chinese partners, the Sub-Council of Textile Industry, CCPIT (CCPIT-Tex), China Textile Machinery Association (CTMA) and China Exhibition Centre Group Corporation (CIEC), the shift in the exhibition dates is due to a new national initiative, which affected the scheduling of all events at the exhibition center in October. [Note: BeaverLake6 Report is an industry media partner for the show.] Posted February 11, 2018

New Glen Raven CEO Interviewed for Textile World Magazine

CEO Leib Oehmig

In October at the IFAI Expo 2017, I had the opportunity to sit down with -- at the time -- incoming Glen Raven CEO Leib Oehmig for an interview that has now been posted on the Textile World website and will also be in their printed November/December issue.

 

I've known Mr. Oehmig for probably more than 20 years and have watched his steady management progression within the Glen Raven organization. During the interview, he was very gracious with his time at a busy show and transparent in answering questions on a far-ranging number of topics including the management transition from Alan Gant, Jr., to Mr. Oehmig, the first non-Gant family member to lead Glen Raven. Click here to read the interview and learn more about the thoughts of one of our industry leaders.

 

Steve Warner

Publisher

"Buy American" Amendments Needed in US FY 2018 National Defense Authorization Act

As the saying goes "Politics make strange bedfellows." Today we find more than one-third of the Senate Democrats urging the inclusion of key amendments in the US FY 2018 National Defense Authorization Act (2018 NDAA) that would strengthen the US government's "Buy American" policies.

 

Versions of the NDAA were recently passed by both the Senate and House and a joint committee is working out a single bill. The submitted Senate version, however, left out proposed key amendments designed to prevent the weakening of domestic sourcing for the US military. One amendment included the prevention for lifting of the restrictions in place for domestic sourcing of wearable electronic products and another amendment prevents certain exceptions to the Berry Amendment which would allow non-domestic sourcing through memoranda of agreement with foreign governments.

 

What's the "strange bedfellows" aspect? Well, "Buy American" is also one of the key positions taken by the Trump administration. So, we have both the Democrats and the Trump administration on the same side, trying to keep strong the US domestic capability for supplying the military. Strange bedfellows given the current political animosity in Washington...but still the cooperation is vital for the US domestic textile industry. 

 

Steve Warner

Publisher

Posted November 3, 2017

Is Saving the US Navy's Peacoat a Matter of National Security?

Since last August, the US Navy has been planning to phase out its iconic traditional wool peacoat in favor of a less expensive, synthetic cold weather parka which is lighter in weight and more versatile in types of inclement weather. It actually replaces two types of coats and the seabag the wool coat is stored.

 

The wool coat, however, has some powerful friends in the US Congress. Companies such as Northwest Woolen Mills in Woonsocket, R.I. and Sterlingware in Boston, Mass. Altogether, the supply chain involved in the manufacture of these woolen peacoats -- including sheep farmers -- is estimated to account for 400 jobs in the Northeast. Add to the drama that the new parka, made by the long-time military supplier Propper, is expected to be manufactured in Puerto Rico, a perceived feeling the new coat will be made by non-American workers.

 

Steve Warner

Publisher

June 29. 2017

President Trump's Reveals 2017 Trade Policy Agenda

The Office of the U.S. Trade Representative (USTR) has released President Trump's 2017 Trade Policy Agenda. The document, officially called 2017 Trade Policy Agenda and 2016 Annual Report of the President of the United States on the Trade Agreements Program, outlines the new Administration’s four trade priorities:

  • Defending the US National Sovereignty over Trade Policy
  • Strictly Enforcing US Trade Laws
  • Using Leverage to Open Foreign Markets
  • Negotiating New and Better Trade Deals

​BeaverLake6 Report has created a special page within this website and placed the first chapter of the 336-page document which summarizes the policy. Click here to read it. Posted March 2, 2017

What's the NCTO Game Plan for the Post-TPP Era?

Back on March 24, 2016, I was one of the first to predict the Trans-Pacific Partnership (TPP) agreement was a dead deal. In fact, I said that I wouldn’t be surprised that, if Donald Trump became President, the agreement is shredded on day one of his new administration. Well, I was off by three days. Yesterday, President Trump signed an Executive Order, officially withdrawing the United States from the TPP agreement. Now the question is can the National Council of Textile Organizations put together a comprehensive plan for the domestic textile industry in a post-TPP era? Click here to read the rest. Posted January 25, 2017

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In My Opinion

In 2015, I posted more than 425 items of interest for our industry on the BeaverLake6 Report website. In reviewing it all last week, it got me to thinking about putting together a list of influential events, news and trends that I observed during the past year. I have focused primarily on the US marketplace but each of “the things that mattered” to me has global implications.

 

So, here go my thoughts in no particular order of importance. Let me know if you agree or if I have missed some. Click here to read the list.

 

Steve Warner

Publisher

Posted January 17, 2016

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Secretary Gary Locke, US Dept. of Commerce, and Steve Warner Commerce Secretary Gary Locke and Steve Warner

Success in our industry is all about knowledge, integrity and developing relationships. BeaverLake6 Group, LLC, publisher of BeaverLake6 Report, is a management consulting firm focused on helping businesses understand the complex global technical textiles industry.

 

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