Home >

Strategy For Korean Cotton Textile Industry To Cope With High Cost

2011/10/19 10:52:00 23

High Cost Strategy For Korean Cotton Industry

  

The Republic of Korea

The cotton spinning industry has a smaller production scale and presents a downward trend.

From 3 million 670 thousand in 1990 to 1 million 200 thousand in 2010, the reduction was due to the elimination of some old equipment and increased automation of machinery and equipment.

It is estimated that by 2015, it will achieve 1 million 600 thousand spindles.

In addition, the output of cotton yarn also showed a downward trend, reaching 532 thousand tons in 1990, only 238 thousand tons last year.

One of the characteristics of the Korean cotton industry is the production of Combed Yarns, which rose from 80% in 2000 to 88% in 2010.

South Korea's cotton imports of 100%, cotton imports last year reached 275 thousand tons, mainly from the United States, Brazil and Australia.


The Republic of Korea

cottonocracy

After 2009, it experienced a stage of structural reform. After adjustment, production efficiency has been greatly improved, and its production efficiency is 2.5 times that of 20 years ago.

In addition, compared with other countries, there was no comparative advantage in the past, and now it has some advantages in some fields.

For example, through mechanical automation digestion of higher labor costs, and improve productivity.

In addition, we have very successful large garment suppliers who buy our cotton yarn and then export them to other countries after processing in South Korea.

The low cost of credit in Korea enables enterprises to obtain some financing and reduce their debts very cheaply.

In addition, the cost of electricity is more reasonable than that of other countries.


In order to meet the high cost, we have taken some measures, such as purchasing competitive cotton.

As we all know, international cotton prices have gone up and down.

So we have to look for multiple sources of supply.

Many Korea Companies are now hedging to reduce the risk of price, and also consider the possibility of cotton planting to ensure a more stable supply of cotton.


The other is to improve the level of automation.

In South Korea, where labor costs are very high, only higher productivity can be achieved through automation.

In order to reduce costs and save costs, Korean enterprises also adopted collective procurement to increase bargaining power.

When purchasing raw materials and mechanical parts, collective procurement is carried out.

The maintenance of mechanical equipment is also carried out through collective maintenance contracts.

Korean enterprises have also strengthened quality control, and the upstream and downstream industries have also been more closely related.

What is particularly noteworthy is the rapid response to the market.


Because of International

Cotton price

Korean textile mills are also very difficult now, and many manufacturers are losing money.

We believe that the price forecast for cotton and cotton yarn is becoming more and more important. Price instability is not good for anyone.

Stable cotton and cotton prices are the best for us.

But in any case, we can not give up hope, and any bad things will be better.

  • Related reading

Singapore'S Exports Fell 4.5% In September

Global Perspective
|
2011/10/19 10:52:00
18

US Industrial Output Rose 0.2% In September

Global Perspective
|
2011/10/19 10:50:00
26

Vietnam'S Textile And Garment Industry Faces Recession Crisis

Global Perspective
|
2011/10/19 10:31:00
25

Puma Brand Starts Manhattan Supply Chain Process Platform

Global Perspective
|
2011/10/19 10:20:00
22

工资提高可能打击会约旦的服装部门

Global Perspective
|
2011/10/18 16:36:00
26
Read the next article

Brazil'S Cotton Index Plunged 4.5% In October

Since the beginning of October, cotton prices in Brazil have been declining. The cotton type 41-4 (CEPEA) /ESALQ index (St Paul, 8 day payment) was dropped by 4.54% in the first half of October (September 30th -10 14), and closed at 1.7543 Real or 1.0128 US dollars / pound in October 14th.