The unpredictable global epidemic has forced textile mills to accelerate their decentralization and build new factories. Domestic textile stock Wang Ruhong (1476)’s new plant in Indonesia is in full swing and aims to start small-scale production by the end of this year. It is expected to become Ruhong’s largest source of growth momentum in the next few years.
In addition, the staple fiber cloth factory, Guanxing-KY, is defying the epidemic to set up a factory in Vietnam and increase investment. When the epidemic in Vietnam slows down, it is expected to start construction in the second half of this year and mass production in 2023. By then, Guanxing will increase its production capacity by about 30%. .
Different from the previous expansion of textile mills, which mainly expand in existing factories or regions, the new plant plans of Ruhong and Guanxing-KY are all new bases, and the two companies have moved to Indonesia and Vietnam for the first time.
Ruhong finalized its investment plan in Indonesia in September 2019, and plans to invest 5.27 billion yuan in three years to launch a three-phase plant expansion plan. However, after the start of Ruhong's Indonesian factory construction plan, the epidemic was interrupted at the beginning of last year. Especially in the second quarter of last year, because the epidemic spread to Europe and the United States, orders for the global textile industry were frozen. It was once reported that Ruhong's Indonesian factory construction plan might slow down. .
However, Hong Zhenhai, chairman of Ruhong, said that Ruhong's Indonesian factory construction progress is proceeding as usual. Although it may not be so smooth in terms of recruitment due to the epidemic, he still hopes that the first phase of the plant can start small-scale production by the end of this year.
The legal person believes that Ruhong’s orders have been full in recent years, and the company’s revenue is difficult to make a major breakthrough because it is stuck at full capacity. With the subsequent opening of new Indonesian plant production capacity, it will inject strong new momentum for Ruhong’s operations.
The director of Guanxing said that the company is still optimistic that Vietnam’s textile supply chain is quite complete, and the prospects for orders from customers are very clear. Therefore, the Vietnam factory construction plan continues to accelerate. Now, after the epidemic in Vietnam is brought under control, construction is expected to start in the second half of this year. In mass production in 2023, Guanxing will be able to increase its production capacity by about 30%.
