Largest chinese cotton textiles manufacturer announces poor results
21/08/2012
The company made 206,000 tonnes of cotton yarn, 498 million metres of grey fabric and 42 million metres of denim during the six-month period, declines compared to the first half of last year of 37.6%, 14.1% and 16% respectively.
Weiqiao said on announcing the results that it had scaled back its production to keep inventory levels low. It said it was facing intense competition because of weak demand for textile products.
Company chairman, Zhang Hongxia, said on making the announcement: “Cotton prices in the domestic market have remained at a low level while declining sharply in overseas markets, making overseas cotton much cheaper than domestic cotton, which led to greater competition pressure on the domestic textile industry. Therefore, it was difficult to lift the prices of textile products.”
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