Weiqiao tackles labour costs with increased automation
28/08/2013
The narrowed price gap between domestic cotton and overseas cotton helped China's textile and apparel regain competitiveness in the global market. China's exports of textile products totalled $51.2 billion, up by 10.1% compared with the corresponding period last year.
Zhang Hongxia, chairman of Weiqiao, said: "Insufficient overseas demand, a slowdown in the growth in domestic demand, a gap between domestic and overseas cotton prices, and the increase in the production costs including labour cost were still the major issues that affected China's textile industry during the period."
“China's textile industry is entering a stage of profound adjustments given the anticipated significant increases in the costs of labour, energy and raw materials,” said the company in a statement.
“In response to the rising labour costs, the company will improve the facilities' operational efficiency and increase its level of automation to reduce labour. It will also strategically modify the mix of imported cotton and domestic cotton to reduce raw material costs. The company's exports to emerging markets are expected to increase as a result of the optimised structure of domestic and international trade and the development of products tailored for emerging markets.”
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