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Research | Time:May 4 2016 9:33AM
Status quo and competitive advantage of textile mills investing in Xinjiang
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Participants still pay high attention to Xinjiang market after textile mills' investment boom in 2015. What's the status quo of companies investing in Xinjiang? How is the progress? What's the cost advantage? Is there wider cooperative space? 

I. Reasons for investing in Xinjiang
II. Status quo and progress of textile mills investing in Xinjiang
1. Fast expansion of scale
2. 2. Mainstream products and prices in Xinjiang

III. Spinning cost advantage of textile mills in Xinjiang compared with mills inland
1. Less cotton price advantage 
2. Less labor cost advantage
3. Obvious electricity price advantage
4. Freight subsidy advantage
5. Tax advantage

IV. Problems that need to be solved
1. Higher labor management cost but lower production efficiency than inland
2. Downstream industrial support needs further improvement
3. Problems of delivering goods outside Xinjiang urgent to be solved

Chart 1. Cotton production in Xinjiang since 2009/10 crop year
Chart 2. VSF capacity in Xinjiang since 2009
Chart 3. Yarn production in above-designated textile mills in Xinjiang since 2012
Chart 4. Capacity change in above-designated textile mills in Xinjiang since 2016
Chart 5. Cotton yarn cost structure

Table 1. Policy subsidy for textile mills investing in Xinjiang
Table 2. Factors impact textile mills' production cost in Xinjiang and inland
Table 3. Electricity price in Xinjiang and inland
Table 4. Freight subsidy of delivering cotton yarn outside Xinjiang

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