Last updated on February 16th, 2023 at 09:35 am
Foreword: The non-woven industry looks at China; In the same vein, China looks at Xiantao, and Pengchang Town is the birthplace of the Xiantao non-woven industry.
Since the late 1980s, the non-woven industry centered on Pengchang has embarked on a path of rise-growth-rise.
Peng chang Town, with a total population of 116,000, produces 60% of China’s non-woven products, accounting for a quarter of the global market share. It is the most extensive non-woven products processing and export base; it ranks among the “National Top 100” industrial clusters and has successively won the reputation of “Cultured Town in Hubei Province,” “National Development and Reform Pilot Town,” and “China’s Famous Town of Non-woven Fabric Products.
The Beginning of The Story:
In 1986, a weaving factory in Pengchang accidentally got a batch of non-woven orders from a foreign trade company in the coastal area. After the smooth delivery, the demands from the foreign trade company progressively increased. The story of a foreign trade order creating the non-woven industry in Pengchang Town began to spread among enterprises in Xiantao City.
However, the shortage of non-woven products processed by weaving factories has made people in Pengchang Town realize that producing non-woven products is an extraordinary business opportunity.
When people find business opportunities, they must quickly expand the market. In 1987, Pengchang Town established a collective initiative with expertise in producing and processing non-woven products for Jiangsu and Zhejiang foreign trade companies.
Lei Yuwu, a witness to the non-woven industry in Pengchang Town, said: In the 1980s, the production of non-woven products was effortless; the sleeve covers and shoe covers were only two products. Where do the raw materials of our non-woven fabrics come from? These non-woven fabrics’ raw materials were from Zibo city.
In the early 1990s, to find space for the survival and development of enterprises, Pengchang Town, woolen processing plant, and garment factory cooperated with foreign trade companies when their main business was not flourishing, and they decided to take advantage of export channels. They develop “sideline” and produce a small amount of non-woven products such as money bags, disposable shoe covers, non-woven round caps, shower caps, and protective clothing.
In 1991, the annual sales of non-woven fabrics in Pengchang Town were less than 3 million yuan, and no one took these small products seriously. However, it marked the birth of a new type of non-woven industry in Pengchang Town.
After the Xiantao Municipal Government issued a policy to support the development of the private economy, Pengchang Town began to set up its enterprises to produce non-woven products. This helped them create a trend of private development of the non-woven industry in Pengchang. In 1995, the Pengchang town government decided to bring all 42 enterprises to the market. This quickly brought liveliness to the enterprises. At that time, the international demand for non-woven fabrics is developing rapidly at an annual growth rate of 13%. A group of enterprises quickly converted their production capacity. They became the first group of enterprises to establish the non-woven industry in Pengchang.
Under the demonstration and leadership of these advanced enterprises, the number of non-woven product processing enterprises in Pengchang increased. The drive was from 19 in 1999 to 36 in 2000 and 41 in 2001. Products have also grown from the initial 6 to nearly 50. The tax revenue exceeds 10 million yuan, accounting for 77% of the town’s industrial and commercial tax revenue, establishing a good foundation for industrial development, forming group advantages, and creating industrial characteristics.
How Should the Enterprise Develop?
Pengchang Town Committee and the government regard non-woven fabrics as a strategic industry; they help enterprises obtain orders and reduce raw material costs. They also encouraged enterprises to apply for free export rights. Also, supporting the establishment of joint ventures, optimizing export methods, and other aspects to support the development of enterprises. A series of policy measures have made many non-woven enterprises grow rapidly.
Yang Jianguo (a former mayor of Pengchang Town), a witness of the non-woven industry in Pengchang Town: By 1996, there were already many millionaires. Until 2000, Pengchang Town has cultivated 4 billionaires, 26 multi-millionaires, and countless millionaires.
The Opportunity.
In 2003, “SARS” became popular in China, and disposable masks became an urgently needed item. “SARS” promoted the explosive growth of the non-woven industry in Pengchang Town. That year, the output value of non-woven fabrics in Pengchang Town reached 800 million yuan, establishing its position in the national textile industry. The outbreak of bird flu in 2008 once again brought the development of the Xiantao non-woven industry to a higher level. The total number of non-woven enterprises has reached 208, with an output value of nearly 6-billion-yuan, accounting for a quarter of the national output.
Reform and innovation are the inexhaustible driving force for the industry’s sustainable development. As the birthplace of the Xiantao non-woven industry, Pengchang Town is developing rapidly and entering the international market.
In 2021, the output value of non-woven fabrics in Xiantao City reached about 110 billion yuan. Xiantao’s non-woven industry was born in the 1980s. After 30 years of development, it has realized three upgrades from regular workshops to aseptic workshops, from manual processing to mechanical processing, and from ordinary products to high-demand products. These non-woven Products cover various designs for medical and daily use, environmental protection, clothing, electronics, automobiles, aerospace, and other fields, with a total of 32 categories and 135 varieties.
Currently, Xiantao City has 1,011 non-woven fabrics and products enterprises. And 103 enterprises above the designated size, with more than 100,000 employees.
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