Three Mills Near Hanzhou: Companies Concentrate on Increasing Exports
December 21, 1999
Hanzhou, China - There are many decorative fabric mills within one half hour flying time of Shanghai, but I chose to take a bus and a train for my visits just to sample the local transportation and get the lay of the land.
A visual inspection of these mills revealed older but serviceable equipment with paper jacquard cards overhead and some newer Somets (with electronic heads in some cases), but these are not typical for most mills in the People's Republic of China.
The mills produce a saleable product for domestic consumption, but up to 40 percent is geared for export depending on the quota available. The mills buy quota from the Chinese government strictly on a highest bid basis. Many mills market their products through government-owned import-export groups, which charge about three percent from the mill for the service. Other mills choose to sell directly to the end customer either direct or through agents. It is expected that as their business grows, newer equipment will be purchased.
Here's an introduction to three different mills.
A note to those planning a visit: Without an interpreter, you will understand nothing about the Chinese. Keep in mind that answers to the questions may not be the answers to the questions you ask!
Ningbo Veken Group Co. Ltd. in Ningbo is an important exporter of jacquard damask bed linen an hour south of Hanzhou with very modern equipment.
This state-owned company turns over $100 million and has shares on the Shanghai exchange. The President is Hong Xi Meng.
Veken sells $20 million worth of cotton damask bed linens in up to 400-thread count, the bulk of which is earmarked for export. Decorative fabrics and tablecloths are a smaller part of the production - no more than 20 percent, according to Chen Lin Xiang, Veken's Vice General Manager, Decorations Branch.
Veken has 144 looms, many with state-of-the-art Somets and electronic Bonas heads.
Veken exports to the U.S.A. to Springs Industries and through a joint venture called American Pacific where it is the controlling partner. Other markets include Japan, Australia, New Zealand, South Africa, U.K. and Germany.
Veken is a Heimtextil exhibitor.
Zhejiang Zhongui Jeni Decoration Textiles Co., Ltd., in Hangzhou was a state-owned enterprise at one time but today it's jointly owned by the banks, the local village and some public ownership.
Chen You Ying is the energetic General Manager who is dedicated to her craft. ''Our products are as good as anything produced in Europe today,'' she said. Under the Jeni Decoration brand, the company has an active, rapidly growing export program.
Jeni makes jacquards on a variety of looms, some of which are quite modern.
Kelida Decorative Cloth Corp., Ltd. in Hangzhou is the only completely privately owned mill I visited. It is 10 years old and produces 1.8 million meters of jacquard upholstery annually according to the owner You En Xiao.
Kelida exports to Japan, Taiwan, Hong Kong, Singapore, Australia, Italy, Saudi Arabia, Russia and the U.S.A. You En Xiao's wife, Sun Wei, is Export Manager. The company's turnover is about $8 million and in three years, You En Xiao projects $12 million in sales. The company sells domestically under the name Ningbo Fangzheng Artistic Cloth Weaving Co.
The mill keeps its ten looms running continuously, 24 hours a day, seven days a week. The average selling price per yard is $3.35 a yard, but a cotton chenille is available at $8.10 a yard FOB.
You has made it a priority to take care of his workers and their families. He provides housing for them in his campus-like complex. Eventually, You said, he is going enhance the scenic beauty of the grounds, by installing a garden and pond, something he said he will enjoy very much. (We took a side trip to a beautiful garden in Hanzhou, which is considered a heaven on earth by many, Chinese.)
Like all of the mill executives I met, You is extremely dedicated and serious about his business and takes pride in his products. He has also invested in a CAD system that is installed at a local university.
A visual inspection of these mills revealed older but serviceable equipment with paper jacquard cards overhead and some newer Somets (with electronic heads in some cases), but these are not typical for most mills in the People's Republic of China.
The mills produce a saleable product for domestic consumption, but up to 40 percent is geared for export depending on the quota available. The mills buy quota from the Chinese government strictly on a highest bid basis. Many mills market their products through government-owned import-export groups, which charge about three percent from the mill for the service. Other mills choose to sell directly to the end customer either direct or through agents. It is expected that as their business grows, newer equipment will be purchased.
Here's an introduction to three different mills.
A note to those planning a visit: Without an interpreter, you will understand nothing about the Chinese. Keep in mind that answers to the questions may not be the answers to the questions you ask!
Ningbo Veken Group Co. Ltd. in Ningbo is an important exporter of jacquard damask bed linen an hour south of Hanzhou with very modern equipment.
This state-owned company turns over $100 million and has shares on the Shanghai exchange. The President is Hong Xi Meng.
Veken sells $20 million worth of cotton damask bed linens in up to 400-thread count, the bulk of which is earmarked for export. Decorative fabrics and tablecloths are a smaller part of the production - no more than 20 percent, according to Chen Lin Xiang, Veken's Vice General Manager, Decorations Branch.
Veken has 144 looms, many with state-of-the-art Somets and electronic Bonas heads.
Veken exports to the U.S.A. to Springs Industries and through a joint venture called American Pacific where it is the controlling partner. Other markets include Japan, Australia, New Zealand, South Africa, U.K. and Germany.
Veken is a Heimtextil exhibitor.
Zhejiang Zhongui Jeni Decoration Textiles Co., Ltd., in Hangzhou was a state-owned enterprise at one time but today it's jointly owned by the banks, the local village and some public ownership.
Chen You Ying is the energetic General Manager who is dedicated to her craft. ''Our products are as good as anything produced in Europe today,'' she said. Under the Jeni Decoration brand, the company has an active, rapidly growing export program.
Jeni makes jacquards on a variety of looms, some of which are quite modern.
Kelida Decorative Cloth Corp., Ltd. in Hangzhou is the only completely privately owned mill I visited. It is 10 years old and produces 1.8 million meters of jacquard upholstery annually according to the owner You En Xiao.
Kelida exports to Japan, Taiwan, Hong Kong, Singapore, Australia, Italy, Saudi Arabia, Russia and the U.S.A. You En Xiao's wife, Sun Wei, is Export Manager. The company's turnover is about $8 million and in three years, You En Xiao projects $12 million in sales. The company sells domestically under the name Ningbo Fangzheng Artistic Cloth Weaving Co.
The mill keeps its ten looms running continuously, 24 hours a day, seven days a week. The average selling price per yard is $3.35 a yard, but a cotton chenille is available at $8.10 a yard FOB.
You has made it a priority to take care of his workers and their families. He provides housing for them in his campus-like complex. Eventually, You said, he is going enhance the scenic beauty of the grounds, by installing a garden and pond, something he said he will enjoy very much. (We took a side trip to a beautiful garden in Hanzhou, which is considered a heaven on earth by many, Chinese.)
Like all of the mill executives I met, You is extremely dedicated and serious about his business and takes pride in his products. He has also invested in a CAD system that is installed at a local university.