Interview With Liu Tao, General Manager Of Tongxin Textile Machinery Co., Ltd.

In the first half of 2012, raw material prices, vicious competition in the same industry, and increased R & D costs made the textile equipment industry more difficult.

So, how did the business in the first half of 2012 go? How did the enterprise prepare for it? With these questions, the reporter interviewed.

Liu Tao, general manager of machinery (Wuhu) Co., Ltd.

Reporter: please briefly introduce the production and operation of enterprises in the first half of 2012. How about the company's profits?

Liu Tao: the company's production and operation in the first half of 2012 is very good. Its output value and sales revenue have doubled over the same period last year, but the profit is somewhat unsatisfactory. The reasons are as follows: first, we produce high-speed and high energy flat spinning spindles which represent the most advanced technology in the world. At present, it is still in the stage of market guidance and promotion. Customers know less about contact. Therefore, customers often compare prices of traditional pointed bottom spindles which have been used for decades in China, and it is difficult to rationally accept our reasonable selling price. This is also the reason why foreign similar spindle products have not been widely applied in China for more than 20 years.

Our current selling price is only a fraction of that of foreign similar products, though it is much higher than that of traditional pointed bottom spindles, but basically it is the cost price level.

Second, the working principle of high speed and high performance flat bottom spindles is very demanding for design and manufacturing accuracy, the production process is complex and strict, and the materials selected for some parts are also more expensive, so the manufacturing cost is relatively high.

For example, in terms of employment, we employ a lot of advanced R & D technicians in many industries, and the cost of labor is relatively high. In terms of equipment, we allocate high investment and depreciation, and because of the high precision requirements, the processing time is long, and all kinds of costs will increase correspondingly, and some will increase exponentially.

Third, some enterprises have not yet understood the design theory of high speed and high performance flat bottomed spindles, and blindly imitate manufacturing without the production conditions. Although they resembles but do not have the performance and quality of high speed and high performance flat bottomed spindles, they are even far inferior to traditional pointed bottom spindles. They are hasty to the market, causing great trouble to the market and affecting users' cognition of high-speed and high-performance flat bottomed spindles.

Reporter: how do you judge the textile and textile equipment industry in the second half of 2012 and the next 2~3 years?

Liu Tao: at present, the domestic economy is obviously declining, and the world economy will continue to be weak. In the second half of 2012, the textile industry will continue to be difficult, but we expect that there will be a big turnaround in the next 2~3 years, because the world economy will eventually get out of the doldrums, and domestic demand will be further released. At that time, the textile and related industries will have a restorative growth. Now the key is how to insist on firm progress for all enterprises, and it is a good time to pform and upgrade the capable enterprises.

China's ring spinning is developing in the direction of high speed and automation. As a special equipment industry for the textile industry, it will be able to make great progress. Even if the textile industry will be pferred to other parts of the world in the future, China's textile machinery and accessories industry still has a long development opportunity.

Spindle, as the core part of spinning frame, is more important in the process of high-speed development. As always, we will stick to our high-end product line with high cost performance. On the one hand, we will continuously improve its performance and quality. On the other hand, we will minimize the manufacturing cost and let the textile enterprises make good use of the products.

Reporter: what is the biggest problem that the textile machinery enterprises are facing in the development process? What support will the country give?

I think the biggest problem is the overcapacity, disorderly competition and price distortions of the whole industry. The enterprises are powerless and unwilling to invest in research and development. They are habitually vicious competition, and their peers are full of plagiarism, criticism and lies.

As far as our company is concerned, how to cooperate with other textile machinery and accessories enterprises and spinning enterprises to systematically study and solve the problems of high-speed spinning, so that our high-speed spindles can really be driven to high speed is the key bottleneck that we need to break through.

For these key bottlenecks, I think the corresponding departments of the state should design special topics for the problems in the high-speed spinning of our country, select those innovative enterprises to tackle the problems, and organize the organizations that are engaged in basic disciplines, theoretical research and experimental analysis to provide support.

In fact, we can also make many innovations and breakthroughs in spindle, but some of our current strength is obviously difficult to achieve.

Reporter: what opportunities and challenges will your company face this year?

Liu Tao: the biggest opportunity facing the company this year is that our spindle products have high speed and high performance advantages.

Enterprises' expectations and requirements for speed increase, efficiency enhancement and quality are favored by some pformation projects and new projects.

Nowadays, all sorts of fake and new so-called "new" spindle products are flooding the market, interfering with the users' cognition and use of real high quality products, and the vicious and disorderly competition between similar products, which seriously hamper the development process of our country's spinning spinning. How to deal with these problems is the biggest challenge for our company at present.

Reporter: what are the biggest advantages and selling points of the company's products? What are the new product development plans?

Liu Tao: under the premise of firmly improving the quality of existing products, production processes and staff, the company plans to further expand its capacity and achieve more advanced technology, more reasonable process and more efficient efficiency in the process of expanding production capacity.

The biggest selling point of the company's products is its high speed, high performance and high cost performance advantages. It can help spinning enterprises to increase production, save electricity, save fuel, save labor and reduce noise, reduce consumption of spindles and steel collar, travellers, bobbins, etc., and reduce the occurrence of occasional yarn faults such as uneven twist, oil stained yarn, Mao Yu yarn, shaking head yarn and broken ends yarn.

New product development in the future will be developed in the following directions: the quality of products will reach the most advanced level in the world and extend the fuel cycle further; the product range will be extended to higher speed and energy saving and more suitable for both ends of low-speed heavy load, so that the bobbin can be easily plugged and the doffing yarn will not be wound again after the doffing is restarted.

Reporter: in today's situation, how does the company plan to adjust its internal structure to get through the recession?

Liu Tao: the whole industry downturn is not a single enterprise can change, can change only the enterprise itself.

In the current recession, the demand of textile enterprises is decreasing, but the demand for quality is obviously improved. What we need to do is how to better meet their needs, so that they can do whatever they want, and do not hesitate to do so for the time being.

Secondly, we should seriously consider the strengths and weaknesses, opportunities and challenges of enterprises in production, technology, marketing and management. We should listen carefully to the new demands and ideas that the spinning enterprises are thinking of in the current recession, grasp the opportunities in time and accurately, compare Corrections Corporation's development ideas, adjust the specific behaviors of enterprises, and welcome a better future.