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Content provided by : Hong Kong Trade Development Council
16 Oct 2009
Qingdao's transforming moment

  Qingdao's textile industry seeks an upgrade. (Image courtesy of Xinhua News Agency)
  Qingdao's textile industry seeks an upgrade.
A number of textile and garment enterprises in Qingdao are evolving from an OEM model into entities producing branded finished goods.

Qingdao Associated Textiles Group (Qatex) is one of the 71 national-level textile industry bases in China. The company supplies about 80% of the differential high-grade yarns used by the country’s knitting industry.

The group also exclusively develops and produces Qingdao fabrics possessing anti-electromagnetic radiation and fire-proof functions, driving the city's textile industry to move towards high tech, greater sophistication and top end sales.

Special fibres

According to Ma Xiufeng, Qatex's Head of Marketing and Sales, the last three years have seen the company devoting greater effort to restructuring, with the emphasis on technological reform and product development.

Ma said that pure natural fibres can no longer satisfy consumers' demand for garment quality. So "green fibres" extracted from wood and plants have now become the mainstream.

Since the successful launch of imported fibres Tencel and Modal on the Mainland, Qatex has successfully developed over 90 types of special, high-grade fibres, including bamboo, milk, soya bean fibres as well as pearl fibre Tencel, seaweed and water transport fibres.

The group has also mixed different proportions of these fibres to make high-grade yarns.

It is understood that Qatex produces over 300 types of yarns a month and the company has already produced nearly 1,000 in total, winning the title of a "yarn supermarket".

The variety of products and fast development of new products have attracted a large client following. About 80% of the differential high-grade yarns used by the Mainland textile industry are supplied by Qatex.

Its regular customers include garment enterprises of such well-known brands as Jifa, Joe One and SeptWolves, as well as other high-end home textile manufacturers.

In addition to yarns, Qatex develops many kinds of functional fabrics and products. One is a fire-proof fabric made with anti-combustible fibres.

Anti-electromagnetic radiation, anti-static electricity and water transport fabrics are also items which the company produces. They can be extensively used in garments and home textiles.

Ma pointed out that with the computer gaining increasing popularity and with electromagnetic radiation in the city becoming stronger, there is a ready consumer market for anti-electromagnetic radiation fabrics from Qatex.

Targeting the finished goods market

In recent years, a number of textile enterprises in the city such as Jifa, Rcollar and Qatex have been transforming from intermediate manufacturing enterprises undertaking OEM and fabric production into enterprises possessing their own branded finished products.

Ma said that the profit margin for finished products is high. In a city like Qingdao, where land is expensive, some textile enterprises only act as processing factories, so their growth is tethered.

It's only by moving towards high tech, high-end branding that they're able to expand. Qatex has been developing finished products such as jacquard home textiles and high-grade fibre garments. Its anti-radiation children's clothing will be launched on the market soon.

from Justin Liu, Qingdao Office

(Image couresty of Xinhua News Agency)