Sichuan'S Leather Industry Is In An Unprecedented Crisis Due To A Substantial Increase In Production Costs.

The price of pig skin has soared, labor prices have risen, export tax rebates have fallen, and production costs have increased substantially. * * * this year's pork price boom has caused a social exclamation. Who had thought that the price of pork has brought unprecedented crisis to the leather industry of Sichuan.

Recently, reporters with the Sichuan Provincial Federation of industry and commerce organization research group came to Chengdu Chongzhou Fubang Leather Co., Ltd., just entering the door, Wang Bingquan, chairman of Sichuan Xingsheng leather products Co., Ltd., sighed with emotion. "Before I came here to buy Leather every time, the yard was full of cars, and cars were coming and going.

This is so cold now, it's really bitter! "

Fu Fubang leather is one of the largest 3 pig leather products enterprises in China. The pigskin suede and washable suede products are sold in the United States, Russia, Europe, South Korea, Hongkong and other countries.

Zhang Zhengshu, deputy general manager of the company, told reporters: if they are fully loaded, they can produce 10000 pigskin daily, but now they only process 2000 sheets a day to maintain basic production.

"Raw leather at the beginning of the year about 60 yuan, the highest in the second half to 100 yuan.

The price of leather processed by us has increased by about 30%, and the downstream garment enterprises can not accept it.

Now we lose 15~20 yuan for each piece of leather. The more we do it, the more we lose, the only pressure we produce.

The same is true for Chongzhou and the 3 largest pig leather enterprises in Chengdu, one of the largest enterprises in the world.

Li Sheng, chairman of the company, said: "one production will be a loss. The contract we signed with our customers is only hard to carry out, and the order will be greatly reduced after October.

Compared with last year, this year's production will be reduced by 20% to 30%. If the situation continues to be as it is now, we may reduce output by 60% to 70% next year.

The big factories are still struggling, many of them are closed.

Tannery enterprises are in a difficult situation, and the garment enterprises in the lower reaches are still suffering.

Sichuan Xingsheng leather products Co., Ltd. is the largest leather garment manufacturer in Sichuan. At the most time, it has about 500000 leather products, all exported to the European and American markets.

Wang Bingquan, chairman of the company, told reporters: "pig skins used to be 62~64 yuan per square meter in the past, now 80~82 yuan, and the pig's fleece skin has been 68~70 yuan per square meter in the past, and now it is 87~90 yuan, or nearly 30%.

Foreign customers do not raise their quotations because our production costs are increasing, which makes it difficult for the leather goods companies to take orders. "

What is more serious is that contracts for leather goods enterprises and foreign customers are generally 3~6 months ahead of schedule. At the end of last year or at the beginning of this year, most enterprises did not anticipate that the pig skin would go up sharply this year.

The original profit is very thin, which can withstand the soaring of raw materials?

"However, the order with foreign customers has already been signed. You don't do it without saying that you are not trustworthy. I'll ask you for compensation. If you want to do it, you are bound to lose money."

Wang Bingquan said.

Sichuan is a large province of pig production. Sichuan pig skin is not only abundant in quantity, but also of high quality, which is comparable to sheep skin.

At the same time, Sichuan has a high level of leather technology.

As a result, Sichuan leather and its products enjoy a high reputation in the domestic and international markets. "Foreign orders all refer to Sichuan leather," Wang Ping told reporters. "In the top European and American fashion brand market, Sichuan leather also firmly occupies a place."

According to industry sources, Sichuan is rich in pigskin resources, and about 60 million pieces of pig skins are exported each year. About half of them are exported to the outside of the province. There are dozens of leather enterprises in Sichuan Province, of which 13 are on the upper scale, 15 million are to 20 million garment leather, about 10000000 are sofa leather and shoe leather, and Sichuan pigskin clothing is basically exported to Europe and the United States market. According to rough statistics, the annual sales amount to about 60000000 US dollars is an important force for Sichuan to earn foreign exchange.

Moreover, leather industry is a labor-intensive industry. According to preliminary estimates, Sichuan leather enterprises employ more than 100 thousand people, making contributions to solving employment problems.

"Pig leather processing is a part of the pig industry chain. It can also be said that 31.30,0.10,0.32% is a deep processing industry."

Wang Bingquan said, "Sichuan is a big pig raising Province, and the leather industry should be an industry supported by the government."

According to introduction, the price of pork has been lower than that of pig skin in the past, and a pig can increase its income by about 35 yuan.

In the 80s and 90s of last century, in order to encourage the killing of pigs, the Sichuan provincial government had formulated a policy of stripping a pig skin for a reward of 15 yuan.

Later, with the gradual spread of skinning, the reward amount was reduced year by year until the abolition.

However, pork prices have gone up this year, meat prices are higher than pig skins, skinning is not cost-effective, and slaughtering and processing enterprises have greatly reduced the pigskin stripping rate.

It is reported that in the past Sichuan pig skin peeling rate was above 30%, and now it is less than 10%.

For a variety of reasons, the number of pig slaughtering has decreased, and the output of Sichuan pig has increased substantially. In addition, the rate of pigskin peel and peel has dropped sharply. Why not cause skin source tension?

"We hope to get the support of the government to help us tide over the difficulties."

This is the consensus of Sichuan leather enterprises.

They say that in addition to the soaring price of pig skin this year, there are also factors such as rising labor costs, rising hydropower prices, rising bank lending rates, and export tax rebates from 13% to 5%.

They suggested that local governments should give special preferential policies to the leather products industry in terms of financial subsidies and taxes.

Wang Bingquan told reporters that because of the easy pollution, the government was very strict in approving the leather making enterprises. The enterprises that had been approved to enter the leather making industry had invested heavily in environmental protection. Once they got there, they could hardly be revived.

He said recently that he met executives of tannery enterprises and encouraged them to do everything possible to sustain the business.