Shantou aims to strengthen textile and garment industry

Shantou, a coastal city in east Guangdong province, is prioritizing its manufacturing industry in its economic development strategy, with a particular focus on strengthening its textile and garment industry.

The city announced its plan to accelerate the development of four major projects, a global textile procurement center, an office complex for textile and garment corporate headquarters, an exhibition center, and an industrial park, at the opening day of the three-day First China Chaoshan International Textile and Garment Exhibition on May 28.

It also aims to integrate manufacturing, logistics, innovation, and human resources to turn the city into China's textile and garment industrial base with global influence.

To reach its goal, Shantou will promote industrial upgrading in Chaonan and Chaoyang districts, which are home to the city's key underwear and house dress bases. It will also emphasize innovation, promote industrial clustering, improve industrial chains, and carry out branding strategies to keep the high-quality development of the sector on track.

Guangdong Hongxing Industrial makes a stronge impression at the first China Chaoshan International Textile and Garment Exhibition. [Photo provided to chinadaily.com.cn]

One of the highlights in Chaonan district is the local government's effort to encourage local enterprises to incorporate high-tech. The total capital input for the sector's equipment renovation was 1.72 billion yuan ($256.9 million) in 2021, with the district introducing the largest number of new textile and garment machines and technologies in Guangdong province, according to Zhang Xiaokeng, head of Chaonan district.

"We are striving to develop the sector into an industrial cluster with an annual industrial output value surpassing 100 billion yuan in a couple of years and 200 billion as soon as possible," Zhang added.

Guangdong Hongxing Industrial is an industrial leader in Chaonan district and became China's first listed house dress company last year.

"The industry is currently facing negative impacts caused by the COVID-19 epidemic. However, we are optimistic about a quick recovery in the near future," said Guo Wuwen, board chairman of Hongxing.

"That's why we are busy installing new automated production lines to get ready beforehand for the possible business boom. We have also recently acquired a cross-border e-commerce company in Guangzhou in hopes of further tapping into overseas markets."

According to official statistics, Chaonan makes about 80 percent of house dresses and 40 percent of female underwear in China, totaling one billion pieces each year. The sector in the district also generated more than 70 billion yuan worth of industrial output value in 2021.

A local brand holds a promotional livestream event at Maoxing e-commerce underwear industrial park. [Photo provided to chinadaily.com.cn]

In Chaoyang district, where three of Shantou's four major projects will be located, equal efforts are being made to bolster the textile and garment industry, with a particular focus on bolstering e-commerce development.

One success story is the Maoxing e-commerce underwear industrial park. The complex integrates the resources of the whole underwear industrial chain, including e-commerce operation, supply chain selection, warehousing and logistics, as well as textile trading.

"The auto-sorting system here is capable of handling a maximum of about 600,000 parcels daily and more than 100,000 parcels are sent each day from here," said Zhang Zefeng, general manager of the e-commerce industrial park.

The park has secured over 200 companies, which yielded an aggregate industrial output value of 3.2 billion yuan and generated a pre-tax profit of 120 million yuan in 2021, Zhang added.

Chaoyang district has a total of 302 textile and garment enterprises with an annual business income of at least 20 million yuan, which generated an industrial output value of 46.5 billion yuan in 2021, official statistics showed.

Shantou has more than 7,000 textile and garment companies, which contribute to the most complete textile and garment industrial chain in China.

Its 688 enterprises that have a yearly business income of at least 20 million yuan realized an industrial output value of 114.4 billion yuan in 2021, according to official statistics.