The declining momentum of China textile machinery industry gradually improved slightly since the second half year of 2009. Both production and sales indicated negative growth; however, the growth magnitude is obviously retarded due to the recessed upstream market demand compared with the first half year of 2008. Annual meeting of national textile machinery industry was recently held in Chongqing. Over one hundred decision-makers from almost all major domestic textile machinery companies made their attendance to negotiate the next-step industrial adjustment.

China textile machinery industry has realized a consolidated industrial output value 38.807 billion RMB for the first three quarters of 2009, increased by 2.21% year-on-year. Sales revenue has increased by 1.53%, reaching up to 38.742 billion RMB while as contrast to that, the sales profit has decreased 147 million RMB reaching 1.385 billion RMB. About $875 million dollars were exported, increased by 31.42%. Negative growth situation of textile machinery began to improve and recovery tendency gradually gained momentum.

Medium and high-end equipments are the primary market demand tendency since the beginning of this year. Chemical fiber machines, computerized flat knitting machines, rapier looms and warp knitting machines all have seen enlarged market demand. Energy-saving and emission-reduction dyeing and finishing equipments were also hailed by the upstream market. Stimulated by the national infrastructure-construction-reinforcement policy, nonwoven equipments also have seen phenomenal growth.

Mr. Gao Yong, President of China Textile Machinery Association pointed out that industry upgrade as well as structural adjustment and technical textiles developing are the two dominating marching directions of China textile industry in the near future. Textile machinery industry should be focusing more on these two underlined directions.

Textile machinery industry has seen almost double digits growth annually since after 1999 thanks to the ten million spindles growth each year. Yet the financial crisis burst out in 2008 delivered a heavy blow to all manufacturing companies. Only 6.46 million spindles of spinning frames were sold last year, dropped by a striking 33% as contrast to last year and about five million spindles of spinning frames are estimated to be sold, which in Mr. Gao Yong’s perspective, is a genuinely rational demand. He persisted that even if the all the impacts from the financial crisis disappeared, the ten-million-spindles-demand-per-year era would never return. Annual growth would maintain around five million spindles. China textile machinery industry is entering into a stage that industry upgrade and structural adjustment be carried out in solid practice.

In the next two years, technical textile fibers proportion will be increased to 18% from the current 16%, which requires domestic textile machinery suppliers to be focusing on the R&D of relative equipments. Take nonwoven fabric equipments here for instance, combined and composite nonwoven fabric technology and wide-width nonwoven fabric manufacturing equipments are the primary R&D directions. In the mean time, development of green and environmental-friendly equipments should also be expedited.

Representatives all resonated that although the current situation remains severe, equipments with higher efficiency, better energy-saving performance and higher added-value would still be hailed by the market. A good self-disciplined market order must also be maintained. Never has low-price competition been an effective measure to successfully peddle over the financial crisis.

Source：China Textile Leader