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Interview [East Asia]

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Shandong Weiqiao Textile Group

SHANDONG WEIQIAO TEXTILE GROUP CO., LTD.

Special Interview with Mr. Zhang Shi Ping,
Chairman of Shandong Weiqiao Textile Group Co., Ltd.

SHARING YOUR LIFE
2002 Winter

Aiming to become the world's largest spinning company, Shangdong Weiqiao Textile Group Co., Ltd. is pursuing a largescale expansion strategy.
The Shangdong Weiqiao Textile Group does not aim solely to be huge, but also to become the world's top spinning company on a total basis including higher quality and new added value. As such, it is representative of that impetuously leaping dragon that is the textile industry in China, which already the largest in the world in all kinds of aspects.

We talked with Mr. Zhang Shi Ping, Chairman of the Shangdong Weiqiao Textile Group.

Mr. Zhan Shi Ping & Mr. Daisuke Murata

Mr. Zhang Shi Ping
Chairman of Shandong Weiqiao Textile Griup Co., Ltd.

with
Mr. Daisuke Murata (right),
Senior Managing Director of Murata Machinery

You invest enormous amounts in spinning machines and weaving machines.
Mr. Zhang Shi Ping

We successfully expanded to 1,800,000 spindles, which was our target for the year. Total group production now amounts to 240,000 tons of cotton yarn and 1.1 billion meters of fabric, including 150 million meters of denim.
Murata Machinery Executive Vice President Okamoto was present at the ground breaking ceremony for your new plant being built at a nearby industrial district. Is this new plant also part of your expansion strategy ?
Mr. Zhang Shi Ping

TYes. Completion of this plant is slated for 2004, and we hope to use it to double current production by 2005. Our plan is for this plant to produce not only regular products but expand into differentiated products to support a wide range of items. Compact yarn, which we will start producing at the beginning of next year, is one part of this plan.
However, our main emphasis is very much on being able to deliver basic products required in large quantities at a price that is more competitive than that of our competitors.

The construction of a private power station at all of your plants is also directed toward this aim ?
Mr. Zhang Shi Ping

That is exactly right. When we build a new plant, we always start by building a private power station. A quality, relatively cheap and abundant work force in that region is also an advantage. Being able as a result to contribute to the expansion of employment in that region is also a major aim.
Which area are you targeting with this latest expansion ?
Mr. Zhang Shi Ping

Currently 60% of our production is for export and 40% for the domestic market. This ratio will not change significantly with this expansion. However, while most of our exports currently go to Asia, China's admission into the WTO has lifted the issue of quotas, and we hope to expand our exports to Europe and America. For this purpose, we must produce quality cotton fabric, and we will have to introduce Air Jet Looms and automatic winders on a large scale.

No.21C Proces Coner at Shandong Weiqiao Textile Group

No.21C Process Coner at Shandong Weiqiao Textile Group

China's dyeing technology is said to be relatively weak compared with overseas.
Mr. Zhang Shi Ping

This certainly was true in the past. However, the situation has improved to a marked degree. My own company invests in this area with the aim to raise the level of quality.

Thank you very much for using Muratec's No. 21C PROCESS CONER. What expectations do you have from Muratec, if any ?
Mr. Zhang Shi Ping

Other companies cannot beat you on the technological level, of course, and we are satisfied with PERLA-A and the other products from your company that we use, in terms of the high quality we can produce with that technology and the special functions that enable us to create added value.
We now would like you to increase your development speed so that we can offer new products. Another important point when we select equipment is the quality of aftersales service. We'd like you to do even more in this regard. The textile industry is currently engaged in fierce competition for survival on a global level, and this also applies to China.
Amidst continuing mergers of spinning companies, our company aims to survive this intense competition by expanding and by strengthening its corporate structure.

No.21C Process Coner at Shandong Weiqiao Textile Group

No.21C Process Coner at Shandong Weiqiao Textile Group

Shandong Weiqiao Textile Group

SHANDONG WEIQIAO TEXTILE GROUP CO., LTD.
Zouping, Shandong, P.R.China


http://wqfz.com/

Shandong Weiqiao Textile Group

The Shandong Weiqiao Textile Group, which is located in the Shandong Province in China, is a comprehensive textile company with integrated operations that range from spinning to fabric production and dyeing.

The company has spinning and weaving machines amounting to a total of 1,800,000 spindles on a vast lot of 2,000 ha, making it the top Chinese textile manufacturer in terms of both production scale, sales, and profit.

Shandong Weiqiao Textile Group

The above information was written in December 2002.

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