Out with the old, in with the new

Even leading companies such as Silk Road are still dependent on these machines, which dated back to the 1990s. However, Silk Road will soon wave goodbye to the noisy and non-computerized machines by the end of the year and new technologically advanced machines will take their place.

"We bought the machines for 5,000 yuan each some 20 years ago. We will only be able to sell them for 3,000 yuan each at the most. However, the new computerized machines will cost us 500,000 yuan each," says Ling.

"It is a lot of money, but it's worth the investment. With the new machines, the productivity of each worker will be increased 20-fold annually, because each employee will take charge of a greater number of machines, which can run at faster speeds. Meanwhile, the quality of the products will also be improved. Employees will also work in a more comfortable environment with less humming and buzzing," he says.

"But it is a great challenge for small companies. Higher productivity requires greater stocks of raw materials. If the company stocks more materials worth some 1 million yuan, it will shoulder an extra risk of some 20 million yuan," adds Ling.

But the risk is worth taking, especially for Chinese companies wishing to compete in the domestic market.

"Actually, the requirements given by the MIIT are quite low. If one had to score 60 out of 100 to get a pass in an exam, most of the production facilities we are being required to eliminate would only score 20 seriously," says Ling.

It's natural that companies in the less-developed areas of the country will require more time to keep up with the pace of those in developed areas. But leading companies should shoulder more responsibility by addressing the second problem that the textile industry faces - the waste of natural and human resources, he says.

"The biggest problem facing textile companies is water pollution. The waste textile companies discharge will lead to eutrophication (a process whereby bodies of water gain a glut of nutrients that stimulate excessive plant growth) nurturing all kinds of algae," says Ling.

"Therefore, our company spent a period of one year and invested some 7 million yuan in building our own sewage disposal system, which is capable of purifying coal-black waste into tap water," he says proudly.