Chinese textile companies divided over diversification
Source: fibre2fashion Date: 2006-06-08
Earning and return on investment from 55 Chinese public listed textile companies went down compared to all listed companies in first quarter of 2006.
Textile companies are facing unfavorable situation like, appreciation of Renminbi, rising prices of raw materials and re-imposition of quota by European Union and the US, which have compelled textile and garment companies to diversify business apart from that dependent on textile and garment industry.
In this rapidly changing scenario, 27 companies still want to continue business sailing in the same business while about 20 other are ready to diversify for better performance and development.
Companies that want to continue their original business account for 61.55 percent of the total investment of listed textile companies.
