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Viewing JinHua Private Enterprises How to Face Transformation

Source: Yiwu sourcing agent    Author: Gary      Date: 2011-01-19

   January 13, the U.S. dollar against RMB exchange rate officially entered the "6.5 times", and last June 19 when the RMB exchange reform restart the exchange rate of 6.8275 compared to the appreciation rate has reached 3.2%. Appreciation of the RMB to the export enterprises tremendous pressure, this pressure forcing the city to accelerate multi-enterprise restructuring.
   “On 12th the rate between RMB and US dollar still is 6.6128, it changed to 6.5997 on 13th, for example, as same as 10 thousand us dollar, will shrink 1310 yuan into RMB a day.” A vice director from a bick company Li jialiang told the reporters, RMB appreciation over 3% in six months, in labor, raw-materials costs, RMB continued to appreciate slowly, export enterprises are facing a hard choice: if we raise the competitiveness of pricing led to shrinking, if only to maintain the same price to watch Profits shrink.
It is reported that negotiations with foreign customers, check prices, production and delivery of products, collection ... ... This is the general process of export orders, the cycle at least 2 months, during which if the exchange rate change, will directly affect corporate profits. For example, a $ 500,000 contract orders for the dollar against the RMB exchange rate 1:6.8,2 months after the exchange rate of 1:6.6, price spread 0.2 yuan, which means that once the order profit decreased by 10 million yuan.
In fact, the RMB revaluation is not negative for all companies, for raw materials, equipment, companies mainly rely on imports, but is a rare opportunity. Some enterprises of our city ues raw and auxiliary materials, such as chemicals, plastics, rubber, wood pulp, textiles, leather, mostly directly or indirectly. imported from abroad, "RMB appreciation helps reduce the bulk of the domestic price of raw materials is conducive to business expansion of foreign advanced technology and key equipment imports. " Xinghua Leather Co. official says.
Face in the current trade prices, rising costs squeezed, develop a low carbon economy and change management ways, has become a necessary requirement for sustainable development of Chinese economy. “ Jinfei” unit will with the help of the power of lean management, made enterprise’s production more rationalization, standardization, improve product quality stability and the production staff Initiative. As vice chairman Wang jianping said when he investigated city urban development zone; “it is really precious for enterprises to develop a lean way, the government will give them special treatment in the service and land use policies and so on aspects.



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