Out with the old, in with the new

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, said Ling.

"The biggest problem for textile companies is water pollution. The waste that 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," said Ling.

"Therefore, our company spent a 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," said Ling proudly.

Other industrialists in Zhejiang are also putting a brave face on the issue. Gao Tianle, chairman of the Tengen Group, a leading Wenzhou-based industrial electronics company, told the Zhejiang Weekly newspaper that the group will definitely shoulder the responsibility for environmental protection.

"Our group will not produce anything that can cause any possible harm to the environment," Gao said.

"To remain profitable while becoming more eco-friendly, we will need to invest more in research and development."

Sun Shaoding, chairman of Zhejiang Fu Kang Group, said that saving energy is good for factory owners. "As a privately run company, we have to be responsible for all the expenses and profits on our own and we will eliminate production lines that are inefficient and wasteful."

Fu Kang, which was established in 1995, has been a leader in the region's packaging industry for years, winning many national prizes for quality. Most of the machinery in the group's factories is imported from Germany, Japan and Canada, Sun said.

"Basically, packaging companies produce very little environmental pollution," Sun said. To further reduce any damage,"we have recently introduced water-based ink for printing". Water-based ink is considered more environmentally friendly than the chemical-based ink the company used in the past. "We will review every step in the production process to ensure that we produce as little pollution as possible."

Wenzhou's local government has produced a list of companies that are low in efficiency and high in pollution. Companies, including producers of leather goods whose annual production is less than 200,000 units, will be closed this year.

"We are not on the list and we will be fine," said Yu Jian, deputy general manager of Wenzhou San Marco Shoes Co Ltd.

The nine-year-old company, which owns one of the better-known shoe brands in the domestic market and has annual sales of more than 100 million yuan, has been adhering to the even-stricter standards of the European Union (EU), its biggest market.

"The production lines in our company can meet all the national standards of environmental protection in terms of sewage disposal and gas emissions," Yu said. After complaints filed by the EU about residual benzene found in the company's shoes, the company started using a new benzene-free glue. "It was no big deal," he said.

Cangnan County, affiliated to Wenzhou, has already met the local government's initiative to increase the capacity of the textile industry by recycling waste textiles. Yang Chengtao, a government official in Cangan, said the county produced some 900,000 tons of recycled fiber from 1.12 million tons of textile off-cuts purchased from around the country and the Southeast Asia region.

"The amount of recycled fiber is equal to the yield of some 3,000 square kilometers of cotton fields. This number was even attractive when the price of cotton soared last year. It provide a good opportunity for textile companies in Cangnan to transform their growth mode," said Yang.

In the 12th Five-Year Plan, the nation is aiming to transform the country from a being "big manufacturer" to a "competent manufacturer". After more than 40 years in the industry, Ling points out the two problems facing Chinese manufacturing across the board we do not know whom we are working for and we cannot work for ourselves.

"We should bear in mind that internationally renowned brands, such as Hermes, Louis Vuitton and Chanel, are working for themselves," said Ling.

"The Chinese used to enjoy some advantages in human resources, land and the environment. But now, those advantages are waning. If we cling to the old-fashioned methods, we will have no right to settle the price. The goods we produce will be highly vulnerable to international interest rates, labor costs and the size of the order. We will not be able to compete with those world-famous brands," he said.

"Only with more advanced technology and highly valued intangible assets, such as the brand's culture, can we break away from the previous methods of economic growth," he concluded.