On May 14, a CNCotton journalist visited a 50,000 spindle textile factory in Heze, Shandong. While on tour, he noticed both Indian and American cotton in the warehouses.
According to management, the quota for 2006 has increased for them compared to 2005. As a result, they expect to purchase more imported cotton in 2006. Interestingly, in 2005 the company had 500 Mt of quota available but didnt use any. In 2006, they have received a 1000 Mt of quota. The new quota is about 20-25% of their yearly cotton needs.
Management says in 2005 30% of the their cotton was from Xinjiang and the rest was locally purchased. In 2006, the breakdown is 10% US; 10% India; 20% Xinjiang and 60% from other areas.
The factory currently has 200 Mt of cotton in storage or about 15-20 of production needs. This time last year they had about twice the amount of cotton in storage. Total capacity is 600 Mt or about two months of production needs.
