«Textile Factory Siberia» LLC is one of the first production facilities opened in Jurga after the city was awarded the status of a territory of advanced development (TOP). The main activity is the manufacture of fleece, softshell and faux fur. The factory is the only full-cycle textile enterprise in Russia with all the resources to produce pile knitted fabrics in any volume. The main product range was presented at the company's stand, including the best samples of fleece fabric made of polyester textured yarn of various classes – from premium class to a more affordable variety.

We talked with Alexander Gorbatenko, a representative of the «Sibir» company, about the specifics of the textile enterprise, the current situation in the service market, problems and their solutions, and also asked Alexander to give a forecast for the the development of the company's activities.

– At the moment, I would describe the situation on the market as uncertain. We are seeing a very serious decrease in activity. Despite the fact that last year showed very good results – we expanded and increased our production by one and a half times – demand, unfortunately, fell, some of the equipment was never put into operation, the machines are still in their original packaging. I'm trying to analyze what's going on. In China, all sorts of changes took place in the raw materials market: at first, the price rose – China limited the production of polyester yarns, there was a threat that the thread would rise in price, but by the summer we saw a 20% drop in prices. Therefore, we can say that the market is totally unstable. 

Statistics from last year show that a huge amount of polyester was imported into the country. Perhaps everyone was preparing for some kind of jump. After all, polyester is currently the number one product in the world, and cotton cannot replace it in terms of hygienic characteristics. 

The situation is unpredictable, and today I observe the following risks in the market. The first is non–payments in China for raw materials. I talked with colleagues, everyone has a similar problem – of the two payments sent, one is steadily returned, in the worst case, both are returned. Logistics has also become very expensive. And yet, for some reason, China has now lowered the prices of raw materials. We do not know how events will develop. 

What actions will we take? We will take it with our efficiency. We have very good stocks; textile chemicals have been purchased for at least six months. And textile chemistry is the most important thing in our business. Any fabric property can be set by textile chemistry. However, we are optimistic about the future – it has been worse. Fortunately, we do not have loans, after 25 years we have finally closed them. 

At this stage, we are the only full–cycle textile enterprise in Russia - due to the fact that it is becoming increasingly difficult to supply from China, our competitiveness is increasing. Trucking from China has not become cheaper, the railway is worth it at all. Just yesterday I talked with colleagues – their containers are right on the border in Manchuria, they have not been able to do anything for a month. 

There was also a problem with returning empty containers to China. The fact is that the rental of containers includes their return. Previously, this was solved by the fact that containers were loaded with goods from Russia, such as timber, and shipped. And now there are no goods from us to China, but all empty containers need to be returned. It happens that you place the next order, but there are no containers in China. 

Accordingly, the rates are rising again. The situation is quite difficult, but we have also seen high prices. All this affects the cost of production and the timing, of course. 

If we compare in cost, we are slightly inferior to Chinese manufacturers in some positions (no more than 20%). However, we have feedback, we accept claims, and in case of disputes it is easier to interact with us. 

The «Sibir» factory invites all Russian manufacturers of fleece clothing to cooperate. The deadlines for completing orders have now decreased, it takes only 2-3 weeks to produce canvases of any color and volume. The company is also waiting for everyone who sews blankets, dog beds, mats – any products made of polyester.