Industry Focus

Definition of Textiles Industry

Clothes need to go through four manufacturing processes: spinning, weaving, dyeing and sawing. Spinning is the first step, for instance to make cotton into cotton yarn. Weaving comes next. With either knitting or weaving, we can have either knitted or weaved greige fabric. Dyeing is the third step. Greige fabrics need to undergo dyeing process in a factory until they are in colors. Last step is sawing, with garment factories turning dyed fabrics into clothing. Different clothes are made of different materials. In the earlier days cotton was the dominating material for the local textile industry. Cotton is spun into yarn, and then weaved into cotton fabrics. Fabrics would then be sown into clothes. With other materials like wool, it goes through the same process.

Textile industry comprises several manufacturing processes. From spinning to weaving the technique can be traced back to ancient crafts. And from crafts to machine aided manufacturing processes, textile and garment industries are born.

Spinning or Weaving Comes First?

The correct sequence of the textile industry starts from spinning to weaving, then dyeing. Development of textile industry in industrialized countries usually starts with spinning production, followed by weaving. Textile industry in Hong Kong started before the war, but with weaving preceded spinning in its development. During the 1930s, knitting and weaving industries in Hong Kong were already quite developed. However, there was no spinning factory at that time. Cotton yarns were imported for the local knitting and weaving factories. These cotton yarns were used to produce greige fabrics, which then became cotton socks, vests, homespun cloth, t-shirts and towels, etc. Products were made for the local market, as well as exported to mainland China, Southeast Asia, Europe and South America, etc.

There was one factory in Hong Kong with spinning facilities before the war. In 1899, Jardine Matheson started Hong Kong Cotton-Spinning, Weaving, and Dyeing Company, Ltd. The factory was at So Kon Po, Causeway Bay. It imported cotton and spun it into yarns. In 1914, the factory had to relocate to Shanghai due to the lack of skilled labors, shortage of electrical power and clear water, and also because of the unfavorable humid weather to yarn spinning. From then on until the onset of WWII, local textile industry was mainly in knitting and weaving, and thus the reversed development from weaving to spinning.

Post-War development of Textiles Industry

After the only spinning factory was closed down, the business community at that time believed the humid weather of Hong Kong, and the lack of skilled workers plus other reasons were enough to halt any further development of spinning industry in Hong Kong. In 1947, Shanghai businessman Li Zhenzhi established Dainan Cotton Mill in Hong Kong. It was discovered during the spinning process that the heat generated from the machines could dispel the humidity of the air and so protected the quality of the yarns from the humid weather. The experience of Dainan Cotton Mill attracted others to set up cotton spinning factories and Hong Kong began to have its own cotton yarn supply.

The instability of mainland China's political situation also helped foster local spinning industry. The war between the communists and Kuomintang and the regime change in 1949 pushed a lot of mainland industrialists to Hong Kong. These industrialists, especially those from Suzhou and Zhejiang provinces, brought with them necessary capital, machines and technique which sped up the development of local textile industry. The year 1948 saw the establishment of Peninsula Spinners Ltd, Wyler Spinning Mill, Nanyang Cotton Mill Ltd, Kowloon Cotton Mill Ltd, Nanhai Cotton Mill Ltd, Lea Tai Textile Co. Ltd and Tai Yuen Spinners Ltd. They were followed by other manufacturers including Yisheng Cotton Mill and Pao Hsing Cotton Mill Ltd. Between 1947 and 1954, the number of local spinners jumped from only one to 17. Until 1975, there were 40 spinning mills in Hong Kong. These spinners were bigger and more advanced compared to their forebears before the war in terms of production scale, machinery and management. This brought welcomed refreshment to the Hong Kong industry.

After the war, Hong Kong made cotton yarns were for the supply of local textile manufacturers. The rapid growth of local textile industry also sped up the growth of spinning industry. Spinners also increased their output to foreign markets. During the 1950s, local yarns were exported to mostly Asian countries including South Korea, Pakistan, Burma and Vietnam, etc. Until the end of 1950s to early 1960s, products were shipped to Southeast Asia. Due to the preferential tax provision from the Commonwealth, local yarns were also exported to Commonwealth countries including Sri Lanka, South Africa, UK, Australia and New Zealand.

However, since the industrialized countries began to impose higher import tax and tariff to protect their local industries, as well as the emergence of cotton industry in Southeast Asian countries and areas such as South Korea and Taiwan, export of Hong Kong cotton industry gradually declined. In 1976, Huaqiao Spinners closed its factory and turned to property development. From then on, over the years, a few other large spinners were also closed. Until 1985, after the closure of Concord Cotton Mill Ltd and New Territories Textiles Ltd, there were not that many spinners left in Hong Kong. Compared to other light industries, cotton mills required a large area for their factories. Manufacturers bought land in the remote parts of New Territories with relatively low price for the factories. During the 1970s, the speedy growth of urbanization of Hong Kong made huge appreciation in price of these factories and the land they sat on. After the mills closed down, the companies turned themselves into property developers to make better profits. Some would sell the land, or demolish the original factory and build industrial or commercial buildings, shopping malls and large housing estates. For instance, there were a number of spinners and textile factories at Castle Peak Road, 9.5 Milestone, Tsuen Wan. The area where Belvedere Garden and Bayview Garden are today used to be where Nanhai Cotton Mill Ltd, Pao Hsing Cotton Mill Ltd, Southeast Spinners Ltd and Wheelock Cotton Mills Ltd had their factories.

During the 2000s, there were only two spinners left in Hong Kong. One of them is Central Fabrics Limited. In 2011, the company also relocated its machines to its factory in China, and its yarn spinning was terminated.

The difference between knitting and weaving products and their markers

Knitting and weaving are two techniques for the production of greige fabrics. While knitting produces elastic greige fabrics for the production of cotton under-vest, socks and sweat shirts, weaving produces non-elastic fabrics such as wool, linen and twill fabrics, etc., for the production of shirts and jeans, etc. As early as the 1900s to 1920s, there were already knitters and weavers in Hong Kong. Their products then became cotton under-vest, socks, homespun cloth, under-shirts and towels, etc. Initially these products were for the local market. Until 1930s, export took over, to areas such as mainland China and Southeast Asia. After the war, products of weaving industry were mainly for export and local market was relatively insignificant. After the war, areas of Southeast Asia had a big demand of weaved products, which gave the local manufacturers a lot of orders. On the other hand, Hong Kong people also had the impression that imports were better than local products, which suppressed the local demand of homemade weaved and knitted products.

After the 1960s, there was a shift of export markets of the Hong Kong textile industry, as Europe and US markets took over from those in Southeast Asia. The emergence of Southeast Asian countries' textile industries in particular the Philippines, Burma, Pakistan, Thailand, Indonesia and South Korea and their increasingly export approach, as well as their restrictions on imports, contributed to the decline of Hong Kong made textile products exported to these countries. At the same time, with the ever increasing competition from Japanese and mainland Chinese products in the Southeast Asian markets, Hong Kong manufacturers needed to explore markets across the oceans for textile products including cotton yarns, greige fabrics and cotton-spun products. To meet with the demands from international markets, local weavers and knitters had to improve on productivity and quality of their products to enhance competitiveness. They invested in newer machines to improve fabric quality. Some smaller companies which could not afford to invest in new machines were wiped out from the market.

The shifting of export markets also brought diversification of products to the local textile industry. Cotton products to Indonesia, Singapore, Malaysia, Thailand and the Middle East were mainly middle to lower priced sweat shirts, etc. Some manufacturers also established their own brands for sales and promotion. After the 1960s, products began to sell in UK, US and Canada. Newer items were introduced including polo t-shirts, jackets, children's wear and match suits, etc. Very few manufacturers were selling their products under their own brands.

Division of Labour in a cottage factory and Vertical Production Set-up of Large factory

Fabrics need to go through dyeing and sawing before clothes can be made. Before WWII, there were already weaving, knitting, dyeing and garment factories in Hong Kong. Most of them were small cottage facilities with only a few machines and workers. In the 1930s, the process of making clothes started from import of cotton yarns, which were then weaved to become griege fabrics. The fabrics would be dyed and then sawed into something wearable. Before the war, one factory would only take care of one process. Apart from the cottage factories, there were also a few larger factories which could handle the whole progress. For instance, Chow Ngai Hing Knitting Factory Ltd which was established in 1927 already had production lines for weaving, dyeing and sawing. Therefore except spinning, the company could take care of the processes from weaving to sawing. It also had stores for the selling of its clothing.

Later on there were also companies which were capable of production from spinning, weaving, dyeing to sawing. There were also manufacturers which took this approach to other regions, including West Africa, India, Indonesia, Sri Lanka, etc. The companies there could handle the plantation of cotton, spinning, weaving, dyeing and sawing as a vertical set-up. This helped to reduce cost and had the advantage of better quality control.

Trend of factory relocation to China

Textile industry experienced its boom after the war. Spinning, weaving, knitting and dyeing factories were located at Tsuen Wan, Sham Shui Po, Cheung Sha Wan and Tai Kok Tsui, etc. During its peak there was a shortage of labor and foreign workers were employed. From the 1950s to 1960s, textile industry was the sector with the largest number of local workers employed. In 1950, the number of workers in textile industry accounted for 30.5% of the working population. In the 1960s, though the percentage dropped to 26.3%, but it was still the largest sector among all industries. From then onwards shortage of labor in the textile industry never occurred again since a lot of factories were either closed or moved their production lines to mainland China.

Hong Kong's textile industry started to move the production to mainland China as early as the 1980s. Since the adoption of open door policy, production cost, land price for factories, wages and the cost of raw materials in China were all cheaper than in Hong Kong. Larger manufacturers would set up factories in different provinces, and small factories would set up production lines in the Pearl delta region. Production in Hong Kong continued to shrink.

Around the same time, Hong Kong government's firmer stance on combating industrial pollution also contributed to the move of local textile manufacturers to the mainland. In 1989, the government set up Drainage Services Department for the implementation of sewage discharge policy, which had serious implication to the dyeing process of the textile industry. Many dyeing factories which were unable to afford their own sewage facilities had to close down or move to mainland. Take China Dyeing Works Ltd as an example. The company had its factory in Tsuen Wan. But because it needed to build its sewage facilities, the factory had to be relocated in Yuen Long Industrial Estate. In 2010, the company set up its dyeing factory in Chongqing instead.

Recommended Information

Hong Kong government undertook a survey in 1957 to investigate the production, import and export conditions of the local weaving and knitting factories. The Hong Kong Productivity Council published excerpts of information on Hong Kong industries in the 1970s and 1980s, which provided data on spinning, weaving and dyeing industries. Trade associations such as Textile Council of Hong Kong, Hong Kong Cotton Spinners Association, Federation of Hong Kong Cotton Weavers, Hong Kong Weaving Mills Association and Hong Kong General Chamber of Textiles also published articles on the development of spinners, weavers and knitters. In addition, the project Hong Kong Memory also conducted interviews with long serving workers in the textile industry as they recalled the development of the industry, its many milestones and characteristics. Such important information will help us understand Hong Kong's textile industry.

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