A critical milestone has been reached at the Kaiyuan Green Textile Science Park: the launch of a 60,000-ton annual knitted fabric project, with a total investment of 650 million yuan and an expected annual output value exceeding 1 billion yuan. This project, invested by Delaika Textile, a top fabric supplier in Guangzhou's Zhongda Market, sends a clear signal that the transfer of eastern textile capacity to the southwest border region is moving from sporadic attempts to large-scale implementation.
The Industrial Logic Behind the Project
Bohai Tai Textile is a wholly-owned subsidiary of Delaika Textile, which was founded in 2019 and has achieved annual sales exceeding 1 billion yuan, ranking among the 'top ten fabric suppliers' in Guangzhou's Zhongda Market. The 20 intelligent knitted fabric production lines planned in Kaiyuan target an annual capacity of 60,000 tons and will directly create over 1,200 jobs. The site selection was not accidental—the Kaiyuan Green Textile Science Park is the only industrial park in Yunnan Province with fully integrated textile dyeing and printing capacity, and was incorporated into the Hekou Border Industrial Park master plan in 2023. The park benefits from stable, low-cost industrial heat, with steam and electricity costs significantly lower than in eastern regions, offering substantial cost savings for energy-intensive knitted fabric dyeing and printing enterprises.
From a macro perspective, this project aligns with the broader trend of industrial gradient transfer within China. Bai Limin, Deputy Director of the Industrial Park Office of the China National Textile and Apparel Council, noted at the launch ceremony that the project is a high-quality vehicle for undertaking industrial transfer and building a coordinated domestic and international development model. For a company like Delaika, moving from Guangzhou to Kaiyuan is not just about finding lower production costs; it is also about leveraging the Hekou port to open up two-way markets in China and Southeast Asia, building a synergistic industrial chain of 'domestic weaving + Southeast Asian garment manufacturing.'
Filling a Gap in the Southwest Textile Chain
For a long time, the Southwest region has faced a significant supply shortage in knitted fabrics. Local garment manufacturers have relied on long-distance transport from the eastern coast for high-end knitted fabrics, leading to high logistics costs and long lead times. The 60,000-ton capacity of the Bohai Tai project directly targets this gap. Dong Shuxiu, Vice President of the China Dyeing and Printing Association, emphasized at the ceremony that this project is a landmark project for the region's green textile transformation and will fill a gap in the local high-end knitted fabric supply chain.
From an industrial ecosystem perspective, a 60,000-ton knitted fabric base will attract upstream and downstream supporting enterprises. The Kaiyuan city government has clearly stated its intention to promote east-west industrial synergy, linking with eastern upstream and downstream partners to complete the spinning, weaving, and garment manufacturing chain. This means the Kaiyuan Green Textile Science Park is evolving from a single fabric production node into a full-chain industrial ecosystem. For buyers, this means a stable and high-quality fabric supply will soon be available in the Southwest, significantly improving supply chain responsiveness.
Pathways for Green and Smart Manufacturing
The project's plans for green production and smart manufacturing deserve industry attention. The company has committed to promoting processes such as low-liquor ratio dyeing, water reuse, and waste heat recovery, and plans to deploy MES and ERP intelligent management systems to develop flexible customization. These technological pathways are not new concepts, but their large-scale implementation in the Southwest is a first. Leveraging the local clean energy advantages of Kaiyuan, the project's carbon emissions per unit of product are expected to be significantly lower than the industry average, which will become a key competitive advantage when accessing European and American markets.
Bai Limin proposed that the park should implement green and low-carbon standards across the entire chain, benchmark itself against national-level green parks, and promote circular and energy-saving technologies. This means the Bohai Tai project will not only be a production facility but also a model for low-carbon dyeing and printing in the Southwest. For other textile enterprises planning to move west, the operational data from this project will provide crucial decision-making reference.
The Policy Window for Cross-border Trade
The Hekou Border Industrial Park, where the project is located, benefits from both the RCEP policy dividends and port advantages. The logistics route from Kaiyuan through Hekou port to Vietnam and then to the broader Southeast Asian market is relatively mature. Xu Yanjie, General Manager of Bohai Tai, clearly stated that the project will serve both domestic and Southeast Asian markets, aligning with the company's dual-circulation development strategy. This model of 'Yunnan fabrics, Southeast Asian garments, European and American sales markets' is moving from concept to practice.
For foreign trade enterprises, this means a new procurement channel is forming. The previous need to purchase fabrics from the eastern coast for export to Southeast Asia could be directly replaced by Southwest production capacity, significantly reducing logistics costs and lead times. Furthermore, tariff preferences under the RCEP framework will further enhance the competitiveness of this supply chain.
Practical Recommendations
For Buyers - Monitor the pace of Southwest fabric capacity release: Full production of the Bohai Tai project is expected to take 2-3 years. Buyers should establish early contact with the project team to secure future capacity quotas. - Evaluate supply chain optimization opportunities: For companies with garment factories in the Southwest or Southeast Asia, calculate the total cost savings from shifting fabric procurement from the East to the Southwest. - Track green certification progress: If the project obtains low-carbon certification, its fabrics may command a premium in European and American markets. Buyers should include this in their sustainable supply chain assessments.
For Foreign Trade Enterprises - Develop Southwest export channels: Leverage the convenience of Hekou port to explore new export models of 'Southwest fabrics + Southeast Asian processing,' reducing reliance on eastern coastal ports. - Study RCEP rules of origin: Once the Bohai Tai project is operational, its fabrics may enjoy tariff benefits under RCEP. Foreign trade enterprises should study the relevant rules in advance. - Connect with the park: The Kaiyuan Green Textile Science Park is improving its supporting facilities. Foreign trade enterprises should monitor the park's cross-border logistics and bonded warehousing services to prepare for future business expansion.
From Guangzhou's Zhongda Market to Kaiyuan in Yunnan, Delaika Textile's westward move reflects a deep transformation in China's textile industry landscape. As eastern factor costs continue to rise, the southwest border region, with its advantages in energy, location, and policy, is emerging as a new highland for undertaking industrial transfer. The launch of the Bohai Tai project is not just a strategic choice for one company but a microcosm of the entire industry's shift towards greener, smarter, and more cross-border oriented operations.