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RUSSIAN GOVERNMENT SETS DEVELOPMENT PROGRAM UNTIL 2025 FOR THE TEXTILE INDUSTRY © Jerzy Sawluk / pixelio.de
28.06.2016

RUSSIAN GOVERNMENT SETS DEVELOPMENT PROGRAM UNTIL 2025 FOR THE TEXTILE INDUSTRY

  • Anticrisis Plan provides grants of nearly Ruble 1.5 Billion 

Moscow (GTAI) – In spring 2016 the Russian government has decided a "Strategy for the development of the light industry until 2025" and a "Federal program to support enterprises of the light industry" (anticrisis plan). Hence the Russian textile enterprises should be supported in the crisis. It is the aim of the Ministry of Industry and Trade to double the share of domestic producers on the clothing market from currently 25% to 50% in the year 2025.

  • Anticrisis Plan provides grants of nearly Ruble 1.5 Billion 

Moscow (GTAI) – In spring 2016 the Russian government has decided a "Strategy for the development of the light industry until 2025" and a "Federal program to support enterprises of the light industry" (anticrisis plan). Hence the Russian textile enterprises should be supported in the crisis. It is the aim of the Ministry of Industry and Trade to double the share of domestic producers on the clothing market from currently 25% to 50% in the year 2025.

According to the Ministry of Industry and Trade 14,000 companies (including 200 large enterprises) of the Russian light industry are producing clothing, textiles, footwear and leather goods. They generate annually a turnover of Ruble 270 billion. Of that 653 large and medium and 4,000 small businesses are operating in the yarn and textile industry. Because the purchasing power and consumer demand fell, the light industry slowed its production in 2015 by 12%.

To give the clothing and textile factories more security, the Russian government adopted in spring 2016 a "Strategy for the development of the light industry until 2025" and a "Federal program to support enterprises of the light industry" (anticrisis plan). It is the aim of the Ministry of Industry and Trade to double the share of domestic producers on the clothing market from currently 25% to 50% in the year 2025.  In this context up to 330,000 additional jobs should be achieved.

Anticrisis plan provides subsidies of Ruble 1.475 billion
In the anticrisis plan Ruble 1.475 billion will be granted. This should especially support manufacturers of school uniforms, children's apparel and textile factories that work on government orders. The financial support includes: subsidies for producers of school uniforms for the lower classes made out of Russian worsted fabrics (Ruble 600 million), subsidies for working capital loans to support purchases of raw materials (Ruble 800 million), subsidies for investment loans for technical modernization of enterprises (Ruble 75 million).

As part of the development program for the light industry an own development bank for the textile and clothing industry will be set up – following the example of the Rosselkhozbank. The hitherto in agriculture specialized state leasing company Rosagroleasing should accompany the technical modernization of the textile and clothing companies. In addition, the government ordinance no. 791 prohibits, as in  
the version of February, 17th 2016 on all three government levels (federal, regional, municipal), government procurement of imported textiles and garments when there are offers from domestic Producers.

Industrial parks and clusters for the light industry are growing
In addition, two industrial parks for the clothing and textile industry will be set up in the areas of Ivanovo and St. Petersburg. In addition, a regional cluster of the light industry in the Chelyabinsk region of the South Ural is growing. The fund for the development of the Russian industry promotes investments with low interest rates on credits, for example the project of Praimteks (Primetex) in the Ivanovo region for the production of textiles using digital textile printing (credit: Rubles 466 million rubles).

Further, the domestic producers of clothing and footwear should gain access in future to the funding instruments of the federal association for the development of small and medium-sized enterprises. Critics complain, that the subsidies reach mostly large companies only and above all companies working with government contracts.

Capacity building for chemical fibers 
Export opportunities are seen by the Ministry of Industry in synthetic fibers. In the textile cluster Ivanovo (http://invest-ivanovo.ru/data/prog.pdf) a chemical fiber plant is growing with public aid, scheduled to begin production from 2018. With that 250,000 t chemical fibers would additionally annually be available. Until now both manufac-turers Komitex and Wladimirski Polyefir produce together 33,000 t chemical fibers per anno. Viscose is currently not being produced at all in Russia. The import share of polyester is 74%, of polyamide 88%. 

In future the synthetic fibers may be supplied to BTK Textile and other customers. The production complex of BTK Textile in the textile City Shakhty in the Rostov region, was inaugurated in June 2015. The company manufactures high-tech textiles and knitwear made out of synthetic fibers of which work-wear, sport-wear and ski-wear are being sewn. BTK Textile has fabric production capacities of about 12 million square meters per year, General Director Sergey Bazoev says. Up to now BTK Textile has to buy the synthetic fibers and yarns predominantly in Asia. That could change soon. The BTK Group is the largest Russian manufacturer of men's clothing and uniforms.

Building new production facilities in Russia is not so easy: equipment of domestic manufacturing is not available and imported technology became very expensive due to the Ruble devaluation. So the technical facilities of BKT for manufacturing, impregnation or coating of fabrics and for apparel sewing (in total 250 units) are coming from Italy, Denmark, Germany, Switzerland and France. Long-term loans of over 8 to 12 years are not available and if - only at high interest rates. The lack of a variety of technologies and materials (establishing of extensive fabric and accessories inventories is too expensive) remains the main problem for Russian textile companies. Therefore, the number of new projects in the light industry is not yet clear.
Russian Federation - production of textiles and clothing (change in %)
Description 2015 Change 2015/2014
Cotton fiber (mio. bales) 111.0 4.4
Chemical fibers (mio. bales) 66.0 -4.5
Fabrics (mio. sqm) 4,542 14.7
.thereof from: :    
.Silk (1,000 sqm) 253,0 31.8
.Wool (1,000 sqm) 9.262,0 -20.9
.Linen 25,9 -26,6
.Cotton 1.176,0 -4,5
.Chemical fibers 237,0 14,2
Fabrics made out of other materials 3.084,0 25,1
Fabrics with plastic impregnation (mio. sqm) 32,3 14,6
Bed-linen (mio. pieces) 59,8 -9,6
Carpets (mio. sqm) 22,6 -3,7
Knitwear (1,000 t) 14,2 29,8
Stockings (mio. pair) 199 -5,6
Coats (1,000 pieces) 989 -22,1
Lined jackets (1,000 pieces) 1.887 -45,4
Suits (1,000 pieces) 4.690 -12,6
Men’s jackets and blazer (1,000 pieces) 870 14,1
Women’s coats with fur collar (pieces) 5.543 -46,1
Clothing made out of artificial fur (1,000 pieces) 24,5 21,0
Uniforms and workwear (mio. pieces) 20,7 -8,2
Work- and protective clothing (mio. pieces) 99,8 14,6
Overalls (1,000 pieces) 733 -62,4

Source: Rosstat 2016

Russian Federation - production of textiles and clothing (change in %)
Description 1st Quarter 2016 Change
1st Quarter 2016 / 1st Quarter 2015
Sewing thread made out of synthetic fibers (mio. reels)   14,0 -0,6
Fabrics (mio sqm) 1,2 23,3
Bed linen (mio pieces) 14,7 -7,7
Knitted stockings (mio. pairs) 55,4 34,0
Knitwear (mio. pieces) 24,8 -6,0
Workwear, uniforms (mio. pieces) 31,1 11,2
Coats (1,000 pieces) 269 9,1

Source: Rosstat 2016


Contact addresses:
Ministry of Industry and Trade

Department of Light Industry
Denis Klimentewitsch Pak, Director of the Department
109074 Moskau, Kitajgorodskij proesd 7
Tel.: 007 495/632 8004 (Sekretariat), Fax: -632 88 65
E-Mail: dgrvt@minprom.gov.ru, Internet: http://minpromtorg.gov.ru

(Sub) department of Light Industry: Director: Irina Alekseewna Iwanowa,
Tel.: -632 87 31, -346 04 73; E-Mail: ivanovaia@minprom.gov.ru
Internet: http://minpromtorg.gov.ru/ministry/dep/#!9&click_tab_vp_ind=1
"Strategy for the development of Light Industry until 2025."
http://www.kptf.ru/images/company/Presentation.pdf (Presentation of the strategy)
http://minpromtorg.gov.ru/docs/#!strategiya_razvitiya_legkoy_promyshlennosti_rossii_na_period_do_2025_goda (Text of the strategy and action plan)

Russian Union of Entrepreneurs of Textile and Light Industry
107023 Moskau, uliza Malaja Semenowskaja 3
Tel.: 007 495/280 15 48, Fax: -280 10 85
E-Mail: info@souzlegprom.ru, Internet: http://www.souzlegprom.ru

 

BEKLEIDUNGSHERSTELLER VERLAGERN PRODUKTION NACH RUSSLAND © Florentine/ pixelio.de
17.05.2016

CLOTHING MANUFACTURERS MOVING PRODUCTION TO RUSSIA

  • Weak Ruble makes domestic Production profitable
  • Government encourages Investments

Moscow (GTAI) - Sales of textiles and clothing will continue to decline. Production in Russia however will rise. Due to the strong Ruble devaluation in the last two years, the conditions for the textile and clothing industry have completely changed. On the one hand falling real incomes lead to declining demand. On the other hand labor costs have fallen under Asian benchmarks.

  • Weak Ruble makes domestic Production profitable
  • Government encourages Investments

Moscow (GTAI) - Sales of textiles and clothing will continue to decline. Production in Russia however will rise. Due to the strong Ruble devaluation in the last two years, the conditions for the textile and clothing industry have completely changed. On the one hand falling real incomes lead to declining demand. On the other hand labor costs have fallen under Asian benchmarks.

Due to the low Ruble exchange rate it has become cheaper in 2015 for domestic and foreign textile and clothing companies to produce in Russia. Translated into US dollars, labor costs are currently due to the Ruble devaluation 10 to 15% below the reference value in the PRC. The average wage of a worker in the garment industry in China is currently USD 300 to 350, in Russian Rubles 12,000 to 15,000 (USD 185-230).
 
Relocation to Russia begins
According to a report of the newspaper "Izvestia" the first domestic and foreign clothing manufacturers of branded products have reacted and shift their production capacity from Asia to Russia or have subcontract Russian garment manufacturers.  These include companies like Roztech (brands: Dikaja Orchideja, Bjustje, Defile, Grand Defile), Sportmaster, Melon Fashion Group (befree, Zarina, Love Republic), Finn Flare and Kira Plastinina.

"A few years ago we produced 20 to 30% of our collection in Russia, last year 2015 there were already 30 to 40% and now already about 70%", the commercial director of "Kira Plastinina Style" Vladimir Romanov reported. For that the company has established its own production in an industrial park in Osery close to Moscow.

Other brand manufacturers and retailers like Zara (Inditex), Sela, Baon, Gloria Jeans, Modis, Lamoda, Lady & Gentleman, kangaroo and Sneschnaja Korolewa are looking for opportunities to relocate their production to Russia. The Ministry of Industry and Trade is in intensive discussions with Zara, H & M, Benetton, Dekatlon, Sportmaster and IKEA (home textiles) in order to convince them of the advantages of production in Russia. In future IKEA wants to get up to 40% of its products produced by Russian firms.

Roztech plans to double its production of women's underwear to up to 8 million units. Currently two sites are rented for that in the Smolensk region. For repairs and preparations for production in the rented plants Roztech will invest about  Rubles 60 million. Two other sewing factories in the area of Moscow and Smolensk are already working for Roztech. Contract productions in the PRC and in the Baltic States the company will be terminated because of this.

The franchise chain Finn Flare (Finland) has rented a factory with 500 square meters close to Moscow early 2016, renovated it and installed new equipment. For that Rubles 12 million were invested, General Director Ksenija Rjasowa said. The sewing factory is scheduled to start in May and will produce 40,000 to 60,000 pieces clothing per year. Beginning of 2016 Finn Flare possessed 143 Russian stores (54 franchised).
 
Manufacturers of sportswear increase their share of production in Russia
Since the outbreak of the Ruble crisis Sportmaster has begun to place a portion of its contracts with Russian companies. Currently 15% of the clothing and footwear is coming from Russian production. The retail chain operates shops with the brands Sportmaster - 460, Ostin - 760 and Funday - 60.

The MMD group "Vostok i Zapad", which belongs to the group of the companies Bosco di Ciliegi, intends to set up an own factory for the production of sportswear in the industrial park "Kameshkovo" in the Vladimir region. The necessary investment will amount to Rubles 1 billion, of which Rubles 200 million are own funds and about Rubles 400 million will be requested from the fund for the development of mono towns. 

Even Pierre Cardin is talking with major Russian garment manufacturers about licensed productions, designer Rodrigo Basilikati said in March 2016. So far the fashion house is based on ten own stores and licensees from Germany, Italy and the USA.

So far most sewing orders placed in China. In future one has to expect more companies and  offers from Vietnam, Bangladesh, India, Malaysia and Indonesia. The Eurasian Economic Union and Vietnam have agreed upon a free trade agreement.
 
Import dependence on fabrics and accessories as cost risk
By manufacturing in Russia the exchange rate risk and transport costs do not apply.  But one cost risk remains: For sewing of clothes in Russia  not all fabrics and materials can be sourced domestically, but need to be purchased at 65% abroad. The technical equipment needs to be imported at 100%. In the foreseeable future this remains a cost risk, depending mainly on the development of the further exchange rates.

The main suppliers of fibers, fabrics, yarn, buttons and accessories were previously the PRC and Turkey. However - since the deterioration of the state relation with Turkey Russia is working intensively to get gradually rid of this delivery dependence.
 
Anti-crisis and development program for the light industry
In the Russian light industry 14,000 companies are manufacturing clothing, textiles, footwear and leather goods. Thereof 653 large and medium and 4,000 small businesses operate in the yarn and textile industry. To give the clothing and textile factories more planning certainty, the Russian Government decided in spring 2016 a "Strategy for the development of the light industry until 2025" and a "Federal program to support  the enterprises of the light industry" (anticrisis plan).

Russian Confederation:  Production of textiles and clothing (Change in %)
Description of goods 2015 Change 2015/2014
Cotton fiber  (mio. bales) 111.0 4.4
Man-made fiber (mio roles) 66.0 -4.5
Fabrics  (mio. sqm) 4.542 14.7
thereof:    
Natural Silk (1.000 sqm) 253.0 31.8
Wool (1.000 qm) 9,262.0 -20.9
Linen 25.9 -26.6
Cotton 1,176.0 -4.5
Man-made fiber 237.0 14.2
Fabrics made of other  materials 3,084.0 25.1
Fabrics with plastic impregnations (mio. sqm) 32.3 14.6
Bed linen (mio. sets) 59.8

-9.6

Carpets (mio. sqm) 22.6 -3.7
Knitwear (1.000 t) 14.2 29.8
Hosery (Mio. Pair) 199 -5.6
Coats (1.000 pc.) 989 -22.1
Lined jackets (1.000 pc.) 1,887 -45.4
Suits (1.000 pc.) 4,690 -12.6
Mens jackets and blazer (1.000 pc.) 870 14.1
Ladies coats with fur collar  (pc.) 5,543 -46.1
Clothing made out of artificial fur (1.000 pc.) 24.5

21.0

Uniforms and workwear (mio. pc.) 20.7 -8.2
Work – and protective wear (mio. pc.) 99.8 14.6
Overalls (1.000 pc.) 733 -62.4

Source: Rosstat 2016

Russian Confederation: - Production of textiles and clothing (% Change)
Description of goods 1st Quarter 2016 1st Quarter 2016 / 1st Quarter 2015
Sewing threads- made out of synthetic fiber (mio. rolles) 14.0 -0.6
Fabrics (billion sqm) 1.2 23.2
Bed linen (mio sets) 14.1 -7.7
Knitted stockings (mio. pairs) 55.4 34.0
Knitwear (mio. pc.) 24.8 -6.0
Workwear  Uniforms (mio. pc.) 31.1 11.2
Coats (1.000 pc. ) 269 9.1

Source: Rosstat 2016

Contact addresses
Russian Union of Entrepreneurs of  the Textile and Light Industry
107023 Moskau, uliza Malaja Semenowskaja 3
Tel.: 007 495/280 15 48, Fax: -280 10 85
E-Mail: info@souzlegprom.ru, Internet: http://www.souzlegprom.ru

Ministry of Industry and Trade
Department of Light Industry
Denis Klimentewitsch Pak, Director of the Department
109074 Moskau, Kitajgorodskij proesd 7
Tel.: 007 495/632 8004 (Sekretariat), Fax: -632 88 65
E-Mail: dgrvt@minprom.gov.ru, Internet: http://minpromtorg.gov.ru

Light industry department:
Director: Irina Ivanova Alekseewna,
Tel.: -632 87 31, -346 04 73; E-Mail: ivanovaia@minprom.gov.ru
Internet: http://minpromtorg.gov.ru/ministry/dep/#!9&click_tab_vp_ind=1

"Strategie für die Entwicklung der Leichtindustrie bis zum Jahr 2025"
http://www.kptf.ru/images/company/Presentation.pdf (Präsentation zur Strategie)
http://minpromtorg.gov.ru/docs/#!strategiya_razvitiya_legkoy_promyshlennosti_rossii_na_period_do_2025_goda (text of the strategy and action plan)

 

 IVC introduces the 16th Edition of the Study "The Fiber Year" with Key Sector Data © The Fiber Year GmbH
10.05.2016

IVC INTRODUCES THE 16TH EDITION OF THE STUDY "THE FIBER YEAR" WITH KEY SECTOR DATA

  • Fiber Production for the first Time in five Years lower than Consumption
In a press conference on May 3rd 2016, the industry association IVC published in an established tradition both the national and the global sector data: Andreas Engelhardt, CEO of The Fiber Year GmbH left no question about all important raw materials, natural and synthetic fibers and nonwovens unanswered and presented In his study a forecast horizon till 2020. 20 country profiles of leading production as well as consuming nations completed next to statements from sector experts and an extensive statistical annex the new edition. The key messages were focused on production, consumption and trading volume.
 
For the first time in five years fiber production is less than consumption
 
Since 2008 the global fiber production dropped again for the first time.
  • Fiber Production for the first Time in five Years lower than Consumption
In a press conference on May 3rd 2016, the industry association IVC published in an established tradition both the national and the global sector data: Andreas Engelhardt, CEO of The Fiber Year GmbH left no question about all important raw materials, natural and synthetic fibers and nonwovens unanswered and presented In his study a forecast horizon till 2020. 20 country profiles of leading production as well as consuming nations completed next to statements from sector experts and an extensive statistical annex the new edition. The key messages were focused on production, consumption and trading volume.
 
For the first time in five years fiber production is less than consumption
 
Since 2008 the global fiber production dropped again for the first time. The global volume fell by 0.7% to 94.9 million tons. The decline was decisive caused due to cotton which experienced its steepest decline in forty years. The production in the current season is estimated with 22.0 million tons, a decrease of 15.6% compared to the previous season.  With a slight decrease in demand by 2.2% at the same time the stocks remain with over 20 million tons still at an enormous height. High growth rates of China's chemical fiber industry let expect a massive supply surplus. The global fiber demand in the past year has grown to 96.7 million tons. This represents an increase of 3.1% over the previous year, the weakest growth in four years due to a continuously decreasing growth of demand.
 
With a world population of about 7.3 billion people, this results in an average consumption per capita of 13.3 kg of textile materials for garments, home textiles, carpets and technical textiles. Synthetic fibers showed an increase of 6.6% to 60.7 million tons, significantly driven by a growth of polyester. The increase is largely caused by the area of filament yarn, as staple fibers achieved a moderate growth of 2.4% only. This can be seen as a recovery after this part of the sector showed in the last year a decline for the first time since 2008.
 
Cellulose fibers showed for the first time after seven years with strong growth a slight fall in production of 1.2% to 6.1 million tons. The market is almost completely dominated by staple fibers. Due to a growth across Europe and Asia viscose fibers could increase their volume by 1.1% to 4.9 million tons. In contrast Acetate showed a loss in a second consecutive year. A decreasing production activity was seen in all markets and regions with a global slump of 7.5% to 0.9 million tons. This drastic cut was significantly stronger than the losses in the end-use consumption, which can be seen as a clear indication of global destocking. The long-term shrinkage of cellulosic yarns for textile applications has developed further, so that the global supply of about 350 000 tons is equivalent to the level of the early 1930s.
 
The market for natural fibers experienced with a reduction of 13.2% to 28.1 million tons the biggest annual decline since 1986, which is mainly due to cotton. The production of wool was unchanged at 1.1 million tons while for bast fibers a reduction of about 5% is expected.
 
In a focus on the different countries, the People's Republic of China could further strengthen its dominant position with an increase in production output by 8.9% to more than 47 million tons. The United States could consolidate their second place despite a slight  decline of 2.5% to 2.9 million tons, while India experienced a continued decline in the fifth following year to 2.6 million tons.
 
Trading volume grows unabated
 
According to the World Trade Organization (WTO) during the year 2014 the textile and clothing exports reached around USD 820 billion. The for the yearbook researched trade flows of 26 countries and the EU (28) estimate that the worldwide export will fall to USD 780 billion in 2015. While the Chinese exports developed a first decrease in six years, Bangladesh, Cambodia, Myanmar and Vietnam were able to continue to raise their export value. The dynamic development particular of Vietnam with its booming textile industry can be attributed to the influence of free trade agreements.
 
Fiber production in Germany
 
Despite international trends and many political challenges, which increasingly plague the German chemical fiber producers, man-made fibers "made in Germany" are still no dying species, Dr. Wilhelm Rauch, managing director of the industry association said.
 
While in 2014 the chemical fiber industry in Germany suffered a decline in production volumes of 6.1%, the production volume stabilized at almost the same prior-year level. The production of cellulosic fibers remained with a reduction of - 6.8% (previous year - 8.6%) - conform to the worldwide slump of cotton. Synthetic fibers (in particular Polyester) however achieved a slight increase of + 1.6% (last year - 4.9%). Thus the reduction in production volumes kept with - 0.9% in limits.
 
As consequences of this a sales decline of - 4.8% and associated necessary personnel adjustments with -1.4% are alarming signals, that the site conditions for chemical fiber producers in Germany (and Europe) are urgently in a need of improvement. A positive turnaround could certainly bring a fair competition protecting and an industry-friendly approach of the EU business policy. But the emphasis of the current policy debates - about the recognition of the market economy status of China as an example of politically motivated developments let suppose a very different intension, so Mr. Rauch. Despite unfavorable economic expectant conditions it is to owe the commitment and innovation power of the local manmade fiber sector that they claim to withstand the international competition.  
 
Nevertheless, the sector would appreciate a somewhat lower political headwind.
 
Fiber processing
 
In 2015 the processing of all types of fiber in Germany could not keep the level of the previous year and suffered a decrease of -11.6%. The total imports of chemical fibers - mostly from the 28 EU countries with +54% followed by Asia with + 40% - show a plus of 1.1% (synthetic staple fibers +1.9% and filaments +1.7%), while cellulosic fibers suffered a slump of -7.4%. The total export is declining slightly (- 2.0%). Despite the reduction of total exports, here the shares in the various regions of the world compared to the previous year stood unchanged.
 
Further information is available at:
 
Andreas Engelhardt 
CEO
The Fiber Year GmbH 
Hauptstraße 19 
9042 Speicher, Schweiz 
Tel.: + 41 / 71 / 450 06 82 
 
Creta Gambillara
Economics and Public Relations
Industrievereinigung Chemiefaser e.V.
Mainzer Landstraße 55
60329 Frankfurt am Main
Tel.: 069 / 279971 – 39
TEXPO 2016: First textile exhibition at Karachi Expo Center © Trade Development Authority of Pakistan
23.02.2016

TEXPO 2016: FIRST TEXTILE EXHIBITION AT KARACHI EXPO CENTER

Trade Development Authority of Pakistan (TDAP), Government of Pakistan is organizing the first ever textile exhibition named TeXpo 2016 from 7-10 April 2016 at Karachi Expo Center.

Objective of this exhibition is to present the potential of textile sector exports, especially value added sectors: readymade garments, knitwear, hosiery, bedsheets, textile madeups, sportswear, towels, textile accessories, etc.

The textile sector of Pakistan

Pakistan is the 4th largest producer and 3rd largest consumer of cotton globally. Textiles is the vital manufacturing sector of Pakistan. It contributes nearly one-fourth of industrial value-added, provides employment to about 40% of industrial labour force, consumes 40% of banking credit to manufacturing sector and accounts for 8% of national GDP. Textile products share in national exports is 54%.

Trade Development Authority of Pakistan (TDAP), Government of Pakistan is organizing the first ever textile exhibition named TeXpo 2016 from 7-10 April 2016 at Karachi Expo Center.

Objective of this exhibition is to present the potential of textile sector exports, especially value added sectors: readymade garments, knitwear, hosiery, bedsheets, textile madeups, sportswear, towels, textile accessories, etc.

The textile sector of Pakistan

Pakistan is the 4th largest producer and 3rd largest consumer of cotton globally. Textiles is the vital manufacturing sector of Pakistan. It contributes nearly one-fourth of industrial value-added, provides employment to about 40% of industrial labour force, consumes 40% of banking credit to manufacturing sector and accounts for 8% of national GDP. Textile products share in national exports is 54%.

The textile industry consists of 11.3 million spindles, 3 million rotors, 350,000 power looms, 18,000 knitting machines and processing capacity of 5.2 billion sqm. It has 700,000 industrial and domestic stitching machines. In addition, it has a strong fiber base of 13 million bales of cotton and 600,000 tons of manmade fibers including polyester fiber. There are 21 filament yarn units having capacity of 100,000 tons. The filament and yarn industry is supported by PTA plant which has 500,000 tons capacity. Thus a complete textiles value chain exists in the country which is rare in the world, unlike many competitors which have only primary base or the finished base.
Source: Ministry of Textile Industry, GoP

Pakistan’s textile exports to Germany

Pakistan enjoys zero customs duty access to European Union including Germany on textile products under GSP Plus Scheme. The scheme started in 2014 and the duty preference to Pakistan will continue for another 8 years. As a result of this incentive, Pakistan’s exports to European Union have increased by almost US$ 2 Billion in two years and the main beneficiary of the scheme has been the textile sector. This increase in exports shows the European buyers confidence in the manufacturers and exporters from Pakistan.

Especially with Germany, Pakistan’s exports in textile products have been increasing by 20% every year. The table below shows Pakistan’s exports to Germany, in textile products:

  2013 2014 2015 2015 % Inc/ Dec in 2015
over 2014 - 11
Months
(January - November) (January - November) (January - November) (January - November)
EUR (‘000) USD (‘000) EUR (‘000) USD (‘000) EUR (‘000) USD (‘000) EUR (‘000) USD (‘000) EUR
cotton 115.451,00 153.353,00 109.190,00 145.456,00 101.111,0 135.491 113.799,0 126.692 13%
Man-made staple fibers 16.135,00 21.367,00 16.959,00 22.432,00 15.387,0 20.499 16.432,0 18.274 7%
Carpets, floor covering made of textile materials 11.127,00 14.797,00 12.545,00 16.565,00 11.119,0 14.807 10.919,0 12.173 -2%
Knitwear 135.428,00 180.080,00 176.123,00 233.634,00 161.014,0 215.001 206.988,0 230.339 29%
Ready made garments (Woven) 266.450,00 353.495,00 334.446,00 444.604,00 311.214,0 415.95 405.924,0 451.166 30%
Home textiles (incl. Bedwear and towel) 176.440,00 234.265,00 236.164,00 313.190,00 214.074,0 285.953 215.308,0 239.699 1%
Total of 6 items 721.031,00 957.357,00 885.427,00 1.175.881,00 813.919,00 1.087.709,00 969.370,00 1.078.343,00 19%
Pakistan export of textiles and clothing to the world
  Major Commodities Value in US$ thousand
July-June
2014-15
Value in US$ thousand
July-June
2013-14
  Textile Group 13.164,027 13.433,644
1 Cotton Cloth 2.452,632 2.769,986
2 Knitwears 2.406,488 2.293,668
3 Cotton Yarn 1.849,389 1.997,338
4 Bed Wear 2.103,071 2.137,744
5 Readymade Garments 2.095,089 1.909,323
6 Towels 797,155 767,461
7 Art Silk And Synthetic Textiles 330,584 384,964
8 Textile Made Ups (excl. Towels & Bed Wear) 654,926 659,929
9 Raw Cotton 147,060 205,136
10 Kintted or Crochated Fabrics 36,177 34,974
11 Cotton Waste 51,050 79,122
12 Yarn other than Cotton Yarn 42,828 43,873
13 Tents & Other Canvas Goods 126,575 77,759
14 Waste Material of Textile Fibres/Fabrics 28,042 24,451
15 Tule, Lace, Embroidery Etc 12,515 15,567
16 Cotton Bags/Sacks 13,138 11,677
17 TEXTILE FABRICS WOVEN
(Other than Cotton & Artificial Fabrics)
3,726 3,698
18 Cotton Thread 12,259 15,123
19 Textile For Machinery 1,323 1,851

Source: TDAP R&D Cell

Texpo – An opportunity to expand sourcing and increase Profits

The exhibition – Texpo provides and a unique opportunity for the buyers from Germany to meet new suppliers of the textile products and visit their manufacturing facilities.

The Government of Pakistan, Trade Development Authority of Pakistan will arrange accommodation for the visitors/ guests from all over the world, in the top hotels in Karachi city. Free accommodation will be provided for the guests registered through Pakistan Embassy at Berlin or the Consulate at Frankfurt am Main. A few select guests will also be offered air ticket subsidy depending on the confirmation from the organisers.

Local transport in Karachi city with complete security for the delegates will be arranged by the Government of Pakistan to further add to the comfort of guests from all over the world.

You can also plan your visit to China and other regional suppliers near Karachi right after Texpo.

For further details, please contact:

1. Mr. Rizwan Tariq
Commercial Counsellor Consulate General of Pakistan, Frankfurt am Main
Ph: +49 69-6976970
Cell: +49 176-31363223
Email: pakcom.frk@tdap.gov.pk

2. Mr. Matthias Theis
Honorary Consul of Pakistan for the state of NRW Dusseldorf
Ph: +49 211 4407227
Email: office@pakistan-nrw.de

3. Mr. Rainer Borch
Trade Development Officer Embassy of Pakistan Berlin
Ph: +49 30-21244145
Cell: +49 163-3736036
Email: tdo@pakemb.de or rainer.borch@aol.de