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17.11.2020

KfW: EUR 20 million for textile workers affected by the Corona pandemic

  • Rapid assistance to more than 200 000 people affected

Many hundreds of thousands of textile workers in Bangladesh are at risk of sliding into poverty as a result of the outbreak of the Corona pandemic. According to EU estimates, about half of the four to five million workers in the sector have either been laid off or made redundant since spring 2020 – in some cases without social security to back them up. To mitigate the dramatic economic consequences, the EU is now redirecting its existing sector budget support to Bangladesh. From now on, around EUR 90 million is to be channelled into a new government programme to finance wage substitution benefits for workers made redundant in the textile sector - including the leather and shoe industries – or at least to provide a short-term interim solution for workers who have been dismissed. German Financial Cooperation (FC) is now increasing these EU funds by EUR 20 million.

  • Rapid assistance to more than 200 000 people affected

Many hundreds of thousands of textile workers in Bangladesh are at risk of sliding into poverty as a result of the outbreak of the Corona pandemic. According to EU estimates, about half of the four to five million workers in the sector have either been laid off or made redundant since spring 2020 – in some cases without social security to back them up. To mitigate the dramatic economic consequences, the EU is now redirecting its existing sector budget support to Bangladesh. From now on, around EUR 90 million is to be channelled into a new government programme to finance wage substitution benefits for workers made redundant in the textile sector - including the leather and shoe industries – or at least to provide a short-term interim solution for workers who have been dismissed. German Financial Cooperation (FC) is now increasing these EU funds by EUR 20 million.

"The textile sector," says KfW office manager Anirban Kundu, "is the backbone of the economy in Bangladesh. The export share of the textile industry alone accounts for 86% of the economy, and the total trade volume is around USD 40 billion. If it is doing badly, the whole country is doing badly."

The corona pandemic is therefore causing enormous disturbances in the sector. Many orders were cancelled and goods already produced were often not taken. "Even though the situation has eased somewhat in the meantime," Kundu continues, "things remain critical - not least because of increased price pressure or because orders have not reached the previous level." As a result, the people affected find themselves in an emergency situation that threatens their very existence. Some employees on leave of absence only receive wage substitution benefits for the first 45 days. Dismissed employees who were not previously employed for a certain minimum period of time do not receive any support at all.

Still many workers on leave even though production resumes
In April 2020, the Bangladeshi government launched four economic support packages totalling around EUR 7.3 billion to mitigate the impact of COVID-19 on the economy. With the emergency aid now launched at short notice, the German Federal Ministry for Economic Cooperation and Development (BMZ) is topping up the existing EU sector budget support of EUR 93 million by up to EUR 20 million. This grant to the national budget for 2020 not only makes it possible to re-finance wage substitution payments for released textile workers, but also provides support, at least in the short term, to those who are particularly hard hit by a dismissal: for example mothers who do not receive benefits after the birth of a child, or those women and men who have been employed by a company for less than a year.

From November onwards, they are to receive the equivalent of around EUR 30 per month, initially for a maximum of three months, and possibly more. To ensure that this money reaches its destination, it will be transferred electronically to the bank accounts of those concerned via appropriate government platforms. The relevant export associations in the textile sector provide monthly updated figures on the number of workers released or dismissed.

"Subsidy does not release employers from their obligations"
Some 215,000 workers benefit directly from the payments through the German contribution alone, but indirectly almost four times as many benefit from them: Not only the family members, but also the communities where the textile workers live, as well as transport companies, street traders and other local service providers. Without this rapid support and the resumption of production, lasting economic damage to Bangladesh's already small and fragile economy can be expected. But Anirban Kundu also makes it clear: "It is by no means the intention to release employers from their legal obligations to continue to pay wages. Rather, the aim is to ensure that the emergency aid reaches workers who are no longer entitled to statutory continued payment of wages, so that they can at least make up for some of their misery."

 

 

Venue Messe Frakfurt (c) Mese Frankfurt GmbH
22.09.2020

Heimtextil 2021 to be held in May

The next Heimtextil has been postponed from January and will now be held concurrently with Techtextil and Texprocess 2021 in Frankfurt from 4 to 7 May 2021. This will result in exciting synergistic effects for the sector.
 
The current situation with respect to the corona pandemic and the associated international travel restrictions have caused Messe Frankfurt to postpone the next Heimtextil, the world’s biggest trade fair for home and contract textiles, from the planned dates in January until 4 to 7 May 2021.
     

The next Heimtextil has been postponed from January and will now be held concurrently with Techtextil and Texprocess 2021 in Frankfurt from 4 to 7 May 2021. This will result in exciting synergistic effects for the sector.
 
The current situation with respect to the corona pandemic and the associated international travel restrictions have caused Messe Frankfurt to postpone the next Heimtextil, the world’s biggest trade fair for home and contract textiles, from the planned dates in January until 4 to 7 May 2021.
     
“The bulk of the international home and contract textiles sector want us to hold Heimtextil 2021. Many companies are hoping to give their businesses a boost by taking part in the fair following the restart. And we consider it a greater obligation than ever before that we play our part in this”, explains Detlef Braun, Member of the Executive Board of Messe Frankfurt. “However, the current travel restrictions and the renewed increase in the number of infections represent a big hurdle for our very international trade fair. We are in constant contact with our exhibitors and the appropriate authorities and will do everything in our power to ensure a safe and successful Heimtextil 2021.”

Over 90 percent of exhibitors come to Heimtextil in Frankfurt from outside Germany. As part of the preparatory work for an international trade fair of this kind in January, it is necessary, for example, to commission stand-construction companies, ship the goods and book flights and hotels in September. Thus, in view of the current travel restrictions, holding Heimtextil 2021 in May instead of January offers greater planning certainty for all involved.
 
“The trend-oriented order cycles of the home and contract textiles sector require an annual event towards the beginning of the year. Techtextil and Texprocess are biennial trade fairs and are next due to be held in May 2021. For Heimtextil, this is an opportunity to join forces with the two internationally successful textile trade fairs and present the entire textile value chain simultaneously at Frankfurt Fair and Exhibition Centre”, says Olaf Schmidt, Vice President Textiles and Textile Technologies.

Additionally, holding Heimtextil concurrently with Techtextil, the leading international trade fair for technical textiles and nonwovens, and Texprocess, the leading international trade fair for processing textile and flexible materials, offers a host of exciting synergistic effects for the sector.

The close proximity to suppliers and buyers of technical textiles and nonwovens with innovative functionalities, as well as machines and the latest technologies for processing textile and flexible materials, is certain to generate interesting new perspectives for both visitors and exhibitors of Heimtextil. Indeed, the two textile fairs already aim at the home-textile sector with the ‘Hometech’ segment.
 
“We are confident that the situation with respect to the corona pandemic will have eased significantly by May, next year, and are looking forward to holding a successful and safe event together with our partners from the sector”, says Olaf Schmidt.

NEU: Nextrade - the digital marketplace
For the first time, Messe Frankfurt will provide a supplementary digital service in connection with Heimtextil 2021: Nextrade, an order and data-management portal offering new opportunities through digital 24/7 business relationships between trade-fair participants, especially against the background of the Covid-19 pandemic. There, dealers can place their orders with suppliers around the clock and, therefore, do so independently of any official pandemic regulations applying at the time. Nextrade also offers suppliers completely new sales and distribution channels, especially internationally. Nextrade was launched in conjunction with the Ambiente, Tendence and Nordstil consumer-goods and lifestyle trade fairs. As the first digital B2B market place for home and living, the portal brings together demand and supply from the whole sector and thus produces great value added for both sides:: www.nextrade.market

Techtextil / Texprocess
At the biennial Techtextil, the leading international trade fair for the sector in Frankfurt am Main, international exhibitors present the complete spectrum of technical textiles, functional apparel textiles and textile technologies for all areas of application. Techtextil is held concurrently with Texprocess, the leading trade for the garment and textile processing industry, which is aimed primarily at manufacturers of garments, fashions, upholstered furniture and leather products.

More information:
Heimtextil 2021
Source:

Messe Frankfurt GmbH

Foto: Pixabay
07.04.2020

Natural textile sector responds to Corona with creativity and cooperation

While you can read everywhere that the fashion industry is on the verge of collapse and is demanding funding from the government, many textile and leather companies with an ethical background are actively and jointly working on creative solutions so to avoid closing.
It is now becoming clear that smaller sustainability pioneers have some advantages over the retail giants and big brands. Flexibility, a strong connection between suppliers and customers and credibility are now paying off.

While you can read everywhere that the fashion industry is on the verge of collapse and is demanding funding from the government, many textile and leather companies with an ethical background are actively and jointly working on creative solutions so to avoid closing.
It is now becoming clear that smaller sustainability pioneers have some advantages over the retail giants and big brands. Flexibility, a strong connection between suppliers and customers and credibility are now paying off.

Mobility is trump card
The precarious economic situation in the stationary retail sector forces companies to take new and creative paths. Close and emphatic customer loyalty and the flexibility of smaller shopkeepers pave the way. And the ideas and measures are manifold. Some redirect their goods to online trading, offer a delivery service.  Life videos from the shops, which present and explain the goods, or participation campaigns for consumers are further examples. Manufacturers and brands are also rethinking. For example, some companies are producing face masks to cushion the decline in sales somewhat, while others are shifting the short-term production focus to basic products that are easy to market online.
 
Supply chain safety
The leather and textile industry are currently not only facing the problem of falling sales. The fragile global markets, which supply raw materials and services for large corporations, are currently becoming a threat. If the economies in China and Bangladesh come to a standstill, the German fashion market will no longer be able to obtain sufficient goods in the short term. Companies that produce in Germany or in other economically stable countries are now at an advantage.  Some of the companies that purchase raw materials from abroad are already ordering them for the next production cycle, on the one hand to give the supplier a certain amount of security, and on the other hand to be prepared for the post Corona era.

Community spirit
An ethical business practice does not only mean acting in an environmentally and socially responsible manner with regard to supply chains. Credibility, trust and empathy are just as important now if the fashion industry does not want to lose itself in price dumping and fierce competition. The press talks about billion-dollar cancellations, corona bargains and bankruptcies. Many IVN members show that there is another way. Suppliers tell us that they are holding back orders until the end of April in order to give the trade some financial leeway. Retailers usually at least consult with their suppliers if they are unable to call up a complete order. Retailers with online shops spontaneously take in goods from friendly brands, even if the products do not fit into the company's own portfolio. Brands advertise their customers' sales channels in social media, orders are bundled. People talk to each other - the customer with the supplier, but also competitors with competitors.

Slow fashion
Conventional fashion is subject to extremely fast cycles - "fast fashion" is the keyword. To a lesser extent, the fashion industry at least follows the seasonal seasons. Currently, the spring collection is hanging in the shops and cannot be sold in June. This is no different for sustainable fashion. However, the fashion trends are less pronounced, so that the current merchandise can still be worn next spring. The sustainable consumer attaches somewhat less importance to the fashion aspect and green fashion is fashionable but also tends to be more timeless than conventional fashion.

The mood
Naturally, companies from the natural fashion scene are now also forced to reduce their operating costs if they want to survive. This means short-time work, and if the situation continues for a longer period of time, this will certainly include layoffs. And of course, all niche market players are also deeply concerned. But whoever we have spoken to so far, we hear stories of opportunity, gratitude and activity.
Some see an opportunity in involuntary pauses - for example, this forced pause is certainly beneficial to climate protection. There is a very real chance also, that the fashion cycle can now be shifted back a month and thus be brought back into line with the real situation.

Many IVN members are grateful, for example, that they are based in Germany. The health care system is at least still stable at present and the black zero enables our government to set up a rescue fund. Many are also grateful for the solidarity and trust that is shown to them. From the end consumer to the business partner to the landlord, who would rather reduce or suspend a rent claim than lose a long-term tenant.
The mood is battered, but not yet in the basement. It is to be hoped that everyone will soon be able to resume their economic activities in the normal framework and that the privileges and advantages enjoyed by the sustainable fashion industry will be sufficient to ensure that everyone comes through this crisis as unscathed as possible.

 

Source:

Internationaler Verband der Naturtextilwirtschaft e.V.

INVENTING TECHNOLOGIES NO ONE CAN COPY… I.S.T © I.S.T Corporation
03.03.2020

INVENTING TECHNOLOGIES NO ONE CAN COPY… I.S.T

NEW HIGH-TECH FIBERS AND YARNS FOR THE SPORTS AND LEISURE MARKET 

With its trade fair premiere at this year's ISPO Munich at the end of January, a newcomer in the sportswear and outdoor market has achieved a well-received appearance: For the first time in Europe, the Japanese company I.S.T Corporation presented its new high-tech fiber and a spinning technology with amazing possibilities at their booth with extensive augmented reality technology. In the sports industry, I.S.T is only known to a few, although there have been first cooperations with well-known manufacturers such as Patagonia in the last seasons.

NEW HIGH-TECH FIBERS AND YARNS FOR THE SPORTS AND LEISURE MARKET 

With its trade fair premiere at this year's ISPO Munich at the end of January, a newcomer in the sportswear and outdoor market has achieved a well-received appearance: For the first time in Europe, the Japanese company I.S.T Corporation presented its new high-tech fiber and a spinning technology with amazing possibilities at their booth with extensive augmented reality technology. In the sports industry, I.S.T is only known to a few, although there have been first cooperations with well-known manufacturers such as Patagonia in the last seasons.

The CEO and president, Ms. Toshiko “Toko” Sakane, answered Textination's questions. She has been running the company - founded by her father - since November 2016. After completing her bachelor's degree in sociology / human sciences, she worked in the office of the House of Representatives of the Japanese Parliament and the former Japanese Minister of Health and Social Affairs. Later she was managing director of the I.S.T Corporation in Parlin, New Jersey, USA, founded in 2000 - a manufacturer of unique, high-temperature resistant resin materials.

I.S.T is a Japanese company with a comparatively young history. Originally founded in 1983 as an R&D company, you are now also based in the United States and in China. If you had to introduce yourself in 100 words to someone who doesn't know the company: What makes you unique?
I.S.T Corporation is an R&D-oriented Japanese material company with the claim to "invent technologies that no one can imitate". What makes us uniquely competent is our integrated process of material development, innovating our own in-house production methodologies and advancing production technologies. Through this end-to-end cycle, we can achieve various advantages including developing complete original products, securing best quality assurance, and, most importantly, letting us discover new innovations. I.S.T is committed to keep innovating new technologies so they can contribute to enriching people’s lives more.   

Your slogan is: make the impossible possible. In which markets and from which industries do you feel particularly challenged? And with which product innovations for the textile industry do you think you can move the most?
I.S.T’s focus is sporting goods and apparel industry because materials used in this industry demand a wide variety of functionalities and are likely used in extreme conditions. We find it challenging and exciting to offer our advanced innovations. As for the textile industry, we believe our KARL KARL™ spinning technology offers a new great solution for winter active inner wears because it offers all the functions they want, such as warmness, being light-weighted, and easy-care.

A central guideline of the company is the motto "Inventing technologies no-one can copy". Patent protection and a consistent brand policy characterize your activities in the market. But patents can expire and brands can be copied, what makes you uncopiable?
A patent or brand can be copied. However, what makes it impossible to copy us is that our core technologies are embedded throughout our integrated process of material development, in-house production methodologies and advancing production technologies. For example, our KARL KARL™ technology is spinning technology that offers multiple functionalities in one yarn and also can be applied to all different types of and hybrid yarns.
There are some other companies that claim their yarns having a similar function with ours, but those are single function and in a particular type of yarn. This is the most fundamental and significant difference between technologies and competitors. Other companies may be able to copy a single function from us, but it will never be the same as our products that are the results of layers and layers of our integrated innovations.
          
Initially focused on selling technology, you are now a major fiber producer yourself. In addition, you have expanded your portfolio in the past 15 years - for example in the wool market - through acquisitions in Japan and China. Where do you see I.S.T as a player in the textile sector in 2030?
Just as you see a GORE-TEX tag on any outerwear, I would like to see brand names produced by I.S.T on every sports and fashion apparel and people instantly recognize it as the sign of most advanced functional materials.

For the first time you attended ISPO Munich 2020 in January as an exhibitor to present the high-tech fiber IMIDETEX® and new KARL KARL™ yarns to the sporting goods and outdoor industry. What is so special about these two products and what makes them so suitable for use in these markets?  
IMIDETEX®, made of 100% polyimide resin and commonly used in outer space, has possess various advantageous characteristics that other existing super fibers couldn’t overcome, including it being high UV resistant, heat resistant, low water absorption, and has a high tensile strength.
Examples of possible applications for the outdoor market as in composites, would include highly resistive but also durable golf shafts or tennis rackets that can minimize the impact sent to players, and a bicycle that can absorb the shock from the ground throughout a long and competitive race. As for textile, it makes an incredibly durable sail that endures an unforgiving sun. Finally, as yarns IMIDETEX® makes a light-weighted but super strong ropes that people can trust their lives with. IMIDETEX® can provide great performances in extreme natural conditions.
KARL KARL™ is the patented spinning technology that multiplies one core thread with another thread. By expanding the yarn structure itself, it achieves lightness and warmness, which are two seemingly opposite characters to coexist. This technology can be applied to wool, cotton, silk, polyester, nylon … plus there are endless possibilities of developing new yarns by combining different characteristic yarns.
These materials by I.S.T are unrivaled and present infinite possibilities for richer designs in sports fashion scenes.

In a world in which great value is placed on nature and natural materials, man-made fibers are not always welcome. On your website you postulate, I.S.T contributes to the people around the world through chemistry for a better life style. Which aspects make a good case for that?
Our brand-new product, faux-fur, made with KARL KARL™ technology is a good example of our contribution to keep the good balance of natural and synthetic.
The real fur is fashionable but it’s a symbol of animal abuse nowadays. To conserve the nature, our KARL KARL™ faux-fur offers an alternative to fashion, while preventing polluting the ocean from using micro fibers.    

In which socially relevant subject areas do you see a particularly great need for innovation and action during the next 5 years? What is your assessment that your company will be able to offer solutions for this with its products?
We believe that light-weight is a major key factor for better lives and the planet because it allows to save energies and expand the performances.
As the first step, we are bringing in our light-weight technologies, such as IMIDETEX® composites and KARL KARL™ technology, to sporting gears and apparels to support our active lifestyle before extending those technologies to all other markets that can benefit from them.

There are various definitions for sustainability. Customers expect everything under this term - from climate protection to ecology, from local on-site production to the exclusion of child labor etc. What do you do to bring this term to life for your company and what activities or certifications do you rely on?
I.S.T's taking this subject seriously in any aspects. We aggressively approach to research and develop technologies and materials that can support human lives and planet, as well as bringing in sustainable methods and materials to our operations. For instance, we are developing a yarn making from cellulose taken out of used papers without using any harmful chemicals to humans. Also, we invested in a state-of-the-art low emission production facility to make Polyimide materials.
We are RWS (Responsible Wool Standard) certified yarn spinner as far as wool is concerned and we are using RWS certified wool fiber. As for polyester, we are using GRS (Global Recycled Standard) certified recycled polyester and as for cotton, we are using organic cotton fiber. Moreover, our company values producing materials that last forever and not to produce any wastes and/or one-time use materials.
          
Where do you get your inspiration from to research certain technologies or products? Which orders or inquiries from the textile supply chain play a decisive role?
You may think that our life is already filled with things and there isn’t a thing that we cannot get in this world. And yes, we have everything. Yet there are some functions you wish you had in addition to full of those things.
The original idea of developing KARL KARL™ technology was that we wanted to adapt functions like lightness, warmness, quick-drying and easy-care that synthetic fibers have, into natural fibers such as wool and cotton because, obviously natural fibers are much friendlier to human and the earth than petroleum-based fibers.
We believe in and keep our corporate missions: “Develop and manufacture products no others have tried before” and “Handle high-value added products”. Our inspirations for R&D come from our belief, “bringing a wish into a reality”. We do not get an inspiration from others. Our innovations inspire customers and the market.

Breaking new ground means willingness to make decisions, overcoming fears - and thus courage to fail. Not every project can succeed. In retrospect, which entrepreneurial decision are you particularly happy to have made?
Actually, for us, there is no such thing as failed projects because we never give up until each and every project becomes successful.
By carrying on our original corporate missions of “Develop and manufacture products no others have tried before” and “Confront difficulties” that my father, the founder of I.S.T, established almost forty years ago, I.S.T members including myself have learned the joy of overcoming problems and of feeling the victory.
When I took over the business, I have set my goal to “move forward to the global market to inspire the world with our technologies”.
Most recently, by making the decision to enter the sporting gears and apparel market and receiving very positive responses at the ISPO Munich 2020, I’m very pleased that we have made one step forward toward my goal.

The interview was conducted by Ines Chucholowius, CEO Textination GmbH

Photo: © PERFORMANCE DAYS
29.10.2019

SUSTAIN&INNOVATE: THE FIRST SUSTAINABILITY CONFERENCE SPECIFICALLY FOR THE FUNCTIONAL TEXTILE INDUSTRY

PERFORMANCE DAYS and SPORTSFASHION by SAZ launch their cooperation
The second day of the upcoming PERFORMANCE DAYS will be devoted fully to the issue of sustainability. In cooperation with the trade magazine SPORTSFASHION by SAZ, the fair will present the first conference for sustainability in the functional textile sector, entitled “sustain&innovate”.

PERFORMANCE DAYS and SPORTSFASHION by SAZ launch their cooperation
The second day of the upcoming PERFORMANCE DAYS will be devoted fully to the issue of sustainability. In cooperation with the trade magazine SPORTSFASHION by SAZ, the fair will present the first conference for sustainability in the functional textile sector, entitled “sustain&innovate”.

In the world of sport, as well as in fashion, functional textiles, fabrics and fibres have become indispensable. And these areas are precisely where sustainability is such an important issue, while proving just as complex at the same time. Sustainability has yet to find a real home, although sustainability events in the textile branch do exist. PERFORMANCE DAYS, in cooperation with the trade journal SPORTSFASHION by SAZ, is now taking on the challenge to specifically inform the functional textile sector, in particular about the most important and latest steps relating to sustainability. Consequently, the two key industry players are organising the first Sustainability Congress for functional textiles on November 14th in Munich, in the EXPERT TALKS Area of PERFOMANCE DAYS in Hall C1 of Munich’s fair centre.

Key speakers for the industry’s key issue
Under the title “sustain&innovate”, the November 14th will see a full day of international speakers giving talks on important and cutting-edge topics concerning sustainability, exclusively tailored to the functional textile branch.

The program is supported by the sponsors PrimaLoft, Polortec and ISKO who also exhibit at PERFORMANCE DAYS. Visitors can expect an extensive and informative program:

  • Vaude managing director and sustainability specialist Antje von Dewitz will join as a keynote speaker.
  • Karin Ekberg’s topic is of particular interest, where she will explain the importance of the HIGG Index for production. 
  • The Patagonia brand is considered a pioneer in terms of sustainability, making Patagonia’s Nicholas Allen’s presence at the conference of key importance, where specialist journalist, Charles Ross, will interview him. 
  • The audience can look forward to an exciting round of discussions when sustainability expert Anna Rodewald from the GreenroomVoice agency talks to international guests about the latest developments in sustainability. 
  • Specialist journalist Sophie Bramel will chair another interesting round of discussions entitled “Designing for Recycling” and the consideration of mono materials in the development of functional clothing.     
  • Martin Cieslik, Head of Sales of the renowned Hohenstein Institute, answers the important question “Why Verification Matters” in his talk. 
  • Sponsors of the event, such as PrimaLoft and Polartec, will also be presenting their sustainable concepts. Visitors can look forward to speakers from leading ingredient brands. 
  • Ulrike Arlt, editor-in-chief of SPORTSFASHION by SAZ, will moderate the program. She will also be giving a talk on the status quo of current success in relation to sustainability within the industry.

The conference will take place in the exhibition area of PERFORMANCE DAYS. The entire EXPERT TALKS Area of Hall C1 at Munich’s fair grounds will be reserved on November 14th for this innovative and unique format.

Best of all for all visitors: Not only admission to the trade fair, but also all lectures and talks at the sustain&innovate conference are free of charge! Nevertheless, it is recommended that visitors register online in advance of their arrival in order to avoid waiting times at entrances. 

This absolutely unique format is completed by a special edition of SPORTSFASHION by SAZ, reporting on the conference itself and all-important sustainable issues for exhibitors, in both the German and English language. The magazine will be available at entrances on both fair days, and can be read online on the websites www.performancedays.com and www.sazsport.de, and also sent to all subscribers.

Trade fair general manager Marco Weichert is upbeat: “As a trade fair for functional fabrics and materials, we have always been a pioneer when it comes to innovation. The topic of sustainability is not only of immense importance, it will be the driving key issue for the branch in the coming years. That is why we are particularly proud that we’ve developed a unique and new format with the sustain&innovate conference, which did not exist in the branch in such a form. This allows us to reach and inform all major decision-makers internationally in relation to the manufacturing and sale of functional textiles, from fibre manufacturers to clothing brands”.

Wireless Power Transmission for Technical Textiles Bild von Gerd Altmann auf Pixabay
27.08.2019

WIRELESS POWER TRANSMISSION FOR TECHNICAL TEXTILES

The trend towards the "Internet of Everything" is ongoing. Whether in industrial, medical or everyday applications, more and more electrical devices are connected to each other, record sensing values, exchange data and react to them. Due to smaller structures, new processing possibilities and new flexible materials, such systems are also being used more and more frequently in the textile sector. For example, medical measurements can be recorded directly on a garment, actuators such as EMS electrodes can be integrated directly into the textile or functions such as MP3 players, GPS receivers, fall detectors, heating structures and much more can be embedded simply and intuitively in textiles. Communication and data exchange usually take place wirelessly via WLAN, Bluetooth, RFID or, in the future, via the 5G network.

The trend towards the "Internet of Everything" is ongoing. Whether in industrial, medical or everyday applications, more and more electrical devices are connected to each other, record sensing values, exchange data and react to them. Due to smaller structures, new processing possibilities and new flexible materials, such systems are also being used more and more frequently in the textile sector. For example, medical measurements can be recorded directly on a garment, actuators such as EMS electrodes can be integrated directly into the textile or functions such as MP3 players, GPS receivers, fall detectors, heating structures and much more can be embedded simply and intuitively in textiles. Communication and data exchange usually take place wirelessly via WLAN, Bluetooth, RFID or, in the future, via the 5G network.

Electrical energy is required for such applications and functions. Despite the efforts to further minimize the energy demand of electronic circuits, it is not always possible to operate these systems completely energy autonomously. Therefore, energy storage devices such as batteries or rechargeable accumulators are necessary for operation. The big advantage of recharging is that smaller, more compact energy storage devices can be used to achieve the same or an increased service life running time. There are two basic concepts for recharging a battery with electrical energy. On the one hand wired and with connections like a micro-USB cable. On the other hand wireless via wireless power transmission. With wired solutions, contacts can wear out or be added by fuzz, especially in the textile sector. In addition, the connecting process is less flexible and uncomfortable.

Wireless concepts offer several advantages and are therefore better suited. For example, the electronics including energy storage can be completely encapsulated, since no galvanic contacts are required. Among other things, this makes the textile directly machine-washable, because the electronics are protected from water, detergents and sweat. This means that no components need to be removed from the textile when washing. A further purely practical advantage is the simplicity of charging. With the suitable concept, the textile can be hung on hangers, placed in laundry baskets or, ideally, simply placed in the washing machine and charged without any further action of the user. The result is an uncomplicated, charming way of operating smart textiles.

There are several concepts and possibilities for wirelessly supplying a textile with energy. The most popular and at the same time most efficient method is the inductive power transmission [1]. Two coils are inductively coupled to each other and thus transmit energy wirelessly (Figure 2). Air, wood, plastic, but also liquids such as water or human tissue can be penetrated a few centimeters almost loss-free.  There are also various concepts for integrating electronics into textiles. From the production of the entire circuit on thin printed circuit boards to complete textile integration, a wide variety of mixtures are possible. The easiest concepts to develop are those in which all circuit parts are manufactured on printed circuit boards. Thin printed circuit boards can have substrate thicknesses of a few tenths of a millimeter (Figure 1). But flexible possibilities such as manufacturing on silicones are also conceivable. Among other things, the sensors and microcontrollers as well as the coil for inductive energy transfer to the substrate are manufactured. This complete printed circuit board then only has to be connected to the textile, whether by gluing, sewing or insertion.

Concepts in which the receiver coil is integrated into the textile go one step further. For example, ultra-fine wires or strands are woven or embroidered and the textile material thus becomes the substrate itself as a functionalized textile. The rest of the circuit, which is still integrated on a conventional substrate, is then connected to the coil and the textile. Since some of the spools can have diameters of a few centimeters, one can gain in flexibility because the textile spool can move almost freely. With a complete textile integration, the components are finally attached to the textile and the conductor paths are embroidered or woven in.

Consistently implemented and used, wireless power transmission as a simple and convenient charging method of textiles can thus contribute to sustainably strengthen the market for smart textiles improving handling and user experience.

Source:

Fraunhofer Institute for Electronic Nano Systems ENAS
Authors: Dominik Schröder, Dr. Christian Hedayat

Foto: PIXABAY
19.02.2019

DOMINICAN REPUBLIC REMAINS DIFFICULT MARKET FOR GERMAN TEXTILE MACHINERY

  • Deliveries have risen sharply recently

Cheap and used technology dominates at the Dominican market for textile machinery. It is some of the country's problems that give German suppliers some hope.

The good news is that in the first eleven months of 2018 German exports of textile and clothing machinery to the Dominican Republic rose by 580 percent year-on-year, and, according to Eurostat, by 2017 German deliveries had tripled. The bad news: German sector exports reached only EUR 1.7 million in absolute terms. This is considerably less than, for example, in Guatemala with its not much larger technology market.

  • Deliveries have risen sharply recently

Cheap and used technology dominates at the Dominican market for textile machinery. It is some of the country's problems that give German suppliers some hope.

The good news is that in the first eleven months of 2018 German exports of textile and clothing machinery to the Dominican Republic rose by 580 percent year-on-year, and, according to Eurostat, by 2017 German deliveries had tripled. The bad news: German sector exports reached only EUR 1.7 million in absolute terms. This is considerably less than, for example, in Guatemala with its not much larger technology market.

Representatives of German providers are not surprised about the figures. Cheap equipment from China and other Asian countries are in demand, but above all mainly used machines. Hugo Clavijo of Texquim, who represents the German suppliers Mayer & Cie. (circular knitting machines) and Groz-Beckert (needles), among others in the Dominican Republic, estimates, that just five out of every hundred machines sold are new. Around the turn of the millennium, the market thus became the residual ramp for the declining US textile industry. According to UN Comtrade, around 60 percent of the value of technology deliveries in recent years came from the USA.

The International Textile Manufacturers Federation also registered hardly any shipments of new machines: for 2010 to 2017, the ITMF shows just ten flat knitting machines and eleven (all in 2017) circular knitting machines. Also, for this period 720 Double Heaters for texturing synthetic filaments for yarn production were listed. The ITMF counts the deliveries of 200 textile machinery manufacturers worldwide and thus a large part of the market, albeit not the entire one.

Electricity and water bottlenecks as arguments for expensive machines
Hugo Clavijo currently sees no great chance of a rapid improvement in the sale of expensive German technology. But ironically, it is some of the country's problems that may transform the potential customer interest into concrete procurements: The energy supply for the textile companies is expensive and unreliable, and the companies have to treat their process water themselves. Economical and less repair-prone machines would come into a closer consideration even if the purchase prices were significantly higher. It would also be helpful to enforce environmental standards, which today are largely on paper only.

There is also a need for technology if the Dominican textile and clothing manufacturers expand their capacities due to possible changes in international trade policy, i.e. if clothing customers in the USA would place orders in the Caribbean country instead of Asia. At the moment, however, the Dominican export industry is not using its factories to capacity.

Installed capacity of the Dominican textile industry in comparison (2016, in units) 1)

Machinery / technology Dominican Republic Guatemala Ethiopia Turkey
Rotor Spinning 2) 1,400 21,000 19,000 800,000
Short Staple Spinning 2) 20,000 150,000 293,852 7,900,000
Shuttle Looms 3) 500 3,000 167 20,000
Shuttleless Looms 3) 150 890 2,200 49,500

1) no data on other machines; 2) spinning machines; 3) weaving machines

Source: International Textile Manufacturers Federation

The Dominican textile and clothing industry, which, according to the central bank, generated 11 percent of the country's total export revenues with clothing from free zones in 2017, is not fully vertically integrated: it mainly imports yarns, which then is mainly being knitted but also woven or otherwise processed and then assembled into finished clothing. It often produces T-shirts and other knitwear with a high cotton content. And this is "the cheap stuff," as Clavijo says.

There is a limited production of synthetic yarn in the Dominican Republic which, according to Hugo Clavijo, is limited to two companies: The Korean company Youm Kwang textures filaments in the country, while the US company A&E (American & Efird) produces sewing thread from imported filaments.

Four export producers as important technology customers
The Dominican textile sector is said to consist of about two equal segments. A dozen medium-sized companies and a large number of garage companies supply the domestic market. In addition, four companies produce for export in the country's free zones: Gildan (Canada), Hanes (USA), Willbes (Korea) and the local Grupo M, which has been working in a 50/50 joint venture with Brandix from Sri Lanka since the beginning of 2017. The procurement of machines in foreign companies is not decided by the local management, but by the corporate headquarters, according to representatives.

The four export producers are said to be vertically integrated from yarn processing onwards. Grupo M supplies about one fifth of its fabrics, knitwear, etc. to processors, while the other three industry giants manufacture these preliminary products completely by themselves. According to Comtrade (SITC chapter 84), three quarters of the clothing exports go to the USA, the remainder predominantly to the neighboring Haiti.

For US clothing customers, the nearby Dominican Republic offers fast and cheap transport routes as well as the advantageous customs regime of the DR-CAFTA trade agreement. According to Hugo Clavijo, however, Dominican clothing exporters must obtain their intermediate products from the USA in order to benefit from all customs relief. Producers for the Dominican domestic market, on the other hand, are using yarns and fabrics from China, Pakistan or other third countries that offer lower production costs.

USA dominate machine deliveries
The Dominican market for textile and clothing machinery has stagnated in recent years: For 2017, UN Comtrade estimated imports - there is no significant domestic production - at USD 36 million. That was as much as 2014 and around USD 10 million more than around 2010.

According to Comtrade, Germany was ranked sixth in the import ranking with an average share of 2.0 percent between 2015 and 2017. Eurostat, whose (export) data deviate considerably in some cases, noted stagnating industry deliveries from the European Union to the Dominican Republic for the first eleven months of 2018 in addition to the high growth for Made in Germany.

Dominican imports of textile machinery (USD thousand *)
ITC-Pos. Supplying country/ Goods Group 2015 2016 2017
  total 33,398 30,817 36,257
724.35, .39 Sewing machines (excluding domestic sewing machines) 12,131 10,350 12,784
7244 Spinn- and texturing machines 2,852 2,102 4,585
7245 Knitting and weaving machines 3,362 2,683 1,543
7246 Auxiliary machines 6,068 5,215 5,384
724.73, .74 Washing machines, stenter frames, etc. (except for housholds and landries), large-dryers 5,135 5,615 7,652
724.92 Parts for items 724.73 and .74 and for dry-cleaning machines (724.72) and domestic tumble dryers 3,850 4,852 4,309
  Supplying countries      
  USA 22,000 17,320 20,743
  China 3,424 3,058 2,380
  Spain 2,176 2,567 2,614
  Japan 973 1,894 2,688
  Italy 923 1,194 496
  Germany 397 724 873

*) SITC 724 without household sewing machines (724,33), household washing machines (724,.71), machines for dry cleaning (724.72), leather processing (7248), parts of household washing machines (724.91).
Source: UN Comtrade.

 

More information:
GTAI
Source:

Ulrich Binkert, Germany Trade & Invest www.gtai.de

PIXABAY
27.11.2018

EGYPT'S TEXTILE AND CLOTHING SECTOR FACING MODERNIZATION

  • State enterprises get better equipment

Cairo (GTAI) - The Egyptian government plans to modernize the textile sector and private companies are investing in new locations. Increasing machine imports and clothing exports are expected.

In the Egyptian textile and clothing industry, the signs are pointing to expansion and modernization. Local media reported on a number of private and public investment projects. According to the newspaper Al Gomhouria, a Chinese producer in the Suez Canal economic zone is planning the world's largest textile factory for USD 6 billion. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for 800 million USD. Sino-Egypt Minkai is planning to build a textile industry complex for around USD 750 million.

  • State enterprises get better equipment

Cairo (GTAI) - The Egyptian government plans to modernize the textile sector and private companies are investing in new locations. Increasing machine imports and clothing exports are expected.

In the Egyptian textile and clothing industry, the signs are pointing to expansion and modernization. Local media reported on a number of private and public investment projects. According to the newspaper Al Gomhouria, a Chinese producer in the Suez Canal economic zone is planning the world's largest textile factory for USD 6 billion. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for 800 million USD. Sino-Egypt Minkai is planning to build a textile industry complex for around USD 750 million.

The Egyptian state also wants to strengthen the textile and clothing production. In November 2018, the Minister of State Enterprise Hisham Tawfiq negotiated an extensive restructuring of the Cotton & Textile Holding Company with Werner International of the USA. According to press reports, the properties of 14 of the 25 cotton ginning plants should be sold. The ministry estimates the value at USD 1.5 billion. This appropriation is intended to cover the repair of machinery and the import of new equipment for the eleven remaining companies.

A free zone for textile production will also be created in Minya on the initiative of the state. This industrial zone is to be built on an area of 2.2 million square metres: The General Authority for Free Zones and Investment intends to launch the project before the end of 2018.

In autumn 2018, the Cotton & Textiles Industries Holding Company and Marubeni of Japan signed a letter of intent. This relates to the construction of a new textile factory in Kafr El Sheikh. A reduced loan from the Japan Bank for International Cooperation secures the financing of the project.

Import demand for textile and clothing machinery expected to increase
The planned projects are expected to lead to a further increase of a demand of imports. Like other types of equipment, the vast majority of textile and clothing machinery is imported into Egypt. In 2017 the German share of deliveries fell by 8.4 percentage points to an year-on-year comparison to 12 percent. However, this reduction is put into a perspective by the fact that the reference year 2016 was a positive outlier. In 2015, the German share was still 15.8 percent.

Imports of textile and clothing machinery to Egypt (in USD 1,000)
HS-Category 2016 Therof from Germany 2017 Therof from Germany
8444 4,481 2,025 5,554 n.v.
8445 26,105 5,429 32,660 4,807
8446 23,591 13,346 26,170 4,493
8447 15,713 3,052 22,032 4,493
8448 20.574 3,365 18,013 2,698
8449 299 0 1,725 0.4
8451 36,512 2,334 37,887 3,511
8452 23,186 1,698 29,633 1,309
8453 3,678 137 9,892 155
Total 154,139 31,386 183,566 22,028.4

n.a. = not available
Source: Comtrade

Egyptian textile and clothing companies often produce with a lot of manual work and partly with very outdated machines. The government's aim is to create as many jobs as possible due to the continued population growth. On the other hand, a more automated and modern production would allow more complex products. These could be sold at a higher profit, but would also require less human labor.

Important role of the sector companies for the Egyptian economy
The textile and clothing companies in Egypt represent a significant and labor-intensive industry. Local and imported fibers are being processed in the country and there is a broad base of spinning mills, weaving mills, dyeing houses and manufacturers of clothing and home textiles. It is estimated that the companies employ between 1 million and 1.2 million people. A regional focus is Mahala El Kubra. State enterprises are strongly represented in the textile sector, while the private sector plays a greater role in the clothing sector. About 90 percent of the spinning and weaving mills are state-owned.

According to the Readymade Garments Export Council (RMGEC), the garment industry accounts for 3 percent of the country's gross domestic product, 15 percent of exports (excluding oil), and one of three industrial jobs in the country. From January to the end of August 2018, clothing exports to the RMGEC totaled USD 1,040 million. In the same period of 2017, exports amounted to only US$ 980 million.

Egyptian exports of textiles and clothing (selection; in USD million;
change in %)
HS-Category 2016 2017 Change 2017 / 2016
57 303.5 313.9 3.4
60 35.7 44.3 24.1
61 388.0 466.0 20.1
62 756.6 910.7 20.4
63 227.2 231.1 1.7
Total 1,711.0 1,966.0 14.9

Source: UN Comtrade

The Qualified Industrial Zones (QIZ) play a special role. These are special zones with Israeli added value, which are fixed during production, and the products enjoy customs advantages when exported to the USA. Since 2005, the QIZ system has provided more private investments in the garment sector. Jeans and other clothing for well-known brands are delivered to the USA from the 25 zones.
Egyptian manufacturers are also generally not always recognizable as such, as they often manufacture for major international brands. Middle East Eye names Calvin Klein, Decathlon, Tommy Hilfiger and Zara as examples. In November 2017 Dice Sport and Casual Wear agreed to supply Levi Strauss & Co. with children's clothing.

The US company Disney even purchases 33 types of products from Egypt. Since 2017, Egypt has been cooperating with the International Labor Organization ILO as part of the Better Work Program. Working conditions are to be improved in 30 clothing factories. According to media reports, for Disney these measures were a reason to extend the licenses of the Egyptian suppliers until December 2019.

Currency effect improves competitiveness
The labor-intensive production benefited from the currency devaluation in 2016. According to a report by the news portal Middle East Eye, Egypt has at least 100 USD monthly salary for workers and is about at the same level as India or Bangladesh and at about 50 of percent Chinese salaries. In addition, prompt and fast deliveries to Europe and the USA are possible.

On the other hand, the companies are dependent on foreign supplies, which became more expensive. In Egypt especially soft and high-quality long staple cotton is cultivated and exported. Domestic producers, on the other hand, mainly use short-staple cotton and other foreign fibers as raw materials. The RMGEC complained about rising production costs in October 2018. Wages, electricity, water, natural gas, transports and more expensive imports of raw materials contributed to this development.


Further information on Egypt can be found at http://www.gtai.de

 

More information:
GTAI Ägypten
Source:

Oliver Idem, Germany Trade & Invest www.gtai.de

13.11.2018

TUNISIA'S TEXTILE SECTOR RECOVERS

German suppliers can benefit from production expansions
Tunis (GTAI) - After difficult years, Tunisia's textile sector is recovering. Exports and foreign investment are on the rise again. Production is for export, especially to Europe.

At the end of October 2018, the Swiss auditing group SGS reported its expanded testing capacity for textiles in Tunisia. This was in response to the increased demand from producers producing for the world market in Tunisia. The sector has not been doing well in recent years. Even before the revolution in 2011, competitive pressure from Asian producers had left its mark, especially after the expiry of the multi-fiber agreement in 2005. According to the FTTH (Fédération Tunisienne du textile et de l'habillement), more than 400 companies have left the country since 2011 and 40,000 jobs have been lost.

German suppliers can benefit from production expansions
Tunis (GTAI) - After difficult years, Tunisia's textile sector is recovering. Exports and foreign investment are on the rise again. Production is for export, especially to Europe.

At the end of October 2018, the Swiss auditing group SGS reported its expanded testing capacity for textiles in Tunisia. This was in response to the increased demand from producers producing for the world market in Tunisia. The sector has not been doing well in recent years. Even before the revolution in 2011, competitive pressure from Asian producers had left its mark, especially after the expiry of the multi-fiber agreement in 2005. According to the FTTH (Fédération Tunisienne du textile et de l'habillement), more than 400 companies have left the country since 2011 and 40,000 jobs have been lost.

Now positive news are coming: In 2018, for example, the German Gonser Group opened its fifth production facility in Tunisia. In total, foreign direct investments in the first six months of 2018 amounted to Tunisian Dinar (tD) 24.9 million (approx. EUR 7.5 million), 1 tD = approx. EUR 0.301as of 11. 07.), more than twice as high as in the corresponding period of the previous year. The fact, that the number of new created jobs as a result has risen much less, can be seen as confirmation of the structural change: Away from simple mass production to higher-value production.

A high level of employee training is also decisive for this. The Sartex company shows how this can be ensured. In 2014, the Tunisian company opened a training center, in which some 500 Tunisians have already been trained and most of them were hired by Sartex. The company was supported by the Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Centre d'Orientation et de Reconversion Professionnelle (CORP) of the AHK Tunisia.

During the visit of Federal Development Minister Müller in October 2018, an agreement was signed on the establishment of a training center in EL Alia in the Bizerte governorate. Among others the German company van Laack is producing in the region. A total of 180,000 Tunisians now work in the textile sector, which accounts with that for about 40 percent of industrial jobs.

Wage increases in two steps
More than one year after its foundation, FTTH has established itself as the interest representative of textile companies. In 2017 the company split from the employers' association UTICA (Union Tunisians de l'Industrie, du Commerce et de l'Artisanat), not least because the envisaged general wage increases for the company's own industrial sector were considered unworkable. But meanwhile, common ground and cooperation have been emphasized again, or FTTH describes itself as part of UTICA, with a high degree of autonomy.

An agreement has now also been reached with the Union Générale Tunisienne du Travail (UGTT). This provides for wage increases of 6.5 percent as of 1 January 2019 and 2020 respectively. This wage increases are thus likely to be lower than the inflation, provided that the forecasts for the inflation rate of around 7.5 percent for the current year 2018 will be that way. Currently, the minimum wage in Tunisia's textile and clothing industry for unskilled job starters is around EUR 129 (as of 07-11-2018) per 48-hour week.

Of the more than 1,600 textile companies, over 1,400 are producing exclusively for export. The target markets are clearly in Europe. More than 60 percent of exports went to France and Italy in 2016, with Germany in third place with about 11 percent. As the largest non-European customer, the USA was ranked ninth with less than one per cent. By joining the Common Market for Southern and Eastern Africa (COMESA), Tunisia aims to develop new markets. According to the Ministry of Commerce, bilateral talks are underway with several African countries to provide duty-free market access for Tunisian textiles.

Are Chinese investors discovering Tunisia as a location?
In addition to the relations with the African continent, relations with China could also change in the medium term. At the China-Africa Cooperation Forum held in Beijing in September 2018, Chinese textile companies expressed their interest in Tunisia as a production location. As wages have increased in China in the meantime, a relocation of production to certain sectors of the textile industry could prove useful for the European market.

Exports already increased in 2017. The trend seems to continue in 2018. In 2016 exports were USD 2.9 billion, in 2017 USD 3 billion (a significant increase due to the Dinar's decline in exchange rates (7 billion tD against tD 8.4 billion). According to the first announcements, exports to Europe in the first months of 2018 are expected to have increased again by 3.5 percent compared to 2017. Improving transport and customs clearance should be important for the further development of the textile sector. Especially the companies producing purely for export express this again and again. The textile sector in particular is dependent on short delivery times.

Meanwhile, FTTH is also working to improve the competitive position of Tunisian textile companies on their home market. This applies, for example, to the imports of used clothing for which stricter controls are being desired.

Tunisian imports of machinery, apparatus and equipment for the textile and leather industries and parts thereof (SITC 724; in USD million)
Origin 2015 2016 2017
Total 68.8 67.0 67.3
Italy 15.8 13.7 17.9
China 20.5 12.4 10.6
France   6.5   4.0   7.4
Germany   5.0   6.3   7.2

Note: Thailand was the third largest supplier in 2016, but fell behind in 2017. The table shows the four most important suppliers in 2017
Source: UN Comtrade

In addition to production expansions by German companies, German suppliers could also benefit if the recovery and, above all, structural changes will continue. While total imports of textile and leather machinery fell slightly from around USD 70 million to USD 67 million between 2015 and 2017, German deliveries increased from USD 5 million to USD 7.2 million. (JPS)

Further information on the Chinese commitment in Tunisia can be found online (German only): Link

 

More information:
Tunesia GTAI
Source:

Peter Schmitz, Germany Trade & Invest www.gtai.de

Indien fördert die Textilverarbeitung Photo: Pixabay
23.10.2018

INDIA PROMOTES TEXTILE PROCESSING

  • Integrated industrial parks necessary

New Delhi (GTAI) – The Indian textile sector is not only important for bringing foreign currency into the country, but also because of its role as an employer. The formation of new clusters is now getting supported by the government.

India, as one of the leading global producers not only of cotton, but also of wool, jute and silk, has a historic tradition in converting raw materials. Accordingly, India’s industry concerning spinning and weaving of fabric is broadly positioned, while contributing 14% of India's gross domestic product.

  • Integrated industrial parks necessary

New Delhi (GTAI) – The Indian textile sector is not only important for bringing foreign currency into the country, but also because of its role as an employer. The formation of new clusters is now getting supported by the government.

India, as one of the leading global producers not only of cotton, but also of wool, jute and silk, has a historic tradition in converting raw materials. Accordingly, India’s industry concerning spinning and weaving of fabric is broadly positioned, while contributing 14% of India's gross domestic product.

Even though the sector mostly consists of small enterprises, some clusters emerged. The textile industry can mainly be found in the federal states of Gujarat, West Bengal, Andhra Pradesh and Tamil Nudo.     
A more detailed structure is drawn by Sanjay K Jain, chairman of the textile Association “Confederation of Indian Textile Industry in an interview with Germany Trade & Invest: Knitwear clusters are found in Tirupur, Tamil Nadu, Kolkata, West Bengal, Ludhiana, and Kanpur. There are weaving centers in Ichankaranji and Bhiwandi (both Maharashtra), Erode (Tamil Nadu), Surat (Gujarat), and Bhilwara (Rajasthan). For ready-to-wear a cluster in Panipat (Haryana) and for the production of shirts and trousers has formed a cluster in Bangalore (Karnataka).
 
The state subsidy agency India Brand Equity Foundation (IBEF) recognizes four industrial centers – also according to the regional availability of raw materials. In the north (Kashmir, Ludhiana and Panipat) about 80 percent the production of woolen goods are concentrated. In the west (Ahmedabad, Mumbai, Surat, Raijkot, Indore and Vadodara) is the focus of the cotton industry. Hosiery (Tirupur, Coimbatore and Madurai) and silk products (Bengaluru, Mysore and Chennai) have their strengths in the South. The east of the country is focused on jute goods (Bihar and West Bengal). But also wool (Uttar Pradesh) and cotton goods (West Bengal) are represented. In addition, ac-cording to the IBEF, India has seven export-oriented Special Economic Zones for Textiles and Clothing in mid-2018.

A handicap for the textile industry is the missing size. For example, most low-capacity sites are scattered across the country. The construction of large integrated industrial parks is necessary. The various states and state institutions are also trying to promote new textile clusters.

The central government budget will provide ap-proximately US $ 4 million for the Scheme for Integrated Textile Parks (SITP) program in the fiscal year 2018/19 (April 1 to March 31). There are currently 47 projects in this field. The pro-gram intends the further development of such settlements with a common infrastructure.

More information:
Indien
Source:

Rainer Jaensch, Germany Trade & Invest www.gtai.de

Taiwan's Textile Industry sustains its Position with Innovations Photo: Pixabay
25.09.2018

TAIWAN'S TEXTILE INDUSTRY SUSTAINS ITS POSITION WITH INNOVATIONS

  • Manufacturers rely, among others, on German Machines

Tokyo (GTAI) - When it comes to functional textiles, Taiwan belongs to the international top league. To ensure that this remains the case, industry manufacturers invest in modern equipment and innovations.

Taiwan is an important global supplier of functional textiles. The sector wants to maintain this position and expand it as much as possible. They are therefore investing in new capacities, research and development. There are good sales opportunities for suppliers of pre-products and equipment.

The demand for functional textiles is increasing in the sports, leisure and footwear industries. In other sectors, such as the automotive and medical industries, building materials and agricultural aids, these are also increasingly being used. Functional textiles are usually not recognizable as Taiwan products. Nevertheless, some of them are very visible.

  • Manufacturers rely, among others, on German Machines

Tokyo (GTAI) - When it comes to functional textiles, Taiwan belongs to the international top league. To ensure that this remains the case, industry manufacturers invest in modern equipment and innovations.

Taiwan is an important global supplier of functional textiles. The sector wants to maintain this position and expand it as much as possible. They are therefore investing in new capacities, research and development. There are good sales opportunities for suppliers of pre-products and equipment.

The demand for functional textiles is increasing in the sports, leisure and footwear industries. In other sectors, such as the automotive and medical industries, building materials and agricultural aids, these are also increasingly being used. Functional textiles are usually not recognizable as Taiwan products. Nevertheless, some of them are very visible.

For example, at least 15 out of 32 teams at the 2018 FIFA World Cup wore clothing made with textiles of Taiwanese origin for internationally renowned brand names, according to the Taiwan Industrial Development Bureau (IDB). According to the Taiwan Footwear Manufacturers Association, Taiwanese manufacturers are responsible for approximately 80 percent of all sports shoes produced worldwide.

Textile manufacturers invest
Far Eastern New Century (FENC) is one of the largest textile manufacturers on the island. Its production capacity is nowadays mainly located abroad with productions in China, Japan, the USA and Vietnam. FENC is also expanding its capacity in Taiwan. Polyester spunbonded nonwovens have been produced for the Asian market in a joint venture with Freudenberg in Germany since 1987.

Freudenberg Far Eastern Spunweb has announced that it will set up a third production line for nonwovens at the Tayuan plant, thereby increasing the existing production of 20,000 tons by 11,000 tons per year. Construction of the new production facility, which is scheduled to start operations in 2020, has now begun. The latest automated production technology is to be used. According to the company, the investments amount will approximately be at USD 43 million.

Biggest companies in the textile industry in Taiwan by sales
(in USD million; change compared to previous year in %)

Company 2016 2017 Change
Far Eastern New Century Corp. 6,679 7,157 0.,9
Formosa Taffeta Co., Ltd. 1,233 1,337 2.2
Shinkong Synthetic Fiber Corporation 1,066 1,200 6.1
Eclat Textile Co., Ltd. 759 796 -1.2
Makalot Industrial Co., Ltd. 685 735 1.2
Tainan Spinning Co., Ltd. 602 692 8.3

Source: CommonWealth Magazine, Taiwan Stock Exchange

Germany remains an important equipment supplier
Taiwan's textile manufacturers import their equipment mainly from China, Japan and Germany, with some of the machines produced in China coming from companies with Japanese, German, Italian or Taiwanese parent companies. German deliveries declined by 13.7 percent to USD 71.1 compared to 2016 million in 2017. However, Taiwan's imports from Germany increased by 24.3 percent in the first six months of 2018, exceeding deliveries from Japan at USD 42.5 million.

The fact that the import of equipment remains at a high level has to do with the fact that companies in the textile industry in Taiwan are modernizing existing plants and converting them to Industry 4.0. In addition, the number of textile manufacturers in Taiwan has increased in recent years. According to statistics from the Taiwan Federation of Textiles, the number of companies rose from 3,143 to 3,214 between 2014 and 2017.

Main suppliers of textile machinery *)
to Taiwan (USD million; change in % compared to previous year)

Supplying country 2016 2017 Change
China 108.7 111.0 2.1
Japan 97.2 97.2 0
Germany 82.5 71.1 -13.7
Italy 32.8 23.8 -27.3
Switzerland 13.6 14.1 3.6
USA 19.2 12.1 -37.2
Total 405.4 364.7 -10.0

*) HS-Codes 8444-8453; without 8450
Source: Customs Statistics, Ministry of Finance

Core functions remain in Taiwan
By contrast, the production value of the textile sector fell slightly. In local currency terms, it fell in 2017 compared with 2016 by 1.7 percent. Converted to US dollars, the production value of textiles was USD 9 billion, according to the statistics from the Ministry of Economic Affairs. The production of synthetic fibers stagnated at just under USD 3 billion in 2017.

Taiwan is home to the headquarters of the often family-run textile companies. Purchasing and marketing decisions are mainly made here, and, last but not least, research and development are carried out here too. For example, several manufacturers are currently developing smart textiles with integrated temperature control, heart and location functions.

Foreign activities are diversified
The textile manufacturers are investing predominantly in new capacities outside Taiwan. For example, FENC 2018 is expanding its capacity for PET (polyethylene terephthalate) and terephthalic acid (PTA), which among others are required for the production of synthetic fibers. Together with an Indonesian and a Mexican partner, FENC acquires two new plants of a bankrupt US company in West Virginia and Texas. Among other things, this reduces the risk of possible trade restrictions and, conversely, increases the opportunity to benefit from free trade agreements.

Vietnam is also a focus of investment. Here, most Taiwanese textile companies are in the process of establishing or expanding new capacities. FENC, Formosa Taffeta, Eclat, Makalot and several others invested in the southeast Asian tigerland several years ago. By contrast, new investments in China have become rare, primarily due to rising wage costs.

 

More information:
Taiwan
Source:

Jürgen Maurer, Germany Trade & Invest www.gtai.de

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY Photo: Pixabay
11.09.2018

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY

  • Clothing exports are declining 

New Delhi (GTAI) - Structural weaknesses and fiscal reforms are affecting the Indian textile industry. Modernization and diversification are necessary. For this where support measures will come into force.

  • Clothing exports are declining 

New Delhi (GTAI) - Structural weaknesses and fiscal reforms are affecting the Indian textile industry. Modernization and diversification are necessary. For this where support measures will come into force.

In the 2016/17 fiscal year (April 1st to March 31st), India's government initiated a number of fundamental reforms such as the introduction of the nationwide Goods and Services Tax (GST) and a partial currency devaluation. These measures are intended to advance the economy as a whole in the medium to long term, but have led to uncertainty and difficulties in individual sectors, including the textile industry. Added to this are high cotton prices. The government is now trying to help the industry with individual measures. It remains to be seen whether these will be sufficient and lead to a sustained improvement. Finally, there are structural weaknesses which are also slowing down the growth of the Industry.

"The by the introduction of GST caused dent and monetary depreciation has now been overcome. However, the structural problems remain, so that no fundamental changes in the textile industry are to be expected", according to the assessment of a German supplier with many years of experience in India in talks with Germany Trade & Invest (GTAI).

Government launches aid measures
However, some government measures should provide relief. At the beginning of August 2018, import duties on 328 textile products, especially fabrics and nonwovens, were increased from around 5 to 10 percent to up to 20 percent. Also, at the beginning of the month, the Executive Board introduced four bills to amend the general VAT Act introduced on July 1st 2017. This should make refunds, for example of taxes on intermediate products, easier and faster. The introduction of GST and the delays in reimbursement have put particular pressure on the liquidity of small and medium-sized companies, which make up the bulk of textile companies. For example, the denim industry temporarily had to take 25 to 30 percent of its capacity out of production after the tax introduction.

 Also, the Ministry of Textiles wants to strengthen the to it entrusted weakening industry. At the beginning of August 2018, for example, it added changes to the Technology Upgradation Funds Scheme (TUFS), which has been in existence since 1999. This now expanded technology promotion program allows cooperative banks to provide financing to textile companies for technological improvements. They also become accessible for liability partnerships. Of the approximately USD 1.1 billion, that the central government budget is holding for the textile industry in the fiscal year 2018/19, one third, 14 percent more than in the previous year, are intended for the TUFS. Manufacturers of synthetic fibers and the clothing industry in particular are likely to benefit from this, according to industry sources.

The existence of an own Ministry of Textiles shows how important this industry is for India, not only as a source of foreign exchange, but also as an employer. The entire sector, from spinning mills, weaving mills to clothing and other finished goods, contributed around 14 percent to value creation in the manufacturing industry and 13 percent to foreign exchange revenues in 2017, and employs directly 40 million and indirectly 60 million workers.

As one of the world's leading producers of cotton, jute and silk, India has comparative advantages in the textile sector and can look back on a long tradition in processing. Accordingly, cotton is the main raw material in yarn and fabric production. After all, 5.7 billion tons of yarn were spun in 2016/17, achieving an annual average increase of 3.1 percent between 2011 and 2017. The weaving mills processed 63.5 billion square meters of fabric in 2016/17, after 61.7 billion in 2011. The proportion of cotton fabrics rose from 51 to 61 percent in 2011 to 2017. The remaining part is accounted for approximately equally by synthetic and blended fabrics.

 
Production and export growth come to a halt Based on the previously strong growth the government is optimistic. According to forecasts by the Ministry of Textile, India's textile and clothing industry is expected to more than double its sales between 2015 and 2021. Exports are expected to increase from USD 35 billion to USD 82 billion, after doubling in the period from 2006 to 2014 from USD 17.6 billion to USD 37.6 billion. After that, however, they stagnated and, at USD 35 billion in 2017/18 and missed the by the government set target by USD 10 billion. The production of textiles and clothing declined from 2015 to 2017. It is unlikely to improve in 2018.

Textile and clothing industry in India 1)
  2015/16
 
2016/17 2)  2017/18 2)
Export of textiles and textiles products USD in USD billion 18.1 18.2 18.7
Export of clothing 17.0 17.4 16.7
Import of yarn, fabrics, made-ups in USD billion 1.7 1.5 n.a.
Change of production of textiles in % -0.2 -3.2 n.a.
Change of production of non-knitted clothing in % -3.6 -3.3 n.a.


1) Financial years from 1 April to 31 March; 2) Provisional data for 2016/17 and 2017/18
Source: Statistical Office India
     

Clothing industry needs to modernize 
India's textile industry has cost advantages over industrialized countries and advanced emerging countries such as China. Smaller developing countries, however, have become well-known competitors in the meantime and have partly surpassed India in terms of clothing. So Bangladesh and Vietnam exported more clothing than India. In addition there is growing competition from other low-wage countries such as Cambodia, Sri Lanka and Indonesia. Some of these countries have free trade agreements with the EU, while India has difficulties in negotiating them. The smaller competitors have also geared their clothing industry to exports and modernized it accordingly. After all, they do not have significant local markets. The Indian textile manufacturers are different: If there is not enough quality for export, the domestic market, which has a population of 1.3 billion inhabitants and is growing strongly, is still there, industry representatives explain to GTAI.

India's apparel industry therefore still has a considerable potential for modernization and requires new production technologies, particularly to improve operating efficiency. Other structural weaknesses include strong wage increases with insufficient productivity growth and a shortage of well-trained skilled workers. Other disadvantages are the fragmentation of the clothing industry - many companies lack size - and the lack of adaptation to global fashion trends. While the fashion world is more prone to fiber mixed fabrics, the Indian clothing is not yet following this trend. There is a lack of product diversification.

The spinning and weaving sector looks more modern. Industry experts attest to it a leading international position in terms of size, technology, productivity, quality and price. This is also evident when importing machines. India was the most important export market for German spinning machines to China in 2017 and the fifth largest market for weaving machines, according to the Textile Machinery Association of the German Engineering Federation (VDMA). In textile finishing machinery, India does not rank among the top six export markets, but its competitor Bangladesh does.

Double-digit growth in foreign direct Investment 
Foreign investments in the Indian textile industry are welcome and 100 percent foundations by foreign companies are welcome. On promotional trips to countries such as Japan, Germany, Italy and France, India is actively attracting investors and has not been unsuccessful. The inflow of foreign direct investment into the textile sector, including dyed and printed textiles, amounted to USD 2.7 billion between April 2000 and September 2017. Cumulative investments increased by an annual average of 17.3 percent between 2010 and 2017. However, the bulk of the investment is being stemmed by national Indians. Total investments in India's textile sector from June 2017 to May 2018 amounted to USD 4.2 Billion.

Contact Details
Name Internet Remark
Germany Trade & Invest http://www.gtai.de/indien Foreign information for the German Export Business
AHK Indien http://www.indien.ahk.de Contact for German companies
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Government 
Confederation of Indian Textile Industry http://www.citiindia.com Textile Association
Textile Association India http://www.textileassociationindia.org Textile Association India
The Clothing Manufacturers Association of India http://www.cmai.in Clothing Association


    

More information:
India Bangladesh(7621)
Source:

Rainer Jaensch, Germany Trade & Invest www.gtai.de

Textile innovations ‘made in Germany’ in demand in the USA (c) KameraStudio for Messe Frankfurt Exhibition GmbH
05.06.2018

Textile innovations ‘made in Germany’ in demand in the USA

‘High-Tex from Germany’ at Techtextil North America and Texprocess Americas shows again how innovative the German textile industry is.

Back to the USA: ‘High-Tex from Germany’ made a guest appearance at Techtextil North America and Texprocess Americas in Atlanta for the second time from 22 to 24 May 2018. At the special exhibition organised by the Federal Ministry of Economics and Energy (Bundesministerium für Wirtschaft und Energie – BMWi) in cooperation with the Association of the German Trade Fair Industry (Messeausschuss der Deutschen Wirtschaft e.V. – AUMA), a total of 66 companies presented technical textiles, nonwovens, textile-processing machines, smart textiles and textile-research projects to the trade visitors. The textile sector made its first appearance in the USA in 2000. This was followed by highly successful presentations in Shanghai in 2002, in Mumbai in 2007 and in Moscow in 2012.

‘High-Tex from Germany’ at Techtextil North America and Texprocess Americas shows again how innovative the German textile industry is.

Back to the USA: ‘High-Tex from Germany’ made a guest appearance at Techtextil North America and Texprocess Americas in Atlanta for the second time from 22 to 24 May 2018. At the special exhibition organised by the Federal Ministry of Economics and Energy (Bundesministerium für Wirtschaft und Energie – BMWi) in cooperation with the Association of the German Trade Fair Industry (Messeausschuss der Deutschen Wirtschaft e.V. – AUMA), a total of 66 companies presented technical textiles, nonwovens, textile-processing machines, smart textiles and textile-research projects to the trade visitors. The textile sector made its first appearance in the USA in 2000. This was followed by highly successful presentations in Shanghai in 2002, in Mumbai in 2007 and in Moscow in 2012.

“Taking ‘High-Tex from Germany’ to Atlanta again was a very good decision. The southeast of the USA has a long tradition of textile manufacturing. It is home to many companies that are always on the lookout for innovative textiles and machines for textile production and processing”, explained Detlev Rünger, German Consul General in Atlanta during the ‘High-Tex from Germany’ press conference. “Fairs bring people together. And this was evident here in Atlanta. With the overseas exhibition programme, we give small to medium-sized companies the chance to show their products in foreign markets”, said Patrick Specht of the Trade Fair Policy and EXPO Participations division of the BMWi.

“‘High-Tex from Germany’ within the framework of Techtextil North America and Texprocess Americas was a very good platform for our small to medium-sized companies. After Techtextil and Texprocess in Frankfurt, these two events are the second-most important editions of the trade-fair duo. ‘High-Tex from Germany’ came fully up to our expectations and anyone who failed to take part missed a great opportunity to be noticed”, said Marc Lorch, Member of the Board of Zwissler Holding, who represented the participating companies as exhibitor president.

Michael Metzler, Sales President of ZSK Stickmaschinen, confirmed this saying, “A German pavilion of this scope makes us extremely visible. Thanks to the excellent organisation, we were also able to concentrate on promoting our company and products.” In addition to the appealing exhibition-stand concept and the excellent organisation, the companies taking part were particularly pleased with the high visitor standard. “We regularly exhibit at Techtextil North America but taking part in ‘High-Tex for Germany’ resulted in our best ever day at a fair here. The pavilion is a real eye-catcher”, said Thomas Wiederer, Area Sales Manager, Brückner Textile Technologies. “The visitors to our exhibition stand were very interested in our products. We gained potential customers and were able to make numerous high-grade contacts. The level of interest shown in our highly innovative e-textile solutions, which are completely new in the sector, was very high. We are looking forward to the follow-up phase”, said Andreas Lanyi, Vice President Digital Unit and Internet of Things of the Hamburg-based start-up, Lunative Laboratories.

Besides gaining new customers, the focus of the companies taking part in ‘High-Tex from Germany’ was on cultivating customer relations. “The German pavilion in Atlanta once again gave us a good opportunity to get to know the US market better. We have had a factory in the vicinity of Atlanta for two years now and aim to expand our network in the long term”, said Ronny Schröder, Associate Sales Director Technical and Comfort Products, Sandler. “We like making presentations within the framework of the German pavilion very much”, added Georg Voggenreiter, Technical Sales, Maschinenfabrik Herbert Meyer. “Once again, ‘High-Tex from Germany’ was a good starting point for cultivating contacts with our customers in the USA.”

The companies taking part in ‘High-Tex from Germany’ made their presentations on around 1,300 square metres of exhibition space with their own exhibition stands, with selected exhibits on a central ‘Plaza’, in guided tours and no less than 35 lectures. Additionally, the German Institutes of Textile and Fibre Research (Deutsche Institute für Textil- und Faserforschung – DITF), the Association of the Finishing, Yarns, Woven Fabrics and Technical Textiles Industry (Industrieverband Veredlung, Garne, Gewebe und Technische Textilien – IVGT), the Tübingen-Reutlingen-Zollernalb location agency and the German American Chamber of Commerce of the Southern U.S. provided insights into current research projects and offered information about the sector.

ETHOPIA CAN SET UP FURTHER TEXTILE FACTORIES Photo: Pixabay
15.05.2018

ETHOPIA CAN SET UP FURTHER TEXTILE FACTORIES

  • Sudanese and Chinese investors want to secure raw material supplies

Nairobi (GTAI) - Ethiopia has further successes in attracting textile companies: One British company is planning to invest USD 100 million, one Chinese company even plans to invest USD 220 million. This means that the textile sector is increasingly becoming a self-starter, as donors increasingly want to supply domestic industry with pre-products. Meanwhile, those who invest should not only raise the financial means, but also the raw material cotton, according to market experts.

  • Sudanese and Chinese investors want to secure raw material supplies

Nairobi (GTAI) - Ethiopia has further successes in attracting textile companies: One British company is planning to invest USD 100 million, one Chinese company even plans to invest USD 220 million. This means that the textile sector is increasingly becoming a self-starter, as donors increasingly want to supply domestic industry with pre-products. Meanwhile, those who invest should not only raise the financial means, but also the raw material cotton, according to market experts.

The Ethiopian textile and clothing market has two new entrants: the British Intrade Co. UK Ltd. and the Chinese Wuxi No. 1 Cotton Investment Co. Ltd, Intrade intends to build a textile and clothing factory in the Mekelle Industrial Park (Tigray Regional State), which was opened in July 2017. Initial cost estimates are around USD 100 million. Intrade is an offshore company of the Sudanese Mahgoub-Sons Group. The company has reached an agreement with the Ethiopian Investment Commission to invest USD 200 million in three projects. The textile project is to be completed in 16 months.

Security of supply for cotton is becoming an issue
The Sudanese group is not only interested in textile production, but also with lucrative supply transactions for its own cotton. They have the capacity to supply 500,000 tons of long staple quality cotton annually, Wagdi Mirghani Mahgoub, Managing Director of Intrade says. The supply of raw cotton has become an increasing problem for the emerging Ethiopian textile industry since some Asian countries ordered export stops for the raw material, including the PR China and India. The African Plantation, which cultivates 33,000 hectares of agricultural land in Sudan, also belongs to the Mahgoub-Sons Group.

However, Wuxi No. 1 Cotton Investment has announced the second and larger textile investment of 2018: a textile factory will be opened shortly in the Dire Dawa Industrial Park. In a first phase, USD 80 million are planned, followed by further investments totaling USD 140 million. The company intends to install state-of-the-art textile machines to produce and supply goods for the demanding markets in Europe, Japan, South Korea and Southeast Asia. According to their own statements, partners are leading world machinery brands. Wuxi is already pursuing a project in the Ethiopian city of Adama and also has plans to grow cotton in Ethiopia.

Ethiopia is considered the first textile address in Africa
"Clothing companies are nomads," an industry consultant knows, "they go where it is cheapest for them. If wages and ancillary costs rise too much in countries like Bangladesh or the PR China, the caravan moves on." South of the Sahara, only Mauritius has made a name for itself as a producer of high-quality clothing. Attempts to establish larger-scale textile and clothing companies in Namibia and Lesotho have so far been unsuccessful. Meanwhile, Kenya and Ghana have production conditions that are far too expensive.

Ethiopia offers several advantages at the same time: Wages and ancillary costs are extremely low and far below those in China. The US Centre for Global Development found out that a worker in Ethiopian sweatshops earns an average of USD 909 a year. In Bangladesh, however, it is US$ 835 and in Tanzania and Kenya even US$ 1,776 and US$ 2,118 respectively. Another advantage: Ethiopian seamstresses are considered to be extremely hardworking and reliable. In addition, there is a tradition in textile and clothing production as well as in leather processing and thus there is a basic pool of trained specialists.

Infrastructure is making huge progress
Meanwhile, the supply of domestic cotton and leather needs to be expanded, because in the drought years 2016 and partly 2017 the supply of cotton was insufficient. The government is cooperating and is increasingly listening to the needs of producers. The infrastructure is currently undergoing sustained improvement, in particular the transport routes to the neighboring seaport of Djibouti, from where Europe can be reached more quickly than from the Far East. And, last but not least, the Ethiopian capital Addis Ababa has a capable air traffic hub with a dozen direct flights to the EU, including Frankfurt and Vienna. In addition, there is a modern air freight center.

Just as important as the delivery routes are the comparatively modern production conditions in the newly emerging industrial centers throughout the country. Everything here is "Made in China": fences, access controls, roads, electricity and water supply, waste and sewage disposal, workers' settlements. From a European perspective, this may look like Chinese dominance, but from an Ethiopian perspective it creates jobs, feeds families and earns foreign exchange. Under better working conditions than in Bangladesh, experts mean.

According to the ideas of the Ethiopian government, the country is undergoing a transformation process: away from an agrarian-based economy and towards an industrial state. By 2025, the country is expected to reach middle-income status and to become Africa's largest industrial production hub. To achieve this, Ethiopia is investing heavily in roads, railways and power generation, health and education, urban and rural development and the creation of industrial clusters.

Customs advantages in the USA and Europe
Ethiopia has so far benefited from the African Growth and Opportunity Act (AGOA) of the USA, which, for example, allows savings of 16.8 percent in import duties on cotton trousers and 30 percent on synthetic shirts. Ethiopia also has duty-free access to the EU market under the Everything but Arms initiative. Fears that US President Donald Trump might stop AGOA have not yet come true.

Ethiopian exports of textiles, clothing and leather products
(including footwear; in US$ millions)

SITC-Commodity Group
 2014 2015 2016
61 Leather and leather goods    97.51    98.20
78.63  
65 Yarn, fabrics, finished textile products and related articles  39.34  39.12 29.61
84 Clothing and apparel accessories  55.53  77.94  68.25
85 Shoes         
 33.88
 37.69  43.80
Total 226,26 252,95  220,2

Source: Comtrade

German exports can be expanded
German sales representatives of technology for the textile, clothing and leather industry are not yet well positioned in Ethiopia. According to preliminary figures from the Federal Statistical Office (SITC 724), only EUR 2.84 million of relevant technology where sent to Ethiopia in 2017, though 169 percent more than in the previous year.

Ethiopian imports of machinery, equipment and parts for the textile and leather industries
(SITC 724; in USD millions)

Supplying Country 2014    2015 2016
Total 131.30 170.51 111.10
.. PR China  43.87  42.40 62.07
..Italy 6.38 11.75 11.72
..Japan 4.40 10.11 6.89
..Turkey   4.86 19.14 4.92
..Other Asian countries, not specified 1.85 1.87 4.11
..India  6.07 6.49 3.06
..Germany 9.22 9.08 2.44

Source: Comtrade

 

Source:

Martin Böll, Nairobi (GTAI)

30.01.2018

TEXTILE AND CLOTHING MANUFACTURERS INVEST IN EGYPT

  • Chinese companies are planning several major projects
  • Germany is supplying more textile and clothing machinery

Several Egyptian and Chinese companies have announced some heavy manufacturing investments in textiles and clothing. The government is committed to creating new production priorities for textiles and wants to increase added value. Labor-intensive industries benefit from the low value of the Egyptian pound for their exports. For textile and clothing machinery, Germany achieved a delivery share of around 20 percent in 2016. In the Egyptian textile and clothing industry, the signs point to expansion and modernization. Local media reported on a series of investment plans by Chinese and Egyptian companies. According to the newspaper Al Gomhouria, a Chinese producer is planning the world's largest textile factory for USD 6 billion in the economic zone on the Suez Canal.

  • Chinese companies are planning several major projects
  • Germany is supplying more textile and clothing machinery

Several Egyptian and Chinese companies have announced some heavy manufacturing investments in textiles and clothing. The government is committed to creating new production priorities for textiles and wants to increase added value. Labor-intensive industries benefit from the low value of the Egyptian pound for their exports. For textile and clothing machinery, Germany achieved a delivery share of around 20 percent in 2016. In the Egyptian textile and clothing industry, the signs point to expansion and modernization. Local media reported on a series of investment plans by Chinese and Egyptian companies. According to the newspaper Al Gomhouria, a Chinese producer is planning the world's largest textile factory for USD 6 billion in the economic zone on the Suez Canal. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for USD 800 million. Sino-Egypt Minkai plans to build a textile industry complex for around USD 750 million. The local paper and stationery manufacturer Mintra plans to start the production of sports shoes with an initial investment of USD 50 million. Manufacturing in the 10th of Ramadan City is scheduled to begin in mid-2018, serving both the domestic and overseas markets. Egypt is still importing about 85 percent of the shoes sold in the country.
Oriental Weavers plans to purchase new production lines, machinery and equipment in 2018. For this purpose, EUR 6 million are to be invested. According to the newspaper Al Shorouk, the expansion will be financed by a bank loan.

State relies on new textile cities and more value added
The Egyptian state also wants to strengthen textile and clothing production. The Ministry of Investment and International Cooperation, the Supreme Council for Textile Industries and an unnamed Chinese partner want to set up a free zone for textile production in Minya. The ministry plans to provide part of the funding through international institutions and create specialized training programs for workers. According to media reports, the project value should be at USD 324 million.

In early 2017 the Egyptian Ministry of Industry announced that it would set up new textile production centers at a total of ten locations. In particular, spinning mills and weaving mills are in the spotlight. This perspective is shared by the Ministry of the Public Sector. It is aimed primarily at increasing value adding and therefore carried out a study in 2017.

Import demand for textile and clothing machinery is expected to increase
Egyptian textile and clothing companies often produce with a lot of manual work and partly outdated machines. On the one hand, the government is keen to ensure that as many jobs as possible are created for the approximately 800,000 young people who enter the market each year. On the other hand, a more automated and modern production of textiles and clothing would enable more complex products. These could be sold at a higher profit, but may also require less human labor.

An Indian company has secured a contract to modernize cotton processing. In compliance with a framework agreement with the Cotton and Textile Industries Holding, Bajaj Clothing automates cotton ginning systems. A total of eleven companies in different parts of the country will be equipped with the new machinery until August 2018. In late December 2017, Egypt Today announced that the government wants to modernize the spinning and weaving mills in Northern Egypt. The investment volume will amount to a total of one billion Euro over a period of five years.

The newly announced projects are expected to increase the demand of import machinery in the near future. Like other types of equipment, the vast majority of textile and clothing machinery will be imported into Egypt. Deliveries from Germany were able to improve both in absolute terms and relatively in 2016, despite an overall shrinking of the volume of imports. The German supply share jumped from 15.8 to 20.4 percent compared to 2015.

Import of textile and clothing machinery into Egypt (in USD  1,000)
HS Category 2015 thereof from Germany 2016 thereof from Germany
8444 1,135 0 4,481 2,025
8445 34,550 10,653 26,105 5,429
8446 18,902 984 23,591 13,346
8447 26,040 5,940 15,713 3,052
8448 23,39 5,158 20,574 3,365
8449 440 0 299 0
8451 34,796 3,335 36,512 2,334
8452 30,456 1,264 23,186 1,698
8453 3,087 5 3,678 137
Summe 173,145 27,339 154,139 31,386

Source: UN Comtrade

The consequences of the release of the Egyptian pound in November 2016 will mainly benefit labor-intensive industries and those that are processing mainly local raw materials. After October 2016, the value of the EURO soared from just under 9 to 21 Egyptian pounds and has stabilized at this level. According to various figures the textile and clothing companies in the country employs between 1.0 and 1.2 million workers. It is reported that state-owned enterprises are strongly represented in the textile sector, while the private sector plays a greater role in the clothing sector.

The advantage is dampened by the import requirements for cotton. In Egypt, especially soft and high-quality long-staple cotton is grown and exported. By contrast, domestic textile and clothing companies mainly use short-staple cotton from abroad as a raw material. Their import as become more expensive due to the currency developments. Nevertheless the competitiveness of Egypt's textile and clothing exporters has improved as a result of the new foreign exchange situation. Their exports should have developed better in 2017 than at the peak of the currency liquidity crisis in the previous year. At that time, exports fell by12.6 percent to around USD 1.7 billion.

Egyptian exports of textiles and clothing
(Selection, in USD millions, Change in %)
HS Category 2015 2016 Change 2016/2015
57 339.8 303.5 -10.7
60 2.0 35.7 1,685.0
61 483.6 388.0 -19.9
62 870.4 756.6 -13.1
63 262.2 227.2 -13.3
Summe 1,958.0 1,711.0 -12.6

Source: UN Comtrade

Increasing labor costs at Asian production sites, long transport routes and sometimes dissatisfaction with the product quality make some customers look for new sources of supply for textile and clothing products. According to a report by the news portal Middle East Eye, Egypt lies at least with USD 100 as a monthly salary for workers roughly equivalent on a level with India or Bangladesh and about half of Chinese salaries. In addition, the country at the Suez Canal is capable of fast deliveries to Europe and the United States. Regional competitors include Turkey and Tunisia. Egyptian manufacturers are not always recognizable as such, as they often manufacture for major international brands. Middle East Eye names Calvin Klein, Decathlon, Tommy Hilfiger and Zara as examples. In November 2017, Dice Sport and Casual Wear agreed to supply Levi Strauss & Co. with children's clothing.

Since 2017, Egypt became part of the Better Work Program of the International Labor Organization. The program includes 30 apparel factories in which the working conditions should be improved. Such confirmations could then give Egyptian products competitive advantages in export. However, to stand up to the tough international price warfare and at the same time to meet by the customers expected production standards will be a challenge.

Messe Frankfurt intensifies its textile-related involvement in Africa © Pixabay
31.10.2017

MESSE FRANKFURT INTENSIFIES ITS TEXTILE-RELATED INVOLVEMENT IN AFRICA

  • Morocco, Ethiopia and South Africa: Network comprises the most important textile regions in Africa
  • Emerging continent: positive forecasts in the textile sector

First Ethiopia, then South Africa and shortly Morocco: Messe Frankfurt is expanding its portfolio of textile trade fairs on the African continent. With its forthcoming cooperation with the two trade fairs Maroc in Mode and Maroc Sourcing, the global market leader for textile trade fairs is expanding its presence in North West Africa. ‘In future, our network will extend across important textile regions in Africa and encompass the leading trade fairs on the emerging continent’, explains Olaf Schmidt, Vice President Textiles & Textile Technologies at Messe Frankfurt. ‘With our commitment to Ethiopia, South Africa and, in future, Morocco, we have created excellent conditions to support the positive developments in Africa's textile industry’.

  • Morocco, Ethiopia and South Africa: Network comprises the most important textile regions in Africa
  • Emerging continent: positive forecasts in the textile sector

First Ethiopia, then South Africa and shortly Morocco: Messe Frankfurt is expanding its portfolio of textile trade fairs on the African continent. With its forthcoming cooperation with the two trade fairs Maroc in Mode and Maroc Sourcing, the global market leader for textile trade fairs is expanding its presence in North West Africa. ‘In future, our network will extend across important textile regions in Africa and encompass the leading trade fairs on the emerging continent’, explains Olaf Schmidt, Vice President Textiles & Textile Technologies at Messe Frankfurt. ‘With our commitment to Ethiopia, South Africa and, in future, Morocco, we have created excellent conditions to support the positive developments in Africa's textile industry’. Demographic change, increasing urbanisation and shifts in economic forces - these global developments are promoting the growth of the African economy and having a significant impact on the textile industry.

According to the UN Economic Report on Africa 2017, Africa has the fastest growing population. The current population of around 1.2 billion people will more than double by 2050. The number of working people on the African continent is also increasing rapidly. The largest working population (1.1 billion) in the world is predicted to be in Africa by 2034. These demographic changes are causing personal and business consumption to increase sharply, and this will primarily benefit regional economic markets. 

Morocco: Maroc in Mode & Maroc Sourcing

Morocco in particular offers great potential for the clothing trade: Morocco's proximity to important fashion markets such as the EU and the USA, various free trade agreements and a recent economic growth rate of four per cent (between 2010 and 2015, Nachrichten für den Außenhandel, NfA, 19 January 2017) create a secure business climate. The Maroc in Fashion and Maroc Sourcing trade fairs, which have been in existence since 2014, currently showcase around 120 exhibitors from Morocco, Tunisia, Egypt, Turkey, China and a number of Western European countries. The extensive product portfolio inspires with its strong expertise in fashion. The trade fairs are regarded as a hotspot for fast fashion and not only present fashion, denim, lingerie and knitwear, but also sports and casualwear, workwear and accessories. Messe Frankfurt will agree on a cooperation with AMITH (Association Marocaine des Industries du Textile et de l’Habillement), the organiser of the event, for the next edition. The trade fair will take place on 26-27 October 2017 at the Exhibition Park Hassan Circuit in Marrakesh. 

South Africa: Source Africa & ATF Expo

South Africa is the continent's strongest economic power and one of the largest consumer markets. The country has the most powerful retail sector and is the best networked of all African countries. This international networking and its regional free trade agreements make South Africa an important hub for trade with other African countries as well as neighbouring Pacific countries such as the Arabian Peninsula and India.

With the recently approved takeover of the Source Africa and ATF fairs, Messe Frankfurt is driving the exchange between international and regional buyers, manufacturers and suppliers in this region. Source Africa was founded in 2014 as a trade fair for African producers of fabrics, accessories, clothing, shoes and leather items. It appeals not only to African trade buyers but also to international manufacturers of clothing and fashion. The fifth edition of the fair will take place on 20-21 June 2018 at the International Convention Center (CTICC) in Cape Town. ATF Expo will open its doors at the same venue from  21 to 23 November 2017. Ever since 1998, this trade fair has offered an internationally-oriented product range of fabrics, clothing, shoes, leather goods and accessories as well as services for a predominantly local and regional purchasing community.

Ethiopia: successful start for Texworld, Apparel Sourcing and Texprocess

In eastern Africa, Ethiopia has developed into an attractive contract manufacturing country for clothing and leather goods thanks to the government's strategy of focusing on light industry. Ethiopia also benefits from free trade agreements such as AGOA that are aimed at promoting the African economy. With the Africa Sourcing and Fashion Week (ASFW), Messe Frankfurt has had a strong partner at its side ever since the latest edition in October 2017. Offshoots of the three trade fair brands Texworld, Apparel Sourcing and Texprocess were integrated into the Africa Sourcing & Fashion Week for the first time. It is a sourcing platform for mainly European and US fashion companies. The seventh edition brought together around 200 international exhibitors from 25 countries in Addis Ababa's Millennium Hall. Clothing fabrics, contract manufacturing, fashion and accessories were exhibited as well as machinery for contract manufacturing, CAD/CAM systems, printers, printing inks and accessories. In addition, the trade fair also impressed visitors with a fashion show, a series of lectures, a trend section and a matchmaking platform.

Messe Frankfurt: A strong presence in global textile markets

With a portfolio of over 50 international textile trade fairs, Messe Frankfurt is the global market leader in trade fairs for the textile industry. In 2016, around 19,500 exhibitors and approx. 477,000 visitors came to the events in Europe, North America and Asia. With the name Texpertise Network, the textile event offer of Messe Frankfurt covers the entire value creation chain – from apparel fabrics and fashion to home and contract textiles, technical textiles and the processing and care of textiles. The trade fairs include the successful brands Texworld, Apparel Sourcing, Ethical Fashion Show, Greenshowroom, Intertextile, Yarn Expo, Leatherworld, Emitex, Avantex, Avanprint, Heimtextil, Intertextile Home Textiles, Interior Lifestyle, Home Textiles Sourcing, Techtextil, Texprocess, Simatex, Confemaq and Texcare.

Maroc in Mode & Maroc Sourcing: www.marocsourcing.ma
Source Africa & AFT: www.sourceafrica.co.za / www.atfexpo.co.za
Africa Sourcing & Fashion Week: www.asfw-online.com

Pakistan invites to the 10th Expo © EXPO Pakistan
17.10.2017

PAKISTAN INVITES TO THE 10TH EXPO

  • Fair as an opportunity for cooperation
  • Investment climate is improving

Bonn (GTAI) - With a population of almost 200 million, a high proportion of young people and a growing middle class, Pakistan offers good prospects. In particular, the China Pakistan Economic Corridor has the potential to trigger a new growth spurt and attract foreign investment. The 10th Expo Pakistan, which takes place in Karachi from November 9th -12th 2017, provides an opportunity to initiate business with Pakistani partners.

Largest trade fair

  • Fair as an opportunity for cooperation
  • Investment climate is improving

Bonn (GTAI) - With a population of almost 200 million, a high proportion of young people and a growing middle class, Pakistan offers good prospects. In particular, the China Pakistan Economic Corridor has the potential to trigger a new growth spurt and attract foreign investment. The 10th Expo Pakistan, which takes place in Karachi from November 9th -12th 2017, provides an opportunity to initiate business with Pakistani partners.

Largest trade fair

EXPO Pakistan is the largest trade fair in the country and offers the most comprehensive presentation of the country's export economy and service sector. In addition to local companies, numerous exhibitors from the neighboring countries also present their products to international visitors. Among others goods from sectors leather, textiles and clothing, sporting goods, automotive and automotive parts, pharmaceutical products, machinery and services in the field of information technology, logistics and health will be exhibited.

The four-day EXPO Pakistan, which has been held every two years since 1997, is directed exclusively to foreign buyers during the first three days. B2B meetings between suppliers and buyers will be arranged by the Trade Development Authority of Pakistan (TDAP). According to the Pakistani Trade Promotion Agency at the last trade fair in 2015 business contracts worth of approximately USD 1.2 billion were generated. In addition more than 70 declarations of intent were signed. The framework program for the trade fair participants included, among other things, company visits and fashion shows. Within the framework of EXPO 2015, 571 Pakistani manufacturers and exporters exhibited their products and services. According to the organizers a total of 750 foreign buyers and importers from 77 countries visited the fair.

Prospects for the economic development remain positive.

In the recent years the Republic has recorded an annual economic growth of around 4 percent. According to the forecasts of the International Monetary Fund, the gross domestic product (real) will reach 5 percent in 2017 and will increase an average growth of 5.5 per cent by 2020. Growth drivers are above all the increasing privat consumption as well as high investments in the transport infrastructure and the energy sector. As uncertainty factors remain the domestic policy conditions before the parliamentary elections in the second half of 2018 as well as the macroeconomic stability. The analysts of the Economist Intelligence Unit (EIU) expect an average current account deficit of 4.4 percent of the GDP from 2017 to 2021.

The course of the Karachi Stock Exchange (KSE 100) has steadily improved to more than three times since 2012. The index provider Morgan Stanley Capital International (MSCI) has once again raised Pakistan from a "frontier market" to an "emerging market" in May 2017. The financial crisis in 2008 led to a temporary closure of the stock exchange due to a liquidity bottlenecks and thus to the exclusion from the MSCI EM Index. An improved market classification was followed by a strong course correction. The in July published trade deficit of USD 27.5 billion, as well as the rising government debt contributed to a 20% drop in the courses by mid-September.

A major contributor to Pakistan's current high debt is not least the high investment in the mega project China Pakistan Economic Corridor (CPEC). The corridor is a collection of various infrastructure projects with a current value of around USD 62 billion, which has been realized throughout the country since 2013. They are part of the Chinese Megaproject "Belt and Road" with investments in the sectors energy, transport and special economic zones. The Republic finances many projects primarily through borrowing. The impact on the country is assessed. The through the corridor improved location attractiveness of the country is expected to promote the domestic economy, reduce the trade deficit and relieve the state budget.

Economic structure and trade

The Pakistani economy is the second largest in South Asia after the neighbor India. The gross domestic product rose from around USD 35 billion in the early 1980s to just under USD 283 billion. Above all the transformation from an agricultural to a service state has promoted this positive development. The service sector accounts for about 59 percent of the GDP. Central segments are trading, transport, storage and communication. The industrial sector however with a share of 20 percent is still upgradeable. The clothing, leather and textile sector has the most important share of the industry and represents the largest export sector with 67 per cent.

Germany was the fourth largest customer of Pakistani goods with USD 1.7 billion in 2016. Textiles and clothing as well as leather and leather goods had a share of about 87 percent. In the same year, German companies however exported goods worth USD 1.2 billion. Machines 33 percent, chemical products 18 percent and electrical equipment 7 percent formed the main export goods.

Improvement of the energy supply

The establishment and management of a factory for foreign companies in Pakistan are still proving difficult. According to the Doing Business Report 2017 the World Bank Pakistan ranks 144th out of 190 countries. Corruption, protection of intellectual property rights, protracted legal enforcement and poor power supply are among the greatest obstacles. A positive change in the power supply situation or the overall infrastructure should become achieved by the CPEC.

The Trade Department of the Pakistani Embassy is available for further questions and information during the 10th EXPO Pakistan.

Contact:

Embassy of the Islamic Republic of Pakistan
Commercial department
Schaperstrasse 29
10719 Berlin, Germany
T +49 (30) 212 442 02
cc@pakemb.de, tdo@pakemb.de

26.09.2017

TAIWAN'S TEXTILES AND CLOTHING ARE EXPECTING HIGHER DEMAND

  • Production and Exports on a recreation Course
  • Investments in Capacity and Modernization

Taipei (GTAI) - Taiwanese textile and clothing manufacturers see improved sales prospects in 2017 and 2018, following a weak development in the previous year. With its range of functional textiles in particular, the country occupies a position of great importance throughout the world. In order to maintain competitiveness, the sector companies invest in new equipment and product innovations. One of the most important machine suppliers is, among others, Germany in third place behind China and Japan.

  • Production and Exports on a recreation Course
  • Investments in Capacity and Modernization

Taipei (GTAI) - Taiwanese textile and clothing manufacturers see improved sales prospects in 2017 and 2018, following a weak development in the previous year. With its range of functional textiles in particular, the country occupies a position of great importance throughout the world. In order to maintain competitiveness, the sector companies invest in new equipment and product innovations. One of the most important machine suppliers is, among others, Germany in third place behind China and Japan.

Taiwan's textile industry is looking more optimistically on business performance in the current year as well as for 2018. This is attributable to the high level of consumer spending in the most important sales markets, price increases and major international sports events such as the FIFA World Cup and the Winter Olympics in South Korea. The island is the world's leading supplier of functional textiles used in sports and outdoor clothing.

According to the Taiwan Textile Research Institute, this textile sector accounts for about 50 percent of the world's production value of functional textiles. In order to maintain this position, the manufacturers are investing in capacity expansion, new technologies and the development of innovative textiles, while focusing on the diversification at production sites.

Production is recovering

Despite shrinking production development, the number of companies in the textile and clothing industry has risen over the last few years and, according to the Taiwan Textile Federation, at the end of 2016 to 4,361 companies. Of these, 3,205 (2015: 3,163) belonged to the textile segment and 1,156 (2015: 1,144) to the garment sector. The number of employees however is declining, as companies invest in automation.

According to the Ministry of Economic Affairs the production value of the sector fell by 5.9 per cent in 2016 over 2015. The development in the first half of 2017 however indicated that the weakness phase is declining. In particular textile production, which represents the most important area, showed signs of recovery. Here a more efficient utilization in the second half of the year was expected, as inventories are declining and orders are rising.

On the other hand the production of clothing and accessories and the production of synthetic fibers and yarns have shown a further shrinking trend in the recent years. Most of the industrial companies have moved their production towards abroad. At the end of the first half of 2017 the clothing segment accounted for only 4.9 percent of the total apparel segment.

Production (in NT$ billion; change compared to the previous year in %)
  2015 2016 Change 1st half 2017 Change
Fibers and yarns 102.6 91.0 -11.4 45.4 -3.1
Textiles 284.7 272.4 -6.2 131.5 -1.3
Clothing  21.9 21.8 -0.2 9.1 -4.7
Total 409.3 385.2 -5.9 186.1 -1.9
Source: Ministry of Economic Affairs, 2017

Rising foreign trade expected

Export development also offers a better outlook. According to figures for the first six months of 2017 the export value of the textile and clothing sector shrank by only 0.3 per cent. For the full year 2016 the Taiwan Textile Federation statistics show a decline of 8.3% to USD 9.9 billion. The exports of textiles reached a value of USD 6.7 billion.

Exports of textiles and clothing are three times higher than imports. While exports are dominated by textile products with a share of 68%, imports of clothing accounts for 55%. Imports of textiles in 2016 were worth only about USD 427 Million.

Foreign trade in textiles and clothing
(in USD million; change compared to the previous year in %)
  2015 2016 Change 1st half 2017 Change
Import 3,458 3,308 1.0 1,566 0.2
Export 10,804 9,904 -8.3 4,968 -0.3
Source: Taiwan Textile Federation, 2017

Investment activities are growing

According to the reports of at the stock market listed companies, it looks good on the orders received from existing as well as from new customers. As a result, the capacities are expanded, as at the Far Eastern New Century. The company is looking above all at Vietnam, where USD 760 million will be invested in the expansion of a supply chain for textiles and clothing over the next three years.

Other manufacturers such as Eclat and Makalot are also expanding their activities in Vietnam. It also will be invested in Taiwan, where, for example, Eclat Textile wants to spend between USD 26 million and USD 33 million to build new facilities for digital textile products. Makalot Industrial has announced plans to create smart production lines in Vietnam and Taiwan to increase efficiency.

With Shinkong Synthetic Fibers, another large textile producer on the island, wants to expand production. The company plans to increase the production of artificial fibers during 2018 from 50,000 tons to 110,000 tons. This is to serve orders from European and Japanese customers from the automotive sector.

Finishing equipment imports show little dynamics

The investment activities and plans of the textile and clothing manufacturers are expected to lead to increasing finishing equipment imports and exports. However, imports of textile machinery show an overall decline in the first six months of 2017. Only China and Japan, the most important suppliers, were able to boast high growth rates. Germany, the third largest supplier, was much less successful.

Main supplier countries of textile machinery
(in USD millions, change compared to the previous year in %) *)
  2015 2016 Change 1.st Half 2017 Change
Total 383.8 405.4 5.6 190.0 -2.5
PR China 93.6 108.7 16.1 65.5 28.8
Japan 107.3 97.2 -9.4 46.9 20.7
Germany 78.3 82.5 5.4 34.2 -28.4
Italy 20.4 32.8 60.5 11.0 -38.0
USA 11.9 19.2 61.2 5.9 10.5
*) HS-Pos. 8444-8453, ohne 8450; Source: Customs Statistics, Ministry of Finance, 2017

In the first six months of 2017, textile machine exports rose by 7.5 percent to USD 543 million. It is mainly supplied to the overseas production plants in China and Vietnam, to where in this period about USD 111 million was exported. At the third place follow the USA with USD 40 million.

More information:
Asien textile industry
Source:

Jürgen Maurer, Germany Trade & Invest www.gtai.de

08.08.2017

INDIA'S TEXTILE AND CLOTHING INDUSTRY STRONGLY SUPPORTED

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

The Indian textile and clothing industry is of an overall economic importance. It accounts for 14% of the total industrial production and employs directly 51 million people. Additional further 68 million people in households and micro enterprises are working for the industrial companies. Because the national economy as a whole needs to create about 12 million additional jobs per year, the government has chosen the textile industry as an employment motor. India, in contrast to the textile giant PRC, has high advantages with its labor cost.

 
The availability of natural materials such as cotton, jute and silk is a further advantage of the textile industry, which can look back on a long tradition of processing. India is now the world's largest producer of cotton. In the cultivation year 2016/17 year (4.1 - 31.3) estimated 5.9 million tons are expected to be harvested.

The cotton will be processed into yarns and fabrics. For the production of yarns, 61 million spindles (measured in spindle equivalents) are available. In 2015/16, they spun about 5.7 million t of yarn, of which 4.1 million t are made out of cotton fibers. The production of cotton cloths was about 38 billion sqm., mainly produced in decentralized weaving mills with simple mechanical looms. The global trend in clothing, however, goes to artificial fibers. In order to protect their domestic production the Ministry of Finance levies tariffs.

Textile industry with its own ministry and many promotional programs 
The Ministry of Textiles subsidizes the sector through several programs, which support the technical modernization, the construction of industrial parks, qualification, training and marketing. Garment factories may even be reimbursed for duties and fees paid. For this purpose the budget of the Ministry of Textiles was once again significantly increased in the financial year 2017/18.

The textile and clothing industry does not only want to score on the domestic market, it also wants to play a bigger international role. In a five-year plan, the Ministry of Textiles had targeted an expansion of exports to USD 64 billion by 2016/17. This target has not yet been achieved, in 215/16 the exports of textiles and clothing amounted to USD 37.6 billion. The exports of textiles even shrank against the year before. 

Textile and clothing industry in India (financial years from April to March) 
  2014/15 2015/16
Export of textiles in USD Billion  21.7 20.6
Imports of textiles in USD Billion 5.5 5.4
Export of clothing in USD Billion 16.8 17.0
Imports of clothing in USD Billion 0.5 0.6
Change in the production of textiles (in %) 3.7 2.2
Change in the production of clothing (in %) 0.2 14.7

Sources: Ministry of Textiles, Ministry of Statistics and Programme Implementation

The local garment industry has good chances of development on a large and growing domestic market. According to industry estimates the retail sector sold clothing worth approximately USD 45 billion in 2016. Experts say the world's fifth-largest market is expected to grow well above 10% in the medium term. The backlog of the 1.3 billion inhabitants is not yet covered. The trade imports international branded goods mainly from China and Bangladesh. Standard articles and custom-made products are sewn by the local industry.

Garment sector with opportunities and problems 
Cheap wages are a location advantage. They vary however very different within the subcontinent. The statutory minimum wage regulations differ between the 29 federal states. In addition the person's age, the company membership and abilities are used to calculate the minimum wage.

Due to the increasing production costs in China, labor-intensive manufacturing is moving to more favorable locations. Not only labor costs play a major role here. The complex labor law strongly restricts the efficiency of labor markets in India. Investors consider the labor law, logistics and the structure of supply chains as to be difficult. The World Bank found in its study "Stitches to Riches" in 2016 (see https://www.openknowledge.worldbank.org/handle/10986) that Bangladesh, Indonesia, Cambodia and Vietnam, surpass the competitor India in the points quality, delivery times, reliability and sustainable social responsibility.

India is also missing free trade agreements (FTAs) which facilitate access to international markets and regulate them reliably. The European Union and India have been negotiating as an example a comprehensive FTA for over 10 years with longer interruptions.

Fragmented sector structure with international Champions 
Information on the number of companies, their size classes and investment volumes are not available. Smaller textile companies and retailers are partially not registered and do not pay taxes. Medium-sized companies are very flexible, but they need to   mechanize, automate and upgrade technically in order to survive.
Larger companies look back on their long-standing tradition and have developed into internationally networked corporations. According to the Indian financial service Moneycontrol, the three largest corporations in the clothing industry are: KPR Mills (last net sales circa USD 300 million), Page Industries (USD 270 million) and Gokaldas Exports (USD 170 million); In the textile sector in general: Bombay Rayon (some USD 640 million), Sutlej Textiles (USD 350 million), SEL Manufacturing (USD  300 million), Mandhana Industries (USD 250 million); in the knitting sector: Nahar Industrial Enterprises (USD 270 million), Rupa (USD 160 million); Cotton spinning: Vardhman Textiles (USD 860 million), Trident (USD 560 million), Indo Count (USD 310 million); Spinning of synthetic fibers: RSWM (USD 450 million), Indorama (USD 390 million), Sangam (USD 230 million); Weaving and other processes: Alok Industries (USD 1.8 billion), Welspun (USD x750 million), Garden Silk (USD 370 million); Other areas: Arvind (USD 830 million), Nahar Spinning (USD 310 million), JBF Industries (USD 550 million), Bombay Dyeing (USD 280 million).

Foreign textile companies invest and explore
The government is promoting the "Make in India" campaign in the textile sector for foreign direct investments. Company foundations are for 100% in foreign hands (see http://www.makeinindia.com/sector/textiles-and-garments). The sector attracted USD 2.4 billion from 2000 to 2016 in FDI.

Foreign companies can explore the markets at various trade fairs. The textile ministry wants to expand the “Textiles India”, which took place in Gandhinagar (Gujarat) in June 2017, to a mega-event (https://www.textilesindia2017.com). The international garment industry also met at the same time at the „India International Garment Fair" (http://www.indiaapparelfair.com).

The "National Garment Fair" will take place from July 10th to 12th in Mumbai (http://cmai.fingoh.com/event/65th-national-garment-fair-1/Registration). And Messe Frankfurt is organizing "Techtextil India" from September 13th to 15th in Mumbai. Here German exhibitors can participate in a community stand (http://www.auma.de/de/messedatenbank/seiten/moesetailseite.aspx?tf=135499).

Internet addresses
Name Internet address Remarks
Germany Trade & Invest http://www.gtai.de/Indien Foreign trade information for the German export economy
AHK Indien http://www.indien.ahk.de Starting point for German companies 
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Authority
Confederation of Indian Textile Industry http://www.citiindia.com Textile confederation
Textile Association India http://www.textileassociationindia.org Textile industry association
The Clothing Manufacturers of India http://www.cmai.in Clothing industry association

 

Source:

Thomas Hundt, Germany Trade & Invest www.gtai.de

Israel's textile industry is catching up again © Rosel Eckstein / pixelio.de
25.07.2017

ISRAEL'S TEXTILE INDUSTRY IS CATCHING UP AGAIN

  • Production stabilizes at lower level
  • Import of textile machines increased

Jerusalem (GTAI) - The Israeli textile and clothing industry has largely stabilized after years of decline. This applies both to the added value of the sector and to exports. Thanks to new capacities, the textile sector was able in 2106 to record a significant increase in production. In the import of textile machinery Germany plays the leading role. On the other hand, the German import market share of imports of textile and clothing products is low..

  • Production stabilizes at lower level
  • Import of textile machines increased

Jerusalem (GTAI) - The Israeli textile and clothing industry has largely stabilized after years of decline. This applies both to the added value of the sector and to exports. Thanks to new capacities, the textile sector was able in 2106 to record a significant increase in production. In the import of textile machinery Germany plays the leading role. On the other hand, the German import market share of imports of textile and clothing products is low..

For a long time, Israel's textile and clothing industry was a serious problem sector of the manufacturing industry. But now it seems to catch up itself again. This is confirmed by the production statistics. In a crisis phase between 2007 and 2013, the added value by the textile and clothing industry had declined by a total of 25.7%. While the shrinking of the clothing sector was 21.4%, the textile industry fell by 31.2%. The reasons for this development were the increasing competition from low-cost imports on the domestic market and declining exports. Since 2013, however, the figures have stabilized and are pointing upwards.

Development of the Israeli textile and clothing industry 2006 to 2016 (selected years)
Year Index of added value textile and clothing (2011 = 100,0) Index of added value textile Index of added value clothing Exports of textiles and clothing*), Mio. US$ Imports of textile and clothing*), Mio. US$
2006 128.8 130.8 128.2 1,243 1,561
2011 100.0 100.0 100.0 1,011 2,256
2012 956 918 986 952 2,241
2013 910 840 964 920 2,365
2014 932 845 999 966 2,558
2015 928 849 987 930 2,420
2016 970 983 959 914 2,480

*) HS-section XI (spun textile fabrics and articles thereof)
Source: Monthly paper on foreign trade statistics, various editions, Central Statistical Office

Product range cleared up

The stabilization was achieved through a comprehensive clearing up process in the textile and clothing industry, in the course of which products and production processes, in which Israel was no longer internationally competitive, were discontinued or outsourced to cheaper locations. Thru rationalization processes the productivity was increased.  The added value of the textile and clothing industry in 2016 per employee reached 4.8% above the level of 2011. The cumulative increase in productivity in the textile sector was 3.5 and in the clothing sector 5.6%.
The adjustment of the product range led to a drop in exports and simultaneously to an increase in imports. The Israeli manufacturers are increasingly looking to raise their turnover in high-quality and less labor-intensive products, which also have opportunities on the world market.

According to the most recent available data, the export rate of the textile and clothing industry in 2014 was 50.1%. There was an extreme division in the clothing sector: while the manufacturers of clothing products other than underwear only accounted for 3.9% of their sales in the international business, almost the entire production of underwear was exported.
The main export position of the Israeli textile industry is covered by HS heading 56 (cotton, felt and nonwovens, special yarns, twine, cordage, ropes and cables). In 2016 these products accounted for 28.7% of the textile and clothing exports, followed by synthetic or artificial filaments with 14.3%, knitted products with 13.0% of the exports.

Production structure oft he textile and clothing industry 2014
Sector Turnover in Mio. US$ *) Export rate in %
Total (1+2) 1,834 50.1
1. Textile industry 1,014 52.7
Spinning, weaving, and finishing of textiles 557 57.0
Other textiles 457 47.5
Clothing industry 820 46.8
Clothing but underwear 425 3.9
Underwear 320 96.3

*) Conversion of official internal price data according to the yearly average exchange rate
Source: Central Office of Statistics

Following the successful stabilization, the Israeli industry is also daring to create new production capacities. In 2015 and 2016 two new factories were set up for the production of nonwovens and have started to operate. On the one hand, this became reflected in increased machinery investments by the textile sector, and secondly in the strong increase in the production of the textile industry in 2016 by 15.8%.

Germany leading supplier of textile machines

Parallel to the increase in production the import of textile machinery is increasing since 2014. In 2016, it reached USD 62.2 million, more than twice the low level of 2013. German textile machinery manufacturers were able to participate in this growth in a leading position..

Import of textile machinery 2010 to 2016 (million USD)
Year Import thereof: from Germany German import market share in %
2010 21.1 4.8 22.7
2011 35.3 13.3 37.7
2012 41.5 16.3 39.3
2013 29.2 7.4 25.3
2014 34.4 10.5 30.5
2015 58.4 31.5 53.9
2016 62.2 37.5 60.2

Source: UN Comtade Database

In 2016 the German import market share of textile machinery reached a hight of 60.2%, so the Federal Republic was by far the most important delivery country, followed by Italy and France.

Leading suppliers for textile machines 2016
Country Import, Mio. US$ Import market share in %
Germany 39.5 60.2
Italy 6.3 10.1
France 4.1 6.6
Switzerland 2.6 4.2
Belgium 2.3 3.7
China 2.2 3.6
USA 1.3 2.1
Spain 1.1 1.8

Source: UN Comtrade Database

The leading supplier in the import market for garments and textile products is P.R.China. In 2016 39.3% of the imports of the HS section XI (textile materials and articles thereof) accounted for China. Germany played with 1.6% (USD 39.1 mio) only a subordinate role. The main German delivery positions were clothing and clothing accessories (HS chapters 61 and 62) with 43.7%, followed by synthetic or artificial spun fibers (14.3%).

Contact addresses
Manufacturers Association of Israel Textile and Fashion Industries Association Ansprechpartnerin: Ms. Maya Herscovitz, Director of Association
Hamered St. 29, Tel Aviv 68125 Tel.: 00972 3/519 88 55, Fax- 519 87 05 E-Mail: maya@industry.org.il,, Internet:  http://www.industry.org.il.

More information:
Israel
Source:

Wladimir Struminski, Germany Trade & Invest  www.gtai.de