Textination Newsline

The recently concluded trade fair once again demonstrates: The PERFORMANCE DAYS concept works! At the 19th edition of the trade fair for functional fabrics and sport accessories, new top ratings were achieved in all areas.
Innovation is the specialty at PERFORMANCE DAYS. The functional fabric trade fair has a reputation for being the first to show the newest trends way ahead of the other trade fairs and industry gatherings. The fair offers several unique tools such as the Focus Topic, the PERFORMANCE FORUM with the PERFORMANCE TABLES and the PERFORMANCE WALL, the PERFORMANCE AWARDS, the comprehensive presentation and workshop program as well as the guided tours. What makes this fair so special? Not only the free admission to the fair, but all of the top quality programs are also free of charge! So much commitment to service and trend scouting pays off: The recent trade fair held on November 8-9th, 2017 at the MTC in Munich once again broke all previous records!

Visitor and Exhibitor plus
The halls of the MTC were filled to maximum capacity and recorded significantly more visitors than the previous fair last April and even more than the fair in November 2016. The number of trade visitors rose from 1868 in November 2016, to 2001 breaking the 2000 mark for the first time. This growth corresponds to a 7.1 percent increase. In comparison to the previous year, the number of exhibitors was also greater in autumn 2017, registering a 9.9 percent increase. A total of 177 exhibitors from 23 countries occupied all of the halls to capacity, confirming the decision to relocate to the halls of Messe München, which is scheduled for November 2018. Even now, shortly after opening the exhibitor registration period, demand is already higher than the number of available spaces.

The move to Riem
When the doors of PERFORMANCE DAYS open next year on November 28-29th, 2018, the trade fair will be celebrating not only its 10-year anniversary, but also the first edition of PERFORMANCE DAYS at the new location. In the future, one of the large halls on the exhibition grounds in Munich-Riem will be provided twice a year for functional fabrics. For the debut, it will be located in Hall C1, with easy access via the north-west entrance from the west parking garage.

All highlights also provided online
As usual, when the most recent exhibit comes to a successful close, a special service is made available to all those who did not have enough time: All the highlights and important information like the presentations (also as a podcast!), as well as all the fabrics at the Forum will be available directly at www.performancedays.com. Even more interesting for you: Samples of all featured PERFORMANCE FORUM fabrics can be ordered online, which means direct sourcing of materials is now possible from the comfort of your office.
A special highlight of the past exhibition was the Focus Topic "Thermal Technologies – From Fibre to Smart Textiles." The topic covered the entire spectrum of heat retention and generation in sports clothing, as well as the ECO PERFORMANCE AWARD. The award winner was Pontetorto for the development of the first fleece to be produced with a brushed inside and with particles and fibers that are biodegradable even in sea-water. This innovation was a joint development between Vaude and Lenzing. The workshop presented by Ana Kristiansson about the possibilities of founding a sportswear brand was also very well received.
Besides the familiar exhibitors like Invista, Cocona/37.5, Lenzing, Microban, 3M, bluesign, Burlington, Dyneema, Nilit, Outlast, Pertex, Polartec, Pontetorto, PrimaLoft, Schoeller, Singtex, Sympatex, Südwollle, Toray, and YKK; the Messe welcomed new exhibitors like Freudenberg Performance Materials, Clo Insulation, Flying Textile, Inuheat Group, ISKO ARQUAS, Manifattura Effe Pi, The Woolmark Company, and Tough Knitting Enterprise.

About PERFORMANCE DAYS
PERFORMANCE DAYS — The “functional fabric fair” launched in 2008, is the first and only event created especially for functional fabrics for sports and work clothing. The aim of the semiannual trade fair is to give leading and innovative textile manufacturers, suppliers and service providers the opportunity to present their functional fabrics, membranes plus treatments, laminates, paddings, fin-ishes, and accessories such as yarns, tapes, prints, buttons and zippers.
The industry experts who come to this fair – the sports fashion designers, product managers, and decision-makers (see online: Visitor List) represent almost every European active clothing and func-tional wear manufacturer – can find a complete selection of high quality materials available at just the right time in April/May and November. The dates are intentionally scheduled early thanks to our expertise in functional fabrics and are optimal for summer and winter sport collections. (All trade fair catalogs from past events are available online at Catalogs as well as a listing of current exhibitors at Exhibitor List).
 
The relaxed and focused workshop-like atmosphere at PERFORMANCE DAYS differentiates it from the other fairs which are often unmanageable and more stressful. That is one of the reasons why the Munich trade fair at the heart of the European sportswear industry has become one of the top addresses for new fabrics, innovations, and is the preferred meeting place to conduct business.
In the unique PERFORMANCE FORUM of PERFORMANCE DAYS, the visitor receives an inspiring and well-grounded overview of the new materials, trends, and innovations of the exhibitors. The PERFORMANCE AWARD and the ECO PERFORMANCE AWARD are also presented here. Qualified guest speakers present special topics and their collaborative ventures in guided tours, workshops and presentations to complete the range of information provided at PERFORMANCE DAYS within the Program (see after the fair online in the Presentation Library).
No entry fee and free admission to all events for industry visitors.

• Domestic production is attractively priced
• Foreign brands shift production tu Russia

Moscow (GTAI) - The Russian market for clothing and tex-tiles has recovered from the crisis. The Fashion Consulting Group expects a sales increase of up to 5 percent for 2017 and 2018. The production of clothing and textiles is also on the rise in the first half of 2017 by more than 6 percent. Low unit costs make sewing and weaving in Russia attractive and attract foreign brand manufacturers.

The Russian clothing and textile industry is again on a growth path. The market research agency Fashion Consulting Group expects a sales increase of up to 5 percent to Ruble 2,41 billion, (EUR 37.35 billion, exchange rate January 1st to August 31st 2017: 1 EUR = 64.518 rubles) for 2017 compared to the previous year. However, the business development in the first half of 2017 re-mained below expectations as the spring was short and the summer unusually cold. The most likely expectation therefore is a market growth of 2 to 3 percent.

However, with the crisis based Ruble devaluation the signs have changed. Imports become more expensive and domestic production becomes profitable. The unit labor costs in the Russian cloth-ing and textile industries have now become more competitive with those in China. This creates sales opportunities for manufacturers of automated production machinery and sewing machines.

Foreign garment manufacturers move production to Russia
First companies are already considering moving their production to Russia. For example the company Modny Continent, which is known for the brand In-City and is currently producing in China. Other wellknown
Russian labels like Sportmaster and Acoola, as well as foreign fashion brands such as Zara, Nike, Finnflare, Uniqlo and Decathlon are planning to launch their own productions in Russia. Some Russian companies are sewing under a foreign brand name and hide their origin.

Already one step further is Adventum Technologies. The to the Textime (Tekstajm) Group belonging company opened a new plant for the production of special clothing in the area of Tula for Rubles 650 million in March 2017. In Roslawl in the Smolensk region, the Roztech company is installing a plant for the manufacture of Dikaja Orchideja underwear for Rubles 100 million. PrimeTec (Prajmtek) has started the production of terry cloth in the area of Ivanovo for Rubles 670 million.

Source: Research of Germany Trade and Invest

Government pushes import substitution
The Ministry of Industry promotes domestic manufacturers of clothing and textiles with Rubles 145 billion as part of the strategy for the development of the light industry by 2025 and the anticreep plan. By the year 2020 the market share of Russian textiles should rise to 50 percent and 300,000 new jobs should be created. This will make Russia more independent from clothing and textile imports.

The government specifically supports individual textile segments. With regulation no 857 of August 27th 2016, it promotes the production of school uniforms in Russia. Also for research and development in the textile industry funding will be provided: for 2017 Rubles 3 billion are available, 2.2 billion from the anti-crisis plan.

However, the somewhat stabilizing Ruble threatens to cross the plan of the government, it cheapens the imports. In the first quarter of 2017 imports of textiles and footwear increased by 22.7 percent.

*) First half year 2017 compared to the same period of last year
Source: Federal Statistical Office Rosstat

Weak ruble makes manufacturing in Russia attractive
The ruble devaluation benefits the labor-intensive textile industry. Many Russian fashion brands, who have placed orders to foreign sewing companies, are trying to redirect them to Russia. The factories in the textile clusters of the areas Ivanovo, Leningrad, Tula, Tver, Vladimir, Perm and Vologda are ready for new settlements. Ac-cording to plans by the regional government, textile production should also be set up in Tatarstan. The proximity to polymer producers in the region should ensure the supply of chemical fibers for the manufacturing of work wear and uniforms.

Without an own production of wool, silk, flax and synthetic fibers the Russian textile industry can-not get on its feet. However - to date, not all textiles and basic materials can be obtained from domestic sources. This is why very fine fabrics come e.g. from Europe. Local producers are to re-place imports especially in polyviscose, worsted, polyamide and polyester.

In order to reduce the import dependency of polyester, a new combine for the production of poly-ester fibers is being developed in Witschuga in the Ivanovo region. ThyssenKrupp, Uhde-Inventa Fischer, Oerlikon Neumag and Czech Unistav Construction are building the new Ivanovsky Poly-efirni complex, which is scheduled to commence production in 2020.

Foreign textile imports could be replaced much faster by Russian goods and the growth rates would be much higher if the banks would provide affordable loans to local textile manufacturers to buy new equipments. But this does not happen according to the president of the Russian Union of Entrepreneurs of the Textile and Light Industry Andrej Razbrodin.

Investors are faced with various challenges in setting up textile productions in Russia: the produc-tion plants are mostly outdated, skilled workers are a shortage as well as sales partners. Only if the Russian government's development program for the garment and textile industry will be suc-cessfully implemented, these problems could be overcome.

• Projects planned for USD 2.3 billion by 2020
• Doubling of exports of finished products strived

Tashkent (GTAI) - The textiles and clothing industry of Uzbekistan remains one of the most important investment and cooperation sectors for foreign companies. A new expansion program for the period 2017 to 2020 provides for the implementation of 140 projects. The expected inflow of capital to the industry in a value of up to USD 2.3 billion is planned to account for about half of the foreign investment.

The textile and clothing industry should be expanded more than ever into an important export part of the central Asian republic. The specific activities for the targeted doubling of exports by 2020 versus 2016 are listed in the presidential regulation "On the program of measures for the further development of the textile, clothing and tricot industry 2017 to 2020" of December 21st 2016.

Full domestic processing of cotton fibers strived

With an annual output of 3.4 million tons of raw cotton and 1.1 million tons of cotton fibers, Uzbekistan is one of the world's six largest cotton producers. The production of 25,800 tons of cocoons is also considerable high (an average figure for 2012 to 2015). In the first half of 2016 55% of the produced cotton fibers were further locally processed. According to the program this rate should rise to 100% by 2020. It is also planned to reduce the amount of cotton yarn in textile exports in favor of more refined cotton products. Yarn now stands for 53% of the value of exported finished textile products.

The plan is to expand the production of finished textile products until 2020 by 120%, including 170% of yarn, 200% of finished tricot fabrics, 240% of finished yarn and clothing and 270% of hosiery. The share of finished goods in the textile and clothing industry is expected to increase from 47.0 to 65.5% and in export from 42.0 to 70.0%. The program also includes measures to adapt the Uzbek sector norms and standards   to the common international standard rules.

Supply and cooperation opportunities for 140 individually planned projects

Up to USD 2.3 billion shall be invested in 140 expansion and renewal projects by 2020, including complexes with a full value chain. Commercial banks or their investment companies which are providing loans for the co-financing of the projects may, depending on the project, acquire up to 100% of the capital stock of the new or modernized enterprises.

The main contact partner for the projects is the public shareholder company O'zbekyengilsanoat.  It owns 380 textile, clothing and tricot companies, as well as some silk processors, among of them many joint ventures. The company is comparable to a branch of the Ministry of Industry. It stands for a large part of the output and export of the Uzbek textile and clothing industry (estimation for 2016: about USD 1 billion).

Its tasks include the coordination and participation in investment projects. For example, all projects involving O'zbekyengilsanoat companies are subject to a technical review by the scientific and technical advice of the shareholder company. Import contracts for the needs of the projects are also subject to a review.   

Wide preferences for investors

Projects are flanked by several stimuli up to 1st January 2020. The state grants tariff preferences for the import of equipment, complements and spare parts, an exemption from the profit and wealth tax as well as from the duty to the central road fund. Export-oriented manufacturers of finished cotton-, blended-  and silk-fabrics-, finished clothing and tricots, head coverings, stockings and textile gallantry goods will be freed from the mandatory exchange of the foreign exchange in Uzbekistan Sum. Imports of raw materials, auxiliaries and materials can be promoted with customs clearance extension of up to 60 days.

The new central foreign trade company Ustextilexport has been founded to act as a service provider for the needs of all country-based industry players, including small businesses. This applies both to the exploitation of foreign markets, the supply of already established trading houses for textiles and clothing abroad with Uzbek products as well as to the participation in the procurement of technologies and materials for the domestic textile and clothing industry.

The current goals for the expansion of the textile and clothing industry are all rather too ambitious. Medium-term industry programs have already been launched in previous years. Despite some reached progress, the results have been rather sparse. The output and the effectiveness of the production remained far behind the targets. Already in 2012, 407,000 tons of cotton yarn, 350 million square meters of cotton fabrics and 273 million pieces of clothing should have been produced. The for 2012 targeted exports of USD 1.5 billion were also missed in 2016 (a good USD 1.0 billion).

The reasons for this are complex. Too little has been invested so far in the modernization of the existing enterprises. The companies complain about bottlenecks in the provisioning of working capital, in the supply of energy and, above all, in the exchange of foreign exchange for the procurement of imports (spare parts, auxiliary materials, etc.). Another obstacle is the over-regulation of import and export transactions.

Nevertheless, the industry remains a profitable business field for foreign companies. In addition, the signs are good for improving the business environment in the country. After the new President Shawkat Mirsijojew took office in December 2016, a positive mood goes through the country. First regulations for more entrepreneurial freedoms have already been adopted. A whole bunch of further measures is in sight.

1) In addition to the textile and clothing industry, the light industry comprises the sectors of cotton ginning and production of leather goods / shoes;
2) About two-thirds of the output is attributable to the textile and clothing sector;
3) Investments in the sectors cotton ginning, carpets and leather / leather products are less than 10% of the annually in the light industry invested capital.

Source: State Statistics Committee, Tashkent

Contacts
GAK O´zbekyengilsanoat (Staatliche Aktionärsgesellschaft O´zbekyengilsanoat)
ul. Bobura 45, 100100 Taschkent/Republik Usbekistan
Contact personIlchom Haydarov, Vorsitzender der GAK O´zbekengilsanoat; Schochruch Rachimow, manager investment department
Tel.: 00998 71/239 17 11, -253 93 54, -239 17 11, -253 93 58 (administration for investment projects), Fax: -253 93 58, -56 04 (department fir investment)
E-Mail: info@engilsanoat.uz, info@legprom.uz, Internet: http://www.engilsanoat.uz, http://www.legprom.uz

• New exhibition area at the Club
• Key topic "ActiveSlow": design and performance meet resource efficiency and recyclability

Enlarged surface area and strong support from exhibitors: excellent signs for Greenshowroom and the Ethical Fashion Show Berlin as they enter the busy preparation phase. 'The booking situation for both trade fairs is highly promising. We have a number of strong labels on board, including both global pioneers and up-and-coming newcomers from the eco fashion segment', says Olaf Schmidt, Vice President Textiles & Textile Technologies at Messe Frankfurt. From 17-19 January 2017, visitors can look forward to an inspiring product range and the largest exhibition surface area the trade fair duo has so far enjoyed on the site of the Berlin Postbahnhof.

Greenshowroom is all about highquality labels presenting contemporary styles. The highlights on the upper floor of the Postbahnhof include Ackermann Taschenmanufaktur with its timelessly elegant bags made from olive leaf-dyed cow leather and aged chamois tanned deer leather – designed and made at the company's own manufactory in Lüneburg. Living Blue, a premium label from northern Bangladesh, will present its new products once again. It creates superb accessories and fashionable pieces using local craftsmanship and home-grown organic indigo dye. New to the trade fairs is the Dutch-New  to Greenshowroom: Rhumnaa South African newcomer label Rhumnaa. The designers at Rhumnaa get their inspiration from the stories of South African artists and develop high-quality fashion lines.

The streetwear segment at the Ethical Fashion Show Berlin will also sparkle with numerous top players. With ShineConcept, Johanna Riplinger presents her second line in the casual segment. The new women's outerwear collection is based on the use of organic cotton that has been enhanced by pure vegetable dyes and is fairly produced in India. Langbrett from Berlin promises trendy clothing, art and zest for life for city residents who surf and is thus one of the major emerging labels at the Ethical Fashion Show Berlin. Remei presents its new Naturaline collection: shirts, sweaters, trousers and more made from sustainably produced organic cotton for the whole family. Lanius will present a collaboration with Kunert, a premium expert in hosiery. Their special focus is on colourful knit groups and new developments in the merino wool segment, namely Lanius ecowool. And the Danish label Amov will celebrate its début at the trade fair – stylish, minimalistic and long-lasting everyday favourites. In January, the Danish newcomers will unveil their third main collection, which has been developed by designer Winnie Wilki Fristrup. The Ethical Fashion Show is developing not only in terms of quality, but also space, and will be expanding its surface area: an additional exhibition area will be created in the Club at the Postbahnhof. The expansion of the surface area has been made possible by moving the fashion shows to the neighboring Energieforum.

Key topic "ActiveSlow"

Progressive design and performance in combination with resource efficiency and recyclability are the central themes of the winter season. In a showcase entitled "Active Wear +", Manufactum and ESMOD Berlin International University of Art for Fashion present a selection of prototypical functional clothing. Selected exhibitors from both trade fairs will also present design innovations that are characterised by their particular focus on resource efficiency, slowness and recyclability. More in-depth information will be provided at the panel discussion entitled: "Save the sea: the issue of textile shedding into water bodies".

Flatwoven or tapestry-woven carpets and textiles have been made by generations of weavers in all corners of the world. The technique lies at the heart of the history of textile weaving, but kilims and tapestries remain as relevant and important in the world of contemporary design and interiors as they have ever been.
 
For some people, the mention of a flatwoven rug instantly suggests an Anatolian kilim, for others it is a tightly woven Caucasian sumakh or a double-sided striped jajim, an Iranian eating cloth called a sofreh, a Navajo rug, a French Aubusson carpet or a Moroccan kilim. The visual language and identities of the flatweave are even more diverse than those of pile carpets.

To comprehend the relevance of flatwoven rugs in today's market, you only have to look at some of the previous winners of the Carpet Design Awards and the range of beautiful designs for contemporary flatweaves offered at Domotex and beyond. While flatweaves traditionally had a utilitarian purpose such as to decorate the home, to serve as various covers, as mule saddles or to wrap food, today they are a popular floorcovering choice the world over. The method with which they are woven lends itself to creating flat planes of colour and geometric patterns.
These traditional tribal designs perfectly suit our contemporary design sensibilities currently focused on the minimalist aesthetic. The pure blocks of colour, simple stripes or checks that flatweaves offer are ideal for modern interior spaces. In addition flatweaves are often offered at lower price points than pile carpets.

Over the last five years the design industry has been increasingly focused on the concept of craft, makers, handmade goods, and with designs that are easily recognised as handwoven. Flatweaves fit clearly into this trend. Their flat surfaces are a perfect way to show off excellent quality wool, accomplished weaving and brilliant colour, all of which can be the deciding factor when choosing a rug. There is something very open and honest about the design of a kilim, a characteristic much appreciated by design savvy buyers who are able to recognise the integral, genuine texture that the flatwoven surface offers.

Some examples of highly desirable and popular kilims on the market today include Hamburg-based Naziri's super chic Iranian kilims that have won numerous Carpet Design Awards, four of them over the last two years Their simple tribal patterns have a traditional soul but a contemporary perspective.

Werner Webber's Mazandaran kilims from Northwest Iran are eye-wateringly beautiful in design and intense in colour, akin to works of modern art. Other brands producing striking flatweave designs include Zollanvari, Edelgrund and Rug & Kilim, a New York-based brand whose Swedish folk art inspired flatweave Marta Stripe won Best Traditional Design at the CDA 2016.
 
Flatweaves have been well represented during the eleven years of the Carpet Design Awards and many have gone on to win a coveted prize, proof that they are an important element within the language of contemporary carpets. For the 2017 edition of the CDA, flatwoven rugs have been granted their own 'best of type' category. It is clear that it will be a popular and highly competitive part of the awards.

• Weak Ruble makes domestic Production profitable
• Government encourages Investments

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

Source: Rosstat 2016

Source: Rosstat 2016

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

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

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

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

• Special Economic Zone (SEZ) Ontustik becomes important Sector Center

Almaty (GTAI) - Although the Kazakhstan textile industry is far away from the production figures in earlier Soviet times, increases have been achieved in recent years. Against the general trend, imports of textile machinery have grown strongly in 2015. The lack of skilled workers and the small domestic market has a negative effect on the development of the sector. The Special Economic Zone (SEZ) Ontustik in Shymkent could become an important center of the light industry.

The textile, clothing and leather goods industry used to be one of the most important economic sectors in Kazakhstan. After the collapse of the Soviet Union, these three sectors, identified as light industry in the country, have however lost much of its importance. In 2015 they contributed only 1.2% of the total output of the manufacturing sector. Compared to 2008 (0.9%), the proportion rose at last slightly again.

Hand in hand with the devaluation the output of the industry, measured in USD, pointed significantly down. The overall output amounted to USD 320 million in 2015. In reality in 2014 (+ 4.0%) and in 2015 (+ 3.4%) a production growth could be achieved.  

¹⁾ Change at the respective annual exchange rate; ²⁾ real change in %
Source: Agency for Statistics, Astana

Investments in the light industry rise

Gross fixed investments in the light industry show an upward trend in recent years.  According to the Kazakhstan Statistics Agency the investments grew from 2012 to 2015 from USD 18.5 million to USD 45.6 million. A role hereby played the support of modernization projects by government subsidies. 

 *) Change at the respective annual exchange rate  
Source: Agency for Statistics, Astana

The recent increase in investments is reflected in imports of machinery and equipment for the sector. Against the general trend the import of textile machinery (HS positions 8444-8453, without 8450) increased nominally by 28.3% to USD 35.2 million in 2015. However, one reason for the strong growth are the weak prior years (2013: USD 40.3 million; 2014: USD 27.5 million) also. The imports however develop well above the level of 2010 and 2011 with average imports totaling nearly USD 16 million. Most important supplier of textile machinery is the PR of China. According to the Federal Statistical Office exports from Germany numbered to EUR 4.3 million in 2015, (2014: EUR 4.4 million).

The light industry suffers less from the economic crisis than other sectors

Currently the Kazakhstan economy is suffering from the slump in commodity prices and the consumers had to endure enormous losses in their purchasing power due to the devaluation. The light industry however is less affected by the negative economic situation. An advantage is the price increase of imported textiles and a gain in competitiveness due to the lower wages. Nevertheless - the sector is highly dependent on imports of both machinery and primary products.

According to the latest available information provided by the Bureau of Statistics, the average income in the textile industry in 2014 was 52,800 Tenge (T) per month, equivalent to a value of USD 294. Converted to the current exchange rate however, the amount - excluding wage increases - has shrunk to USD 150.

Hand in hand with the increased purchasing power Kazakhstan’s import of textile products had multiplied from 2006 to 2014 from USD 332 million to just under USD 2.1 billion. In 2015 the upward trend was halted. Imports broke nominally by 38.6% to USD 1.3 billion, they came down to a level of 91% of the market volume in 2014 and 2015.

¹⁾ HS tariff positions 50 - 67; ²⁾ nominal Change %
Sources: UN Comtrade, Customs Committee of the Republic of Kazakhstan, Eurasian Economic Commission

¹⁾ HS tariff positions 50 - 67; ²⁾ nominal Change %
Sources: UN Comtrade, Customs Committee of the Republic of Kazakhstan, Eurasian Economic Commission

The light industry offers potential for development

Preconditions for a greater development of the light industry are given in Kazakhstan, but weak points remain. According to information of Lyubov Chudowa, president of the association of the light industry enterprises, these include the great shortage of skilled labor. In addition there are the small size of Kazakhstan's local market and the great distances in the country.

On the other hand the steppe republic has a great potential in the livestock farming sector, that can provide resources like leather and wool. In addition there is the cultivation of cotton in the territory of South Kazakhstan. Though - on the global scale in these areas Kazakhstan is a small player only.
The processing of crude products is still weak. According to information provided by the regional administration of South Kazakhstan, 90% of the in the country produced cotton is being exported. At the same time the sector companies need to import most of their primary products.

SEZ Ontustik in Shymkent

The in 2005 in Shymkent (South Kazakhstan region) founded Special Economic Zone (SEZ) Ontustik, could become an important center of the light industry. Key aspect of the SEZ is presently the light and paper industry.

As in the other SEZs in Kazakhstan for the settled companies a variety of reductions in custom duties and taxes and simplifications for the employment of foreign workers applies. In addition there are tariffs for electricity, water and gas, which are 35% below the local level.

In the SEZ so far eight companies have started to operate, USD 144 million were invested in the buildings. According to the company which runs UK SEZ Ontustik, until 2020 twelve more companies are expected to come. With the establishment of the Eurasian Economic Union the interest of foreign companies in manufacturing settlements has increased. The management of the park aims to expand the profile of SEZ to other areas of the manufacturing sector, such as for example the pharmaceutical industry.      

Concentration process in light industry

From 2010 to 2014 the number of sector companies has declined from 565 to 455.  An overview of the most important companies is available on the website of the association of light industry enterprises.

Internet addresses
Special Economic Zone Ontustik
Internet: http://www.sez-ontustik.kz
Association of Light Industry Enterprises of the Republic of Kazakhstan
Internet: http://www.aplp.kz