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15.06.2021

Cabinet passes Draft on German Supply Chain Act

Passed on March 3, 2021, it will become effective as of Jan. 1, 2023 - the Supply Chain Act for companies with more than 3,000 employees. The draft law on corporate due diligence in supply chains - The Supply Chain Act - decided by the German Cabinet is expected to be finalized by the German Bundestag before the summer break.

With the fire at a textile factory in Pakistan in 2013, which claimed more than 250 victims, the topic of supply chain management and sustainable procurement received a great deal of publicity and was placed on the political agenda at various levels: companies can relocate their production abroad - but not their responsibility.

Passed on March 3, 2021, it will become effective as of Jan. 1, 2023 - the Supply Chain Act for companies with more than 3,000 employees. The draft law on corporate due diligence in supply chains - The Supply Chain Act - decided by the German Cabinet is expected to be finalized by the German Bundestag before the summer break.

With the fire at a textile factory in Pakistan in 2013, which claimed more than 250 victims, the topic of supply chain management and sustainable procurement received a great deal of publicity and was placed on the political agenda at various levels: companies can relocate their production abroad - but not their responsibility.

In recent years, a number of measures have been taken worldwide to improve the situation in global value chains. In particular, this involves compliance with human rights, social issues and environmental protection. However, the results are sobering: According to the BMZ (Federal Ministry for Economic Cooperation and Development), 25 million people are currently in forced labor, and 75 million boys and girls worldwide are affected by exploitative child labor.

But where does responsibility begin, and where does it end? The recently passed draft law on corporate due diligence in supply chains is a compromise decision by the ministries involved for development, labor and economy.

Experts from the accredited certification organization GUT Certification Company for Management Systems in Berlin have compiled key statements and estimations:

Which human rights do the due diligence obligations relate to?

  • Integrity of life and health
  • Freedom from slavery and forced labor
  • Protection of children and freedom from child labor
  • Freedom of association and the right of collective bargaining
  • Protection against torture
  • Fair working conditions (occupational health and safety, breaks)
  • Environmental obligations to protect human health

Circle of affected companies located in Germany and deadlines:

  • From 2023: Companies with more than 3,000 employees (over 600 companies in Germany)
  • From 2024: Companies with more than 1,000 employees (2,900 companies)

Obligations in the value chain
In addition to the affected companies' own business operations, responsibility initially extends only to their direct suppliers and service providers. Within the framework of risk management, adverse effects on human rights and environmental due diligence obligations are to be identified and documented in corresponding risk reports.

As long as there are no concrete indications of human rights violations, the monitoring of indirect suppliers is not the responsibility of the companies involved.

The documents are to be checked by the Federal Office for Economic Affairs and Export Control (BAFA). In the event of violations of the law, companies will initially face sanctions in the form of fines, however, in the event of serious violations, they may also be excluded from the granting of public contracts.

Overall, the "Act on Corporate Due Diligence in Supply Chains" does not provide for a duty to succeed or a guarantee liability, but primarily requires the companies involved to take measures within the framework of an "obligation of efforts".

The law does not provide for civil liability for any human rights violations in the supply chain. However, in the event of violations of human and labor rights, foreign employees are to be given the opportunity to be represented by trade unions and before German courts.

What does a company need to do in its own business unit and with its direct supplier?
Companies must implement the following measures:

  • Pass declaration of principles on respect for human rights
  • Risk analysis: establish and implement procedures to identify adverse human rights impacts
  • Risk management (incl. corrective measures) to prevent potentially negative impacts on human rights
  • Set up complaints mechanism
  • Report transparently and publicly
  • In the event of a violation, corrective measures must be taken immediately in the company's own business area, and it is imperative that these measures lead to the termination of the violation. In addition, further preventive measures must be initiated
  • If the violation with the direct supplier cannot be terminated in the foreseeable future, a concrete plan for minimization and avoidance must be created. Appropriate measures must be taken for this purpose, starting with supplier development within a defined time frame and ending with the discontinuation of the business relationship.

What does a company have to do with the indirect supplier?
Here, the due diligence obligations only apply on an occasion-related basis. If the company becomes aware of a possible violation by an indirect supplier, it must immediately:

  • Carry out a risk analysis
  • Implement a concept for minimization and prevention
  • Establish appropriate preventive measures regarding the causer of the violation

Is that a breakthrough? Barely.
With the aim of improving the human rights situation along the supply chain of German companies and thus implementing the UN Guiding Principles on Business and Human Rights, the German government passed the National Action Plan on Business and Human Rights (NAP) back in 2016. This urged companies to review their business activities and relationships with regard to human rights risks and implement necessary measures - on a voluntary basis.

However, the German government's report was sobering. For example, the monitoring of the implementation status of the NAP's requirements carried out from 2018 to 2020 revealed, that less than 20% of the German companies surveyed have voluntarily fulfilled their human rights due diligence obligations to date.

Now, ethical obligations are becoming part of the compliance, at least for the big companies in Germany. The majority of the "giants" involved are already familiar with the obligation under the EU Conflict Minerals Regulation and/or the EU CSR Directive: Corporate responsibility in the supply chain is a mandatory part of non-financial reporting. However, the materiality view here is defined by size of loss and not the topicality of the problem in the supply chain.

What does the new law change? With the law passed, everything remains the same for now: Digging in deeper and developing one’s own supply chain is still not mandatory.

Status Quo
From experience in validating sustainability reports, GUTcert auditors see that many German companies of various sizes are already addressing sustainability concerns in the supply chain based on their own corporate sustainability and ethical obligations:
 
The introduction of a code of conduct for business partners is already part of everyday life in many companies. When contracts are listed for the first time and renewed, the direct suppliers and service providers must adopt certain obligations and carry them forward into their own value chain.

Documentation of the risk analysis and its results as required by law is also no longer a novelty. At the latest in the context of conventional economic concerns, it is no longer possible to imagine supply chains without risks. The pandemic had brought this topic even more into focus in the light of interrupted supply chains in many places. Many companies have already expanded the purely economic risks to include sustainability-related issues, i.e. environmental and social concerns, human rights clauses and anti-corruption rules.

What is often missing, however, is an effective monitoring of the respective performance of the business partners. Self-reporting is the common tool in demonstrating sustainability in the supply chain. On-site controls are linked with high costs and often with the lack of knowledge about the possible means of a sustainability management. Some risks therefore often remain "blind spots".

What to do?
A matrix of one's own corporate sustainability risks of the value chain related to countries, industries and products is a first step in the right direction. With or without the law: The important thing is to take a serious look at your own supply chain and set the boundaries, so that existing risks of violation can actually be addressed - step by step. This way, any company can work out the key risks and opportunities with manageable effort. Help is provided by some internationally recognized sources that can serve as a basis for risk evaluation.
 
Targets and measures should be derived from the main risks and opportunities. These can range from the company's own controls and association work in its own industry to cooperation with international organizations, platforms and certifications. There are many options if one is looking for them.

Source:

GUT Certification Company for Management Systems

HEIMTEXTIL CELEBRATES ITS ANNIVERSARY (c) Messe Frankfurt Exhibition GmbH, Jochen Günther
07.01.2020

HEIMTEXTIL CELEBRATES ITS ANNIVERSARY

THE 50TH EDITION OF THE WORLD-LEADING TRADE FAIR WITH MAJOR FOCUS ON SUSTAINABILITY

Half a century shaped by textile design: for the 50th time, Heimtextil will bring together the international home textiles industry. From 7-10 January 2020, 2952 companies from 65 countries will present their innovations at the world’s largest trade fair for home and contract textiles.*

‘There is hardly any other trade fair in the world that can look back on such an eventful and successful history. Ever since the first event in January 1971 with 679 exhibitors, we have invested massively over the decades in the quality of the fair as well as in the range of information and inspiration we offer the industry. We are looking forward to a very special edition of Heimtextil, which is in very good shape as it approaches its 50th anniversary’, says Detlef Braun, CEO of Messe Frankfurt.

THE 50TH EDITION OF THE WORLD-LEADING TRADE FAIR WITH MAJOR FOCUS ON SUSTAINABILITY

Half a century shaped by textile design: for the 50th time, Heimtextil will bring together the international home textiles industry. From 7-10 January 2020, 2952 companies from 65 countries will present their innovations at the world’s largest trade fair for home and contract textiles.*

‘There is hardly any other trade fair in the world that can look back on such an eventful and successful history. Ever since the first event in January 1971 with 679 exhibitors, we have invested massively over the decades in the quality of the fair as well as in the range of information and inspiration we offer the industry. We are looking forward to a very special edition of Heimtextil, which is in very good shape as it approaches its 50th anniversary’, says Detlef Braun, CEO of Messe Frankfurt.

The textile furnishing sector faces major challenges in the anniversary year of Heimtextil: the digital revolution – key word ‘Industry 4.0’ – is currently leading to fundamental changes in the manufacture and processing of home textiles. Not all companies can keep up, meaning that the past year has been dominated by business closures and insolvencies. Digitisation opens up many opportunities on the production side – on the retail side, however, it leads to a significant shift in purchasing flows, making specialist bricks-and-mortar shops dependent on new concepts in the medium term. Here, too, there has been strong consolidation and a decline in the number of specialist shops.

Sales in the retail sector continue to decline
The latest industry report by the IFH Cologne shows that spending on home and household textiles continues to slide. Although the years 2015 to 2017 were still top notch, sales have fallen by almost €1 billion within two years and are now back to the levels seen in the tough financial years of 2008/09. The reasons for this sales trend can primarily be ascribed to the sluggish economy. As a result, German industry is pinning its hopes on foreign markets and the high proportion of Heimtextil trade visitors from abroad (75 percent).

Varied measures for greater sustainability
Sustainability is the major overarching theme of the industry. At Heimtextil 2020, green aspects will be at the top of the fair’s agenda for the tenth time. With its range of measures, Heimtextil is promoting the industry's commitment to sustainability and giving green pioneers a platform. The tenth edition of the Green Directory, the exhibitor directory for sustainable producers, includes more pioneers and newcomers than ever before with 259 companies. The ‘Green Village’ is also enjoying growth. In the sustainability area in hall 12.0, which acts as a first port of call for all questions relating to green issues, recognised certifiers and seal awarders will present themselves. New to this area is the German government's ‘Grüner Knopf’ textile seal, launched in September, and the United Nations Office for Partnerships, which will present the global Sustainable Development Goals at Heimtextil. For example, Lucie Brigham, Chief of Office at the United Nations Office for Partnerships, will report on the Sustainable Development Goals and cooperation with Heimtextil at the opening press conference of Heimtextil. Two showcases will illustrate which sustainable approaches the industry is pursuing and how they are already being applied in practice: the Portuguese textile industry will present the ‘iTechStyle Green Circle’ in hall 12.0 and Pakistani manufacturers will present pioneering projects under the ‘Sustainable Pakistan’ umbrella in the foyer of hall 10.2.

Trend Space focuses on sustainable concept
Sustainable aspects were also at the forefront of the concept for this year’s ‘Trend Spaces’. ‘Together with our designers, we have set ourselves the goal of creating a sustainable show and have adopted a material manifesto for this purpose. The aim was to minimise the environmental impact by selecting materials in an intelligent way. This means: wherever possible, alternative, sustainable materials were used’, explains Olaf Schmidt, Vice President Textiles & Textile Technologies of Messe Frankfurt. ‘Heimtextil thus invites you to a design show that not only talks about sustainability but also embraces it in practical terms and, thanks to this approach and its reputation, is unrivalled worldwide. With the motto WHERE I BELONG, visitors interested in design will experience around 1000 exhibits by international exhibitors in the “Trend Space” in hall 3.0 – integrated into a spectacular design concept by Stijlinstituut Amsterdam under the direction of Anne Marie Commandeur. The approach of the new Future Materials Library, part of the Trend Space, is also progressive and sustainable. Here, visitors can explore the nature and production method of innovative materials. The focus is on recycled fabrics and cultivated – so-called living – textiles, among other things.

Hotels etc.: contract furnishing in the spotlight
As another top theme, Heimtextil is focusing on the furnishing of hotels and public buildings under the title ‘Interior.Architecture.Hospitality’. The new highlight here is the ‘Interior.Architecture.Hospitality Library’, a textile materials library with 64 selected, high-quality products categorised according to functional properties especially for contract furnishing. With this library, Heimtextil clearly demonstrates the many and varied uses of functional textiles, in particular providing interior designers with a first-rate work tool. Every product on display is labelled with the name of the manufacturer, booth number and its functional properties. All information on this can also be accessed online throughout the year at www.textile-library.com. Furthermore, the fair offers interior designers, architects and hospitality experts an extremely attractive programme in hall 4.2 – with superb product presentations in the ‘Interior.Architecture.Hospitality Expo’, a four-day lecture programme, guided tours and a special exhibitor directory, the
‘Interior.Architecture.Hospitality Directory’.

For better sleep: professional tips and product innovations
The topic of ‘sleep’ is of huge power and importance for both personal well-being and for the home textiles industry. Heimtextil will be dedicating itself to this much-discussed lifestyle theme for the second time. in “Sleep! The Future Forum' in the foyer of hall 11.0, a four-day programme of talks with a wider range of topics and numerous experienced sleep experts awaits interested listeners. These sleep experts include professional athletes such as Olympic luge champion Susi Erdmann and scientists from Berlin’s Charité, the Fraunhofer Institute and the German Sleep Research Society. Heimtextil has also been able to attract speakers from Ikea, Hästens and Auping to talk about progressive sleep topics. Numerous products aimed at greater sleep comfort will celebrate their première in the context of the ‘Sleep’ programme at the world's leading trade fair.

50th Heimtextil: design classics from the past five decades
To mark the 50th edition of Heimtextil, the trade fair will be presenting design classics from the past 50 trade fair editions in a showcase area in hall 9.0. Under the motto ‘Heimtextil Journey through Time – Celebrating 50 Years of Interior Design’, the fair invites visitors to take a tour through five decades of Heimtextil history. Four specially designed rooms incorporate colours, shapes, furniture and design objects from past decades. The showcase is complemented by a café that will be realised in cooperation with Schöner Wohnen, Europe's largest living magazine.

_____________________
*For comparison: In 2019, 3,012 exhibitors from 65 countries took part (FKM figures, Gesellschaft zur Freiwilligen Kontrolle von Messe- und Ausstellungszahlen, Berlin)

TEXTILE INDUSTRY IN PAKISTAN MUST MODERNIZE Photo: OpenClipart-Vectors at Pixabay
26.03.2019

TEXTILE INDUSTRY IN PAKISTAN MUST MODERNIZE

  • The cultivation of cotton is to be expanded

Pakistan's textile industry has lost competitiveness. Investments in new textile technology are necessary. Exports of German machinery increase.

The textile industry is Pakistan's most important industrial sector. In Pakistan's fiscal year 2017/18 (July 1st 2017 to June 30th 2018), the textile industry accounted for 8.5 percent of gross domestic product. The sector accounted for about a quarter of the total industrial value added. It is by far the country's most important export sector. Textile exports accounted for 58 percent of total exports in 2017/18.

  • The cultivation of cotton is to be expanded

Pakistan's textile industry has lost competitiveness. Investments in new textile technology are necessary. Exports of German machinery increase.

The textile industry is Pakistan's most important industrial sector. In Pakistan's fiscal year 2017/18 (July 1st 2017 to June 30th 2018), the textile industry accounted for 8.5 percent of gross domestic product. The sector accounted for about a quarter of the total industrial value added. It is by far the country's most important export sector. Textile exports accounted for 58 percent of total exports in 2017/18.

However, the international competitiveness of the sector is currently declining. This trend should turn around. Prime Minister Imran Khan met with representatives of the textile industry at the end of January 2019. Economic policy aims to expand and modernize the textile industry. Production costs are to be reduced and productivity increased. In addition, quality improvements, production expansions and higher added value are necessary.

The textile industry's value chain begins with around 1,300 companies that are ginning, process and bale raw cotton. In addition to the demand for cotton, the demand for synthetic fibers is also increasing, although there are only three manufacturers of polyester fibers in Pakistan to date.

The number of spinning mills is estimated at 517 in 2017 and the number of weaving mills at 124 large and 425 medium-sized and small mills. Ten large and 625 medium-sized and small companies process fabrics. Towels were produced by about 400 companies, knitted fabrics by 2,500 companies. Clothing made of woven fabrics was supplied by 50 large factories and 2,500 medium-sized and small factories.

Export transactions stagnate
Pakistan's textile exports grew by 8.7 percent to USD 13.5 billion in 2017/18. This level was already reached in 2013/14 and 2014/15. Textile exports in the first seven months of fiscal year 2018/19 (July 18th to January 19th) increased slightly by 1.2 percent year-on-year to US$ 7.8 billion.

Pakistan: exports of yarn, fabrics and clothing (USD million) *)
Products 2013/14 2014/15 2015/16 2016/17 2017/18
Total 13,733 13,471 12,447 12,452 13,530
.Cotton yarn 1,997 1,849 1,265 1,244 1,372
.Cotton fabrics 2,770 2,453 2,214 2,136 2,204
.Towels 767 797 803 801 797
.Bed linen 2,138 2,103 2,020 2,136 2,261
.Clothing 1,906 2,095 2,195 2,319 2,579
.Knitted goods 2,294 2,406 2,364 2,361 2,720
.Other products 1,858 1,767 1,586 1,452 1,597

*) Fiscal years (July to June)

Sources: All Pakistan Textile Mills Association (APTMA); Pakistan Bureau of Statistics; Textile Commissioner's Organization

The All Pakistan Textile Mills Association (APTMA) aims to increase exports to USD 28 billion by 2023/24. This requires consistent state support and long-term export promotion, according to the association.

The leading foreign customer is the USA. Other important customers include the United Kingdom, Germany and Spain. In 2017 and 2018, Germany imported textile materials and goods worth EUR 1 billion from Pakistan.

Machine imports still declining
Imports of textile machinery in 2013/14 amounted still to USD 599 million. In the following three years it was USD 449 million (2014/15), USD 462 million (2015/16) and USD 557 million (2016/17). Imports are not currently showing an upward trend despite the need for modernization. According to the statistics authority, they fell by 42 per cent to USD 325 million in 2017/18. There are still no signs of a recovery in 2018/19 either.

Pakistan: Imports of selected textile machinery (USD million)
HS-Positions 2014 2015 2016 2017
84.45 Spinning machines etc. 230 162 162 246
84.46 Looms 84 73 107 90
84.47 Knitting machines etc. 70 84 65 75
84.48 Auxiliary machinery for
HS headings 84.44 to 84.47
85 70 77 82

Sources: Pakistan Bureau of Statistics, UN Comtrade

Business trip to the fifth largest customer of German spinning technology
According to calculations by the German Engineering Federation (VDMA), German textile machinery exports to Pakistan increased to EUR 53 million in 2017. The previous year's figure was EUR 48 million, EUR 39 million of which was attributable to spinning machines.

A business trip of German companies from the textile machinery and accessories sectors will take place to Karachi and Lahore from November 11th to 15th 2019. The Federal Ministry of Economics and Energy will promote and the company SBS Systems for Business Solution will organize the trip (contact: Thomas Nytsch, e-mail: thomasnytsch@sbs-business.com).

Cotton production to be strongly increased
The local cotton production is the base of the textile industry. After India, China and the USA, Pakistan is the fourth largest cotton producer, followed by Brazil and Uzbekistan. Without an increase in local crop yields, the growth of the textile industry is limited. Increased imports of cotton would further reduce the industry's struggling international competitiveness.

In an international comparison, the country is one of the cotton producers with the lowest yields per hectare. Australia, Turkey, China and Brazil form the leading group with about 1,600 to 1,700 kilograms per hectare. Pakistan only reaches 600 to 800 kilograms.

Pakistan: Cotton production
Year Cultivation area
(in hectares)
Production
(in 1,000 bales) 1)
Yield per hectare
(in kilograms)
2013/14 2,086 12,769 774
2014/15 2,961 13,960 802
2015/16 2,902 9,917 582
2016/17 2,489 10,671 730
2017/18 2,699 11,935 752
2018/19 2) 2,500 11,000 748

1) one bale = 170 kilograms, 2) Forecast
Source: Pakistan Bureau of Statistics; research by Germany Trade & Invest

The government has set a production target of around 15 million bales for 2019/20. APTMA believes an increase to 20 million bales is possible by 2023/24. The association assumes that there will be about 2,800 hectares of cultivated land and an increase in yields per hectare to 1,200 kilograms.

Problems with the supply of cotton

Baumwolle wird vor allem in den Provinzen Punjab und Sindh angebaut. Die Baumwollproduktion erreichte 2014/15 noch rund 14 Millionen Ballen. Die Ernte fiel 2015/16 auf unter 10 Millionen und lag 2017/18 bei 12 Millionen Ballen. Die Produktion ist 2018/19 wieder gesunken, ein Wert von etwa 11 Millionen Ballen wird prognostiziert. Als Gründe werden unter anderem Wassermangel, eine schlechte Qualität der Pflanzenschutzmittel und minderwertiges Saatgut genannt. Zudem sei die finanzielle und regulatorische Unterstützung der Regierung unzureichend, so Branchenvertreter.

The local supply could therefore no longer cover the annual cotton demand of the textile industry of 15 to 16 million bales in recent years. Textile manufacturers therefore imported cotton mainly from India and China, about 3 million to 4 million bales a year. However, imports from India have been stopped since February 2019. The background to this is the political tensions and recent military conflicts between the two states.

More information:
Pakistan Pakistan
Source:

Robert Espey, Germany Trade & Invest www.gtai.de

Photo: pasja1000 Pixabay
19.03.2019

SRI LANKA'S APPAREL AND TEXTILE EXPORTS RECEIVE A BOOST

  • Modernization of production facilities required

Thanks to the reactivated GSP import status of the European Union, Sri Lanka's textile and clothing industry is looking to the future with confidence and expects better sales opportunities abroad.

The textile and clothing industry is of macroeconomic importance for Sri Lanka. The sector accounted for almost 43 per cent of the country's total exports in 2018 and provides employment for nearly 350,000 workers in the formal sector and about twice as many in the informal sector. In total, this is about 33 percent of all jobs in the manufacturing industry. The majority of employees are women.

  • Modernization of production facilities required

Thanks to the reactivated GSP import status of the European Union, Sri Lanka's textile and clothing industry is looking to the future with confidence and expects better sales opportunities abroad.

The textile and clothing industry is of macroeconomic importance for Sri Lanka. The sector accounted for almost 43 per cent of the country's total exports in 2018 and provides employment for nearly 350,000 workers in the formal sector and about twice as many in the informal sector. In total, this is about 33 percent of all jobs in the manufacturing industry. The majority of employees are women.

The textile and clothing industry contribute around 6 percent to the gross domestic product (GDP). "In view of the development of other sectors, it is very unlikely that another industry will reach this level of performance in the short to medium term," Jeevani Siriwardena, head of the Export Development Board (EDB), said in an interview with Germany Trade and Invest. The textile and clothing industry will continue to be an important sector for the Sri Lankan economy.

Short to medium-term prospects are good
On May 18th 2017, the European Union (EU) reactivated the Generalized Scheme of Preferences Plus (GSP+) status for Sri Lanka after a seven-year time-out. This means that when goods are exported to the EU, the island state is exempted from customs duties on more than 66 percent of customs tariff lines. "Without GSP status, Sri Lanka's export losses are said to have cost around 32 billion between 2010 and 2017," stressed Ravindi Ranaraja, Deputy Head of the Export Service Division of EDB, in a GTAI interview. In particular, the strongly export-oriented clothing and textile industry will benefit from the regained GSP status. Sri Lanka's textile and clothing industry is looking to the future with confidence and also expects better sales opportunities abroad.

Sri Lanka's textile and clothing exports to the EU and Germany in 2018
(in USD million; change year-on-year in %)  
HS-Code Definition
 
EU
 
Change
 
Germany *) Change
 
61 Articles of apparel and clothing accessories, knitted or crocheted 1,177 0.7 232.55 9.6
62 Garments and clothing accessories, not knitted or crocheted 874 7.6 151.59 18.1
63 Other made-up textile articles; sets worn clothing and used textile articles 52 18.2 7.8 13.5
Total   2,103 3.9 391.92 12.8

*) Estimation
Sources: Sri Lanka Apparel Exporters Association; press releases; calculations by Germany Trade & Invest; Destatis, February 2019

Positive impulses are already visible. According to the latest foreign trade figures available, Sri Lanka was able to increase its total exports of textiles and clothing (HS codes 61, 62 and 63) by almost 4.8 percent to approximately USD 5 billion in 2018. Exports to the EU increased by 3.9 percent to USD 2.1 billion. Exports to Germany were able to recover a plus of 12.8 percent.

It is not yet certain that Sri Lanka will be able to make up for the losses of the past. In the meantime, countries such as Bangladesh, India and Pakistan, which have already enjoyed tariff concessions in foreign trade with the EU for the entire current decade, have passed by the island state. Bangladesh in particular, recorded a strong increase in its clothing and textile exports compared with Sri Lanka..

Sri Lanka textile and clothing exports 2018 (HS codes 61, 62, 63)
Country In USD million 1)
China 172.4
Vietnam 36.0
Bangladesh 32.9
India 20.9
Indonesia 2) 14.0

1) Estimation; 2) Forecast
Sources: Press Releases; Calculations Germany Trade & Invest, February 2019

Sri Lanka focuses on higher quality products
Numerous domestic textile producers are switching to the production of higher-quality garments in order to maintain their competitiveness. "In Sri Lanka, the focus is not on mass but rather on higher quality products," confirmed M. Raghuram, Chief Executive Officer of Brandix, one of the country's largest clothing companies, in an interview with GTAI. The island state concentrates on the production of just a few product categories such as underwear, sportswear or lounge wear..

Sri Lanka has become a location for the manufacture of high-quality garments. This is also confirmed by the World Bank. In its 2016 study "Stitches to Riches" (website), it found that Sri Lanka outperformed its competitors India, Pakistan and Bangladesh in terms of quality, delivery times, reliability and sustainable social responsibility.

Sri Lanka serves fastidious international companies such as Victoria Secrets, GAP, Nike or Marks and Spencer. According to expert estimates, the production of the top 10 Sri Lankan textile and clothing companies accounts for around 85 percent of the industry's total exports.

The ambitious goal is to increase the garment industry's export revenues to USD 8 billion by 2025, which will require an annual growth of 6 percent. For this Sri Lanka must improve capacity, technology and resource problems. "It is becoming more and more difficult to find suitable personnel. For many young people working in the garment and textile industry in Sri Lanka is simply unattractive”, Nilanthi Sivapragasam, Chief Financial Officer of the conglomerate Aitkence Spence, told GTAI. The training of the workforce is also a major challenge. "Training new employees is very time-consuming and labor-intensive," confirms Sivapragasam.

Imports of German machinery decline
In addition, Sri Lanka's textile companies must modernize their machinery and expand their capacities in order to further increase productivity and added value. Accordingly, there is a great demand for technically sophisticated textile machines in the country. This offers good opportunities and chances for machine suppliers. According to experts, the demand for textile printing and dyeing machines, stenter frames and finishing technology will develop particularly dynamically in the future.
 
In Sri Lanka itself only relatively simple machines are being produced. High-end technology is mainly imported. China is the most important supplier of textile machinery, accounting for about one third of all imports. India has also been able to significantly increase its machine exports to Sri Lanka in recent years. In 2017, India achieved exports of USD 6.3 million, an increase of 46.7 percent, compared with exports of USD 2.6 million in 2010.

German machine exports suffered enormous losses. Sri Lanka's imports of textile machinery from Germany amounted to USD 16.5 million in 2017, a decrease of 54.2 percent. Over the past years, Germany has lost share of its deliveries. According to industry experts, this trend will continue: Made in Germany stands for quality and continues to be very popular in Sri Lanka; however, German machine manufacturers are often unable to keep up with the low-cost products from China or India.

Sri Lanka's imports of textile and clothing machinery
(SITC 724; USD million) 
Country 2016 2017 Change
China 56.3 51.8 -8.0
Japan 26.6 18.3 -31.1
Germany 36.0 16.5 -54.2
Singapore 13.6 14.5 -6.8
India 4.3 6.3 46.7
Total 192.8 155.3 -19.5

Source: UN Comtrade, March 2019

Contact addresses
Title Internet address Remark
Germany Trade & Invest http://www.gtai.de/srilanka Foreign trade information for the German export industry
AHK Sri Lanka http://www.srilanka.ahk.de Contact point for German companies
Sri Lanka Export Development Board http://www.srilankabusiness.com/edb State organization responsible for the development and promotion of exports in Sri Lanka. 

 

More information:
Sri Lanka
Source:

Heena Nazir, Germany Trade & Invest www.gtai.de

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

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

Messe Frankfurt Exhibition GmbH
15.08.2017

Home Textiles Sourcing Expo showcases 158 international exhibitors

  • Exhibitors from 9 countries showcased products across 6 categories: upholstery, bed, bathroom, table, window and floor
  • Summer 2017 Seminar Series highlights include home furnishings color trends, sustainability and post-consumer recycling, and appealing to the millennial shopper

The 8th edition of Home Textiles Sourcing Expo opened its show floor to exhibitors and buyers alike on Monday July 17, 2017. As a long-term joint venture partnership between Messe Frankfurt and CCPIT-TEX, the show is the only trade event in North America to focus solely on home textiles and finished soft goods for all home applications.

  • Exhibitors from 9 countries showcased products across 6 categories: upholstery, bed, bathroom, table, window and floor
  • Summer 2017 Seminar Series highlights include home furnishings color trends, sustainability and post-consumer recycling, and appealing to the millennial shopper

The 8th edition of Home Textiles Sourcing Expo opened its show floor to exhibitors and buyers alike on Monday July 17, 2017. As a long-term joint venture partnership between Messe Frankfurt and CCPIT-TEX, the show is the only trade event in North America to focus solely on home textiles and finished soft goods for all home applications.

Over the last eight years, Home Textiles Sourcing Expo has become a go-to event for manufacturers, retailers, jobbers, converters, contract specifiers and designers searching for the perfect fabric or manufacturing resources for their next home collection. This July’s edition showcased home products in six categories, including upholstery, bed, bathroom, table, window and floor.
 
Home Textiles Sourcing Expo Summer 2017 featured 158 exhibitors representing 9 countries, making this edition the most globally diverse group in show history. Countries represented included USA, Taiwan, Thailand, Korea, Bangladesh and more. Dedicated pavilions included the Handloom Export Promotion Council (HEPC)-sponsored India pavilion, the Pakistan pavilion featuring 8 suppliers, and the always popular Turkey pavilion. The Suzhou China pavilion also made its debut on the show floor with suppliers specializing in quality silk bedding and home textiles.

High-quality cotton, kitchen textiles, premium bedding and luxury bath textiles were also to be found among July 2017 exhibitor product offerings. “The Summer 2017 edition of Home Textiles Sourcing Expo was the most diverse showing of exhibitors in the history of the show from both a product and sourcing destination perspective”, said Jennifer Bacon, Show Director. “Our attendees were able to source quality textiles and finished goods from both established and emerging sourcing destinations. The access our show gives buyers to products in almost every home category – bedding, bath, floor, upholstery and more – is hard to find elsewhere. “

Once again taking place alongside Texworld USA and Apparel Sourcing USA, as well as the debut edition of Avanprint USA, the Summer 2017 edition of Home Textiles Sourcing Expo ultimately welcomed a diverse group of visitors from 45 countries. Together the four co-located shows welcomed a record-breaking number of visitors from a combined 72 different countries, making the Summer 2017 shows the most well attended in show history.
   
Texworld USA Seminar Series, organized by Lenzing Innovation, cater to home furnishings and home goods industry with timely topics
The Lenzing Innovation seminar series once again proved to be a big draw for Home Textiles Sourcing Expo attendees. Several home trendfocused seminars catered specifically to the home market and spoke directly to issues that the industry is facing.

Home-industry focused seminars included:
INSPIRING AND EXPRESSING COLOR: DEFINING THE ESSENTIAL TRENDS FOR HOME FURNISHINGS 2018
Laurie Pressman, Vice President - Pantone Color Institute
Color palettes for 2018 break free from traditional thinking. Colors are revitalized, hues are mixed in novel combinations and new color directions instantly and effectively express a fresh approach. While commerciality is still critical, taking a more unique approach to color will help you stand out from the mainstream. Colors range from classic arrangements through to fully saturated, punchy narratives all the while leading to newer and more unique color expressions.

BREATHE EASIER: ASTHMA AND ALLERGY-FRIENDLY TEXTILES
Dr. John McKeon, Co-Founder and Chief Executive Officer - Allergy Standards
Asthma and allergies strike one-in-four Americans, that’s 60 million people who spend an estimated $10 billion a year on products marketed to this group! But claims made by companies today can’t be verified because there is little or no governing regulation. What can companies do to capture a piece of this growing market?    

APPEALING TO THE MILLENNIAL SHOPPER: WHAT HOME TEXTILE RETAILERS ARE DOING TO CAPTURE THIS CRITICAL DEMOGRAPHIC
Jennifer Marks,  Editor-In-Chief - Home & Textiles Today Magazine
Moderator - Nina Nadash, Home Textile Manager (Americas) - Lenzing Fibers, Inc.

Despite the fact that Millennials are coming of age in one of the most frenetic economic climates in the past century, research shows almost 3 out of 4 are willing to pay extra for sustainable offerings. Marketers of products and services committed to positive social and environmental impact need to ensure they are communicating their brand message in a way that builds confidence with this critical consumer demographic. Jennifer Marks, Editor-in-Chief of Home & Textiles Today will be on hand to give her perspective on the Millennial market, highlighting the importance of matching your brand message to the personal values of this important consumer group.

 

Munich Fabric Start 2017 © munich fabric start
21.02.2017

MUNICH FABRIC START S/S 2018: THE SIGNS OF THE TIMES RECOGNIZED

A stable high number of visitors, the measurable acceptance of all changes and expansions in the Bluezone area and a top level supporting program with a trend lecture by Li Edelkoort and the presentation of the Hightex Award confirm the correctness of the fair concept at Munich Fabric Start. The exhibition time expansion of Bluezone and Keyhouse reflects the success of the Denim segment and the innovation driver in the Keyhouse.

A stable high number of visitors, the measurable acceptance of all changes and expansions in the Bluezone area and a top level supporting program with a trend lecture by Li Edelkoort and the presentation of the Hightex Award confirm the correctness of the fair concept at Munich Fabric Start. The exhibition time expansion of Bluezone and Keyhouse reflects the success of the Denim segment and the innovation driver in the Keyhouse.

Due to the addition of the Catalyzer Hall last fall, approx. 100 exhibitors will present their latest developments in the Bluezone area. The Keyhouse has been accepted as a crystallization point for
trends and innovations and has also been ennobled by one of the rare appearances of the trend visionary Li Edelkoort. At the center are the innovations that have qualified for the Hightex Award and developments in the area of sustainability. The latter were presented under the heading Sustainable Innovations for the first time. There were eight innovative concepts - from jellyfish leather to citrus fibers until fruit leathers - that showed a vision of where textile-technological developments could lead in the future. In the tried and tested format of organicselection, the future theme Sustainability received great attention with the latest developments in sustainable produced fabrics and accessories. Spatially placed around the stele-like structured future visions, highly innovative companies like Schoeller Technologies and various universities showed their novelties. Everything has more of a laboratory character and is therefore more inspiring than commercial, which is effectively underlined by the ambiance of the old industrial structure of the hall. The interest of the visitors shows that it is well received. The trend presentations and expert talks were also held here.

Into the Blue

Across the street in halls 1 to 4, the more basic work takes place. The range is internationally attractive with approximately 1700 collections of about 1000 exhibitors and represents the real happenings in the textile market. Here too the trend fora are well visited. The additionals, as the accessories are called here, received more presence in the trend presentation, which was generally welcomed, as they represent a significant part of the exhibitor portfolio. The details of the presentation themselves however still need to be significantly optimized. It also should be permissible to ensure, that a development of a "two - party society" of this side and the other side of the road, which prefers the special part of the Blues through its concentration of events and visionaries of these halls, should be prevented; knowing that that part is showing a market segment for itself and which hardly mixes with "normal" clothing. An important step however is now the adjustment of the opening days: three equal days for all areas.

Encourage innovation

The Hightex Award was only launched last season. As said by the fair organizers it should promote the "most innovative and forward-looking product developments for fabrics and additionals by the exhibiting companies in the fields of technology, smart fibers, sustainability, resource efficiency, finishing and functionality", as well as the growing "demand for innovation, added value and unique features" in the fashion sector. Sustainability however is only one of the to be considered requirements and is not an exclusion criterion for the pre-selection. Sebastian Klinder, Managing Director of Munich Fabric Start, reported about more than 300 requests in the current season.

The winners of the event were: Place1 Tintex Textiles Portugal, with a breathable, cork-coated Jersey of Tencel / Cotton, followed by Soorty Enterprises from Pakistan, whose bi-elastic denim with a high proportion of recycled polyester (Coolmax) for sportswear convinced the Jury. The 3rd place went to Thermore, Italy, for the development of a heat regulating Inlet from a fiber fleece with a vaporized polymer. The good mood of the entire sector was striking, which obviously did not want to become affected by the worrying environmental conditions in politics and on the export markets.

The platform was used for information and discussions, as the clothing manufacturers are due to missing attractive trends more than ever being asked to filter the right suitable things out of the huge spectrum of materials, colors and patterns, which could be appropriate for them. "For the first time, I am looking pessimistic to the future," the grand lady of fashionable trend forecasts, Li Edelkoort, said. She attributed the most important significance to the parameters of movement and change, which gave her the chance to add to the theme "Transform", free: change – from her point of view an additional facet.

 

Usbekistan invests USD 115 Millions in its shoe and leather industry © Vera/ pixelio.de
20.09.2016

UZBEKISTAN INVESTS USD 115 MILLION IN THE SHOE AND LEATHER INDUSTRY

Industry Association is searching for Business Partners

Tashkent (GTAI) - The Central Asian Republic of Uzbekistan is launching a new initiative for the modernization and expansion of its shoe and leather industry. Until 2020 numerous projects are planned to open foreign offering parties sales opportunities. In addition to machinery and equipment various supplies such as shoe parts, materials and chemicals are required. The majority of the sector companies concentrated in the industrial association O'zbekcharmpoyabzali.

Industry Association is searching for Business Partners

Tashkent (GTAI) - The Central Asian Republic of Uzbekistan is launching a new initiative for the modernization and expansion of its shoe and leather industry. Until 2020 numerous projects are planned to open foreign offering parties sales opportunities. In addition to machinery and equipment various supplies such as shoe parts, materials and chemicals are required. The majority of the sector companies concentrated in the industrial association O'zbekcharmpoyabzali.

The shoe and leather industry of Uzbekistan is facing a new wave of investment. In the years 2016-2020 the implementation of 82 projects for the establishment of new or for the expansion and modernization of existing capacities is planned. The commissioning of 48 new production facilities and the technical renewal or extension of 34 factories is provided. The for the projects necessary investments are estimated at USD 115 million.

Numerous business opportunities for foreign companies

The expansion and modernization projects offer a range of business opportunities to foreign companies. This applies to the supply of shoe parts, auxiliaries and additives, accessories and chemicals (tannins, fat accumulating and degreasing agents, aniline and pigments) as well as machinery and equipment, including used technology. In the tanneries and shoe factories mainly following types of equipment are required:

  • Vacuum dryer
  • Spiral blade for excarnation and planers
  • Electronic instruments for measuring the leather Surface
  • Slotting machines and squeezing machines
  • Sewing machines for shoe production
  • Hydraulic cutting machines
  • Splitting machines for shell Elements
  • Equipment for shoe assembly

In addition, some companies strive for the establishment of joint ventures with foreign capital participation.

Industry association O'zbekcharmpoyabzali coordinates investment projects

Behind the expansion and modernization program of the sector stands the Uzbek Association of Leather and Shoes O'zbekcharmpoyabzali. The majority of the companies of the industry are concentrated under its umbrella. The association today includes more than 80 manufacturers of raw material leather / finished leather (production of hard leather / foot and insole leather and soft leather / upper leather, including mainly chrome leather goods and Russia leather / fine calf leather for shoes), women, men, and children's footwear and gallantry leather accessories.

The in 2010 founded industry part-association is the central buying organization of raw- material leather and coordinates investments in the shoe and leather industry of the country. The association takes similarly care as its sister organization, the state joint stock company for the textile and clothing industry O'zbekyengilsanoat, which is comparable in the area of responsibility with as a small specialized ministry. 

A special professional association, which mainly would take care of the interests of private independent leather and shoe manufacturers, is not available in the country. Shoe producers, which are operating outside of the industry organization, represent about one third of the shoe production in Uzbekistan.

Annual production is expected to increase to USD 0.5 billion until 2020

The production of goods of the O'zbekcharmpoyabzali enterprises is expected to reach a volume of USD 140 million in 2016. In comparison to 2010 that would be a tenfold. In 2016 8.7 million pair of shoes are expected to be produced (2010: 3.1 million pairs). The expectation for 2020 is a production of goods in an amount of USD 476 million. Exports are assumed to rise from USD 191 (forecast for 2016) to USD 301 million in 2020. Shoes and other leather goods are currently being exported to the PR of China, to Pakistan, Turkey, India, Kazakhstan, Korea (Rep.), Italy, Spain and the United Kingdom. 

But - the new industry program remains far behind the original goals. The investment program for the period 2011 to 2015 provided an increase of shoe production by 120% to 14.2 million pair in comparison to 2011. The production of leather should rise by 90% (to 468 million qdm), of leather clothes by 720% as well as leather accessories by 40%.

From 2008/09 the industry showed a clear uptrend. However, the situation in the industry began to worsen again in 2012/13. As the main reasons for this market experts identified this mainly with liquidity problems of the companies, major difficulties in currency conversion and associated restrictions on the procurement of supplies from abroad and a general deterioration of the business climate in the country.
The production of leather, footwear and leather goods accounts now for only a fraction of the production of the late 1980s and early 1990s. In 1990 the companies still produced about 50 million pairs of shoes per year.

Die Produktion von Leder, Schuhen und Lederwaren macht heute nur einen Bruchteil der Produktion von Ende der 1980er und Anfang der 1990er Jahre aus. Im Jahr 1990 produzierten die Unternehmen noch circa 50 Mio. Paar Schuhe pro Jahr.

Contact addresses:

O´zbekiston charm va poyabzal ishlab chiqarish korxonalarining O´zbekcharmpoyabzali uyushmasi
(Association oft he leather and footwear enterprises of Usbekistan O´zbekcharmpoyabzali)
Mustakillik kuc., 109, 100192 Taschkent
Contact: Maksudshon Mansurow, chairman, Sharifshon Scheralijew, deputy chairman
Tel.: 00998 71/23052-80, Fax: -83
E-Mail: info@uzcharm.uz,  Internet: http://www.uzcharm.uz 

PAKISTAN’S TEXTILE AND GARMENT INDUSTRY HAS TO INVEST © Jerzy Sawluk / pixelio.de
07.06.2016

PAKISTAN’S TEXTILE AND GARMENT INDUSTRY HAS TO INVEST

  • INTERNATIONAL COMPETITION INCREASES
  • COMPANIES HAVE TO MODERNIZE PRODUCTION AND INCREASE DEPTH OF PROCESSING

Dubai / Islamabad (GTAI) - Pakistan's textile and clothing industry has urgently to invest. The international competition has intensified. The companies need to modernize their technology and increase their processing depth. The country wants to get away from the production of simple fabrics and yarns. The GSP Plus agreement with the EU and an improvement in the security situation have improved the investment climate. In high-end machines Pakistan is dependent on imports. 

  • INTERNATIONAL COMPETITION INCREASES
  • COMPANIES HAVE TO MODERNIZE PRODUCTION AND INCREASE DEPTH OF PROCESSING

Dubai / Islamabad (GTAI) - Pakistan's textile and clothing industry has urgently to invest. The international competition has intensified. The companies need to modernize their technology and increase their processing depth. The country wants to get away from the production of simple fabrics and yarns. The GSP Plus agreement with the EU and an improvement in the security situation have improved the investment climate. In high-end machines Pakistan is dependent on imports. 

Pakistan's textile and clothing industry expects better sales opportunities abroad in the next few years, particularly with the European Union. Early 2014 Pakistan has received from the EU the GSP Plus status (Generalized System of Preferences) that allows the country to supply goods at a lower rate of duty or even with a completely duty exempt in the EU. Particularly the textile and clothing industry benefits from the agreement, as the sector provides almost 80% of Pakistan's exports to the EU. The government even hopes on additional exports for the sector worth USD 1 billion per year.

Following the latest available trade figures, Pakistan increased in 2014, the year in which the GSP Plus agreement came into force, its total exports of clothing by almost 10% to around USD 5 billion. Official figures of exports to the EU are not available. According to the foreign trade statistics, in any case exports to Germany have increased in clothing by 13% to almost USD 500 million, in textiles by 18% to USD 434 million and in footwear by 27% to USD 34 million.

Pakistan's export of textiles, clothing and footwear (USD million)
SITC Productgroup 2013 2014 Change 2014/2013
Export        
65 Textiles 9,341 9.077 -2,8
84 Clothing 4,549 4.991 9,7
85 Shoes 109 132 21,1
26 Textile Fibres 370 308 -16,8
..2631 Cotton 217 181 -16,7
Import        
65 Textiles 1,245 1.545 24,2
84 Clothing 68 86 26,0
85 Shoes 67 84 25,2
26 Textile Fibres 1,369 1.287 -6,0

Source: UN Comtrade

Demand for textile machinery rises
Market observers anticipate increased investments in machinery. A particular dynamic effort is expected in the demand for textile printing machines, dyeing machines, tenter frames and other finishing techniques. Positive for the investment climate will be the effect of the expected increase in textile exports to the EU and the improvement of the security situation. In recent years power shortages and a precarious security situation have inhibited the production and investment activity.

The market for textile machinery (SITC 724) grew significantly since 2014. In the country itself only relatively simple machines are being manufactured. High-end equipment is mostly imported. The import of textile machinery rose to USD 585 million in 2014, an increase of 17% compared to 2013.

Import of Textilmaschinen*)
Year Value (in Mio. US$)
2014 585
2013 498
2012 439
2011 488
2010 455
2009 217
2008 385

*) SITC 724, including pieces
Source: UN Comtrade

German machinery manufacturers are losing market share
The PR China has superseded Japan as the major supplier of textile machinery in 2014. In fact Japan was able to increase its deliveries vigorously (+ 23%), but the Chinese succeeded to get even higher gains (+ 41%). The suppliers from Switzerland and India have also increased their exports to Pakistan significantly. German machinery manufacturers however were not able to benefit from the increasing demand.
Import of textile machinery by main supplier countries (in USD million, change over previous year and supply share in %) *)
Land   2014 Veränderung 2014/2013 Anteil
VR China 145 40.7 24.8
Japan 139 22.6 23.7
Schweiz 75 55.2 12.8
Deutschland 71 -24.9 12.1
Italien 50 9.3 8.6
Indien 15 28.0 2.6
Gesamt 585 17.5 100

*) SITC 724, including pieces

Investments urgently needed
Competition from PR China, Bangladesh, India and Sri Lanka has intensified. Pakistan's textile industry needs to modernize and upgrade, to increase its productivity and the added value. Pakistan covers the entire value chain from fiber preparation from to the end product. Despite this well-position predominantly simple products are being produced. Only an estimated 40 companies are vertically integrated and cover the entire textile processing.
With an annual harvest of about 13 million bales Pakistan is the world's fourth largest cotton producer. In addition about 600.000 tons of synthetic fibers are being manufactured in the country. According to reports there are 21 manufacturers of filament yarn with a capacity of 100.000 t; the production is supported by a PTA plant with a capacity of 500.000 t.

Export of the textile industry by product group 07-01-2014 – 31-03-2015 (Changes compared to the same period of last year and in %)
Product Value (in Mio. US$) Change Share
Knitwear 1,792 7.5 18
Readymade Garment 1,548 8.5 15
Bed Wear 1,570 -2.4 15
Towels 580 1.8 6
Tent, Canvas, Tarpaulin 105 82.0 1
Made-ups (Other Textiles) 486 -0.5 5
Cotton Cloth 1,860 -26.5 18
Cotton Yarn 1,461 2.0 14
Raw Cotton 142 -9.4 1
Art-Silk& Synthetic Textile 274 -17.0 3
Other Textile Products 350 0.0 4
Summe 10,168 -1.6 100

Sources: Pakistan Bureau of Statistics; TMA - Towel Manufacturers Association

Yarn production has lost competitiveness
According to sector experts In the past decade yarn manufacturers made no larger investments to upgrade their production, although money would have been available for such investments.  The reason for that should have been the heavy competition from China, India and Bangladesch.  Ten years ago Pakistan used to be one of the most efficient yarn manufacturers worldwide. Because modernization investments failed to materialize, this technique applies as outdated in Pakistan today.

The companies complain about high production costs and are demanding more favorable electricity tariffs and protectionist measures against import competition. A negative effect on the production and the investment climate in the country also have the electricity shortages and the tense security Situation.

The textile sector in Pakistan is characterized by numerous large textile companies with quite a large number of small businesses opposite which mostly belong to the so-called informal sector. The informal sector, for example, includes small family companies or small productions, which are not taxable. The informal sector produces mainly simple products for the domestic market. It works with discarded equipment of the larger companies, imported used machinery or cheap equipment from China. The official statistics do not take the informal sector into account.

Import of textile machinery by product and top supplier countries (in USD thousands, change compared to the previous year in%)
SITC Productgroup 2013 2014 Veränd.
724.3 Sewing machines, from 18.508 31.034 67,7
  PR China 9.795 19.925 103,4
  Japan 2.596 3.694 42,3
  Vietnam 479 911 90,3
  Germany (Rank 5) 856 750 -12,4
724.4 Spinning and other machines for textile processing, from 255.311 258.348 1,2
  Japan 74.961 61.771 -17,6
  Switzerland 36.203 57.814 59,7
  Germany (Rank 3) 64.086 46.545 -27,4
724.5 Weaving machines, from 121.860 179.424 47,2
  Japan 29.997 68.090 127,0
  PR China 31.305 53.706 71,6
  Italy 6.666 11.275 69,1
  Germany (Rank 6) 5.290 6.097 15,2
724.6 Auxiliary machines, from 30.953 36.801 18,9
  PR China 8.797 11.935 35,7
  Germany (Rank 2) 6.429 4.880 -24,1
  Japan 2.055 3.614 75,9
724.7 Machines for dying, washing, drying, from 61.620 64.825 5,2
  PR China 9.855 12.455 26,4
  Italy 14.867 11.527 -22,5
   Germany (Rank 3) 16.652 11.494 -31,0
724.8 Machines for leather processing and footwear manufacturing, incl. parts, from 5.854 8.722 49,0
  Italy 3.674 4.985 35,7
  PR China 1.542 2.338 51,6
  Finland k.A 192 k.A.
  Germany (Rank 5) 29 140 381,6
724.9 Parts for textile machines, from 3.996 5.760 44,2
  PR China 2.107 2.854 35,5
  Germany (Rank 2) 617 669 8,4
  Italy 528 661 25,3
TEXPO Trade Development Authority of Pakistan (TDAP) / TEXPO
15.03.2016

TEXPO 2016 - INTERVIEW ON THE OCCASION OF THE FIRST TEXTILE FAIR AT KARACHI EXPO CENTER

The Trade Development Authority of Pakistan (TDAP) organizes from April 07th - 10th a new textile exhibition, the TEXPO in Karachi. This exhibition has been conceived as a whole sector comprehensive trade fair and should help to promote the export business of Pakistani textile and clothing companies. A month before the opening Textination got the opportunity to speak with the person in charge in Germany, the trade expert Mr. Rizwan Tariq from the Pakistani Consulate General in Frankfurt.

The Trade Development Authority of Pakistan (TDAP) organizes from April 07th - 10th a new textile exhibition, the TEXPO in Karachi. This exhibition has been conceived as a whole sector comprehensive trade fair and should help to promote the export business of Pakistani textile and clothing companies. A month before the opening Textination got the opportunity to speak with the person in charge in Germany, the trade expert Mr. Rizwan Tariq from the Pakistani Consulate General in Frankfurt.

T Mr. Rizwan, you can tell us some figures about the current state? How many exhibitors will take part in the event and how big is the occupied exhibition space?
RT There will be around 400 exhibitors and the occupied exhibition space would be around 20,000 sqm. This is the 1st edition of the exhibition and next year the number will double.
T How many visitors are you expecting? What is the expected proportion from Asia, the US and Europe?
RT All Pakistan Embassies and Consulates worldwide are marketing the event as it is the 1st ever Government sponsored textile & clothing exhibition. So we are expecting visitors from around 50 countries. There will be a large number of buyers from Asia especially China. US and Europe will constitute the remaining half.
T From August 27th - 29th 2016, the 14th textile trade show Textile Asia will be held in Lahore. Please explain how complementary or overlapping these two fairs will be and what are the main differences?
RT Textile Asia focuses on textile machinery, chemicals and dyes and other technology used by the textile industry of Pakistan. Both the fairs are aimed at different end customer. Texpo is the fair of Textile Industry which will sell its final product to the world while in Textile Asia, machinery and chemical/ dye manufacturers from all over the world come to Pakistan to sell their products to Pakistan’s textile industry.
T What is the current reaction of the international textile world to the new TEXPO event? What kind of feedback did you receive?
RT As I said earlier, this is the 1st edition of the exhibition but we are hopeful for positive results. Pakistan is already exporting textile products worth billions of dollars worldwide. So we already have a big customer base across the world. The main purpose of the fair is to give a positive message to our valuable buyers that we are a safe country to travel and that they should not have any apprehensions in visiting their suppliers.
T Will the generous visitor program be used by German companies - can you give us a few names?
RT Yes quite a few German companies have expressed their interest in visiting the event. Polo-Motorrand, Summary AG and a few other big names have already joined the delegation from Germany. Big German clothing retailers either already have their buying agents and Offices in Pakistan or in the neighbouring countries like India, Bangladesh and China. So some of the German representatives will also be coming from Asian countries.
T What kind of framework program, company visits, lectures, seminars or any other conference events will accompany the exhibition?
RT There will an Inaugural dinner on the 6th of April at the Sindh Governor House. It is a beautiful building built during the 18th Century and speaks of its glory. Then the 1st two days of the exhibition are for the foreign delegates/ buyers only. In the evenings we will have fashion shows where top Pakistani designers will display their design for international audience. The guests/ delegates will be free during the days to visit the exhibition and also plan their visits to manufacturing facilities of the exhibitors.
T Since many years Pakistan's textile industry is very active on European and US markets. What caused TDAP to initiate such a big new show in Karachi?
RT

Yes, Pakistan’s textile industry is very active in European and US markets but there is always room for growth. Like I explained earlier the event has multiple purposes.

First, Pakistan is known in the news/ media for all the wrong reasons like terrorism etc. whereas ground reality is totally different. So one purpose is to promote the real image of Pakistan. Our valuable customers should come and see for themselves and experience our hospitality.

Secondly, Pakistan has been granted GSP Plus preferential market access by the European Union for 10 years starting from January 2014. Almost all textile products from Pakistan enter European Union at Zero Customs duty. This is a 10-20 percent cost advantage over our competition. So the Government of Pakistan intends on helping the industry to maximum possible extent to increase their business especially to Europe.

This event will also help the new manufacturers to meet international customers at home and learn about new technology and trends in the international market. Similarly our valued customers will have the opportunity to meet new suppliers. So it will be a win win for all.

T At many large textile and clothing trade shows - whether in Germany, other European countries or the US - many wellknown Pakistani manufacturers of bedding
products, home textiles, cotton fabrics and of course clothing are showing again and again since many years. Will now mostly the same manufacturers or exhibitors be present at TEXPO, or will new, not yet so much export-oriented companies exhibit in Karachi?
RT Well! The big companies will ofcourse be there. They would definitely not to forego this opportunity to meet new buyers or loose their old buyers to competition. But there will also be a large number of SMEs and new exporters.
T Which visitor groups are you mainly targeting with the new fair - trading houses, purchasing associations, retail-chains,
department stores, discount–chains or other businesses?
RT We are targeting all kinds of textile buyers. Pakistan produces textiles for all segments of the market.
T Karachi was and is considered as being not a very safe city. Several terrorist attacks have happened there. What kind of security measures do you intend and what code of behavior will you recommend to your international visitors?
RT

As I have already explained, there is a lot of negative news in the media. Karachi is a city of around 20 million people and people are leaving in peace and harmony. This is Government sponsored event so security of the guests is also being taken care of by the Government. We will advise the buyers to move out of their hotels with known associates and friends and that they should inform the hotel management and the Organisers help desk at the hotel of their plans before leaving. The transport for the registered guests is also being arranged by the Government so all security related aspects are being taken care of. There is no serious security situation in the city but the above care will help the visitors in gaining confidence for their security arrangements.

Thank you very much for the interview, we wish the entire TEXPO team a succesful premiere.

For further information please contact:


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


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


3. Mr. Rainer Borch
Trade Development Officer
Embassy of Pakistan Berlin
Tel.: +49 30-21244145
Mobil: +49 163-3736036
E-Mail: tdo@pakemb.de oder rainer.borch@aol.de

TEXPO 2016: First textile exhibition at Karachi Expo Center © Trade Development Authority of Pakistan
23.02.2016

TEXPO 2016: FIRST TEXTILE EXHIBITION AT KARACHI EXPO CENTER

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

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

The textile sector of Pakistan

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

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

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

The textile sector of Pakistan

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

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

Pakistan’s textile exports to Germany

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

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

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

Source: TDAP R&D Cell

Texpo – An opportunity to expand sourcing and increase Profits

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

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

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

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

For further details, please contact:

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

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

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