Textination Newsline

Reset
9 results
26.01.2021

DBU-Funding: From 3D Knitting Machines to Washing without Water

Environmental protection through digitalization - funding for start-ups

Clothing on-demand, a new type of textile cleaning and locally generated green electricity - these three business ideas of “Digitale Strickmanufaktur” (Krefeld), “Infinity Startup” (Aachen) and “prosumergy” (Kassel) convinced the Green Start-up Program’s jury of the German Federal Environmental Foundation (DBU). They will receive a total of around 370,000 euros in technical and financial support.

The DBU promotes company foundations and start-ups that combine solutions for the environment, ecology and sustainability in an innovative way with a focus on digitalization.
General conditions for promotion:

Environmental protection through digitalization - funding for start-ups

Clothing on-demand, a new type of textile cleaning and locally generated green electricity - these three business ideas of “Digitale Strickmanufaktur” (Krefeld), “Infinity Startup” (Aachen) and “prosumergy” (Kassel) convinced the Green Start-up Program’s jury of the German Federal Environmental Foundation (DBU). They will receive a total of around 370,000 euros in technical and financial support.

The DBU promotes company foundations and start-ups that combine solutions for the environment, ecology and sustainability in an innovative way with a focus on digitalization.
General conditions for promotion:

  • in the founding phase as well as start-ups up to 5 years old
  • up to 125,000€ per project
  • up to 24 months duration

A cloud service for retail
The “Digitale Strickmanufaktur” wants to change the clothing industry sustainably. The founders are developing a cloud service that is directly linked to retail. Customers of the " “Digitale Strickmanufaktur” can order individualized garments in which size, color and design are adapted to their wishes. The order data is then transferred using the cloud, an online storage medium. They can be retrieved at any place in the world.

First order - then produce
If a customer orders a hat, for example, the order is automatically transmitted to 3D knitting machines. Then production begins, followed by shipment of the goods. The “Digitale Strickmanufaktur” produces knitwear on demand completely automatically with robots and a 3D knitting machine.

In this way, sales can be planned for retailers and not too much clothing is produced. Additionally: The products are manufactured close to the customer in Germany. Long transport routes and times are eliminated.

Washing without washing machine
The “RefresherBoxx” of the “Infinity Startup” is basically a mobile textile cleaner that does not require water or detergent. “Using a combination of different physical methods, it disinfects, dries and refreshes all kinds of textiles - especially those that can't be put in the washing machine, like leather, velvet and silk,” explains founder Stefan Chang. The “RefresherBoxx” is gentler, more environmentally friendly and only takes 30 minutes for one washing phase. According to Chang, the mobile textile cleaning system can be used in the medical sector, but also in the private and leisure sector.

Local power for commerce and e-mobility
The start-up "prosumergy" offers building owners and tenants a low-cost power supply from renewable energies that are mainly generated locally. "With the help of the DBU, we want to further develop our energy supply approach. By means of standardization and digitization, we want to develop concepts for the decentralized power supply of commercial properties and charging solutions for e-mobility," says founder Lena Cielejewski.

25 founding teams already funded
The three founding teams will now be funded for two years in the DBU's Green Start-up program. "They bring together solutions for the environment, ecology and sustainability with a focus on digitalization in an innovative way," said DBU Start-up coordinator Dr. Stefanie Grade. 22 other companies have already convinced the selection committee of themselves since the program was launched.

Contact details
Digitale Strickmanufaktur PoC GmbH (Krefeld)
Connecting textile trade and automated textile production with the help of cloud services
Contact Mr. Christian Zarbl
URL: digitale-strickmanufaktur.de

Infinity StartUp GmbH (Aachen)
Development, production and distribution of cleaning equipment for textiles, especially using physical methods, as well as development of related applications.
Contact Mr. Stefan Chang
URL: refresherboxx.com

prosumergy GmbH (Kassel)
prosumergy GmbH realizes decentralized energy supply projects as project developer and energy supplier
Contact Christopher Neumann
URL: prosumergy.de

Photo: Wilhelm-Lorch-Foundation.
11.08.2020

Wilhelm Lorch Foundation: Demand and Support - Qualifying young and up-and-coming Talents

  • Interview with Klaus Kottmeier, Elke Giese, Markus Gotta, Prof. Dr.-Ing. habil. Maike Rabe

In June 1988, the shareholders and management of Deutscher Fachverlag announced the Wilhelm Lorch Foundation to the textile and garment industry. Its purpose is to promote vocational training, including student assistance as well as science and research.

Upon its establishment, the Foundation received an initial endowment of DM 300,000 from Deut-scher Fachverlag. Today, the Foundation has assets of approx. 2,85 m. Euro (as at Dec 2019). Since 1988, the foundation has awarded sponsorship prizes of around EUR 1,933,564 (as of June 2020) to date, in order to fund the initial and further training of young people from all areas of the textile industry, with a particular focus on young and up-and-coming talents.

  • Interview with Klaus Kottmeier, Elke Giese, Markus Gotta, Prof. Dr.-Ing. habil. Maike Rabe

In June 1988, the shareholders and management of Deutscher Fachverlag announced the Wilhelm Lorch Foundation to the textile and garment industry. Its purpose is to promote vocational training, including student assistance as well as science and research.

Upon its establishment, the Foundation received an initial endowment of DM 300,000 from Deut-scher Fachverlag. Today, the Foundation has assets of approx. 2,85 m. Euro (as at Dec 2019). Since 1988, the foundation has awarded sponsorship prizes of around EUR 1,933,564 (as of June 2020) to date, in order to fund the initial and further training of young people from all areas of the textile industry, with a particular focus on young and up-and-coming talents.

Textination talked to the former chairman of the supervisory board of Deutscher Fachverlag GmbH, the current member of the executive board and founding member of the foundation, Klaus Kottmeier, as well as three members of the board of trustees: Mrs. Elke Giese - trend analyst and fashion journalist, Markus Gotta, managing director of Deutscher Fachverlag GmbH, and Prof. Dr.-Ing. habil. Maike Rabe, who will take over the chairmanship of the foundation board on September 1, 2020, about the challenging task of continuing successfully the foundation's work in an environment characterized by the pandemic.

The figure 3 seems to play a very special role for the Wilhelm Lorch Foundation (WLS). In 1988 announced on the occasion of the 30th Forum of the TextilWirtschaft, it was endowed with assets of DM 300,000. 2019 marked the 30th anniversary of the award of the sponsorship prizes. If you had to introduce the WLS in 100 words to someone who does not know the foundation: Which 3 aspects have particularly influenced its development and made it unique?

Klaus Kottmeier: In more than 30 years the WLS has been in existence, the foundation has received great support all over the sector from the very beginning. This continues to this day and is not only reflected in the financial support provided by generous grants, but above all in an active commitment of many sector leaders on the foundation board and board of trustees. A second aspect is the unique range in the topics of the support, which extends across design, business and technology, covering young talents in retail as well as university graduates, but also involving educational institutions themselves. And thirdly, the motivation of so many applicants we experience every year, who prepare their applications with incredible diligence and thus impressively demonstrate their willingness to perform.

 

The name of the foundation is a tribute to Wilhelm Lorch, the publisher and founder of the trade journal Textil-Wirtschaft and thus of Deutscher Fachverlag, who died in 1966. Which of his characteristics and traits do you still see as exemplary for the next generation in our industry today?

Klaus Kottmeier: We are a publishing media house where professional journalism based on sound research always forms the basis. This is associated with classic values such as entrepreneurial courage and will, diligence and discipline, but also a sense of responsibility and team spirit, which were exemplified by our founder and which still form the culture of our company today. These all are qualities young people should take to heart and which, coupled with a passion for their profession, encourage them to continue on their path.

 

According to its statutes, the primary purpose of the foundation is the awarding of "... awards and prizes to graduates of continuation schools of the German retail textile trade, textile-technical training institutes and [...] for final degree or doctoral theses from universities, as far as these deal with textile topics.” How nationally and internationally does the WLS work?

Prof. Maike Rabe: The prizes are mainly awarded to graduates and applicants from Germany and German-speaking countries, but there are also always talents from Europe, who have close ties to the German market.

Markus Gotta: The focus is clearly on the core market of Germany or Germany-Austria-Switzerland respectively, which we cover with the TW - accordingly, we do not advertise internationally, but there is no exclusion for foreign applicants, the only requirement is that the submitted works and reports must be written in German or English.

 

Over the past 31 years in which the foundation has been awarding prizes to people, projects and works, you have met many young talents who have moved our industry or will certainly do so. Are there any unusual stories or special award winners that have remained in your memory? And how do you assess the development of the applicants' educational level over the years?

Elke Giese: The applicants come from very different schools and universities, differing significantly in their profiles and focus. The demands on teaching have grown enormously, especially as a result of increasing digitization. Since the job profiles in the fashion business are also constantly changing and will continue to be subject to major changes in the future, the challenges for schools and students remain very high.
From each year, particularly talented and creative personalities remain in one's memory. To name one, Elisa Paulina Herrmann from Pforzheim, who was twice among the prize winners in 2017 and 2019 with her bachelor's and then master's thesis. Her ability and originality were overwhelming for the board of trustees. She now creates exclusive knitwear collections for Gucci. Among the young men is Niels Holger Wien, who received WLS funding in 1995. He has been the specialist for color trends and zeitgeist of the German Fashion Institute for many years and is currently president of the world's most important color committee INTERCOLOR.

Klaus Kottmeier: There are many award winners who have subsequently made a great career, to name just one example, Dr. Oliver Pabst, current CEO of Mammut Sports Group AG and WLS award winner in 1994.

 

Due to its proximity to TextilWirtschaft, the foundation is primarily associated with fashion design and topics related to clothing production or marketing. In 2020 you have put Smart Textiles in the virtual spotlight with two project sponsorships. How do you see future topics in the field of technical textiles? Can you imagine creating a new focus on that field?

Prof. Maike Rabe: First of all, the WLS supports talented young people who, thanks to their training, can take up a career in the entire textile and clothing industry. Of course, this also includes the field of technical textiles, which is of great importance in terms of production in Germany being a technological leader. Here the boundaries to clothing are fluid, just think of outdoor or sports equipment.    „    

Klaus Kottmeier: Our excellently staffed board of trustees is open to all innovative topics in the industry. Innovations in the field of technical textiles in particular are important topics for the future. In 2017, for example, the sponsorship award went to the Anna-Siemsen-School, a vocational school for textile technology and clothing in Hanover, through which we supported the procurement of a pattern design software.

 

The Wilhelm Lorch Foundation has set itself the goal of supporting qualified young people in the textile and fashion industry. However, you preclude the support for business start-ups. In times, in which start-ups receive increasing attention not only through corresponding TV formats but also through industry associations, there must be reasons for this. What are they and how do you assess future prospects?

Klaus Kottmeier: Support for business start-ups is precluded by §2 of our statutes, which defines the purpose of the foundation. The WLS is exclusively dedicated to the charitable purpose. Support for start-ups and business start-ups would contradict this. We therefore concentrate fully on the further education of young professionals in the sector and the promotion of educational institutions, from which the entire sector benefits.

Prof. Maike Rabe: WLS funding is aimed at further developing the skills of graduates and young talents from the sector. They should receive specific further training, possibly reach a further academic degree, and also learn in an interdisciplinary manner. All of this benefits the sector as a whole and this is our strict objective.


          
The foundation also promotes the training and further education of young and up-and-coming talents who are already working in the textile retail trade. Grants are available to cover course or study fees for further qualification. The closure of shops caused by the lockdown  during the pandemic hit the stationary retail trade hard, and even today we are still miles away from regular business operations. Against this background, how do you see focused funding opportunities for further training in the e-commerce sector?

Markus Gotta: The topics of stationary retail and e-commerce can't really be separated, both have long since become part of the basic requirements in fashion sales and thus also of the topics of training and further education in general.
 
Prof. Maike Rabe: E-commerce has become an integral part of our industry and is naturally reflected in many grants and subsidies. The junior staff members are allowed to make their own suggestions as to where and how they would like to train. We support this. But we would also like to strengthen the connection between stationary and digital trade in particular. Our prize winners have come up with wonderful concepts for both sales channels, and of course they can be combined.

 

Breaking new ground means willingness to make decisions, overcoming fears - and thus courage to fail. Not every project can succeed. In retrospect, which decisions in your foundation work are you particularly happy to have made?

Markus Gotta: That we implemented the Summer School project last year. We broke new ground with the foundation, and this - in cooperation with the Niederrhein University of Applied Sciences - was very successful.

Elke Giese: Especially in the field of design and creation, it is important to recognize an applicant's future creative potential from the work at hand and the information provided by the applicant. I am therefore always particularly pleased when the board of trustees makes courageous and progressive decisions.    

 

The Wilhelm Lorch Foundation offers project funding of € 10,000 to universities and educational institutions. They do not make any thematic restrictions here, but simply demand that there must be a clear reference to the sustainable further training of young up-and-coming talents in the textile and fashion industry. According to which criteria do you finally decide which project will be funded?

Elke Giese: One criterion is the relevance for future developments in the textile and fashion industry. Projects in recent years have enabled schools and educational institutions to train on laser cutters and 3D printers, for example, but also to purchase modern knitting machines or software programs.

Prof. Maike Rabe: All the projects submitted are evaluated very strictly by the jury's experts using a points-based system. This results in a shortlist which is presented to the board of trustees and intensively discussed by them. In this way, we ensure that all submitted applications are honored and that we then award the Wilhelm Lorch Prize to the outstanding project submissions in a joint consensus. The most important criteria are sustainable teaching of innovative learning content, practical training and the feasibility of the submitted project.

 

There are many different definitions of sustainability. Customers expect everything under this term - from climate protection to ecology, from on-site production in the region to the exclusion of child labor etc. Public procurement is increasingly switching to sustainable textiles. What does this mean for WLS, and what are you doing to promote sustainable thinking and acting, not only among young professionals?

Prof. Maike Rabe: At the foundation, we base our definition of "sustainability" on the 1987 report of the United Nations World Commission on Environment and Development, the so-called Brundtland Commission: "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs". The textile and clothing sector plays a pioneering role as a globally enormously connected industry with complex supply chains, which should definitely also play a model role. We therefore make it a priority for all award winners to observe these criteria and at the same time try to provide a platform for people who, through their work and actions, offer suggestions for improvement or even already implement improvements.

 

Virtual instead of red carpet: Usually the awards are presented in the festive setting of the TextilWirtschaft Forum. In 2020, due to the Covid-19, there was only a digital version in the form of a short film. How important do you consider networking opportunities that arise from meeting influential personalities face-to-face? Or has such a format become obsolete in the age of video conferencing?

Prof. Maike Rabe: It is certainly remarkable what digital event formats can achieve. But one thing doesn't work: spontaneity, personal contact and closeness. Therefor it is a real pity that the Forum had to be cancelled this year due to corona. Especially for career starters, the chance for direct networking is of great value.

Markus Gotta: The need for personal exchange and meetings will continue to be of great importance and demand in the future. And I can say at this point: We are already working on the plans for the TW Forum 2021 as a live and meeting event with the top decision-makers in the sector.

 

In which socially relevant areas do you see a particularly great need for innovation and action during the next five years? What is your assessment that funding - for example from the Wilhelm Lorch Foundation - can provide targeted support for solutions? And what role do the experiences from the corona pandemic play in this assessment?

Prof. Maike Rabe: We don't think in five-year periods, today's world requires much greater agility - this applies to the Foundation as well as to the entire industry. With each award we re-orientate ourselves towards current topics. Topics such as aesthetics, function and innovation will certainly continue to play a major role, as will quality instead of quantity, eco-social justice and customer loyalty. It is also important, however, that our economy, which is strongly supported by medium-sized companies, is clearly perceived by the public and in politics; we still have to work on that.

Klaus Kottmeier: I gladly agree with Prof. Rabe's closing statement. Agility is also of great importance in a media company like ours. We live in a constant transformation process with constant changes that have to be faced. The corona pandemic has shown us very impressively how quickly original plans can become waste. Today, and more than ever before in the future, a constant willingness to change is required, and this applies not only to us but also to our hopeful young employees.
 

The interview was conducted by Ines Chucholowius,
CEO Textination GmbH

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: Pixabay
26.02.2019

TURKEY REMAINS AN IMPORTANT MARKET FOR GERMAN TEXTILE MACHINERY

  • Competition from the Far East increases modernization pressure

Turkey is an important market for German manufacturers of textile machinery. However, the textile and clothing industry has a problem: exports have been stagnating for years.

  • Competition from the Far East increases modernization pressure

Turkey is an important market for German manufacturers of textile machinery. However, the textile and clothing industry has a problem: exports have been stagnating for years.

The Turkish textile industry is broadly based: Companies manufacture all intermediate products in the country, including yarns, fibers and fabrics. Production along the entire textile value chain means great sales potential for German suppliers of textile machinery. In fact, Turkey is the second most important export market for German spinning, weaving, textile finishing machines and the like after China, as it can be seen from the figures of the Federal Statistical Office Destatis.Nevertheless, the sector is not a growth market. Apart from a few outliers upwards and downwards, Turkish textile machinery imports have remained at the same level for several years. This is due to the fact that Turkish exports of textiles and clothing are also stagnating. Particularly noticeable: companies benefited only marginally from the weak lira last year.

Textile and apparel industry benefits little from weak lira
Year Turkish exports of clothing and textiles (in US$ billion) Annual change (in %)
2015 26.3 -10.3
2016 26.1 -0.6
2017 26.7 2.1
2018 27.7 3.6

Source: Turkish Statistical Office TÜIK (http://www.tuik.gov.tr)

Increasing pressure from the Far East
Turkish clothing manufacturers are increasingly feeling the effects of competition from the Far East. Despite the high number of informal workers, wages in Turkey have risen to such an extent that they cannot keep up with the low wages of Asian sewing factories. The geographical advantage of Turkish companies over Chinese competitors is at stake because of the new Silk Road and the development of faster transport routes. Free trade agreements that the European Union is currently negotiating with India and South Korea will further increase the pressure on Turkish producers.

Slump in 3rd quarter 2018
In addition, there is the difficult economic situation in the country: the Turkish lira reached a record low, especially in the months of August to October 2018, and commercial banks raised their lending rates. As a result, financing costs for machinery from abroad suddenly increased, orders from Turkey failed to materialize, especially in the third quarter. The German knitting machine manufacturer Mayer & Cie has also noticed this, as Stefan Bühler, who is responsible for the Turkish business, reports: "In the last three months of 2018, the market was virtually dead. In the meantime, however, the industry is gradually recovering.

Akar Textile plans new factory
Announcements about new investments cannot yet be heard at this time. As early as June 2018, Akar Textile (http://www.akartextile.com) announced that it would build a new factory for 47 million Turkish lira (TL) in the municipality of Savur in southeastern Turkey. 3,000 employees are there to become employed. Akar Textile produces for companies such as C&A, Mango and H&M. Only a few months after the announcement of the project, the economic crisis in Turkey deepened in September. The extent to which the turbulence has affected the project implementation is not known.

Technical textiles as a driving force for growth
Far Eastern competition is increasing the pressure to modernize the Turkish textile industry. In the future, industry will have to compete primarily with high-quality products. Growth impulses are currently coming from the sector of technical textiles. According to industry reports, more than 200 small and medium-sized enterprises are already producing technical textiles and nonwovens in Turkey. These textiles and fabrics are being used in the automotive, packaging and cosmetics industries.

In June 2018, the Turkish METYX Group (http://www.metyx.com) invested in its machinery parc. The company is manufacturing technical textiles and has ordered a line of warp knitting machines from the German textile machine manufacturer Karl Mayer. The manufacturer of composite materials is thus increasing its capacity by 12,000 tons of glass and carbon fibers. In recent years, more and more research and development centers have emerged to promote the necessary technology transfer in the industry. The Institute for Technical Textiles at RWTH Aachen University (ITA) founded a research center in Istanbul in October 2016. In the Teknosab industrial zone in Bursa the BUTEKOM research and development center for textile technology was established in 2008. The institute offers training as well as research and development cooperation to and with companies.

However, many medium-sized textile companies often lack the money to invest in modern machinery. The short planning horizon makes an access to research and development more difficult. As a member of the management board of the German-Turkish Chamber of Industry and Commerce, Frank Kaiser has been observing the Turkish business landscape for eight years. He points out that the textile manufacturers, like other medium-sized companies in the country too, often plan in short terms. "In view of the volatile business environment, this is rational," Kaiser explains.

Turkish imports of textile machinery and exchange rate comparison  1)
Year Import from Germany
(in USD million)
Total imports
(in USD million)
Exchange rate
(1 US$ = ?TL)
2009 143 505 1.55
2011 521 1,851 1.67
2013 619 2,211 1.90
2015 382 1,398 2.72
2017 447 1,478 3.65
2018 1) 2) 490 1,774 4.81

1) the slump in the 3rd quarter is not yet visible in the annual figures for 2018; it will not become noticeable until 2019
Sources: UN-Comtrade, TurkStat 2), Bundesbank

 

 

 

 

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

CZECH TEXTILE INDUSTRY CONTINUES ITS UPSWING © tokamuwi / pixelio.de
22.08.2017

CZECH TEXTILE INDUSTRY CONTINUES ITS UPSWING

  • Sales are increasing since four years
  • Developing of up new markets abroad

Prague (GTAI) - Czech textile and clothing manufacturers are among the winners of the good economic situation. The trend towards domestic products and the rising purchasing power are inspiring the companies. At the same time they benefit from a growing demand from abroad. According to the association ATOK the turnover of the sector rose to Kc 53,5 billion (just under EUR 2 billion) in 2016. It was the fourth year of growth in a row.

  • Sales are increasing since four years
  • Developing of up new markets abroad

Prague (GTAI) - Czech textile and clothing manufacturers are among the winners of the good economic situation. The trend towards domestic products and the rising purchasing power are inspiring the companies. At the same time they benefit from a growing demand from abroad. According to the association ATOK the turnover of the sector rose to Kc 53,5 billion (just under EUR 2 billion) in 2016. It was the fourth year of growth in a row.

An important growth driver of the Czech textile industry is the automotive sector. The largest sales are achieved with technical textiles, and these are mostly used in the over 1.3 million passenger cars, which are rolling in the Czech Republic off the assembly lines every year. The German automotive supplier Borgers is therefore the second largest textile manufacturer in the country. The company produces textile trims for trunks, passenger compartments or underfloor at four locations in the Plzen region. About 200,000 parts leave the factory every day for VW, BMW, Mercedes, Porsche, Bentley and Rolls Royce. The largest textile company in 2016 was the company Juta with productions of geotextiles, insulation materials and packaging material.

The positive dynamism of textile manufacturers is continuing in 2017. According to statistics from January to May the production index rose by 3% and the value of new orders even rose by 5%. On the other hand the garment manufacturers have to announce sales reductions following the strong year before. Future growth could be curbed by rising wages, the appreciation of the national currency and a lack of staff.

Sales development of the Czech textile and clothing industry
Year Sales in Mrd. Kc .thereof textiles in Kc bn. .thereof Clothing in Kc bn. Change total sales in comparison to  previous year  in %
2013 47.1 40.7 6.4 2.6
2014 51.0 44.6 6.4 8.3
2015 52.4 45.4 7.0 2.7
2016 53.5 46.2 7.3 2.1

Sources: Association of the Textile, Garment and Leather Industry (ATOK), Calculations by Germany Trade & Invest

Even more dynamically than the sector's profits the foreign trade has developed in 2016. Since the Czech Republic is being used as a transit and logistics location by international trading companies, the volume of exports is significantly higher than the total turnover of the domestic manufacturers. According to the ATOK association, in 2016 textiles were exported for Kc 63.8 billion (EUR 2.36 billion) and clothing for Kc 47.2 billion (EUR 1.74 billion). This was an increase of 5% for textiles and 31% for clothing. Import of textiles rose by 6% to Ks 59.3 billion (EUR 2.19 billion), import of garment rose by 20% to Kc 67.9 billion (EUR 2.51 billion).

This has somewhat reduced the trade deficit in clothing. In the major fashion chains however foreign goods still dominate. Czech vendors have little chance of coming to the shelves and taking part in the fast fashion cycles and fast fashion changes. The association ATOK estimates that they have a market share of a maximum of 20% in clothing retailing. As a result, domestic manufacturers are increasingly focusing on direct selling, either via internet shops or through their own sales outlets. They also strengthen the building of their own brands, after having carried out commission work for international fashion groups for many years. Customized products are in the trend also. Some companies that have hitherto mainly served the home market are now looking increasingly at foreign markets. The swimwear and underwear producer Timo from Litomerice, for example, wants to supply to Germany also in the future, reported by the economic newspaper Hospodarske noviny.

Textile companies invest more and more abroad
The East Bohemian specialist for bathroom textiles, Grund, already has a sales company in Lower Saxony. The carpet manufacturer is now planning to build a factory in the south of the USA and intends to invest more than USD 1 million. Silon from South Bohemia, which is one of the largest manufacturers of polyester fibers in Europe, is building a manufacturing plant for plastic compounding in the USA in order to reduce the delivery time for raw materials and to be closer to the customer. There are interesting developments in the research area. The institute VUTS from Liberec, has developed, together with Taiwanese scientists, a pneumatic loom that can produce 3D fabrics made of high-strength polyester silk. The material can be used for boat building or flood protection. The machine should be presented for the first time at a trade fair in 2019. Until then the textile manufacturer Veba from Broumov wants to have developed a new 3D fabric. It is intended to reinforce matrices.

After the extra economy in 2015 due to the last-time levy of EU funds from the old funding period, investments in the textile industry had shrunk in 2016. According to the Ministry of Economic Affairs the manufacturers invested some Kc 2.78 billion (around EUR 100 million), a sixth less than in the previous year. On the other hand, investments in the garment sector were up by a quarter to over Kc 850 million (around EUR 31 million). The development was also reflected in the import figures for textile machines. At the beginning of the year 2017 imports rose again in some product groups, thus opening up sales opportunities for finishing manufacturers. German suppliers account for roughly half of the machinery supply for the textile industry.

In April 2017 the Moravian nonwoven fabric manufacturer Retex had issued a tender for a production plant for over EUR 7 million. In Zatec near Usti nad Labem Unifrax wants to build a production plant for silicate fabrics. Juta is currently investing around EUR 13 million in the production of grids and plans to get the plant expansion at Dvur Kralove into operation in autumn 2017. The Japanese Toray Textiles is expanding its factory for airbag fabrics and printing plates in Prostejov over the next four years. The North Moravian supplier of outdoor clothing, Tilak, is also expanding its production facilities in Sumperk.

Import of selected textile machines to the Czech Republic (EUR 1,000)
Maschinengruppe / HS-Position 2015 2016 January to May 2017 Change*)
Jet-spinning machines / 8444 15,369 5,502 842 -81.2
.thereof from Germany 9,829 4,509 20 -99.5
Spinning machines / 8445 8,838 15,858 1,922 -51.1
.thereof from Germany 5,017 6,743 164 -91.1
Weaving looms/ 8446 12,860 4,277 1,882 -17.5
.thereof from Germany 2,247 687 36 n.a.
Knitting machines / 8447 11,965 6,737 2,672 14.7
.thereof from Germany 6,092 1,979 1,632 54.5
Auxiliary machines / 8448 73,358 88,360 42,830 27.9
.thereof from Germany 52,601 54,897 26,823 16.2
Nonwoven and felt machines 19,628 2,676 846 -45.8
.thereof from Germany 6,741 1,313 245 -79.0
Cleaning, dying and pressing machines / 8451 108,080 105,410 44,762 26.1
.thereof from Germany 50,325 47,580 17,714 1.7
Sewing machines / 8452 17,895 20,056 8,172 10.1
.thereof from Germany 6,340 6,353 2,081 -12.2
Machines for fur, leather processing or shoe production / 8453 4,386 2,626 1,056 12.9
.thereof from Germany 347 198 68 25.9
Total 272.379 251,501 104,984 14.2
.thereof from Germany 139.540 124.260 48,783 -4.0

Source: Czech Statistical Office

 

Central America imports more textile machinery © Oliver Brunner/pixelio.de
07.03.2017

CENTRAL AMERICA IMPORTS MORE TEXTILE MACHINERY

  • Large-scale projects in Honduras
  • More vertical integration strived

Following the US President's decree against the Pacific Pact TPP, Central America's textile and clothing industry counts for its main market on further tariff advantages compared to the Asian competition. Next to the so far dominating subcontracting work the sector wants to intensify the production of pre-products, what requires more and better textile machinery for this purpose. Guatemala is already investing, while Nicaragua will continue to stay mainly with sewing and tailoring. The largest technology market was lately El Salvador.

  • Large-scale projects in Honduras
  • More vertical integration strived

Following the US President's decree against the Pacific Pact TPP, Central America's textile and clothing industry counts for its main market on further tariff advantages compared to the Asian competition. Next to the so far dominating subcontracting work the sector wants to intensify the production of pre-products, what requires more and better textile machinery for this purpose. Guatemala is already investing, while Nicaragua will continue to stay mainly with sewing and tailoring. The largest technology market was lately El Salvador.

Honduras wants to expand its textile and clothing industry strongly. The aim of the "20/20" program is to significantly increase exports and with it new jobs. One focus should be the production of sportswear and other synthetic clothing, including pre-products. Central America's "largest factory for polyester yarn" (DTY) went into construction at the end of January 2017 in Choloma. It is expected to cost USD 73 million and produce 25,000 tons per year. According to Mario Canahuati, a Honduran shareholder of the investor United Textiles of America, an additional USD 120 million factory for synthetic materials and garments should be added later.

Observers believe the sector's expansion plans are realistic because it can stem the relatively large investment in the synthetic fiber production. In the Honduran textile industry there are many joint ventures with US partners which can raise capital in North America. In the other countries of the region the sector companies are more strongly medium-sized. They are depending more on the local capital market with its high interest rates and restrictive banks.

Honduras, Guatemala and El Salvador invest

According to a machine representative the textile manufacturers in Guatemala will invest more in dyeing machines in order to become more independent from suppliers and keep the quality better under control. According to Invest in Guatemala the sector there delivers higher quality end products than the competition from El Salvador and Honduras, on the US market clothing from Guatemalan is almost twice as expensive.

The textile industry in Guatemala and El Salvador is more vertically integrated than in Honduras: it produces relatively quite a lot of yarn and fabrics by itself and is less dependent of the typical subcontracting (Maquila) method, which only imports textiles and re-exports them as finished clothing. Honduras mainly processes imported synthetic fiber yarns, which the country - like El Salvador - manufactures partly by itself.

The best market in Central America for a large German textile machine manufacturer is currently El Salvador, which imports the most technology in the region. The customers are quite innovative and work more concept orientated, which makes the cooperation easier. Due to increased yarn prices, some weaving companies are currently investing in spinning machines, a machinery salesman says. According to the Central America Strategic Sourcing Review, more than 20% of the factories are "vertically integrated".

In the opinion of machine representatives, Nicaragua is still concentrating on subcontracting. Investors are reluctant to spend larger sums which would be needed for modern textile  manufacturing. In addition there is a lack of good specialists for the foreseeable future, the level of training is only sufficient for easier sewing and clothing manufacturing. In Panama the textile industry does not play a nameable role; in Costa Rica, which is also relatively prosperous, the sector is larger, but exports little.

Central America’s textile and clothing industry

Indicator Guatemala Honduras El Salvador Nicaragua
Number of manufacturers 215 125
(2015)
n.a. n.a.
Employees (direct) 90,000 (2013) 99,100
(2015)
75,000
(estimation)
70,000
(estimation, 2014)
Clothing exports to the USA
(2016, bn. US$) *)
1,380 2,554 1,941 1,472
Production of synthetic fibres
(2016, 1,000 t)
0 26,5 17,2 0
Installed capacity (2015, 1,000 Units)
Spindles 153 n.a. 250 40
OE-Rotors 21 n.a. 1.4 n.a.
Weaving looms 3.9 n.a. 3.2 0.65

*) Costa Rica 29 Mio.; Clothing = almost total industry exports; 80% of exports are for the US; data from US import authority. Source: ITMF; national associations and authorities; Press

Central America Textile companies are usually located in a free zone and produce for export, mainly the US. In Honduras, according to a study by the Central Bank, Maquila - with textile / clothing as the largest segment - produced 36% of pre-products for other contractors and 64% of final products, which in turn were exported up to 99%.

US protectionism could even help

The protectionism, which is announced in the main market USA, develops some optimism to Central America's textile industry. As listed in “Honduras 20/20” it now can deliver more cheaply to the US than the competition from China or Vietnam because of existing trade agreements. At an - now not targeted anymore - omission of cutting US customs duties for Vietnam, it would be much more expensive. In addition, a garment factory in Honduras is able to deliver to the US in two days, a delivery from Vietnam requires twenty days. In the today so very fast fashion world, this is the main reason why Wal-Mart & Co. are ordering massive masses in Central America.

Until now, Central America has been supplying mainly cheap clothing for the US mass market, but, as a German machinery exporter is hoping, they will try to settle themselves against the Asian competition with higher valuable goods. For this the Central American manufacturers would need better technology, which preferable comes from Europe. In the view of other representatives Central America will need in future productive machines that are cheap at the same time. Chinese machines with European components are a big competition.

Machinery imports rising

Central America Imports of textile machinery and sewing machines have risen by one-third to over USD 130 million between 2013 and 2015. In addition, according to the International Textile Manufacturers Federation (ITMF), Honduras has imported 170 round knitting machines in 2014 and 2015, Guatemala only 26, El Salvador 23 and Nicaragua ten. Germany was the fifth most important delivery country. Leading supplier was the USA. For Guatemala, with its many Korean-owned textile companies, Korea (Rep) was the main supplier.According to ITMF, Central America will shift its investments somewhat away from the clothing area towards the textile sector. Already today, the representative of a German manufacturer says: "We are currently selling very well in Mexico and Central America." 

Central America‘s1) imports of textile machinery (bn. US$) 2)

SITC Product group /Country / Country of delivery 2013 2014 2015 20163)
  total 97.5 116.0 131.6 70.8
72472) Machines for washing, drying, dying a.o. 25.7 27.9 35.4 9.4
724.35 Other sewing machines 21.0 24.2 29.2 18.8
7245 Weaving looms and knitting machines 21.7 23.7 28.8 20.9
7244 Spinning machines 11.5 21.7 19.8 11.6
7246 Auxiliary machines 14.4 12.8 13.8 8.1
72492) Parts 3.1 5.7 4.6 2.0
  USA 32.5 33.4 27.9 12.7
  Italy 8.8 10.6 20.8 17.5
  China 9.1 12.1 15.4 6.6
  Korea (Rep.) 6.2 9.5 12.1 0.5
  Germany 9.6 4.0 10.9 6.9
  Japan 3.9 7.2 7.7 6.0
  El Salvador 48.5 55.4 70.9 70.8
724.35   12.9 16.4 20.5 18.8
7245   7.0 11.7 16.1 20.9
72472)   11.3 12.0 12.9 9.4
7244   6.5 5.1 11.2 11.6
7246   9.4 8.6 7.9 8.1
  Guatemala 28.9 32.6 44.8 n.a
72472)   5.3 6.2 12.4 n.a.
7245   8.9 8.3 11.2 n.a
7244   3.5 4.9 7.2 n.a
724.35   5.8 5.9 6.8 n.a
7246   4.4 3.7 5.5 n.a
  Costa Rica 13.9 21.3 10.2 n.a
72472)   5.2 5.0 5.7 n.a
7244   1.4 11.4 1.3 n.a
7245   5.1 3.0 1.2 n.a
724.35   1.4 1.2 1.2 n.a
  Panama 6.1 6.8 5.8 n.a
72472)   4.0 4.7 4.3 n.a

1) without Honduras and Nicaragua; 2) SITC 724, without household sewing machines, (724.33), household washing machines, (724.71), machines for dry-cleaning(724.72), leather machines(7248), parts for household washing machines; 3) El Salvador only
Source: UN Comtrade

CZECH TEXTILE AND CLOTHING INDUSTRY INVESTS © W. Behrends/ pixelio.de
01.03.2016

CZECH TEXTILE AND CLOTHING INDUSTRY INVESTS

  • 2015 Sales reached eight-year high
  • Particularly manufacturers of technical textiles successful

Prague (gtai) - The Czech textile and clothing industry is still on the upswing. Particularly in niche segments and with technical textiles the manufacturers achieve rising revenues since years. The investment climate in the sector therefore has been improved, the equipment suppliers are benefitting. German manufacturers of machinery for the textile and clothing industry were able to expand their exports to the Czech Republic in 2015 by one fifth.

  • 2015 Sales reached eight-year high
  • Particularly manufacturers of technical textiles successful

Prague (gtai) - The Czech textile and clothing industry is still on the upswing. Particularly in niche segments and with technical textiles the manufacturers achieve rising revenues since years. The investment climate in the sector therefore has been improved, the equipment suppliers are benefitting. German manufacturers of machinery for the textile and clothing industry were able to expand their exports to the Czech Republic in 2015 by one fifth.

With Czech Crowns 52.4 billion (Kc; EUR 1.9 bn) the Czech textile industry achieved so much revenue in 2015 as not anymore in the last eight years. According to the statistics office the clothing manufacturers output rose by 11%, that of textile manufacturing by 3%. Very good filled are the order books. For companies in the clothing industry the volume of new orders rose by over 13% in 2015, in the textile factories
by 4%.

According to the announcement of the professional association ATOK, the sector would have developed even better, if the growth markets in Asia and Africa would have not weakened. But fortunately the loss became offset by the traditional markets Germany, Italy, Poland, Slovakia, Austria and France. According to ATOK the textile segment of the Czech Republic exported goods worth equivalent of almost EUR 2.5 billion in 2015, corresponding to a trade surplus of almost EUR 30 million. In clothing, the country recorded a negative balance. Here goods were imported for Euro 2 billion and exported of EUR 1.3 Billion.

Sales Development of the Czech Textile and Clothing Industry
Year Sales in Kc bn. Change to previous year (in %)
2007 55.0 1.5
2008 46.1 -16.2
2009 41.1 -10.8
2010 41.3 0.5
2011 46.2 11.9
2012 45.9 -0.6
2013 47.1 2.6
2014 51.0 8.3
2015 52.4 2.7
2007 55.0 1.5

Source: Association of Textile, Garment and Leather Industry (ATOK, http://www.atok.cz)

Particularly in niche segments the clothing manufacturers can maintain themselves in their position. For example Triola from the northern Bohemia Horni Jiretin specializes in lingerie and successfully with oversizes. Also manufacturers like Timo, Pleas, Upavan or Linia can exist with underwear products on the market. According to reports from the business paper Hospodarske noviny Timo sells 200.000 pc. per year. The company offers among others prosthetic lingerie against breat tumors.In the next two years the family operation will invest more than EUR 700,000 in new technologies at the production site Litomerice (North Bohemia).

Hats and hoods are demanded in 30 countries

Another family company, Kama from Prague, specializes in headwear. With hats, scarves, headbands, gloves or hoods it makes now more than EUR 1 million per year and delivers to 30 countries. In Moravia-Silesia Sky Paragliders from Frydlant nad Ostravici invests around EUR 4 million in a weaving mill including a research center to develop new materials. The company produces emergency parachutes and rescue systems and belongs with annual revenues of EUR 2.7 million (2014) to the top ten manufacturers worldwide. It processes 200 kilometers of fabrics annually.

Thanks to favorable wages and the proximity to areas with good purchasing power smaller suppliers of made to measure products developed well. The company Janek from Roznov in Zlin produces,for example, 30,000 individually tailored shirts per year. Also suits and costumes belong to the assortment. Janes buy the yarn from a German yarn manufacturer which produces in the Czech Republic.

Czech Republic's largest textile and clothing manufacturers (selection, sales in million Kc) 1)
Company/location Product portfolio Sales
2013
Sales
2014
Change
1)
Webseite
Borgers CS/Plzen Nonwovens for
automotives
5.038 10.879 115,9 http://borgers.cz
Juta/Dvur Kralovenad Labem Nonwovens for
automotives
5.568 6.618 18,8 http://www.juta.cz
Nova Mosilana /Brno Fancy dress fabrics 2.952 3.285 11,3 http://www.novamosilana.cz
Pegas Nonwovens/Znojmo Nonwovens 2.273 2.388 5,1 http://www.pegas.cz
Kordarna Plus/Velka nad Velickou Corduroy fabrics
Technical Textiles
for conveyors
2.195 2.287 4,2 http://www.kordarna.cz
Veba, textilni zavody/Broumov Home – and Clothing
fabrics, Brocat
2.124 2.160 1,7 http://www.veba.cz/cs/
Johnson Controls/
Strakonice 2)
Seatcovers for
automotives
1.722 1.865 8,3 http://www.johnsoncontrols.cz
Fibertex Nonwovens/
Svitavy
Nonwovens 958 1.128 17,7 http://www.fibertex.com
Pleas / Havlickuv
Brod
Under – and Nightwear 1.073 1.123 4,6 http://www.pleas.cz
Mehler Texnologies/
Lomnice nad
Popelkou 3)
Fabrics for tents,
boats, canvas, sunumbrellas
895 975 8,9 http://www.mehlertexnologies.
cz
Nejdecka cesarna
vlny/Nejdek 4)
Processing of rawwool 800 692 -13,5 http://www.ncv.cz
Lanex/Bolatice Ropes, threats,
artificial turf
627 670 6,7 http://www.lanex.cz
Trevos/Kostalov Polypropylen-
Staple-fiber
576 639 10,9 http://www.monticekia.cz
Tessitura Monti Cekia/
Borovnice u Stare
Paky
Cotton shirt fabrics 609 568 -6,7 http://www.monticekia.cz
Svitap J.H.J./Svitavy Tents, canvas, Microfibers,
Filtration
497 436 -12,3 http://www.svitap.cz

1) Change 2014 / 113 in%; 2) Fiscal year October 2012, 2013 till September 2013, 2014; 3) December 2012, 2013 till November 2013, 2014; 4) April 2013, 2014 till March 2014, 2015
Sources: Annual company reports, Trade register, Hospodarske noviny, Magazine Ekonom, CzechInvest, Association ATOK

The most actively trading companies in the textile sector are producing mostly for industrial consumers. Largest industry representative is the automotive supplier Borgers from Bocholt, which produces textile moldings, paneling, insulation and curtains for vehicles at four locations near Plzen. The second largest textile company Juta achieves half of its revenue from construction materials such as drainage mats, erosion control fabric or roof insulation. Moreover Juta makes a good business with packaging nets for potatoes or Christmas trees. One other growth area is artificial turf. The company invests nearly EUR 20 million every year, mainly in new production equipment.

Textile Machinery ordered for 250 m Euro

Other companies are expanding too. The manufacturer of workwear Waibel has expanded its site in2015. In Zdar nad Sazavou near Jihlava own collections and custom made programs are being manufactured. Clothing manufacturer Pleas invests annually over EUR 1 million in its equipment. The company belongs to the top 10 of the sector and produces annually 15 million pieces nightwear for the brands Schiesser and Pleas. The German machinery manufacturer Mayer & Cie. builds a factory for knitting machines in Vsetin. The production is expected to comence in summer 2016. The machines are designed for large manufactures particularly in Asia.

Import of important textile machinery to the Czech Republic ( EUR 1,000)
Maschinery group / HS-Position 2014 2015 Veränderung in %
Jet-spinning machines / 8444 177 15.369 8.583,1
..from Germany 59 9.829 16.559,3
Spinning machines / 8445 12.780 8.838 -30,8
..from Germany 6.591 5.017 -23,9
Weaving machines / 8446 13.357 12.778 -4,3
..from Germany 7.498 2.166 -71,1
Knitting machines / 8447 10.556 11.332 7,4
..from Germany 2.872 6.092 112,1
Auxiliary machines / 8448 75.082 72.178 -3,9
..from Germany 48.245 51.765 7,3
Machines for felting and nonwovens / 8449 3.349 16.306 386,9
..from Germany 949 6.741 610,3
Cleaning-, dying and ironing machines / 8451 83.874 105.825 26,2
..from Germany 44.671 50.234 12,5
Sewing machines / 8452 14.718 17.834 21,2
..from Germany 4.780 6.319 32,2
Machines for leather and fur processing resp. footwear production /
8453
2.867 3.704 29,2
..from Germany 278 347 24,8
Total 216.760 264.164 21,9
..from Germany 115.943 138.510 19,5

Source: Czech Statistical Office

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