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04.01.2022

EU Project: System Circularity & Innovative Recycling of Textiles

SCIRT stands for System Circularity & Innovative Recycling of Textiles. Coordinated by VITO, an independent Flemish research organisation in the cleantech and sustainable development sector, SCIRT is a three year EU-funded project from the Horizon 2020 Programme.

It aims to demonstrate a complete textile-to-textile recycling system for discarded clothing—or post-consumer textiles—involving stakeholders throughout the value chain and focusing on the recycling of natural fibres, synthetic fibres and fibre blends. To reach this goal, the project has set four main objectives.

SCIRT stands for System Circularity & Innovative Recycling of Textiles. Coordinated by VITO, an independent Flemish research organisation in the cleantech and sustainable development sector, SCIRT is a three year EU-funded project from the Horizon 2020 Programme.

It aims to demonstrate a complete textile-to-textile recycling system for discarded clothing—or post-consumer textiles—involving stakeholders throughout the value chain and focusing on the recycling of natural fibres, synthetic fibres and fibre blends. To reach this goal, the project has set four main objectives.

  • Deliver a closed-loop recycling solution for discarded textiles.
  • Stimulate and encourage conscious design as well as production practices.
  • Create new business opportunities by boosting textile value chain activity.
  • Raise awareness of the environmental and social impacts of buying clothes.

Gathering 18 partners from five countries, the SCIRT project held its virtual kick-off meeting in mid-2021 to begin tackling the issue of clothing waste and recyclability, one of the biggest challenges faced in the fashion industry today.

As clothing brands are setting ambitious targets and making promises to incorporate recycled fibres in their products, discarded textiles are piling up in abundance around the globe. Though it would seem that the stars of supply and demand have aligned for this part of the circular economy, the truth is that less than 1% of textile waste is recycled into new textile fibres, according to an Ellen MacArthur Foundation report published in 2017. This miniscule percentage is indicative of a greater problem-achieving circularity in the fashion industry is not just a question of supply and demand, but of the connection between the two. There is a lack of knowledge surrounding the technological, economic and environmental feasibility of recycling fibre mixtures, and a need to align the quality and cost of recycling processes with the demands of textile companies and fashion brands.

SCIRT will develop solutions to support systemic innovation towards a more circular fashion system and bridge this supply-demand gap. To address the demand side of the equation, SCIRT will demonstrate a complete textile-to-textile recycling system for discarded clothing, otherwise known as post-consumer textiles, involving stakeholders throughout the value chain and focusing on the recycling of natural and synthetic fibres, as well as fibre blends. With the support of technical partners and research institutes, clothing brands Decathlon, Petit Bateau, Bel & Bo, HNST and Xandres, will develop, prototype and produce six different representative types of apparel using post-consumer recycled fibres. These include formal and casual wear, sportswear, underwear and uniforms. Through this endeavour, SCIRT will prioritise quality and cost-effectiveness in order to ensure market confidence and encourage the broad uptake of post-consumer recycled fibres.

From a non-technological perspective, SCIRT will develop supporting policy measures and tools to facilitate the transition towards a circular system for apparel. This includes a framework for an eco-modulated Extended Producer Responsibility (EPR) system and a True Cost Model to quantify circularity and increase value chain transparency. Special attention will also be given to the consumer perspective. To this end, Citizen Labs engaging consumers in various European locations, as well as a wider online engagement platform, will be developed to engage citizens throughout the project in order to understand the perceptions, motivations and emotions shaping their behaviour regarding the purchase, use, and disposal of textiles.

Over the next three years, SCIRT project partners will work to overcome current technological, economic, socio-economic and regulatory barriers faced in textiles recycling to achieve a real, lasting circular fashion economy.

2021:
The SCIRT project kicks off and partners identify the current state-of-the-art in apparel design, production and recycling, challenges and market trends, and stakeholder needs.

2022:
Designing and testing a fibre-to-fibre system by producing recycled yarns and filaments, free from harmful substances.

2023:
Formal wear, casual wear, sportswear, underwear and uniforms will be designed and produced using the optimized yarns developed.

Partners

  • Fashion companies: Bel&Bo, HNST, Decathlon, Xandres, Petit Bateau
  • Research organisations: VITO, CETI, Prospex Institute
  • Universities: BOKU, TU Wien, ESTIA
  • Industry players: Altex, AVS Spinning - A European Spinning Group (ESG) Company, Valvan
  • SMEs: Circular.fashion, FFact
  • Non-profit organisations: Flanders DC, IID-SII

 

ALTEX
ALTEX is a textile recycling company based in Germany that employs state-of-the-art machinery to recycle textile waste into new high-quality products. Its products include teared fibres, natural fibres, synthetic fibres and fibre blends among others.

Bel & Bo
Bel&Bo is a family-owned Belgian business with about 95 retail stores located throughout Belgium. Its mission is to offer colourful, fashionable and sustainably produced clothing for men, women and children at an affordable price.

CETI
The European Center for Innovative Textiles (CETI) is a non-profit organisation dedicated to conceiving, experimenting with and prototyping innovative textile materials and products through both private and collaborative R&D projects.

circular.fashion
circular.fashion offers software for circular design, intelligent textile sorting and closed-loop recycling, including the Circular Design Software and the circularity.ID®, as well as training and hands-on support to fashion brands in their transitions.

Decathlon
With over 315 stores in France, and 1,511 around the world, Decathlon has been innovating since 1976 to become the main player for athletic people. It has been engaged in reducing its environmental impact through a number of actions.

ESG
The European Spinning Group (ESG) is a textile group based in Belgium that offers a range of yarns produced with a highly technological open-end spinning mill for different applications, such as for interiors, fashion and technical textiles.

ESTIA
ESTIA is a French institute that has provided education and training in the areas of industrial technologies for 20 years. Since 2017, ESTIA has had a program focused on new materials and disruptive process in the fashion and textile industry.

FFACT
FFact is a unique group of management consultants that facilitates the implementation of sustainability from a business perspective, and translates facts into useful management information. FFact is based in the Netherlands and Belgium.

Flanders DC
The Flanders District of Creativity, a non-profit organisation based in Belgium, informs, coaches, promotes and inspires creative entrepreneurs in various sectors, including the fashion industry, who want to build or grow their business.

HNST
HNST is a Belgian circular denim brand that recovers post-consumer denim and recycles it into new fabric in the EU, creating durable and 100% recyclable jeans that use 82% less water and emit 76% less carbon dioxide than conventional jeans.

Petit Bateau
Petit Bateau is a French apparel brand that specialises in knit products. As a vertical company, Petit Bateau carries out its own knitting, dyeing, making up and store management with the support of its 3,000 employees.

Prospex Institute
The Prospex Institute aims to promote the participation of citizens and stakeholders in socially relevant decision-making dialogue and development by engaging with theorists and practitioners both in Belgium and abroad.

IID-SII
The Sustainable Innovation Institute is a French non-profit association based in Paris. Initiated by LGI, a French SME, the purpose of IID-SII is to act as a think and do tank on sustainable innovation to support the adoption of novel solutions.

TU Wien
TU Wien is an open academic institution where research, teaching and learning have taken place under the motto “Technology for people” for the past 200 years. One of its key areas of research is on recycling technology and fibre innovation.

BOKU
Research at the Institute for Environmental Biotechnology of BOKU based in Vienna, Austria focus on the exploitation of enzymes as powerful biocatalysts for biomaterials processing within recycling applications.

Valvan
Valvan Baling Systems has 30 years of experience in designing and constructing custom-made machinery, specialising in Baling Machines and Sorting Facilities for fibre producers, collectors, sorters and recyclers of textiles.

VITO
VITO, a leading independent European research and technology organisation in the cleantech and sustainable development sectors, aims to accelerate the transition towards a sustainable society by developing sustainable technologies.

Xandres
Xandres is a brand inspired by and for women. It is rooted in a highly respected tradition of fashion, driven by quality and created for the life women lead today. Xandres offers innovative designs with respect for luxury and the environment.

09.03.2021

Functional Textiles Shanghai by PERFORMANCE DAYS celebrates its Chinese premiere

Design & Development GmbH Textile Consult, founder and trade fair organiser of PERFORMANCE DAYS in Munich, is eyeing the new year with a lot of hope. After the launch of Functional Fabric Fair by PERFORMANCE DAYS in New York City and Portland together with Reed Exhibitions, PERFORMANCE DAYS is further expanding its portfolio. In cooperation with Tengda Exhibition, the foundations have been laid for a new trade fair for functional textiles in Shanghai. On the 28th and 29th of September 2021, the FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS will premiere at the renowned Shanghaimart Exhibition Center, offering ample space for future trends displayed by more than 100 exhibitors.

Design & Development GmbH Textile Consult, founder and trade fair organiser of PERFORMANCE DAYS in Munich, is eyeing the new year with a lot of hope. After the launch of Functional Fabric Fair by PERFORMANCE DAYS in New York City and Portland together with Reed Exhibitions, PERFORMANCE DAYS is further expanding its portfolio. In cooperation with Tengda Exhibition, the foundations have been laid for a new trade fair for functional textiles in Shanghai. On the 28th and 29th of September 2021, the FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS will premiere at the renowned Shanghaimart Exhibition Center, offering ample space for future trends displayed by more than 100 exhibitors.

As the new year is entered, the PERFORMANCE DAYS team looks forward with great optimism and confidence to the launch of the new fair for functional textiles - the FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS - in Shanghai. China counts as one of the fastest growing and more important future markets worldwide, especially when it comes to functional apparel. The oriental gateway is proving to be innovative, trendsetting, and more recently, increasingly sustainable.

This development is also reflected in the activities of yarn and fabric producers, with local sportswear brands enjoying significant growth. One can be particularly proud of the cooperation with Tengda Exhibition, which is renowned for providing professional services for manufacturers and trading companies in the textile, fibre and various apparel segments. Their services range from fairs to sourcing events in China, Japan, Spain, Great Britain and Turkey.

The premiere of FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS will be held at Shanghaimart Exhibition Center on the 28th and 29th of September. Here too, a conscious decision was made for specifically choosing it as an influential trade fair and trading centre. At present, almost 1.000 companies from more than 20 countries and regions have set up offices and showrooms on site, most of them renowned industry experts from the textile and fabric branches.

Qualitative, informative & innovative: Shanghai fair borrows from the Look & Feel of PERFORMANCE DAYS
The FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS event team will transfer the already established concept of PERFORMANCE DAYS from Munich to Shanghai. This will lend the fair in China not only the Look & Feel of a familiar concept, but above all the same aspirations in terms of quality. And indeed with a total of 5.300 square metres, more than 100 Chinese and international exhibitors will have sufficient exhibition space. In line with this, the fair organisers wish to guarantee industry visitors to the fair a balanced assortment of top brands from the world of functional textiles.

The fair will focus on the latest trends and innovations from the world of textiles, yarns, membrane technologies and accessories for functional sportswear, workwear, performances wear and lifestyle wear. Demand is accordingly high, with top manufacturers such as Romrol, Sanchuan and Winsun confirming their participation along with other well-known brands such as Anta, Bosideng, Decathlon, Descente, Eral, Fila Hotwind, Icicle, Jeep, Kailas, Kappa, Li-Ning, Peace Bird, Peak, Semir, Skechers, Toread, Uniqulo, Zuczug and 361°, to name a few.

As is usual at the trade fair in Munich, there will also be an informative supporting program with exciting expert talks and discussion panels on sustainable and industry-relevant topics. The centrepiece of the fair, the PERFORMANCE FORUM, rounds off the comprehensive package. Materials from exhibitors curated on-site will be displayed on this specially designed platform. Trade fair general manager Marco Weichert had this to say: “We are thrilled to be starting the new year with such inspiring new projects. The launch of FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS in September is the result of many years of monitoring of the Asian market and its increasing demand for curated and high quality sustainable offerings. We are especially pleased about the partnership with Tengda Exhibition, who are real professionals in this field. We are absolutely convinced that the PERFORMANCE DAYS concept, which we will adopt in Shanghai, will be very well received by local trade fair visitors and exhibitors.”

Noel Tian, Managing Director, Tengda Exhibition, adds: “The functional apparel market in China is growing so fast, the brands here need one professional, focused and high class platform for functional textiles just like PERFORMANCE DAYS. We are really excited to launch FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS while adopting 100% the PERFORMANCE DAYS concept in the special new year 2021. It is a great honour to have this partnership with Design & Development GbmH Textile Consult and their world famous trade fair brand.“

FUNCTIONAL TEXTILES SHANGHAI by PERFORMANCE DAYS
September 28-29th, 2021
Shanghaimart Exhibition Center No.99 Xingyi Road,Chang Ning District,Shanghai China
Contact:
info@functionaltextilesshanghai.com or +86-21-60493344.

Source:

PERFORMANCE DAYS functional fabric fair

PIXABAY
27.11.2018

EGYPT'S TEXTILE AND CLOTHING SECTOR FACING MODERNIZATION

  • State enterprises get better equipment

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

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

  • State enterprises get better equipment

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

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

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

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

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

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

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

n.a. = not available
Source: Comtrade

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

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

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

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

Source: UN Comtrade

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

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

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

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


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

 

More information:
GTAI Ägypten
Source:

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

30.01.2018

TEXTILE AND CLOTHING MANUFACTURERS INVEST IN EGYPT

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

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

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

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

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

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

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

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

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

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

Source: UN Comtrade

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

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

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

Source: UN Comtrade

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

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

19.09.2017

RUSSIA'S APPAREL AND TEXTILE INDUSTRY IS BOOMING

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

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

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

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

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

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

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

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

Current projects in the clothing and textile industry in Russia
Project Investition
(Mio. Euro)
City / Region Completion Company
Construction of a high-tech center 312.5
(1st phase)
Rostow 2019
(1. Phase)
Gloria Jeans, http://www.gloria-jeans.ru
Construction of new facilities for the production of textiles 17.9 Iwanowo 2020 Faberlic, http://www.faberlic.ru
Construction of a textile factory for the segment HoReCa 17.1 Rostow n.a. Rapira, ooorapira.ru
Construction of new facilities for manufacturing of high tech fabrics 8.5 Perm 2018 Tschajkowski Textile, http://www.textile.ru
Construction of production facilities terry goods  7.8 Gebiet Kaliningrad n.a. Rapira, ooorapira.ru
Construction of a factory for the production of technical textiles 5.9 Pskow 2018 Strimteks, http://www.strimteks.ru
Construction of facilities for medical materials  5.7 Iwanowo 2020 Navteks, http://navteks.narod.ru
Construction of facilities for the production of speciality clothing 4.6 Perm n.a. Tschajkowski Textile, http://www.textile.ru
Facilities for the production of linen yarn  1.7 Rschew, Gebiet Twer n.a. Rshewskaja Lnotschesal-naja Fabrika, http://izolnarzhev.ru/new/

Source: Research of Germany Trade and Invest

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

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

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

Textile and clothing production in Russia
Description of goods 2014 2015 2016 Veränderung 2017/2016 *) (in %)
Cotton fiber (mio. bales) 106.0 111.0 129.0 8.9
Chemical fiber (1.000 t) 128.0 136.0 152.0 10.3
Synthetic fiber (1.000 t) 20.3 15.1 21.2 -12.0
Fabrics (mio. sqm) 3,907.0 4,542 5,409 11.8
.therof from:        
.Cotton 1,187.0 1,176.0 1,162.0 0.4
.Natural silk (1.000 sqm) 192.0 253.0 157.0 8.9
.Wool (1.000 qm) 11.5 9.3 10.5 18.7
.Linen 31.4 25.9 25.5 10.7
.Synthetic fiber 204.0 237.0

282.0

22.9
.Nonwoven fabrics (except wadding) 2,461.0 3,084.0 3,904.0 15.4
Bedlinen (mio sets) 64.4 59.8 58.6 0.9
Carpets (mio. sqm) 17.1 22.6 22.4 -14.8
Knitwear (1.000 t) 7.6 14.2 k.A. 25.5
Stockings and socks (mio. pair) 207.0 199.0 213.0 -7.6
Coats (1.000 pc.) 1,239.0 989.0 1,200.0 -8.8
Men’s suits (mio. pc.) 5.4 4.7 4.0 -4.0
Work wear & uniforms for men (mio.pc.) 22.8 20.7 22.0 28.9

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

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

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

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

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

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

More information:
Russia
Source:

Hans-Jürgen Wittmann, Germany Trade & Invest www.gtai.de