Textination Newsline

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

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

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

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

Production is recovering

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

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

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

Rising foreign trade expected

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

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

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

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

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

Finishing equipment imports show little dynamics

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

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

• Market study “Lightweight Construction as Innovation Factor”: Presentation at COMPOSITES EUROPE
• 21 September: Focus Day Automotive

No other industry has drawn more public attention to glass- and carbon-fibre reinforced plastics (GFRP/CFRP) than the automotive indus-
try. Next to the aerospace industry, it’s one of the innovation and growth drivers for composites. The great significance of composites for the automotive industry must be credited to the continuing lightweight construction trend. From 19 to 21 September, COMPOSITES EUROPE in Stuttgart will show how the composites industry can support automakers and their suppliers in this area. Programme highlights include the Focus Day Automotive and the Lightweight Technologies Forum.

Presentation of the study “Lightweight Construction as Innovation Factor”
When it comes to composites in the automotive sector, modern lightweight construction is the No. 1 topic, according to industry expert Rainer Kurek, CEO of AUTOMOTIVE MANAGEMENT CONSULTING GmbH (AMC) from Penzberg near Munich. After all, he says, it comprises all the aspects of lightweight automotive construction – from concept, functions and joining technologies to materials. The training and consulting company specialises in auto-industry strategies, processes and structures; together with COMPOSITES EUROPE organiser Reed Exhibitions, they will, on 21 September, present the study “Lightweight Construction as Innovation Factor” (“Leichtbau als Innovationsfaktor” in the original German), which takes a holistic and detailed look at the issue. “Created in cooperation with Reed Exhibitions, the market study ‘Lightweight Construction as Innovation Factor’ synthesises the German automotive industry’s knowledge from nearly 150 years of experience”, explains Kurek. “Against the backdrop of increasing environmental and climate-protection requirements, a fragile energy supply and the resulting more stringent resource-conservation targets, it serves to sustainably enhance and strengthen Germany’s role as a centre of innovation.” The developer says he used to think in terms of materials first, but “design engineers today approach lightweight construction with an integrative mindset – with other joining and production technologies as well as with new materials. These days, the typical tasks we get from OEMs are almost always based on integrative lightweight construction.”
 
Positive Outlook
With about a third of the GFRP materials produced in Europe being used in the transport sector, innovations and the current development status of composites for the automotive market will be emphasised in the exhibition halls of COMPOSITES EUROPE 2017, as well. The future looks bright, according to Composites Germany’s latest market survey. No fewer than 46 per cent of responding companies expect this segment to grow. Only 15 per cent anticipate a downturn. The automotive industry isn’t just one of the biggest buyers of thermoplastic composites, it’s also a major purchaser of thermoset materials like SMC. Exhibitors such as Saint Gobain Performance Plastics, capricorn COMPOSITE, Lange+Ritter, SGL TECHNOLOGIES GmbH, ARKEMA France, Cevotec and EMS will be onsite to address the automotive industry’s composites requirements.

Theme day for “motorists”: Focus Day Automotive
What’s more, the entire third day of the trade fair – dubbed the Focus Day Automotive – will be dedicated to visitors predominantly interested in composites for the vehicle industry. A free one-hour guided tour at 11 am on 21 September, for example, will give visitors a comprehensive overview. Stops include the stands of industry-leading companies such as Evonik Industries, Huntsman, the Institute of Aircraft Design at the University of Stuttgart, PHP Fibers, Toho Tenax Europe and Vosschemie. Since the number of participants is limited, it would be advisable to register in a timely manner by visiting: www.composites-europe.com/guided-tours.

The subsequent Automotive Business Lunch taking place at the stand of sponsor Hexion (Hall C2, BO6) at 12 pm will provide an excellent networking opportunity. In addition, expert lectures at the COMPOSITES Forum in Hall 6, Stand B76, will cover automotive basics, trends and innovations. Admission is free of charge for trade fair visitors.
 
Hybrid lightweight construction: The best from different material worlds
Hybrid lightweight construction, which combines metallic materials with composites, is another trend in automotive engineering, as Kurek confirms. In his estimation, it’s imperative to intelligently leverage the strengths of each respective material. “We need to think very carefully about how the different materials can be used in line with the required strength.” Composites, for instance, are great at absorbing tensile forces, while metallic materials are better suited for compressive forces.” This is exactly the issue Kurek sees as COMPOSITES EUROPE’s most critical task: “Even with composites, we long ago moved from ‘either-or’ to ‘both’. Metallic materials have a right to exist just as composites do.”
That’s why the Lightweight Technologies Forum at COMPOSITES EUROPE will provide answers to questions revolving around lightweight construction with other materials like aluminium or steel. The combined exhibition and presentation forum featuring exhibitors such as Kunststoffwerk AG Buchs, Linn High Therm, Schütze, OCSiAL Group, Hexcel Composites and ar engineers will serve as the cross-material interface between metal and composite technologies in structural components.

Trade fair opening event: 3rd International Composites Congress (ICC)
Kicking off COMPOSITES EUROPE 2017 on 18 and 19 September 2017 will be the “3rd International Composites Congress (ICC)” hosted by the trade association Composites Germany in Stuttgart. Current trends, new applications and technologies, and a comprehensive overview of market developments in Europe and worldwide will be the centre of attention at the 3rd ICC. This year’s partner country, South Korea, will be represented with several exclusive speakers.

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

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

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

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

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

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

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

APPEALING TO THE MILLENNIAL SHOPPER: WHAT HOME TEXTILE RETAILERS ARE DOING TO CAPTURE THIS CRITICAL DEMOGRAPHIC
Jennifer Marks,  Editor-In-Chief - Home & Textiles Today Magazine
Moderator - Nina Nadash, Home Textile Manager (Americas) - Lenzing Fibers, Inc.
Despite the fact that Millennials are coming of age in one of the most frenetic economic climates in the past century, research shows almost 3 out of 4 are willing to pay extra for sustainable offerings. Marketers of products and services committed to positive social and environmental impact need to ensure they are communicating their brand message in a way that builds confidence with this critical consumer demographic. Jennifer Marks, Editor-in-Chief of Home & Textiles Today will be on hand to give her perspective on the Millennial market, highlighting the importance of matching your brand message to the personal values of this important consumer group.

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

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

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

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

Product range cleared up

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

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

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

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

Germany leading supplier of textile machines

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

Source: UN Comtade Database

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

Source: UN Comtrade Database

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

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

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

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

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

Full domestic processing of cotton fibers strived

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

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

Supply and cooperation opportunities for 140 individually planned projects

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

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

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

Wide preferences for investors

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

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

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

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

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

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

Source: State Statistics Committee, Tashkent

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

PLANNED ABOLITION OF EU IMPORT QUOTAS ALLOWS MORE FOREIGN COMMITMENTS

Minsk (GTAI) - The textile and clothing industry of the Republic of Belarus faces great challenges. It has to become more efficient, should produce more market-orientated and make greater use of its export potential. The sector has great hopes on the by the European Union planned abolition of quotas for Belarusian textiles and clothing products. There are then more than ever good opportunities for the subcontracting finishing process.

The textile and clothing industry has traditionally been one of the most important sectors of the manufacturing industry in the Republic of Belarus. As a result of the sharp decline of the local purchasing power and of the main export market Russia, the sector has suffered a severe setback in the years 2013 to 2015. Since the second half of 2016 it is on an upswing again. According to preliminary data, the output has risen in 2016 by 4.6% to EUR 1.41 billion compared to 2015. Produced were 146.8 million sqm. of fabrics, 40.4 million pieces of knitwear, 147.0 million pairs of stockings and 19.9 million sqm. of carpet products.

Nevertheless the textile and clothing industry continues to suffer from a weak capacity utilization, an inadequate management and marketing as well as from a considerable backlog in the technological renewal of the equipment park. The implementation of an industry support program for the period from 2016 to 2020 should provide for a remedy. The program comes from the Belarussian State Group for production and sale of goods of the light industry Bellegprom. (http://www.bellegprom.by).

Sector program shows planned projects until 2020

Under the umbrella of the State Group 17 textile, 12 knitting and 21 garment companies are active. With an output of just under USD 0.9 billion, these manufacturers were involved with nearly three-fifths of the total output of the Belarusian textile and clothing industry in 2015. The companies have exported goods for nearly USD 500 million in 2015. The main customer was Russia (USD 357 million). The investments of the Bellegprom companies are expected to reach a volume of at least EUR 250 million in the years 2017 to 2020.

The envisaged projects for this period include:

• the continuation of the comprehensive modernization of the Orschaer linen combine Orscha (production of linen yarn, -fabrics and finished products, processing of imported raw materials);
• technological renewal in the company OAO Mogotex, Mahiljou / Mogilew (spinning and textile finishing);
• the development and production of new competitive wool and wool blended fabrics in the company OAO Kamwol, Minsk;
• the expansion of the production of hosiery, including an enlargement of the assortment of medical hosiery in the company SOOO Conte Spa, Grodno;
• the commencement of production of seamless underwear in the company OAO Kupalinka, Salihorsk and
• Investment in the production of fine thread Ajour-fabrics in OAO Switanak, Shodsina.

1)  Without regard to micro- and other small enterprises; at the end of 2015 225 textile and clothing companies were active in Belarus, the average number of employees in these companies was 58,800 persons per year;
2)  in terms of the national currency of Belarussian Ruble
Source: National Committee for Statistics, calculations by Trade & Invest in Germany.

In order to create complete value chains, it is envisaged to set up joint ventures between manufacturers of fabrics as well as producers of finished products. The Bellegprom Group is keen to focus the expansion potential on the production of linen fabrics and high-quality finished linen products.

Belarus is one of the world's five largest linen producers. For 2017 a volume of 55,000 tons is expected. In the year 2016 29 companies have processed flax straw into fibers. Of the in these factories installed 54 processing lines only ten are considered to be highly productive. According to the administration of the Mahiljou region, a Chinese investor wants to set up a factory in the region for the processing of flax for semi-finished and ready made goods in the near future.

Abolition of EU quotas planed

The EU plans to abolish the since 2010 existing autonomous quotas as well as the contingents for passive finishing processing for Belarus. The restrictions currently apply to a variety of textile products, including cotton and linen yarn as well as garments made out of cotton and woolen fabrics. Market observers agree: the abolition of the quotas with the related bureaucratic procedures would provide a solid basis for stimulating foreign investments in the Belarusian textile and clothing industry.

Belarus has many advantages: geographical proximity to the EU market, a well-developed infrastructure, long-standing industrial traditions, available production capacities, skilled labor and, last but not least, favorable labor costs. In a first phase of cooperation with Belarusian partners, the interest of foreign companies is likely to focus more on subcontracting. There are already successful projects that use the favorable framework conditions for this business model.   

The German Langheinrich Vertriebs GmbH, for example, produces high-quality table cloth and bed linen for the contract area in the small West-Belarussian town of Diwin (Kobryn district, Brest region). According to the director general of Langheinrich Konfektion GmbH, Walentina Paschkewitsch, the company, founded there in 2005, employs now between 90 and 120 employees depending on the order situation. Sales in 2016 amounted to around EUR 1 million. The in the company paid wages and the additional granted social packages are the guarantor of a very low fluctuation of the workforce. Among the companies from neighboring Lithuania, which are producing textiles and clothing in Belarus, the leading Baltic manufacturer of sportswear Audimas stands out.

Coveted awards for active insulation and sustainable hybrids

The awards presented at PERFORMANCE DAYS are coveted trophies in the world of functional textiles. The winning fabrics or technologies are always truly pioneering innovations. In Fall 2016, the "Oscars of Function" go to Imbotex and Pontetorto.

PERFORMANCE AWARD for the insulation "TWINS" from Imbotex
The Italian company Imbotex is well known for its high quality insulations. The latest generation is called "TWINS" and does not merely hold the warmth, it applies intelligent technology to create heat on demand. This is made possible by the two "faces" of the twin design. The patented, bonded fleece material consists of a lining made from a blend of polyacrylic and polyester that transports moisture quickly away from the skin. On the outside, hydrophobic polypropylene rapidly releases the moisture into the environment. The water vapor formed at the level of "insensible perspiration" is quickly transported to the outside and the body stays dry. During this process, the kinetic energy of the water vapor converts to heat energy and the inner lining of the garment remains pleasantly warm, even in the low temperatures of winter. "TWINS" from Imbotex was the winner of the PERFORMANCE AWARD for this intelligent solution that produces additional warmth and ensures a dry feeling.    

ECO PERFORMANCE AWARD for the hybrid design "ECO HYBRID" from Pontetorto
Engineered hybrids, that is, hybrid solutions that combine multiple zones and fibers in one fabric length are the future of functional clothing. Through such hybrid engineering, sports styles are given the added value of such useful features as thermal retention, climate management, durability, lighter weight, and elasticity; and, all of these at the exact position where it is desirable to have the function. Another advantage of this fabric design is the elimination of irritating seams, which means increased comfort for the wearer. Nevertheless, to manufacture these hybrids requires much experience with jacquard production. The new fabric "ECO HYBRID" introduced by fleece specialist Pontetorto represents not only a sophisticated and highly functional jacquard hybrid with different zones – it is entirely produced with absolutely sustainable methods. The fibers used, in this case polyamide and merino wool, are both quickly degradable and environmentally friendly. The fact that merino wool is degradable is not unusual as it is a natural product. The special aspect of this concept is the polyamide fiber used exclusively by Pontetorto, which is fully degradable within three years! For so much "green" innovation, Pontetorto was selected as the winner of the ECO PERFORMANCE AWARD.
 
All of the newest trends for Winter 2018/19 and our FOCUS TOPIC are on display on November 16-17, 2016 at PERFORMANCE DAYS in the Munich MTC. For all those who cannot wait, a lot of information is already provided for you online at: https://www.performancedays.com

About PERFORMANCE DAYS
PERFORMANCE DAYS — The “functional fabric fair” launched in 2008, is the first and only event created especially for functional fabrics for sports and work clothing. The aim of the semi-annual trade fair is to give leading and innovative textile manufacturers, suppliers and service providers the opportunity to present their functional fabrics, membranes plus treatments, laminates, paddings, finishes, and accessories such as yarns, tapes, prints, buttons and zippers.
No entry fee and free admission to all events for industry visitors.
Detailed information and advanced registration online at: www.performancedays.com

• Anticrisis Plan provides grants of nearly Ruble 1.5 Billion 

Moscow (GTAI) – In spring 2016 the Russian government has decided a "Strategy for the development of the light industry until 2025" and a "Federal program to support enterprises of the light industry" (anticrisis plan). Hence the Russian textile enterprises should be supported in the crisis. It is the aim of the Ministry of Industry and Trade to double the share of domestic producers on the clothing market from currently 25% to 50% in the year 2025.

According to the Ministry of Industry and Trade 14,000 companies (including 200 large enterprises) of the Russian light industry are producing clothing, textiles, footwear and leather goods. They generate annually a turnover of Ruble 270 billion. Of that 653 large and medium and 4,000 small businesses are operating in the yarn and textile industry. Because the purchasing power and consumer demand fell, the light industry slowed its production in 2015 by 12%.

To give the clothing and textile factories more security, the Russian government adopted in spring 2016 a "Strategy for the development of the light industry until 2025" and a "Federal program to support enterprises of the light industry" (anticrisis plan). It is the aim of the Ministry of Industry and Trade to double the share of domestic producers on the clothing market from currently 25% to 50% in the year 2025.  In this context up to 330,000 additional jobs should be achieved.

Anticrisis plan provides subsidies of Ruble 1.475 billion
In the anticrisis plan Ruble 1.475 billion will be granted. This should especially support manufacturers of school uniforms, children's apparel and textile factories that work on government orders. The financial support includes: subsidies for producers of school uniforms for the lower classes made out of Russian worsted fabrics (Ruble 600 million), subsidies for working capital loans to support purchases of raw materials (Ruble 800 million), subsidies for investment loans for technical modernization of enterprises (Ruble 75 million).

Industrial parks and clusters for the light industry are growing
In addition, two industrial parks for the clothing and textile industry will be set up in the areas of Ivanovo and St. Petersburg. In addition, a regional cluster of the light industry in the Chelyabinsk region of the South Ural is growing. The fund for the development of the Russian industry promotes investments with low interest rates on credits, for example the project of Praimteks (Primetex) in the Ivanovo region for the production of textiles using digital textile printing (credit: Rubles 466 million rubles).

Further, the domestic producers of clothing and footwear should gain access in future to the funding instruments of the federal association for the development of small and medium-sized enterprises. Critics complain, that the subsidies reach mostly large companies only and above all companies working with government contracts.

Capacity building for chemical fibers 
Export opportunities are seen by the Ministry of Industry in synthetic fibers. In the textile cluster Ivanovo (http://invest-ivanovo.ru/data/prog.pdf) a chemical fiber plant is growing with public aid, scheduled to begin production from 2018. With that 250,000 t chemical fibers would additionally annually be available. Until now both manufac-turers Komitex and Wladimirski Polyefir produce together 33,000 t chemical fibers per anno. Viscose is currently not being produced at all in Russia. The import share of polyester is 74%, of polyamide 88%. 

In future the synthetic fibers may be supplied to BTK Textile and other customers. The production complex of BTK Textile in the textile City Shakhty in the Rostov region, was inaugurated in June 2015. The company manufactures high-tech textiles and knitwear made out of synthetic fibers of which work-wear, sport-wear and ski-wear are being sewn. BTK Textile has fabric production capacities of about 12 million square meters per year, General Director Sergey Bazoev says. Up to now BTK Textile has to buy the synthetic fibers and yarns predominantly in Asia. That could change soon. The BTK Group is the largest Russian manufacturer of men's clothing and uniforms.

Source: Rosstat 2016

Source: Rosstat 2016

Contact addresses:
Ministry of Industry and Trade

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

(Sub) department of Light Industry: Director: Irina Alekseewna Iwanowa,
Tel.: -632 87 31, -346 04 73; E-Mail: ivanovaia@minprom.gov.ru
Internet: http://minpromtorg.gov.ru/ministry/dep/#!9&click_tab_vp_ind=1
"Strategy for the development of Light Industry until 2025."
http://www.kptf.ru/images/company/Presentation.pdf (Presentation of the strategy)
http://minpromtorg.gov.ru/docs/#!strategiya_razvitiya_legkoy_promyshlennosti_rossii_na_period_do_2025_goda (Text of the strategy and action plan)

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

• Weak Ruble makes domestic Production profitable
• Government encourages Investments

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

Source: Rosstat 2016

Source: Rosstat 2016

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

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

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

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

• FTA attracts Manufacturers
• Proportion of local added Value should rise

Hong Kong (gtai) - Vietnam is one of the main production sites of the clothing industry. Already in recent years the country had attracted buyers from around the world. In 2014 textiles and clothing shared 22% of the total merchandise exports. According to the state owned VINATX in 2015 Vietnam was the fourth largest apparel exporter in the world. The through the FTA with the EU and the Pacific neighbors expected growth requires investment in the supply industry.

In 2015 the Vietnamese garment exports amounted to about USD 27 billion. Estimates of the Vietnam National Textile and Garment Group (Vinatex) show they will increase by 8% in 2016. Nearly USD 30 billion of sector products would then be exported and assure Vietnam a ranking among the four largest exporting countries. The world market however is stagnating. The sector contributes nearly 10% to the industrial added value of the country, 2.5 million people are employed.

As the most important export market remains the United States. According to Vinatex the export to the US rose by 13% in 2015. The group dominates the textile production in the country, including companies like Garment 10, Phong Phu Textile and Garment Corporation, Viet Tien Garment and Hoa Tho Textile and Garment. Vinatex itself exported products worth of USD 3.5 billion, representing an increase of 10%.

TPP promises benefits

The sector has high hopes on the in February 2016 signed FTA Trans-Pacific Partnership (TPP), in which next to the USA, Japan and Vietnam and eleven Pacific Room states arranged added tariff reductions and improved market access. If the ratification process in all countries will be successful, the agreement would enter into force in February 2018. Analysts show that Vietnam would become one of the main winners, among others due to the lowest labor cost in comparison of all other involved countries. The agreement therefore is welcomed by the majority of the population.

Pre-products have to be imported

According to experts the competitiveness of Vietnam will be increased especially in the area of textiles and clothing. About 70% of the textile exports will be delivered to TPP member countries. Despite the annual growth rates of 15 to 20% the value adding in the country remained low. Imports of raw materials and accessories are high and totaled to USD 16.5 billion in 2015. 90% of the 5,028 textile factories in Vietnam (end of 2013) are apparel manufacturers, that mean sewing operations. By contrast there are just four cotton-processing and two synthetic fibers producing companies.   

Source: Vietnam Textile and Apparel Association (Vitas)

The sector is facing a challenge: TPP offers the free imports only if 55% of the value is provided in the member states. For the textile sector this is called the "Yarn Forward Rule", that means everything following the yarn. In Vietnam the proportion of the added value currently stands at 25%.

The text of the agreement is online available: (http://www.tpp.mfat.govt.nz/text). Chapter 4 deals with the textile and clothing sector and contains important annexes to the rules of origin. TPP is expected to attract investments into the country, as the value supply chain is incomplete: yarns and fabrics are mostly imported from East Asian countries.

Value adding rules require investment

Also the free trade agreement between the EU and Vietnam, agreed on August 4th 2015, should push the exchange of commodities. The share of the EU clothing imports from Vietnam is only 3%. Thus the country ranks as the sixth supplier. In the United States, Japan and South Korea Vietnam, however, is the second largest clothing supplier.

Following ratification of TPP an abolishment of 99% of all tariffs would follow.  Textiles from Vietnam would then be duty-free within a maximum period of seven years. For that TPP
defines clear rules of origin: (http://trade.ec.europa.eu/doclib/press/index.cfm?id=1437).

If investments would flow into the country and strengthen the supply chain, the value of clothing exports from Vietnam could be doubled until 2020 - so bold estimates.   Then the annual production of yarns should reach 2 million tons, the amount of fabrics 2 billion square meters and that of clothing 6 billion pieces. Following the Vietnam Textile and Apparel Association (VITAS)  the export value then should be between USD 45 to 50 billion. This requires new textile machinery. So far, mainly Chinese products were in demand, but also for German suppliers the opportunities emerge.

Source: Vitas

However, many sector representatives in Vietnam see TPP also critical, because by the agreement large new market participants could intensify competition. The small and medium companies are hardly competitive due to their outdated technology, lack of capital and low know-how. They demand government aid in the form of tax breaks and subsidies for land. The Bank for Investment and Development of Vietnam has already provided USD 2 billion for the support of the industry for the next five years.    

Investment in regional centers

Large investments are happening already now: The TAL Group from Hong Kong, one of the largest owner-managed apparel producers, has invested USD 600 million in factories in the Dai An Industry Zone in Hai Duong Province, especially for yarn dyeing and finishing. Haputex Development, which is also from Hong Kong, has built with up to USD 120 million in the province of Binh Duong on a twelve hectare site a Weaving mill which should go into operation 2016.  There also the South Korean company Kyungbang is building a spinning mill for USD 40 million. The Texhong Textile and Garment Group is building with USD 300 million a yarn factory in Quang Ninh. And in Nam Dinh the Yulun Jiangsu Textile Group, a state-owned company from China, is building with USD 68 million a factory for the manufacturing and dyeing of yarn.

Investments are mainly attracted by the regions Ninh Binh, Hue, Binh Duong and Ham Dinh, as well as the cost favorable  Mekong Delta. New target regions are at the borders with Laos and Cambodia, such as the area Tay Nguyen. As the largest Vietnamese group also Vinatex invests in new capacities and announces in convincing interviews to reach by 2020 a local added value part of 65% in final finished products.

Source: Vietnam Textile and Apparel Association (VITAS)

Contact address:
Vietnam Textile and Apparel Association (VITAS)
2nd Floor, 32 Trang Tien Str., Hoan Kiem District, Hanoi, Vietnam
Tel.: 0084 4/39 36 41 34; Fax: -39 34 98 42
Email: info@vietnamtextile.org.vn; Internet: http://www.vietnamtextile.org.vn