Textination Newsline

Reset
26 results
30.05.2017

IRAN'S TEXTILE AND CLOTHING INDUSTRY WANTS TO INVEST

  • But industry continues to be in a crisis
  • Germany leading textile machinery supplier again

Teheran (GTAI) - Iran's large, traditional textile and clothing industry fights against foreign competition. Although the manufacturers are protected against imports by import tariffs, industry representatives and the Ministry of Industry are talking about massive illegal imports. In order to improve competitiveness, investments in new plants are necessary, but the companies often lack the necessary financial resources. Textile machines from Germany are in high demand.

  • But industry continues to be in a crisis
  • Germany leading textile machinery supplier again

Teheran (GTAI) - Iran's large, traditional textile and clothing industry fights against foreign competition. Although the manufacturers are protected against imports by import tariffs, industry representatives and the Ministry of Industry are talking about massive illegal imports. In order to improve competitiveness, investments in new plants are necessary, but the companies often lack the necessary financial resources. Textile machines from Germany are in high demand.

Although the Ministry of Industry reports growth for several sectors of the textile and clothing industry for 2015/16 (Iranian year 1394, 03. 21.15 to 03. 20.16), the increased production level remains far below capacity. The data on the average utilization varies greatly, but no estimate is more than 50%, some company representatives report even 30% only. The industry also suffers from quality problems, which are mainly due to the outdated machinery park.
According to official data, there are almost 10,000 factories with about 290,000 employees in the textile and clothing sector. The industry, which is characterized by private ownership, is by government announcements often referred to as a promising economic sector with potential. Nevertheless, according to criticism it is lacking in the necessary support.

Approximately 400 mostly medium and large textile and clothing manufacturers are organized in the Association of Iran Textile Industries (http://aiti.org.ir). The spectrum of the association members ranges from cotton spinning and weaving mills to producers of acrylic and polyester yarns, synthetic fibers, machine-made carpets, wall-to-wall carpet floors, woolen and other blankets and bedspreads, clothing and up to manufacturers of textile machines and spare parts.

The main problem of the Iranian textile and clothing industry is the competition from abroad, particularly from the PR of China and Turkey. The re-exports via the Dubai trade hub have to be added too. Partially high import tariffs are intended to protect the domestic market, but a large part of the imports arrives illegally into the country. A duty of 55% is currently levied on clothing and a reduced rate of 33% applies to deliveries from Turkey. For fabrics 32% are due.

Great interest in modern technology
The Iranian textile industry wants to strengthen its competitiveness both on the domestic and international markets through the modernization of its machinery. The great interest of the sector companies in new technology shows the strong response to conferences and seminars offered by European associations and companies.

In April 2015, the  GermanTextile Machinery Association VDMA organized a symposium in Tehran in anticipation of the strong easing of Iran sanctions. About 1,100 local company representatives were able to study the offers from the 36 German textile machinery and accessories manufacturers.
The event showed the interest of the Iranian companies to look for solutions to improve their mostly old, often decades old facilities.

A considerable part of the machinery park came from Europe as already used equipment. A problem were the continuing export controls also. According to industry representatives replacement procurements were made difficult because many parts are classified as dual-use goods. Organizations from Italy and Switzerland also have organized information events for Iran's textile industry.

Machinery import decreased again
The interest in modern technology however leads to limited investments only. Due to the weak financial strength of a large part of the industrial enterprises, intensified state support measures, in particular favorable loans, are requested. The banks lend credits to textile companies with great restraint only and demand high interest rates. According to Iranian customs despite the difficult situation textile and clothing machinery worth USD 324 million were imported in 2015/16. However - this was 11% less than in 2014/15 (USD 364 million).

Germany: export of textile, clothing and leather machinery to Iran 2013 to 2016 (in EUR 1,000):
HS-Pos. Description 2013 2014 2015 2016 -11 months
  Total 16,248 39,966 48,993 25,827
84.44 Machinery for jet spinning etc. of synthetic or artificial material 83 2,991 325 1,005
84.45 Machines for preparation or processing for spinning and doubling etc. 2,145 6,699 7,140 2,612
84.46 Weaving looms 8,009 20,896 30,873 11,941
84.47 Machines for knitting, sewing, gimping, tulle, lace, embroidery, net knitting and tufting etc. 642 712 618 1,444
84.48 Auxiliary machines and devices for machines of positions 84.44, 84.45, 84.46 or 84.47 4,400 7,347 7,760 6,412
84.49 Machines for the manufacturing of felts and nonwovens 6 0 77 0
84.51 Machinery and devices for washing, drying, ironing, pressing, etc. (excluding machines of pos. 84.50). 634 915 1,629 1,672
84.52 Sewing machines 321 380 543 673
84.53 Machines and devices for processing of hides etc. 8 26 28 69


Source: Eurostat

Germany is traditionally the leading textile machinery supplier in Iran, followed by Italy. However, the sanction phase brought a turnaround in favor of Asian suppliers. According to VDMA calculations, the most important suppliers of textile machinery exported to Iran in 2013 a value of EUR 85 million only (excluding dryers, and clothing and leather technology), of which 33% were attributed to the PRC, followed by Germany (16%), Turkey (12%), Korea (Rep., 7%) and Italy (5%). Deliveries of clothing and leather technology amounted to EUR 113 million in 2013, led by Korea (Rep.) with 53%, the PRC reached 36%, Germany came to 0.3% only.

The VDMA data for 2015 show for textile machinery Germany as the leading supplier again. At the textile machinery exported to Iran German suppliers accounted for a share of 30%, the PRC fell to 22%, Turkey reached 12%, Korea (rep.) 6% and Italy 4 %. In the clothing and leather technology the Chinese-Korean dominance remained in 2015 (PRC: 49% from EURO 131 million and Korea (rep.): 41%)..

PR of China: Exports of textile, clothing and leather machinery to Iran 2013 to 2016 (in USD 1,000):
HS-Pos. Description 2013 2014 2015 2016- 11 months
  Total 84,518 133,739 103,055 75,748
84.44 Machinery for jet spinning of synthetic or artificial fibers 16,457 5,319 1,990 1,925
84.45 Machines for preparation or processing of materials for spinning, doubling etc. 288 2.602 2.844 1,269
84.46 Weaving looms 2,650 6,039 4,103 1,836
84.47 Machines for knitting, gimping tulle, lace, embroidery, knotting and tufting etc. 6,672 10,795 8,642 7,878
84.48 Auxiliary machines and devices for pos.84.44, 84.45,
84.46 or 84.47 etc.
5,684 17,061 7,319 3,921
84.49 Machines for the manufacturing of felts and nonwovens 2,053 2,029 5,540 2,900
84.51 Machinery and devices for washing, drying, ironing, pressing, etc. (excluding machines of pos. 84.50). 11,368 15,894 16,559 13,728
84.52 Sewing machines 33.567 49.714 38.191 36.182
84.53 Machines and devices for the processing of hides 5.779 24.286 17.867 6.109

Source: China Customs

According to Eurostat exports of textile, clothing and leather industry machines of the EU28 Group to Iran increased between 2013 and 2015 from EUR 38 million to EUR 89, with Germany accounting for 42% respectively 55%. Italy delivered EUR 10.4 million in 2015 (2014: EUR 14.0 million, 2013: 6.3 million). The deliveries of the EU28 Group and Germany also were declining in 2016.

 

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

ISPO Shanghai © Messe München GmbH
20.12.2016

ISPO SHANGHAI 2017 EXPANDS ITS RANGE OF PRODUCTS AND SERVICES

  • Sports Tech Asia: Messe München and the Organizer of ShanghaiTex Launch a New Trade Show

After its successful debut in 2015 and impressive growth this year, ISPO SHANGHAI will complement its product offer by the new trade show "Sports Tech Asia" in 2017. As a joint venture of Messe München and Adsale Exhibition Services, the event will take place simultaneously with ISPO SHANGHAI at the Shanghai New International Expo Centre (SNIEC) for the first time from July 6 to 8, 2017. Within the scope of this cooperation, ISPO SHANGHAI not only presents the finished products but also highly innovative production technologies and the future of manufacturing.

  • Sports Tech Asia: Messe München and the Organizer of ShanghaiTex Launch a New Trade Show

After its successful debut in 2015 and impressive growth this year, ISPO SHANGHAI will complement its product offer by the new trade show "Sports Tech Asia" in 2017. As a joint venture of Messe München and Adsale Exhibition Services, the event will take place simultaneously with ISPO SHANGHAI at the Shanghai New International Expo Centre (SNIEC) for the first time from July 6 to 8, 2017. Within the scope of this cooperation, ISPO SHANGHAI not only presents the finished products but also highly innovative production technologies and the future of manufacturing.

Klaus Dittrich, Chaiman and CEO of Messe München, expresses his contentment: “Innovative patterns, knitting techniques and fabrics are becoming increasingly important in sports fashion. By taking this step, ISPO SHANGHAI extends its future portfolio of products and services. The trade show underlines that it is not only textiles that are becoming increasingly smart and networked but also the production procedures with a view in adjusting themselves that fulfills the growing requirements. Therefore, “Sports Tech Asia” is a genuine enrichment for every trade visitor, and we expect that the new technologies will have exciting synergy effects for ISPO SHANGHAI.”

The organizers of this event – Messe München and Adsale Exhibition Services – anticipate an exhibition space totaling 2,000 square meters in the first year. As a multi-segment trade show, ISPO SHANGHAI is primarily mapping the areas of Speed & Strength, Urban & Lifestyle and Nature & Elements. The product offer of "Sports Tech Asia" comprises, in particular, highly innovative machines and technologies for the manufacture of sports products, and will be connected to the clothing and textile segment of ISPO SHANGHAI. As a result, all areas will be on display in Shanghai, ranging from production to the product.

Every two years, Adsale Exhibition Services organizes the "ShanghaiTex" (International Exhibition on Textile Industry) trade show in Shanghai. With more than 1,200 exhibitors, this is one of the most important trade shows for textile machinery in Asia. In addition, Adsale is the organizer of "Chinaplas" (International Exhibition on Plastics and Rubber Industries), the world's second largest trade show for plastics, which can pride itself on more than 3,000 exhibitors. Therefore, Adsale enjoys optimum access to the manufacturers of the latest manufacturing technologies for sports fabrics and products.

ISPO SHANGHAI is growing

The new multi-segment trade show, which presents more than 450 brands under one roof, opened its gates for the first time in 2015. In 2016, ISPO SHANGHAI continued on its successful course, recording 470 companies, who represented some 500 brands, and 14,593 visitors. “Thanks to the new exhibition segment, we enlarge our target group and create additional growth opportunities”, states Klaus Dittrich. 
Further information on ISPO SHANGHAI is available at shanghai.ispo.com.

Get more information on Sports Tech Asia at www.SportsTechAsia.com

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

PAKISTAN’S TEXTILE AND GARMENT INDUSTRY HAS TO INVEST

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

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

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

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

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

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

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

Source: UN Comtrade

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

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

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

*) SITC 724, including pieces
Source: UN Comtrade

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

*) SITC 724, including pieces

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

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

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

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

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

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

Import of textile machinery by product and top supplier countries (in USD thousands, change compared to the previous year in%)
SITC Productgroup 2013 2014 Veränd.
724.3 Sewing machines, from 18.508 31.034 67,7
  PR China 9.795 19.925 103,4
  Japan 2.596 3.694 42,3
  Vietnam 479 911 90,3
  Germany (Rank 5) 856 750 -12,4
724.4 Spinning and other machines for textile processing, from 255.311 258.348 1,2
  Japan 74.961 61.771 -17,6
  Switzerland 36.203 57.814 59,7
  Germany (Rank 3) 64.086 46.545 -27,4
724.5 Weaving machines, from 121.860 179.424 47,2
  Japan 29.997 68.090 127,0
  PR China 31.305 53.706 71,6
  Italy 6.666 11.275 69,1
  Germany (Rank 6) 5.290 6.097 15,2
724.6 Auxiliary machines, from 30.953 36.801 18,9
  PR China 8.797 11.935 35,7
  Germany (Rank 2) 6.429 4.880 -24,1
  Japan 2.055 3.614 75,9
724.7 Machines for dying, washing, drying, from 61.620 64.825 5,2
  PR China 9.855 12.455 26,4
  Italy 14.867 11.527 -22,5
   Germany (Rank 3) 16.652 11.494 -31,0
724.8 Machines for leather processing and footwear manufacturing, incl. parts, from 5.854 8.722 49,0
  Italy 3.674 4.985 35,7
  PR China 1.542 2.338 51,6
  Finland k.A 192 k.A.
  Germany (Rank 5) 29 140 381,6
724.9 Parts for textile machines, from 3.996 5.760 44,2
  PR China 2.107 2.854 35,5
  Germany (Rank 2) 617 669 8,4
  Italy 528 661 25,3
More Investment in the Kazakhstan Light Industry © Nikolai Fokscha/ pixelio.de
26.04.2016

MORE INVESTMENT IN THE KAZAKHSTAN LIGHT INDUSTRY

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

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

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

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

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

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

Development of production in the light industry (USD millions) 1)
  2013 2014 2015 Change 2015/14 2)
Manufacturing, thereunder 38,471 33,999 25,936 0.2
Light industry, thereof 427 353 320 3.4
Textile industry 208 148 155 0.5
Clothing industry 193 166 136 6.1
Leather goods industry 27 39 29 3.1

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

Investments in the light industry rise

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

Gross fixed investments in the light industry (USD millions)*)
  2013 2014 2015
Manufacturing, thereunder 4,514.9  4,065.8 3,491.8
Light industry, thereof 32.6 23.0 21.7
Textile industry 4.6 4.1 23.2
Clothing industry 0.4 11.3 0.8

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

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

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

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

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

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

Kazakhstan’s import of textile products (USD million)1)
2006 2008 2010 2012 2014 2015 Change 2015/14 2)
332 429 394 1.458 2.087 1.281 -38,6

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

Market volume for textile products (in Mio. US$; nominal change in %)
  2014 2015 Change 2015/14
Imports 1) 2,087 1,281 -38.6
Exports 1)   147 186 26.5
Local production 2) 353 320 -9.3
Market Volume 2,293 1,415 -38.3

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

The light industry offers potential for development

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

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

SEZ Ontustik in Shymkent

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

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

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

Concentration process in light industry

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

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

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