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Textildruckerei Heinrich Mayer GmbH, Michael Steidle (c) Textildruckerei Heinrich Mayer GmbH
21.07.2020

„COVID-19 - We could and should have appeared better as noble knights" Michael Steidle, Textildruckerei Heinrich Mayer GmbH

  • Interview with Michael Steidle, Managing Director Textildruckerei Heinrich Mayer GmbH

At least Europe seems to be able to breathe a sigh of relief after weeks of lockdown during the corona pandemic. The textile industry, an industry that has lived globalisation for so many years, is facing the challenge of maintaining its place in the new normal and building on its previous performance as quickly as possible.
Textination talked to three company representatives along the textile chain about personal and operational experiences.

  • Interview with Michael Steidle, Managing Director Textildruckerei Heinrich Mayer GmbH

At least Europe seems to be able to breathe a sigh of relief after weeks of lockdown during the corona pandemic. The textile industry, an industry that has lived globalisation for so many years, is facing the challenge of maintaining its place in the new normal and building on its previous performance as quickly as possible.
Textination talked to three company representatives along the textile chain about personal and operational experiences.

The Interview with Michael Steidle, managing director at the textile printing company Heinrich Mayer GmbH, marks the provisional end of our series that started with Wolfgang Müller, Head of Sales & Services at Mayer & Cie. GmbH & Co. KG and was continued by Andreas Merkel, managing director of Gebr. Otto Baumwollfeinzwirnerei GmbH & Co. KG. The textile printing company Mayer, a family business on the Swabian Alb, is a leader in textile printing, in screen, rouleaux, rotary, sublimation and flock printing and as well as in 3D coating. They are increasingly using these skills in the area of technical textiles.

How have you felt about the corona era to date - as a company and personally?
What would you on no account want to go through again and what might you even consider maintaining on a daily basis?

 The corona time hit us hard. At the beginning of April, sometimes it felt like the lights would go out within the next 24 hours. In numbers there is a drop in sales of 30 percent.
And that's not just the way we are, this crisis has incredibly broader implications. Involved in the word of the Chamber of Commerce I am concerned with many companies in the region. Sectors that would not come to mind spontaneously also feel the effects. This also includes recycling companies. After all, there is also less commercial waste when companies are on short-time work.
At a personal level you can deal with the crisis, hand hygiene, sneeze etiquette, you can learn all of this. But we miss people-to-people contacts. We have a teenage daughter; young people in particular lack the ability to be out and about with their peers.

 
What has the pandemic meant for your company so far?
As I said, the Corona period brought us a significant drop in sales. That means we think twice before spending money. At the beginning of the year we moved to our new, spacious company building. There are still a few small investments to be made. So far, we have put it off until the situation has calmed down again. And so do many. The economic network extremely got out of hand due to the lockdown.
We applied for short-time work, which has been running for three months now. However, you have to see how long that makes sense. Our customers also had a drop in sales, which they first of all have to recover.

 
What adjustments or innovations to your product portfolio have you felt obliged by the pandemic to undertake?
The mask production was a very strong topic in April and May, the phone almost rang continuously. This enabled us to compensate for many orders that were lost otherwise.
We reacted quickly, not only printing masks classically, but also developing coatings for medical face masks and protective clothing. The coatings that we offer are antibacterial and have the lotus effect. This results in the formation of droplets in the aerosols. We have had checked and certified these innovations in an urgent procedure.
We converted our machines ad hoc so that we could apply innovative coatings instead of paint. This was even possible for ready-made masks.
In general, I rate this ability to react quickly as one of our great strengths. We are a small company, so the path from idea to implementation is rather short. If we recognize a trend, an opportunity in our industry, we examine ourselves: Do we have resources that could be used or adapted to offer a solid, marketable solution in a very short time? This refers to know-how, ideas, machines and, for larger projects, also partners. Experience has shown that on the one hand we have the necessary imagination, but on the other hand we also have a fairly realistic view of ourselves. If we can answer the question with “yes”, then we get started without delay. We can evaluate a trial in the evening and continue working on it the next day. There is no need for a meeting with five persons beforehand.
 

What are your views on global supply chains in the future, and will you be drawing consequences for your procurement policy?
We cannot avoid global supply chains; and it will remain this way. In the short term, you may reflect on regional procurement, as far as that is still possible. Many things are simply no longer available and the development over the past 30 years cannot be turned back. Let's take pigment paint: it comes from India and China, otherwise it doesn't exist anymore. Nobody in Europe can keep the prices. And yes, that also means that the production of systemically relevant products can no longer be guaranteed.

          
How do you rate the importance of partnerships within the industry in the future? Does Covid-19 have the potential to promote the creation of new cooperation arrangements in the industry? Or have they already taken shape?
Existing partnerships are important. We must keep the ball rolling: Interrupted projects have to be continued with existing partners.
I think it is important to maintain partnerships at eye level. Sure, now everyone has to see how they can make ends meet. It will be shown, however, who works loyally in the long term and with respect to the business.
Personally, it is important for me to be true to my word. Only a few days ago I spoke to a student, whom we promised her internship and a corresponding payment in February. This young woman can start her internship with us; what paying is concerned, I had to tell her honestly that we have to talk about it again. Fortunately, that was not a problem. It is important to the student that she can complete the required internship at all. This is not so easy since most companies do not accept anyone right now. That is understandable too, but we will need the well-trained people again soon, that’s for sure!

 
What initiatives or approaches for your industry would you welcome for the near future?
I would be very interested in a positive and comprehensive description of what value added is still available in Germany. An initiative that illustrates that the textile industry is an important industry, with many companies that have been family-owned for generations, often with a young, dynamic management and high-quality products. Really nobody has that on his radar. Just today, two designers from a company nearby visited us. They were surprised which services we offer in the field of technical textiles - they were not even aware of it.
The textile industry has played itself down for a long time, that has to stop. Of course, we no longer have added value like the machine building industry. But now, in the corona crisis, it would have been the right time to take advantage of the situation and to initiate much-needed lobbying..


What would you like to see as part of the German textile industry? Do you feel that the status of the German textile industry has changed as a result of the pandemic, especially in respect of public procurement?
No, only at very short notice. Everything was taken during the crisis, the main thing was that the requested product, i.e. masks and protective clothing, was even available. Now the old cycle is back: I have a certain budget, where can I get the most for it? This is frustrating because the willingness to face this challenge was high on the part of the companies.
We also have driven the development and had our coatings for masks certified in an urgent process. Others have switched their entire production at a significant cost to meet demand. Nobody became a millionaire this way.
I think the textile industry could have sold better here. We could and should have appeared better as noble knights. Unfortunately, this was lost in the heat of the battle.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on. Where do they stand now and how must we rate them against the backdrop of the Covid-19 pandemic?
We take sustainability into account with our certifications, with GOTS and ISO 9001. Digitisation does not work quickly for us; it will take years before we can digitise processes. Sure, in administration we are now increasingly working with web meetings and video conferences, but personal contact is important to me. I regularly give lectures; my next one will be at the Zurich University of Applied Sciences and I very much hope that it can take place. I am just a guy for direct contact.
The labour market situation depends on the pandemic and how it develops. In any case, it remains difficult to get young people excited about textile professions. When I open a mobile phone store, I don't need a day to have my employees together. When we present ourselves at a training fair, we are happy to have a handful of good conversations.
Training is so valuable. Someone who has one will always have a different status than an unskilled person, even if - at some point - he works in a completely different branch. The dual training system is absolutely untouchable for me, because we live from this economic performance. We have nothing else but our knowledge. And we have to keep developing because only the high level gives the necessary output.
 

What lessons are to be learnt in respect of these targets for the post-corona era?
Innovation, innovation, innovation. You must not stand still. Nobody knows what to do next. But in three years from now I have to live from what I am developing today, just like I live from what I developed three years ago. Now, in times of Corona, it is much harder to remember, but it does not help: I can’t stand still, waiting for what is happening next, being like a deer caught in the headlights.

This interview was conducted by Ines Chucholowius, CEO Textination GmbH

(c) SANITIZED AG
16.06.2020

‘WHAT SMELLS LESS HAS TO BE WASHED LESS OFTEN’

Swiss Quality Principles plus Innovation Strength: Hygiene and Material Protection from SANITIZED 

SANITIZED AG is known as a worldwide leading Swiss company in hygiene functions and material protection for textiles and plastics. Globally oriented, pioneering work is done with federal thoroughness in the development of innovative, effective and safe technologies for antimicrobial equipment. Textination had the opportunity to speak to CEO Urs Stalder about the growing importance of hygiene in times of the pandemic.

Swiss Quality Principles plus Innovation Strength: Hygiene and Material Protection from SANITIZED 

SANITIZED AG is known as a worldwide leading Swiss company in hygiene functions and material protection for textiles and plastics. Globally oriented, pioneering work is done with federal thoroughness in the development of innovative, effective and safe technologies for antimicrobial equipment. Textination had the opportunity to speak to CEO Urs Stalder about the growing importance of hygiene in times of the pandemic.

Founded in 1935, the majority ownership of the public company SANITIZED still lies with the founding families. You are the market leader in Europe in hygiene functions and material protection for textiles and plastics. If you had to introduce yourself in 100 words to someone who doesn't know the company: What influenced you in particular in the development of the company and what made it unique?
Preventing odor in shoes, that's how it started in 1935. This is where our business model came from: the antimicrobial protection of plastics and textiles.
SANITIZED develops ready-to-use additives that are individually tailored to the protection goals of the end products and that work, for example, against the development of odors in work clothing, against permastink (resilient odors) in synthetic textiles or against mold growth.
The 360-degree service is unique: This includes backing in product development, support for all regulatory questions and assistance with marketing topics.
SANITIZED AG is globally active and yet committed to Swiss quality principles. More than 400 brands worldwide use the ingredient brand Sanitized® on their end products.

Think global – act local? You have sister companies in France, the United States and Asia. Your roots and headquarters are based in Switzerland. The pandemic is currently increasing the question of intact supply chains. What does this mean for your company in the future?
Indeed, the broad global positioning enables us to do business locally. The local anchoring results in synergies, also in sourcing. That will be even more important for us in the future. And, of course, the issues of speed and customer proximity are also positive aspects of this approach.

From textiles to plastic surfaces to cans: SANITIZED Preservation AG was founded in 2018 to take care of colors and coatings. SANITIZED is thus opening up another market. Which markets are you particularly interested in and which product areas do you feel particularly challenged by?
Customers want paints and varnishes without solvents, which is better for people and the environment. But with the alternative water-based products, there is a high risk of contamination by microbes. This starts with the production, continues with the storage in the can and also in the application. The result is mold formation.
Antimicrobial protection for paints or coatings is particularly relevant in hygiene-sensitive areas of industrial production and, of course, in the medical environment. The risk of contamination and mold multiplies in regions with high air humidity. This is another reason why India is a growth market for this business area.   

To break new ground means decisiveness, overcoming fears - and thus the courage to fail. Not every project can succeed. In retrospect - about which entrepreneurial decision are you particularly glad to have made it?
Let me mention just three decisions that are important for corporate development: This is definitely the foundation of the SANITIZED Preservation division. This is about the antimicrobial protection of paints and varnishes. This also includes setting up our in-house TecCenter, in which we can perform laboratory services even faster. It was recently accredited by the International Antimicrobial Council. And right now it is the sales cooperation with Consolidates Pathway on the US market for our textile hygiene function solutions.

You state that innovation is embedded in the company's DNA. How do you live your inno-vation management and which role do the requirements of end consumers and your indus-trial customers play in this setting?
We ourselves as well as our global sales partners are in close contact with the manufacturers of textile products. This is also why we know the requirements and needs of the market. Sustainability is emerging from the niche in the mass market.
This is exactly what our product Sanitized® Odoractiv 10 has been developed for and awarded by the Swiss Innovation Award.
It is a dual-acting, biocide-free, patented technology against odor development and odor adsorption in textiles. Many customers appreciate our expertise and use it in the development of new products to create innovative textiles with additional benefits for the requirements of the market.

Tailor-made or solutions only for major customers? The topic of individualization up to lot size 1 takes up a lot of space today. What do you think about individual product solutions - or can you cover everything with the SANITIZED portfolio comprising 40 products?
We have a very versatile technology “kit” at our disposal. It is part of our daily business to respond individually to the special customer needs and the respective product requirements. We offer tailor-made recipes for this and our extensive application know-how flows into the advice for the individual application situation at the customer.

There are various definitions for sustainability. Customers expect everything under this term - from climate protection to ecology, from on-site production in the region to the ex-clusion of child labor, etc. Textile finishing does not always sound unproblematic. Public procurement is increasingly switching to sustainable textiles. What does this mean for SANITIZED and what do you do to bring the concept of sustainability to life for your company, and which activities and certifications do you focus on?
Resource conservation is a key issue for us. Since we “think” about the topic of sustainability along the entire production chain, including in research and development, resource-saving application techniques for the textile industry are important to us. Sanitized® additives can be integrated into standard production processes, so that additional energy is not required for complementary finishing processes.
Our portfolio also includes biocide-free products. Sanitized® Odoractiv10 prevents odors from sticking to textiles. Sanitized® Mintactiv uses the natural antibacterial effect of mint and was specially developed for cotton textiles.
And what smells less has to be washed less often. This saves water and electricity and extends the useful life of textiles.
          
SANITIZED supports its customers with a so-called 360° service. What do you mean by that and why don't you concentrate exclusively on the technical aspects of the products?
The SANITIZED brand wants to create real added value for its customers. That is why we have expanded our core competence as a developer and provider of innovative antimicrobial additives with an all-round service. The obvious thing to do is to support the production process, of course that is part of it. Furthermore; we also provide the latest knowledge on regulatory issues - world-wide. And we offer comprehensive marketing assistance for our license partners who use Sanitized® as an ingredient brand. Making correct advertising statements is important not only in times of Corona. Because it's always about transparency and security for people. Warning letters or delivery stops due to incorrect claims can be prevented.
Cooperation with the institutes is absolutely sensible; after all, it is their job to do research for com-panies that they cannot shoulder on their own. This includes testing facilities, as well as applying for funding, which is only possible in cooperation with research institutes. However, they are public institutions and therefore have different objectives per se than a company: We have to bring a promising idea to the market as quickly as possible to show a profit. A research institute does not have this pressure.

Which goal do you pursue with the website https://www.sanitized.house for example?
Yes, it may seem unusual when SANITIZED as a B2B company designs a platform for end customers. But more than 400 brands use Sanitized® as an ingredient brand. So, we are connected to the end customer in this way.
In the virtual house - Sanitized® the house -, visitors can playfully experience in which areas of life hygiene and material protection contribute to the quality of life. A click in the wardrobe links to products - including brand names - that have been equipped with Sanitized®: clothing in the wardrobe, the carpet in the living room or the towel in the bathroom. The best thing to do is try it yourself.

The company is working consistently on implementing Sanitized® as a brand. The hygiene function for textiles and plastics shall be documented and thus offer added value to customers and consumers. Co-branding is not always welcome, especially in the clothing, sports and outdoor sector. How rocky was the road until Sanitized® was advertised as an ingredient brand by 400 license partners on the product?
Of course, there are brands that do not want a second brand on their end product. But a trend is causing more and more manufacturers to rethink: Customers are increasingly asking questions about ingredients and their origins. Elucidation and transparency are growing needs. And that's exactly what we contribute to. In addition, this is an opportunity for a textile brand to stand out positively in the flood of suppliers. Differentiation through added value - donated by Swiss technology from SANITIZED. Those arguments work worldwide.

You have a diversified network. Just to mention to two of them - you have been a system partner since the foundation of bluesign® and you work closely with Archroma in sales matters. In which aspects do you see the special value of partnerships? Are there segments existing where you can imagine new partners and collaborations?
Partnerships are important and work if all pursue common goals and can mutually fertilize each other. For example, the partnership with the company Consolidates Pathway in the United States is brand new one.

For which socially relevant topics do you see a particularly great need for innovation and action in the next 5 years? What is your assessment that your company will be able to offer solutions for this with its products? And what role do the experiences from the corona pandemic play in this assessment?
Nobody can predict what the corona pandemic will change in the long term. Environmental protection and thus the conservation of our resources is and remains an important issue.
The fact that the textile industry can make a big contribution to this is slowly gaining awareness among the masses. Keywords are cheap production or water consumption for jeans production. People are becoming more sensitive to what companies and brands are doing. It will be all the more important to act and communicate openly and transparently.
For SANITIZED, it is a mission and a matter of course that only products with official approvals are used and that we work ac-cording to the bluesign principle. This is where traceability and transparency begin.


This interview was conducted by Ines Chucholowius, CEO Textination GmbH

Copyright photos: MEX Exhibitions Pvt. Ltd. / Messe Frankfurt
06.08.2019

DIGITEX SHOW 2019 GEARS UP FOR ANOTHER MILESTONE

Digital textile printing technologies to take Centre Stage at Gartex Texprocess India 2019 – the 3-day comprehensive exhibition on complete supply-chain of garmenting & textile manufacturing solutions

India’s leading trade show, dedicated completely to garmenting and textile manufacturing solutions and technologies, Gartex Texprocess India is scheduled from 10-12 August 2019. Spread over 1,50,000 sq. ft. exhibit area, the show will be held across six halls in Pragati Maidan, wherein more than 200 companies will display over 400 brands. A hub dedicated completely for showcasing and highlighting latest developments in machinery, inks, software and services in digital textile printing, the Show is designed to take the country’s fabric printing & apparel industry to the next level.

Digital textile printing technologies to take Centre Stage at Gartex Texprocess India 2019 – the 3-day comprehensive exhibition on complete supply-chain of garmenting & textile manufacturing solutions

India’s leading trade show, dedicated completely to garmenting and textile manufacturing solutions and technologies, Gartex Texprocess India is scheduled from 10-12 August 2019. Spread over 1,50,000 sq. ft. exhibit area, the show will be held across six halls in Pragati Maidan, wherein more than 200 companies will display over 400 brands. A hub dedicated completely for showcasing and highlighting latest developments in machinery, inks, software and services in digital textile printing, the Show is designed to take the country’s fabric printing & apparel industry to the next level.

The 4th edition of the Show is gearing up incorporating DIGITEX Show highlighting the developments and innovations taking place in the digital textile printing technology, which is eventually picking up fast in the apparel manufacturing industry across the country. More than 20,000 enthusiastic visitors are expected to witness the latest developments during the three days of extreme business activities. They would not only take a glimpse of what new has hit the turf in the digital textile printing, but will also experience the newest technologies through various live demonstrations that the leading brands catering to the solution for soft signage and sublimation printing would put on the display.

The transformation in digital technologies over the past few years has been tremendous, which the organisers found important to bring forth under the DIGITEX @ Gartex Texprocess 2019. The advancement in technologies and rapidly increasing awareness has brought it at a revolution of sorts. Digitex hopes to become a one-stop solution hub for the latest machinery, inks, software and services to serious buyers and decision makers of the digital textile printing industry. The Show would also witness renowned brands offering live demo of their respective machines to let the visitors feel and appreciate the development taking place in the fabric digital printing arena which is slowly but steadily picking up.

Ever since direct to garment (DTG) printing has been introduced, textile printing industry has started finding new horizons with a fast and flexible production solution that delivers exceptional image quality, which in turn is opening up new doors of opportunities for those who are willing to enter into the apparel industry or are eager to expand their garmenting & textile business. Digitex @ Gartex Texprocess India is an important event for the digital printing technology leaders as it offers them the perfect Launchpad as far as Indian market is concerned.

Moreover, experts feel that increasing thrust and resultant R&D investment in progression of digital textile printing technology will further boost the growth avenues for the digital textile industry in near future. Meanwhile, increasing popularity of polyester as an alternative to cotton as a textile fabric further creates opportunities for digital textile printing equipment providers to expand their business. Attributing to such significant demand for digital textile printing technology, there is scope for manufacturers to enhance their business in time to come.

Many leading names like ColorJet India, Fortuna Colours & Prints Llp, Apsom Technologies, Kornit Digital, True Colors Group, Epson India, Jaysynth Dyestuff (India) Ltd., etc. are lined up with their new arrivals and eagerly awaiting the Show dates to launch their latest printers. Featuring continuous production and a wide range of printing capabilities, most of these new age digital textile printers work on minimal maintenance and come with easy cleaning options for smooth operation. All these activities clearly evince that overall textile printing technology market has positive growth prospects, riding on the back of the country’s burgeoning textile industry.

Companies like Arrow Digital, AT Inks, Britomatics, Cosmic Trends, DCC Print Vision Llp, E.I.DuPont India Pvt. Ltd. Electronics For Imaging India Pvt. Ltd. (Efi Optitex), Epson India, Fortuna Colours & Prints Llp, Ganpati Graphics, Grafica Flextronica, Green Printing Solution, Green Tech, Hi Tech Marketing, HP India Sales Pvt. Ltd., Jay Chemicals Industries Ltd., JN Arora & Co., Kamal Sales Corp., KNR Technology Company, Mac Printing Solutions, Mouvent, Negi Sign Systems & Supplies Co., Orange O Technology Pvt. Ltd., Somya Digital Technologies, Spintex Pvt. Ltd./Aura, Tanya Enterprises, Texzium International Pvt. Ltd./Wenli, Veekay Enterprises, & many more are coming up with their technological innovations to showcase their latest product range under the DIGITEX.
 
The extensive exhibit profile ranging from new printers and inks to upcoming techniques will explore new and exciting opportunities offered by digital printing for home furnishing & interior decoration, apparel & fashion and corporate interiors. On the display will be digital textile machinery, digital textile printing machines, dye sublimation process, screen printing machines, t-shirt printing machines, transfer printing process, digital textile printing chemicals, digital textile printing inks (disperse, reactive and pigment inks), heat transfer machines, sublimation paper, software & many more.

Moreover, it’s a great opportunity for digital printing companies, signage industry stakeholders, screen printing industry people from graphic arts industry, merchandisers and other industry players to interact with the leading digital printing technology suppliers and to witness the latest range and innovations in the sector. This is because following the advent of digital printing solution, the applications of fabric or textile is not limited only to the clothing and home furnishing, but has gone far beyond to include signage, flags, posters, back-lit, front-lit, etc. to bring forth a wholesome idea that where all digital textile printing technology can be used.

Points to be noted are numerous benefits of soft signage. Textile or soft signage presses are very eco-friendly, run over water-based inks with little to no odour and low power consumption. Soft signage facilitates customers save on shipping because of being much lighter in weight than other materials used in the signage and graphics industry. Also, fabric-printed signs fold up to create smaller packages, again decreasing shipping costs. But overall, the Show would be a win-win for business visitors as it has much more than focusing on digital printing technology, bringing entire value chain of garmenting and textile printing manufacturing solution under one roof.

Organised by the MEX Exhibitions Pvt. Ltd. in association with Messe Frankfurt India, Gartex Texprocess, this year, will have three more shows apart from the Digitex. These are namely, FABRIC & TRIMS SHOW: A focused area to source all embellishments & fabrics, DENIM SHOW: A zone that aims to bring together the denim supply chain under one roof, and INDIA LAUNDRY SHOW: An ideal platform offering a wide range of business and networking opportunities to manufacturers, suppliers and service providers in the laundry and dry-cleaning industries.

Additionally, there are a couple of focus areas i.e., EMBROIDERY ZONE highlighting the significant evolution that has been taking place in the invention of new technologies and machinery for embroidery. The top variants of embroidery machines, software & allied products will be highlighted in this dedicated segment. Another focus area is GARMENTING & APPAREL MACHINERY that would showcase technological developments in the Garment & Apparel Manufacturing Sector.

Broad exhibit categories at Gartex Texprocess 2019 include embroidery machines, cutting and sewing machines, fabrics & accessories, needles & threads, laundry & washing equipment, finishing equipment, laser cutting machines, digital textile printing machines, automation and software.

Source:

MEX Exhibitions Pvt. Ltd. / Messe Frankfurt

Fotos: (c) ITMA
25.06.2019

A MORE INTERNATIONAL ITMA 2019 SETS NEW RECORD WITH BIGGEST NUMBER OF EXHIBITORS

Since its launch in 1951, ITMA has enjoyed wide industry recognition as the world’s largest textile and garment technology exhibition. This year’s exhibition in Barcelona sees its reputation solidify further with the largest gathering of exhibitors in its history. The record number of exhibitors totaling 1,717 from 45 countries has set a new milestone.

Speaking at the press conference on the opening day of the 18th edition of the exhibition, Mr Fritz P. Mayer, President of the European Committee of Textile Machinery Manufacturers (CEMATEX), said: “The global economy is still facing challenges, accentuated by trade tensions and disruption. However, textile being the world’s oldest manufacturing industry has demonstrated its resilience over the years. 

Since its launch in 1951, ITMA has enjoyed wide industry recognition as the world’s largest textile and garment technology exhibition. This year’s exhibition in Barcelona sees its reputation solidify further with the largest gathering of exhibitors in its history. The record number of exhibitors totaling 1,717 from 45 countries has set a new milestone.

Speaking at the press conference on the opening day of the 18th edition of the exhibition, Mr Fritz P. Mayer, President of the European Committee of Textile Machinery Manufacturers (CEMATEX), said: “The global economy is still facing challenges, accentuated by trade tensions and disruption. However, textile being the world’s oldest manufacturing industry has demonstrated its resilience over the years. 

“This is also the spirit of our exhibitors who continually innovate and launch new technologies and solutions. We are glad that ITMA has been providing a reputable platform for textile machinery manufacturers to market their innovations. This has enabled us to record the largest number of exhibitors in ITMA’s history.”

The exhibits are showcased over 114,500 square metres of net exhibit space, a 9 per cent increase over the previous edition in 2015. The exhibition occupies all nine halls of the Gran Via venue, including the space under the linkway. To allow more companies to participate, many exhibitors were allocated lesser stand space than what they had originally applied for.  

Mr Charles Beauduin, Chairman of ITMA Services, organiser of ITMA 2019 enthused: “The exhibition would have been larger if we had not turned away applicants due to a lack of space. Unfortunately, we could not accommodate a wait-list of about 250 applicants who booked some 8,200 square metres.”

He added: “ITMA has also evolved into a more international exhibition with a rich diversity of technology offerings from both East and West. Almost half of the total number of exhibitors are from non CEMATEX countries. This augurs well for the development of ITMA into a definitive textile and garment platform for the industry.”

International participation
Of the total number of exhibitors, over half are from CEMATEX countries; the balance comprising companies from other parts of Europe, Asia, the Middle East and the Americas. Reflecting the international composition of the participants, the largest number of exhibitors are from Italy (364 exhibitors), China (276 exhibitors), Germany (222 exhibitors), India (169 exhibitors) and Turkey (164 exhibitors).

CEMATEX countries continue to occupy the largest exhibit space, taking up 65% of the total net exhibit space. Italy booked 26% of the space, followed by Germany which booked 18%. The top non-CEMATEX countries are: Turkey with 9%, China with 8%, and India with 5% of the space booked.

Product sectors
Visitors can expect to source a wide range of integrated solutions across the entire value chain in 19 exhibit sectors. Printing, which has seen many advances being made in the last few years, is an exciting growth sector. Chalking up a 38 per cent increase in the number of exhibitors compared with the previous exhibition, it is one of the top five sectors at ITMA 2019:

  • Finishing - 325 exhibitors
  • Spinning - 281 exhibitors
  • Weaving - 182 exhibitors
  • Printing - 157 exhibitors
  • Knitting - 136 exhibitors

Nonwoven and technical textiles due to their wide range of applications continue to be an important sector at ITMA 2019. Garment making, which has been impacted by digitalisation and fast fashion, is also making a bigger impact at ITMA.

Mr Mayer said, “We are extremely pleased to bring garment technology back in focus at ITMA. While ITMA has been traditionally strong in textile making technologies, we are glad that we are able to present garment making solutions from some of the world’s most renowned technology providers. There is an increase of 27 per cent in number of exhibitors as compared with ITMA 2015." Completing the entire value chain is the showcase on fibres, yarn and fabrics. The addition of innovative fabrics in the fibre and yarn chapter at ITMA further completes the sourcing experience for buyers.
 
Focus on innovation
The theme of ITMA 2019 is ‘Innovating the World of Textiles’. To support the innovation drive, CEMATEX has introduced the ITMA Innovation Lab. A new umbrella branding of a series of activities, the Lab includes the Research and Innovation Pavilion, ITMA Speakers Platform, ITMA Sustainable Innovation Award and Innovation Video Showcase. Speakers from the industry have been invited to share their perspectives and experiences at the Speakers Platform which will be held from 21 to 25 June. A finance forum was also held on 21 June.

Co-located events and industry engagement
To encourage the exchange of knowledge, collaboration and networking, several events are staged alongside ITMA 2019. The ITMA-EDANA Nonwovens Forum and Textile Colourant and Chemical Leaders Forum have met with overwhelming response and seats have been added. Similar strong response has also been received by partner events, including the Better Cotton Initiative Seminar, European Digital Textile Conference, TexSummit Global, Planet Textiles, SAC & ZDHC Manufacturer Forum and Texmeeting by TEXFOR.

“The series of co-located events is part of ITMA’s outreach programme to engage industry partners and to create an inclusive platform for the global textile and garment community. We have over 190 international, regional and local organisations lending their support to our exhibition,” Mr Mayer said. ITMA 2019 is held at Fira de Barcelona Gran Via venue till 26 June. The opening hours are from 10.00am to 6.00pm daily, except 26 June when the exhibition will end at 4.00pm.

About CEMATEX & ITMA
The European Committee of Textile Machinery Manufacturers (CEMATEX) comprises national textile machinery associations from Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland and the United Kingdom. It is the owner of ITMA and ITMA ASIA. Considered the ‘Olympics’ of textile machinery exhibitions, ITMA has a 68-year history of displaying the latest technology for every single work process of textile and garment making. It is held every four years in Europe.

 

More information:
ITMA 2019
Source:

CEMATEX & ITMA Services

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

TEXTILE INDUSTRY IN PAKISTAN MUST MODERNIZE

  • The cultivation of cotton is to be expanded

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

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

  • The cultivation of cotton is to be expanded

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

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

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

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

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

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

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

*) Fiscal years (July to June)

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

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

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

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

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

Sources: Pakistan Bureau of Statistics, UN Comtrade

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

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

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

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

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

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

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

Problems with the supply of cotton

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

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

More information:
Pakistan Pakistan
Source:

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

Photo: pasja1000 Pixabay
19.03.2019

SRI LANKA'S APPAREL AND TEXTILE EXPORTS RECEIVE A BOOST

  • Modernization of production facilities required

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

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

  • Modernization of production facilities required

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: UN Comtrade, March 2019

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

 

More information:
Sri Lanka
Source:

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

Photo: Pixabay
26.02.2019

TURKEY REMAINS AN IMPORTANT MARKET FOR GERMAN TEXTILE MACHINERY

  • Competition from the Far East increases modernization pressure

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

  • Competition from the Far East increases modernization pressure

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

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

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

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

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

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

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

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

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

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

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

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

 

 

 

 

PIXABAY
27.11.2018

EGYPT'S TEXTILE AND CLOTHING SECTOR FACING MODERNIZATION

  • State enterprises get better equipment

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

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

  • State enterprises get better equipment

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

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

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

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

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

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

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

n.a. = not available
Source: Comtrade

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

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

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

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

Source: UN Comtrade

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

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

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

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


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

 

More information:
GTAI Ägypten
Source:

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

20.11.2018

CHINA'S CLOTHING COMPANIESS REPOSITION THEMSELVES

  • AUTOMATION AND STRONGER FOCUS ON THE DOMESTIC MARKET

Beijing (GTAI) - The Chinese apparel industry is repositioning itself. Increased wage costs force more automation, more customers demanding more quality.
Nowhere else in the world so much clothing is being produced as in China. According to the sector portal http://www.ask.com, alone 22.9 billion pairs of socks were being produced in 2017. This was 4.8 percent more than in the previous year, and the production of jeans amounted to more than 0.6 billion pieces according to information from http://www.chyxx.com, an increase of 5.0 percent.

  • AUTOMATION AND STRONGER FOCUS ON THE DOMESTIC MARKET

Beijing (GTAI) - The Chinese apparel industry is repositioning itself. Increased wage costs force more automation, more customers demanding more quality.
Nowhere else in the world so much clothing is being produced as in China. According to the sector portal http://www.ask.com, alone 22.9 billion pairs of socks were being produced in 2017. This was 4.8 percent more than in the previous year, and the production of jeans amounted to more than 0.6 billion pieces according to information from http://www.chyxx.com, an increase of 5.0 percent.
China is not only the world's largest production nation, but also by far the world's largest export nation in the sector. However, countries such as India, Vietnam, Bangladesh and Cambodia are catching up enormously due to lower wages. As a result, China - measured by its share of world clothing exports - has lost around 5.5 percentage points since 2013, down to only 32.4% in 2017.

China's share of world clothing exports 1) (in USD billion; shares in %)
  2008 2013 2015 2017
World Export 380 468 471 486
China Export 120 177 175 157
China's share 31.6 37.9 37.1 32.4

1) SITC Pos.84; 2) Partially estimated on the basis of information provided by the ITC
Source: UN Comtrade, GTAI calculation.

By contrast, Bangladesh (+3.7 points), Vietnam (+2.0 points) and Cambodia (+1.3 points) in particular recorded gains in the period from 2013 to 2017. In absolute terms, Chinese apparel exports fell by 15.6% to USD 157 billion since the record year of 2014 (USD187 billion). No improvement is in sight as exports are stagnating in 2018.

Export of clothing 1) by country (in USD million; shares in %)
  2008 Share 2013 Share 2017 Share
World Export 380,000 100.0 468,000 100.0 486,000 100.0
China 120,405 31.6 177,435 37.9 157,464 32.4
ASEAN3) 29,793 7.8 42,123 9.0 61,441 12.6
Vietnam 8,724 2.3 17,230 3.7 27,930 5.7
Kambodscha 3,014 0.8 4,832 1.0 11,250 2.3
Bangladesch 12,035 3.2 19,679 4.2 38,460 7.9
India 10,968 2.9 16,843 3.6 18,313 4.0
Germany 18,183 4.8 19,178 4.1 22,034 4.6

1) SITC Pos. 84; 2) partly estimated on the basis of ITC data; 3) excluding Laos and Brunei
Sources: UN-Comtrade; ITC; GTAI calculation

Rising wage costs as investment driver
Due to rising personnel costs throughout the country, manufacturers were and are under considerable cost pressure. With an average hourly wage for a Chinese worker of the equivalent of around USD 5.2 (2017), China has not only left classic emerging markets such as Thailand (USD 2.3) or Mexico (USD 3.9) behind - not to mention India with USD 0.8 - but is already approaching individual European countries (e.g. Greece 2016: USD 6.0).


Companies have met and continue to meet this challenge through increased automation. Between 2015 (9.1 million) and 2017 (7.8 million) alone, the workforce of the textile and clothing industry shrank by 14.3 percent - according to the Chinese statistical office. More and better machines make it possible to say goodbye to the previous labor-intensive production - and thus lower cost pressure with more precise and faster execution. Imports of textile machinery are also benefiting from this. These rose in 2017 by a whopping 34.1 percent year-on-year to nearly USD 3.9 billion.


Germany no longer number one textile machinery supplier
Although Germany lost its position as most important supplier country for textile machinery to Japan, it was still able to increase its deliveries by 28.3 percent to USD 1.1 billion. This corresponded to a supply share of 28.3 percent. Japanese manufacturers achieved a ratio of 30.0 percent with just under USD 1.2 billion (+52.8 percent). Competition from Italy came to only 11.5 percent. The good performance is remarkable due to the fact that a number of German textile machine manufacturers have invested heavily in recent years in the region in order to be able to meet the wishes of Chinese customers more effectively.

China's textile machinery imports *) by selected countries (in USD million; year-on-year change and 2017 shares in %)
  2015 2016 2017 Change Shares
Total 3,354 2,907 3,897 34.1 100.0
including          
Japan 728 765 1,169 52.8 30.0
Germany 1,219 851 1,101 29.4 28.3
Italy 415 347 448 29.1 11.5
Taiwan 206 187 203 8.6 5.2
Belgium 134 124 173 4.0 4.4
Switzerland 104 111 126 13.5 3.2

*) SITC-Pos. 724
Source: UN-Comtrade; GTAI calculation

Due to the high pressure to modernization Chinese textile machinery imports in the first seven months of 2018 increased by almost 15 percent compared to the previous period. German machine manufacturers in particular benefited from this development, with deliveries increasing by 30 percent in the same period. As Japanese exports of textile machinery to China stagnated at the same time, German manufacturers are likely to take the lead again in 2018.
As the garment exports come under such severe pressure, the industry is now increasingly geared towards the local market. Whereas ten years ago about half of the value of production was exported, today it is only about a third. In fact, the Chinese spent an average of around 4.8 percent of their disposable income or 1,238 Renminbi (RMB; around 183 US dollars; 1 USD = 6.7531 RMB, annual mean rate of 2017) on clothing in 2017, according to the Chinese Statistical Office. With an average disposable annual income of 25,974 RMB and a population of 1.39 billion, this translates into a market volume of approximately USD 255 billion.

China's consumers demand quality and design
This makes the Chinese clothing market one of the largest in the world - and one that is becoming increasingly diversified. Local offerings range from the cheapest mass-produced goods, qualitatively and visually appealing products in the mid-price segment up to luxury and haute couture. Much has changed in the upper price segment in particular. "In the past, the Chinese exported the best qualities, but today they keep them for themselves," says a British sourcing expert who has been working in the Kashmir business for decades, describing the development.

In general, Chinese consumer demand is becoming increasingly sophisticated and differentiated. In addition to the tendency towards recognized brands, an increasing individualization of consumption can also be observed. The question is what fits well, pleases and is also somehow "special". "People in the North used to buy cashmere clothes because they warmed well," explains Cheng Xudong, president of the private Dongrong Group. The design was of secondary importance - and accordingly most of the pieces were "old-fashioned".

"Today, cashmere clothes also look very good," Cheng adds. "That's why it's bought not only in the north, but also in the more southern parts of the country." In general, the middle class in particular is looking for a high-quality lifestyle - and clothing is a part of it. The entrepreneur is convinced that if the textile and clothing industry succeeds in adapting to the higher quality demands of local customers through a technical upgrade and improved design, then the industry will continue to do well in the future.

Additional information
Further information on the economic situation, the sectors, business practice, law, customs, tenders and development projects in China can be found at http://www.gtai.de/china The website http://www.gtai.de/asien-pazifik provides an overview of various topics in the region.

 

More information:
China Sampe China GTAI
Source:

Stefanie Schmitt, Germany Trade & Invest www.gtai.de

Indien fördert die Textilverarbeitung Photo: Pixabay
23.10.2018

INDIA PROMOTES TEXTILE PROCESSING

  • Integrated industrial parks necessary

New Delhi (GTAI) – The Indian textile sector is not only important for bringing foreign currency into the country, but also because of its role as an employer. The formation of new clusters is now getting supported by the government.

India, as one of the leading global producers not only of cotton, but also of wool, jute and silk, has a historic tradition in converting raw materials. Accordingly, India’s industry concerning spinning and weaving of fabric is broadly positioned, while contributing 14% of India's gross domestic product.

  • Integrated industrial parks necessary

New Delhi (GTAI) – The Indian textile sector is not only important for bringing foreign currency into the country, but also because of its role as an employer. The formation of new clusters is now getting supported by the government.

India, as one of the leading global producers not only of cotton, but also of wool, jute and silk, has a historic tradition in converting raw materials. Accordingly, India’s industry concerning spinning and weaving of fabric is broadly positioned, while contributing 14% of India's gross domestic product.

Even though the sector mostly consists of small enterprises, some clusters emerged. The textile industry can mainly be found in the federal states of Gujarat, West Bengal, Andhra Pradesh and Tamil Nudo.     
A more detailed structure is drawn by Sanjay K Jain, chairman of the textile Association “Confederation of Indian Textile Industry in an interview with Germany Trade & Invest: Knitwear clusters are found in Tirupur, Tamil Nadu, Kolkata, West Bengal, Ludhiana, and Kanpur. There are weaving centers in Ichankaranji and Bhiwandi (both Maharashtra), Erode (Tamil Nadu), Surat (Gujarat), and Bhilwara (Rajasthan). For ready-to-wear a cluster in Panipat (Haryana) and for the production of shirts and trousers has formed a cluster in Bangalore (Karnataka).
 
The state subsidy agency India Brand Equity Foundation (IBEF) recognizes four industrial centers – also according to the regional availability of raw materials. In the north (Kashmir, Ludhiana and Panipat) about 80 percent the production of woolen goods are concentrated. In the west (Ahmedabad, Mumbai, Surat, Raijkot, Indore and Vadodara) is the focus of the cotton industry. Hosiery (Tirupur, Coimbatore and Madurai) and silk products (Bengaluru, Mysore and Chennai) have their strengths in the South. The east of the country is focused on jute goods (Bihar and West Bengal). But also wool (Uttar Pradesh) and cotton goods (West Bengal) are represented. In addition, ac-cording to the IBEF, India has seven export-oriented Special Economic Zones for Textiles and Clothing in mid-2018.

A handicap for the textile industry is the missing size. For example, most low-capacity sites are scattered across the country. The construction of large integrated industrial parks is necessary. The various states and state institutions are also trying to promote new textile clusters.

The central government budget will provide ap-proximately US $ 4 million for the Scheme for Integrated Textile Parks (SITP) program in the fiscal year 2018/19 (April 1 to March 31). There are currently 47 projects in this field. The pro-gram intends the further development of such settlements with a common infrastructure.

More information:
Indien
Source:

Rainer Jaensch, Germany Trade & Invest www.gtai.de

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY Photo: Pixabay
11.09.2018

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY

  • Clothing exports are declining 

New Delhi (GTAI) - Structural weaknesses and fiscal reforms are affecting the Indian textile industry. Modernization and diversification are necessary. For this where support measures will come into force.

  • Clothing exports are declining 

New Delhi (GTAI) - Structural weaknesses and fiscal reforms are affecting the Indian textile industry. Modernization and diversification are necessary. For this where support measures will come into force.

In the 2016/17 fiscal year (April 1st to March 31st), India's government initiated a number of fundamental reforms such as the introduction of the nationwide Goods and Services Tax (GST) and a partial currency devaluation. These measures are intended to advance the economy as a whole in the medium to long term, but have led to uncertainty and difficulties in individual sectors, including the textile industry. Added to this are high cotton prices. The government is now trying to help the industry with individual measures. It remains to be seen whether these will be sufficient and lead to a sustained improvement. Finally, there are structural weaknesses which are also slowing down the growth of the Industry.

"The by the introduction of GST caused dent and monetary depreciation has now been overcome. However, the structural problems remain, so that no fundamental changes in the textile industry are to be expected", according to the assessment of a German supplier with many years of experience in India in talks with Germany Trade & Invest (GTAI).

Government launches aid measures
However, some government measures should provide relief. At the beginning of August 2018, import duties on 328 textile products, especially fabrics and nonwovens, were increased from around 5 to 10 percent to up to 20 percent. Also, at the beginning of the month, the Executive Board introduced four bills to amend the general VAT Act introduced on July 1st 2017. This should make refunds, for example of taxes on intermediate products, easier and faster. The introduction of GST and the delays in reimbursement have put particular pressure on the liquidity of small and medium-sized companies, which make up the bulk of textile companies. For example, the denim industry temporarily had to take 25 to 30 percent of its capacity out of production after the tax introduction.

 Also, the Ministry of Textiles wants to strengthen the to it entrusted weakening industry. At the beginning of August 2018, for example, it added changes to the Technology Upgradation Funds Scheme (TUFS), which has been in existence since 1999. This now expanded technology promotion program allows cooperative banks to provide financing to textile companies for technological improvements. They also become accessible for liability partnerships. Of the approximately USD 1.1 billion, that the central government budget is holding for the textile industry in the fiscal year 2018/19, one third, 14 percent more than in the previous year, are intended for the TUFS. Manufacturers of synthetic fibers and the clothing industry in particular are likely to benefit from this, according to industry sources.

The existence of an own Ministry of Textiles shows how important this industry is for India, not only as a source of foreign exchange, but also as an employer. The entire sector, from spinning mills, weaving mills to clothing and other finished goods, contributed around 14 percent to value creation in the manufacturing industry and 13 percent to foreign exchange revenues in 2017, and employs directly 40 million and indirectly 60 million workers.

As one of the world's leading producers of cotton, jute and silk, India has comparative advantages in the textile sector and can look back on a long tradition in processing. Accordingly, cotton is the main raw material in yarn and fabric production. After all, 5.7 billion tons of yarn were spun in 2016/17, achieving an annual average increase of 3.1 percent between 2011 and 2017. The weaving mills processed 63.5 billion square meters of fabric in 2016/17, after 61.7 billion in 2011. The proportion of cotton fabrics rose from 51 to 61 percent in 2011 to 2017. The remaining part is accounted for approximately equally by synthetic and blended fabrics.

 
Production and export growth come to a halt Based on the previously strong growth the government is optimistic. According to forecasts by the Ministry of Textile, India's textile and clothing industry is expected to more than double its sales between 2015 and 2021. Exports are expected to increase from USD 35 billion to USD 82 billion, after doubling in the period from 2006 to 2014 from USD 17.6 billion to USD 37.6 billion. After that, however, they stagnated and, at USD 35 billion in 2017/18 and missed the by the government set target by USD 10 billion. The production of textiles and clothing declined from 2015 to 2017. It is unlikely to improve in 2018.

Textile and clothing industry in India 1)
  2015/16
 
2016/17 2)  2017/18 2)
Export of textiles and textiles products USD in USD billion 18.1 18.2 18.7
Export of clothing 17.0 17.4 16.7
Import of yarn, fabrics, made-ups in USD billion 1.7 1.5 n.a.
Change of production of textiles in % -0.2 -3.2 n.a.
Change of production of non-knitted clothing in % -3.6 -3.3 n.a.


1) Financial years from 1 April to 31 March; 2) Provisional data for 2016/17 and 2017/18
Source: Statistical Office India
     

Clothing industry needs to modernize 
India's textile industry has cost advantages over industrialized countries and advanced emerging countries such as China. Smaller developing countries, however, have become well-known competitors in the meantime and have partly surpassed India in terms of clothing. So Bangladesh and Vietnam exported more clothing than India. In addition there is growing competition from other low-wage countries such as Cambodia, Sri Lanka and Indonesia. Some of these countries have free trade agreements with the EU, while India has difficulties in negotiating them. The smaller competitors have also geared their clothing industry to exports and modernized it accordingly. After all, they do not have significant local markets. The Indian textile manufacturers are different: If there is not enough quality for export, the domestic market, which has a population of 1.3 billion inhabitants and is growing strongly, is still there, industry representatives explain to GTAI.

India's apparel industry therefore still has a considerable potential for modernization and requires new production technologies, particularly to improve operating efficiency. Other structural weaknesses include strong wage increases with insufficient productivity growth and a shortage of well-trained skilled workers. Other disadvantages are the fragmentation of the clothing industry - many companies lack size - and the lack of adaptation to global fashion trends. While the fashion world is more prone to fiber mixed fabrics, the Indian clothing is not yet following this trend. There is a lack of product diversification.

The spinning and weaving sector looks more modern. Industry experts attest to it a leading international position in terms of size, technology, productivity, quality and price. This is also evident when importing machines. India was the most important export market for German spinning machines to China in 2017 and the fifth largest market for weaving machines, according to the Textile Machinery Association of the German Engineering Federation (VDMA). In textile finishing machinery, India does not rank among the top six export markets, but its competitor Bangladesh does.

Double-digit growth in foreign direct Investment 
Foreign investments in the Indian textile industry are welcome and 100 percent foundations by foreign companies are welcome. On promotional trips to countries such as Japan, Germany, Italy and France, India is actively attracting investors and has not been unsuccessful. The inflow of foreign direct investment into the textile sector, including dyed and printed textiles, amounted to USD 2.7 billion between April 2000 and September 2017. Cumulative investments increased by an annual average of 17.3 percent between 2010 and 2017. However, the bulk of the investment is being stemmed by national Indians. Total investments in India's textile sector from June 2017 to May 2018 amounted to USD 4.2 Billion.

Contact Details
Name Internet Remark
Germany Trade & Invest http://www.gtai.de/indien Foreign information for the German Export Business
AHK Indien http://www.indien.ahk.de Contact for German companies
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Government 
Confederation of Indian Textile Industry http://www.citiindia.com Textile Association
Textile Association India http://www.textileassociationindia.org Textile Association India
The Clothing Manufacturers Association of India http://www.cmai.in Clothing Association


    

More information:
India Bangladesh(7621)
Source:

Rainer Jaensch, Germany Trade & Invest www.gtai.de

30.01.2018

TEXTILE AND CLOTHING MANUFACTURERS INVEST IN EGYPT

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

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

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

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

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

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

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

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

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

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

Source: UN Comtrade

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

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

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

Source: UN Comtrade

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

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

21.11.2017

ITALY'S LEADING TRADE FAIRS ARE GAINING IMPORTANCE AGAIN

  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year. This is the result of the latest survey by the Italian trade fair association Associazione Esposizioni e Fiere italiane (AEFI).
  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year. This is the result of the latest survey by the Italian trade fair association Associazione Esposizioni e Fiere italiane (AEFI). Compared to the whole year, the development seems to be less positive, in 2016 significantly fewer customers attended exhibitions than in 2015. The main reason for this, however, is the World Expo in Milan, which attracted more than 21 million visitors in 2015.
 
According to the AEFI survey, more and more visitors and exhibitors from non-EU countries are coming to the fairs in Italy. The highly specialized, internationally oriented trade fairs in the fields of food and wine, tourism, fashion and cosmetics, furniture and design as well as mechanical engineering are particularly well-frequented.
 
Another trend is the increasing internationalization of the Italian trade fair landscape with the number of foreign exhibitors rising again in 2016, their share is amounting to 34 percent. One reason for this development is the fact that the number of Italian exhibitors fell during the years of the economic crisis from 2009 to 2015. At the same time, the Italian fair exhibitors are focusing on the internationalization of the offer; in concrete terms they are setting up subsidiaries and joint ventures abroad. Last but not least, the Italian Government encourages the participation of small and medium-sized enterprises in trade fairs abroad, relying on joint stands and subsidies.
 
Developments of fairs in Italy *)
  2014 2015 2016
Number of exhibitions 54 57 56
Exhibition space (Mio. sqm) 1,9 1,6 1,6
Number of exhibitors 39,640 35,635 39,690
.. from abroad 12,610 12,601 13,379
Number of visitors 3,201,234 3,017,166 2,732,838
.. from abroad 779,096 805,960 551,013

*) Members of the Federation Comitato Fiere Industria

Source: Comitato Fiere Industria (CFI)
 
Consolidation of exhibition companies offers opportunities
The Italian exhibition companies have developed differently in recent years. Large exhibition centers such as Milan, Verona, Bologna and Parma held up better than second-tier locations in terms of sales. The stronger international presence of the companies has a positive Impact.
 
The largest trade fair company in Italy, Milan Trade Fair, has founded several joint ventures abroad in recent years. In India and China Fiera Milano is cooperating with the Hanover Fair. In October 2017, Messe Düsseldorf announced a cooperation between the Düsseldorf-based Interpack and Ipack-Ima in Milan, Europe's two largest packaging and packaging-machine trade fairs. At the same time, Milan Trade Fair is retracing its activities in Brazil, South Africa, Russia and Thailand, due to the economic situation in these countries. In total, the Milan Trade Fair achieved sales of EUR 221 mio 2016, EUR 7 of which abroad. Since many years, however, the business has been in deficit. In 2016 the losses totaled to EUR 23 mio ros. In addition to the difficult financial situation, the fair had to cope with a (financial) scandal that affected the infiltration of a subsidiary by the mafia. Only in 2015  the company - in the context of the Expo 2015 – wrote black figures.
 
In 2016 the exhibition companies of Rimini (important in the areas of environment, tourism, and transport) and Vicenza (mainly in the area of gold and jewelry) are merged to the Exhibition Group (IEG). The group generated in the report-year sales of EUR 125 mio. However, this meant that it was not able to displace the Bologna trade fair - measured in terms of sales - from second place among the Italian suppliers. The Bologna Fair, which is also responsible for the exhibitions in Modena and Ferrara, reported sales of EUR 132 mio and a profit of more than EUR mio in 2016. IEG and Bologna Fair are expanding their business in Asia and especially in China.
 
The smaller exhibition companies have felt the long economic downturn in Italy. The fair in Brescia has gone bankrupty, it had to become rescued in Reggio Emilia by the provincial administration. One of the former most important fairs in southern Italy, the Fiera del Levante in Puglia, lost its importance during the crisis years. The main reason for the consolidation of the trade fair sector is the oversupply of events in Italy. More than twice as many trade fairs are organized here as in Germany.
 
An international trade fair overview is offered by the Exhibition and Trade Fair Committee of German Business (AUMA). Information about the foreign fair programs of the federal and states can thus be obtained here (http://www.auma.de).
 
Contact
Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. (AUMA)
Exhibition and Fair Committee of German Business e.V.
Littenstraße 9
10179 Berlin
POB 02 12 81
10124 Berlin
T +49 (0)30 240 00-0
F +49 (0)30 240 00-330
info@auma.de
http://www.auma.de

Comitato Fiere Industria (Industriemesse)
Via Pantano, 2
20122 Milan, Italy
T +39 (0)2 720 002 81
info@cfionline.net
http://www.cfionline.net

Associazione Esposizioni e Fiere italiane (Italian Association of Fairs and Exhibitions)
Via Emilia, 155
47900 Rimini, Italy
T+39 (0)541 744 230
info@aefi.it
http://www.aefi.it
More information:
Fairs Italy
Source:

Robert Scheid, www.gtai.de

Messe Frankfurt Exhibition GmbH
15.08.2017

Home Textiles Sourcing Expo showcases 158 international exhibitors

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

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

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

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

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

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

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

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

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

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

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

 

08.08.2017

INDIA'S TEXTILE AND CLOTHING INDUSTRY STRONGLY SUPPORTED

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

The Indian textile and clothing industry is of an overall economic importance. It accounts for 14% of the total industrial production and employs directly 51 million people. Additional further 68 million people in households and micro enterprises are working for the industrial companies. Because the national economy as a whole needs to create about 12 million additional jobs per year, the government has chosen the textile industry as an employment motor. India, in contrast to the textile giant PRC, has high advantages with its labor cost.

 
The availability of natural materials such as cotton, jute and silk is a further advantage of the textile industry, which can look back on a long tradition of processing. India is now the world's largest producer of cotton. In the cultivation year 2016/17 year (4.1 - 31.3) estimated 5.9 million tons are expected to be harvested.

The cotton will be processed into yarns and fabrics. For the production of yarns, 61 million spindles (measured in spindle equivalents) are available. In 2015/16, they spun about 5.7 million t of yarn, of which 4.1 million t are made out of cotton fibers. The production of cotton cloths was about 38 billion sqm., mainly produced in decentralized weaving mills with simple mechanical looms. The global trend in clothing, however, goes to artificial fibers. In order to protect their domestic production the Ministry of Finance levies tariffs.

Textile industry with its own ministry and many promotional programs 
The Ministry of Textiles subsidizes the sector through several programs, which support the technical modernization, the construction of industrial parks, qualification, training and marketing. Garment factories may even be reimbursed for duties and fees paid. For this purpose the budget of the Ministry of Textiles was once again significantly increased in the financial year 2017/18.

The textile and clothing industry does not only want to score on the domestic market, it also wants to play a bigger international role. In a five-year plan, the Ministry of Textiles had targeted an expansion of exports to USD 64 billion by 2016/17. This target has not yet been achieved, in 215/16 the exports of textiles and clothing amounted to USD 37.6 billion. The exports of textiles even shrank against the year before. 

Textile and clothing industry in India (financial years from April to March) 
  2014/15 2015/16
Export of textiles in USD Billion  21.7 20.6
Imports of textiles in USD Billion 5.5 5.4
Export of clothing in USD Billion 16.8 17.0
Imports of clothing in USD Billion 0.5 0.6
Change in the production of textiles (in %) 3.7 2.2
Change in the production of clothing (in %) 0.2 14.7

Sources: Ministry of Textiles, Ministry of Statistics and Programme Implementation

The local garment industry has good chances of development on a large and growing domestic market. According to industry estimates the retail sector sold clothing worth approximately USD 45 billion in 2016. Experts say the world's fifth-largest market is expected to grow well above 10% in the medium term. The backlog of the 1.3 billion inhabitants is not yet covered. The trade imports international branded goods mainly from China and Bangladesh. Standard articles and custom-made products are sewn by the local industry.

Garment sector with opportunities and problems 
Cheap wages are a location advantage. They vary however very different within the subcontinent. The statutory minimum wage regulations differ between the 29 federal states. In addition the person's age, the company membership and abilities are used to calculate the minimum wage.

Due to the increasing production costs in China, labor-intensive manufacturing is moving to more favorable locations. Not only labor costs play a major role here. The complex labor law strongly restricts the efficiency of labor markets in India. Investors consider the labor law, logistics and the structure of supply chains as to be difficult. The World Bank found in its study "Stitches to Riches" in 2016 (see https://www.openknowledge.worldbank.org/handle/10986) that Bangladesh, Indonesia, Cambodia and Vietnam, surpass the competitor India in the points quality, delivery times, reliability and sustainable social responsibility.

India is also missing free trade agreements (FTAs) which facilitate access to international markets and regulate them reliably. The European Union and India have been negotiating as an example a comprehensive FTA for over 10 years with longer interruptions.

Fragmented sector structure with international Champions 
Information on the number of companies, their size classes and investment volumes are not available. Smaller textile companies and retailers are partially not registered and do not pay taxes. Medium-sized companies are very flexible, but they need to   mechanize, automate and upgrade technically in order to survive.
Larger companies look back on their long-standing tradition and have developed into internationally networked corporations. According to the Indian financial service Moneycontrol, the three largest corporations in the clothing industry are: KPR Mills (last net sales circa USD 300 million), Page Industries (USD 270 million) and Gokaldas Exports (USD 170 million); In the textile sector in general: Bombay Rayon (some USD 640 million), Sutlej Textiles (USD 350 million), SEL Manufacturing (USD  300 million), Mandhana Industries (USD 250 million); in the knitting sector: Nahar Industrial Enterprises (USD 270 million), Rupa (USD 160 million); Cotton spinning: Vardhman Textiles (USD 860 million), Trident (USD 560 million), Indo Count (USD 310 million); Spinning of synthetic fibers: RSWM (USD 450 million), Indorama (USD 390 million), Sangam (USD 230 million); Weaving and other processes: Alok Industries (USD 1.8 billion), Welspun (USD x750 million), Garden Silk (USD 370 million); Other areas: Arvind (USD 830 million), Nahar Spinning (USD 310 million), JBF Industries (USD 550 million), Bombay Dyeing (USD 280 million).

Foreign textile companies invest and explore
The government is promoting the "Make in India" campaign in the textile sector for foreign direct investments. Company foundations are for 100% in foreign hands (see http://www.makeinindia.com/sector/textiles-and-garments). The sector attracted USD 2.4 billion from 2000 to 2016 in FDI.

Foreign companies can explore the markets at various trade fairs. The textile ministry wants to expand the “Textiles India”, which took place in Gandhinagar (Gujarat) in June 2017, to a mega-event (https://www.textilesindia2017.com). The international garment industry also met at the same time at the „India International Garment Fair" (http://www.indiaapparelfair.com).

The "National Garment Fair" will take place from July 10th to 12th in Mumbai (http://cmai.fingoh.com/event/65th-national-garment-fair-1/Registration). And Messe Frankfurt is organizing "Techtextil India" from September 13th to 15th in Mumbai. Here German exhibitors can participate in a community stand (http://www.auma.de/de/messedatenbank/seiten/moesetailseite.aspx?tf=135499).

Internet addresses
Name Internet address Remarks
Germany Trade & Invest http://www.gtai.de/Indien Foreign trade information for the German export economy
AHK Indien http://www.indien.ahk.de Starting point for German companies 
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Authority
Confederation of Indian Textile Industry http://www.citiindia.com Textile confederation
Textile Association India http://www.textileassociationindia.org Textile industry association
The Clothing Manufacturers of India http://www.cmai.in Clothing industry association

 

Source:

Thomas Hundt, Germany Trade & Invest www.gtai.de

CHINA'S TEXTILE INDUSTRY CONTINUES TO AUTOMATE © Carola Langer / pixelio.de
11.07.2017

CHINA'S TEXTILE INDUSTRY CONTINUES TO AUTOMATE

  • Japan replaces Germany as the most important supplier of textile machines
  • Digitization is the trend of the future

Beijing (GTAI) - China, the largest apparel export apparel nation, is losing international market share due to rising personnel costs. The companies react with increased automation and production dis-placements. While imports of textile machines from Japan are gro-wing, deliveries from Germany are falling above average. The next wave of modernization will involve more digitization.

  • Japan replaces Germany as the most important supplier of textile machines
  • Digitization is the trend of the future

Beijing (GTAI) - China, the largest apparel export apparel nation, is losing international market share due to rising personnel costs. The companies react with increased automation and production dis-placements. While imports of textile machines from Japan are gro-wing, deliveries from Germany are falling above average. The next wave of modernization will involve more digitization.

Internationally, the PRC is by far the largest exportation nation of clothing. According to UN Comtrade after decades of ascent the peak seems to have crossed in 2014 with a record share of global clothing exports of 39.3%. Since then things are developing slowly but continuously downwards. In 2016, the Chinese share was estimated to be 37.1% (compared to 3.8% in Germany).  China loses market shares particular in favor of ASEAN countries such as Vietnam, Bangladesh or India. 

Export of clothing by country (SITC 84, export in USD million, share of world exports in %)
  2008 Share 2014 Share 2015 Share 2016 Share
World export1) 380,000 100 469,000 100 454,000 100 430,000 100
.PR China 120,405 31.7 186,614 39.3 174,702 39.3 159,645 37.1
.ASEAN, thereof: 26,410 7.0 39,928 8.4 40,859 9.0 n.a. -
.Vietnam 8,724 2.3 20,174 4.3 21,948 4.8 n.a. -
.Bangladesch2) 12,035 3.2 24,584 5.2 26,603 5.9 29,540 6.9
.India 10,986 2.9 17,650 3.7 18,168 4.0 17,932 4.2
.Germany 18,183 4.8 20,349 4.3 17,382 3.8 16,400 3.8

1) from 2014 estimation of world export; 2) based on information provided by partner countries; Source: UN Comtrade

Domestic textile machine manufacturers catching up

In fact, the Chinese textile industry is under considerable pressure because of the increase in personnel expenses. According to a Euromonitor study, the hourly wages of Chinese workers tripled between 2005 and 2016 from USD 1.20 to USD 3.60. Thus the People's Republic not only left classic emerging countries like Thailand ( USD 2.20 ) or Mexico (USD 2.20) behind  - not to mention USD 0.70 in India - but is already approaching individual European countries like Portugal (USD 4,50).

More information (in German) on wages and salary costs in China can be found at:
http://www.gtai.de/GTAI/Navigation/DE/Trade/Maerkte/Geschaeftspraxis/lohn-und-lohnnebenkosten,t=lohn-und-lohnnebenkosten--vr-china,did=1718070.html

Many companies face the challenge by greater automation. The Chinese textile companies can increasingly rely on textile machinery made in the country itself. While in 2016, according to official statistics, investments in the sector rose by 8.5% year on year to Yuan 1,142.4 billion (RMB, around USD 172 billion, 1 USD =6.642 RMB, annual average price in 2016), imports of textile machinery fell by 12.5% to USD 2.8 billion. However, there are no statistics on the extent to which sales are distributed by purely local companies or to those with a foreign background.

The fact is that, for example, German textile machine manufacturers have invested heavily locally in recent years in order for being able to meet the needs of their local customers. Against this backdrop, Germany was still able to defend its top spot with an import share of 29.5% against Japan in 2016, but had to cope with a strong minus of 30.6%, while the Japanese increased by 5.8%. Italy, ranked third and the most important Europe an competitor recorded a drop of 16.1%.

Textile machinery imports in the PRC by selected countries
(in USD millions, year-on-year change and share 2016 in %)
  2012 2013 2014 2015 2016 Change Share
Total, thereof: 4,518.0 4,477.3 4,209.6 3,246.8 2,84.,9 -12.5 100.0
.Germany 1,499.5 1,330.1 1,435.0 1,209.5 839.5 -30.6 29.5
.Japan 1,327.3 1,357.8 1,281.4 721.5 763.3 5.8 26.9
.Italy  479.5 416.7 435.2 407.1 341.6 -16.1 12.0
.Taiwan 189.9 233.6 227.5 207.2 186.9 -9.8 6.6
.Belgium 126.6 211.6 118.5 133.0 123.3 -7.3 4.3

Source: China Customs, GTAI calculation

In the current year 2017, however, the Japanese seem to take the rank of the competitor Germany with an increase of 51% in the first four months. The overall textile machinery import grew by a strong 19.7% after the weak previous year before. Import from Germany however did not benefit from this and fell by 8.9%. As a result the German share of machinery supply decreased from 29.5% (2016 as a whole) to 25.0% in the first four months of 2017, while Japanese companies increased their share from 26.9% to 31.9%.

Recent import development for textile machinery in 2017, in USD million, changes against last year and share in %
  Januar bis April 2017 Change  Share
Total, thereof: 1,131.0 19.7 100.0
.Japan 360.4 51.6 31.9
.Germany 282.9 -8.9 25.0
.Italy 130.1 16.8 11.5
.Taiwan 65.4 17.4 5.8
.Belgium 65.3 25.2 5.8

Source: China Customs, GTAI calculations

Production shift continues

Many Chinese textile companies are also thinking about a dislocation production - either to cheaper foreign countries or to the more favorable Chinese hinterland. In 2016, the Autonomous Region of Xinjiang became the main destination for new settlements in the western part of the People's Republic. On average, two new textile factories were opened every day in Xinjiang.

The regional textile industry office in Xinjiang is expecting an even greater run for 2017, thanks to massive political and financial support. Many jobs however are not created there. On-site visitors report about state-of-the-art facilities operated by only a few specialists. The political message is clear: Chinese textile production should remain in the country, be of a higher quality and, if necessary, be reoriented in the direction of technical textiles.However, at least private fashion manufacturers are skeptical about whether the politically favored "Go-West" actually pays for them. Because there too, wages are likely to rise sooner or later, according to the justified Apprehension.

The fact that Vietnam, Bangladesh, South Korea and Cambodia have entered the league of important PRC purchasing countries within a few years is a result not least of the fact that Chinese (and other) manufacturers already have dislocated production capacities. They return their products from there for sale to China.Nevertheless, the very large displacement wave so far has not yet happened. In fact, certain limits are imposed on the shift, since the target countries often encounter their capacity limits. Added to this is the extraordinary advantageous network of the various production stages in China: from cotton harvesting to textile processing and final finishing.

Future theme digitization As part of the country-wide "Made in China 2025" strategy, the textile industry is trying to exploit the many and new opened possibilities of digitization. In view of the increasing individualization of consumption, more machines will probably be required in the future, which are, for example, able to knit sweaters according to the size, color and pattern of the individual customer. In principle, intelligent networking of production, real shops and e-commerce are seen as the challenge of the future.

 

imm cologne 2017 © Koelnmesse GmbH, Thomas Klerx
07.02.2017

TRADE FAIR DUO OF IMM COLOGNE AND LIVINGKITCHEN ACHIEVES MORE THAN 150,000 VISITORS FOR THE FIRST TIME

  • One in two trade visitors came from outside Germany
  • The top 30 global retail chains were in Cologne
  • Cologne expands its position as the global capital for interior design

imm cologne and LivingKitchen have achieved a record number of visitors this year. "We met our target and have broken the 150,000-visitor mark," said Gerald Böse, President and Chief Executive Officer of Koelnmesse GmbH, who is delighted with the results. Roughly every second trade visitor came from outside Germany, with foreign trade visitors accounting for nearly 50 per cent. "That shows we are right on track with our drive to internationalise the events," Böse continued. Dirk-Uwe Klaas, Managing Director of the Federal Association of the German Furniture Industry, was similarly pleased with the figures. "The Cologne furniture show was a wonderful summit for interior decor.

  • One in two trade visitors came from outside Germany
  • The top 30 global retail chains were in Cologne
  • Cologne expands its position as the global capital for interior design

imm cologne and LivingKitchen have achieved a record number of visitors this year. "We met our target and have broken the 150,000-visitor mark," said Gerald Böse, President and Chief Executive Officer of Koelnmesse GmbH, who is delighted with the results. Roughly every second trade visitor came from outside Germany, with foreign trade visitors accounting for nearly 50 per cent. "That shows we are right on track with our drive to internationalise the events," Böse continued. Dirk-Uwe Klaas, Managing Director of the Federal Association of the German Furniture Industry, was similarly pleased with the figures. "The Cologne furniture show was a wonderful summit for interior decor. The German furniture industry is completely satisfied with imm cologne. It was the ideal start to 2017, which will no doubt be an excellent year for the industry," said Klaas.

On behalf of retailers, the President of the German Federal Association of Furniture, Kitchens & Furnishing Retailers (BVDM), Hans Strothoff, gave the following verdict: "The trade fair met retailers' expectations. The quality of the exhibitors was high; a large number of new launches were on show, and visitors had a chance to experience attractive product presentations. This makes a visit to the trade fair well worth its while. And it's why retailers also see the trade fair as a fantastic way to launch the 2017 furniture year."

Of the 104,000 trade visitors, around 56,000 came from Germany and approximately 48,000 from abroad (an increase of 4 per cent). Within Europe, increases in visitor figures were recorded in particular from Spain (up 25 per cent), Russia (up 26 per cent), Italy (up 19 per cent) and the UK (up 13 per cent). Visitor numbers from the Netherlands and Poland also increased. Numbers of overseas trade visitors rose, in particular visitors from China (up 5 per cent), South Korea (up 12 per cent) and India (up 5 per cent). A rise was also recorded in visitor numbers from the Middle East  (up 19 per cent), with particularly strong growth from the United Arab Emirates. With these excellent numbers of foreign visitors, the two trade fairs will boost exhibitors' exports.

Koelnmesse Chief Operating Officer Katharina C. Hamma emphasised the quality of the trade visitors: "No other event brings supply and demand together as effectively in this quality as imm cologne and LivingKitchen." Initial evaluations of the results showed that the trade visitors included large numbers of the global top 30 retail chains, such as John Lewis, Home Retail Group, Harveys Furniture -all from the UK - as well as Conforama from France and Nitori from Japan. The major industry players in online retail - including Amazon and the Otto Group - also used the event intensively for their businesses. With these results, the trade fair duo has confirmed its importance for the interior design industry's global commercial operations on a national and an international level.

LivingKitchen closes with good results

In parallel with the world's most important furnishing fair, imm cologne, the international kitchen event LivingKitchen took place this year. For the seven days of the event, 200 exhibitors from 21 countries - including around 50 first-time and returning exhibitors - showed how much innovation the industry has to offer and how high its standards of design and quality are. This year's LivingKitchen not only followed on seamlessly from its success in 2015, but significantly improved on the key figures in many areas. "For us, LivingKitchen 2017 was a complete success. The world's best-performing kitchen industry needs a leading international trade fair in Germany. Our industry presented an outstanding showcase, and we are convinced that the trade fair will significantly boost demand for kitchens, nationally and internationally," said Kirk Mangels, Chief Executive of the Modern Kitchen Working Group e.V. (AMK). A great number of positive comments were received on the event's concept, which is aimed at both business and the general public. When asked about the event's added value, many exhibitors mentioned the fact that Cologne is the only trade fair where they can present their products in the context of a globally oriented interiors show. "LivingKitchen in Cologne is on an excellent course. We will analyse the results right after the trade fair to see how we can work together to continue to develop the event," said Mangels. But it was not just the exhibitors' innovative products that attracted a highly diverse audience interested in the latest kitchens and good food - the cooking events and large cooking shows also drew visitors to the trade fair on the public days.

The next imm cologne will take place from 15 to 21 January 2018 in Cologne, co-located with LivingInteriors.

Koelnmesse - Global competence in furniture, interiors and design
Further Information: http://www.global-competence.net/interiors/

 

Japan's Machinery Engineers defy Competition © mg-projects.at / pixelio.de
04.10.2016

INDUSTRY COMPACT: JAPAN'S MACHINERY ENGINEERS DEFY COMPETITION

Large Companies focus on abroad and the Digitization 

Tokyo (GTAI) - Japan's machinery and facility manufacturers expect increasing orders again. An increase is expected, especially for the international business. They saw the slight financial doldrums of 2015 before. However, there were exceptions - for example at the robot technology. The big companies have a strong interest in the subject of Industry 4.0. Here are cooperation opportunities for German companies, also on third markets.

The Asian region remains high on the Agenda

Large Companies focus on abroad and the Digitization 

Tokyo (GTAI) - Japan's machinery and facility manufacturers expect increasing orders again. An increase is expected, especially for the international business. They saw the slight financial doldrums of 2015 before. However, there were exceptions - for example at the robot technology. The big companies have a strong interest in the subject of Industry 4.0. Here are cooperation opportunities for German companies, also on third markets.

The Asian region remains high on the Agenda

Japan's economy is not yet in full swing. A new in August released stimulus package of the government is to ensure the recovery. In total Yen 28.1 billion (EUR 246.49 billion, in early September 2016: 1 Euro = Yen 114) amounts to the "package” which is funded to about 25% directly from the state treasury. The investment plans of the manufacturing industry are looking promising in the fiscal year 2016 (4.1 to 3.31.). They could rise by 14.5% over the previous year, according to the result of a survey of the Development Bank of Japan (DBJ) in July 2016.

This is confirmed by a survey of the business newspaper Nikkei with 1,140 participating companies. In the fiscal year 2016 they want to investment a volume of Yen 25.28 billion. This would be an increase over the investments made in the fiscal year of 2015 of 8.3%. If the expansion plans will actually be implemented, it would be the seventh consecutive increase year. Manufacturers of electronic machines have the most ambitious investment plans: Yen 3,64 billion, they have scheduled approximately 9.4% more than in the previous year.

Meanwhile lean foreign Business

According to the sector association JSIM (Japan Society of Industrial Machinery Manufacturers) in the fiscal year 2015 the incoming orders for industrial machinery remained below the expectations. Incoming orders came nearly to Yen 5.50 billion.  These were almost 10% less than the year before. Industry experts had already expected in advance that particularly the foreign business would suffer after the exceptionally successful year 2014. For the fiscal year 2016 the JSIM experts expect an increase of 4.6% to Yen 5.73 billion.

Not as positive as in the preceding years the situation looks in the machine tool segment. According to the industry association JMTBA (Japan Machine Tool Builders' Association) the orders declined in 2015 over the previous year by 11.4% and reached around Yen 1.40 billion. - This is justified by an overcapacity abroad. In fact it was the overseas business which fell by 22.1% to just under Yen 820 billion, while there was still an increase of 9.9% to Yen 579 billion yen domestically. With a view on the 1st quarter of 2016 the association has to state that the foreign business has not yet recovered. With more than one-quarter the orders declined compared to the same period last year.

The domestic market thus wins in importance for Japan's machinery builders. Generally, there is a need of modernization of the partly obsolete equipment at the local businesses. In addition, the reconstruction of the earthquake regions is required too. In addition, the hosting of the 2020 Olympic Games in Tokyo is considered quasi as a guarantor of business orders from the construction sector.

Orders by machine type, fiscal years 2014 to 2016 (in billion Yen), change in %)
  2014, total 1) 2015, total 2) 2016, total 3) 2016, domestic  2016, abroad Change 2016/15, total
Boilers, Turbines 1,809 1,796 1,896 1,390 506 5.6
Mining 23 29 31 28 3 6.9
Chemistry 4) 2,097 1,405 1,455 828 628 3.6
Tanks 30 47 56 26 30 18.7
Plastic processing 194 211 216 87 129 2.5
Pumps 336 358 373 270 103 4.3
Compressors 267 267 274 136 138 2.5
Ventilators 28 28 30 25 5 8.6
Boost material 355 400 433 282 150 8.3
Drive technology 50 53 54 45 8 2.5
Metalworking 162 182 186 79 107 2.5
Others 5) 725 703 725 535 189 3.1
Total  6,075 5,477 5,729 3,732 1,997 4.6

 
 1) actual results; 2) preliminary; 3) forecast; 4) also included in category: pulp- and paper machines, chillers, equipment for air- and water cleaning; 5) among others: equipment for waste treatment, industrial washing machines
Source: Japan Society of Industrial Machinery Manufacturers, February 2016

A high importance is given to the field of environmental and energy technology for the machinery industry in Japan. Although reactors, that meet stringent safety regulations, are expected to enter the net again in the next few years, renewable energy will be pushed up. In addition, there are intelligent power networks (smart grids) in the focus. Especially in areas with high priority, such as the energy and environmental technology, German suppliers with innovative technologies and customized solutions can win the points.

Connection links by Industry 4.00

Digitalization and with it topics related to Industry 4.0 keep the Japanese machinery and factory builders now very much interested. In June 2015, the "Industrial Value Chain Initiative (IVI)" was launched. About 40 Japanese companies belong to this interest group – like as the branches of the German Bosch and Beckhoff Automation GmbH. End April 2016 the German Federal Ministry of Economics (BMWi) signed with the Japanese Ministry of Economy (Meti) a Memorandum of Understanding (MoU) for joint cooperation in the region.
Equipment manufacturers from abroad should observe under cooperation aspects with big business interests the international activities of the Japanese mechanical and plant engineering. The Japanese abroad generated production shares are not far from the 40% mark the Japan Bank for International Cooperation (JBIC) determined the end of 2015. This creates opportunities for third-market operations, which are often controlled by the parent companies in Japan.

In foreign projects the PRC stands not as strong in the foreground as it used to be. The focus is increasingly directed on the ASEAN countries („Association of Southeast Asian Nations"), while currently the general economic activities in the emerging markets are critically observed. In the longer term India has been planned as a manufacturing location. Single, large companies dominate.

According to preliminary data from the industry association JMF (Japan Machinery Federation) Japanese engineering companies manufactured machines worth of about Yen 13.55 billion in the fiscal year 2015. This was 2% less than last year. Important were cooling machines, (Yen 1.98 billion, 4.8%) as well as equipments for manufacturing of semiconductors and flat panel monitors -Yen 1.61billion, 2,8%. The manufacturer of metalworking machines had a production decline over the previous year by 5.9% to Yen 1.18 billion. Growth rates of just over 10% are registered in the robotics segment since several years.

In general the concentration in the individual equipment segments is high. According to the Yano Economic Research Institute in the fiscal year 2015, slightly more than two thirds of the NC milling machine production came from three companies: Makino Milling, Okuma and OKK. In general metalworking machines Amada, Kobe Steel and Kawasaki Hydromechanics (subsidiary of Kawasaki Steel) came on a market share of about three-quarters. Other important tool machine vendors are Yamazaki Mazak and Mori Seiki. Also in construction, textile, packaging and food processing equipment the three leading manufacturers account for at least 60% of domestic production for themselves.

Production by selected machines, Fiscal years 2014-2016
(in billion Yen, change in %)
  2014 1) 2015 2) 2016 3) Change 2016/15
Boilers, Turbines 1,433 1,193 1,127 1,9
Pumps, Ventilators 440 486 498 2.5
Compressors 677 666 669 0.4
Boost Equipment 533 533 595 7.5
Robotics 594 681 750 10.2
Drive – technology 419 413 418 1.2
Agricultural machinery 456 444 422 -5.0
Metalworking 1,257 1,183 1,120 -5.4
Food processing machines 448 518 520 0.5
Chillers  1,894 1,984 1,958 -1.3
Machines for the production of semiconductors and flat Monitors 1,564 1,608 1,772 10.2
Total machinery 13,838 13,554 13,784 1.7

1) actual results; 2) preliminary; 3) forecast
Source: Japan Machinery Federation (JMF), July 2016

Japan imports partly from our own production abroad

The Japanese imports of machinery and equipment continue to increase. It should be noted, that some of the imports are based on the foreign production of local companies. The largest share of supplies from abroad accounts for the category pumps and compressors. According to the United Nations Comtrade database this category reached on the basis of USD around USD 3.57 billion in 2015. This was 6.5% less than in the last year.

Just over 30% of the supplies came from the PRC; probably to a not inconsiderable proportion from Japanese production. The latter is also the case with electrical machines. According to Comtrade these reached in 2015 an import value of slightly more than USD 55 billion (-8%). More than a third of this was accounted for the PRC; about one-fifth to Asian emerging markets. In the import statistics Germany is especially noted in machine tools and food and packaging machines.

Despite displacements to abroad Japanese exports continue to play a role. In 2016 they are likely to suffer from the resurgent Yen. Moreover, the economic slowdown in the Asian emerging markets is becoming more noticeable.

Import of machinery to Japan (in million Yen)
HS Description of goods 2014 2015 From Germany(2015)
8429 bis 30, 8474, 8479.10 Construction- and Constructionmaterial machines, Mining machinery 41,275.5 48,946.3 4,699.8
8444 bis 49, 8451 bis 53 Textile- and Leathermachines 65,712.2 64,431.0 4,934.5
8439 bis 42, 8443.11 bis 19 Printing and Papermachines 43,089.1 43,239.5 15,835.5
8422.30 bis 40, 8437, 8438, 8479.20 Food- and Packaging machines 38,155.9 49,887.9 11,197.5
8465, 8479.30 Woodworking machinery 8,466.0 8,099.7 2,215.3
8477 Plastic- and Rubber machines 67,477.2 64,335.5 6,783.4
8413, 8414 Pumps and Compressors 403,986.5 432,352.1 26,565.7
8425 bis 28 Boost Technology 61,233.1 65,326.0 13,124.7
8456 bis 63 Machine tools for metalworking  93,513.9 111,394.1 26,701.5

Source: Japanese custom statistics

 
Commercial practice

Relevant provisions for machine and plant engineering in Japan will be supplied by the following institutions: Japan Customs, the Ministry of Economy, Trade and Industry (METI), the Center for Information on Security Trade Control Japanese Standards Association (http://www.jsa.or.jp), the Japanese Industrial Standards Committee , the Japan Accreditation Board for Conformity Assessment  and the Japan External Trade Organization (JETRO ). JETRO published in February 2010 the still actual report "Handbook for Industrial Products Import Regulations 2009", which contains the specific import requirements for some types of machines, especially for machine tools, food processing and packaging machines.

Detailed information on commercial and tax laws are available at http://www.gtai.de/recht and for import arrangements, tariffs and NTB under http://www.gtai.de/zoll

Internetadresses
Name Internet addresses Comments
Germany Trade & Invest http://www.gtai.de/japan Foreign Trade Information for German Export
AHK Japan http://japan.ahk.de Information place for German companies
Minstry of Economy, Trade and Industry http://www.meti.go.jp Responsible for strategy and planning for industrial
machinery engineering and related sectors
Japan Machinery Federation http://www.jmf.or.jp Association of Machinery Engineering
Japan Society of Industrial Machinery Manufacturers http://www.jsim.or.jp Association of Industrial Machinery Manufacturers
Japan Machine Tool Builders' Association http://www.jmtba.or.jp Association of Machine Tool BuildersHerstellerverband für Werkzeugmaschinen
JIMTOF/Japan International Machine Tool Fair Tokyo Big Sight      http://www.jimtof.org Largest and most important machine tool exhibition
(every two years, next date November
17th – 22nd 2016)


The series “Sector compact” provides analysis on important key sectors of German export economy.
Other country reports for machinery and plant engineering and other industries can be found at http://www.gtai.de/branche-kompakt .
Contact for engineering: Roland Lorenz; E-Mail: roland.lorenz@gtai.de

 

TEXCARE INTERNATIONAL 2016 © Foto: Jens Liebchen / Messe Frankfurt GmbH
21.06.2016

TEXCARE INTERNATIONAL CLOSES WITH A NEW INTERNATIONALITY RECORD

  • Trade visitors very pleased with the bigger and more extensive range of products at the world’s leading trade fair for the sector
  • Exhibitors and visitors rate the economic situation in the sector as very good
Texcare International has closed its doors after welcoming ten percent more international visitors. Overall, the number of trade visitors remained stable – of the 15,700 visitors (2012: 15,650 from 101 countries*), almost 9,000 (2012: 8,045) came from outside Germany to the world’s leading trade fair for the sector in Frankfurt am Main from 11 to 15 June 2016, which means that international visitors account for 57 percent of the total. The visitors travelled to Texcare International from 112 countries, to discover the latest products and innovations at the exhibition stands.
  • Trade visitors very pleased with the bigger and more extensive range of products at the world’s leading trade fair for the sector
  • Exhibitors and visitors rate the economic situation in the sector as very good
Texcare International has closed its doors after welcoming ten percent more international visitors. Overall, the number of trade visitors remained stable – of the 15,700 visitors (2012: 15,650 from 101 countries*), almost 9,000 (2012: 8,045) came from outside Germany to the world’s leading trade fair for the sector in Frankfurt am Main from 11 to 15 June 2016, which means that international visitors account for 57 percent of the total. The visitors travelled to Texcare International from 112 countries, to discover the latest products and innovations at the exhibition stands. After Germany, the top visitor nations included Italy, France, the Netherlands, Belgium, Spain, the United Kingdom, Switzerland, Denmark, Austria and Poland. Outside Europe, the USA, Japan, Australia, the United Arab Emirates, China and India ranked among the biggest visitor nations at the textile-care fair. Overall, the proportion of international visitors from outside Europe rose from 15 to 22 percent with the largest non-European growth coming from Argentina and Kazakhstan. In Germany, the market continues to be characterised by an on-going process of consolidation and concentration.
 
For five days, 319 exhibitors from 28 countries (2012: 262 exhibitors from 26 countries) – over 20 percent more than four years ago – presented their high-tech solutions and innovations for laundries, dry cleaners and textile service providers. The proportion of international exhibitors also reached a new record at 68 percent. On 30 percent more exhibition space and in two halls for the first time, the manufacturers presented a more extensive range of products and services, especially in the textiles and IT product groups. The focal point of the exhibitors’ presentations was on networking all processes in accordance with Industry 4.0. Impulses for the sustainable conversion to ‘smart laundries’ were generated by innovations for contactless laundry registration, for visualising all processes in real-time, for intelligent storage systems and for the use of robot technology.
 
Wolfgang Marzin, President and Chief Executive Officer (CEO) of Messe Frankfurt, says, “The atmosphere at Texcare International 2016 was outstanding and international growth reinforced the position of the event as the world’s leading trade fair for the sector. Top decision-makers from all over the world travelled to Frankfurt am Main to do business at the fair and gain new customers.” The level of visitor decision-making authority also rose again: over 60 percent of visitors said they were authorised to make purchases on behalf of their companies.
 
84 percent of exhibitors confirmed that they had achieved their goals for the fair, especially in terms of sales agreements signed, order books filled and numerous new international contacts made. Elgar Straub, Director General of VDMA Garment and Leather Technology, says, “Texcare International exceeded the expectations of its exhibitors by a wide margin. The high level of visitor internationality shows the great worldwide interest and demand for new, future-oriented technologies, as reflected by subjects such as Industry 4.0 and the on-going process of digitalisation on which the fair focused.”
 
89 percent of exhibitors said that the economic situation in the sector is very good, an increase of three percent over the last Texcare International four years ago. 89 percent of visitors also agreed with this assessment.

98 percent of visitors said they were very pleased with the range of products and services at Texcare International. Andreas Schumacher, Managing Director of the German Dry Cleaning Association (– DTV Deutscher Textilreinigungsverband), says, “We are delighted with the course of business at 
the fair. The echo from exhibitors and visitors has been excellent. Very popular was the opportunity to exchange information and opinions about subjects of topical importance to the sector at Texcare Forum in addition to visiting the exhibition stands. The DTV stand itself was also a welcome meeting place for holding discussions with our members and sponsors. We were particularly pleased with the highly positive response of visitors to our programme of events, which included a fashion show and ironing competition.”
 
At the fair, trade visitors from all over the world were able to discern the latest trends in the sector and gain an excellent impression of the high-grade products offered by the manufacturers. The events held within the framework of Texcare International also proved to be very popular, especially the lectures at the Texcare Forum, which were attended by over 1,000 participants. The division into themed days – education and careers, innovative textiles, sustainability and Industry 4.0 – was also very well received.

A highlight at Texcare International was the fashion show where manufacturers presented their collections and showed the latest trends in terms of colour, design and function for industrial, healthcare and catering workwear. The first ironing competition to be held at Texcare gave participants the chance to match themselves against others and to demonstrate their skills.
 
The next Texcare International will be held in Frankfurt am Main from 20 to 24 June 2020; the next Texcare Asia in the autumn of 2017.
 
You will find further information about Texcare International at www.texcare.com.
Follow Texcare on our social-media channels at:
www.texcare.com/twitter
www.texcare.com/facebook
 
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