Selected articles on industrial development in emerging economies

China: New world for China textile exports as quota systems end

As the US-China and EU-China agreements on textiles and clothing expired with the old year, the Ministry of Commerce terminated supervision over quotas on 21 categories of textile exports to the United States and licenses on eight categories to the European Union. Textile companies might see the first day of 2009 as the beginning of an unfettered era of free trade, but the outlook is clouded by weakening demand and rising protectionism amid the financial crisis.

Chinaview.cn

India's textile industry unravels

Textile factories are among the country's first manufacturing businesses to suffer as American and European clothing retailers slash orders amid slumping consumer spending. Textile concerns employed 35 million workers last year. But the companies have already shed 700,000 jobs this year and at least 1.2 million textile employees are expected to be out of work by March.

WSJ.com

Pakistan: National Textile Policy to be announced soon

The Adviser to Prime Minister on Textile Industry, Dr Mirza Ikhtiar Baig said that ‘National Textile Policy’ is being finalised with the consultation of stakeholders and would be announced soon. The adviser said that anti-dumping duty on bed lenin that had been imposed by the European Union would go by March next and this would open EU doors to Pakistani textiles. The adviser said that special measures were afoot to extend necessary support to the textile sector as the industry is in crisis and a large number of people were suffering.

Daily Times

India: Grim 2009 for the Indian textile sector

Fitch Ratings, an international rating agency, has predicted a negative outlook for the Indian textile sector for 2009, due to a host of factors like forex losses, high input costs and recessionary conditions in international markets. The sector, pegged at Rs 25,000 crore in exports alone and having an annual growth rate of 20%, saw immense pressure on the short-term liquidity of the industry, led by increased working capital requirements and lengthening cash cycles. The agency expects the current scenario of slower demand to last at least until December 2009. With the recession in developed markets, Fitch expects the demand for textiles to remain muted, which will be reflected in the financial performance of textile and cotton exporters in the ensuing financial quarters.

The Financial Express

India: Vibrant Gujarat to reiterate stand as textile investor's paradise

The Government of Gujarat is organizing the 4th Global Investors' Summit on 12-13 January 2009. Bringing together business leaders, investors, corporations, thought leaders, policy and opinion makers, the summit serves as a perfect platform to explore business opportunities in the state of Gujarat. The summit is expected to cross the MoUs for investments in 2009 by a very wide margin, than those signed in 2007. The one sector which is expected to harvest a significant amount of investment is the textile sector.

Fibre2fashion.com

Romania: Textile industry strongly hit by slumping demand

Romania’s textiles industry is strongly affected by slumping global demand. In less than one year, the textiles industry lost 53,000 jobs, and the staff size of textiles factories has shrunk to some hundreds or just tens of employees, compared with thousands of people customarily working with the production facilities of such factories four-five years ago.

Financiarul.ro

Taiwan: Experts assess prospects, developments in eco-textiles

Experts from Taiwan and the international textile industries has joined in a series of seminars of the 2008 Textile International Forum and Exhibition on 'New Perspective in Eco-Textile'. During the forums, 18 experts from Taiwan, Japan, Switzerland, the United States, Germany and the UK shared their insight on the commercial development of eco-textiles and their specifications.

The China Post

Bulgaria textiles firms face bankruptcy

Half of Bulgaria's 4,600 textile firms could go bankrupt next year due to weak demand as a result of the global financial crisis. The Balkan country's textile industry, which exports 80 percent of its output to European Union countries, has already felt a sharp drop in orders and was working at 50 percent of its capacity, said Georgi Topchiev, according to the the textile producers union. The sector, which makes up eight percent of the country's exports, has called on the government to cut taxes and step up the fight against the smuggling of Turkish and Chinese textiles.

BalkanInsight.com

Indian textiles: Weaker Rupee is no help

India's falling currency should have boosted the textile industry, but slower global consumption and higher input costs are weighing it down. India can ill afford a weak textile industry. The labor-intensive sector employs 88 million people, compared with just 2 million for the IT companies, and the 15,000 textile companies are vital to India's exports. According to the Confederation of Indian Textile Industry (CITI), these companies account for USD 20.5 billion of the country's exports, 17% of India's total.

BusinessWeek

India: Textile industry will touch USD 115 bn by 2012

The textile industry will touch a volume of USD 115 bn by 2012 growing at the rate of 16 per cent annually. Cotton is the mainstay of India's textile industry, making up more than 75 percent of the country's textiles and clothing exports.

The Economic Times

India: Sasmira to set up centre of excellence for technical textiles

The Union ministry of textiles plans to set up a centre of excellence in various sectors of technical textiles, entrusting each centre a specific product group to provide infrastructure support at one place for the convenient manufacture of technical textiles. Centres of excellence are being established with a vision, backed by a world-class service and driven by research to serve the industry.

The Financial Express

India: Slump in Chinese textile market brightens prospects for India

After a tough phase, there seems to be signs of hope for the rupee-scarred Indian textile industry. This time, it is the slump in Chinese textiles that has brought some reason to cheer. Appreciation of the Chinese yuan, shrinking raw material (cotton) base and rising labour wages (30 per cent higher than that of India) are posing a serious threat to the Chinese textile industry. These, in turn, have come as a blessing in disguise for the Indian textile industry that is now hopeful of emerging as a major exporter once again, overcoming one of its worst phases.

The Hindu Business Line

Czech Republic: Textile makers outsource works

The strengthening currency and an influx of Asian imports are forcing local textile manufacturers to look beyond the industry’s traditional borders. Textiles have played an important role in Czech industry since the mid-1880s, when Bohemian textile manufacturers exported wool from Brno and cotton linen from Prague throughout the Hapsburg Empire. But today, a confluence of economic factors — most notably a strong crown and competition from Chinese imports — is driving Czech textile manufacturers to seek lower energy and labor costs abroad as an increasing number of exporters close down their local production facilities in favor of foreign production.

The Prague Post

Chinese textiles losing cost edge

China's textile industry, after surging to domination of world markets, is losing its competitive advantage and some low-end operations are moving to emerging producers, according to a leading Chinese textile mill official. "Currently China is rapidly losing competitive advantage in costs to other Asian countries such as Bangladesh, Vietnam and India." Many mills have been forced to switch from exports to domestic sales, which now account for 79 percent of production.

Thomson Reuters

India: Nonwoven, technical textiles industry set to scale new heights

India's non-woven and technical textile industry would grow exponentially from 2035 with the rising income levels. With the GDP of India predicted to be in between 8-9 per cent this year, the over 300 million middle class population is set to spearhead the growth of the nonwoven and technical textile industry.

The Economic Times

Pakistan: Government blamed for fall in textile exports

Textile entrepreneurs have blamed the government for losing the opportunity to enhance exports last year. Pakistan was the only country in the region that instead of increasing its exports saw a decline of 20 per cent in quantity terms. India, Bangladesh, China and even Vietnam cashed in on Pakistan’s inability to exploit its true export potential.

The News

India, Pakistan: Now, Indo-Pak cartel in textiles

Even as Pakistan and India ready up themselves for talks on peace and security on July 18, the countries' business communities have already chalked out plans of working in tandem. Pakistan's textile industry is holding talks with its Indian counterpart to form a cartel of their own. The countries plan to come up with fixed, common prices for their home textiles exports.

Business Standard

Rising costs and competition threaten Moroccan textiles sector

The Moroccan Association of Textile and Clothing Industries is sounding the alarm: Although the sector saw strong growth in the quarter of the year, there is a risk of a major drop in production in the near future due to sharp international competition and rising prices for raw materials, particularly energy inputs.

Magharebia.com

Pakistan textile sector staggers under double blow

Pakistan's textile industry, its biggest source of exports and manufacturing employer, could collapse under the double blow of surging fuel prices and chronic power cuts, according to industry officials Pakistan faces stiff competition from China, India and Bangladesh because of lower unit prices and quality, and buyers were also worried about the reliability of Pakistani supplies because of instability and militant violence.

The Economic Times

Brazilian denim maker picks Edinburg (Texas) for new factory

Sao Paulo-based Santana Textiles' move to open a new factory in Edinburg (Texas) should create at least 800 jobs. The new plant will make Santana Textiles the largest manufacturer in Edinburg and one of the biggest in the Rio Grande Valley. The average wage at the company will be around USD 26,500 a year.

The Brownsville Herald

India: Neo Corp acquires UK firm

In the first ever acquisition by an Indian technical textile manufacturer abroad, the Nagpur-based Neo Corp International has acquired UK's Euro Plast. Euro Plast, a technical textile marketing company which has extensive business in UK, France and Germany, has an annual turnover of about USD 10-15 million.

Business Standard

India: Vietnam, Pakistan outdo India in US, EU textile markets

Smaller countries like Vietnam, Bangladesh and Pakistan are outdoing India in textile and clothing exports to the US and EU in the post-quota (2005-2007) period, according to a FICCI study.

The Economic Times

India: Textile sector bounces back on track paved by China

Textile industry of China has been severely hit by its internal pressures such as rising cost of production and appreciation of yuan. This has turned out to be a blessing for India whose exports have started looking up with depreciation of rupees and more orders from US.

Fibre2fashion.com

India's technical textiles to grow 13.3% annually

India’s non-woven and technical textiles industry is set for a major boom. Texas Tech University researchers predict a yearly double digit growth of 13.3 percent.

CommodityOnline

India accuses Viet Nam firms of dumping textiles

India has commenced an anti-dumping investigation against certain types of textiles imported from China, Thailand, and Viet Nam. The application alleges dumping of fully-drawn or fully-oriented yarn, spin-draw yarn and polyester flat-yarn.

Viet Nam News

India: Textiles exports to US pick up as China slips

After a year that saw a turmoil in their export business due to the rupee’s rise, India’s textiles and garment companies seem poised to post a dramatic turnaround in the US market, mainly aided by a clutch of developments that undermined China’s comparative advantage in this market.

The Economic Times

Indian technical textile sector may grow four-fold by 2020

According to the industry body FICCI, the Indian technical textiles market has been registering a growth of 11.25 per cent, which now stands at $8.3 billion. The growth of the sector is, however, marred by factors like lack of investment, absence of high quality R&D and database, it said.

The Economic Times

Chinese textile exporters drop dollar pricing to offset yuan appreciation

Chinese textile exporters are turning to non-U.S. dollar currencies in pricing and settlement to offset rising losses from the yuan's appreciation against the greenback.

Chinaview.cn

India: Textiles sector to play strategic role in the economy

Addressing the golden jubilee of the  Confederation of Indian Textile Industry in New Delhi, Prime Minister Manmohan Singh said, given its widespread dispersal across the country, the textiles industry could be a vehicle for nationwide industrial modernisation and generate large-scale employment, especially close to rural areas.

domain-b.com

Taiwan: TTRI to focus on industrial textiles

The Taiwan Textile Research Institute (TTRI) will focus on the research and development of industrial textiles, amidst fierce competition in the fashion and home-use textile sectors.

The China Post

China: Margins squeeze bites into China textiles

One in six Chinese textile companies lost money last year even though prices for the country’s clothing exports increased 8 per cent, according to the chairman of the China National Textile and Apparel Council. Data compiled by the council show profit margins are being crunched by rising labour costs and a weaker dollar.

FT.com

South Africa: Embattled textile sector seeks state survival aid

SA’s embattled textile industry is being squeezed to the brink of extinction by increasing input costs, some of which have risen as much as 68% due to higher oil prices and a weaker rand.

Business Day

India: Rupee rise hits growth in textile exports to US

The strengthening of the rupee against the US dollar by over 12 per cent has resulted in lower textile and apparel exports to the US in 2007. Indian producers will be under severe pricing pressure since the safeguards imposed by the US on imports of specific textile and apparel products from China are set to expire this year.

Business Standard

South Korea: Textile industry to go hi-tech

South Korea seeks to revive the textile industry, once one of its main export industries, with new growth engines based on high-tech products such as medical fabrics.

The Korea Times

China: Textile exporters prepare for quota-free trade

According to an agreement between China and the EU, exports of China's textile products to the EU countries will not be subject to any quantity limits starting this year. And textile export quotas to the US will be abolished in 2009.

CCTV.com

The Indian advantage

The Indian textiles industry, which already has an overwhelming presence in the economic life of the country, has been given a further thrust with the scrapping of quotas in world trade of textiles and clothing. In the post quota period, the industry size has expanded from US$ 37 billion in 2004-05 to US$ 49 billion in 2006-07.

CommodityOnline