Sri Lanka’s Textile Exports Grow in Q4 of 2012

The exports of textiles and garments from Sri Lanka fetched US$ 364 million in November 2012, showing a year-on-year growth of 4.6 percent, said fibre2fashion.com in today's news.

According to the above source, in spite of the increase in earnings from textiles and clothing exports, Sri Lanka’s export earnings declined by 6.6 percent year-on-year to US$ 827.6 million in November 2012.

During the month, Sri Lanka imported goods worth US$ 1.8 billion, thus narrowing the trade gap to US$ 993 million.

From January to November 2012, Sri Lanka’s total exports fetched US$ 8.9 billion, registering a decline of 6.6 percent year-on-year, while imports were worth US$ 17.5 billion, down 4.5 percent year-on-year.

Source: fibre2fashion.com

Is Kyrgyzstan a New Rising Star in the Textile Garment Industry?

According to an article published on EuroAsia.net, manufacturing of textiles and garments in Kyrgyzstan grew by 49.5 percent in 2011 over the previous year. In 2010, the industry grew by 19.1 percent. The industry is worth, officially, nearly $160 million, or 2.7 percent of GDP.


But the real value is likely double that. A September 2011 study commissioned by the US Agency for International Development estimated official statistics undervalue the industry by 50 percent.

What is the key factors for the success of this Central Asia country when it comes to garment and textile? These are its geographic position, cheap labor, and international trade agreements. Small business owners import inexpensive textiles from China and export finished garments to markets across the former Soviet Union. A vast majority of the exports, some studies say as high as 95 percent, go to Russia.

Prior to the Soviet collapse in 1991, the local textile industry relied primarily on cotton grown in Central Asia, especially Uzbekistan. But today operations depend mostly on synthetic Chinese fabrics. Uzbek materials are more expensive because they are made out of natural cotton. From China, it’s not the best quality, but that’s why it’s cheaper, says a small business owner.

The country's red tape is its down side. A recent study published by Harvard Business School describes Kyrgyzstan’s complicated tax regime as a “barrier to formalization” for the garment industry. The May report found that though existing tax tiers favor small companies, as soon as companies grow above 30 employees, they “immediately face higher payments and a more cumbersome payment procedure.” That discourages growth.

The Harvard study estimates 60 to 80 percent of firms operate at least partially off the books. “The number of public inspections by fire departments, sanitations, labor, and many other agencies create a headache at best, and encourage corrupt activities at worst,” it says.

Kyrgyzstan’s shadow economy extends far beyond the garment industry. In July, Economics Minister Temir Sariev said between 50 and 70 percent of the total economy operates off the government’s radar, local news agencies reported.

This affects quality, says the International Labor Organization (ILO). Because the tax system and corruption discourage expansion, manufacturers are afraid to hire workers full-time. Without consistent work, employees often pick up a few skills and head to Russia as labor migrants. Skilled workers do not stay, the ILO wrote in a report published this year.

At least one other factor scares investors and hurts development: the Russia-led Customs Union. Kyrgyzstan is seeking to join the new trade group, which also includes Belarus and Kazakhstan, as much out of political considerations as economic factors. Should it join, manufacturers could face new barriers to importing raw materials from China. Should it not join, the Customs Union could squeeze out Kyrgyz exports.

Further confusing the situation, Russia joined the World Trade Organization (WTO) in August. Some economists say this development will hurt the competitive edge that Kyrgyzstan, also a member, had previously enjoyed.

Certainly Kyrgyzstan’s garment industry has promise, but it must first navigate some bumps in the road. The market trends and dynamics prompt that the demand for Kyrgyz-made garments is constantly growing. Source.

Italian Textile Machinery Exhibited at Techtextil North America

According to the press release of ACIMIT, the Association of Italian Textile Machinery Manufacturers, the association has organized a Meeting Point where some Italian machinery manufacturers involved in the production of machines for technical textiles will show their innovative solutions.

The companies that will be taking part in the event are: Cormatex, Dell’Orco & Villani, Loptex, Ratti Luino, Saspe.

For the Italian textile machinery industry, Techtextil North America will be a great occasion to exhibit the most up-to-date technical textiles technology to potential customers.

The US market for specialty fabrics and technical textiles saw a recovery in 2011. The projections for 2012 look very promising.

Also Italian exports to the US market testify the will of American textile customers to invest in updated equipment. In 2011 Italian sales of textile machinery reached a value of about 68 million euro (i.e. 94.7 million US dollar) with an increase of 84% compared to 2010.

In 2011 the most relevant share of the Italian machines exported to the US market was for accessories (33%), followed by spinning machines (20%) and finishing machines (20%).

Source: ACIMIT

Rieter, a Swiss Textile Machinery Manufacturer, to Double its Workforce in China

Rieter Holding AG, a Swiss textile machinery manufacturer, will double its workforce in China to reach 1,800 employees until 2013 within its expansion plan in Asia, to expand in Asia.

Other than increasing its workforce in China, the company also intends to grow the number of its employees in India to reach the number of 2,000 by 2013.

These plans were voiced in an interview with Mr. Stoller, the manufacturer’s chairman, at a conference in Winterthur, Switzerland, earlier in March, 2012.

As per Bloomberg, the company got about a third of its 2011 sales from China and India. Rieter said earnings before interest and tax rose to $123 million last year. The stock fell as much as 11 percent.

Rieter must manufacture textile machinery in India and China. Otherwise, the company will face undercuts by competitors in those countries since local manufacturing helps save on import taxes.

Rieter also mentioned that the expansion plans will not impact the personnel in Switzerland.

The company had 4,695 employees at the end of December, 2011.

Source: Bloomberg

Yarn And Fabric Production Trends in 2012

Based on the recently released Rupp Report, the international textile community is on the rise in terms of market trends. Reports with opinion and market leaders show some solid positive trends for the year to come — and for the past six months. The Rupp Report recently received the latest news from the Switzerland-based International Textile Manufacturers Federation regarding yarn and fabric production for the third and fourth quarters of 2011. These figures show an optimistic trend.

Increased Yarn Production

The report states: “In comparison with the previous quarter, world yarn production increased in the 3rd quarter of 2011 by +2.5 percent. South America and Asia recorded increases of +9.2 percent and +2.7 percent, respectively.” On the other hand, “North America and Europe recorded decreases of -4.9 percent and -4.8 percent, respectively. Year-on-year global yarn production rose slightly by +1.1 percent due to higher output in Asia by +1.6 percent, and despite lower output levels in North America (-8.5 percent), South America (-7.5 percent) and Europe (-2.6 percent).”

Increased Fabric Production

The same comment is given for global fabric production: “Compared with the previous quarter global fabric production increased in the 3rd quarter of 2011 by +5.9 percent. Fabric production rose by +7.5 percent in Asia and by +3.1 percent in South America, but fell in Europe by -8.7 percent. In comparison to last year’s 3rd quarter global fabric production was down by -2.3 percent. Looking at the various regions only South America recorded an increase (+4.6 percent), while in Europe, Asia and North America fabric production was reduced by -4.9 percent, -2.6 percent and -2.4 percent, respectively.”

Decreased Yarn Stocks

In contrast, ITMF reports: “Global yarn stocks dropped in the 3rd quarter of 2011 compared with the previous one which was especially due to lower stocks in South America and Asia, while stocks in Europe and North America remained practically unchanged.” This fact was certainly an effect of the volatile cotton prices. The Rupp Report has informed its readers in the past months about the ups and downs of the cotton prices.

Higher Yarn …

However, “Year-on-year global yarn inventories increased as a result of higher stocks in Asia and in spite [of] a drop in South America. … Yarn inventories dropped worldwide by -11.4 percent in the 3rd quarter of 2011 compared to the previous one. In South America and Asia they fell by -20.6 percent and -14.8 percent, respectively, but remained almost unchanged in Europe and North America. On an annual basis global yarn stocks were up by +2.0 percent. In South America yarn inventories fell by -9.5 percent, but rose in Asia and Europe by +4.8 percent and +0.3 percent, respectively.”

… And Fabric Inventories

“Global fabric inventories rose in the 3rd quarter of 2011 by +4.4 percent as compared to the previous one. In South America they jumped by +14.9 percent and also increased in North America by +4.0 percent, in Asia by +0.6 percent and in Europe by +0.5 percent. In comparison to last year’s 3rd quarter, the global fabric inventories increased by +15.7 percent. In South America they soared by +64.0 percent and also rose by +12.3 percent in North America, by +4.1 percent in Asia and by +0.7 percent in Europe.”

Lower Order Income

The report adds: “Yarn and fabric orders fell in Europe both compared to the previous and last year’s quarter. … [The] orders in Europe were slightly down by -0.4 percent and -1.5 percent, respectively, in the 3rd quarter of 2011 compared to the previous one. Year-on-year yarn and fabric orders in Europe decreased slightly by -0.1 percent and -1.5 percent, respectively. In Brazil yarn and fabric orders jumped compared to the previous quarter by +23.5 percent and +15.7 percent, respectively. On an annual basis yarn and fabric orders were down in Brazil by -19.9 percent and -10.0 percent, respectively.”

With all that it’s possible to say that the market is facing a prosperous year in 2012.

Source: TextileWorld

Santoni and Lonati Are Heading to Moscow for the 2012 Edition of Techtextil

As presented on KnittingIndustry.com, the Italian circular knitting machine manufacturer - Santoni - and its sister company Lonati, the world's leading hosiery machinery manufacturer, are heading to Moscow this month. The two Brescia located companies will be exhibiting at technical textiles exhibition Techtextil Russia and textile machinery show Inlegmash, which are taking place at Moscow's Expocenter between March 12-14.

Santoni's Marketing Manager Patrick Silva, who is preparing for the Moscow trade show, mentioned that the company will be presenting its Seamless Technology, which “is an innovative concept in clothing - free of irritating side seams. This technology can directly produce almost finished products, and so reduces the production costs.” He also added that Santoni seamless garments are primarily made from a combination of microfiber yarns, elastane and cotton. Microfiber yarns are made up of fine filaments of nylon that produce the softest fabrics. Natural fibers give a smooth look and a soft touch, have reduced pilling and are used in bodysuits, lace, or in jacquard knits.

"This new seamless apparel has transformed the knitting industry and the overall worldwide production process. The technology is not only replacing traditional knitting but is also replacing anything stitched or with seams," Silva explained.

According to Patrick Silva, Seamless products are being used for a variety of applications as they offer numerous benefits to the user. The technology is forecast to continue growing and apart from current uses Silva says Santoni's smart seamless knitting technology is playing a prominent role in integrating electronics into materials as a result of its flexibility.

Source: www.knittingindustry.com

Textile Machinery Production in Japan Surpasses 200 Billion Yen in 2011

In a recent report the Japan Textile Machinery Association reported that the country’s production of textile machinery in 2011 increased by 8.6% over the previous year, reaching 226,667 million yen.

Exports grew by 9.4% to 243,506 million yen due to vigorous overseas demand. Winders and other weaving preparation machinery led the way, and fiber-making equipment, looms and knitting and braiding machines were also in a favorable condition.

Back in 2009, the Japanese textile machinery production dropped to the 100-billion-yen level, but recovered significantly to the 200-billion-yen level in 2010, and maintained their vigor in 2011. Capital investments in newly emerging economies centering on China were the factor for the rapid recovery.

2011 production by type of machinery is as follows (million yen): fiber-making, 36,949 (up 1.6% compared to 2010); spinning, 14,762 (up 5.1%); weaving preparation, 59,513 (up 42.6%); looms, 48,750 (up 3.2%); knitting and braiding, 58,199 (down 3.4%); dyeing and finishing, 4,015 (down 17.1%); others, 4,479 (up 6.6%).

Source: yarnsandfibers.com

Techtextil Russia is a Hub of Russian and International Textile Companies

Techtextil Russia, a trade show for technical textiles, nonwovens and protective clothing, organized in Moscow is a unique event for the regional textile industry. It takes place every two years in Moscow in the downtown-based Expocenter. In 2010 the expo had 130 exhibitors from 18 countries. In 2012 the organizers hurried to announce that the expo was all sold out with over 190 companies taking part in the event.

Based on the statistical report from 2010 the expo was visited by close to 3,000 textile industry specialists and professionals.

In 2012 the event, which will open its doors on March 12 - literally a week from now, promises to be an outstanding expo with various activities planned during its 3 expo days.

Located in Russia, an emerging market with a huge potential for growth, Techtextil Russia (organized by the renown Messe Frankfurt) is a great opportunity:

- to establish business contacts with potential clients and partners,
- to analyze the competitors’ activities,
- to estimate the market conditions,
- to confirm the status of strong and stable company,
- to carry out effective advertising campaign for your target audience.

During the expo there will also be a unique exposition High-Tex from Germany, sponsored by the Federal Ministry of Economics and Technology in cooperation with the Association of the German Trade Fair Industry and supported by the Confederation of the German Textile and Fashion Industry. Meetings and seminars from outstanding industry persons will take place within this exposition.

If you are interested to attend the expo in Moscow, Russia, here are some details:

The 2010 results of Techtextil Russia

The 2012 exhibitors of Techtextil Russia
Textile machinery manufacturers will be heavily present at this event.

An Expo on Textile Machinery, Spares, Accessories from March 2

On March 2, 2012 the new edition of Texfair Expo will kick off at the CODISSIA Trade Fair Complex, in Coimbatore, India. The four-day international event will focus on Textile Machinery, Accessories, Spares and Logistics.

“The seventh edition of TEXFAIR-2012 will be an ideal platform for textile mills to zero in their requirements, meet all suppliers under one roof, prudently plan investments, cut costs and improve quality of their products," Rajkumar, Chairman, Organizing committee, told reporters earlier this week.  

With almost four million spindles being added every year in India, the fair would also give an opportunity for textile mills to plan their ongoing and future investment as leading manufacturers and suppliers will exhibit at the expo. 150 exhibitors from India, besides China, Germany and Japan, would display their product. Stating that textile mills on an average spend 2.5 to three per cent of their annual turnover on spares and accessories, Rajkumar said they also plough back four to six per cent of their annual turnover on modernisation.

A textile product show for yarn manufacturers and end users has also been organized, in which 20 leading textile mills would showcase their yarn, fabric, made-ups and garments aimed at bringing the yarn manufacturers and end users - handloom and power loom weavers to source quality yarn, he said. With an anticipated 50,000 visitors, the show is expected to generate a business worth Rs 150 crore to Rs 200 crore, he added.

Source: http://ibnlive.in.com

More details about the expo can be found here:
http://www.biztradeshows.com/trade-events/texfair-expo-coimbatore.htm

Indonesia is Set to Revitalize Its Industry of Textile Machines

According to TempoInteractive.Com, the Government of Indonesia will offer stimulus funds to textile entrepreneurs in the country to upgrade their existing machines.

The Industry Ministry has allocated Rp172 billion to revitalize machines used to produce textiles, footwear and leather this year. The revitalization process will be achieved by offering stimulus funds to businessmen to restructure their machines.

Textile Industry director Ramon Bangun said that 200 industries in Central Java could benefit from the stimulus fund. “There are 60 industries in Surakarta”, said Ramon yesterday.

Mr. Bangun said efficiency and production capacity of textile manufacturing units could be greatly enhanced, if the stimulus fund is utilized suitably.

He added that the increase in production capacity would make the firms more competitive and also create new employment opportunities.

He estimated that the textile and garment sectors could together absorb about 13,000 persons during the current year.

In Indonesia, there are 2,000 companies in the textile, footwear and leather sectors.
Indonesia is also one of the main outsourcing destinations for European and American industrial companies.

Source: http://www.tempointeractive.com

China: Sales of Textile Machinery is on the Rise

In China in the first three quarters of 2011, the sales of textile machinery and equipment amounted to CNY 29.95 billion, up 10.44% year-on-year. The textile machinery realized a total profit of CNY 1.5 billion, down 0.37%. The pre-tax profit stood at CNY 2.69 billion, up 6.26%. The per-capita profit dropped moderately by 2.73% compared to the same period of 2010.

The setbacks encountered during the operation of textile economy, especially textile trade disputes and tariff barrier, have exerted negative effects on investors´ confidence. As a result, both production and sales of textile machinery had declined. As trade disputes being solved and export refund policy adjusted (export refund bore by local government reduced to 7.5% from the previous 25%), textile export recovered and investor regained confidence in buying new machines. The sales began to pick up again in the second half of the year.

Although the shortage of coal and power has relieved and steel price began to drop back, the textile machinery sector was still haunted by price hiking of coal, power, oil and transportation. In the first three quarters of 2011, the power price rose 15%. Under strong competition on market, these costs are hardly offset by increasing selling prices. Therefore, the economic benefits of the sector grew slowly. In the January-September period, the sector produced a profit of CNY 1.5 billion, dropped slightly by 0.37% compared to same period of 2010, with a profit rate of only 4.66%.

The textile machinery sector is highly concentrated in Jiangsu, Zhejiang, Shandong provinces as well as Beijing and Shanghai, which cover 80.73% of total sales. China Textile Machinery Group Corporation earned a sales revenue of CNY 4.83 billion, covering 18.96% of the total, ranking the second place.

Source: China Textile Leader | yarnsandfibers.com

A New Common Facility Centre for Home Textiles in Haryana, India

The government of the north Indian state of Haryana is planning to set up Common Facility Centres (CFCs) for home furnishing and textile machinery, and readymade garments.

The government has identified Panipat for setting up a CFC for home furnishing and textile machinery. It has already prepared a Detailed Project Report (DPR) for the same and submitted to the Ministry of MSME for approval.

Gurgaon, near the nation’s capital, New Delhi, has been identified as a suitable location for setting up garments CFC.

The CFCs will have common infrastructure needed for that particular cluster, and will include design centre, testing facility, production unit, training centre, R&D centre, effluent treatment plant (ETP) and other necessary facilities.

For setting up a CFC, the Central Government will provide 70 percent subsidy subject to a cap of Rs. 150 million, while the remaining amount will be shared between the industry and the state government.

Haryana is home to around 80,000 MSME industries that together provide employment to nearly 900,000 persons and produce goods worth Rs. 45 billion every year.

Source: www.fibre2fashion.com

Textile Equipment Manufacturers Exploring the Booming Chinese Market

There is no mistaking in saying that textile equipment manufacturers flock in China in an attempt to sell their products to Chinese companies. Back in 2011, more than 1,300 textile equipment manufacturers from around the world attended the 2011 CISMA expo held in Shanghai.

During the 2011 edition of the trade show, a local expert mentioned that China's textile companies are focusing on technological upgrades, which has opened up an expanding market for textile equipment.
Another proof to these words was a separate pavilion occupied by German textile equipment companies! Ewlgar Straub, president of the German Engineering Federation, said: “China is our most important export destination, as its textile industry is in a leading position. Guenter Veit, vice president of the German Federation, added: "We hope our high-quality and high-tech equipment will help our Chinese customers to produce the best industrial textiles”.

The potential value of China's industrial textile market is expected to reach 1 trillion yuan (156.74 billion U.S. dollars) in the coming years, according to the China National Textile Industry Council.

The industrial textile market has posted an annual growth of more than 18 percent over the last two years. In 2009, output of domestic industrial textile products totaled 7.23 million metric tons, valued at about 240 billion yuan.

Source: xinhuanet.com

Global Textile Machinery Market to Reach US$20.75 Billion by 2015

As per Global Industry Analysts, Inc, the worldwide market for textile machinery awakened to one of the toughest economic downturns, which impacted the overall rate of growth resulting in heavy market erosion and decline of both imports and exports in 2008-09.

Driven by demand for nonwoven disposable textile products the global market for textile machinery is projected to reach US$20.75 billion by the year 2015.

It was also stated that the increasing leaning towards environmentally friendly fibers is expected to push demand for textile machineries that employ eco-friendly textile processes.

Demand for textile machinery is indirectly dependent on the demand in other sectors including housing and automobiles. As textile machinery is used for manufacturing home carpets and upholstery for furniture and automobiles, changing fashion trends affect demand for textile equipment. Production process of textile machinery is cyclical in nature and is dependent on equipment purchases, which slow down during recession and accelerate when the economy is sound.

The primary textile machinery market worldwide was affected by the global economic crisis, and witnessed severe downturn beginning mid-2007, and carrying on until 2010. The period 2008-2010 recorded the worst declines, with market growth sharply plummeting to negative levels in most parts of the world. The year 2009 particularly proved to be the nemesis for the industry, with developed countries recording steep market erosions of 20%-25% for the year. Developing countries fared only marginally better during the year 2009. Despite an increase in demand for premium fabrics globally, the demand for textile machinery used in production of these fabrics did not increase proportionately.

The growth of the Asian textile industry would provide the much-needed impetus to the western textile machinery manufacturers for revival of their business. Growing demand for nonwoven disposable textile products such as tissues and filters, particularly from the growing Chinese and Indian economies, would open doors for growth in the textile machinery market The growing demand for environmentally friendly fibers is expected to push demand for textile machineries that employ textile processes that are highly eco-friendly. Textile machinery market in Asia and most of countries in Latin America such as Peru, Colombia and Brazil is forecast to grow at healthy rate in near future as the market in these countries is exhibiting relatively better propensity to recover from the global recession.

Leading players in the global textile machinery market include American Textile Machinery Association, Batliboi Ltd., Benninger AG, Intertrad Group, Itema Group, Kirloskar Toyoda Textile Machinery Private Ltd., Lakshmi Machine Works Ltd., Lonati S.p.A., Mayer & Cie GmbH & Co. KG, Murata Machinery Ltd., Navis Global, Rieter AG, Santoni S.p.A., Saurer AG, Savio Macchine Tessili S.p.A., Shima Seiki Mfg. Ltd., TMT Machinery, Toyota Industries Corp., Veejay Lakshmi Engineering Works Ltd., West Point Foundry and Machine Co., and Willy Grob AG.

Source: www.strategyr.com

Italy: Textile Machinery Exports are on the Rise

According to the note from TexIndex.com, the Italian market of textile machinery saw important increases in manufacturing and exports in 2011. After a weak year in 2009 and a rather healthy recovery in 2010, the preliminary 2011 figures seem to show a lot of positive growth with a 9% increases compared to 2010 (2.6 billion euro vs. 2.4 billion from the previous year). As in every other important textile machinery-producing country, exports remain the major engine of growth in Italy.

Italian Textile Machinery Industry (millions of euros):

Over 80 percent of all Italian textile machinery product is exported. In 2011, 25 percent of all exports were shipped to China, and a total of 50 percent of all exports were delivered to Asian markets. Here is the growth in exports for the same period in 2010:

Italian Export Growth: January through October 2011

Source: ISTAT/ACIMIT

Source: http://www.texindex.com