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"Intended to strengthen the already well-established industrial ties between Egypt and Switzerland and to initiate a major step towards the revival of Egyptian textile manufacturing sector, national association Swissmem held a two-day symposium in early April in Cairo. Egyptian cotton is known worldwide for its quality and strength in applications such as shirts and bedsheets. Textile production, using both local and imported cotton, is a vital contributor to Egypt’s economy, ranking behind only tourism and Suez Canal revenues in the generation of income."
Intended to strengthen the already well-established industrial ties between Egypt and Switzerland and to initiate a major step towards the revival of Egyptian textile manufacturing sector, national association Swissmem held a two-day symposium in early April in Cairo. Egyptian cotton is known worldwide for its quality and strength in applications such as shirts and bedsheets. Textile production, using both local and imported cotton, is a vital contributor to Egypt’s economy, ranking behind only tourism and Suez Canal revenues in the generation of income.
Collaborations to move forward
Switzerland’s textile machinery suppliers, in order to empower the industry, have now initiated a major step towards revival of Egyptian textile manufacturing, with a highly-successful two-day symposium (April 4-5, 2017) in Cairo. A total of 13 association member companies presented their latest machines and systems to an audience of 400, including representatives of the major textile producers from the private and public sectors, as well as delegates from various universities and research institutes.
As the first of European textile machinery-producing countries to plan an event of this type, Switzerland recognises the enormous potential for renewal of Egypt’s textile sector. The devaluations, while making Egyptian goods theoretically more attractive in export markets, have also seriously impacted on the cost and accessibility to Egypt’s textile companies of new production technology from the major producers. The Swissmem symposium addressed this issue head-on, with direct offers of assistance in the key area of financing capital imports. Ernesto Maurer, Swissmem President, told the symposium that Switzerland is ready to support Egypt in its striving to re-connect with the worldwide textile community. He was referring to difficulties in accessing foreign exchange funds and the high costs associated with this, which have been a major obstacle to Egyptian companies seeking to renew their equipment and take up new technology. Funds need to be created prior to new investments, and here the Swiss textile machinery companies can help. Sometimes, it is also the case that service and upgrade of existing equipment can be easier to achieve than complete renewal.
Seeking solutions
Swiss textile machinery producers enjoyed strong export sales to Egypt in the years up to 2013, but the country’s economic and political uncertainties since then have seen shipments decline to only 20 per cent of previous levels. Now, with vigour Egyptian textile manufacturers are set to expand their markets, improve production capability and product quality, Swissmem is confident of providing them both the financial and technological solutions they require. Ernesto Maurer highlighted that Egypt will find a way back to its previous position of strength, and its leading role in the world of high quality fabrics. The Egyptian cotton brand ‘Giza 100’ once stood as a synonym for quality in textile raw materials. Swiss textile machinery industry is an enthusiastic partner in facilitating and stimulating this revival. The 13 Swissmem companies taking part in the symposium were: Luwa, Amsler Tex, Heberlein, SSM Schärer Schweiter Mettler, Saurer (Embroidery), Rieter Components (Bräcker, Graf, Nobibra and Süssen), Stäubli, Jakob Müller, Retech, Loepfe, Maag, Benninger, and Santex-Rimar.
The European Union will withdraw Generalised System of Preferences (GSP) benefits for Bangladesh unless labor rights issues are addressed. In response Bangladesh has taken steps regarding ensuring workers’ trade union rights in the country’s export processing zones. Work on a database to look into trade union registration activities has also begun. A tripartite advisory committee for the garment sector has been formed to address labor-related issues.
The EU is a major destination for Bangladeshi exports. Nearly 80 to 85 per cent of the country’s total frozen fish and shrimp exports go to the EU. Bangladesh is the EU’s 33rd largest trade partner in goods and the country’s exports to the EU are dominated by clothing and textiles. Bangladesh fetched 61 per cent of its total garment exports from exporting garment goods to the EU in the fiscal year 2015-16.
If the EU withdraws its GSP for Bangladesh, duty at the rate of 12.50 per cent has to be paid and Bangladesh’s exporters stand to lose competitiveness. Suspension of the trade facility by the EU might create an adverse impact on the country’s overall trade and economy, especially on bank and insurance sectors. Earlier the United States suspended Bangladesh’s GSP benefit in June 2013.
Apparel exporters in Tirupur want to transform the cluster into a zero defect textile hub. They feel if they can achieve even a 10 per cent reduction in waste and defect, it would help the industry save almost Rs 2000 crores annually. The knitwear fashion institute established by apparel exporters has already undertaken several initiatives to equip the industry with the latest skills and techniques toward achieving a zero defect efficiency level.
More than 80 per cent of the industries in this sector are medium and small scale. It’s estimated that the total cost of upgradation and skill development would amount to Rs 124 crores. Knitwear exports from Tirupur grew 12 per cent in 2015-16 compared to the previous year.
The share of Tirupur knitwear exports in India’s total garment exports is 20 per cent. Exporters want a one-time long term initiative to be undertaken to uplift the skill proficiency of existing laborers in order to increase productivity at par with competing countries and at the same time reduce waste.
Exporters also feel this is the right time for the knitwear sector to capture the market that’s leaving China, due to an increase in cost of manufacturing. If the opportunity is missed, the market would be captured by competing countries like Bangladesh, Vietnam, Indonesia and Cambodia.
Orchestra has opened in the US. This is a children's, maternity and childcare fashion brand from France. The 23-year-old family-owned company, which now boasts stores in over 40 countries, is known for its playful and innovative designs, quality, and family friendly service.
Orchestra launched in 1995 started by opening a few small branch stores, then developed its franchise business from 1999 onwards. In 2006, the concept changed, with the development of out-of-town stores. These Big Orchestra stores featured a wider selection of products and offered more services. From 2006 to 2009, Orchestra continued to develop its out-of-town stores near French cities, as well as expanding into seven new countries.
In 2009, Orchestra revolutionized the consumer model by introducing a permanent discount and benefit system for its customers: Club Orchestra. Boosted by the success of the scheme in the pilot stores, Club Orchestra was rolled out in Spain, then in France, Belgium, and Switzerland. Orchestra also continued to expand its network of stores, opening a new flagship in Paris. This was followed by further stores in Madrid and Barcelona in 2011. A new online store was also launched, along with a subsidiary in Greece.
Orchestra continued to expand abroad in 2012, creating subsidiaries in Turkey and China with a view to developing distribution networks for the brand in these markets.
If the US withdraws from TPP, and imposes high tariffs on goods imported from China and Mexico, it would be good news for South Asia. From TPP alone, exports of textiles and clothing from Vietnam--a major competitor for South Asian countries--would have increased by 40 per cent, mostly due to the implied zero-tariff access to the US market. This would have caused large losses to exports of textiles and clothing from Nepal and Bangladesh.
But given a US pullout from TPP, the predicted negative impacts on South Asia would not happen. Also, if the US raises tariffs for imports from China and Mexico by 10 percentage points, exports from these two countries to the US would reduce by 35 per cent and 25 per cent respectively. South Asian countries would be able to scale up their exports to the US as a result.
The US is a key export market for many South Asian countries. The top export destination for Bangladesh, India, Pakistan and Sri Lanka is the US. For Nepal, the US is the second most important export destination after India. The dependence of South Asian countries on the US, in terms of exports, means these nations would gain if the world’s largest economy raises tariffs on goods imported from China and Mexico.
Indonesia is hosting ITPT show from April 19 to 21, 2017. This is a textile and clothing exhibition which aims to increase the sector’s domestic share and promote exports to Asean countries as well as to the Americas, Europe and Africa. The exhibition’s theme is ‘Productivity for Sustainability’. Around 450 participants from 24 countries are attending. Participants are displaying latest machines, some of which are Juki, Brothers, and Fongs.
The show aims to demonstrate technology and the concept of one stop shopping. Buyers and sellers can maximize the opportunity to establish networking. The country targets increasing the value of textile and garment exports to $75 billion by 2030, implying the industry would contribute five per cent to global exports.
However, Indonesia is facing several challenges: upstream sector is largely inadequate, causing a reliance on imports of raw materials and requires an injection of investment, technology and expertise, while competition from other textile producing nations in southeast Asia like Cambodia, Vietnam as well as Myanmar is rising.
Yarn, cotton, dyes and fabrics, both natural and manmade, are mostly imported in US dollars. A depreciating rupiah against the US dollar makes imports expensive and therefore, causes financial turmoil for local textile companies, particularly the smaller ones that have fewer cash reserves to rely on.
China has agreed to give into the demands of Pakistani exporters in amended FTA which is expected to be signed next month. The issues of local exporters were debated during the 9th round of two-day negotiations on China-Pakistan FTA. The Pakistani delegation was led by secretary of commerce Mohammad Younus Dagha and the Chinese side was led by vice minister for commerce Wang Shouwen. The requirements include: provision for tariff concessions equivalent to Asean countries.
Dagha suggested incorporating clauses for safeguarding Pakistani industries and the economy from any undue pressure on the balance of payments position, the release added. Various domestic business organisations have complained that products where Pakistan enjoys a competitive advantage are not covered by Chinese officials, which has wider access to Pakistan’s markets. China is now the largest source of Pakistan’s imports, which stand at 29 per cent of total imports.
A recent paper by the State Bank of Pakistan reports over half of the country’s imports of electrical equipment and machinery come from China. An SBP study notes that under the 2006 FTA, China granted concessions on 7,550 tariff lines to Pakistan of which 35pc of the products covered by those lines were zero rated, however, 15pc of the products were given no concession, which include fish, cotton, paper, plastic and textile items.
The report noted Pakistan gave concessions on 6,803 tariff lines to China in that same agreement, where electric and electronic products, machinery and chemicals and other raw materials were zero rated. “Pakistan excluded a list of products (92 tariff lines), which mainly include alcohol, drugs, arms and ammunitions.” It reports the surge in imports from China were mainly due to growing imports of machinery and the diversion of imports from other trading partners.
Global market for functional textile finishing agents is seeing steady growth. It’s anticipated to grow at a CAGR of five per cent till 2025. Increasing purchasing power and disposable income in emerging economies including China, Russia, Brazil, and India are projected to increase the demand for functional textile finishing agents in the next nine years.
Another factor is rising consumer demand for protective fabrics due to growing health awareness and hygiene concerns. Flame retardant chemicals accounted for over 22 per cent of global consumption in 2015. Increasing use of performance finishing agents to discover innovative value-added fabrics so as to strengthen existing product lines and diversify into new horizons is expected to further boost the industry growth over the forecast period.
The Asia Pacific market is expected to grow at an estimated CAGR of 5.5 per cent from 2016 to 2025. Asian manufacturers are launching innovative performance finishing products to increase their customer base. Expansion of multinational players in the region, along with growing local consumption and stable economic conditions, is projected to support regional growth in the coming years.
Repellent and release agents dominated the textile furnishing finishing agents market in 2015 and are projected to grow at an estimated CAGR of 4.8 per cent from 2016 to 2025.
Decks have been cleared for the launch of long-pending textile park, slated to be the biggest ‘fibre to fabric’ (end-to-end) facility in the country, in Warangal with the authorities completing land acquisition, one of a key challenge that every government has been confronting, these days.
For over six years, the project has been in the pipeline, in 2014 it was ultimately given a push by the Telangana government. It might be noted here that although the state produces 60 lakh bales of cotton per annum, consumption by the local mills is just around 10 lakh bales. The surplus is being exported to neighboring states Tamil Nadu and Maharashtra.
At the beginning under the Dharmasagar mandal, the authorities identified land for the proposed park in Devunuru and Mupparam villages. Of which, a part of land belonged to forest department. The government cancelled it knowing the problems in getting clearances from the forest wing. Also Warangal rural district land acquisition process hit a roadblock with farmers not willing to concede their fertile lands.
The administration has acquired 1,120 acres against the required 1,050 acres. A detailed project report (DPR), prepared by the infrastructure leasing and financial services will be submitted to the government soon. On the other hand, speculation has been rife that chief minister who is scheduled to address a public meeting in Hanamkonda on April 27 is expected to lay the foundation stone for the mega textile park.
Karl Mayer completes 80 years of innovation. On this occasion, the company is holding an in-house show at its headquarters in Obertshausen in July. The world market leader in textile machinery building will be demonstrating its progress-orientation by a series of events, at the company’s headquarters. The first event will be held in July 1 -- an open day for the public. An in-house show for customers and business partners will follow on July 6 and 7. The manufacturer offers solutions for warp knitting, technical textiles and warp preparation for weaving. The company has subsidiaries in the US, India, Italy, Hong Kong, Japan, China and Switzerland as well as agencies all over the world.
The Weftronic II HKS is a high-performance warp knitting machine with weft insertion to match the courses. It enables the efficient production of extremely lightweight fabrics which are suitable to be used as interlining.
Karl Mayer is also a partner of composite sector. When it comes to manufacture of composite materials made from glass fibers, for example, the multi axial warp knitting machine Cop Max 4, 100 and the fiber spreading unit UD 700 are technical solutions of the highest perfection.
Other offerings are the Prosize sizing machine and the Multi-Matic. Prosize offers the highest efficiency in weaving and the smallest possible sizing liquor volume. In this way, it makes a significant contribution to the concept of sustainability. Outstanding features of the Multi-Matic are its high flexibility during sampling and short-warp production. Moreover, this innovative warp preparation unit offers an exceptionally high productivity, so that it can be used both as sampling machine and as production machine.
