FW
According to the China Chemical Fiber report, in the year of 2016, China nylon 66 chip market will see development of three plants, joining in or expanding original capacity, enlarging total domestic nylon 66 chip capacity to 505kta, significantly up 74 per cent year on year. There would be a rising competition in China among the four major producers, Shenma, Huafon, Xingjia (including Anshan Guorui), and Huayang. In March 2014, Invista entered the market with the construction of a new 150kta hexamethylene diamine (HMD) plant and a 150kta nylon 66 polymer plant at the Shanghai Chemical Industry Park in Shanghai, China.
Invista has announced plans to add a 300kta adiponitrile (ADN) plant at the site in future using its proprietary technology, and would supply to its downstream HMD production in the future. The three plants would be located adjacent to each other. The HMD plant is expected to start commercial production in early 2016, followed by its nylon 66 polymer production in May 2016. In the year of 2016, apart from Invista, nylon 66 chip plants, integrated with both HMD and polymer production, are only two, Shenma and Xingjia (including Anshan Guorui).
In 2015, Shenma has close-to half of China’s nylon 66 chip production capacity, followed by Huafon (28 per cent), Xingjia (17 per cent) and Huayang (7 per cent). The pattern will be changed in 2016, as Invista will be the largest nylon 66 chip producer in China, taking a proportion of 29 per cent, followed by Shenma (28 per cent), Xingjia (20 per cent), Huafon (16 per cent), and Huayang (7 per cent). However, with 74 per cent capacity increase in 2016, the actual growth in supply (import and domestic production) will be much smaller.
Invista will not only supply nylon 66 chip polymer (150kta) but also HMD (215kta) to China. The consumption of HMD is 0.45mt for per metric ton production of nylon 66 chip, theoretically using 67.5kt HMD, and the rest will be supplied to other polymer producers, Huafon and Huayang. It will be much cheaper than import raw materials with saved tariff and transportation fees. Therefore, the cost edges, originally enjoyed by only two integrated plants, Shenma and Xingjia, will also be shared by Huafon and Huayang.
www.ccfgroup.com
www.invista.com
Ghana’s local market has been suffering over the last one decade since it is flooded with cheap imports, mainly arriving from China. Experts point out that the employment in the domestic industry is now reduced to mere 3,000 jobs from almost ten times this number in 1980s.
According to Charles Asante-Bempong, Director at the Ghana Employers’ Association (GEA), the low quality copies of goods flooding the markets are killing domestic manufacturing businesses. Also, raw materials is another issue. Except for locally produced cotton used by the manufacturers, many of the dyes, chemicals and machines are imported from abroad at very high rates. For example, located in Tema, GTP is one of only four factories still operating. Renowned for its traditional designs and wax printed fabrics, the company has seen production levels drop 30 per cent and its production unit half since 2005.
Dealing with counterfeit good has become a huge issue and lack of government support is further damaging the prospects of once flourishing textile industry.
www.ghanaemployers.com
Spandex, a copolymer based on polyurea-polyurethane also known as elastane are used in a wide range of textiles due to its qualities like strength and strong elasticity as well its ability to return to its original shape after stretching as compared to ordinary fabrics. The global market for spandex has been constantly increasing due to rising demand from the textile and apparel industry.
However, on the other hand, the prices of spandex are witnessing a fluctuation at minimal rates. In early July 2014, prices of spandex were reduced due to weak trading activities, as well as the easing of tight supply of spandex and low demand from the downstream market. Although the market for spandex is currently growing, it has been extremely challenging with demand being weak in emerging economies such as the US since the global economic slow-down in 2008.
Spandex was first manufactured by E. I. du Pont de Nemours and Company. The fibers of spandex are manufactured through various processes such as solution wet spinning, solution dry spinning, reaction spinning and melt extrusion. All the processes include the reaction with monomers to develop a prepolymer, after which it is reacted further through certain techniques to finally make the fibres. Among all the methods, dry spinning is the most preferred choice for manufacturing spandex fibres.
After receiving four coveted awards in 2015 – Global Leadership Award in Sustainable Apparel (GLASA) 2015; Organic Cotton Round Table Innovation Challenge Award 2015; India International Trade Fair 2015 (Best display Award-Integrated Skill Development Scheme); and Maximum employment Provider Award (Large Industry Category for 2014), Pratibha Syntex is looking forward to achieving a growth target of Rs 1,500 crores by 2020.
Its sustainability efforts were also lauded as it received verification for water and carbon footprint by KPMG and life cycle analysis for cotton modal, spun dyed viscose, cotton viloft and recycled poly cotton. The company is known for its inner wear, leggings, tops, tees and polo shirts, among others and reported a group turnover of Rs 822 crores in the financial year 2014-15.
While the decline in currencies like euro and rand impacted its export business last year, the company is looking forward to an export growth of Rs 600 crores next year.
www.pratibhasyntex.com
Readymade garment exporters from Bangladesh have said that delay in releasing imported goods by the customs at the Hazrat Shahjalal International Airport (HSIA) is seriously affecting the whole garment export supply chain.
"We are not receiving our imported raw materials in time due to overall security measures taken by the airport authority and lack of coordination among different agencies including civil aviation, customs and Biman involved with the process," Md Siddiqur Rahman, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said while speaking to the media on Saturday.
Apparel exporters have to import many accessories including 'price' and 'security' tags selected by buyers and raw materials such as fabrics and product samples for completing export orders, he explained, adding, in recent times especially since the beginning of the current month, exporters were facing difficulties in getting their required imported consignments and in some cases, it was taking more than two weeks compared to a single day, needed previously, while some containers even went missing.
Imported raw materials worth millions of taka were getting damaged as the apparel makers are not being able to receive their required imported goods in time, Rahman said.
www.bgmea.com.bd
Maharashtra is taking steps to boost its textile sector. A mega textile hub is being planned for the cotton-growing Vidarbha area. The Maharashtra Textile Policy 2011-17 had stipulated generation of 11 lakh jobs and investment worth Rs 40,000 crores. The aim was to utilise 45 lakh surplus cotton bales produced in the state.
Only 112 projects, worth Rs 3,300 crores, have been completed till now, creating 27,700 jobs. This means only 2.5 per cent of jobs and 8.25 per cent of the projected investment have come into existence. As many as 967 projects worth Rs 9,749 crores were approved in the state, which were to generate employment for 57,000 people.
The new textile policy seeks to offer equity support to new cooperative spinning mills in Vidarbha, Marathwada and North Maharashtra as per the financial pattern 5:45:50, apart from 10 per cent capital subsidy for new projects in the three regions. The policy will launch a skill development program and seeks to review and modify various regulatory provisions of labor and environmental laws, which adversely affect the growth of the textile sector.
Half of the jobs in the textile sector will be created through smaller projects, each worth Rs 10 crores or less. Over 840 projects in this category are expected to give jobs to 27,000 people.
The National Textile Corporation (NTC) has begun e-auction of yarn. The decision to adopt e-auctions has been taken to give maximum opportunity to dealers for lifting of NTC stock and thereby reduce inventory and improve cash flow. The transparent electronic bidding process is also expected to result in better price discovery of the yarn stock.
The e-auction route has been made open for all registered dealers of NTC. Each dealer has been provided a unique ID and password, and trained by way of mock e-auctions and practice sessions. In future, e-auction shall be extended to the open market as well but after registering the dealers.
Base prices will be fixed every Wednesday and the e-auction will take place on Thursday. The sale shall be completed and the material will be allotted as per the highest bid and quantity, as the case may be. There may be more than one winner for one count of yarn.
Currently, yarn is sold through dealers, registered mill-wise with NTC as per procedure. Prices are fixed every Wednesday and the yarn is sold to dealers at certain rates for the entire week. At present, four to six dealers are registered with each mill. If the material is not sold, it remains unsold and the stock piles up.
ntcltd.co.in/
As per the latest figures from the Department of Commerce’s Office of Textiles and Apparel (OTEXA) the volume of US apparel imports from all sources grew 4.8 per cent year-on-year in September 2015, down from the 13.5 per cent increase in August 2015. Imports reached 2.69 billion square metre equivalents (SME), up from 2.56 billion SME in September last year 2014
In September 2015 apparel imports into the US continued its upward trajectory, with seven of the top 10 supplier countries booking year-on-year growth. Despite rising wages and strong currency, China continues to be the largest exporter, keeping the TPP benefits in mind, Vietnam too received an encouraging response from the western buyers.
Bangladesh exports rise 21.15 per cent
As per the latest figures from the Department of Commerce’s Office of Textiles and Apparel (OTEXA) the volume of US apparel imports from all sources grew 4.8 per cent year-on-year in September 2015, down from the 13.5 per cent increase in August 2015. Imports reached 2.69 billion square metre equivalents (SME), up from 2.56 billion SME in September last year 2014.
Official data showed that Bangladesh’s exports rose 21.15 percent to $2.37 billion in October 2015 from a year earlier, driven by stronger overseas sales of garments. The Export Promotion Bureau (EPB) said that exports from July to October, the first four months of the 2015-2016 financial years, rose nearly 5 per cent to $10.13 billion from the same period a year earlier, 3 percent short of the target. Sales of garments, comprising woven items and knitwear, totaled $8.24 billion in the July-October (2015) period, compared with nearly $7.75 billion a year earlier.
Breaking it down into individual supplier countries, seven of the top 10 recorded growth shipments from China – the largest supplier of apparel to the US – were up 1.48 per cent to 1.32 billion SME. Nearest rival Vietnam grew 10.6 per cent to 281 million SME, compared to the same month September a year back in 2014. Bangladesh, ranked number three in the top-ten league table, saw apparel shipments rise 41.6 per cent to 157 million SME.
Of the remaining supplier countries, Indonesia recorded the strongest growth at 16 per cent to reach 99 million SME, followed by El Salvador up 13.8 per cent to 76 million SME and Pakistan up 13 per cent to 51 million SME. Year-on-year import gains were also reported by India up 10.5 per cent to 74 million SME. However, three countries saw apparel shipments decline during September 2015. Cambodia recorded the largest drop at 3.52 per cent to 109 million SME, followed by Honduras down 3.5 per cent to 101 million SME, and Mexico down 1.74 per cent to 72 million SME.
China, Vietnam gain despite hiccups
Despite increasing wages posing as a deterrent to its competitiveness on the global stage, China continued to lead the way when it comes to efficiency and infrastructure. Rising prices are largely being offset by productivity gains and China continues to be the compelling source for apparel buyers. With its 10,916 garment manufacturers with annual sales above CNY20 million churning out 29.6 billion pieces in 2014, up 1.6 per cent year-on-year, experts say that no country can match China in terms of the size of its supply base.
Official data also indicates that the overall weakening of China’s manufacturing industry has slowed down, prompting hopes the government’s stimulation efforts are starting to take effect.
Vietnam on the other hand is benefiting as producers and buyers diversify their supply chains to the country keeping the opportunities Trans-Pacific Partnership would open for then. China sensing the after-effect of TPP has already started moving large volume of its investments to Vietnam to boost its garment sector and take advantage of the TPP.
According to data from Office of Textiles and Apparels under the US Commerce Department the TPP final deal has started pinching Bangladesh RMG sector though it is yet to be signed. Bangladesh apparels export to the US market grew 11.40 per cent while Vietnam export to the US market rose to 13.86 per cent during the last 10 months from January to October of 2015. During the said period Bangladesh earned $4.66 billion and Vietnam earned $9.03 billion from their RMG exports to the US. Movement within the top three – China, Vietnam and Bangladesh – during the seven months of year 2015 shows China rose 7.2 per cent to 8.69 billion SME, Vietnam grew 15.2 per cent to 2.38 billion SME, and Bangladesh increased 13.8 per cent to 1.43 billion SME.
The other winners included India up 7.2 per cent to 799 million SME; Cambodia up 4.2 per cent to 816 million SME; Honduras up 3.8 per cent to 837 million SME; El Salvador up 2.2 per cent to 609 million SME; and Pakistan up 0.4 per cent to 448 million SME. However, Mexico saw apparel shipments drop 0.6 per cent to 692 million SME, while Indonesia’s shipments were down 0.5 per cent to 960 million SME. A broader view of the year 2015 indicates that total US apparel and textile imports increased 8.92 per cent between January and September to reach 48.43 billion SME from 44.46 billion SME last year.
Otexa.ita.doc.gov
For the fourth consecutive year, reshoring of manufacturing operations to the United States has once again failed to keep up with offshoring. The reshoring trend seems to be over before it has started. But foreign companies, including many from China, are the ones most eager to invest in US manufacturing.
In contrast offshoring seems to be gathering steam. Industries vulnerable to rising labor costs in China have been successfully relocating to other Asian countries, rather than returning to the United States. They have done so without incurring significantly higher supply chain costs, despite the weaker infrastructure and supporting ecosystems of these new low labor cost destinations.
Vietnam has absorbed the lion’s share of China’s manufacturing outflow, especially in apparel. US imports of manufactured goods from Vietnam in 2015 will be nearly triple the level of imports in 2010. Surprisingly some of the top sectors for reshoring from 2011 to 2015 are also sectors that have led the pack in further offshoring over that same period.
Although reshoring of manufacturing by US companies is on the decline, non-US companies, including Chinese companies, increasingly invest in establishing or expanding their manufacturing footprint in the United States. The insatiable US consumer market, the stable political and economic environment, and the benefit of tapping into American engineering skills and manufacturing know-how are the main draws.
Premiere Vision New York will take place on January 19 and 20, 2016. Known for its premium offer of fabrics, accessories and textile designs, the show has now broadened to include leather and manufacturing. The event, a North American market leader, has become an unique destination for buyers to develop collections. The Trend Forum displays major trends through a selection of exhibitors’ most distinctive samples: accessories, fabrics, leather. The forum is also a useful way of finding suppliers.
This season, the denim and couture exhibit explores the new connections between denim couture and tailoring. The 30 companies premiering in the leather space are distinguished by the exceptional quality of products for both clothing and high end leather goods.
The manufacturing universe welcomes 26 specialists with multiple know-hows for women’s wear and men’s wear, particularly for high-end suits. There is a notable presence of several Moroccan companies, Portuguese companies Goucam and Montagut and the Japanese knit specialist Shima Seiki.
The show also hosts Manufacture New York, a consortium of fashion entrepreneurs, high end manufacturers, technologists and educators showcasing an innovative vision of a vertically integrated Made in NY supply chain. There will be panel discussions and demonstrations of fashion’s best equipment and techniques.
www.premierevision-newyork.com/
