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There is growing global demand for denim. And Bangladesh will open at least six factories this year. The Envoy group for one will start producing an additional one million yards of denim fabric a month in the next three months. It produces three million yards a month at present.
Envoy currently purchases 60 tonnes of yarn a day from local yarn makers to produce denim. To meet growing demand, it is now establishing a new spinning mill to produce 50 tonnes of yarn a day. Five to six other groups have already installed machinery to produce the fabric.
In the middle of 2013, denim lost much of its global demand to jeggings. But now western buyers have returned to denim. Bangladesh exports denim fabrics and garments worth more than $600 million a year to the $60 billion dollar global market. It has 25 denim factories that produce around 20 million yards of denim fabrics a month. These go to major retailers and brands like H&M, Uniqlo, Levis, Nike, Walmart, M&S, Calvin Klein, Diesel and Gap.
Within Bangladesh, firms meet 40 per cent of the demand for denim fabric by denim makers and exporters. Imports account for the rest.
Heimtextil, the international trade fair for home and contract textiles, will take place in Germany from January 14 to 17, 2015. The organizer Messe Frankfurt is preparing a new, expanded trend concept called the Heimtextil theme park. One of the themes it will explore for 2015-16 is experience, since textiles are the perfect vehicle for inspiring sensory and interactive experiences.
The new Heimtextil trend book presents a selection of spectacular projects, which can be experienced with the senses. For the first time, the trend book comes with interactive print elements, which enable readers to obtain supplementary information in digital form by scanning the parts of the book marked and then watching animated images on their smart phone or tablet.
The first part of the trend book revolves around social, political, technological and artistic themes that have a decisive influence on designers. The second section looks at trends that are set to have a direct influence on interior design and home textiles in 2015. The third part of the book is devoted to color innovations.
Heimtextil has a special function as a trend barometer and benchmark for high-quality textiles characterised by excellent design and innovative functionality. Against this background, Messe Frankfurt launched the Heimtextil trend show back in 1991 and has expanded it continuously since then.
heimtextil.messefrankfurt.com/frankfurt/en/besucher/willkommen.html
When it comes to exporting garments to the US, Africa has a distinct advantage against Bangladesh. It’s because of discriminatory duty benefits. Garment exports from Africa to the US, attracts zero-duty.
Garment exports to the US from nine leading African countries increased 9.66 per cent year-on-year in 2013. However, apparel exports to the US from Bangladesh fell 1.12 per cent in the first five months of 2014 from the same period a year ago. African countries have the cotton benefit, which Bangladesh does not have. Bangladesh now fears losing its competitive edge due to a discriminatory duty structure and a higher cost of production.
The African Growth and Opportunity Act (AGOA) gives duty-free and quota-free status to apparel items made in more than 45 countries in sub-Saharan Africa. While Bangladeshi garment exporters paid $828 million in duties to US customs last year and $3.41 billion in the last five years.
A distinct advantage in the African trade preference is that the fabric can come from any country, including places such as China and South Korea, for apparel manufacturing and still receive duty-free status. That gives Africa an advantage compared to major apparel producing countries such as China and Vietnam, whose garments are subject to tariffs.
Textile firms in the Czech Republic saw a 12 per cent year-on-year growth in the first half of 2014. The Czech Republic has a long history of textile manufacturing for the garment industry. However, the largest firms in the field are chiefly involved in the production of materials not used in clothing but in a number of other industries.
The largest of them, Juta, makes a range of products for the construction and agriculture sectors, as well as technical materials. It exports 80 per cent of its output. The number two, Pegas Nonwovens, produces polypropylene and polyethylene nonwoven textiles for agriculture, construction and for use in the manufacture of hygiene products.
Another of the industry’s big five Kordárna makes technical fabrics for the rubber industry. It saw its revenues climb 13 per cent in the first half of the year. However, while Czech textile firms are enjoying relatively good times, things are not quite so great for the country’s sector, with the segment growing by a relatively low two per cent in the first half of 2014.
The clothing industry has managed to survive some very lean years when local manufacturers tried and failed to compete with cheap imports from Asia. The sector has achieved this by going in for increased specialization.
The All Pakistan Textile Mills Association (APTMA) wants the government to ensure a level-playing field in trade negotiations with India.The objective basically is to boost exports to India rather than have the country flooded with Indian imports.
APTMA says the duty structure between the two countries must be equal and on a reciprocal basis without any discrimination and non-tariff barriers must be negotiated. The demand is for a long term trading arrangement with India. The proposals further maintain that if finished goods are placed in the positive list of items then the raw materials required for manufacturing of those goods should also be placed on the positive list of items to be imported from India. It mentions an anomaly in the case of polyester staple fiber or filament. This is a raw material included in the negative list of items and its import is not allowed from India but finished goods made with fiber or filament such as synthetic yarn and fabrics are freely allowed to be imported from India.
APTMA is the premier national trade association of the textile spinning, weaving, and organized sectors in Pakistan. It represents 396 textile mills, out of which 315 are spinning, 44 weaving and 37 composite units. These spinning mills have production facilities of texturing, mercerizing and dyeing of yarns; weaving mills have a sizeable number of air-jet looms, and composite mills have manufacturing facilities from spinning to finished textile products under one roof.
www.aptma.org.pk/
The Pakistan Textile Exporters Association (PTEA) and the International Labor Organization (ILO) are joining forces to improve labor standards in the country’s textile and garment industry. The program focuses on scalable and sustainable solutions that build cooperation between governments, employers’ and workers’ organisations and international buyers.
The goal is to implement labor laws and standards for the 15 million women and men employed in the sector, develop buyers’ confidence that factories are implementing standards. ILO will provide technical assistance as well as assessment, advisory and training expertise to the ten factories initially taking part in the program. The initiative is expected to help workers and employers design and implement a workplace improvement plan to enhance working conditions and productivity.
The Pakistan Textile Exporters Association was established in 1985. It disseminates textile-related information to members and helps exporters obtain foreign exchange for business travel. It promotes textile exports of the country by participation in fairs and exhibitions and seminars.
It fights tariff and non-tariff barriers which countries impose on textile imports from Pakistan such as rules of origin and anti-dumping regulations. It approaches the government to provide facilities for exporters to compete against rival countries’ exporters. It has a lab that provides textile testing services.
www.ptea.org.pk/
Cotton is set to fall to the lowest in five years as demand slows in China, the world’s biggest consumer, and India heads for a record crop. Cotton has an oversupply situation both in the global market as well as in India. Demand is also weakening in countries like China. It’s going to be a challenge for India to export the same amount of cotton next year.
China’s imports fell 39 per cent in the first seven months from a year earlier. The country holds more than half of the global inventory. Slowing demand from China would reduce India’s exports next year even as the harvest flourishes. The harvest in India, the world’s second largest grower, may jump to a record 40 million bales from 37 million bales this year.
Prospects for yarn exports, mostly shipped to China, may also be hurt by weakening demand. This means demand for cotton from India’s spinning mills is set to decline further. Stockpiles in the US, the world’s biggest exporter, will probably more than double to 5.6 million bales of 480 pounds each by July 2015, the biggest increase since 1986. Global reserves are poised to reach an all-time high of 105 million bales.
The turmoil in Ukraine has pitted Russia against the US and the European Union. Fearing sanctions, Russia has threatened a ban on imports of clothing and textiles from the EU and the US. Moscow has already said it will not allow the import of EU clothing and textile products for government purchasing contracts. It has also banned the import of a wide range of clothing and textile inputs for such contracts.
On August 11, the Russian government ordered that public procurement from overseas of textiles, knitwear, nonwovens and some clothing should cease from September. The ban covers imports of fabrics, made-up textile articles, except apparel, ropes, cords and net, nonwoven materials and products, except clothing, knitted cloths, hosiery, pullovers, cardigans, overalls, top clothes, underwear and fur products.
The share of textile and clothing imports from the US and the EU make up around 10 per cent of such goods consumed in Russia. Traditionally, such imports account for the most expensive, high-margin production. Russia feels the clampdown on western textile and light industry products would significantly increase the volume of domestic production, for which local demand is growing steadily.
The government is planning to provide domestic textile producers access to bank loans with interest rates no higher than five per cent . In addition, there are also plans to provide additional tax benefits to producers.
Cinte Techtextil will be held from September 24 to 26, 2014 in Shanghai. A biennial Chinese trade fair, it’s aimed at for technical textiles and nonwovens. Nearly 500 exhibitors from 19 countries are expected. The Hong Kong Research Institute of Textiles and Apparel focuses on developing new materials and textiles, advanced production technology and design and evaluation technology. It will present its intelligent impact protectors based on 3D auxetic spacer fabrics at the fair.
Korea Textile Trade Association will showcase heat protecting fabrics, non-slip carbon fabrics, carbon fiber and aramid composite fabrics, nonwoven textiles for automobile interiors and ultra lightweight fabrics for tents and tarps. The German pavilion will house 30 well-known exhibitors representing textile technology, technical textiles, nonwovens and coated textiles. Companies will display a special range of products for finishing airbag fabrics, pre-preg fibers and technical felts, turnkey airlay, carding and thermo bonding lines for the nonwovens industry, various nonwoven, spun melt and air laid technologies for a wide range of applications and rapier and air-jet weaving machines.
Technical textiles are used in many industrial areas in China like the automotive industry and the medical and consumer goods industry. Nonwovens for the automotive industry and filter media are of particular interest in this market particularly high-quality nonwovens for complex products.
cinte-techtextil-china.hk.messefrankfurt.com/
Owners of some non-compliant readymade garment factories in Bangladesh would like to relocate their units to new places. But non-availability of suitable land, gas and electricity, and unwillingness of workers to shift have emerged as major impediments to their initiatives.
The issue arises against the backdrop of the ongoing factory inspections on workplace safety by western retailers and the government. It is difficult to convince workers to migrate from one place to another due to reasons like lack of facilities for accommodation, education for their children among others.
These non-compliant factory owners are demanding a garment village, especially for Chittagong-based units, saying the port city factories would not shift to the capital. They want the government to provide funds at a low interest rate, especially for the closed factories, so that they can relocate their units to safer places.
Labor leaders say workers will lose their jobs and be deprived of their lawful rights of compensation and other service benefits following relocation. Women who constitute a large section of the workforce say they can’t pack their bags and leave and uproot their children from school.
However, amid all this confusion and uncertainty some manufacturers have already started the process of relocation. Some 50 factories have already shifted.
