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This is most updated information about Technical Textiles economy in China in 2019, with statistics from Jan-Dec 2019, collated in February 2020. The year of 2019 witnessed 235.93 billion Yuan in business income, 1.2 percentage growth, but its profit went down by 4.3 percent with averaged profit/business income rate at 5.9%, 0.3 percentage point down as opposed to that of the year before.
The risk of being infected has diverted the consumers’ eyes away from the traditional luxuries to a new concept of de-luxe goods, masks and protective tissues and safety wears, etc., making the Technical Textile sector come into spotlight, far it more significant than fashion wear, at this moment .
China’s technical textile industry plays an important role in mobilizing the member companies to resume production to respond to national call for synergizing all the efforts and resources to fight the coronavirus(COVID-19).
You might be interested in understanding this particular sector of the whole textile industry in China in the days gone by and in the days to come. Here is the brief of the new annual report:
Production
As driven by the rising demand for non-woven both at home and abroad, its total production reached 5.03 million tons, up by 9.9%, but the tyre cord fabric did not present such a promising picture as the withering automobiles industry delustered its supply chain, making the production of the cord fabric drop by 7.4% in growth rate to result in 623,000 tons in 2019.
Economic performance
The year of 2019 witnessed 235.93 billion Yuan in business income, 1.2 percentage growth, but its profit went down by 4.3 percent with averaged profit/business income rate at 5.9%, 0.3 percentage point down as opposed to that of the year before. If we look into the sector-specific performance, there is a diversified picture in the fact that the tents and canvas got an uptick in gross profit rate and profit rate respectively by 1.5% and 0.5%; Rope, cordages and cables plummeted by 18.2%, while the belts and tyre cord fabric by 9.7% in profit gains. Moreover, the other industrial textiles, such as tech-textiles used in filter, geo-synthetics, safety protection, transportation and composite materials, curved up by 7.2% in profit rate based on its better gross profit rate at 16.1% level, taking a leading role in all the technical textile industry.
The non-woven sector finished with 2.9% growth in business income, and 3.8% drop in total profit and 0.4 percentage point down in profit rate last year.
International Trade
China shipped out $27.34 billion worth of technical textiles, marking 2.1% year-on-year growth as against 5.7% drop in importing goods worth $6.73 billion in this category. In the major markets, laminated fabrics or coated fabrics, non-woven and tents & canvas are ranked in the top three products in the export sheet, growing at 0.4%, 5.4% and 2.7% respectively in value terms. Of the top three, the non-woven was exported on a rise by 9.1%, amounting to 1.051 million tons in volume. Prominently, the one-off sanitary-purposed textiles continued to remain dynamic, registering 16% and 18.8% higher level in export value and volume than that seen in the previous year. Conclusively, it was the volume that counts most in pushing forward the export growth in China’s industrial textiles last year.
In view of the main destinations, United States is the largest market where $3.7 billion worth of technical textiles from China were shipped to, sliding down by 9.1%, as was handicapped by the trade altercations between the two countries. On the other side of coin, the export to Vietnam outran Japan, up by 10.18%, making this neighbor country the second largest market while the shipment to Japan and South Korea stayed stable, somewhere it had been in value level in 2019 as compared with the year before. It is interesting to see that the countries along “Belt and Road Initiative” territory are rising to be the important driver for China’s technical textiles export, with $10.85 billion seen last year, at a growth rate of 7.1 percent, of which the non-woven ramped up to 16.7% in dollars and to 18.9% in weight.
Forecast
What is in store for 2020? It is estimated the total economic performance for the industrial textile sector will turn out to be good, at a moderate growth rate in important indicators like production, sales and export for the whole year, but the first half will see a downslide, to some extent, because the factories have not got a full-house operation as the on-going tightened measures to prevent and control coronavirus in some areas are still in effect, making it difficult for all the workers come back to production lines. Optimistically, we see the light at the end of the dark tunnel.
Contributed by Mr. ZHAO Hong
He is working for CHINA TEXTILE magazine as Editor-in-Chief in addition to being involved in a plethora of activities for the textile industry. He has worked for the Engineering Institute of Ministry of Textile Industry, and for China National Textile Council and continues to serve the industry in the capacity of Deputy Director of China Textile International Exchange Centre, V. President of China Knitting Industry Association, V. President of China Textile Magazine and its Editor-in-Chief for the English Version, Deputy Director of News Centre of China National Textile and Apparel Council (CNTAC), Deputy Director of International Trade Office, CNTAC, Deputy Director of China Textile Economic Research Centre. He was also elected once ACT Chair of Private Sector Consulting Committee of International Textile and Clothing Bureau (ITCB)
The Coronavirus (COVID-19) may upset the rollout of the Wrangler brand in China. Wrangler was to be launched in China in the first quarter of 2020. The brand run by Kontoor Brands accounts for 58 per cent of Kontoor’s sales. Kontoor saw an opportunity to expand Wrangler to China and had been planning a major product rollout for the country, but that has all been thrown into doubt. That means Kontoor may have to rely upon the other two planks of its growth strategy, which are brand extensions, such as getting into tops and outerwear, and new distribution channels, particularly direct to consumer. The wholesale channel, which includes sales to department stores and retailers, is still Kontoor’s biggest source of revenue, representing 85 per cent of total sales.
The US represents 73 per cent of Kontoor’s total sales, but China is seen as a big growth market, because jeans from US companies are still considered prestigious and carry a premium. For the Wrangler rollout, Kontoor had partnered with a large digital company for the effort. Last summer it had hooked up with e-commerce giant Alibaba and was using its research and development arm, Tmall Innovation Center, to design products for local customers.
In an effort to offset falling exports resulting from the virus outbreak, Vietnam will facilitate enterprises to take advantage of the free trade agreement with the European Union,
Efforts are being made to look for new markets for the country’s agricultural produce and seafood, whose exports have been hit by the epidemic. Vietnamese trade missions abroad are also required to support local enterprises to connect with foreign partners that can supply medical equipment and materials.
Several industries in Vietnam like automobile, garment, footwear and electronics are facing raw material shortages due to the outbreak in China and other countries. Vietnam’s raw material imports from China have dwindled. If the disease persists, supply and transport chains will be in trouble and in the worst case scenario manufacturing will have to stop or be delayed. So for instance leather factories may have to shut down if they can’t source the material from China. Production of rubber and plastic in Vietnam is largely dependent on China with 70 per cent of materials imported from the country. China accounts for 55 per cent of Vietnam’s fiber imports. China has shut down manufacturing in many cities to contain the virus. So textile companies in Vietnam have to tap other markets to meet production targets.
Şen Tekstil, based in Turkey, has started making antibacterial suits to be shipped to China. The factory which normally makes women’s clothing has increased production capacity with the new Coronvirus (COVID 19) outbreak and hired more workers after receiving a staggering amount of orders from China. It is producing around 5,000 units a day which are being sent to China on cargo planes. The protective antibacterial suits, which are completely airtight and disposable, are essential for medical personnel treating patients. The depreciation in the Turkish currency against other currencies has made the country’s exporters more competitive. Turkey has the advantage of being able to deal with sharper deadlines compared with the Far East. Though the Turkish textile sector has increased capacity and gone in for digital transformation, it is not out to make a profit of the Coronavirus.
The deadly virus that began in China shows no sign of slowing down as more new cases continue to pop up in countries across around the world despite efforts to stop it from spreading. The list of countries hit by the virus has climbed to nearly 60. The viral outbreak has infected more than 86,000 people worldwide, with deaths topping 2,900.
Despite a surge in the number of brands incorporating recycled materials into their products, sorted post-consumer textiles continue to struggle to find suitable end markets that preserve their highest value. The problem is accelerating consumption and disposal practices, which are causing textiles entering the market to reach their end-of-use rapidly. Key hurdles for the market readiness and uptake of such materials include the difficulty of separating fiber blends, the available textile-to-textile recycling technologies, the potential (and incentives) for further development of these technologies and the market demand for materials containing recycled content. While the recycling sector has boomed, just one third of recyclers can process more than one material composition.
Some 60 per cent of recyclers use mechanical technologies, which require color sorting and the physical removal of trims and hardware, resulting in low financial viability and poor price parity with virgin materials. As such, recycled content from post-consumer sources remains low. Most chemical recycling still remains at the pilot scale. The lack of traceability on most textiles risks reintroducing textiles into the system that could threaten product safety due to chemical contamination.
Opportunities to scale the use of recycled textiles remain manifold as evidenced in the growth of textile-to-textile recyclers and recycling technologies.
Textile and clothing exports are about 30.6 per cent of El Salvador’s total exports. The country’s textile exports are expected to grow further in 2020. Growth in export of value-added products such as jackets and socks made of synthetics are among the items that position El Salvador’s textile industry as one of the most competitive in the region. The main destinations for Salvadoran exports are the United States, Honduras, Guatemala, Mexico, Canada, the Dominican Republic and Belgium.
Many buyers who import clothing and textile products into the United States do so from China. The fact that tariffs have been applied to some Chinese textile products destined for the American market represents an opportunity for Salvadoran exporters. The most frequently exported Salvadoran textile products to the US are cotton T-shirts, men’s and boy’s undergarments synthetic fiber socks and T-shirts, and cotton sweaters and pullovers. Additional Salvadoran exports of textiles to the United States include women’s bras, synthetic fiber trousers for men and for boys, as well as synthetic fiber shorts for women and girls and cotton socks.
El Salvador has a free trade agreement with South Korea. This represents a great opportunity for further exports of textile goods to the Asian nation and also creates incentives for South Korean companies to make investments in the Central American nation.
A technical textile park will come up in Salem, Tamil Nadu. As per the state’s Chief Secretary, K Shanmugam the plan is to set up two textile parks, one in Tuticorin and Salem. The one in Salem would be for technical textiles. Technical textiles are textile material and products used for their technical performance rather than as personal clothing. They could be anything ranging from bullet proof and fire proof jackets and to sheets used in surfacing of roads and those used in medicines, such as bandages and gloves.
The technical textile market in India is growing at 12 per cent a year. The aim is to make it grow by 15 per cent to 20 per cent a year. Demand for this sector is rising due to many factors including rapid urbanisation, advances in medical technology, expansion in construction sectors, awareness on safety and environmentalism and increased spending on healthcare. Technical textiles are very significant for the growth of the entire textile industry as they are value added products manufactured primarily for technical performance and multi-functional properties with less intent on aesthetics and design. This sector is considered as a sunrise sector and it provides new opportunities to the Indian industry to have a long term sustainable future. India still has a long way to go as it currently lacks the ability to domestically fulfil the rising demand and to be globally competitive in this sector. There is untapped potential both in the export and domestic market of technical textiles.
China’s forward imported yarn market remains sluggish and the Coronavirus (COVID-19) outbreak has worsened demand for imported yarns. Weavers are gradually returning to work, especially the large scale companies. But small and medium-sized weavers are still shut down. Besides restrictions on travelling, logistics has been impacted too, with delays in deliveries, transportation, resulting in stock accumulation. Trading will be dull for some more time.
Indian exporters are burdened with stocks due to few purchases from China in the past two months, and the recent reduction in orders from Bangladesh and Egypt. Judging from the price spread between the spot and the forward, the latter is much higher than the former, and buyers may be more cautious in purchasing. Vietnamese carded 32S for airjet increased and the Indian yarn price spread dropped.
The PFY market remained largely quiet. Only some companies revised down offers, and most leading companies sustained their pre-holiday price levels. Most market players retreated to the sidelines, so transactions failed to rise apparently. Meanwhile, for the downstream market, the traditional peak season of the textile industry in March to May is anticipated to be discounted when sales of winter wear and spring wear are dragged down by the epidemic and some exporting orders are transferred.
Shanghai Fashion Week plans to collaborate with the giant Alibaba Tmall to broadcast the autumn-winter 2020 fashion shows, which have been canceled due to the coronavirus epidemic.
The online fashion week is set to take place between March 24 and 30, since the application for the online show has just begun. The alliance is, in fact, an alternative to confront the current crisis.
The online platform will broadcast the fashion show live and customers will have the opportunity to buy the collection instantly. It will also enable brands to generate more sales, and save many of them from bankruptcy.
Although this measure has been taken as a result of the health crisis in China, it may not only be sporadic. If the outcome of this initiative is good, Shanghai Fashion Week will not rule the option to incorporate this online version to its calendar as confirmed by WWD.
Karl Mayer is buying Stoll.
German company Karl Mayer the warp knitting machinery manufacturer has acquired Stoll, a flat knitting machine manufacturer also from Germany. The two long established and outstanding companies will combine forces to create a German powerhouse in the field of knitting. The alliance brings together two very strong brands in textile machinery building whose solutions portfolios and regional presence complement each other. With the acquisition, Stoll will become part of the global Karl Mayer Group, an independent family business. Stoll will benefit from the broad global positioning of Karl Mayer’s sales, service and production sites, and from the opportunities for joint development, such as in the field of digital solutions. This will enable Stoll to expand and accelerate its innovation strategy in the areas of digitalization and technology and strengthen its global presence.
Both family-owned companies can look back on a long and successful company history, and at the same time prove themselves time and again as trendsetters. In their respective market segments, they represent innovation, quality, long-term orientation, reliability and comprehensive expertise. They have complementary product portfolios and an even greater regional presence in all relevant markets. Karl Mayer is thus the only company in the textile industry to offer industry-leading solutions for the two main stitch-forming processes: knitting and warp knitting.
