FW
As per experts, the ongoing drought in wool growing regions of Australia is likely to hit supply and prices. Figures from the Bureau of Meteorology indicate the second-driest autumn in Southern Australia with rainfall 57mm (2.24in) below average. In July, less than 10mm of rain was recorded in New South Wales, prime farming territory, and ongoing dry conditions are forecast to continue.
This week, 23 per cent of New South Wales was classed as being in intense drought, while the rest was in drought or drought affected. The state produces around 25 per cent of Australia’s agricultural output. Other parts of Australia also suffered, with over half of Queensland being in drought and some areas of Victoria and South Australia also seeing dry conditions.
As per All Pakistan Textile Mills Association (APTMA), it contributes more than 50 per cent to the country's exports, i.e. over $11 billion out total annual exports of $23 billion as on 2017-18. APTMA is the premier textile industry association representing members from corporate sector and manufacturing and export of textile and clothing products
The spokesperson stated the textile industry has a potential of adding another $24 billion to exports on a fast track subject to positive policy initiatives. Various non-textile exports also pass through the hands of APTMA members. He stressed the burgeoning gap of trade deficit can only be met through devising an export-led growth policy. Therefore, those advocating for the support of domestic industry are not well wishers of the country as well as the government, as restoration of competitiveness of export-led industry is a must to regain the lost share in the international marketplace.
Already, the anti-export approach witnessed a decline of country's exports from $35 billion to $20 billion in 2016-17. Unfortunately, certain vested interests have started campaign against exporting industry, generating forex, direct and indirect employment besides backward and forward linkages.
Turkey imported 1,100 circular knitting machines in the first six months of 2018. Compared to last year, volume fell from 1,132 circular knitting machines and the value also dropped. The decline in imports was driven by overvaluation of foreign exchange rates and high interest rates.
China tops the list of the countries that exported circular knitting machines to Turkey (391 machines). The cost of these machines was valued at 11.4 million dollars. Last year, China stood second with 270 circular knitting machines at 8.4 million dollars.
Germany holds the second position with 290 circular knitting machines worth 21.5 million dollars. With 369 machines at 26.2 million dollars in 2017, Germany witnessed drops in both volume and value in the current fiscal.
Countries like Italy, Japan, Taiwan, South Korea saw major decline in machinery exports to Turkey. However, against these, the UK exported 165 circular knitting machines valued at 0.71 million dollars while last year the volume was just eleven machines worth 0.49 million dollars.
Turkey is one of the world's leading manufacturers of knitted fabrics. As Turkey’s textile exports grow, the country’s textile manufacturing companies will have to upgrade their machinery, parts and components, as well as the manufacturing processes.
Reliance Industries (RIL), as a part of RIL’s Hub Excellence Partners (HEP) Program, has partnered Arvind to manufacture co-branded R|Elan™ high performance fabrics. As a part of this partnership, Arvind will provide a high standard quality fabric and RIL will ensure timely delivery of R|Elan™ high-quality performance technologies to Arvind.
The co-branding effort re-affirms the brand’s vision to offer aesthetically pleasing, technologically advanced and, sustainable products. The R|Elan™ co-branding exercise will bolster RIL’s foothold in Rs 225,000- 250,000 crore Indian apparel industry having almost equal share of menswear and womenswear. RIL is also in the process of adopting a B-2-B-2-C approach under its Hub Excellence Programme (HEP) in which it is set to forge partnerships with textile manufacturers to provide technology for the manufacture of high performance fabrics under RElan.
RIL has partnered 32 textile players that are equipped to produce New Age fabrics using R|Elan™ technologies, it said.
American sportswear and apparel company Nike doesn’t have any plans to sign an agreement with Arnasoy Gold Tex, an Uzbek textile company, for joint production of sportswear. The Uzbek textile company had earlier announced plans to sign contracts with the world famous brands Nike and Adidas for production of sportswear. Arnasoy Gold Tex’s factory, to be launched in early 2019, will feature latest textile equipment and quality standard of ISO 9001. The company also claims to have won the support and recommendations from such world fashion houses as Zara Home Collection and Tac Home, which will allegedly allow them to manufacture products under the corresponding brands in the territory of Uzbekistan.
In March 2018, Uzbek officials had announced plans to attract international sports goods manufacturers to the new Sport Free Economic Zone (FEZ) in Tashkent region. Such renowned brands as Adidas, Reebok, Nike, Li Ning, Eleiko, Janssen-Fritsen, Gymnova, etc. had to be invited to the FEZ.
Invista has commenced the construction of its latest 300,000-ton adiponitrile (ADN) plant in China to satisfy the strong, local demand for the nylon 6,6 intermediate chemical. The plant, being built with an investment of about US$1 billion, will be completed by 2020 and production will begin in 2023.
Invista has been meeting customers and industry participants to develop a collaborative strategy focused on meeting China’s local needs for ADN, which is used to make nylon polymer, fibres and other specialty materials such as hexamethylene diisocyanate (HDI) for coatings.
Over the past five years, Invista has invested more than $600 million in China to support the nylon market, including a 215,000-tonne hexamethylenediamine (HMD) plant and a 150,000-tonne polymer plant, at the Shanghai Chemical Industry Park (SCIP). The company has also created multiple-generation improvements to the technology over the decades, recently setting production records with the deployment of its latest technology in the US.
Ethiopia is beckoning garment exporters from India.
A combination of factors seems to be attracting exporters to Ethiopia. The country provides all the infrastructure with plug and play facilities, subsidised electricity and infrastructure. The labor is cheap and significantly Ethiopia enjoys duty-free export access to both Europe and the US, two major markets for garments. From Ethiopia exporters can ship garments without duty to these two major markets.
Indian garment exporters have suffered heavily due to competition from Bangladesh and Sri Lanka, which enjoy duty-free access to Europe.
Ethiopia is specially attractive to garment exporters from Tirupur, the knitwear hub of India, as they struggle to cope with GST and withdrawal of export incentives.
SCM Garments, based in Tirupur, has opened a garment unit in Ethiopia with 500 machines and 750 workers.
Tirupur, which accounts for 46 per cent of the total knitwear garment exports from the country, saw its exports decline by eight per cent 2017-18. The first quarter of this year saw a negative growth of 14 per cent. The hope is for a better second quarter.
Some of the big textile and garment manufacturers that have gone to the African country in recent times include Raymond and Arvind.
Tukatech is known throughout the apparel industry for its personal customer service and transparent value models. Its machines for lingerie, denim and universal fabric cutting are available in custom widths and heights. These machines are designed to give the ultimate performance at the lowest running cost. Though cutting productivity is at least 20 per cent higher than other models on the market, the energy cost is 50 per cent to 70 per cent lower, which is a great benefit for users in countries where energy cost is a major consideration.
Other features include the highest productivity per hour cutting denim with zero buffer, as well as a cut path optimizer that results in 2.2 per cent to 3.6 per cent fabric savings compared to other cutting machines and helps to increase productivity. The eco-power vacuum system guarantees considerable power savings at only 5.5kw, the lowest in comparable industry cutting machines.
The new fabric cutting machines were first installed in Pakistan at Combined Fabrics, the largest supplier of knit garments to Levi’s. Before installation, the cutting room had 90 people cutting 50,000 units in a day. On the first day of installation, 14 people were able to cut the same number of units and within weeks the same configuration increased productivity to between 65,000 and 75,000 units a day.
Nylon fabric makers in the man-made fibre (MMF) sector in Surat are opposed to the recommendation by the commerce ministry’s investigation arm, Directorate General of Trade Remedies (DGAD), for imposing anti-dumping duty up to $719 per ton on import of nylon filament yarn from European Union and Vietnam. Manufacturers feel increase in anti-dumping duty will allow indigenous yarn manufacturers to monopolise prices, thereby creating problems for nylon fabric makers in Surat and other parts of the country.
Surat’s textile industry, which contributes 40 per cent of the man-made fibre demand, has more than 6.5 lakh powerloom machines weaving about 3 crore meters of cloth per day with the annual consumption of 6 lakh metric tonnes of different types of yarns and fibres. Yarns and fibres, including nylon filament yarn (NFY), polyester filament yarn (PFY), polyester yarn (POY), viscose filament yarn (VFY) etc. manufactured in Vietnam and EU are 20 per cent cheaper than the ones made by domestic players.
Following imposition of anti-dumping duty, domestic manufacturers of yarns and fibres will get a free hand to increase prices, especially when demand increases from local market.
Europe’s foreign trade association Amfori has said India and the European Union should focus on resolving differences over three crucial issues if they want to break the deadlock on long stalled free trade pact. The talks should initially focus on India’s demand for a liberal visa regime for its nurses, a relaxed geographical indications regime and duty cuts on its textile exports.
EU’s insistence on India committing to sustainability norms is one of the sticking points as Delhi is against the inclusion of non-trade issues such as environment and labour in its trade pacts. The EU now asks for trade and sustainability chapters in all its trade pacts and that is among the five areas of contention between the two sides.
India exported merchandise worth $53.5 billion to the EU in 2017-18 while it imported $47.8 billion worth of goods from the trade bloc. Besides Brexit, the other cause of slow movement on the Bilateral Trade and Investment Agreement (BTIA) is the EU’s involvement in free trade agreements with other countries, including some in Asia such as the Philippines. The EU’s apprehension to sign a BTIA separate from the Bilateral Investment Treaty (BIT) with India has further added to the delay.
