Textination Newsline

• Production and Exports on a recreation Course
• Investments in Capacity and Modernization

Taipei (GTAI) - Taiwanese textile and clothing manufacturers see improved sales prospects in 2017 and 2018, following a weak development in the previous year. With its range of functional textiles in particular, the country occupies a position of great importance throughout the world. In order to maintain competitiveness, the sector companies invest in new equipment and product innovations. One of the most important machine suppliers is, among others, Germany in third place behind China and Japan.

Taiwan's textile industry is looking more optimistically on business performance in the current year as well as for 2018. This is attributable to the high level of consumer spending in the most important sales markets, price increases and major international sports events such as the FIFA World Cup and the Winter Olympics in South Korea. The island is the world's leading supplier of functional textiles used in sports and outdoor clothing.

According to the Taiwan Textile Research Institute, this textile sector accounts for about 50 percent of the world's production value of functional textiles. In order to maintain this position, the manufacturers are investing in capacity expansion, new technologies and the development of innovative textiles, while focusing on the diversification at production sites.

Production is recovering

Despite shrinking production development, the number of companies in the textile and clothing industry has risen over the last few years and, according to the Taiwan Textile Federation, at the end of 2016 to 4,361 companies. Of these, 3,205 (2015: 3,163) belonged to the textile segment and 1,156 (2015: 1,144) to the garment sector. The number of employees however is declining, as companies invest in automation.

According to the Ministry of Economic Affairs the production value of the sector fell by 5.9 per cent in 2016 over 2015. The development in the first half of 2017 however indicated that the weakness phase is declining. In particular textile production, which represents the most important area, showed signs of recovery. Here a more efficient utilization in the second half of the year was expected, as inventories are declining and orders are rising.

On the other hand the production of clothing and accessories and the production of synthetic fibers and yarns have shown a further shrinking trend in the recent years. Most of the industrial companies have moved their production towards abroad. At the end of the first half of 2017 the clothing segment accounted for only 4.9 percent of the total apparel segment.

Rising foreign trade expected

Export development also offers a better outlook. According to figures for the first six months of 2017 the export value of the textile and clothing sector shrank by only 0.3 per cent. For the full year 2016 the Taiwan Textile Federation statistics show a decline of 8.3% to USD 9.9 billion. The exports of textiles reached a value of USD 6.7 billion.

Exports of textiles and clothing are three times higher than imports. While exports are dominated by textile products with a share of 68%, imports of clothing accounts for 55%. Imports of textiles in 2016 were worth only about USD 427 Million.

According to the reports of at the stock market listed companies, it looks good on the orders received from existing as well as from new customers. As a result, the capacities are expanded, as at the Far Eastern New Century. The company is looking above all at Vietnam, where USD 760 million will be invested in the expansion of a supply chain for textiles and clothing over the next three years.

Other manufacturers such as Eclat and Makalot are also expanding their activities in Vietnam. It also will be invested in Taiwan, where, for example, Eclat Textile wants to spend between USD 26 million and USD 33 million to build new facilities for digital textile products. Makalot Industrial has announced plans to create smart production lines in Vietnam and Taiwan to increase efficiency.

With Shinkong Synthetic Fibers, another large textile producer on the island, wants to expand production. The company plans to increase the production of artificial fibers during 2018 from 50,000 tons to 110,000 tons. This is to serve orders from European and Japanese customers from the automotive sector.

Finishing equipment imports show little dynamics

The investment activities and plans of the textile and clothing manufacturers are expected to lead to increasing finishing equipment imports and exports. However, imports of textile machinery show an overall decline in the first six months of 2017. Only China and Japan, the most important suppliers, were able to boast high growth rates. Germany, the third largest supplier, was much less successful.

In the first six months of 2017, textile machine exports rose by 7.5 percent to USD 543 million. It is mainly supplied to the overseas production plants in China and Vietnam, to where in this period about USD 111 million was exported. At the third place follow the USA with USD 40 million.

• Sales are increasing since four years
• Developing of up new markets abroad

Prague (GTAI) - Czech textile and clothing manufacturers are among the winners of the good economic situation. The trend towards domestic products and the rising purchasing power are inspiring the companies. At the same time they benefit from a growing demand from abroad. According to the association ATOK the turnover of the sector rose to Kc 53,5 billion (just under EUR 2 billion) in 2016. It was the fourth year of growth in a row.

An important growth driver of the Czech textile industry is the automotive sector. The largest sales are achieved with technical textiles, and these are mostly used in the over 1.3 million passenger cars, which are rolling in the Czech Republic off the assembly lines every year. The German automotive supplier Borgers is therefore the second largest textile manufacturer in the country. The company produces textile trims for trunks, passenger compartments or underfloor at four locations in the Plzen region. About 200,000 parts leave the factory every day for VW, BMW, Mercedes, Porsche, Bentley and Rolls Royce. The largest textile company in 2016 was the company Juta with productions of geotextiles, insulation materials and packaging material.

The positive dynamism of textile manufacturers is continuing in 2017. According to statistics from January to May the production index rose by 3% and the value of new orders even rose by 5%. On the other hand the garment manufacturers have to announce sales reductions following the strong year before. Future growth could be curbed by rising wages, the appreciation of the national currency and a lack of staff.

Sources: Association of the Textile, Garment and Leather Industry (ATOK), Calculations by Germany Trade & Invest

Even more dynamically than the sector's profits the foreign trade has developed in 2016. Since the Czech Republic is being used as a transit and logistics location by international trading companies, the volume of exports is significantly higher than the total turnover of the domestic manufacturers. According to the ATOK association, in 2016 textiles were exported for Kc 63.8 billion (EUR 2.36 billion) and clothing for Kc 47.2 billion (EUR 1.74 billion). This was an increase of 5% for textiles and 31% for clothing. Import of textiles rose by 6% to Ks 59.3 billion (EUR 2.19 billion), import of garment rose by 20% to Kc 67.9 billion (EUR 2.51 billion).

This has somewhat reduced the trade deficit in clothing. In the major fashion chains however foreign goods still dominate. Czech vendors have little chance of coming to the shelves and taking part in the fast fashion cycles and fast fashion changes. The association ATOK estimates that they have a market share of a maximum of 20% in clothing retailing. As a result, domestic manufacturers are increasingly focusing on direct selling, either via internet shops or through their own sales outlets. They also strengthen the building of their own brands, after having carried out commission work for international fashion groups for many years. Customized products are in the trend also. Some companies that have hitherto mainly served the home market are now looking increasingly at foreign markets. The swimwear and underwear producer Timo from Litomerice, for example, wants to supply to Germany also in the future, reported by the economic newspaper Hospodarske noviny.

Textile companies invest more and more abroad
The East Bohemian specialist for bathroom textiles, Grund, already has a sales company in Lower Saxony. The carpet manufacturer is now planning to build a factory in the south of the USA and intends to invest more than USD 1 million. Silon from South Bohemia, which is one of the largest manufacturers of polyester fibers in Europe, is building a manufacturing plant for plastic compounding in the USA in order to reduce the delivery time for raw materials and to be closer to the customer. There are interesting developments in the research area. The institute VUTS from Liberec, has developed, together with Taiwanese scientists, a pneumatic loom that can produce 3D fabrics made of high-strength polyester silk. The material can be used for boat building or flood protection. The machine should be presented for the first time at a trade fair in 2019. Until then the textile manufacturer Veba from Broumov wants to have developed a new 3D fabric. It is intended to reinforce matrices.

After the extra economy in 2015 due to the last-time levy of EU funds from the old funding period, investments in the textile industry had shrunk in 2016. According to the Ministry of Economic Affairs the manufacturers invested some Kc 2.78 billion (around EUR 100 million), a sixth less than in the previous year. On the other hand, investments in the garment sector were up by a quarter to over Kc 850 million (around EUR 31 million). The development was also reflected in the import figures for textile machines. At the beginning of the year 2017 imports rose again in some product groups, thus opening up sales opportunities for finishing manufacturers. German suppliers account for roughly half of the machinery supply for the textile industry.

In April 2017 the Moravian nonwoven fabric manufacturer Retex had issued a tender for a production plant for over EUR 7 million. In Zatec near Usti nad Labem Unifrax wants to build a production plant for silicate fabrics. Juta is currently investing around EUR 13 million in the production of grids and plans to get the plant expansion at Dvur Kralove into operation in autumn 2017. The Japanese Toray Textiles is expanding its factory for airbag fabrics and printing plates in Prostejov over the next four years. The North Moravian supplier of outdoor clothing, Tilak, is also expanding its production facilities in Sumperk.

Source: Czech Statistical Office

• Low interest rates and government subsidies should drive consumption and Investments
• Less start-ups and fewer direct foreign investment

Istanbul (GTAI) - After the failed coup attempt of July 15th 2016 the Turkish government wants to support the economy. Financial relief, government subsidies and a low interest rate policy should aim strengthening of consumption and investment and eliminate the arisen uncertainty in the business world. At the same time the overall savings ratio should be increased and the basis for financing of major infrastructure projects be improved.

The target of the government for an economic growth of 4.5% in 2016 appears now as no longer realistic. After the impressive increase of 4.8% in Q1 2016 government representatives expect for the rest of the year lower numbers, so that for the full year 2016 a growth of around 3.0 to 3.5% could be achieved.

But not only the failed coup attempt and subsequent the internal political turmoil are affecting the economic development. Also the in the recent months clearly increased geopolitical risks, the armed conflicts along the southeastern border with Syria and Iraq, and the threat of terrorist attacks are pressing on the business climate.

The number of start-ups is declining since April 2016th. According to the Turkish Chamber Union TOBB (Türkiye Odalar ve Borsalar Birligi) in July a provisional low point with a decline of about 34% over the same month of last year has been reached.

Source: Turkish Union of Chambers of Commerce TOBB (http://www.tobb.org.tr)

"Tailored" state support for Investors

Despite a rising inflation (annual increase of consumer prices in late July 2016: 8.8%) since several months the Turkish Central Bank is lowering the interest rates in small steps and ensures an increasing liquidity. For investors the government is planning generous subsidies. In the words of economy minister Nihat Zeybekci the government investment promotion is standing before fundamental changes. The plan includes "unlimited, customized and project-based" facilitations for specific sectors, which will go far beyond current incentives.

In this context Zeybekci named metallurgy, petrochemical, pharmaceutical and medical technology, in addition the renewable energy and modern agricultural technologies. In addition to extensive tax breaks the planned state aids will also include subsidizing the salaries of highly skilled employees, a free allocation of land, subsidies of taxes and energy subsidies. With this especially international investors should be won and high technology projects should become supported.

Foreign direct investments slumped in the first half year of 2016

According to the Turkish Ministry of Economy foreign direct investment declined in the 1st half of 2016 compared with the same period of last year by 55%. In 2015 a net amount of USD 16.9 billion flowed into Turkey, and in 2014 approximately USD 12.5 billion. Of these USD 5.3 billion or resp. USD 4.2 billion were invested in real estate.

Source: Turkish Ministry of Economy (Ekonomi Bakanligi, http://www.ekonomi.gov.tr)

State fund to finance infrastructure projects established

Of particular importance for the future financing of large infrastructure projects, especially in the transportation sector, is the law No. 6741 of  08  /19th / 2016, establishing the Turkey-Property Fund (Türkiye Varlik fonu - Sovereign Wealth Fund). The law, which was announced in the government Gazette No. 29813 on 08 / 26th /2016 regulates the structure and operational rules of the new fund, which originally was to be filled from the state budget and privatization proceeds and should have started with an initial capital of TL 50 million. The law provides the establishment of a stock corporation that will be responsible for investments, stakes and other commitments of the fund. The financial market operations of the fund are according to paragraph 8 of the law 6741largely exempt from taxes and fees.

From the new Turkey-Fund the government expects major funding contributions for ongoing and upcoming major projects. These include the third international airport in Istanbul and the planned "Canal Istanbul", which will run parallel to the Bosporus. Expected to the ideas of the government the fund should bring an annual contribution of 1.5 percentage points to the real GDP growth over the next ten years. Economy Minister Zeybekci expects through the fund in the long term an asset control of about USD 200 billion.

Debts to the State can be paid by installments

Companies that are under financial pressure should be relieved by the law no. 6736 for the restructuring of public demands from March 8th 2016. This came in force after the publication in the government Gazette no. 29806 of August 19th 2016. With this law firms and persons, which have debts at the tax office or at social security institutions, can get the possibility to settle their outstanding claims, including failure surcharges by installments within 18 months. On claims up to TL 50 (1 Euro = 3.31 TL) the state will entirely dispense. The redemption of debt from tourism enterprises, which are due in2016, will in accordance to the law shifted by one year.

The private retirement provision for all workers should increase the savings rate 

In order to increase the country's low savings rate, the Turkish government has adopted the law no. 6740 on August 10th 201616, which gets into force on January 1st 2017 (promulgated in the government Gazette No. 29812 on August 25th 2016). With this law, changing the law no. 4632 of March 28th 2001 about the voluntary private retirement provision all workers aged less than 45 years and of Turkish nationality will in the future "automatically" be included in the system of the private pensions system. Affected employees however have the right, within two months from the inclusion date to declare their abandonment and leave the system.

JEC World, the largest international composites show, opened at the new Paris Nord Villepinte venue for the first time. Its content, design and scenery were the object of much admiration. New records have been reached this year, with a total surface of 62,000 sqm, 1,300 exhibitors and 36,946 professional visits in attendance. One of the show’s new features consisted of the “Planets”, four new display areas totalling  more than 1,800 sqm.

A World of Difference
JEC Group presents composites in a completely different style
According to JEC Group President and CEO Mrs Frédérique Mutel, the unanimous reaction to the show was pride in the composites industry and delight at JEC Group’s showcasing of it. “The JEC teams have indeed done a wonderful job at presenting composites to the world in the most impressive way,” she said. “An enormous range of products and technologies were presented, shared and showcased at JEC World 2016. Composite materials continue to become more widespread. In a world where energy savings and recyclability are sought, composites seem to stand out as one of the best answers. Innovative solutions must be found for current and upcoming challenges in terms of higher performance, lower weight, reduced costs and processing time, and of course, addressing the pressing matters of environmental concerns.”

This year’s event also featured the launch of four Innovation Planets, each one addressing a specific end-user market (the Aero Planet, the Auto Planet sponsored by Hexion, the Sports Planet and the Sustainable Planet). These areas were very popular ones, where attendees could see, touch and experience Innovative composite parts, observe demos, and ask questions about the innovations.

New name, new venue for the comfort of all attendees
To truly reflect the global dimension of the exhibition, which included participants from more than 100 countries, the event has taken on a more suitable name, “JEC World”. For the convenience of exhibitors and visitors, it has also moved northward from the southern part of Paris, in order to be closer to Paris Charles de Gaulle Airport, train stations and many other connecting opportunities. The total surface has
increased to 62,000 sqm, offering visitors and exhibitors a bigger show with enhanced features to improve the visiting experience. These include a new mobile application, Internet connections on the entire floor, a concierge service open to all, and digital touch screens.

High-level content delivered by JEC Expertise
Over the three days, participants were able to gather a wealth of information from the 11 top-notch conferences, some of them organized in partnership with Inovev, Cetim, e-Xstream, Stanford University, Onera, Composites Innovation Cluster, AZL and Dassault Systemes. The 30 technical sales presentations and the 40+ presentations on the “Planets” also covered a vast range of current and future composite topics.

A large delegation of Korean visitors and exhibitors showed up to proudly represent the Republic of Korea, the event’s Country of Honour. They showcased their latest advances, particularly in carbon, proving to the world that they have become a key player in the composite industry.

Other noteworthy events included the JEC Innovation Awards with its 29 prizewinners; the Automotive Composites Circle; the Live-Demo zones; the Composites in Action areas; and the 1,950 B2B Meetings that were organized.

The popularity of the event keeps on growing, which is very encouraging for next year’s session. Many exhibitors have already confirmed their participation.

SAVE THE DATE
JEC WORLD 2017 - Paris Nord Villepinte
March 14-16, 2017
More information: www.jeccomposites.com

• 2015 Sales reached eight-year high
• Particularly manufacturers of technical textiles successful

Prague (gtai) - The Czech textile and clothing industry is still on the upswing. Particularly in niche segments and with technical textiles the manufacturers achieve rising revenues since years. The investment climate in the sector therefore has been improved, the equipment suppliers are benefitting. German manufacturers of machinery for the textile and clothing industry were able to expand their exports to the Czech Republic in 2015 by one fifth.

With Czech Crowns 52.4 billion (Kc; EUR 1.9 bn) the Czech textile industry achieved so much revenue in 2015 as not anymore in the last eight years. According to the statistics office the clothing manufacturers output rose by 11%, that of textile manufacturing by 3%. Very good filled are the order books. For companies in the clothing industry the volume of new orders rose by over 13% in 2015, in the textile factories
by 4%.

According to the announcement of the professional association ATOK, the sector would have developed even better, if the growth markets in Asia and Africa would have not weakened. But fortunately the loss became offset by the traditional markets Germany, Italy, Poland, Slovakia, Austria and France. According to ATOK the textile segment of the Czech Republic exported goods worth equivalent of almost EUR 2.5 billion in 2015, corresponding to a trade surplus of almost EUR 30 million. In clothing, the country recorded a negative balance. Here goods were imported for Euro 2 billion and exported of EUR 1.3 Billion.

Source: Association of Textile, Garment and Leather Industry (ATOK, http://www.atok.cz)

Particularly in niche segments the clothing manufacturers can maintain themselves in their position. For example Triola from the northern Bohemia Horni Jiretin specializes in lingerie and successfully with oversizes. Also manufacturers like Timo, Pleas, Upavan or Linia can exist with underwear products on the market. According to reports from the business paper Hospodarske noviny Timo sells 200.000 pc. per year. The company offers among others prosthetic lingerie against breat tumors.In the next two years the family operation will invest more than EUR 700,000 in new technologies at the production site Litomerice (North Bohemia).

Hats and hoods are demanded in 30 countries

Another family company, Kama from Prague, specializes in headwear. With hats, scarves, headbands, gloves or hoods it makes now more than EUR 1 million per year and delivers to 30 countries. In Moravia-Silesia Sky Paragliders from Frydlant nad Ostravici invests around EUR 4 million in a weaving mill including a research center to develop new materials. The company produces emergency parachutes and rescue systems and belongs with annual revenues of EUR 2.7 million (2014) to the top ten manufacturers worldwide. It processes 200 kilometers of fabrics annually.

Thanks to favorable wages and the proximity to areas with good purchasing power smaller suppliers of made to measure products developed well. The company Janek from Roznov in Zlin produces,for example, 30,000 individually tailored shirts per year. Also suits and costumes belong to the assortment. Janes buy the yarn from a German yarn manufacturer which produces in the Czech Republic.

1) Change 2014 / 113 in%; 2) Fiscal year October 2012, 2013 till September 2013, 2014; 3) December 2012, 2013 till November 2013, 2014; 4) April 2013, 2014 till March 2014, 2015
Sources: Annual company reports, Trade register, Hospodarske noviny, Magazine Ekonom, CzechInvest, Association ATOK

The most actively trading companies in the textile sector are producing mostly for industrial consumers. Largest industry representative is the automotive supplier Borgers from Bocholt, which produces textile moldings, paneling, insulation and curtains for vehicles at four locations near Plzen. The second largest textile company Juta achieves half of its revenue from construction materials such as drainage mats, erosion control fabric or roof insulation. Moreover Juta makes a good business with packaging nets for potatoes or Christmas trees. One other growth area is artificial turf. The company invests nearly EUR 20 million every year, mainly in new production equipment.

Textile Machinery ordered for 250 m Euro

Other companies are expanding too. The manufacturer of workwear Waibel has expanded its site in2015. In Zdar nad Sazavou near Jihlava own collections and custom made programs are being manufactured. Clothing manufacturer Pleas invests annually over EUR 1 million in its equipment. The company belongs to the top 10 of the sector and produces annually 15 million pieces nightwear for the brands Schiesser and Pleas. The German machinery manufacturer Mayer & Cie. builds a factory for knitting machines in Vsetin. The production is expected to comence in summer 2016. The machines are designed for large manufactures particularly in Asia.

Source: Czech Statistical Office