The Fiber Year 2009/10 A World Survey on Textile and

Transcription

Issue 10 – May 2010
The Fiber Year 2009/10
A World Survey on Textile
and Nonwovens Industry
Dear Readers,
After an historic downturn trend in the textile industry never experienced before, along with the
global recession, we are now confidently looking forward to the near future.
To start with, the manmade fibres plant markets picked up considerably in the second half of
2009. The economic stimulus packages started to kick in, most importantly in our Asian market
where the effect released investment for the future.
Thomas Babacan
In addition, Oerlikon Textile was already registering an increase in demand for our high-tech
components during this period. This clear trend signalled that spinning mills around the globe
are cranking up their production to meet an ever increasing demand. By the end of 2009, this
positive trend also extended into other areas of technology offered by Oerlikon Textile. This
upturn helped Oerlikon to record a marked increase in orders for systems from staple fibre yarn
to BCF carpet yarn by the start of 2010.
CEO Oerlikon Textile and
Chief Operating Officer,
OC Oerlikon Management
AG, Pfäffikon/Switzerland
We have made good use of the difficult global economic downturn that hit us all hard but has
left us best placed to emerge re-invigorated from the crisis. We have maintained our investment
in research and development that compares with the steady level seen through the boom year of
2007 and in some cases Oerlikon Textile has even managed to increase it. We will present the
results of our commitments by innovating successively to the market in 2010 and 2011 through
new, highly efficient products that we will launch.
We are convinced that with Oerlikon Textile’s leading innovations we have been able to
anticipate the needs of our customers much better than we ever did in the past. We want to
inspire all our customers to achieve another substantial increase in added value for their own
companies as well as contributing to the protection of the environment. Through investing in
new technologies, the new developments are subject to the e-save energy efficiency programme,
by ensuring a significant reduction in energy consumption compared with rival machines and
preceding models.
Oelikon’s path has been set for the future. You can continue to rely on Oerlikon Textile and its
five business units Oerlikon Barmag, Oerlikon Neumag, Oerlikon Saurer, Oerlikon Schlafhorst
and Oerlikon Textile Components as a responsible, dependable, innovative and forward looking
partner to the textile industry.
Yours sincerely,
Thomas Babacan
CEO Oerlikon Textile and
Chief Operating Officer,
OC Oerlikon Management AG,
Pfäffikon/Switzerland
Foreword
The information in this report is mainly based on the global network and in-house experience.
Special thanks go to all companies and institutions below mentioned for their precious
contribution.
ABRAFAS
International Federation of Organic Agriculture Movements
Airbus S.A.S.
International Wool Textile Organisation (IWTO)
All Pakistan Textile Mills Association (Punjab Zone)
Japan Chemical Fibers Association
Asian Development Bank
Lenzing AG
Association of the Nonwoven Fabrics Industry
Malaysia Trade and Industry Portal
Autoliv Inc.
Malaysian Textile Manufacturers Association
Bangladesh Garments Manufacturers and Exporters Ass.
Mexican Clothing Industry (CNIV)
Bangladesh Textile Mills Association
Ministry of Economic Affairs, R.O.C.
Bank of Thailand
Ministry of Textiles (India)
Better Factories Cambodia
Ministry of Economy, Trade an Industry (Japan)
Boeing Co.
National Bureau of Statistics of China
Brazilian Textile and Apparel Industry Ass. (ABIT)
National Council of Textile Organizations (NCTO)
Camara Industrial Argentina de la Indumentaria
National Society of Industries (SNI)
Central Bank of the Republic of Turkey
OPEC
China Chemical Fibers Association
Organic Exchange
China Chemical Fiber Economic Information Network
Polyamide High Performance GmbH
China Cotton Textile Association
Polyester High Performance GmbH
China Nonwovens & Industrial Textiles Association
Proexport Colombia
China Textile Information Center
Spinners & Weavers Association of Korea
Dralon GmbH
State Committee of the Republic of Uzbekistan
EDANA
Taiwan Textile Research Institute
Federal Bureau of Statistics (Pakistan)
The World Bank Group
Fiber Economics Bureau
Trevira GmbH
Food and Agriculture Organization of the United Nations
Turkey State Institute of Statistics
General Aviation Manufacturers Association
Turkish Clothing Manufacturers Association
German Association of the Automotive Industry (VDA)
United Nations Conference on Trade and Development
Global Organic Textile Standard (GOTS)
United States Agency for International Development
Global Wind Energy Council
United States Department of Agriculture
Hexcel Corp.
United States Department of Commerce
INDA
U.S. Census Bureau
Indonesian Synthetic Fiber Makers Association
Vietnam Textile Association (Vitas)
International Cotton Advisory Committee (ICAC)
World Trade Organization
© OC Oerlikon Corporation AG, Pfäffikon 2010 The content of this report is protected by
copyright. Oerlikon permits recipients of this report to make copies of Oerlikon’s copyright
material in this report for their own use. Further distribution and/or publication is permitted
provided that the source is acknowledged and no changes to the content are made. However,
Oerlikon reserves the right to withdraw any of these permissions in relation to any particular
user at any time.
The information provided in this report has been investigated and compiled with reasonable
care. However, the information is provided “as is” without warranties of any kind, expressed or
implied, including accuracy, timeliness and completeness.
The Fiber Year 2009 / 10
03
Table of contents
1.
Fiber Year 2009/10 celebrates tenth anniversary.............................................................05
2.
World Economic Outlook 2010/2011...................................................................................09
3.
3.1
3.2
3.3
Raw Material Industry...........................................................................................................012
Cotton......................................................................................................................................012
Wool..........................................................................................................................................016
Crude Oil.................................................................................................................................019
4.
Fiber Consumption in 2009.................................................................................................021
5.
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
Manmade Filament Yarn and Staple Fibers......................................................................023
Polyester.................................................................................................................................025
Polyamide................................................................................................................................029
Polypropylene.........................................................................................................................033
Acrylic......................................................................................................................................034
Cellulosics...............................................................................................................................035
Carbon Fibers.........................................................................................................................038
Aramids....................................................................................................................................040
Spandex Yarns........................................................................................................................041
6.
Spun Yarn................................................................................................................................042
7.
Organic Textiles.....................................................................................................................078
8.
Nonwovens and Other Unspun End-Uses.........................................................................083
9.
Statistical Appendix..............................................................................................................088
“The Fiber Year 2009/10” is the tenth issue to describe in detail developments in the
world’s manmade fiber, spun yarn and nonwovens industry. Its target is to provide a
comprehensive picture on the textile industry. Statistical information is instrumental in
achieving an overall impression and inevitable to disclose the story behind the figures.
However, it cannot explain the fundamental changes that have been taking place, as
politics explain much activity in this industry today and have consequences far beyond the
boundaries of the industry.
For further information:
Andreas Engelhardt
Oerlikon Saurer Arbon Ltd.
Textilstrasse 2
CH-9320 Arbon
Tel. +41 - 71 - 447 51 89; Cell. +41 79 571 34 33
[email protected] or [email protected]
04
The Fiber Year 2009/ 10
1. Fiber Year 2009/10
celebrates tenth anniversary
The report “The Fiber Year” is the next generation of a service that the Dutch manmade
fiber manufacturer Akzo had provided for more than three decades. It started under
the umbrella of Saurer AG. Since 2007, Saurer AG has been integrated into OC Oerlikon
Corporation AG, Pfäffikon.
“Despite a 4.2% growing fiber demand in 2009,
textile industry has lost a volume in the last two
years of more than 15 million tonnes. Leading
exporters of textiles and clothing have lost a
volume of almost US$40 billion last year.”
Andreas Engelhardt
Senior Manager
Oerlikon Textile International
Business, Arbon
Switzerland
www.oerlikontextile.com
Ten years of reporting about the world textile industry have come along with several memorable,
headline events. The past decade will be briefly summarized.
World Fibers Supply
80
70
mill. tonnes
60
50
40
30
20
10
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Manmade Fiber
Cotton/Wool/Silk
05
The global supply of manmade fibers and major natural fibers has increased from 52.6 million
tonnes in 2000 to 70.5 million tonnes last year. This corresponds to an average annual growth
rate of 3.3%. During that period, the share of manmade fibers managed to increase from 59%
to 63%.
Although the fiber growth rate had outpaced the growth momentum of population, accounting
for an average annual growth rate of almost 1.2%, the financial crisis has left its mark and is
still taking their toll on manufacturers, brands and retailers. Even before Lehman Brothers, the
U.S.’ fourth biggest bank, collapsed, plummeting consumer confidence and depressed clothing
retail sales in the United States had negatively impacted the global textile and fashion sector.
The entire textile and apparel industry has lost a huge processing volume in the last two years
of between 15 and 19 million tonnes. The below chart shows the trend in U.S.’ clothing sales,
already worsening at the turn of the year 2007. Clothing expenditure in the United States
dropped from US$734 per capita in 2007 to US$679 in 2009. This has resulted in a sharp
reduction of textile and clothing imports into the United States, falling from US$96.4 billion in
2007 to US$81.0 billion last year.
U.S. Monthly Retail Sales: Clothing & Clothing Accessories Stores
15%
12%
Change Y-O-Y in %
9%
6%
3%
0%
-3%
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
-6%
-9%
-12%
-15%
* Sales not adjusted for seasonal variations, holiday and trading-day in clothing and clothing accessories stores
The entire market was mainly driven by manmade fibers, of which synthetics enjoyed an
average annual growth rate of 4.0% and cellulosic achieved a 3.6% growth rate. On the other
hand, natural fibers just provided below-average rates. In particular, wool has declined to levels
from the 1950s. Cotton has benefited from increasing approval and cultivation of genetically
modified crops, lifting cotton yields from 600 kg per hectare in 2000 by more than 20% to 730
kg in the actual season.
Fiber Growth Rates 2000 - 2009
6%
4%
2%
0%
Cotton: +2.6%
25.2m tonnes
-2%
-4%
06
Cellulosics: +3.6%
3.8m tonnes
Wool: -2.2%
1.1m tonnes
Synthetics: +4.0%
40.3m tonnes
The Chinese industry has drastically increased its manufacturing volumes, surging by 16.3%
to 26.3 million tonnes manmade fibers and by 12.2% to 18.5 million tonnes cotton yarn. This
stunning growth has led to a global market share of about 60% in both sectors. In general, market
forces have drastically changed in favor of Asian low-cost countries. India has also enhanced
its position along the textile chain like several other Asian countries. Pakistan’s growth was
limited to the cotton industry, on smaller scale in Bangladesh and Syria as well. Meanwhile, the
cotton and manmade fiber industry in Vietnam has been benefiting from foreign investments,
mainly from Taiwan.
Manmade Fiber Production 2000 vs 2009
30
mill. tonnes
25
20
15
10
5
0
PR China
USA
India
Taiwan
Korea
ROW
Pakistan
Turkey
ROW
2000
2009
Cotton Yarn Production 2000 vs 2009
20
mill. tonnes
15
10
5
0
PR China
Indila
USA
2000
2009
The defining moment for apparel sourcing happened on December 31, 2004, when quotas
between member countries of the World Trade Organization (WTO) were lifted. Even the
limited in time imposition of special textile safeguard provisions by the United States and the
European Union could not prevent surging shipments from PR China. In contrast, the developed
countries have increasingly relied on textile and apparel imports from Asia. Last year’s leading
exporters of textiles and clothing are shown below.
07
Top Ten Textile and Clothing Exporters
200
-7.4%
US$ billion
150
100
-18.3%
50
0
China
EU(27)
-13.4%
HK
-4.3%
India
-18.7% -16.0%
+15..4% -12.6%
Turkey
USA
-9.6% -14.3%
Bangl. S. Korea Pakistan Taiwan
2008
2009
The past decade has already witnessean ecological clean-up and development plan in an attempt
to cope with the growing consumers’ demand summarized in the buzzword “sustainability”.
The use of pesticide and herbicide in cotton, the usage of chemicals in manmade fibers and the
composition of textile dyes have increasingly come under scrutiny. As organic cotton actually
accounts for 0.8% of global cotton production, the consistent conversion still seems to be a long
way off. Mainstream consumers are demanding that clothes are sourced ethically and within
labor standards. A growing number of people want their clothing produced close to home,
reflecting the far flung transport chain that links the value chain together. An average consumer,
however, appears to be overextended in the tangle of labels. The introduction of the Global
Organic Textile Standard (GOTS) in 2006 may be promising “with the aim to define worldwide recognised requirements that ensure organic status of textiles, from harvesting of the raw
materials, through environmentally and socially responsible manufacturing up to labelling in
order to provide credible assurance to the consumer.”
08
2. World Economic Outlook
2010/2011
“World trade is the motor of the world economy. Following the dramatic downturn
in winter 2008/2009, when the collapse of Lehman Brothers was sending the global
economy into the abyss, world trade contracted by one-fifth and many of the big
national economies experienced their most pronounced recession since World War II.
Even countries and regions that had no direct exposure to the financial crisis – such
as China, Japan and Eastern Europe – suffered from an abrupt cyclical downturn. The
global economy plunged into its most dramatic post-war crisis.
“World economy seems to be recovering from
the slump in almost as synchronized a manner
as it experienced the downturn, but the obvious
risk to the cyclical improvement is the probable
exit from expansionary monetary and fiscal
policy.”
Prof. Norbert Walter
former chief economist of Deutsche
Bank from 1990 to 2009
Managing Director and Founder of
Walter & Daughters Consult, Bad Soden
Germany
www.walterundtoechter.de
On a historical comparison, this synchronized decline into a deep recession is unique.
During the Asian crisis of 1997 and during the recession at the turn of the 1990s, a
number of countries, and even regions, were not part of the downturn and thus were
factors in pulling the world economy out of recession. This time, particularly in winter
2008/2009, none of the major nations in the global economy escaped the downturn.
It is no surprise that the textile industry had no chance of escaping the crisis. In
Germany, textile production plunged a dramatic 18% in 2009. Much of the domestic
demand for textiles can easily be postponed (purchase of carpets or other textiles
used in households). Technical textiles fell of the cliff, as did manufacturing output
in general. On top of this, the decade-long trend of offshoring production continued
unabated.
The German clothing industry is not very cyclical. Structural problems continue to
dominate development. The bulk of production facilities have already been relocated
to foreign countries, mainly as a result of their much more favourable wage costs.
Such a set-up with production mainly in low-wage countries and value-added functions
retained domestically in a mature and rich country made German companies quite
successful in a liberalized global market.”
09
International recovery synchronized?
The world economy seems to be recovering from the slump in almost as synchronized a manner
as it experienced the downturn. Practically everywhere the downturn in production and demand
is coming to an end. Almost everywhere an increase in economic activity can be observed.
Quite a number of banks are back in the black. Asia’s factories are beginning to run red hot
and even the US, the epicentre of the crisis, is posting impressive rates of GDP growth. In most
European countries, too, the recession is over, and some can see a silver lining.
Reasons for the recovery.
The subprime crisis and particularly the collapse of Lehman Brothers have made central banks
exceptionally willing to provide emergency liquidity in unknown quantity and at almost zero
cost. Conditions for the quality of collateral have been watered down to unknown minima. This
willingness has averted systemic difficulties and provided cheap finance, thus helping to rescue
banks and making corporate financing affordable. This has made a major contribution to the
soft landing.
Since this crisis was not just a liquidity crisis, but a solvency crisis as well, Keynesian fiscal
stimulus plus industrial policy by governments to bail out ailing firms were important elements
of the rescue operations. The G20 have allowed their deficits to soar by some USD 1500
billion. This has promoted public infrastructure investment and has bolstered private demand
via temporary tax cuts.
Most impressive was the V-shaped recovery in much of Asia (ex Japan). China, which was
not directly hit by the financial crisis in the first place, implemented gigantic fiscal packages
(amounting to at least 15% of its GDP) that not only propped up domestic demand but also
gave a considerable boost to intra-Asian trade. As a result by the end of 2009 exports from
countries such as Singapore, Indonesia, Malaysia, Taiwan and even Japan were already growing
at double-digit rates. This helped to offset the weak demand from other continents. Asia’s good
recovery served as a locomotive for the world economy.
Is the recovery on a solid footing?
Since much of the recovery is policy-induced, the obvious risk to the cyclical improvement is
the probable exit from expansionary monetary and fiscal policy. While analysts with Keynesian
leanings stress the need to carefully base the decision on when to exit from stimulus measures on
a sober assessment of whether an endogenous upswing has been set in motion, other observers
stress the need to avoid inflationary risks from monetary accommodation and the risk of overindebtedness of states as a result of costly fiscal rescue policies. Cases like Iceland, Ireland or
Greece provide ample evidence that such risks are anything but theoretical. Debt defaults and
runaway inflation are obviously on the minds of financial market agents.
Thus the exit from monetary/fiscal stimulus poses a risk to domestic demand, directly for
government spending and indirectly for private consumption and investment, with neither yet
on a solid path to improvement, and certainly not in most European countries.
Labour markets are at the heart of all this. Some countries have already seen unemployment
rising substantially, thus jeopardising personal incomes and consumption, while others,
particularly Germany, have averted redundancies by subsidizing short-time working solutions.
This, however, causes unit labour costs to rise and government debt to balloon. If this recovery
is not V-shaped, job losses may be unavoidable and private consumption might weaken as a
consequence.
A more long-term structural risk to the recovery is a resumption of protectionist policies. During
the recession, such tendencies flared up time and again and they have not yet been finally laid
to rest. It is not only any of the “Buy American” slogans, but also policies of providing massive
subsidies to weak firms that pose formidable risks to international free trade. The tussle between
the US and China over tyres and chicken was just one example of such attitudes.
Restarting the Doha negotiations is of the essence. To do this effectively, the countries hit
hardest by the downturn in international trade must make a special effort to get the proceedings
going again. Germany must use its weight to imbue EU trade policy with new momentum.
And it is in Germany’s and Japan’s interest to more fully integrate emerging and developing
010
countries into the fold. These countries are the appropriate candidates to run current account
deficits in order to get their young economies going more dynamically via the provision of
better soft and hard infrastructure.
One big step in this direction has been made with the signing of the ASEAN-China free trade
deal. The turn of the year saw the creation of the world’s biggest free trade zone – at least in
terms of the combined population involved of 1.8 billion. China and the six leading nations
of South-East Asia have decided to eliminate 90% of their customs’ tariffs. In terms of trade
volume, this deal has created the third-largest free trade zone worldwide. Trade volume is
running at USD 200 billion, whereas 10 years ago it was only some USD 40 billion. China
is now a bigger trading partner to South-East Asia than the US, surpassed only by Japan and
Europe.
Where to look for strong and sustainable growth?
2010 will be no guide to which countries have built up sustainable momentum. Too many
economies are still “on drugs”. Not until 2011 – by which time almost every country will
most probably have exited from monetary/fiscal stimulus – will we know where growth is
sustainable.
Still, even the growth numbers in 2010 will be in line with the differing growth momentum to
be expected as of 2011. The least developed countries (LDCs) and the emerging markets (EMs)
will outgrow the rest. The US will grow by 2 1/2%. Japan, like Europe, may grow at 1 to 2%.
Growth will largely be determined by monetary/fiscal stimuli for the first half of 2010. In a
number of countries, much of the momentum will also come from exports (US, Japan, Germany).
Neither will this momentum continue, nor is it certain that other endogenous forces will come
into play. Hopes today are pinned on EMs and LDCs becoming the engines of international
growth. Thus companies in the old world (Japan, US, Europe) are well advised to look for
dynamic market growth in this part of the world.
Within Europe, it is quite obvious that some countries – and by no means only the PIIGS (i.e.
Portugal, Italy, Ireland, Greece and Spain) – are lagging behind, due to structural problems and
to the need for restrictive fiscal and wage policies, but there are quite a few others as well (the
UK and Hungary, for example). Thus Europe – and not just the euro area – is a potential weak
spot for the international recovery.
However, the US and Japan, two other heavyweights of the global economy are anything but
out of the doldrums. Thus at this time it is the EMs, Asia and probably Latin America that are
required to provide the momentum to get the global economy up and running again.
011
3. Raw Material Industry
3.1 Cotton
Latest estimates for current season’s world cotton production account for 22.3 million
tonnes. This would be a decline of 4.8% over the last season or about 3.8 million
tonnes lower than 2007/08 season. World consumption is projected to increase by
5.4% to 25.2 million tonnes.
Cotton Production 1977/78 – 2009/10
28'000
26'000
1,000 tonnes
24'000
22'000
20'000
18'000
16'000
14'000
12'000
1977/78
2003/04
2009/10
The cotton production used to grow according to the brown trend line until 2002/03. The
increasing approval and cultivation of genetically modified cotton has resulted in soaring
cotton yields. In the season 2003/04, the actual cotton production started to outpace the longterm trend. Current season’s output returned to the long-term trend due to 3.5% lower yields
per hectare in the actual season
Country
PR China
India
United States
Pakistan
Brazil
Uzbekistan
Australia
Turkey
Turkmenistan
Rest of the world
World
Production (mill. t)
6.9
5.1
2.7
2.1
1.3
0.9
0.4
0.4
0.3
2.3
22.3
± in % vs prev. year
-14.2%
+4.0%
-3.2%
+8.9%
+4.9%
-10.9%
+16.5%
-11.9%
-11.2%
-7.7%
-4.8%
Yield (kg/ha)
1,358
499
868
711
1,527
687
1,954
1,321
475
404
734
Remarkable is the much lower cotton crop in PR China where the cotton area declined by 15.8%
in the actual season. Farmers reduced the cotton area in 2009 in response to high production costs,
serious labor shortages, disappointing cotton prices, higher government subsidies for grain and
the weak global demand for textiles at the end of 2008. Another steep cotton area reduction of
a major growing nation has taken place in Turkey. Despite government’s announcement of a 28
US cents per kg production bonus, many farmers switched to wheat, corn, soy and vegetables
in anticipation of better income.
012
The Cotlook A Index moved in the range from 50 US cents per pound to 79 US cents. After
hitting rock bottom in March, cotton prices steadily increased to reach a temporary high at the
end of the year. Market fundamentals have been pushing up prices to higher levels as the world
cotton production has been downwardly revised every single month from 24.3 million tonnes
in December 2008 to 22.4 million tonnes in December 2009. This 7.9% shortfall of supply may
result in significantly lower inventory as cotton consumption expectations were lifted from the
middle of the year onwards. Furthermore, much lower Chinese cotton crop this season and a
rebound in textile production will compel PR China to buy more foreign cotton.
Cotlook A Index Far East, 2004 - 2009
95
US$ cent per pound
90
85
80
75
70
65
60
55
50
45
2004
2005
2006
2007
2008
2009
World cotton area for 2009/10 continues declining at 30.4 million hectares, marking the fifth
consecutive seasonal decline. Almost 80% of the global cotton area is located in six countries
- India (10.3 million hectares), PR China (5.3 million hectares), United States (3.1 million
hectares), Pakistan (3.0 million hectares), Uzbekistan (1.3 million hectares) and Brazil (0.8
million hectares).
World Cotton Growing Farmland
40
million hectares
35
30
25
20
15
10
5
0
'80
'90
India
China
Pakistan
ROW
'00
USA
It has been quite normal in the past to experience changes in the world cotton growing area.
However, the future looks rather gloomy as several leading growers have reduced cotton
growing farmland. Nevertheless, there are also encouraging developments of expanding cotton
area like in Argentina (+47%), Australia (+19%) and Mozambique (+16%). In general, as cotton
would not be grown other than for use by the textile and clothing industry, the ongoing decline
in cotton cultivation area is a direct response to softening textile demand and higher returns
from other crops.
013
“Cotton sector gives livelihood to more than
300 million people. Three quarters of cotton
production located in just four countries.”
Terry Townsend
Executive Director
Secretariat of the ICAC
Washington DC
www.icac.org
“International Cotton Advisory Committee (ICAC) is an association of governments of cotton
producing, consuming and trading countries. The Committee was formed in 1939, and the
Secretariat was established in 1946. The ICAC currently has 41 members.
Cotton and cotton textile industries are central to the economic growth of both developed
and developing countries and contribute to sustainable and socially responsible development.
Cotton is one of the most important and widely produced agricultural and industrial crops in
the world. Cotton is grown in more than 100 countries on about 2% of the world’s arable land,
making it one of the most significant in terms of land use after food grains and soybeans. Cotton
is also a broadly traded agricultural commodity, with over 150 countries involved in exporting
or importing cotton.
More than 100 million family units are engaged directly in cotton production.1) When family
labor, hired-on farm labor and workers in ancillary services such as transportation, ginning,
baling and storage are considered, total involvement in the cotton sector reaches an estimated
300 million people.2) Cotton also provides employment to additional millions in related
industries such as agricultural inputs, machinery and equipment, cottonseed crushing and textile
manufacturing. Cotton cultivation contributes to food security and improved life expectancy
in rural areas of developing countries in Africa, Asia and Latin America. Cotton played an
important role in industrial development starting in the 19th century and continues to play an
important role today in the developing world as a major source of revenue. The value of 22
million tons of world cotton production in 2009/10 at an average world price of about 72 U.S.
cents per pound of lint, or US$1.60 per kilogram, amounts to about US$35 billion.
Cotton is the raw material of development, industrialization and wealth. It is a vital cash crop
providing income for food, education, health, housing and transportation and often serves as a
catalyst for industrialization and rising social welfare.
FOOTNOTE:
1) Paola Fortucci, Director, Commodities and Trade Division, FAO, 2002.
2) ICAC Secretariat estimate, 2009.
014
Following a period of accelerated expansion during the first five years of the 21st century, coincident
with high rates of adoption of biotech cotton varieties and sustained world economic growth, world
cotton production and consumption seem to have entered a period of slow growth. World cotton
production peaked at 27 million tons in 2004/05, and has since retrenched to lower levels. The rate
of adoption of biotech cotton varieties is slowing as biotech varieties already accounted for almost
half of world cotton area by 2007/08.
Cotton production takes place in about one hundred countries but has traditionally concentrated
in a few. Over the last three decades, the four leading producing countries have accounted for an
increasing share of world production. China, India, the United States and Pakistan accounted for
48% of world production in 1970/71 and 75% in 2009/10. In particular, increases in production in
China and India resulted in an increased share of Asia in world production, from 35% in 1980/81
to 65% in 2009/10.
Since the 1950s, cotton yields have experienced periods of slow growth alternating with periods
of rapid growth. Yields seem to have entered a period of slow growth since 2005/06, as the rate of
expansion in biotech cotton area has slowed. It is likely that over the next several decades, new
advances in technologies could trigger another period (or two) of rapid growth in cotton yields. The
incoming technological innovations are expected to have greater impacts on production costs than
on cotton yields. However, their expected arrival date and adoption process remain unknown.
World cotton area is expected to continue varying from year to year, as it did in the last several
decades, although the range of variation is expected to shift to lower levels due to increased
competition with food and fuel crops and tighter resource constraints. In particular, constraints in
water supply to irrigated cotton areas will likely limit irrigated cotton area, at least until droughtresistant cotton varieties are developed and introduced on a commercial scale.
Driven mainly by population growth, cotton consumption tripled between 1950 and 2009. Other
factors affecting cotton consumption were higher income per capita, declining or stable long-term
prices of cotton relative to other fibers, and promotional efforts. However, while world cotton
consumption per capita has been stable since 1960, total textile fiber consumption per capita has
more than tripled, resulting in a declining share of cotton in world textile fiber demand. For cotton,
competition with chemical fibers is a constant challenge.
During the 1990s, mill use of cotton became more concentrated in the largest processing countries.
In 1980/81, the six countries that are the largest processors today, China, India, Pakistan, the
United States, Turkey, and Brazil, accounted for 51% of world mill consumption. These countries
accounted for 58% of world mill use in 1990/91, and 78% in 2008/09.
Over the last decade, China has been the driving force of the world textile industry. Between
1998/99 and 2007/08, the increase in mill use of cotton in China accounted for 86% of additional
mill use worldwide. Cotton mill use in China fell substantially in 2008/09 due to decline in demand
for textiles in its main importing markets. However, Chinese cotton mill use rose again in 2009/10
and is expected to continue to account for the largest share of global cotton mill use in the longterm.
World textile fiber consumption is projected to expand at an annual average rate of 3.5% to reach
80 million tons by 2015. This projected rate of growth is lower than the 4.1% rate observed between
2000 and 2007 but it is higher than the long-term average 3.0% growth rate observed between 1960
and 2008. This projection is consistent with expected moderate global economic growth and slower
world population growth. World cotton consumption and production are projected to expand at an
annual average rate of 1.8% to reach 27 million tons in 2015. This average growth rate is about
the same as the rate observed between 1960 and 2008, and substantially lower than the 3.6% rate
observed between 2000 and 2007. The market share of cotton in world textile fiber demand is
expected to continue its long term decline to 33% in 2015.
Cotton trade is expected to continue growing over the next few decades, its share of world cotton
production and mill use remaining around one-third, as it did over the past six decades. However,
the origin and destination of cotton trade will likely experience variations over time, as cotton mill
use will continue to migrate to regions with the lowest costs of yarn production.”
015
3.2 Wool
World wool production fell in 2009, the seventh annual decline in the past
decade. Production was at 1.1million tonnes clean weight, a fall of 7.4%.
Wool: Global Production
1'400
'000 tonnes
1'200
1'000
800
600
400
200
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e
Australia
PR China
New Zealand
Argentina
Uruguay
South Africa
UK
Others
The largest fall was in the production of wool used in clothing (apparel wool), with production
falling by an estimated 8% in 2009 to 552,000 tonnes, while production of wool used in
interior textiles fell by an estimated 6% to 547,000 tonnes. The latest forecasts presented at the
International Wool Textile Organisation s Annual Congress, held in Paris in May 2010, suggest
that world wool production will fall by 1.4% in 2010 to 1.08 million tonnes. However, early
indications are that the decline in wool production will be arrested a little in 2011, with a small
lift of 1% predicted.
Wool production by Australia, the world’s largest producer of wool, fell by 9% in 2009
compared with 2008 to 0.26 million tonnes. Continued drought in eastern Australia and high
sheep meat prices resulted in a sell-off of sheep in Australia. This has pushed sheep numbers
down to around 72 million head, the lowest since the 1920s. The drought has also reduced the
average fleece weights in Australia. As 90% of Australia’s wool is used in clothing, it is the
world’s largest supplier of apparel wool, accounting for around 50% of world production. The
fall in Australia’s production is the reason for the relatively larger decline in world production
of apparel wool in 2009. While forecasts are for Australia’s production to fall again in 2010,
by 5% to 0.24 million tonnes clean, seasonal conditions have improved in recent months and
production is forecast to increase by 3% in 2011. This is the first increase since 1998 and is
entirely due to higher average fleece weights. Sheep numbers are predicted to fall again in
2011, but the decline looks as though it is slowing, with sheep disposal (slaughtering and live
export) well down on a year ago.
Production in the second largest wool producing country, PR China, fell by 7% in 2009 to
0.16 million tonnes. This is the lowest production level in China since 2003. There is a move
away from woolled sheep in China to take advantage of high sheep meat prices. As well, total
sheep numbers were down by 6% to 120 million head at the start of 2009. This decline in sheep
numbers is in line with Chinese Government reforms to encourage a move away from sheep
and other small-hoofed animals and towards larger hoofed animals (beef and dairy cattle) to
reduce land degradation in the Inner Mongolia and Xinjiang Provinces (where most of China’s
sheep are kept). Production is forecast to fall again in 2010, by 7%, but then stabilise as sheep
numbers stabilise.
016
New Zealand is the world’s third largest wool producing country and largest producer of wool
for interior textiles. Wool production there fell by 24% in 2009 to 0.12 million tonnes clean.
The main driver of this decline was the sell-off of sheep as farmers converted their properties
to use for the dairy industry. As well, drought in some parts of the country helped pushed
production down, as did reduced incidence of secondshearings. This large fall is expected to
be partly reversed in 2010, with a predicted 15% rebound in production to 0.14 million tonnes.
This rebound is due to lower dairy prices, better seasonal conditions and increased proportions
of second-shearings. However, at this early stage, production in 2011 is predicted to dip once
again by 2.5%.
Estimates of world demand for wool at spinning are no longer available. However, data on trade
in wool products is available for 2008 (full data for 2009 will not be available until July). The
trade data for the 2008/09 season shows that raw wool exports fell sharply to just under 0.8
million tonnes clean. Data from the five major wool exporting countries show that exports of
raw wool have recovered in the 2009/10 season, with a 3% rise for the year to February 2010.
Global trade in wool products declined in 2008, as a result of both the lower raw wool supply
and the slowdown in the global economy in the wake of the Global Financial Crisis.
Global wool trade in wool top fell by 17% in 2008 to around 165,000 tonnes. Among the
20 largest exporters, which accounted for around 95% of global exports in 2008, there were
significant falls almost across the board, although India was an exception with a 1% lift in
exports of wool top. Global trade in wool yarn fell by 14% in 2008 from the 2007 levels, to an
estimated 96,000 tonnes. There were significant falls in exports of wool yarn for most of the
top 20 exporting countries, with New Zealand, Turkey, the Czech Republic and Lithuania all
exceptions. The trends in exports trade of wool woven fabric were similar to that seen for wool
yarn, with a 13% fall in global exports of wool fabric (pure, wool rich and blends) and a larger
fall in worsted wool fabric exports (down 14%) compared with woollen wool fabric (-11%).
While trade in some of the key wool apparel in knitwear and in men’s and women’s woven wear
was generally lower in 2008, there were some exceptions, notably in the trade in men s wool
overcoats and women’s wool jackets. Global trade in wool carpets was 9% lower in 2008 as
the fall in housing markets and construction hit hard. Global trade in wool products is likely to
fall again in 2009 as many economies were in recession for at least part of the year, which will
hold back demand.
“Wool aims to regain its position with
consumers after the seventh annual output
decline in the past decade. A new marketing
initiative will highlight wool’s unique attributes.”
Chris Wilcox
Chairman
IWTO Market Intelligence Committee
Belgium
www.iwto.org
017
“International Wool Textile Organisation (IWTO) is the international body representing the
interests of the world’s wool-textile trade and industry. IWTO membership covers woolgrowers,
traders, primary processors, spinners, weavers, garment makers and retailers of wool and allied
fibres in its member-countries, as well as all kind of organizations related to wool products and
the wool business in general.
The global wool industry, like all textile industries, faced a very challenging year in 2009 in
the wake of the Global Financial Crisis. The economies of many of the major wool consuming
countries entered recession during the year, which greatly reduced demand for wool garments
and wool interior textiles at retail. This in turn resulted in much lower exports from the major
wool product manufacturing countries, notably China and Italy, resulting in lower orders and
lower production activity throughout the global wool textile business.
While it was a difficult time, the signs are now that business conditions are improving and
2010 presents an improved picture. This improvement will be greatly helped by the continuing
trend by consumers and by retailers and manufacturers for natural fibres, with well-established
environmentally friendly, ethically sustainable credentials. This has been seen in a surge in
demand and price for cotton and viscose fibres in recent months, and was seen by the strong
recovery in wool prices beginning in the second half of 2009.
The IWTO is working hard with its members countries to reinforce wool s strong credentials
as the original natural, sustainable fibre; a fibre which has superb attributes as fire retardant, in
moisture management and in comfort. We have been working closely with governments in the
major markets to explain their credentials and rebuild wool’s position.
The industry is addressing ethical concerns about methods of fly-strike control in several
countries, and notably Australia. Extensive research and development is being done to develop
fly strike control management techniques that do not compromise animal welfare of the sheep.
Much work is also being undertaken to use genetics to breed sheep that are fly-strike resistant.
After several years of marketing silence, wool has lost its position with consumers. Younger
consumers are not aware of the attributes and benefits of wool. To help address this, IWTO has
recently launched a new marketing initiative “The Campaign for Wool”.The Campaign has the
full support of His Royal Highness, The Prince of Wales. It will begin in the UK in October
2010, with the objective of informing consumers about the natural, ethical features of wool and
its unique attributes.”
018
3.3 Crude Oil
Crude oil prices were on the decline until mid-February, marking a low of
about US$34 before steadily increasing to around US$80 at the end of the
year. In 2008, when prices hit a historic record at about US$147, there were
some who predicted that oil resources would soon vanish and oil derivatives
like synthetic fibers would soon be replaced by natural fibers. Although crude
oil resources are finite, improvements in technology and new discoveries
have continually increased the resource base to levels well above previous
expectations.
In addition to that, the impact of oil prices on derivatives has often been overrated. So, polyester
fiber intermediates were quite comparable to the average 2004 price level with prices for mono
ethylene glycol even remaining the entire year below this level.
Crude Oil and Polyester Fiber Intermediates Prices
3.5
Average 2004 = 1
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2005
MEG
2006
PTA
2007
2008
PX
2009
Crude Oil
Paraxylene (PX)
An annualized rate of about 1 million tonnes of new PX capacity has led to a marginal reduction
in utilization rate. The world PX capacity increased to 33.2 million tonnes, up about 9%, with
no changes in the Americas, de-bottlenecking in Europe and five new plants in Asia. During
the second half of 2009, four new units came on-stream in PR China with a total capacity of
around 2.9 million tonnes. At the end of 2009, the first PX facility with an annual capacity of
829,000 tonnes was started-up in Kuwait. After a negative production growth in 2008, a higher
PX output was realized in Asia and the Middle East while the Americas and Europe were not
able to defend their positions. In total, last year’s production increased by around 6% to nearly
27 million tonnes, the equivalent of a global utilization rate of 82%. This growth was result of
a steady increase in demand and some inventory recovery along the polyester chain.
Purified Therephthalic Acid (PTA)
Global PTA capacity increased by 7% to 46.2 million tonnes while production in 2009 was
39.6 million tonnes, up nearly 2%. The ongoing contraction of the polyester industries in
North America and Europe is being reflected by declining PTA demand. In contrast, activity
in the PTA sector was busy in the two largest markets, PR China and South Korea, jointly
accounting for a 45% market share. Three new manufacturing units were commissioned in Asia
with a design capacity of 3.2 million tonnes. Despite a roughly 6.5 million-tonne surplus, new
facilities are already under construction. The Chinese expansions will substitute imports that
accounted for 6.3 million tonnes in 2009, mainly at the expense of South Korea, Taiwan and
Thailand. Furthermore, new players will enter this industry in Poland and Portugal. Finally,
Latin America’s most integrated polyester complex will comprise a PTA plant with an annual
capacity of 700,000 tonnes. This project in Brazil together with downstream facilities is
scheduled to come on-stream end of 2010.
019
Mono Ethylene Glycol (MEG)
The MEG capacity is mainly located in Asia, accounting for 46%, Middle East taking in a 22%
share after doubling capacity during a five-year period and North America with a 20% share.
In terms of installed capacity, PR China ranks fourth with 2.5 million tonnes after Saudi Arabia
at 4.2 million tonnes, Taiwan at 3.5 million tonnes and the United States at 2.8 million tonnes.
When considering utilization rates, only plants in Saudi Arabia and PR China were able to run
at about 90%. However, last year’s Chinese imports of almost 6 million tonnes amounted to an
dependency ratio of foreign supplies of about 75%. Even three new MEG plants in PR China to
be commissioned in 2010 with a nameplate capacity of 1.3 million tonnes will not significantly
change this reliability on imports, mainly coming from Saudi Arabia, Taiwan, Canada and
South Korea. The last year was characterized by some delays of new capacity. In total, only
three new plants came on-stream, of which one 700,000-tonne plant in Saudi Arabia, one coalbased 200,000-tonne facility in PR China and another 750,000-tonne plant in Singapore.
020
4. Fiber Consumption in 2009
The global fiber demand went up by 4.2% to 70.5 million tonnes. Manmade fibers increased
by 4.0% to 44.1 million tonnes and natural fibers advanced by 4.5% to 26.4 million tonnes.
World Fibers Supply
80
70
mill. tonnes
60
50
40
30
20
10
0
1970
1980
Manmade Fiber
1990
2000
Cotton/Wool/Silk
2005
2009
Other Natural Fiber
While this development of returning to growth in 2009 may be positive at first sight, the entire
textile and apparel industry has lost a huge processing volume and turnover in the last two years.
Taking into account the long-term average annual growth rate of 3.4%, the demand shortfall in
the last two years adds up to 14.8 million tonnes. As lower priced apparel was available across
the world after PR China’s accession to WTO at the end of 2001, the short-term average annual
growth rate even accounts for 5.2%. This annual growth rate would lead to a demand shortfall
in the last two years of 19.1 million tonnes.
Manmade fibers relative market position remained at 62.6%, while cotton, wool and silk
hold a market share to 37.4% of the world textile market. A world population of 6.76 billion
corresponds to an average per capita consumption of 10.4 kg.
Global Fibers Production
45
40
mill. tonnes
35
30
25
20
15
10
5
0
'50 '60 '70 '80 '90
Natural Fibers *
'95
'00
'05
'09
Manmade Fibers
* Cotton, Wool, Silk
021
Cellulosic and synthetic yarns increased by 3.4% to 24.8 million tonnes, mainly driven by
textile yarn. Staple fibers, the input material for spun yarn and nonwovens, were up 4.6% to
45.6 million tonnes. This segment benefited from a stronger demand of cotton as well as higher
output of cellulosic and polyester fibers.
Yarn and Fiber Production
50
45
mill. tonnes
40
35
30
25
20
15
10
5
0
'50 '60 '70 '80 '90
Filament Yarn *
'95
Staple Fiber **
* Polyester, Polyamide, Polypropylene, Cellulosics, Silk
** Cotton, Wool, Polyester, Polyamide, Polypropylene, Acrylics, Cellulosics
022
'00
'05
'09
5. Manmade Filament Yarn and
Staple Fibers
The cellulosic fiber market increased by 7.7% to 3.8 million tonnes, just
marginally missing the pre-crisis’ all-time high. The viscose staple fiber
segment increased by 11.4% to 2.7 million tonnes while the filament business
for textile and industrial yarns declined by 5.4% to 351,000 tonnes. Steady
growth momentum was again provided by the subsector of acetate filter
tows, increasing by 2.3% to 759,000 tonnes.
The development in the synthetic fiber segment was also favorable, although showing a mixed
performance. The total market was up 3.7% to 40.3 million tonnes. Polyester production
increased by 5.3% and acrylics by 4.4%. On the other hand, polypropylene decreased by 6.5%
and polyamide was down by 1.4%. Spandex declined by 5.7% and even high-tech fibers like
aramide and carbon fibers could not continue its long-lasting growth.
Manmade Fiber Output 2000-2009
20
million tonnes
15
10
5
0
Viscose
PES-SF
PES-FY
PA
PP
2000
2005
2006
2007
2008
2009
PAN
Others
The manmade fiber spinning business has further declined in Europe, Japan and the United
States, while Asia continued to gain market shares. The Asian manufacturing volume of
more than 36.0 million tonnes corresponds to a global 83% market share, of which 72% was
manufactured in PR China. The Chinese industry succeeded in lifting output by 11.2% to 26.3
million tonnes. The table below summarizes the output of major manmade fibers:
2009 in 1,000 t/y
Cellulosics
Synthetics
- Polyester
- Polyamide
- Polypropylene
- Acrylics
- Others
TOTAL
Filament Yarn
351
24,426
19,320
3,274
1,469
363
24,777
Staple Fiber
3,445
15,912
12,609
214
1,077
1,949
64
19,357
TOTAL
3,796
40,338
31,929
3,488
2,545
1,949
427
44,134
± in % vs 2008
+7.7%
+3.7%
+5.3%
-1.4%
-6.5%
+4.4%
-6.6%
+4.0%
023
Trevira GmbH, Germany, is a leading European specialty manufacturer of high-value
branded polyester fibres and filament yarns for home textiles, apparel and automotive
industries as well as for hygiene and technical applications.
“European mill consumption experienced a
dramatic downwards trend in 2009 while Trevira
has overcome a difficult year and restarted on a
sound financial basis.”
Uwe Wöhner
CEO of Trevira GmbH
Germany
www.trevira.com
Challenges and chances of the structural change in the textile industry
“The economic crisis has accelerated the ongoing structural change of the textile global industry.
Mill consumption of the industry experienced a dramatic downwards trend in 2009 in Europe.
This is the situation we face today:
• The recovery of the automotive industry, after the slump in demand, needs time. Demand will
remain on pre-crisis levels and future growth will take place in other parts of the world.
• The global contract market has suffered from stops in construction and investment, along with
adjustments to modernisation budgets. This has impact on the home textile industry. Postponed
investments, however, are likely to get (re-)started as t he business climate improves.
• In terms of sales opportunities, more positive tendencies are developing outside the European
core markets.
• Mill consumption for technical applications is outpacing traditional textile industry end-uses.
• Customized and innovative products and developments maintain a stable production basis in
Europe, while commodity production volumes continue to shift to Asia.
• The worldwide discussion of the environmental changes has increased the demand for ecofriendly products and sustainable manufacturing.
• The regulations of REACH ensure a safe supply chain, but still need to be fully enforced on a
global basis.
The changing market environment requires a reconsideration of the business focus and strategies
by the suppliers. However, this is where European fibre manufacturers as suppliers of highquality specialties will find the field for new opportunities.
Trevira has overcome a difficult year and restarted in the beginning of 2010 on a sound financial
basis, as a new and independent company with a clear strategy for the future. The product
portfolio focuses on profitable specialties with inherent functions like flame-retardant and
024
antimicrobial fibres and yarns or bi-component fibres. The share of fibres for hygiene applications
and technical end-uses in our sales figure will increase. Our strength is the close partnership and
cooperation with our customers along the textile value chain. The commitment to sustainability
and ecological processes has been our company policy ever since. Combined with our continued
commitment to quality and a strong brand, this provides the basis for state-of-the-art textiles
made in Europe and elsewhere. For these there will a growing demand, worldwide and on a
long-term basis.”
5.1 Polyester
The output of polyester fibers was up 5.3% at 31.9 million tonnes. Filament yarns weathered
the turbulences surprisingly well by increasing by 5.9% to 19.3 million tonnes and staple fibers
rose by 4.4% to 12.6 million tonnes.
Polyester Fibers Production
25
mill. tonnes
20
15
10
5
0
1985
1990
1995
2000
2005
2006
2007
2008
2009
PR China
ROW
The fundamental change of the polyester business has continued in favor of PR China.actually
taking in a 69% share. The economic center of gravity will continue to be in PR China as
several large-scale expansion projects in textile and industrial yarn markets will shortly come
on-stream. In general, the number of spinning positions ordered in 2009 has nearly reached
the exceptional level of the year 2006. Hence, a massive volume of new filament capacity
is about to be put into operation. Effective demand came from PR China in the textile yarn
business from major players like Jiangsu Shenghong, Zhejiang Hengyi, Zhejiang Tongkun and
tier-two manufacturers. Last year s incoming orders mainly addressed FDY positions. Along
with producers in PR China, Indian manufacturers also jumped on the FDY bandwagon. Almost
a dozen invested in new equipment or purchased used machinery to benefit from helping import
tariffs on yarn due to shortened setting-up operation. Large-scale projects from Bhilosa, Alok
and JBF as well as some market newcomers are worth mentioning. Whether existing indications
for facilitation of demonstrably eco-friendly investments may turn out trend-setting is not yet
clear. Strong investments in POY spinning plants have also favorably affected installation of
texturing machines. Order books of all suppliers of texturing machinery filled up rapidly, as
e.g. contracts for more than 900 DTY-machines were signed in PR China, coming very close to
the all-time high from 2002. Despite considerable capacity additions in the Chinese industrial
yarn business over the recent years, a huge expansion project was realized by Zhejiang Hailide
and an even larger investment by the newcomer Zhejiang Hengli. Furthermore, one of the
leading Chinese textile yarn manufacturers is to diversify into technical yarns to broaden its
commercial base. The investment behavior of all the remaining polyester producing markets,
accounting for a 24% share, delivered a mixed picture. There have been continuous expansion
and modernization projects, predominantly affected by the Chinese and Indian superiority and
politics, explaining much activity in this industry today.
025
The only growth region was Asia, increasing its contribution by 7.6% to 29.7 million tonnes.
Double-digit growth has been witnessed in PR China (+10.0% at 22.0 million tonnes), India
(+10.5% at 2.3), Malaysia (+25.5% at 0.3) and Vietnam (+17.7% at 0.2). Japan suffered from a
drop of 28.9% to 309,000 tonnes. Thus, it is no surprise to have witnessed some restructuring in
Japan with Asahi Kasei Fibers withdrawing from in-house production and transferring filament
production to Teijin Fibers Ltd. as well as Mitsubishi Rayon outsourcing polyester filament
yarn production to companies in the Unitika Group. Moreover, Japanese Teijin Ltd. has sold its
stake in P.T. Teijin Indonesia Fiber Tbk. (TIFICO) to four Indonesian companies. The Chinese
share in the polyester industry accounted for 69%, a staggering growth rate from a 27% ratio
in 2000 and a 12% market share in 1990. The output in Greater Europe dropped by 21.0% to
960,000 tonnes and the manufacturing volume in the Americas declined by 16.6% to 1.13 million
tonnes. Both regions suffered from a drop in automotive production that not only negatively
affected the demand for industrial yarns, but also the consumption of textile filaments used e.g.
in upholstery fabrics, headliners etc. Meanwhile, recycling of polyester bottles in the United
States will gain more significance after the creation of a joint venture between DAK Americas
and Shaw Industries. The common plant is planned to recycle about five billion bottles per year
used for resin, staple fiber and carpet yarn.
The strong growth in the polyester textile yarn production of 6.7% to 18.2 million tonnes was
driven by a small number of Asian countries while the western hemisphere reported heavy
declines. This has lifted the Asian market share to nearly 97%. The textile powerhouse, PR
China, as well as India, Malaysia and Vietnam succeeded in increasing output substantially. The
Chinese output amounted to 13.6 million tonnes, more than the global demand just five years
ago. Second ranked India enjoyed a 7.6% growth to 1.4 million tonnes while the third largest
polyester textile filament industry in Taiwan like the fourth largest in South Korea both remained
almost unchanged in terms of volumes. Despite the Chinese superiority, small manufacturing
nations like Bangladesh do not resile to set up the country’s first petrochemical plant to produce
polyester chips. The plant will have an ultimate capacity of up to 600 tonnes of polyester chips
per day. The textile filament markets in Greater Europe were characterized by sluggish demand,
resulting in lower manufacturing activity and imports. The region’s production volume fell by
21.5% to about 265,000 tonnes. The Americas ended up with the same size after decreasing by
15.4% last year. The polyester industry in Brazil has witnessed declines in both filament sectors
and the staple fiber business. Surprisingly, as the country’s huge integrated polyester complex
at costs of US$1.4 billion is expected to come on-stream in autumn 2010.
The industrial yarn business has not only suffered from the downturn in the automotive industry
but also from changing trade flows.
Major PES Industrial Yarn Exporters
180
160
'000 tonnes
140
120
100
80
60
40
20
0
026
PRC
Korea
Taiwan
France
2004
2005
2006
2007
2008
2009
Netherlands
USA
The global output of polyester industrial yarn was down by 6.1% to nearly 1.1 million tonnes.
While production in Greater Europe dramatically fell by 44.1% to about 110,000 tonnes, the
Americas were down by 18.9% to around 140,000 tonnes. According to figures from the China
Chemical Fiber Association, national output increased by 22.2% to 550,000 tonnes. Given
reduced exports at 133,000 tonnes and almost unchanged imports, this calls for an additional
domestic demand of 135,000 tonnes – an amazing growth momentum in a year of great
depression. Other established technical textile industries in Asia like Japan, South Korea and
Taiwan have suffered from a decline of 16.4% to roughly 265,000 tonnes.
Tires are the biggest consumer of polyester industrial yarn and sales were on the decrease
following lower automotive build-rates. However, several announcements of tire makers to
further expand tire capacity may be promising for industrial yarn sales in future. Michelin will
build tire plants in PR China and India over the coming two to three years at costs of US$1.9
billion. Bridgestone announced investments of about US$545 million in India, Japan and Poland.
Hankook plans to invest around US$415 million in its plants in Hungary and PR China. Pirelli
will spend US$275 million to increase capacity at its plants in Brazil and Romania. Yokohama
is to invest US$195 million for expansion its Chinese passenger tire plant and building a new
factory in Russia. Nexen Tire Corp. will invest US$843 million over eight years in a passenger
and light truck tire plant in South Korea to meet growing demand for fuel-efficient tires.
On the other hand, Bridgestone closed its tire plants in Australia and New Zealand at the end
of 2009. Michelin will end tire production at its passenger and light truck tire plant in Ota,
Japan, mid-2010. Denman Tire L.L.C., United States, has filed for Chapter 7 bankruptcy in
mid-March. The company, in business for 91 years, had an annual tire capacity of nearly 1
million units.
The staple business grew by 4.4% to 12.6 million tonnes. The only growth region was Asia,
now accounting for a 89% market share. The 2009 output amounted to 11.2 million tonnes, up
7.4%. Although the capacity growth in PR China has significantly slowed since 2005, excess
supply still is an issue. While national output increased by 9.4% to 7.9 million tonnes, the
average utilization rate slightly improved from 68% in 2008 to nearly 72% last year. However,
the margins for the domestic industry continuously have worsened. In particular in the second
half of 2009, the entire sector suffered losses. Despite those adverse conditions, new capacity
from Jiangsu Jiangnan and Zhejiang Donghua Fiber were started up last year. India, the second
largest producer, increased volumes by 15.1% to around 860,000 tonnes - similar to the precrisis level. Taiwan and South Korea, in third and fourth position, both managed to lift output
as well. Taiwan’s production grew by 13.3% to nearly 570,000 tonnes, equal to an average run
rate of about 90%. The Korean output improved by 5.0% to 516,000 tonnes, resulting in an
utilization rate of approximately 80%. The healthy operating rates in both industries are the
outcome of a persistent adjustment to the changing market environment and further reductions
in capacity are planned for the years to come. A promising example for continuous growth has
been Vietnam, thanks to the prudent expansion strategy of the Vietnam National Textile and
Garment Group (Vinatex). Together with Petrovietnam, the trading name of Vietnam Oil and
Gas Group, a new polyester complex with an estimated capacity of 400 tonnes per day of staple
fiber will be constructed with anticipated completion in 2011.
The other parts of the world all suffered from declining output. Production in Greater Europe
went down by 14.2% to below 600,000 tonnes. While Turkey was stable, Western Europe
decreased by 23.2% to 268,000 tonnes and CIS manufacturing activity collapsed by 17.8% to
82,000 tonnes. In the Americas, production declined by 14.7% to about 725,000 tonnes.
027
The Saudi Arabia-based Obeikan Technical Fabrics Co. Ltd. produces PVC, PTFE and
Silicone coated fabrics. Obeikan stands up to the strong European and Chinese competition
with their qualitative first-class products because the company is focusing on efficient,
high productive, high tech equipment manufactured by Oerlikon Barmag.
“Superior equipment and skilled labor to
produce first-class quality products at very
competitive energy and operation cost of Saudi
Arabia are our key to success.”
Mohamed ali Hassen
General Manager
Obeikan Technical Fabrics Co. Ltd.,
Kingdom of Saudi Arabia
www.obeikan.com.sa
“We owe our success to many factors: Definitely the choice of Barmag as turn key project
supplier, the high level of engineering of all project parts and to our very well trained and
experienced multinational skilled team. Add to all these factors, we have a very competitive
energy and operation cost of Saudi Arabia. We also have very low waste and the highest level
of quality in the industry for the single stage yarn. Definitely the high product quality that we
are achieving is 100% related to the high quality of the equipment without any doubt. Since
competition is becoming more and more fierce, the only way to succeed is by distinguishing
ourselves: the selection of high technology is one of the best choices to survive in the future.”
028
Headquartered in Greensboro, NC, Unifi Inc. is a leading producer and processor of
multi-filament polyester and nylon textured yarns.
“With a base of operations established in
El Salvador, Unifi Central America will serve
customers with an additional quick-turn and
quick replenishment solutions.”
Roger Berrier
Executive Vice President
Unifi Inc.
United States of America
www.unifi-inc.com
“The long-term growth and the attractiveness of the Central American region to North American
retailers’ and brands’ led to the formation of Unifi Central America (UCA). Our investment into
this region will provide our customers with quick response and turn times, added flexibility and
accessibility to Unifi’s growing line of innovative and sustainable fibers.”
5.2 Polyamide
Polyamide fibers continued declining by 1.4% to 3.5 million tonnes in 2009. Despite increasing
pressure from polyester, textile yarn was up by 8.3% at 1.6 million tonnes. All the other sectors
suffered from decreasing activity with the industrial yarn business going down by 7.4% at 0.9
million tonnes, carpet yarn falling 8.0% to 0.7 million tonnes and staple fiber dropping by
15.7% to 214,000 tonnes.
Polyamide Fibers Production
2.0
million tonnes
1.5
1.0
0.5
0.0
Textile FY
Industrial FY
Carpet FY
Staple Fiber
1990
1995
2000
2005
2006
2007
2008
2009
029
Continuously rising caprolactam prices, almost doubling until year-end, have resulted in
increasing prices of the subsequent products. Furthermore, the depressed housing market in
the United States and lower vehicle build rates have put additional strain on the industry. VDA
reported a 13.2% decline in world automotive production at 60 million vehicles. As about
three quarters of nylon industrial filament have been targeting the automotive industry, lower
build rates directly affect the demand for tires and airbags. Although the polyester lobby has
been trying to branch out into this segment for several years, the airbag sector still is a 100%
nylon market. However, trials are underway in the coated fabrics sector to achieve commercial
approbation. Even if third party certification should be granted, bulkier polyester airbags due
to more yarns needed will restrict the scope of action for car designers.
The difficult market environment has resulted in several negative company news like e.g.
Invista’s announcement in January 2009 to close its Wilton site, UK, where it produced various
chemicals, including HMD, nylon salt, nylon 6,6 polymer and adipic acid; Mitsubishi Chemical
ceasing caprolactam production at its Mizushima and Kurosaki plants in Japan; textile yarn
producer Thüringer Filamente GmbH filing for insolvency in April 2009; textile filament
producer Chemlon Humenne withdrawing from textile yarn production mid 2009; Laufaron
GmbH, manufacturer of polyamide fibers in Guben, stopping production end of April 2010;
Invista closing its Seaford, Delaware, plant mid of 2009; Xentrys, formerly known as Domo, in
Belgium closing its carpet yarn mill; Artois, member of Beaulieu group, in France discontinuing
carpet yarn production in the first half of 2009; Defibre in Spain stopping its textile filament
mill; Russian Kemerovo withdrawing from industrial yarn manufacturing and Unitika in Japan
ceasing textile and industrial yarn production in the second quarter of 2009.
Furthermore, some major acquisitions took place as Solutia Inc. sold its entire nylon business
to an affiliate of SK Capital Partners, a New York-based private equity firm. This agreement
includes all the raw materials plants, staple fiber, carpet yarn, industrial filament and the
engineered plastics operation. Nilit, Israel, has purchased the Nylstar textile filament operation
in Martinsville, Virginia. This gives Nilit a production base in Israel, Germany, PR China and
now in the United States. DSM N.V. has acquired full control of the polymerization facility of
Nylon Polymer Company LLC (NPC) in Augusta, Georgia, from Shaw Industries.
However, a number of investments were carried out or are in the process of starting up soon.
2009 was a strong year for nylon as more than a fifth of all newly ordered positions were
targeting this sector. Zhejiang Hengyi Group has started to build a caprolactam facility in
Hangzhou with an annual capacity of 200,000 tonnes, the biggest single line in the world.
Many nylon chip producers in PR China are planning to expand capacity in 2010, including
Haiyang Chemical Fiber, Shandong Xiangyu, Shandong Shifeng, Shandong Anda, Yueyang
Chemical Fiber, Jiangsu Ruimeifu, Wuxi Polymer, Wenzhou Huajian, Tianjin Haijing, Fujian
Liheng, Fujian Jinjiang Technology, Shijiazhuang Chemical Fiber and Sanding Holding Group,
and expansion will roughly total 650,000 tonnes. This would almost completely replace imports
that accounted for about 680,000 tonnes in 2009 (+22% vs. 2008). Ningbo Xinlun put into
operation its new 48-position FDY line and total capacity will reach 40,000 tonnes. China Sky
(Quanzhou) will commission its new 72-position FDY capacity. New nylon filament capacity is
expected to come on-stream in 2010 at Fujian Liheng (30,000 tonnes), Zhejiang Jinshida (8,000
tonnes), Qianchao Nylon (30,000 tonnes), Xinlun Nylon (20,000 tonnes) and Fujian Jinjiang
Technology (80,000 tonnes). Huading Nylon plans to add a 576-position spinning line and 100
sets of DTY machines, expanding its capacity to 120,000 tonnes by 2011.
Investments beyond the Chinese border were announced for Taiwan’s FCFC, planning to startup a textile yarn facility in Vietnam in 2010. In Spain, NUREL will increase its POY and FDY
filament capacity by 3,000 tonnes. In the United States, SANS Technical Fibers will move
existing equipment from the South African parent company into its high tenacity nylon 66
production facility in Stoneville, North Carolina. Furthermore, Premiere Fibers is converting
a spinning line from nylon POY to high tenacity FDY at its Ansonville, North Carolina, plant.
Moreover, Rhodia plans to invest US$280 million into its operations in Brazil for debottlenecking
of the nylon chain and for the manufacture of solvents in the next three to four years. Finally,
Grodno Khimvolokno is planning to set up a large scale textile plant to manufacture nylon yarn
and cord which is expected to be fully operational by 2013.
030
The segment of textile yarns was up 8.3% to 1.6 million tonnes. At first sight, it appears to
be good news for the entire industry. The manufacturing activity outside PR China, however,
declined by 15.6% to 757,000 tonnes while Chinese output soared by 43.0% to 887,000 tonnes.
Thus, almost 55% of all manufactured textile nylon filaments had Chinese origin. The strong
build-up of Chinese capacity has increasingly replaced nylon-related exports from Taiwan
where the output fell by 22.7% to about 245,000 tonnes in 2009. In total, the Asian output of
textile yarns was 16.6% higher at 1.35 million tonnes. While the American industry declined
by 9.3% to 109,000 tonnes last year with a significant reduction of 20.5% in Mexico, Greater
Europe plunged down by 26.0% to 148,000 tonnes.
Two thirds of the nylon industrial yarn output has Asian origin, compared with a market share
of 50% in 2000. Greater Europe takes in a 17% market share and the Americas amount to 14%.
Last year’s world production was down by 7.4% to about 890,000 tonnes. As in 2008, the
only growing industry was domiciled in PR China where production rose by 15.9% to 364,000
tonnes. The increasing national demand was partly a result of a higher production of passenger
cars and commercial vehicles. According to VDA, production shot up by 48.3% to 13.8 million
units. Double-digit declines took place in the Americas, North America was down by 21.6% to
81,500 tonnes and Latin American contribution declined by 13.9% to 41,000 tonnes. Europe,
where the automotive production fell by 22.1% to 17.0 million units, saw a reduction of nylon
industrial yarn production by 23.9% to 148,000 tonnes.
The global nylon carpet yarn suffered from the steepest decline as production fell by 8.0%
to 740,000 tonnes. Above-average reduction arose in the United States with manufacturing
volumes dropping 15.6% to 426,500 tonnes. The real estate crisis is one explanation for the
poor carpet volumes, but steadily growing polyester carpet yarn volumes have additionally
continued to substitute nylon carpet yarns. In 2009, the U.S. polyester carpet yarn output surged
by 23.5% to 132,500 tonnes. New housing starts in the United States continued to worsen,
dropping 37.5% to a new historic low at 565,500 in 2009. The dramatic decline in the recent
four years can be easily seen at the below chart.
United States: New Housing Starts
Number of housing units in thousands
2'500
2'000
1'500
1'000
500
0
1970
1975
1980
1985
1990
1995
2000
2005
2009
While the majority of countries followed this negative trend in consumption, only Canada and
PR China managed to lift last year’s output. Canadian nylon carpet year production increased
by 14.1% to 96,300 tonnes and Chinese manufacturing volume even soared by 71.4% to 48,000
tonnes. The Chinese industry was enjoying growing manufacturing activity, mainly in the
contract market, due to Shanghai Expo in 2010 and the Asian Games in Guangzhou in 2012.
The production of staple fibers has further slumped by 15.7.% to 214,000 tonnes, largely driven
by strong cutbacks in the United States. Nevertheless, the U.S. industry still is the main center
of production with a global share of 38%, although output dropped by another 40,000 tonnes in
2009. In total, the U.S. industry has lost about 190,000 tonnes of annual output in the last four
years. Greater Europe, mainly the western part, also suffered from a double-digit decline. The
sustained Chinese development of nonwovens further boosted the staple market up by 37.0%
to 74,000 tonnes.
031
POLYAMIDE HIGH PERFORMANCE (PHP) is a global business headquartered in Wuppertal,
Germany.
“2009 was the worst crisis year ever since in
the history of industrial yarns leading to further
consolidation and concentration.”
Volker Siejak
Business Director
Polyamide High Performance GmbH
Germany
www.polyamide-hp.com
“We are a world class manufacturer strictly focused on high-tenacity polyamide yarns and
polymers and hold leading positions in airbag and other technical applications as well as in
specialties for tire reinforcement. Our products are marketed under the brand names Enka®
Nylon (PA 6.6), Enkalon® (PA 6) and Stanylenka ® (PA 4.6). Production facilities are located
in Germany, in the United States and since autumn 2007 also in China based on joint ventures
with China ShenMa.
The polyester business of Diolen Industrial Fibers GmbH was continued from March 1st,
2009, under the new name Polyester High Performance GmbH as a subsidiary of Polyamide
High Performance GmbH. Polyester High Performance started the business with about 240
employees. The company continued to stay one of the leading European polyester yarn company
with an international reputation for developing and manufacturing high-tenacity polyester
yarns. The main product are Diolen® yarns-on the market since 1957-which are used worldwide
to strengthen a wide variety of industrial applications, like broad fabrics, safety belts, MRG
products, ropes, mooring lines and much more.
Year 2009 was the worst crisis year ever since in the history of industrial yarns, leaving major
deceleration effects in the markets. In some sub-segments the demand nearly disappeared and
only feeble residual quantities remained. The complete value chain was nearly discontinued
for a certain time. Consolidation and concentration is the outcome of the crisis-a comeback of
the pre-crisis status is doubtful for the countries of the Triade (Europe, USA, Japan). Market
participants from high-cost countries (in particular Europe resp. Germany) could only survive
the economic downturn by taking measures as short-time work. Not permanently competitive
capacities were shut down or at least idled. If the economic recovery will be sustainable beyond
the first half-year 2010 is open and must be proofed during the next months.
032
PET Market was affected by a big drop in demand, mainly seen in Europe and the US. China
was less affected, but the domestic demand was lowered compared to previous years. The
European market for PET industrial filaments dropped in 2009 by some 30% against 2008.
This PET market is characterized as a global one, with significant overcapacities and ongoing
investments in Asia. This overheating trend jeopardizes the business roots of most of the
worldwide suppliers. To find markets for those excess production, volumes were sold on base
of marginal costs, which are actually subject of anti-dumping studies, to secure global and
fair competition between global suppliers to provide the best supply in terms of quality and
service.
The 2009 decrease in the PA 6.6 sector-especially in Europe-was partly absorbed by political
actions. The inherent weakness, depending to a big extent from the automotive sector (airbag
and tyres) was last year the big advantage for this specific fiber. The political support of the
automotive sector (especially in Europe through the car-scrap bonus) supports also the demand
for PA 6.6 filament yarns because the demand for replacement tires and for winter tires for the
new cars was not as much affected by the recession as the OEM market. For Greater Europe, we
calculate a demand of 170 KT (both for PA 6 and PA 6.6) , which is 28% below 2008. The drop
came mainly from other uses than tyre and airbags. The latter end-use was the least affected
segment during the crisis with -17%, also a result of the near connection to the automotive
production. The biggest segment in Europe for PA was tyre (incl. chafer fabrics = 59% market
share, besides airbags = 16% and other uses = 25%), driven by the high volumes in the CIS
region. For the rest of Europe, the part of tyre is accordingly below 50%, whereas the airbag
segment rises to 26% market share. The Forecast 2010 expects in Europe a recovery to some
205 KT all over Europe, mainly driven by tyres and other end-uses.
Special risks in terms of availability and costs arose for PA 6.6. from the raw material side.
The supply of raw materials is short (only few suppliers in the supply chain, partly with force
majeure) and results for some products like ammonia and especially butadiene in double digit
price increases since beginning of the year.Nevertheless, PHP feels well-positioned to assure
as the most relevant multi-industrial-filament supplier to assure on a long term basis the supply
of both, Polyamide 6.6 and Polyester, including developments for improvements of existing
products as well as for new products such as the high-performance PPS yarn and yarns based
on PLA polymer produced from natural resources.”
5.3 Polypropylene
The world polypropylene market decreased by 6.5% to 2.6 million tonnes, suffering from a
substantial increase in fiber grade prices from the second quarter and reduced consumer spending
for home textiles. In the United States, slow demand for carpet yarn and increasing substitution
by polyester have put additional pressure on the industry. Some delays in new capacity, e.g. Japan
Polypropylene Corp. and Mitsubishi Chemicals, are also evidence for the slowing consumption.
The underlying market definition does not take into consideration nonwovens, monofilaments,
tapes, slit film and fiberfill.
While staple fiber applications increased by 3.5% to 1.1 million tonnes, output of filament yarns
declined by 12.7% to 1.5 million tonnes. The industry was facing ongoing margin pressure due
to high raw material costs and the upstream industry could not pass these price hikes on. This
pressure has further supported the substitution of polypropylene by low-cost polyester yarns. As
low margins have forced producers to switch to niches, this could not compensate big-volume
end-uses. On top of that, the slump in carpet yarn demand was particularly responsible for
lower polypropylene spinning activities. This has mainly affected carpet yarn industries in the
United States where the output of polyester carpet yarn continued surging by 23.5% to 132,500
tonnes.
033
Polypropylene Fibers Production
1'200
'000 tonnes
1'000
800
600
400
200
0
USA
W.Europe
2005
2006
2008
2009
China
Turkey
Japan
L.America
ROW
2007
The double-digit decline of 15.0% to 965,000 tonnes of polypropylene filament and fiber in the
Americas is mainly due to strong losses in the United States for filament yarns that dropped
by 23.1% to 510,000 tonnes. The small-scale industries in Latin America almost reached its
previous year’s level of 200,000 tonnes. Meanwhile, Greater Europe succeeded in defending
its market position as second largest manufacturing region, extending its market share to 35%.
PR China, the dominating textile powerhouse, ended the year with a decline of 1.0% to 264,000
tonnes.
5.4 Acrylic
The acrylic fiber market has seen its first growth after four years of contraction and losing a
volume of around 825,000 tonnes from a record high at 2.7 million tonnes in 2004. In 2009, the
global output increased by 4.4% to 1.9 million tonnes. The output in Greater Europe was down
by 3.5% following the closure of the Montefibre plant at Porto Marghera in Italy. The volumes
in Latin America and in the Middle East were quite unchanged. The Asian contribution rose
by 10.0% to 1.14 million tonnes with double-digit increases in PR China, India and Taiwan.
The chart below shows major suppliers with Asia accounting for a 60% share of world output
followed by Greater Europe (32%) and the Americas (6%).
Acrylic Fibers Production
900
800
'000 tonnes
700
600
500
400
300
200
100
0
034
China
W.Europe Turkey
Japan
Taiwan
Thail.
1990
2000
2006
2007
2008
2009
India
Korea
ROW
The recovery of operating rates started in Asia and reached Europe in the second quarter whereas
the Americas did not witness any improvement. It was initially driven by stock rebuilding,
seasonal improvement and the lowest price differential with polyester in six years.
Price Indication of Acrylonitrile and Acrylic Fibers
3.0
US$ per kg
2.5
2.0
1.5
1.0
0.5
0.0 '01
'02
'03
'04
Price differential with PES
'05
'06
Acrylonitrile
'07
'08
'09
PAN-SF
5.5 Cellulosics
The cellulosic fiber market enjoyed a strong rebound, increasing by 7.7% to 3.8 million tonnes.
Staple fibers surged by 9.2% to 3.4 million tonnes while filament yarns further contracted by
5.4% to 351,400 tonnes. As in previous issues, data on the production of TENCEL ®, the thirdgeneration cellulosic fiber, is included in this survey.
Cellulosic Fibers Production
3.5
3.0
mill. tonnes
2.5
2.0
1.5
1.0
0.5
0.0
'70 '80 '90
Filament Yarn
'95
'00
'05
'09
Staple Fiber *
* since 2002 with Tence® included
The filament business continued its long-term decline due to lower output in Europe and in
the United States. The European contribution was down by 12.5% as Enka Group stopped its
textile viscose yarn production at its Elsterberg site in Germany. The facility, established in
1909, discontinued production in July 2009. This has resulted in the lay-off of 380 employees
after no new buyer could be found despite interest from PR China and India. Furthermore, the
Mogilev Synthetic Fiber Plant in Belarus, founded in 1930 and CIS’ only producer of textile
viscose yarn, reported technical problems as the equipment is deteriorated. In the United States,
manufacturing volume was down by 25.0% at 17,100 tonnes while the Asian output stagnated
035
at about 260,000 tonnes. The 37.7% drop in Japan at 18,000 tonnes could be compensated by
higher volumes in PR China. Meanwhile, India was stable with Century Textiles and Industries
Ltd restarting production of rayon tire yarn in July 2009.
Acetate tows, used in the manufacturing of cigarette filters, increase by 2.3% to 759,000 tonnes.
This sector’s stimulation, highly correlated to the growth of cigarette consumption, may be
surprising in the light of global efforts to restrict smoking. However, growth of the market is
driven primarily by population increases and rising wealth in emerging markets. Additional
dynamics may arise from substitution of unfiltered cigarettes and of polypropylene-based
filters as well as a marked trend towards longer cigarette filters. As almost every manufacturing
nation succeeded in lifting its output, the industry remained comparatively balanced in regional
terms. About 80% of output are located in Asia, Greater Europe and the United States. At the
same time, this segment is highly concentrated with three top producers (Celanese, Eastman
Chemicals and Rhodia) having a share of more than 80% including their joint ventures. A
significant addition of capacity was completed in December 2009 by Eastman Fibers Korea
Limited, a joint venture between Eastman Chemical Company and SK Chemicals Co. The new
27,000-tonne plant increases Eastman’s overall annual capacity to nearly 210,000 tonnes.
The production of viscose staple fibers soared by 11.4% to 2.7 million tonnes thanks to growing
demand in nonwovens, textile applications and flame-retardant products. More importantly,
fiber prices gained momentum in favour of viscose. Despite an increasingly unfavorable price
differential between viscose and polyester staple fiber, demand for viscose staple fibers kept
increasing. So, Lenzing Group, the leading producer of cellulose fibers, succeeded in increasing
fiber prices of at least 7% in May. This seems to be a firm basis for further capacity expansions
in 2010 by investing in its existing European and Asian sites as well as putting up a 80.000tonne greenfield complex in India.
Price Differential of Viscose Staple Fiber vs. Polyester Staple Fiber
1.8
US$ per kg
1.5
1.2
0.9
0.6
0.3
0.0
'01
'02
'03
'04
'05
'06
'07
'08
'09
Another major expansion will be carried out by Grasim Industries Ltd. The Indian company is
setting up a greenfield mill in Gujarat with an annual capacity of 80,000 tonnes. The US$216
million investment is scheduled to start-up in fiscal year 2013. Huge capacity expansions are
planned for PR China, lifting current capacity by 50% to 3.0 million tonnes. While the market
leader Fulida is adding 200,000 tonnes at its plant in Xinjiang, two major manufacturers in
Hebei Province, Tangshan Sanyou and Jilin, are expected to expand annual capacity by 100,000
tonnes. While the technological realization should be uncomplicated, the supply of raw material
and the search for new sales areas to operate these breathtaking investments at full capacity
might give cause for serious concern.
TENCEL®, the new age cellulose fiber with end-uses in the home textiles and clothing sector as
well as the nonwovens industry, could not keep up with the sector’s dynamic growth. Viscose
fibers strongly benefited from a shortage in cotton and an increasing requirement for comfort
that cotton could not meet. Aboveaverage consumption became apparent in PR China and India
as a result of rising household incomes.
036
“Lenzing’s commitment to viscose fibers is
being reflected in several investments across
the world.”
Mr. Friedrich Weninger
Management Board Member
Lenzing AG
Austria
www.lenzing.com
“Turbulent, but better than expected by many market players – this is how fiber year 2009
turned out in the end. Its first quarter was still marked by the global collapse of demand caused
by the recession. From the beginning of the second quarter on, however, Asian sales markets
decidedly recovered and China’s economic stimulus package showed effect. The economic
energy of powerhouse Asia had even gained momentum by the end of the year. All in all, 2009
for man-made fiber production closed with a robust growth of 7 % over 2008.
At Lenzing, the speedy recovery was not altogether unexpected. On the one hand, it was to be
expected that the emerging markets would overcome the financial crisis of 2008 fairly soon and
that their domestic consumption as well as their exports would provide fresh stimulus. On the
other hand, cotton production is reaching its limitations: competition for arable land is growing
due to rising food and biofuel production and ecological arguments provide reason for the longterm growth of man-made fibers.
Lenzing’s portfolio of three generations of cellulose fibers, Lenzing Viscose®, Lenzing Modal®
and TENCEL®, offers a broad and above all a high-quality choice of products. We fully
maintained our product range throughout the difficult period of 2009 and were able to supply our
customers, proving that we were good partners also in troubled times, whereas other producers
had to cut back production due to depressed prices. Our long-term market commitment allowed
Lenzing in 2009 to benefit from the recovery right from the start.
The unbroken strong demand for modal for textile applications was a major pillar of business.
Lenzing’s innovative applications, such as TENCEL® in home textiles, met with major success.
The first-time use of TENCEL® in powder form for moisture management in foamed plastic
opened an entirely new field of sales for Lenzing. The advantages of cellulose fibers, such as
their high absorbency and biodegradability, make them increasingly popular for nonwovens as
well. Strong demand, such as for wipes, even caused temporary supply bottlenecks in 2009.
We are convinced that our sales markets will continue to grow. Therefore, we continuously
implement our strategy of expansion. We will expand our production capacity for modal
fibers at our sites in Nanjing (China). In 2010, the fourth line at our Indonesian subsidiary PT.
South Pacific Viscose has taken up production. Expansion and remodelling projects will be
implemented. Even with repeated periods of slow-down over the next months and years, we
expect the upturn of man-made cellulose fibers in the end to be sustainable.”
037
5.6 Carbon Fibers
This technologically advanced fiber was negatively impacted by the financial crisis. Production
dropped by 15% to about 33,000 tonnes as nearly every end-use in the industrial, aerospace and
sports sectors suffered from lower manufacturing activity. A pleasant exception may be the wind
energy sector. Last year’s performance was certainly a difficult year for all companies engaged
in the carbon fiber chain. However, superior carbon fiber properties will branch out into new
markets and increasingly substitute traditional materials. The opportunities for composites
have been recognized around the world and have been attracting more newcomers to enter this
industry. Reportedly, five new companies from the Americas, Asia and Europe had initially
planned to come on-stream, but it rather seems that start of operation was postponed.
Like also established manufacturers did, e.g. Mitsubishi Rayon has postponed the commissioning
of its new US$125 million carbon fiber plant in Otake by one year. The capacity of 2,700 tonnes
is now expected to start-up in the fourth quarter of 2010. Meanwhile, capacity at subsidiary
Grafil Inc. in the United States was increased in 2009.
Nevertheless, adverse conditions will go along with this development arising from temporary
excess capacity and disappointments in consumption of some end-uses. First evidence has been
experienced in worsening business figures of the major carbon fiber producers.
According to the General Aviation Manufacturers Association, worldwide deliveries of general
aviation airplanes amounted to 2,267 airplanes in 2009, valued at US$19.5 billion, compared
with 3,967 units valued at record US$24.8 billion during this same period in 2008. Annual
deliveries of Airbus and Boeing, dominating the market for more than 100-seat commercial
planes, surged by 14.1% at 979 aircraft in 2009. Airbus expects 2010 deliveries roughly at the
same level while Boeing scaled back planned shipments by 15 to 20 aircraft this year. In the
first quarter of 2010, deliveries from Airbus increased by 5% to 122 and Boeing’s delivery of
108 planes dropped by 11%.
Aircraft Deliveries
1'000
800
600
400
200
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Airbus
Boeing
The new composite-intensive aircraft in commercial and military aerospace have still not
achieved its original target of consumption. Boeing’s B787, originally scheduled to enter
service in May 2008, had its first flight in December 2009 and is now scheduled for first
delivery in the fourth quarter of 2010. This composite-rich aircraft will have a strong impact on
the carbon fiber industry due to its composite structural weight of 52%. On top of that, Boeing
plans to ramp up production of its 787 Dreamliner to 2.5 a month by August 2010 to finally
build 10 of the jets each month by 2013. That could easily absorb more than 5,000 tonnes of
carbon fiber in 2013, expressed in today’s output, a single type of aircraft would then consume
about 15% of carbon fibers. Moreover, a number of new aircraft programs (Airbus’s A350 and
A320 successor, Boeing’s Yellowstone Project, Bombardier’s CSeries, United Aircraft’s MS038
21, Mitsubishi Regional Jet, C919 from Commercial Aircraft Corp. of China) entering service
between 2013 and 2016 will further boost demand for lightweight composite materials. In
addition to that, the outlook remains positive due to the Asian traffic growth, the increasing
number of low cost carriers and more retrofitting. Contrary to the general trend of using more
composites was the decision of Mitsubishi Heavy Industries Ltd. to use aluminium instead of
carbon fiber wings.
Wind power has continued its surging capacity additions. According to the Global Wind Energy
Council, wind power installations increased by 31% in 2009 to 158 gigawatts (GW).
Wind Energy Market
Megawatts (MW)
160'000
120'000
80'000
40'000
0
'95 '96 '97 '98 '99 '00 '01 '95 '03 '04 '05 '06 '07 '08 '09
This segment is increasingly gaining attractiveness for carbon fibers as the continuously
increasing average blade length requires the usage of lightweight materials. Between 2000 and
2009, the average blade length has doubled to about 45 meters.
Installed Wind Power Capacity
50'000
+27% *
Megawatts (MW)
40'000
+39% *
30'000
+8% *
+107% *
+15% *
20'000
+13% *
10'000
0
USA
Germany
China
Spain
India
Others
* Percentage: Newly added capacity in 2009 over 2008
Nearly three quarters of the wind power capacity is installed in the United States, Germany,
PR China, Spain and India. The Chinese wind energy market has again doubled and the nation
passed Spain to take the third place in wind power installations. A recent announcement that
PR China is to invest over US$160 billion in wind farms until 2020 shows the nation’s huge
potential. It has just started construction of the country’s biggest wind farm with an installed
capacity of 5.2 GW in Gansu Province. The US$17.6 billion investment is scheduled to come
on-stream end of 2010.
039
The October 2009 may turn out to be a groundbreaking month for the carbon fiber industry in
connection with the automotive industry. At present, the annual consumption of less than 2,000
tonnes is mainly addressing motorsports and luxury “super cars” in small batch series. At the
41 st Tokyo Motor Show, Toyota revealed its development project (LFA) - a vehicle with a carbon
fiber structure to learn how to deal with automotive lightweight constructions. Reduction of
fuel consumption and carbon dioxide emission is being vehemently discussed and this could
be achieved by reducing the vehicle weight and using carbon fiber composites for producing
primary automotive structures. Toyota considers weight reduction essential with specific focus
on electric cars to compensate for batteries. During that exhibition, carbon fiber manufacturer
SGL Group and automaker BMW Group announced the foundation of a joint venture to
manufacture carbon fiber and fabric for the automotive industry. The overall investment for the
joint venture will be US$340 million, including the construction of two new sites, one in Moses
Lake, Washington, for the carbon fiber production and the other in Wackersdorf, Germany,
for the subsequent fabrics. The polyacrylonitrile-based precursor will be produced by a joint
venture between SGL Group and Mitsubishi Rayon in Otake, Japan.
Composites offer so many advantages over traditional materials and the volume of 60 million
manufactured passenger cars and commercial vehicles in 2009 (2008: 69 million) makes
this a promising industry. Carbon fiber in automotive structural composites could reduce the
weight of car components by up to 70%. Furthermore, composites offer lower manufacturing
complexity. Finished assemblies with fewer parts cut manufactured costs and often accelerate
design completion and model introduction. Tooling for composite parts can be as much as 80%
less than for comparable metal parts. Finally, composites are superior in corrosion resistance for
any application. However, some aspects speak against a rapid substitution in series production
vehicles. The usage of advanced lightweight composites in primary automotive structures is
limited because carbon fibers are much more expensive than traditional materials. A serious
obstacle for car occupants as well as assurance companies is invisible accidental damages.
Furthermore, there is also not yet a resin molding process enabling carbon fiber to be massproduced for automotive use. A switch to carbon fiber from traditional metals would mean
significant redesigns of auto-assembly facilities and require companies to develop methods to
recycle the material. Finally, what will happen to the manufacturing plants of the car makers
when moving to carbon fiber instead of steel or aluminium? They would have to be scrapped and
the employees needed to be trained, because of lacking knowledge and experience in processing
of composites instead of metal-working.
5.7 Aramids
The markets of aramids comprise para-type aramid, used for a variety of reinforcements
reflecting its high tenacity and high strength, and meta-type aramid, equipped with superior
properties in heat resistance and flame retardancy. Last year’s production is believed to have
accounted for 64,000 tonnes, predominantly provided by U.S.based DuPont and Japan based
Teijin. Both companies have been dominating this industry in recent decades and continuously
expanding their capacities on global basis. In April 2009, DuPont has completed its US$100
million three-phase investment plan for meta-aramid fiber with commissioning a new facility
in Spain. Further manufacturing sites are located in the United States and at a joint venture in
Japan. Nevertheless, an increasing number of Chinese manufacturers has been entering this
market of high-tech fibers. In total, 6,900 tonnes of annual meta-aramid capacity are installed
at Yantai Spandex Co. Ltd. (3,400 tonnes), Sheng’Ou (Suzhou) Safety Protection Material Co
Ltd (2,000 tonnes) and Guangdong Charming Co. Ltd. (1,500 tonnes). New para-aramid fiber
capacity of 5,000 tonnes per year is scheduled to come on-stream at Sinopec Yizheng Chemical
Fiber Co. Ltd., Yantai Spandex and China Shenma Group Co. Ltd.
Consumption of para-aramid fibers, especially for tires and rubber reinforcements, started the
year flat as the automobile production declined. Later on during the year, demand for paraaramid fibers revived thanks to increasing production in the automotive industry and a firm
market for use in protective clothing and materials. Recovery in meta-aramid fibers was a little
time-delayed, particularly picking up in steelmaking-related end-uses. The period of sluggish
demand has caused manufacturers to boost efforts to develop new applications and to introduce
cost-cutting measures. For example, Belgium’s N.V. Bekaert S.A. and DuPont Co. have
040
developed a hybrid aramid yarn-steel cord reinforcing material for commercial truck and OTR
tire applications. Bauer Hockey, the world’s leading manufacturer of ice hockey equipment,
and DuPont have signed a long-term agreement that allows Bauer to market and incorporate the
Kevlar fiber into its neck protection. This in an exclusive two-in-one protective apparel piece
built specifically for the needs of today’s hockey players. Nearly a million registered hockey
players around the world are required to wear neck protection and the majority of those players
wear separate neck guard and base layer pieces.
This segment has been offering a multitude of growing opportunities in various end-uses such
as aircraft, automotive and tires, protective clothing, ballistics, friction, reinforcement material,
heat and cut resistance applications and civil engineering/geotextile. Although the outlook for
future growth still looks promising, a brand-new announcement from April 2010 may turn out to
become a substitute in protective clothing. A team of international scientists from Switzerland,
PR China and the United States has converted cotton T-shirts into a strong, lightweight and
flexible fabric of boron carbide - the third hardest material on earth. Although we will not have
bulletproof T-shirts soon, this groundbreaking study opens up unprecedented opportunities.
5.8 Spandex Yarns
The spandex industry has also been negatively impacted by the slowing textile consumption.
Last year’s output is believed to have dropped by about 6% to 330,000 tonnes. This translates
into a global utilization rate of around 57%. The chart below shows the rapid development of
the Chinese industry, ranking first with a capacity of 345,000 tonnes at the end of 2009. Due
to the increase of fine-denier production, spandex output in PR China surged by 16% to about
212,000 tonnes, partly due to increased exports at 27,591 tonnes. Thus, Chinese industry had an
average operating rate of more than 60%. Despite already existing surplus capacity, the industry
saw another capacity expansion of 26,000 tonnes in 2009 as the following four manufacturers
added new equipment: Jiangsu Shuangliang Group (12,000 tonnes), LDZ Spandex Co. Ltd.
(7,000 tonnes), Zhejiang Huahai Group (2,500 tonnes) and Shaoxing Sihai Spandex Co., Ltd.
(1,800 tonnes). Zhejiang Artex Chemical Co. Ltd. (3,000 tonnes) was last year’s only Chinese
newcomer. Nevertheless, current projects in PR China under construction or in planning stage
amount to around 60,000 tonnes additional capacity.
Spandex Installed Capacity
'000 tonnes
400
300
200
100
0
USA
1995
2003
W.Europe
1997
2005
PR China
Japan
1999
2007
Korea/Taiwan
ROW
2001
2009
Spandex activity in the Americas and in Europe started very slow, but has continuously improved
in the second and third quarter with operating rates beyond 80%. The slowdown of upstream
activity in the fourth quarter was the result of the completion of re-stocking. The western
hemisphere will only see capacity additions from Hyosung Corp. as the market leader intends
to further increase capacity at its Turkish mill and is to invest more than US$100 million in a
new spandex facility with an annual capacity of 10,000 tonnes in Brazil. In Brazil, Invista is
currently the only manufacturer of spandex and not able to meet the annual demand of about
25,000 tonnes.
041
6. Spun Yarn
The 2009 world output of yarns was up 4.0% to 61.8 million tonnes. The three
yarn types differently benefited from the worldwide recovery in demand. Filament
yarns increased 3.4% to 24.8 million tonnes, short staple yarn rose 5.1% to
32.9 million tonnes and long staple yarn remained at the low level of 4.1 million
tonnes.
Comparison of Yarn Markets
3.2
1990 = 1
2.7
2.2
1.7
1.2
0.7
1990
1995
Long staple yarn
2000
2001
2002
2003
2004
Filament yarn
2005
2006
2007
2008
2009
Short staple yarn
Filament yarns increased 3.4% to 24.8 million tonnes, of which carpet yarns (excluding polyester
carpet yarn) dropped 13.4% to 1.7 million tonnes, industrial yarns declined 6.9% to 2.4 million
tonnes and textile filament yarns were up 6.4% at 20.7 million tonnes.
Filament and Spun Yarn Output 2009 vs. 2008
35
30
million tonnes
25
20
15
10
5
0
Short Staple
Textile FY
Long Staple
Industrial FY
Carpet FY
2008
2009
Spun yarns still dominate the world market with a 59.9% share compared with 64.0% in 2000.
However, filament yarns have been producing higher dynamics. The average annual growth
rate over the period 1995 until 2009 accounts for 5.7% in the filament business and 2.6% in the
spun yarn industry. In 2009, output of filaments amounted to 24.8 million tonnes (+3.4%) and
spun yarns accounted for 37.0 million tonnes (+4.5%). The chart below shows the long-term
development of filament and spun yarns.
042
World Yarn Production
40
35
mill. tonnes
30
25
20
15
10
5
0
1980
1985
1990
1995
2000
2005
2006
2007
2008
2009
Spun Yarn
Filament Yarn
The below chart shows the leading manufacturing nations of filament and spun yarn. The
world market of 61.8 million tonnes is being dominated by PR China. The Chinese output
volume accounted for 39.7 million tonnes last year, equal to a market share of 64%. India has
produced 5.7 million tonnes, occupying a 9% share. The United States managed to achieve
a manufacturing volume of 1.9 million tonnes, followed by Taiwan with 1.5 million and
South Korea with 1.1 million tonnes. The rest of the world contributed 19% to the global yarn
production, corresponding to 11.9 million tonnes.
World Yarn Production
PR China
India
USA
Taiwan
Korea
ROW
043
United States of America
Cotton Production
Cotton Area Harvested
Cotton Consumption
Manmade Fiber Output
Spindles
Rotors
Spun Yarn Production
Textile and Apparel Jobs
Population (mid-year)
Textile & Clothing Imports
Textile & Clothing Exports
2008
2.8 million t
3.1 million ha
0.8 million t
2.8 million t
907,000
340,000
797,000 t
462,000
304,059,724
US$93.2 billion
US$16.2 billion
2009
2.7 million t
3.1 million ha
0.8 million t
2.3 million t
870,000
335,000
611,000 t
411.200
307,212,123
US$81.0 billion
US$13.6 billion
± in %
-3.2%
+1.6%
-2.4%
-16.7%
-4.1%
-1.5%
-23.3%
-11.0%
+1.0%
-13.1%
-16.0%
The U.S. textile industry continued its long-term contraction. The chart below shows best the
ongoing process leading to an increasingly weakening domestic textile and apparel industry.
The spun yarn output declined 23.3% and the production of manmade fibers was down 16.7%.
The overall textile sector employed more than 410,000 workers in 2009, down from 1.1 million
in 2000. In the coming several months, however, the number of ring spindles is expected to
be nearer to 930,000 due to mill re-openings. The market has been going through a transition
period for the past several years with plants curtailing machines and even closing plants and
now industry seems to be on the rebound with machines starting back up again.
U.S. Textile Plant Closures, Cumulated
700
600
500
400
300
200
100
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
The scope of 40 company closures in 2009 comprises several spinning companies, spun yarn
facilities and mainly nylon carpet yarn operations, weaving, knitting and finishing mills. This
has caused the loss of more than 60,000 textile and apparel jobs.
According to data from the U.S. Department of Commerce, textile and apparel imports have
declined by 13.1% to US$81.0 billion in 2009 with 39% of shipments from PR China. Total
U.S. exports dropped by 16.0% to US$13.6 billion with almost half of shipments targeting
Canada and Mexico. The chart below shows the long-term development of the U.S. textile and
apparel trade.
044
U.S. Trade Balance
100
90
80
US$ billion
70
60
50
40
30
20
10
0
1987
1990
1995
Trade Deficit
2000
Imports
2005
2009
Exports
The chart below represents the ten leading textile and apparel importing nations into the United
States. Last year’s volume of this group decreased by 6.8% to US$61.5 billion, but the share
further increased to 76%. Shipments of the other importers dropped by 28.4% to US$19.5 billion.
Spectacular reductions appeared for Mongolia, -95.7% at US$1.7 million, Jamaica, -94.3% at
US$0.9 million, Hong Kong, -80.4% at US$317 million and Macau, -79.2% at US$174 million.
Deliveries from CAFTA went down by 19.1% to US$6.2 billion.
Leading Suppliers to U.S.
US$ billion
PR China
-2.8%
Vietnam
-1.7%
India
-9.4%
Mexico
-16.4%
Indonesia
-5.2%
Bangladesh
-0.5%
Pakistan
-10.7%
Honduras
-21.9%
Cambodia
-20.9%
Thailand
-26.7%
0
5
10
15
20
2003
2004
2005
2007
2008
2009
25
30
35
2006
* Growth rates refer to 2009 vs. 2008
However, the United States still is significantly involved in the global textile industry as it is
the largest exporter of raw cotton. In the current 2009/10 season, 2.6 million tonnes of cotton
are designed for exports, that accounts for 35% of world cotton exports. Moreover, it is the
biggest textile and apparel consuming single country with annual retail sales in clothing and
clothing accessories stores of nearly US$210 billion in 2009, equal to a per capita spending of
US$679.
045
U.S. Clothing & Clothing Accessories Expenditures
800
700
US$ per Capita
600
500
400
300
200
100
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
* Sales not adjusted for seasonal variations, holiday and trading-day in clothing and clothing accessories stores
The focus of cotton industry in the United States has continuously changed in favour of exports
instead of local processing. While the domestic cotton demand hit its high in the 1997/98
season at almost 2.5 million tonnes, this volume has decreased to currently 760,000 tonnes.
At the same time, exports rapidly were on the upswing, at present accounting for 2.6 million
tonnes. In line with the declining local demand, the cotton cultivated area has dropped to about
3.0 million hectares – a size we have not seen in the last 25 years.
U.S. Raw Cotton Balance
4000
3500
'000 tonnes
3000
2500
2000
1500
1000
500
0
1990
Export
1995
2000
2005
2009
Use
However, a promising exception to this contraction process is Parkdale, one of the two largest
manufacturers of spun yarn in the world. The privately held company operates 28 plants in
the Carolinas, Virginia, Georgia, Alabama and Tennessee. It also has mills in Mexico and
Colombia. In addition to adding new equipment to one of its facilities in South Carolina, the
company has taken over most of Hanesbrands spinning operations and acquired three plants in
South Carolina and Georgia from Wellstone Mills. The company used to be one of its largest
competitors.
046
Mexico
Cotton Production
Cotton Consumption
Foreign Direct Investment
2008
125,000 t
403,000 t
261,200 t
109,955,400
US$23.2 billion
US$5.2 billion
2009
92,000 t
414,000 t
242,000 t
111,211,789
US$11.4 billion
US$4.4 billion
± in %
-26.4%
+2.7%
-7.4%
+1.1%
-50.7%
-15.2%
Mexico’s economy shrank by 6.8% in 2009, the worst result since the 1929 Great Depression.
This decline in GDP even outpaced the 6.2% fall during Mexico’s currency and debt crisis in
1995. Total exports dropped by 21.2% to US$230 billion. The recession in the United States
has led many companies to slow down operations as more than 80% of Mexican exports are
U.S.-bound. This dependence is even more overwhelming in textiles and apparel as nearly all
manufactured goods are targeting the northern neighbor. Nevertheless, Mexico moved back into
the world’s top-10 most attractive countries for foreign direct investments, receiving US$11.4
billion as U.S. companies seek low-cost production closer to home.
The continuing contraction of the textile and apparel supply has several reasons. The textile and
apparel exports to the United States fell from a record US$9.6 billion in 2000 down to US$4.1
billion in 2009. This was another 16.4% reduction in shipments to the United States last year. In
2002, a quarter of all U.S. textile imports came from Mexico and Central America and 13% from
PR China. Last year, PR China provided 39% of all U.S. clothing imports and less than 7% came
from direct neighbors of the United States. On top of that, Mexico’s textile and apparel industry
is losing domestic market share to other low-cost Asian countries. Probably the proximity to the
big U.S. market size has prevented so far serious attempts of most Mexican manufacturers of
textiles and clothing to export their products to the EU or to South America. Finally, almost half
the population is under the age of 25. This represents a potential for considerable demographic
and economic growth for the decades to come but holds, on the other hand, the necessity of
creating jobs. About half of the population lives on less than US$2 a day, consuming very cheap
Chinese clothing. But there is also a considerable number of consumers buying luxury apparel
from Europe. As the total consumer expenditure is believed to have decreased by about 20% to
US$578 billion, the national clothing market is estimated in the region of US$15 billion, down
from the former US$18 billion rating of the Mexican Clothing Industry (CNIV).
The sluggish demand for Mexican textile products has also negatively impacted the raw material
sector. The cotton area planted declined about 34% and current season’s production is predicted
to drop by 26.4% to 92,000 tonnes. This drop was attributed to adverse weather conditions
throughout the past summer and increased prices of fertilizers and pesticides, prompting cotton
producers to switch to more profitable crops.
However, looking with optimism to the future may be caused by two factors. In February 2009,
Wal-Mart de México, S.A.B. de C.V. has announced an unprecedented investment of $11.8
billion-peso (about US$900 million) to generate more than 14,500 new direct jobs and open
252 new units. Secondly, Francisco Mayorga was appointed as the Secretary of Agriculture.
The hope for the cotton sector comes from his reputation of rewarding declining sectors with
support. Calculating the cotton target price in U.S. cents per pound could spur the increase of
area planted up to pre-crisis levels.
047
Argentina
Cotton Production
Cotton Consumption
2008
131,000 t
169,000 t
47,800 t
40,481,998
2009
185,000 t
169,000 t
54,000 t
40,913,584
± in %
+41.2%
±0.0%
+13.0%
+1.1%
Argentina’s economy expanded by 0.9% in 2009, according to governmental information.
Favourable forecasts for its top crops, such as soybeans and corn, in the current season’s output
have supported the export-oriented agricultural sector. Anyhow, concerns may arise form PR
China, the world’s largest buyer of soybeans, due to its tighter fiscal policy.
In 2009, Argentina registered a trade surplus of US$17 billion, up 35%, while imports decreased
by 33%, far bigger than the 20-percent drop of exports. This improvement in Argentina’s
balance of trade is partly result of a series of measures to restrict imports since October 2008
after adopting new rules for anti-dumping and countervailing duty investigations. In 2009, antidumping investigations against Chinese imports of denim and new rubber tires were opened.
In addition to that, anti-dumping duties were imposed on imports of DTY from Indonesia and
PR China, on imports of polyester fiber from PR China and India, on imports of acrylic fiber
yarns from Indonesia and Brazil and finally on imports of certain fabrics from Brazil and PR
China. Unsurprisingly, clothing imports from PR China dropped by nearly 45% last year as a
result of these measures and the non-automatic import licenses system applied by the Argentine
Government to defend national industry and preserve jobs.
Argentina: Cotton Harvested Area
1'000
900
1,000 hectares
800
700
600
500
400
300
200
100
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
The current season’s cotton output of 185,000 tonnes is expected to be the best result in ten
years after cultivated area was increased by 47%. On the other hand, corn and wheat acreage
was reduced by 450,000 hectares or 0.7%. Despite a steadily falling clothing consumption,
domestic cotton use has significantly recovered from its historic low in 2001 at 62,000 tonnes
to 169,000 tonnes last year. Be that as it may, the garment retailer C&A has left the country as
it has not fulfilled its financial targets. C&A was in the country twelve years and had owned 20
stores. In Latin America, the retailer has presence in Brazil and Mexico.
048
Brazil
Cotton Production
Cotton Consumption
2008
1,193,000 t
0.8 million ha
914,000 t
412,700 t
196,342,587
US$2.4 billion
US$3.8 billion
2009
1,252,000 t
0.8 million ha
914,000 t
367,800 t
198,739,269
US$1.9 billion
US$3.5 billion
± in %
+4.9%
-2.7%
±0.0%
-10.9%
+1.2%
-21.8%
-9.2%
Brazil’s US$1.8 trillion economy shrank by 0.2% last year, its first negative annual result since
1992. The economy already returned to growth in the second quarter of 2009 after a six-month
recession. According to central bank estimates, the economy will expand by 5.8% in 2010. This
expansion should be buoyed by high rates of investment. Unemployment fell in December,
matching the record low set in December 2008, after adding nearly one million net payroll
jobs in 2009. In line with a steady improvement of last year’s consumer confidence, retail sales
were strong and well above estimates. Carrefour, the world’s second largest retailer, underlined
this growth as Chief Executive Lars Olofsson expects sales in Brazil to surge in the next five
years due to a local market of nearly 200 million consumers with a steadily growing purchasing
power.
In 2009, Brazil registered a trade deficit in textiles and clothing of US$1.6 billion, up 12.5%,
while exports decreased by 22%, far bigger than the 9-percent drop of imports. The below chart
shows the leading trading partners in the last year.
Brazil: Major Textile & Clothing Trade Volumes
1'400
US$ million
1'200
1'000
800
600
400
200
0
China
Argentina Indonesia
USA
India
Korea
Taiwan
Thailand Germany Paraguay Turkey
Others
Exports
Imports
Dominant supplier of textile and apparel products was PR China, occupying an almost 40%
market share. Chinese shipments of US$1.4 billion faced Brazilian deliveries to PR China of
US$79 million. Trade relations with India were even more unbalanced as Brazil purchased
goods from India worth US$313 million and just exported US$3 million in return. While
the majority of Brazilian textiles and garment were addressing the Americas, the Texbrasil
- Strategic Program of the Brazilian Textile Chain, that accounts for 17.2% of the country’s
processing industry GDP - created in 2000, has the objective of preparing Brazilian companies
to compete in the international market by enlarging the marketing base. In order to successfully
pursue this strategy, the decline in imports of textile and apparel machines by 25.5% to US$544
million in 2009 appears to be not instrumental. Despite a capable fashion industry and a leading
049
position in some textile sectors, e.g. ranking second in the global jeans production, efficient
machinery in operation is the key to success.
In mid-2008, the Brazilian Textile and Apparel Industry Association (ABIT) initiated a Strategic
Plan until 2023 with short, medium and long term actions and the following goals:
• modernisation of the productive structures,
• bigger output of products with higher added value,
• further export growth,
• combating illegal trade practices,
• reducing the taxation load.
If you want the advantages, you also have to take the disadvantages that are going with it.
Brazil was less suffering from the textile crisis than most other countries in the world as it
predominantly manufactures textile and clothing products for the domestic market, less
than 5% of total Brazilian sales are destined for exports. On the other hand, Brazil tries to
limit the accelerated growth of imports. However, triggering anti-dumping measures against
surging imports will be tough for the country’s 23,000 clothing companies, mostly small-scale
enterprises with no experience in anti-dumping procedures. Nevertheless, ABIT is committed
to support national industry.
In 2009, The Brazilian Foreign Trade Council (CAMEX) decided to apply definitive antidumping duties on viscose fiber imports from Austria, Indonesia, Thailand and PR China as
well as on imports of Chinese tires. In addition, The Brazilian Trade Remedies Department
(DECOM) initiated investigations regarding the alleged injurious dumping of polypropylene
exported from the U.S. and India, and regarding the alleged injurious dumping of synthetic
fiber blankets exported from PR China. DECOM further initiated an anti-dumping review on
imports of jute bag from Bangladesh and India, and a review of dumping duties applied on
polyethylene therephthalate exports from Argentina.
While the current season’s cotton growing area is down by 2.7% at 820,000 hectares, the
projected output is expected to increase by 4.9% to nearly 1.3 million tonnes. Higher yields
assure Brazil’s position as the world’s fifth biggest growing nation. This result may be result of
the biotechnology adoption and narrow-row cotton production as a second crop option. Narrowrow cotton planted area for 2009/10 could reach 50,000 hectares, expanding from 5,000 hectares
in 2007/08. This crop reaches maturity at least one month earlier than traditional cotton.
Colombia
Cotton Production
Cotton Consumption
2008
38,000 t
87,000 t
43,141,109
2009
30,000 t
93,000 t
43,677,372
± in %
-21.1%
+6.9%
+1.2%
Colombia’s industrial production dropped by 5.9% in 2009 and sales fell by 3.3%, while trade
surplus more than tripled to US$1.7 billion as imports fell by 17.1% to US$32.9 billion.
The textile industry was badly hit in 2009 by a slump in exports to Venezuela, following a
diplomatic dispute about the U.S. military presence in Colombia, and a 34.5% drop to US$248
million in exports to the United States, following the reduced textile consumption in the U.S.
This steep fall in textile exports has caused more than 50,000 job losses. Additionally, the
governmental targets for the cotton industry were not achieved. Already in the last season,
the Ministry of Agriculture and Rural Development announced a minimum guarantee price of
cotton produced in the season 2009/10 of five million pesos per tonne (about US$2.50 per kg).
The target was to increase the planting of cotton to reach at least 50,000 hectares annually and
to increase yields to 1,000 kg per hectare. Forecasts for the actual season notice a reduction in
cotton harvested area by 15.6% to 38,000 hectares, in cotton production by 21.1% to 30,000
tonnes and in cotton yields by 6.5% to 790 kg per hectare.
050
Colombia: Cotton Situation 2009/10
60
50
1'200
1,000 hectares
1,000 tonnes
kg / hectare
1'000
40
800
30
600
20
400
10
200
0
Cotton Area
Output
Target
Target
Actual
Actual
Yields
0
Reasons for the disappointing performance may be attributed to the global slowdown in textile
demand, but there are also some national shortcomings. Reportedly, cotton growers were facing
difficulties with bad genetically engineered seed that caused damage to crops. Moreover,
farmers must cope with higher production costs and limited financial scope for investments as
the majority of cotton land under cultivation is rented and about a third of the cotton farms are
smaller than 10 hectares.
Nevertheless, the textiles and apparel sector still is of particular importance to the national
economy. It provides more than 800,000 jobs, responsible for 22% of employment in
manufacturing. The industry covers the entire supply chain from cotton and synthetic fibers,
through spinning, weaving, knitting, finishing, dyeing and printing, to the manufacture of
garments and accessories. However, the increasing shortfall of cotton yarn and denim, leading
to textile imports of almost US$1 billion, could be replaced by local production and, hence,
help reduce poverty as Colombia still is a country where more than 50% of the total population
lives under such conditions. The economic environment might militate in favor of a higher
value added as Colombian workers at present occupy second place in labor productivity in
Latin America measured by the number of annually labor strikes and labor productivity. Above
all, labor costs are below the average in Latin America, accounting for about US$400 per
month. The average salary for a textile industry worker is US$274 per month in 2009, whereas
the minimum salary is US$221.
Peru
Cotton Production
Cotton Consumption
2008
28,000 t
98,000 t
29,180,899
US$2.0 billion
2009
26,000 t
93,000 t
29,546,963
US$1.4 billion
± in %
-7.1%
-5.1%
+1.3%
-28.0%
Peru’s economy was one of the few in Latin America last year to experience growth; GDP grew
by 1.1%, the slowest since 2001, after expanding by 9.8% in 2008. Measures of Peru’s central
bank to combat the effects of the global financial crisis were reducing the reserve ratio as well
as the benchmark rates to provide cheaper credit and encourage consumption.
051
Peru: Cotton Harvested Area
140
1,000 hectares
120
100
80
60
40
20
0
1980s 1990s 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
As cotton is considered the white gold of Peru, the domestic clothing industry has heavily
relied on this main input to grow its exports. While Peru has been a traditional cotton producer,
the above chart shows the area planted in the last decades. The average area under cotton
cultivation of 136,400 hectares in the 1980s has dramatically dropped to less than a third in
the actual season. Consequently, cotton production is expected at 26,000 tonnes in the current
season, less than half from the 2007/08 season. It seems that the former major export earner has
tremendously lost in weight and it is not the financial crisis to blame.
A bunch of factors has worsened the local cotton industry that is lacking an official government
policy to support cotton production. Cotton subsidies around the world, textile and apparel
dumping, better profit margins in other crops such as rice and corn, small-sized production units
preventing economies of scale and insufficient credit access have all contributed to this decline.
On top of that, strong concerns about Asian textiles coming into the country have increasingly
become important. According to the National Society of Industries’ Textiles Chapter, imports in
2009 accounted for US$708 million with 51% Chinese and 34% Indian origin.
Given these adverse conditions together with the international financial crisis, it came as surprise
that 184 textile and apparel manufacturers have started to export last year. Promperu, Peru’s
agency to promote exports and tourism, disclosed that the number of exporting companies
rose to 2,072 last year, mostly exporting cotton T-shirts and cotton blouses. Instrumental in
this international approach might be Peru’s recognition as quality supplier. As the number one
producer of alpaca and vicuna fiber, it has been supplying the best international brands of knitted
fabrics, e.g. Calvin Klein, Polo Ralph Lauren, Levy Strauss, Reebok and Saks Fifth Avenue.
Nevertheless, exports went down by 28.0% at US$1.4 billion. The leading exporting companies
include Topy Top, Devanlay Perú, Confecciones Textimax, Textiles Camones, Cotton KNIT,
Michell y Cía, Sudamericana de Fibras and Hilandería de Algodón Peruano. As the U.S. House
of Representatives approved the renewal of the Andean trade preferences program end of 2009,
it may offer an incentive to put more effort into the international market segment. Encouraging
is also the announcement of the National Society of Industries (SNI) that textile companies
have invested nearly US$700 million in the last five years and this propensity to invest is said to
continue. Latest example is the start-up of the Topy Top 30,000-spindle manufacturing facility
with a daily capacity of 20 tonnes of 100% cotton yarn.
Asia
Cotton Production
Cotton Consumption
052
2008
15.0 million t
18.5 million t
2009
14.2 million t
19.8 million t
± in %
-5.1%
+7.1%
Bangladesh
Cotton Production
Cotton Consumption
Yarn Consumption
Spindle Capacity
2008
9,200 t
816,000 t
760,000 t
7,200,000
154,037,902
US$10.7 billion
2009
10,900 t
871,000 t
820,000 t
7,600,000
156,050,883
US$12.3 billion
± in %
+18.5%
+ 6.7%
+7.9%
+5.6%
+1.3%
+15.4%
Bangladesh’s GDP growth is projected between 5.0% to 6.0% for the current fiscal year 2010.
The textile industry is the largest manufacturing sub-sector of the country’s industrial sector,
constituting 79% of the country’s total export earnings of US$15.6 billion. The textile sector
contains 350 spinning mills, 400 weaving mills, 310 dyeing and finishing mills, 800 knitting and
knit dyeing mills and 4,500 garment factories. The year 2009 started very bad for the national
spinning industry. In addition to the recovery from the impact of the global recession, textile
production has strongly declined due to a severe interruption in gas supply since March 2009.
According to the Bangladesh Textile Mills Association (BTMA), the textile sector consumes
70% of the total gas used by the private sector. While this sector needs 2,000 MW power per
day, the supply of not more than 1,400 MW power is 40% short. This bottleneck has increasingly
blocked industrial expansion and therefore the country crucially needs a large expansion in
generation capacity as well as an upgrading of transmission and distribution networks. If this
shortage will last for some time, the 2009/10 export targets for knitwear of US$7.2 billion and
woven products of US$6.5 billion seem to be questionable. Furthermore, local spinners were
confronted with losses and cumulating stocks in the beginning of 2009 due to an influx of yarn
from India which was 20% cheaper. They are now demanding to block yarn import through the
Benapole land port. Finally, a shortage of production workers in the industry has prevented
to meet the rising demand. The industry largely depends on foreign workers from Cambodia,
Nepal and Vietnam.
In the beginning of 2009, more than 10 out of 350 mills have closed down and several other
spinning mills have reduced their capacity by almost 50%. This sector’s annual production
capacity amounted to 1.6 million tonnes of yarn while the total yarn consumption in Bangladesh
was 820,000 tonnes in 2008/09. However, the country has made remarkable progress in the
backward linkage industry as 90% of the knit yarn demand is being locally met. The local
capacity for producing accessories for garments is also self-sufficient by now. Just the demand
of woven yarn still is relying on imports by the majority.
Apparel exports have significantly changed as knitwear exports exceeded woven apparel
exports in 2007/08 for the first time. In 2008/09, Bangladesh’s knit apparel industry continued
expanding more rapidly. This segment is vertically integrated to a greater extent resulting in
shorter lead times and savings in foreign currency by limiting imports of textile inputs. Turkey
with about US$7 billion is holding the second position after PR China that exported knitwear
worth US$27 billion in recent years. Bangladesh has taken the third position since last year,
overtaking India with US$5.5 knitwear exports. Knitwear which became the country’s top
export item for the last two years enabled the country to earn US$6.4 billion out of total exports
of US$15.6 billion in 2008/09 fiscal. In contrast, most of the yarns and fabrics for woven
garments have to be imported. Total apparel exports went up by 15.4% to US$12.3 billion in
2008/09, accounting for almost 80% of the nation’s total exports. Main apparel items were
T-shirt and trousers, amounting for half the total shipments. Exports in the second half of 2009
significantly lost momentum. However, Bangladesh’s export performance in 2009 to the United
States was quite robust, just declining by 0.5% to US$3.5 billion. An anticipated surge of orders
for low-priced products from the United States and Europe may lead to a strong rebound of
exports in 2010.
053
Bangladesh: Apparel Exports
14
3.0
12
2.5
2.0
8
1.5
6
1.0
4
0.5
2
0
million
US$ billion
10
1992/93
1995/96
Woven
Knit
2000/01
2005/06
2008/09
0.0
Employment
The outlook for Bangladeshi apparel exports is quite promising as Japan, willing to broaden its
supplier base at the expense of PR China, has already sourced more garment from Bangladesh.
During the fiscal year 2008/09, Bangladeshi garment exports rocketed upwards 165% to US$74
million compared to the same period a year ago. This market is believed to offer a huge potential
as apparel exports are considered to achieve a level worth about US$1.0 billion in the next two
years. In addition to that, clothing shipments will enjoy a duty-free market access to PR China
from July 2010 onwards.
Apart from long-awaited stimulus packages for the apparel industry, foreign buyers rate
Bangladesh as a lucrative destination for global apparel outsourcing as the country manufactures
quality items at cheap costs. Most global retailers like U.S. giant Wal-Mart, JC Penny, Zara,
Tesco, IKEA, Marks & Spencer, H&M, Uniqlo and Li & Fung have opened offices in Dhaka in
recent times. Further major brands like Puma, G-Star Raw and Espirit are expected to move to
Dhaka soon. This trend became apparent at the Knitexpo in Dhaka at the beginning of November
as a record 156 international buyers and investors attended the show. This exhibition turned out
to be a great success in terms of new investments. After the show until mid-April, at least 15
local and foreign companies announced investments of almost US60 million in garment mills,
creating about 30,000 new jobs. Amongst others, Germany’s Otto Group has signed a deal with
Grameen Trust to start a joint venture in textiles in Bangladesh to produce readymade garments
for the international market under “socially and ecologically sustainable conditions.”
Cambodia
2008
14,241,640
US$2.8 billion
2009
14,494,293
US$2.4 billion
± in %
+1.8%
-16.1%
Cambodia’s economic growth turned negative in 2009, accounting for -2.7% and representing
a sharp drop from double-digit growth rates during 2004 to 2007. The global economic slump
started its severe impact on Cambodia during the last quarter of 2008, especially on the garment
industry, tourism and construction. The garment sector is responsible for 90% of the country’s
exports and last year’s shipments fell more strongly than the reduction in demand in the United
States and Europe. Total textile and apparel imports into the United States declined by 13.1% to
US$81.0 billion, while Cambodian products suffered from a decline of 20.9% at US$1.9 billion.
This shows the vulnerability of Cambodia’s manufacturing base and the need to diversify the
economy.
054
The sharp 16.1% reduction in apparel exports at US$2.4 billion is mirrored by the number of
factory closures. Ninety-three garment factories closed and sixty temporarily suspended work
in 2009, affecting nearly 75,000 workers - close to a quarter of the national apparel workforce.
However, 55 new factories were also opened, creating 15,173 new positions. To combat the
crisis in the garment industry, several initiatives are underway. The Garment Manufacturers
Association in Cambodia will invest US$2 million in a training center to develop skilled labor.
The Asian Development Bank approved a US$24.5 million grant for the Ministry of Labor’s
project at total costs of US$27.5 million to improve the labor skill. Finally, governmental
support arises from a two-year tax holiday on profits for garment manufacturers. In addition,
the monthly 1% turnover tax for all garment factory expenditures has been suspended for two
years to improve cash flows.
Nevertheless, a major obstacle for backward integration of the garment industry to broaden the
national manufacturing base is Cambodia’s power supply facilities. The power prices are the
highest in the region. Therefore the government has established a Power Sector Strategy for the
period 1999 to 2016. According to Cambodia’s Deputy Minister for Industry, Mines and Energy
Ith Praing, the country “would have sufficient electricity by 2011 or 2012.” After Cambodia
has overcome its shortage in power supply, traffic lights may turn green for upstream textile
investments to increase local value added and reduce the dependence of fabric imports. Thanks
to several investments in hydropower plants from Chinese companies, the strategy appears to
come together. Cambodian Prime Minister Hun Sen appreciated China’s efforts for building
hydropower plants by adding in a speech “China is building batteries for Cambodia”.
PR China
GDP
Cotton Production
Raw Cotton Imports
Cotton Consumption
Spun Yarn Output
Short-Staple Spindles
Open End Rotors
National Trade Balance
FOREX Reserves
2008
+9.6%
7.5 million t
5.8 million ha
2.1 million t
9,6 million t
23.6 million t
21.5 million t
104.4 million
2.1 million
1,317,065,677
US$297.0 billion
US$92.4 billion
US$1,946.0 billion
US$185.1 billion
US$17.4 billion
2009
+8.7%
6.4 million t
5.0 million ha
1.5 million t
10.3 million t
26.3 million t
23.9 million t
110.0 million
2.2 million
1,323,591,583
US$198.2 billion
US$90.0 billion
US$2,399.2 billion
US$171.3 billion
US$16.9 billion
± in %
-14.6%
-13.9%
-27.7%
+8.0%
+11.2%
+11.4%
+5.4%
+3.8%
+0.5%
-33.3%
-2.6%
+23.3%
-7.4%
-2.6%
China’s gross domestic product increased by 8.7% to reach US$4.9 trillion in 2009 thanks in a
large part to massive stimulus measures, including the 4 trillion yuan (US$585 billion) stimulus
package, five interest rate cuts since September 2008 and US$1.4 trillion in new lending in
2009, representing an increase of 95.3% from a year earlier. The economic growth was mostly
driven by investments, consumption still is not predominant. The proportion of consumption to
GDP is less than 40% in PR China. Even though Chinese exports dropped by 15.9% last year,
the country overtook Germany to become the world’s largest exporter.
055
China: Textile & Clothing Export's Share
180
30%
150
90
60
10%
US$ billion
120
20%
30
0
0%
1993
1995
Trade Balance without T&C
2000
T&C Surplus
2005
2009
-30
T&C Export in % of Total
China’s total trade value topped US$2.2 trillion in 2009, down 13.9%. Of this total, the value
of exports was US$1.2 trillion with US$171 billion textile and clothing products including.
This industry saw its first decline of exports since 1998 but growth at a sharp rate in 2010 is
already predicted. In the first quarter of 2010, export of textiles and apparel surged by 15.2% to
US$39.2 billion. Global economic recovery and the full implementation of the China-ASEAN
free trade area effective from January 2010 will be the main drivers of this growth. Thanks to
its strong economic growth, South-East Asia is experiencing a jump in apparel retail sales.
The textile industry’s production value exceeded US$500 billion with profits worth more
than US$20 billion. The upstream spinning industry grew by 11.2% at 26.3 million tonnes
in the manmade fiber sector and by 11.4% at 23.9 million tonnes in the spun yarn business.
Total volume of yarns amounted to 39.7 million tonnes, up 11.5%. In total, PR China created
11 million new jobs in urban areas in 2009. Amazingly, employment in the apparel industry
grew even during the recession. At the end of 2009, the industry employed 4.1million people,
com¬pared with 3.8 million a year earlier although level of employment in the spinning and
weaving industry slightly fell. As the stimulus package had helped to expand domestic demand,
local sales started growing before export demand recovered.
The labor issue seems to arise as the most serious concern for the Chinese textile and apparel
industry due to increasing wages of at least 10% in 2010 and a looming shortage. When the
global downturn hit the country, 30 million migrants lost their jobs and returned home. A poll of
migrant workers showed that 62% will work in cities again, a drop of 6 percentage points from
2008. 30% of the migrant workers are still undetermined, up 6 percent from previous years.
Finally, 8% of migrant workers who have returned home will not work in cities again.
The Chinese cotton production declined by 14.6% to 6.4 million tonnes because of planted area
reduction in the range of 13.9% to 5.0 million hectares. Cotton imports dropped by 27.7% to 1.5
million tonnes, the lowest in the last four years, mainly attributed to weak demand for textile
products. Despite higher cotton prices, the in dustry will need to rely on imports to a greater
extent in 2010.
056
CNTAC is the national Federation of all textile-related industries and is a on-profit
organization formed on volunteer basis. The aim of CNTAC is to provide services in the
modernization of China’s textile industry.
“Restructuring and upgrade of the textile
industry continued in 2009. Achievements will
pose a solid foundation for the development of
‘the Twelfth Five-year’ Program.”
Mr. Du Yuzhou
President of China National Textile
and Apparel Council ( CNTAC )
PR China
www.english.ctei.gov.cn
“In 2009, with the support of central and local governments at all levels and the unceasing
development and innovation and hard work of staff and workers at large in the textile industry,
achievements have been made in both the restructuring and upgrade of the textile industry and
the quality and benefits of industrial economy have been evidently improved. The situation has
been stabilizing and picking up and is on the mend.
The key economic indexes of textile industry has bottomed out and come back up month by
month since February and the general trend is better and better. The output value of 54,000
enterprises above designated size has increased from the bottom of 2.63% in February to 10.30%
in December; the growth rate of export delivery value has narrowed from -8.43% to -3.23%;the
export increased by 7.74% in December; the growth rate of domestic sales has rose from 6.63%
to 16.33% in December; the growth rate of gross margin in January and February is -11.01%
and the accumulated gross margin has increased by 25.39% by the end of November over the
same period last year. The growth rate of textile and clothes export of the whole industry has
narrowed from -14.78% as of the end of February to -9.65% as of the end of December, the
export is USD 171.332 billion in the whole year. With the support of domestic market, both
the production and sales of textile industry have been rising steadily since 2009. Among major
categories of products, the output of yarn is 24.05 million tons, up 12.71% over last year; the
output of chemical fiber is 27.26 million tons, up 14.31% over last year; and the output of
cloth is 56.7 billion meters, up 5.27% over last year. The pickup of the industry has promoted
the steady growth of investment in fixed assets. The total investment in fixed assets is RMB
310.2 billion, up 13.86% and 7.11 percent higher over the same period last year; the number
of new projects hits 7731, up 27.85% and 35.71 percent higher over the same period last year.
Industry restructuring is further accelerated and the industry of industrial textile continues to
grow quickly. In 2009, the output of industrial textile fiber hits 7 million tons, up 17% over last
year; and the growth rate of non-woven cloth is over 20%, far higher than the growth rate of
other industries.
057
In the first quarter 2010, the gross industrial output value of enterprises above designated size
in textile industry rose by 26.98% as compared to the same period last year, the export delivery
value rose by 14.26%, and domestic rose by 30.33%; the output of yarn is 5.6665 million tons,
up 19.62% over the same period last year; the output of cloth is 13.229 billion meter, up 17.64%
over the same period last year; and the output of chemical fiber is 6.86 million tons, up 20%
over the same period last year; the export of the whole industry is USD40.32billion, up 15.44%
over the same period last year.
2010 is not only a key year when the textile industry of China continues to cope with international
financial crisis and accelerate transformation of mode of economic development, but also an
important year when it achieves the objective of “the Eleventh Five-year” Program to the full
and lays a solid foundation for the development in “the Twelfth Five-year”. In general, the
industry will continue to be on the mend; however, the situation confronted it is extremely
complex. Internationally, the large-scaled financial incentives and expansionary monetary
policy of countries has enabled slow recovery growth of world economy and international
financial market becomes more and more stable. In the long run, the in-depth development
of economic globalization and major change and adjustment in world economic pattern are
pregnant with new opportunities for development. However, the foundation for recovery of
world economy is still weak, as the rate of unemployment stays high in high income country,
the recovery of international market is still subject to more restrictive factors, the risk in
financial fields hasn’t been eliminated completely, trade protectionism is evidently gaining
ground, the external environment is not stable, there are still many uncertain factors, and a
range of unbalance and deep-seated contradictions arising in international financial crisis
haven’t been completely solved. Domestically, China is still in a period of important strategic
opportunities, the foundation for economic recovery and pickup is further consolidated, the
market confidence is enhanced, the progress in building of a well-off society in an all-round way
and new industrialization continues to be accelerated, and the expansion of domestic demand
and improvement of people’s livelihoods have brought greater development opportunities for
the development of textile industry. Driven by domestic demand, the industry will continue to
pick up steadily. In the same time however, as the development of domestic economy is still
under the influence of imbalance and deep-seated contradiction accumulated due to long-term
extensive development as well as the influence of dilemma of controlling inflation expectations
while maintaining the consistency of policies and rise of cost, it is very difficult to maintain the
growth rate of the first quarter in the second half of the year, practically on a lower development
base of the first two quarters of last year.
China textile industry will endeavor to promote the healthy and sustainable development of
textile industry and maintain the prosperity and stability of global textile and clothes market by
unremittingly accelerating restructuring and transformation of development mode, advancing
technical innovation and R&D, promoting science and technology and brand value, and
meanwhile enhancing energy saving and emission reduction and environment improvement,
promoting international cooperation on every side and opening more fields to the outside world
and safeguarding free trade. ”
058
India
Cotton Production
Cotton Consumption
Spun Yarn Output
Short-Staple Spindles
Open End Rotors
2008
4,921,000 t
9.4 million ha
3,865,000 t
2.5 million t
3.9 million t
41.2 million
652.077
1,140,566,211
US$22.4 billion
2009
5,117,000 t
10.3 million ha
4,180,000 t
2.8 million t
4.1 million t
41.7 million
665.645
1,156,897,766
US$21.5 billion
± in %
+4.0%
+9.1%
+8.2%
+10.5%
+3.0%
+1.3%
+3.1%
+1.4%
-4.3%
India’s economic growth is expected to amount to 8.2% in fiscal 2010 after GDP grew by a
relatively modest 6.7% in 2008/09. The country’s rebound from the global crisis is gaining
momentum while stimulus measures of expansionary fiscal and monetary policies taken by the
government will be gradually rolled back. While trade flows have returned to pre-crisis levels
in the fourth quarter of 2009, increasing private consumption and investments are likely to
underpin growth over the next two years. The positive developments could be offset by signs
of increasing inflation, accounting for 15.0% in December 2009 as compared with 9.7% a year
ago.
The textile industry is strong in the conventional fiber-to-garment sectors with a surplus cotton
balance. The textile and apparel industry is largely cotton-based contributing about 14% to
the country’s total exports, 14% of industrial production, 4% to GDP and provides direct
employment to more than 35 million people and indirect employment to 45 million people.
The Indian textile industry includes both an “organized” sector (large-scale spinning units
and composite mills) and an “unorganized” sector (small-scale spinning units, power looms,
handlooms, hosiery units). More than 95% of yarn is produced in the organized sector. The
weaving industry is mainly supplied by the unorganized sector, with power looms accounting
for 60%, handlooms for 18% and hosiery units for 17% of total cloth production. The organized
sector weaving mills account for the remaining 5% of cloth production.
India: Yarn & Fiber Production
4.5
4.0
Mill. tonnes
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1994/95
Manmade Staple Fiber
2000/01
Manmade Filament
2004/05
2009/10
Spun Yarn
059
The total output of spun yarns and manmade fibers amounted to 6.9 million tonnes, consolidating
its second position in world textile industry. While spun yarn output modestly grew by 3.0%
to 4.1 million tonnes, manmade fibers increased by 10.5% to 2.8 million tonnes, in particular
due to an increase in the polyester and viscose sector. This industry plays a vital role in the
local economy, constituting 4% of GDP, employing about 90 million people in textile and allied
sectors, and exports account for about 14% of the country’s total foreign revenues.
According to the Ministry of Textiles, the number of installed spindles increased by 0.8%
to 37.0 million spindles, with 4.3 million (+0.6%) spindles in the small-scale industry not
included. Installations of open-end rotors were lifted by 1.7% to 491,000 at the end of last year,
again small-scale installations of about 180,000 (+3.9%) rotors not included. The total number
of spinning mills went up by 0.9% to 3,102.
India: Cotton Yields
Yield kg / hectare
800
600
400
200
0
1985/86 1990/91 1995/96 2000/01 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Target
Yield prospects were adversely impacted by a three to four weeks delay in cotton planting and
less-than-favourable weather conditions compared with last season. Therefore, cotton yields in
the new 2010/11 season are expected to increase by 6% to 528 kg per hectare. However, cotton
yields still are on quite a high level compared with results prior to cultivation of Bt seeds. Since
the introduction of Bt cotton in 2002, area under Bt cotton has reached nearly 90% of the total
cotton area in 2009/10, amounting to 10.3 million hectares. Nevertheless, the official target to
achieve yields of 800 kg per hectare by 2010 seems to be a little too challenging in the short
run.
060
Indonesia
Cotton Production
Cotton Consumption
2008
7,000 t
435,000 t
1.1 million t
237,512,355
US$10.4 billion
2009
7,000 t
446,000 t
1.1 million t
240,271,522
US$9.3 billion
± in %
±0.0%
+2.5%
+1.1%
+1.2%
-10.1%
The economy in Indonesia, Southeast Asia’s largest economy, expanded by 4.5% last year,
slowing from 6.1% growth in 2008. Lower growth was partly attributed to a 15% drop in
exports and investments following the financial crisis. However, the economic growth was
mainly supported by high consumer spending,which contributed 58.6% of the country’s GDP of
US$600 billion and less reliance on exports. The 2010 budget deficit may increase to US$14.2
billion after adding US$4.7 billion additional subsidies, of which electricity and fuel subsidies
will be raised by US$4 billion in the revised budget.
Indonesia: Exports of textiles and clothing
25
rg
Ta
US$ billion
et
20
15
10
5
0
1990
1995
2000
2005
2010
2015
The nation’s textile industry was suffering from the economic slowdown in the United States
and Europe as textile and clothing exports fell by 10% to US$9.3 billion. High electricity
prices made ready-made garments more costly what has favoured the arrival of a flood of cheap
Chinese goods. As a consequence, the share of local textile products in the national market
further went down to about 50% by end-2009 from 65% in 2008. Additionally, the majority of
manufacturers has turned into trading houses as they believed selling imported garments would
be more profitable then producing domestically. So, as many as 155 textile producers went
bankrupt in the last year. This move was based on the expectation that the ASEAN free-trade
agreement with PR China, coming into effect from January 2010, would even quicken low-cost
imports from PR China. Indonesia is among the six members of the Association of South East
Asian Nations (ASEAN) that agreed to remove the duty under a free trade pact from 2010.
The other members that will implement zero-duty include Brunei, Malaysia, the Philippines,
Singapore and Thailand. Vietnam, Cambodia, Laos and Myanmar will have five more years
until 2015 before dismantling their barriers.
Under existing law from January 2009, controls were imposed on imports into Indonesia for a
number of products, amongst others for garment, to protect the domestic market from smuggled
goods. According to the regulations, imports of goods in these categories may only enter
Indonesia through five designated ports as well as international airports. However, the Trade
Ministry revoked 1,104 import licenses last year because their holders had stopped importing
goods.
061
Nevertheless, there were also some encouraging company news. Synthetic fiber manufacturers
like PT Teijin Indonesia Fiber Corp., PT Indonesia Toray Synthetic and PT Sulindafin - have
invested around US$7 million in new machinery to cut costs. South Pacific Viscose, member of
Lenzing Group, is in the progress of expanding capacity at costs of US$150 million. The new
line to produce viscose staple fibres for textile and nonwovens end-uses will come on-stream
mid-2010. South Korea-based textile and garment manufacturer Sae-A Trading Co. Ltd. will
build a US$200 million textile plant in West Java.
Given the necessity to further upgrade the mostly outdated textile machines, it appears
surprisingly that the Industry Ministry has reduced the budget for its machinery revitalization
program by 40%. This year, the government is allocating a total of US$22.3 million for industrial
revitalization, including US$15.9 million for textile firms. Under the remaining Scheme One,
the government provides 10% discounts for manufacturers who want to purchase new machines,
while Scheme Two providing soft loans was scrapped.
Japan
Cotton Consumption
2008
98,000 t
127,288,419
1,070,904 tonnes
US$7.8 billion
US$32.5 billion
2009
70,000 t
127,078,679
834,894 tonnes
US$6.4 billion
US$31.9 billion
± in %
-28.6%
-0.2%
-22.0%
-17.6%
-1.8%
Japan, the world’s number two economy, contracted 5.2% in 2009. The country has held this
position for more than 40 years but risks ending 2010 in third place after the United States
and PR China as it struggles to cope with renewed deflation, a strong yen, sluggish domestic
consumption and a shrinking population. Along with the improving labor market, reaching a
record high of 5.7% in July last year and declining to 5.2% in December, Japan’s consumer
spending continued to steadily grow since mid-2009. This figure represents a key indicator of
private consumption which alone accounts for about 60% of Japan’s economy. Despite shrinking
tax revenues, measures aimed at stimulating domestic demand are needed and the government
agreed on a US$81 billion stimulus package end of December.
The below chart shows that all textile-related sectors have been on the decline until last year,
when the downward trend has slowed considerably. In December 2009, Japan witnessed the
first monthly increase in manmade fiber production in two years. Nevertheless, last year’s
output dropped by 22.0% at 835,000 tonnes. Spun yarn output continued dropping to below
60,000 tonnes.
Japan: Quarterly Industrial Production
140
120
2005 = 100
100
80
60
40
20
0
2003
2004
Textile machinery
062
2005
Spun yarn
2006
2007
Manmade fibers
2008
2009
A new jump in the yen’s value against the American dollar made imports less expensive in local
currency terms, offering opportunities for price reductions on the retail market. Total textile
and apparel imports slightly decreased by 1.8% at US$31.9 billion. As corresponding exports
dropped by 17.6% to US$6.4 billion, trade deficit continued increasing to hit a new record at
US$25.5 billion. The preponderance of China-made clothing remained with an annual market
share of more than 80%, an achievement Chinese industry has been enjoying already since
2003. However, the Japanese government had expressed its intention to broaden its purchasing
base by moving clothing import flows from PR China to other Asian countries. The target to
reduce Chinese imports to 50% from currently 82% opens up a roughly US$10 to 15 billion
opportunity that garment facilities in Bangladesh, Cambodia, Indonesia, Thailand and Vietnam
might tap. As a consequence, imports from Vietnam already surged by 19.8% in 2009. A strong
increase in deliveries also took place from Bangladesh and Cambodia, although from much
lower levels. India, Indonesia, Malaysia and Thailand also experienced a steady growth in
exports to Japan in the last two years, as a clear sign that China may progressively lose its edge
on this market.
Japan: Textile & Clothing Trade
35
30
US$ billion
25
20
15
10
5
0
1987
Imports
1990
1995
2000
2005
2009
Exports
063
Korea, South
Cotton Yarn Production
Spindles & Rotors
2008
217,304 t
1,135,204
1.4 million t
48,379,392
US$11.7 billion
US$13.3 billion
US$8.8 billion
2009
222,963 t
1,144,724
1.4 million t
48,508,972
US$11.5 billion
US$11.6 billion
US$7.4 billion
± in %
+2.6%
+0.8%
+1.7%
+0.3%
-1.9%
-12.6%
-15.8%
South Korea’s economy modestly grew by 0.2%, the slowest growth since the Asian financial
crisis in 1998, when GDP contracted by 5.7%. The economy has witnessed a record-high trade
surplus of US$40.4 billion in 2009, thanks partly to US$35 billion (-40.9%) lower imports in
value terms following the reduction in international crude oil prices. Despite declining exports
by 13.9% at US$363.5 billion and consumer spending amid increasing unemployment, the
economy recovered faster than expected, benefiting from an aggressive government stimulus
package and a series of interest rate cuts. Although the government considers job creation its
top priority, a survey by the Korea Chamber of Commerce and Industry showed that the top 500
companies plan to curb the size of employment.
The domestic cotton yarn market remained relatively strong in 2009. While cotton yarn imports
increased by 9.1% to 189,000 tonnes, the national output of cotton yarn was up by 2.6% to
223,000 tonnes. More importantly, the number of spindles and rotors was lifted by 0.8% to 1.14
million, stopping the long-term contraction in the upstream spinning industry. The subsequent
processing seems to have shifted towards light-weight fabrics as a 8.9% reduced number of
looms (285 units) has significantly increased output by 49.2% to 27.8 million sq. m.
Total textile and apparel exports fell by 12.6% at US$11.6 billion, accounting for a 3.2% of
national exports. An above-average decline occurred in shipments to the United States. Last
year’s deliveries went down by 28.0% at US$806 million. The United States-Korea Free Trade
Agreement, signed already on June 30, 2007, might produce relief as almost 95% of bilateral
trade in consumer and industrial products would become duty free within three years of the date
the FTA enters into force. However, as of today, it has not been approved by the U.S. Congress
and the National Assembly of South Korea.
Korea: Cotton Yarn Status and Installed Spindles & Rotors
600
4.0
'000 tonnes
3.0
400
2.5
300
2.0
1.5
200
1.0
100
0.5
0
0.0
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Cotton Yarn Imports
064
Cotton Yarn Production
Spindles & Rotors
million spindles
3.5
500
Malaysia
Cotton Consumption
2008
46,000 t
US$12.9 billion
25,274,133
US$3.1 billion
2009
49,000 t
US$6.5 billion
25,715,819
US$2.5 billion
± in %
+6.5%
-49.9%
+1.7%
-19.9%
Malaysia, Southeast Asia’s third largest economy, shrank 3.0% in 2009 compared to a growth
of 4.7% in 2008. The country s approved factory investment declined in 2009 as companies
delayed projects amid a global economic slump. Approved investments dropped by about half
to US$9.6 billion last year. Foreign investments halved to about US$6.5 billion, of which three
quarters was for new investments and the rest for expansion and diversification. As nearly
70% of investments approved by the Malaysian Industrial Development Authority were foreign
investments, current year s target is to raise domestic investments. To achieve the target, the
ministry will launch frequent domestic investment promotions and offer attractive packages for
local investors besides creating a conducive business environment.
Malaysia: Foreign Direct Investment
US$ billion
15
10
5
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
The Malaysian textile industry is focused on producing medium- to high-end apparel. The
industry consists of primary textiles, including polymerisation, spinning, weaving, knitting
and wet processing, made-up textiles, made-up garments and textiles and clothing accessories.
More than 600 companies are involved in the four segments. In addition, about 1,000 small
textiles and apparel companies, which are exempted from having to obtain manufacturing
licences, are in operation. They are mostly involved in manufacturing of made-up garments.
Textile and clothing exports of US$2.5 billion accounted for 1.6% of Malaysia’s total exports
of around US$155 billion in 2009. The export-driven industry suffered from a 29% decline
of shipments to the United States at US$473 million. Without the advantages of low labor
costs and a large domestic market enjoyed by some of its Asian competitors, the industry s
future appears to lie in specialized, high value added garments and home textiles, including the
development of own brands. A competitive disadvantage for the Malaysian textile industry is
also its minor contribution to the country’s exports. Therefore, the domestic textile and apparel
industry will most likely only fractionally benefit from the second economic stimulus package,
worth US$17.3 billion. To reduce the cost of doing business, the government has exempted levy
payments to the Human Resources Development Fund for six months for workers in the textile
industry with effect from February. The levy rate was also reduced by half a percentage point
to 0.5% for a two-year period from April 2009.
065
Pakistan
Cotton Production
Cotton Consumption
Balance of Trade
2008
2,050,200 t
2.9 million ha
2,449,000 t
171,852,793
- US$21.9 billion
US$10.6 billion
2009
2,057,000 t
3.0 million ha
2,558,000 t
174,578,558
- US$14.2 billion
US$9.6 billion
± in %
+0.3%
+5.3%
+4.5%
+1.6%
+35.2%
-9.6%
Pakistan’s GDP growth rate in 2009 was about 2.0%. Inflation, jumping to 23.3% in December
2008 from 8.8% a year ago, was 10.5% in December 2009. The prospects of returning to
macroeconomic stability improved in the second half of 2009 with most key indicators
continuing the positive trends that began in the second quarter of last year. Although textile
and apparel exports dropped by 9.6% to US$9.6 billion in 2009, this sector’s significance in
earning foreign exchange has further increased, now accounting for almost 55% of total national
exports. Furthermore, the US$9.0 billion trade surplus in textiles and clothing is essential for
the national economy.
Cotton is vitally important to the economy as the sector is providing livelihood to more than
10 million farming families. The country is the fourth largest producer of cotton and the third
largest user of cotton. In the actual season, cotton was the only major crop to see an increase
in the cultivated area. As a consequence of favourable price signals, the area under cultivation
increased by 6.0% to 3.0 million hectares, however, still 200,000 hectares below target.
Meanwhile, production is projected to remain unchanged at nearly 2.1 million tonnes, leading
to a reduction in yields from 720 kg per hectare in 2008/09 to 680 kg.
The textile industry, accounting for 40% of the industrial employment, has struggled to revive
growth amid a global slowdown in demand, power shortages, increasing rising interest rates
and militant turmoils. At least 100 textile spinning mills closed in the past two years and a
million people lost their jobs, according to the All-Pakistan Textile Mills Association.
In an attempt to tackle existing problems and to safeguard employment in the long run, the
government of Pakistan has announced its first-ever five-year National Textile Policy in August
2009, setting the textile and apparel export target at US$25 billion by the fiscal year 2014.
Important measures to boost exports comprise low-interest rate loans, duty drawbacks, R&D
subsidies and the creation of a textile investment support fund (TISF), technology upgradation
fund (TUF), infrastructure and skills development, zero tax on exports and tax-free import
of machinery. In addition to that, energy supply and costs are also intended to improve. The
government plans to add a total of 5,000 megawatts to the national grid by 2013 as the country
has faced power shortages of as much as 4,500 megawatts a day, or 30% of capacity. An initiative
already for the current fiscal year is to provide US$90 million interest rate subsidy to the textile
industry. Under the scheme banks will provide subsidized loans at 5% interest rate to export
oriented textile units.
Sri Lanka
2008
21,128,773
US$3.5 billion
2009
21,324,791
US$3.3 billion
± in %
+0.9%
-5.6%
Sri Lanka’s economic growth slumped to an eight-year low of 3.5% in 2009, down from 6.0%
in 2008, as the almost three-decade civil war and the global recession took their toll. However,
066
the country made an extraordinary recovery in the second half of the year. As the war ended last
May, Sri Lanka entered 2010 with an unprecedented opportunity for higher growth, although
the rebuilding of the US$41 billion economy will be most challenging. In an attempt to support
reconstruction and to encourage investments, the central bank will keep interest rates low.
Enhanced investor confidence in the economy due to a stable security situation has already been
witnessed with foreign exchange reserves soaring from a low level of US$1.1 billion in March
2009 to a historic high of US$5.1 billion by the end of 2009.
Sri Lanka: Monthly Textile and Clothing Exports
400
US$ million
300
200
100
0
+9.1%
'Jan
05
+8.9%
+6.0%
'Jan
06
'Jan
07
-5.6%
+3.8%
'Jan
08
'Jan
09
The clothing industry accounts for about 10% of Sri Lanka’s GDP and employs around 200,000
workers. In 2009, garment exports dropped for the very first time, down by 5.6% to US$3.3
billion. The comparatively moderate decline is due to strong demand from the European
Union while deliveries to the United States dropped by 17.7% to US$1.2 billion. However,
European Union withdrew the ‘GSP Plus’ preferential trade benefits from Sri Lanka because
of the country’s poor human-rights record. The decision from February 2010 means that from
mid-August the country will lose its benefits of zero duty access to the EU since 2005. Losing
this sales region where the majority of apparel exports were shipped to will have an impact on
the in¬dustry as costs will go up by about 10%. The expansion of a small sector of industry,
however, may give new dynamics after Continental AG has set up a joint venture to produce
industrial tires for the North American and Asian markets.
Taiwan District
Cotton Consumption
Balance of Trade
2008
180,000 t
22,920,946
US$15.2 billion
2.1 million t
US$10.9 billion
2009
180,000 t
22,974,347
US$29.0 billion
2.1 million t
US$9.3 billion
± in %
±0.0%
+0.2%
+91.3%
+0.3%
-14.3%
Taiwan’s economy shrank by 2.5% last year, compared with stagnation in 2008 by 0.1%.
Private consumer expenditures in 2009 increased by 1.5% to about US$235 billion driven partly
by government stimulus measures. Consumer confidence has returned to pre-crisis levels,
achieving the best level in 57 months in March 2010. In line with economic recovery, Taiwan’s
unemployment rate fell to 5.7% in December 2009, the lowest in 11 months, while the average
jobless rate for last year reached a record high of 5.9%. Additionally, retail sector revenues for
last year were up 1.6%, a turnaround from the drop experienced in 2008.
067
The contraction of the national textile and apparel industry continued undamped, showing a
decline along the textile value chain. The textile industry ended with an unchanged volume of
2.1 million tonnes manmade fibers and 204,000 tonnes cotton yarns produced. Textile production
further followed the declining apparel production. Consequentially, textile and clothing exports
declined by 14.3% to US$9.3 billion, accounting for 4.8% of Taiwan’s total exports.
Taiwan: Industrial Production Index
250
2006 = 100
200
150
100
50
2000
2001
Textile
2002
2003
2004
2005
2006
2007
2008
2009
Apparel
Taiwan’s total textile and apparel production value was NT$365.7 billion (US$11.1 billion) in
2009, down 15.7% from the 2008 level. While the value reached NT$167.8 billion in the first
half of 2009, second half’s value was able to increase by 17.9% to NT$197.9. According to
the Industry and Technology Intelligence Services, the textile industry is expected to rebound
in 2010. The industry’s output will gain momentum and is expected to increase its production
value by 17.6% to NT$430 billion. This forecast bases on the assumption that global economies
will be picking up again. Moreover, the integration of various sections of the industry and
higher production and R&D levels will also contribute to the better performance of the sector.
Finally, the industry should concentrate on higher value-added products such as fabrics made
with the use of nanotechnology and create new business niches by developing advanced fabrics
and textiles.
Taiwan: Value of Textile and Apparel Production
700
600
NT$ billion
500
400
300
200
100
0
1997
2002
2008
2009
2010
2015
This direction would be in line with the governmental textile strategy for 2015. The goal is to
adjust the ratio of apparel, household and industrial textiles from 68:12:20 in 2008 to 50:17:33
in the year 2015 and to lift the value of production to NT$580 billion. Further assistance from
the Ministry of Economic Affairs was recently announced by launching a 10-year NT$95 billion
(US$3.0 billion) program helping textile industry to revive and transform their businesses.
068
Thailand
Cotton Production
Cotton Consumption
Synthetic Fiber Output
2008
1,000 t
348,000 t
592,692 t
65,578,534
US$7.2 billion
2009
2,000 t
386,000 t
601,639 t
65,998,436
US$6.4 billion
± in %
+100.0%
+10.9%
+1.5%
+0.6%
-10.5%
Thailand’s economy, heavily export-dependent with exports accounting for about 60% of GDP,
has weathered the global slowdown better than expected and GDP may expand by 3.3% to
5.3% in 2010. In 2009, the economy contracted 2.7% even after growing 4.0% last quarter.
Prime Minister Abhisit Vejjajiva has revitalized the economy with an US$3.5 billion stimulus
package and the Bank of Thailand has kept its benchmark interest rate at a five-year low of
1.25%. Promising might be that Thailand’s consumer confidence increased to the highest level
in 21 months in January 2010 following an announcement of the Bank of Thailand in October
2009 that Southeast Asia’s second largest economy is “out of recession,” citing improving
employment and quarter-on-quarter GDP expansion.
Thailand: Production Index in Textile Chain
4
1990 = 1
3
2
1
0
1990
1995
2000
2001
2002
Synthetic fiber
Spinning
Knitting
Garment
2003
2004
2005
2006
2007
2008
2009
Weaving
While the synthetic fiber production surged in the 1990s from 240,000 tonnes (1990) to 756,000
tonnes in 1999 to reach a peak at 894,000 tonnes in 2004, the capacities in weaving, knitting
and garmenting were lifted steadily. The output of garments increased from 1.8 billion pieces
in 1990 to hit a record of 4.9 billion pieces in 2006 and afterwards declined to last year’s output
of 4.3 billion pieces. A similar development has also been witnessed in weaving and knitting.
In 2009, weaving activity declined by 5.6% to 6.4 billion square yards and knitting even went
down by 7.7% to 2.1 billion square yards. In contrast, the synthetic fiber industry enjoyed a
1.5% growth in output – the first growth in five years.
The perennial contraction process of the textile industries continued with particular focus on the
spinning and garment sector. Last year’s reduction in exports has further fueled corresponding
adjustments as more than a third of the added value has been addressing foreign markets.
Deliveries to the United States, EU and Japan, absorbing more than half of total Thai textile
exports, dropped significantly. In addition to that, the spinning industry has been restructuring
its manufacturing program by producing more coarse-count yarn due to the sharp contraction
in the higher end of the market.
069
Vietnam
Cotton Consumption
2008
272,000 t
US$11.5 billion
87,558,363
US$9.1 billion
2009
316,000 t
US$10.2 billion
88,576,758
US$9.1 billion
± in %
+16.2%
-13.0%
+1.2%
-0.6%
Vietnam’s economy expanded by 5.3% in 2009, the slowest pace in a decade. For 2010, the
government aims to quicken growth to 6.5%. The deceleration in economic activity was result
of the slump in demand for exports and a drop in foreign direct investments. Total exports in
2009 dropped by 9.7% to US$56.6 billion, of which the majority came from the FDI sector.
Although the textile and apparel industry failed to meet its goal of exporting US$10.5 billion
in goods for 2009 as its exports were worth US$9.1 billion, the industry battled the crisis quite
successfully. This industry’s share in total exports rose to 15.9%. While shipments to the United
States declined by 1.7% to US$5.3 billion, exports to Japan increased by 15.1% to US$1.04
billion. This increase is the result of the Vietnam-Japan Economic Partnership Agreement which
the Japanese House of Councilors approved in June 2009. About 92% of Vietnamese exports to
Japan will be exempted from tariffs within 10 years.
Vietnam: Textile & Clothing Exports 1995 - 2010
12
US$ billion
10
8
6
4
2
0
'95
'00
'05
'10
Target
The trade balance in textiles and apparel together with the industry’s impact on the labor market
show the national significance of this sector. The industry comprises about 3,700 enterprises
with 145 spinning units running 3.8 million spindles. More than two million employees account
for about 5% of the country’s labor force. A trade surplus in the range of about US$3.5 billion
helps to slightly reduce the national trade deficit to about US$12 billion. However, it does not
immediately disclose the sector’s vulnerability as it is significantly reliant on imports of raw
materials.
The Prime Minister Nguyen Tan Dung has approved a program to lift the cotton acreage to
30,000 hectares in 2015 and 76,000 hectares in 2020. Current season’s harvested area amounts
to 6,000 hectares and it seems to be likely that the downward trend of the last four years
will continue as the cultivation of food crops is more profitable due to rising food prices.
Nevertheless, Vinatex – Vietnam National Textile and Garment Group – continues building
large industrial textile parks to attract domestic and foreign investors. Chinese Texhong Textile
Group is one example to lure foreign investors as the group plans to double its capacity to more
than 400,000 installed spindles by investing US$100 million in a new yarn plant in Vietnam’s
northern province to produce cotton core-spun yarns.
070
Greater Europe
Cotton Production
Cotton Consumption
Turkey
Cotton Production
Cotton Consumption
2008
2.2 million t
1.9 million t
2009
1.9 million t
1.9 million t
± in %
-13.7%
+0.6%
2008
420,000 t
1,089,000 t
75,793,836
US$23.0 billion
2009
370,000 t
1,154,000 t
76,805,524
US$18.7 billion
± in %
-11.9%
+6.0%
+1.3%
-18.7%
Turkey’s economy is recovering from a contraction of about 6% in 2009 and improving the
country’s chronic unemployment problem. While total exports plunged by 22.6% to US$102.2
billion, the textile and apparel industry was also severely hit by the global economic crisis.
The industry’s total exports were worth US$18.7 billion, down 18.7%. As the textile industrial
production index hit a low in February 2009, steadily increasing manufacturing activity and
higher orders are the basis for an optimistic outlook for 2010. In the first quarter of 2010,
Turkey’s exports for textile goods and raw materials rose by 25.5% and ready made garments
were up by 13.6%. Total exports in 2010 are forecast at more than US$20 billion. This
development may underline the comparative advantage over PR China and India as Turkey is
capable of producing small high-quality lots and fast shipping.
Turkey: Industrial Production Index – Textile Manufacturing
120
2005 = 100
110
100
90
80
70
60
2005
2006
2007
2008
2009
Exports to the United States dropped by 30.9% to US$643 million from a record high of US$1.8
billion in 2004. To stimulate deliveries to the United States, the Turkish Clothing Manufacturers
Association aims to utilize Qualified Industrial Zones (QIZ) which provide duty-free and
non-quota exports to the U.S. The industry was also suffering from 3.9% declining exports to
neighboring countries including Azerbaijan, Bulgaria, Georgia, Iran, Iraq and Syria during the
year 2009. However, encouraging were surging exports to Russia where the industry will more
strongly concentrate on. As Turkey already plays an important role in the textile sector in Africa,
the aim is also to develop bilateral trade between Africa and Turkey. After several investments
in Egypt and Ethiopia with the latest relocation of Saygin Dima Textile S.C., Tanzania is now
trying to attract Turkish investments. The African country aims to double the cotton production
capacity by the year 2015 and holds foreign investors exempt from corporate tax until they
begin posting profits while also allowing foreign companies to transfer their profits out of the
country. On top of targets for future growth, the first aim is to protect the local industry from
unfair competition. In that sense, the Turkish Undersecretariat of Foreign Trade imposed antiThe Fiber Year 2009 / 10
071
dumping duties on textured polyester yarn from Indonesia, PR China, Malaysia and Thailand;
imposed preliminary anti-dumping duties on certain made-up textile articles (mainly curtains,
curtain cloth and upholstery) and fabrics made of artificial or synthetic fibers originating from
PR China; imposed anti-dumping duties on yarn of manmade staple fibers originating from PR
China, India and Indonesia. It further confirmed anti-dumping duties on polyester stable fibers
originating from India, Thailand and Taiwan. Finally, it initiated an interim review of antidumping duties on polyester stable fibers originating from PR China last year.
Turkey: Raw Cotton Balance
1'800
'000 tonnes
1'500
1'200
900
600
300
0
'90
Production
'95
'00
Imports
'05
'09
Consumption
The country’s self-sufficiency rate in raw cotton continued falling as output further declined
by 11.9% to 370,000 tonnes. Despite a three-year extension of Law No. 5084 that was issued
in 2004 to encourage investments in areas with per-capita income lower than US$1,500, textile
manufacturers remain committed to foreign investments. A preferred target area continues to
be Central Asia. Just recently, a new US$70 million cotton mill in Turkmenistan with an annual
capacity of processing 10,890 tonnes of cotton fiber and producing 9,500 tonnes of high quality
yarn for weaving and knitting end-uses was opened with Turkish investments.
Uzbekistan
Cotton Production
Cotton Exports
Cotton Yarn Output
2008
1,002,000 t
1.4 million ha
653,000 t
136,100 t
27,345,026
2009
893,000 t
1.3 million ha
849,000 t
145,500 t
27,606,007
± in %
-10.9%
-8.5%
+30.0%
+6.9%
+1.0%
Uzbekistan, producing a 8.1% growth of GDP last year, is the world’s sixth largest producer
of cotton with an output volume of 0.9 million tonnes in the actual season, down 10.9%. While
industrial production grew by 9.0%, retail trade turnover surged by 16.6%. The anti-crisis
measures taken in 2009 have resulted in creating more than 940,000 new jobs, including over
500,000 in rural areas. Last year, 22 major manufacturing units were completed and more
than 480 new enterprises were set-up, especially in small businesses in such industries as
construction materials, food and textile industry. Investments in the economy touched US$ 8.2
billion which is 24.8% more than in 2008.
072
Uzbekistan: Cotton Production and Export
1600
1400
'000 tonnes
1200
1000
800
600
400
200
0
1990
1995
Production
Export
2000
2005
2009
Uzbekistan is the world’s third largest exporter of cotton. Current season’s expectation even
contains soaring exports to about 850,000 tonnes, which would be 30% higher than in the
previous season. As up to one third of the country’s workforce is engaged in cotton farming, it
is good news and contradictory at the same time.
Anti-Slavery International and the Environmental Justice Foundation have obtained images
of children picking cotton taken secretly during 2009 cotton harvest although the Uzbekistan
government had assured that forced child labor was outlawed in 2008. This practice that up
to 200,000 children as young as seven are being sent out to work in the cotton fields was the
reason that major retailers like e.g. Wal-Mart, Tesco, Gap, Nike, Levi’s, Target, Limited Brands
and Marks & Spencer agreed to eliminate Uzbek cotton in their supply chains. Apparently, not
all international retailers adamantly refuse child labor products as investigations from the both
above mentioned organizations have found links between Uzbek cotton and textile products
from H&M and Zara via its Bangladeshi suppliers.
Africa
Cotton Production
Cotton Consumption
Cotton Exports
2008
1.2 million t
0.6 million t
0.8 million t
2009
1.1 million t
0.6 million t
0.8 million t
± in %
-4.6%
-3.3%
+6.4%
The industry is very much fragmented with the top five cotton producing countries – Burkina
Faso, Zimbabwe, Egypt, Nigeria and Tanzania - accounting for half the continent’s total output.
Some 75% of the regional output is being exported, enabling other industries to improve valueadded production, although this would be of vital importance for those low-income cotton
producing nations. Contrary to the trend in Africa was the decision of the Malawi government
that has banned the exportation of raw cotton. At the same time, a new cotton investment
project was launched with Chinese funds. Reportedly, employees will receive a daily salary
of US$2.14 as compared with the approved national minimum wage of US$1.19. Although
African cotton industries set goals to develop the textile industry, most of them appear to be
not realistic. These nations need to overcome a number of obstacles, like access to technical
and financial resources, abolition of direct subsidies to production provided in other countries
and improvement in research, yields, quality of seeds and fiber, logistics as well as downstream
textile chain.
073
Burkina Faso
Cotton Production
Cotton Consumption
2008
185,000 t
1,000 t
15,264,735
2009
191,000 t
1,000 t
15,746,232
± in %
+3.2%
±0.0%
+3.2%
Burkina Faso, one of the poorest countries in the world, relies heavily on subsistence
agriculture. The main agricultural activity is cotton farming sown on about 600,000 hectares
and employing about 20% of the population. Cotton is the main source of foreign exchange as
virtually all of Burkina Faso’s cotton is exported. So, Africa’s largest cotton producer depends
on value-added apparel imports as the country’s only textile factory - Fasotex - is operating
on outdated machinery since the company was privatized and reopened in 2006. However, the
company is working on modernizing its equipment to begin weaving cloth out of locally grown
cotton by 2011.
The national cotton production is expected to further increase to 191,000 tonnes after an
extremely disappointing season in 2007/08. The scope of cultivation comprises conventional, Bt
and organic cotton. The expansion of cotton growing has also stimulated increased production of
cereals, particularly maize, because fertilizers obtained with the cotton credit are also used for
these crops. This has resulted in a significant reduction of poverty in cotton-growing zones.
Assistance in gradually increasing value-added production may result from the Aid by Trade
Foundation (formerly known as FSAF) set up in 2005 by Dr. Michael Otto. The purpose of the
Foundation “is to promote environmental protection and to improve social conditions in Africa.
An improvement in development cooperation in Africa is also to be achieved by support of
regional, sustainable growing of agricultural and forestry products and their processing.”
Zimbabwe
Cotton Production
Cotton Consumption
2008
90,000 t
20,000 t
11,350,111
2009
100,000 t
20,000 t
11,392,629
± in %
+11.1%
±0.0%
+3.7%
Zimbabwe’s government has led to some economic improvements, including the cessation
of hyperinflation by eliminating the use of the Zimbabwe dollar and removing price controls.
Although the textile industry is considered strategic to the economy most spinning and weaving
firms have reduced capacity or completely stopped production. In 2009, David Whitehead
Textiles Ltd, Zimbabwe’s largest textile company, closed due to increased electricity and labor
costs. So, the intention of the Cotton Ginners Association to triple cotton output by 2011 will be
rather unrealistic. In fact, cotton acreage contracted by 17.5% to 261,200 hectares in the actual
season while maize crop increased by 14% to 1.7 million hectares. Serious trouble for essential
crops like cotton and maize is the prevalence of side-marketing. This common practice sees
cotton growers selling their crops to unregistered dealers instead of those they were contracted
to produce for. A measure for the about 300,000 small scale growers to improve yields may be
cultivation of Bt cotton after the government has changed the biotechnology policy mid-2009.
Currently there is no commercial cultivation of Bt cotton in Zimbabwe and the future success
will depend on the crucial issue on how to finance cottonseed.
074
Egypt
Cotton Production
Cotton Consumption
2008
109,000 t
201,000 t
77,266,685
US$2.1 billion
2009
98,000 t
191,000 t
78,866,635
US$2.5 billion
± in %
-10.1%
-5.0%
+2.1%
+16.6%
Egypt’s gross domestic product is expected to expand by as much as 5.5% in the fiscal year
through June 2010 from 4.7% the year earlier. Economic growth may pick up in the second half
of the fiscal year as government spending, external and local demand as well as foreign direct
investments increase. Egypt has spent almost US$2.75 billion to boost the economy in the
first half of 2009 and the government has sent a bill for additional public spending of US$1.83
billion to the upper house of parliament in December.
The country’s trade balance has improved in 2009, reducing the deficit by US$5 billion to
US$21.8 billion. Although the national industry was one of very few that succeeded in lifting
textile and clothing exports, the sector deficit remained. Last year’s textile and clothing exports
increased by 16.6% to US$2.5 billion while imports almost stagnated. Most successful export
items were apparel deliveries, increasing by 43.1% at US$1.1 billion, and carpet shipments that
rose by 60.7% to US$275 million. In total, textile and clothing exports accounted for 10.8% of
the country’s foreign exchange earnings.
US$ billion
Egypt: Total Foreign Trade and Share of Textiles & Clothing Trade
60
12%
50
10%
40
8%
30
6%
20
4%
10
2%
0
2005
2006
2007
Imports
Share of T&C Imports
Exports
Share of T&C Exports
2008
2009
0%
Despite the QIZ (Qualifying Industrial Zones) agreement with the United States settled in
December 2004, duty-free deliveries to the U.S. in 2009 fell by 2.6% to US$890 million. While
apparel exports stagnated, this US$23 million reduction was in non-apparel exports, mainly
due to a 27% drop of cotton textile products. Untouched by this setback, Egyptian textile and
apparel exports seemed to have ignored the global recession as export value surged by 30.8%
to other parts of the world. Compared with Turkey, Tunisia and Morocco, Egypt managed to
strengthen its position as a major supplier of the European market.
The textile and apparel industry captures a central role in the national economy, covering
everything from the cultivation and processing of raw cotton through to knitting and garment
manufacture. This sector is characterized by medium to large-scale companies with a strong public
sector presence in spinning and weaving. As the government’s long-stated plans to privatize
state-owned enterprises have not yet been adequately converted, significant investments in new
075
equipment, information technology, restructuring and training of employees are the impact of
this standstill. In contrast, the apparel sector appears to be more dynamic than textiles. During
the period 2006 to 2009, apparel exports annually doubled from US$144 million to US$1.1
billion.
Nigeria
Cotton Production
Cotton Consumption
2008
93,000 t
71,000 t
146,255,306
2009
98,000 t
65,000 t
149,229,090
± in %
+5.4%
-8.5%
+2.0%
Nigeria, in the 1980s, was an African giant with 175 textile companies working at full capacity,
offering more than 700,000 jobs and accounting for 25% of Nigeria’s manufacturing sector.
Most of these factories have shut down, another 15 companies ceased manufacturing in 2009.
There are currently only about 24 mills in operation, employing less than 25,000 and accounting
for just 5% of manufacturing value addition.
Relief may accrue from the United Nations Industrial Development Organisation (UNIDO)
that has shifted its focus on the country’s ailing textile industry. A statement from mid-2009
underlined the significance of this industry to the country’s economic health. UNIDO and the
Bank of Industry have signed a Memorandum of Understanding to facilitate support for the
development of textile clusters with particular emphasis on cotton production. Subsequently,
the Nigerian Federal Government launched an US$670 million Cotton, Textile and Garment
Development scheme (CTG). To attract foreign investments in ginning, spinning and weaving
of cotton, Sokoto State in north-west Nigeria is extending a number of incentives. These include
tax holidays, equity participation for viable projects and the granting of loan facilities. The
administration will also assist investors with the provision of adequate industrial infrastructure
such as access roads, electricity, water and telecommunications facilities, etc.
Tanzania
Cotton Production
Cotton Consumption
2008
124,000 t
36,000 t
40,213,162
2009
98,000 t
37,000 t
41,048,532
± in %
-21.0%
+2.8%
+2.1%
Tanzania, Africa’s fourth-largest gold producer, has been hurt by the global financial crisis with
its traditional export markets disappearing and two mining projects being shelved. However, an
US$1.3 billion stimulus package has boosted consumer, buyer and investor confidence despite
being essentially a bail-out plan for some sectors/sub-sectors including cotton.
076
Tanzania: Cotton Production and Domestic Use
125
1’000 tonnes
100
75
50
25
0
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Domestic Use
Production
Reportedly, the government disbursed US$15 million in July 2009 for the stabilisation of cotton
prices. The Tanzania Gatsby Trust (TGT), which has launched a special program to double
cotton production capacity by the year 2015 has set aside US$7.2 million for the period 2008 to
2010 for implementation of the cotton and textile development program.
077
7. Organic Textiles
“The concept of organic farming was introduced
in 2003 in one of the poorest former Soviet
Republics. A stunning number of 1,000 farmers
joins the movement at present.”
Shaknoza Kurbanlievea
Project Coordinator of the Organic Cotton Production and Trade Promotion
Project in Kyrgyzstan, implemented by the Swiss
Association for Development Helvetas
www.helvetas.ch
“Helvetas was founded in 1955 as the first private organisation for development co-peration
in Switzerland. It is a denominationally and politically independent association, supported
by approximately 38 000. Helvetas supports projects in 18 partner countries in rural areas
of the poorer countries of Africa, Asia and Latin America. Helvetas is oriented expressly not
only towards material needs or aims, such as procuring food and improved living conditions,
increased production and income or improved infrastructures. Equally important are immaterial
aims that is, social, cultural, and spiritual ones. Together with the concerned people, Helvetas
also seeks to create an economic, social, and political system which enables men and women
to work towards these targets. Also important are the promotion of democratic structures,
opportunities for participation, and joint responsibility as citizens.
Bridging the gap for organic FairTrade cotton An example from Kyrgyzstan
The first and up to date only Bio Farmer Cooperative of Kyrgyzstan was established in 2007 in
the southern region of Jalalabad at the edge of the fertile Fergana valley. It was a result of a donorfunded market development project which started in 2003 and introduced the concept of organic
farming in one of the poorest former Soviet Republics. Objectives were twofold, promoting
sustainable agriculture and facilitating additional income generation for small scale farmers. In
the first year 34 pioneer farmers started to operate their farms according to principles of organic
farming. Within a few years a stunning number of 1000 farmers joined the movement, and the
Agricultural Commodity and Service Cooperative (ACSC) could successfully get established.
For 2010 the cooperative is planning to produce and market 300 tons of organic cotton fibre
and organic cereals, pulses and Medicinal and Aromatic Plants as well as dried apricots are
produced and looking for its export markets. Besides the organic certification the cooperative
also achieved as first in Central Asia FairTrade certification. This should add considerable value
to in-conversion products and thus improve the sustainability of organic farming in Kyrgyzstan.
Today the ACSC Bio Farmer consists of 98% small holder farmers with a land area of up to 5 ha
and of 2% bigger farmers with a land area of up to 20 ha. 25% of the organic farms are womenheaded with an increasing trend. The organic land shares are partly private and partly state
owned with long term lease. Most of the farming in the region still takes place at subsistence
level on family-run farms. Income is generated mainly from selling cotton, the most important
078
cash crop. This is not enough to stop the strong migration trend of young women and men to
urban areas and abroad.
As a farmer organization, the Cooperative ACSC Bio Farmer unites the organic farmers, promotes
organic products and is lobbying for bio production and mobilizing farmers in an environment
where legislation and public opinion is often ignorant of organic agriculture. The cooperative
provides a full package of services to organic farmers, from provision of agricultural inputs
to the marketing of their crops. Operational costs are covered by membership and service fees
complemented by an annually decreasing share of donor support.
However, despite a fast growth of the cooperative both in terms of members and production,
the future of the organic movement in Kyrgyzstan is not secured yet. This became particularly
evident in 2009, when due to the financial crisis, the exporter of the organic cotton did not
guarantee pre-payment of the cotton harvest any more and refused to buy the FT in-conversion
cotton. This put an immediate halt to the growth of the cooperative: Only a few farmers started
converting to organic, since the cooperative couldn t promise any price premium to the farmers
for their two years of conversion period to a certified organic farmer.
The absence of a buyer for FairTrade in-conversion cotton also directly affected the Farmers
Cooperative: The Bio Farmer organization being in the process of building up capital cannot
charge any membership/service fees for FairTrade in-conversion cotton as long as this cotton
has to be sold for conventional market prices. However, operations in future will be only costcovering if membership and service fees increase. And although this might sound paradox, it
is particularly the relatively high FairTrade certification costs which are difficult to bear for a
small farmer cooperative. FairTrade certification of cotton alone made up 13% of the annual
budget of the cooperative in 2009 and would not have been possible without donor support. The
farmer cooperatives need to be financially sound and fully cost covering to be able to cover the
full fees for certifications. Value chain actors are often not aware that these costs can break the
back bone of a farmer organization in poor countries if they have to pay it all on their own. Due
to all these difficulties the Bio Farmer cooperative got suddenly into a vicious circle: In order to
become costcovering and competitive, new farmers should join the movement, but they refuse
to join as long as the 2 years labour intensive conversion period to certified bio farming cannot
be bridged with at least a FairTrade price premium for their products.
For the time being, the vicious circle could be interrupted: Beginning of April 2010 the Fairtradein-conversion cotton of 2009 could finally be sold! Concerted efforts of the cooperative, the
exporter and the project were leading to a first market success for Fairtrade in-conversion
cotton. That resulted into an unexpected FairTrade prime for farmers in their second conversion
year. They are spreading the good news among their fellow farmers, thus contributing to attract
new members.
Yet, for 2010 the cooperative will again have to put tremendous efforts in marketing because up
to now no buyer made a long-term commitment for Fair Trade in-conversion cotton. Farmers
hope strongly that the market will realize that only by bridging the gap of the in-conversion
period the volume of organic cotton and other organic crops can substantially be increased.”
079
Organic agriculture with the engagement of about 1.4 million farmers is grown on more
than 35 million hectares of land in more than 150 countries. Australia is the largest certified
organic surface area with 12 million hectares, followed by Argentina (4 million hectares)
and PR China (1.9 million hectares). The worldwide volume for organic products reached a
value of US$51 billion in 2008, up from US$46 billion in 2007. The main sales markets are
in North America and Europe.
Organic Cotton Production
200
180
'000 tonnes
160
140
120
100
80
60
40
20
0
2004/05
2005/06
2006/07
2007/08
2008/09
According to Organic Exchange, production of organic cotton surged by 20% to 175,113 tonnes
grown on 253,000 hectares in 22 countries worldwide. Thus, organic cotton actually accounts
for 0.8% of global cotton production. The leading producing countries were India, Turkey,
Syria, Tanzania, PR China, United States, Uganda, Peru, Egypt and Burkina Faso. The global
retail sales of organic cotton apparel and home textile products exceeded US$3 billion in 2009.
The leading organic cotton using brands and retailers globally were Wal-Mart, C&A, Nike,
H&M, Zara, Anvil Knitwear, Coop Switzerland, Pottery Barn, Greensource and Hessnatur.
Apart from efforts to protect the environment as cotton is a substantial consumer of insecticides,
personal health concerns have been driven demand as well. In particular, consumers suffering
from Multiple Chemical Sensitivity, a chronic medical condition characterized by symptoms
that the affected person attributes to exposure to low levels of chemicals.
080
“Hemp fibre - ‘the king of natural fibres’ –
makes the future look a lot greener.”
Daniel Kruse
Managing Director of Hempro
International GmbH & Co. KG
Germany
www.hempro.com
“Hempro International is active in the field of production, distribution and mail order of hempraw material (seeds, oil), hemp-fabrics and -garments, -accessories, -cosmetics and hempfoodstuff. Through the consistent application of a strategy centred on product quality, Hempro
has succeeded in becoming one of the biggest players in the European hemp business. Hempro
Int. offers industry, retailers and end-consumers a wide selection of the best available hemp
products in the world at competitive prices. ”
History of Hemp.
Hemp is among the oldest used material on the planet, going back more than 10,000 years to the
beginnings of pottery. The Columbia History of the World states that the oldest relic of human
industry is a bit of hemp fabric dating back to approximately 8,000 BC. Hemp was probably
first domesticated by the Chinese who developed advanced breeding, farming and processing
techniques in the 2nd century BC. They used the fibre to make paper and textiles and the seeds
for food and medicines. The hemp fibre has a very good moisture absorption (approx. three
times higher than cotton). Because of this characteristic, hemp played a big role in the maritime
navigation in the 17th century as material for ropes, nets and sailcloth. For a normal sailing
boat, 50-100 tons of hemp fibre were used. In the middle of the previous century, hemp was,
next to flax, the most-spread textile fibre worldwide. At that time, Levi Strauss, the originally
Bavarian tailor, riveted the first jeans in San Francisco as a working pants for the gold seekers
of California. Of course, he used cloth of 100% hemp. No other material would have endured the
constant contact with water without suffering damages. Not only in its tear-proof qualities but
also in wet strength, hemp is the natural fibre number one. The decline arrived after the II World
War for several reasons: high labour costs compared with the developing countries, the advent of
synthetic fibres, drug policies and the large scale production and lobbying of cotton.
Characteristics of Hemp Fibre.
Hemp fibre is often referred to as “the king of natural fibres”. Clothing and fabrics made from
hemp have many functions like moisture absorption, breathable, heat disperse, anti-mildew,
antibacterial, anti-radiation, anti-ultraviolet and sound absorption. The bark of the hemp stalk
contains bast fibres which are among the Earth’s longest natural soft fibres and are also rich in
cellulose. Hemp fibre is longer, stronger, more absorbent and more isolative than cotton fibre.
081
Advantages in Cultivation:
Hemp is grown ecologically by nature. The plants are resistant against pests and illnesses so that
no pesticides are necessary. Additionally, hemp grows so quickly that herbicides are unnecessary.
Among farmers around the world, the disadvantages of cotton production lead to a lot of interest
on alternative crops like hemp. Dr Ton den Nijs from the Wageningen University and Research
Centre (WUR) explains: “It takes an enormous amount of water to produce a cotton crop. Farmers
have to use vast amounts of pesticides and herbicides to grow it. Basically, huge amounts of
chemicals are necessary in order to produce a decent cotton crop. Hemp is entirely different; it
can be grown in more marginal areas and needs very little in the way of pesticides or herbicides
in order to produce a decent crop. Furthermore, it needs far, far less water than cotton”.
Environmental Advantages:
• Rapid growth (up to 4 meters in 3 months)
• Extremely resilient. No chemicals e.g. herbicides or pesticides required
• Supporting its own organic cultivation in itself
• Strong rootage in the soil
• Improves the soil and crop rotation productivity
• Monocultures can be avoided
• Less water consumption than e.g. cotton
• Binds CO2 (Result of previous surveys: 1 ton of hemp biomass stores approx. 500 kg of carbon
which amounts to approx. 2 tons of carbon-dioxide)
• No chemical additives necessary for fibre splitting
• Versatile usage for all parts of the plant (Shives, fibre, seeds, etc.)
Acreage and Yield:
The estimated worldwide acreage of hemp is between 60,000 ha and 115,000 ha. In 2008, the
total cultivation area in the European Union was around 15,000 ha – in 2009, this increased
to 18,000 ha. These areas produced around 24,000 t hemp fibres and 29,000 t respectively.
Main countries for European hemp production are France, UK, Germany, The Netherlands and
Poland.
Utilizations of Hemp Fibre:
In 1990, hemp was rediscovered as an important raw material for bio-based products worldwide.
The most important producers for bio-compound materials (natural fibres fortified plastics) as
well as for building and isolation materials are Europe and China. Most of the hemp fibres are
used for isolation materials and for the automotive industry (for fortification of the plastic of
door and luggage bag covering). In 2005, the German automobile industry used about 30,000 t
(EU: 40,000 to 50,000 t) natural fibres compound materials (without wood) with a proportion
of 19,000 t natural fibres (EU: 30,000 t). Applied were European flax (65%) and hemp (10%),
25% were imports from Asia (jute, kenaf, coconut fibres, abaca). Today, demand on natural
fibres for automotive and bio-plastic industry is increasing. Hempro Int. produces hemp clothing
mainly in China. As described above, hemp has been cultivated and used extensively there since
prehistory, so it was a natural choice. Over recent years, China has become increasingly aware of
the damaging impact of industry on its environment and has taken serious steps to avert it. These
include strict regular checks of fabric factories and dye houses, with heavy fines for polluters.
With policy shifting radically towards environmental protection and energy efficiency, China
could soon be leading the way towards sustainability. The sewing facility we are producing at
is GOTS (Global Organic Textile Standard) certified and its guideline is combined out of the
highest social and ecological requirements for conditions in the respective production locations.
The awareness of sustainability and natural resources, such as hemp, is growing strongly both on
consumer side and in the market generally. The future looks a lot greener – with hemp.
082
8. Nonwovens and Other
Unspun End-Uses
The nonwovens industry has delivered a mixed performance as some sectors
like personal hygiene, including adult incontinence products, feminine
hygiene products and baby diapers, and medical were not impacted by the
economic slowdown. Other markets like automotive, construction and home
textiles, however, suffered from the slump in economic activities. In total,
last year’s output of nonwovens and unspun end-uses has increased by
6.3% to 7.1 million tonnes after a slowdown in 2008. This volume includes
nonwoven-based products and filling material for sleeping bags, anoraks,
pillows, mattresses and insulating material in the automotive industry as
well as padding material for reinforced building structures.
In developed countries, growth in population and disposable income will further lead to increased
spending for consumer disposables. Further, an aging population will increase the demand for
medical nonwovens and adult incontinence products. Demand for better quality disposable
applications will mainly come from the growing middle classes in developing countries. The
Chinese and Indian markets will continue to grow in urban areas whereas consumption in the
rural areas will not increase as rapidly due to far lower income levels and for reasons of tradition.
Demand for disposable products such as babies‘ diapers, also true for the Middle East, will
remain lower because of cheap labor, the presence of extended families and the employment
of nursemaids. Finally, investments in infrastructure will assist the industrial development for
geo-textile and agricultural applications.
World Nonwovens Production
8
7
million tonnes
6
5
4
3
2
1
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
The necessity in this growing industry for consolidation appears quite limited as a small
number of mergers and acquisitions as well as closures was reported. Fiberweb and Fitesa have
formed a spunlaid joint venture by combining its North and South American businesses. Under
the name FitesaFiberweb, the new venture will concentrate on lightweight nonwovens for the
hygiene market. The global spunlaid capacity of Polymer Group Inc. has exceeded 285,000
tonnes following the acquisition of Spain-based Tesalca-Texnovo. This has further strengthened
PGI’s position as the global leader in the hygiene market. Additionally, the company closed a
facility in Arkansas at the beginning of 2010 and is in the process of further expanding spunlaid
capacity in the country. End of 2009, Glatfelter had announced to purchase Concert Industries,
one of the world’s largest makers of airlaid nonwovens.
Like in recent years, capacity additions took place around the world. Polymer Group Inc., the
largest spunlaid producer in the world, will further expand its mills in the United States and
installed a 15,000-tonne spunbond line in Mexico to target the medical and hygiene markets.
083
New thermally bonded polyester capacity was added by MidWest Nonwovens LLC in mid2009. Avanti Manufacturing, so far importer of spunbonds, has begun its own manufacturing in
mid-2009 in Tennessee with a capacity of 4,500 tonnes. A new thermal bonded production line,
capable of producing 6,000 tonnes of nonwovens, will start operation in late 2010 by Israel’s
Shalag Group in the United States. Delayed for almost two years, the Brazilian Companhia
Providencia has revived its plans for a new facility in North Carolina with an annual capacity
of 20,000 tonnes that is scheduled to commission in the first half of 2011. In the fourth quarter
of 2010, further spunlaid capacity will be added by FitesaFiberweb in South Carolina.
Investments in Europe were broadly spread across the continent. Turkish Mogul put into
operation its new meltblown line by November 2009. In the fourth quarter of 2009, Concert
commissioned its third airlaid line in Germany which will add 18,000 tonnes of capacity.
Fiberweb has completed erection of its new meltblown line in France in the first quarter of
2010. An additional meltblown line at the facility of Hollingsworth & Vose in Germany is
planned for start-up in the third quarter of 2010. During the same quarter, the 24,000-tonne
spunlaid line at Union Industries SpA will come on-stream. The new 20,000-tonne spunlaid
capacity at Turkish Gulsan will become operational in the fourth quarter of 2010. SCA will
invest in a new production line for incontinence care products in Russia with planned startup during 2011. This facility will support the strong growth and substitute imports from the
company’s plants in Poland and the Netherlands. Pegas Nonwovens, the Czech Republic’s
largest nonwovens producer, will expand its spunlaid capacity by 20,000 tonnes when the new
line will be operational in the second half of 2011.
Driven by planned investments of US$96 billion during the next five years in infrastructure
improvements in South Africa, Danish Fibertex has established a new operation in the country
to produce needlepunched nonwovens, mainly geo-textiles for road construction and products
for the growing South African automotive industry.
The most significant event in Asia seems to be P&G’s investment of US$100 million to build a
new facility in Pakistan to manufacture diapers and laundry detergent. This facility is one element
in the company’s plan to build 19 production facilities in four years. A Chinese investment of
US$25 million is targeting Bangladesh to construct a fiber and nonwoven manufacturing unit
under the name Bangladesh Textile and Fiber Industry Ltd. PGI will also add spunlaid capacity
to its Chinese plant that will serve the market from mid-2011. Aim Filtertech has added a
bicomponent meltblown line in India that is capable of processing a broad range of polymers. In
Malaysia, SCA has opened its second hygiene production site. Fibertex Personal Care, already
active in Malaysia since 2003, will expand its capacity be 4,000 tonnes mid-2010.
Spunlaid nonwovens still take the quantitative lead in the web forming process. Last year’s
production growth of 9% reached a level of about 2.7 million tonnes. The reason for this
sustainable growth is that spunlaid technology offers the advantage which makes it the
benchmark for efficiency, of skipping a production stage. From polymers in the beginning,
it delivers finished fabrics. The other technologies start from raw material to fiber and then
to a finished fabric. Spunmelts are mainly addressing hygiene products such as baby and
adult diapers, feminine care and medical products such as protective apparel. Spunmelts have
also expanded into more technical end-uses for construction, coating substrates, automotive,
agriculture, battery separators or packaging.
Carded nonwovens output was up by 4% to about 2.5 million tonnes. This technology with four
web forming processes has continuously lost market shares. The chart below illustrates changes
in this segment in favor of the spunlace process.
The spunlaced technology has continued to benefit from further growth in hygiene and household
wipes in Western Europe and North America due to its specific properties such as soft hand
and drapability. The traditional method of needlepunching is an eco-friendly technology, as it
allows to process any kind of recycled material like RPET fibers. The range of fibers comprises
staple fibers and continuous filaments, making needlepunching a very universal and flexible
technology. While needlepunched products have been experiencing a steady growth over the
last decade, thermal and resin bonded applications have developed below average. The largest
market for carded thermal bonded polypropylene nonwovens was cover stock. The shift from
084
carded fabrics towards spunbonded materials due to more cost-effective production for low
weight materials could not be compensated by developing new markets.
Carded Nonwovens Production
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Needlepunched
1995
2000
Spunlace
2009
Thermal/Resin Bonded
The demand for airlaid nonwovens mainly used in wipes, hygiene products, sanitary pads and
absorber pads for the food industry was driven by the comparative cost advantage. This has
resulted in increased usage of airlaid products that increased by about 8% to 530,000 tonnes in
2009. New capacity came on-stream in Finland from Lacell Oy. This new airlaid venture put a
7,500-tonne line into operation. Additionally, Concert Industries has installed a new line with
an annual capacity of 18,000 tonnes at its German facility. Technical problems and higher than
expected operating costs have caused Fiberweb to close its Italian line.
Investments in the highly concentrated segment of wetlaids were less. The big players in this
industry are Ahlstrom Corp. and Hollingsworth & Vose Co., accounting for about half the
world production. The output modestly increased by about 3% to 240,000 tonnes in 2009. The
main products are tea bag and filter materials, medical barrier fabrics, speciality wipes, battery
separators and several other small-sized applications. As the technology is fairly mature, some
end-uses have been substituted by other nonwoven technologies.
World Nonwovens Production by Technology
Spunlaid
Carded
Airlaid
Wetlaid
The most dynamic technology has been spunlaid, taking in a 46% world market share. Carded
nonwovens have performed at significantly lower growth rates in the previous decade, now
accounting for a 42% share.
085
Sectors covered by Oerlikon Textile business units
086
Sectors covered by Oerlikon Te
extile business units with partners
Sectors not covered by Oerlikon Textile business units
087
World Fiber Use
Year
Natural *
Manmade
‘000 tonnes
TOTAL
Population
billion
Consumption
kg / capita
2009
26,392
44,134
70,526
6.76
10.4
2008
25,260
42,430
67,690
6.68
10.1
2007
28,092
44,425
72,517
6.61
11.0
2006
28,268
41,106
69,374
6.53
10.6
2005
26,719
39,750
66,469
6.46
10.3
2004
25,049
37,533
62,582
6.38
9.8
2003
22,688
35,291
57,979
6.31
9.2
2002
22,786
33,517
56,303
6.23
9.0
2001
21,968
31,595
53,563
6.16
8.7
2000
21,496
31,147
52,643
6.08
8.7
1999
21,266
29,400
50,666
6.01
8.4
1998
19,990
28,296
48,286
5.93
8.1
1997
20,189
27,523
47,712
5.86
8.1
1996
20,237
24,680
44,917
5.78
7.8
1995
19,600
23,594
43,194
5.70
7.6
1994
19,461
22,613
42,074
5.62
7.5
1993
19,631
20,765
40,396
5.53
7.3
1992
19,673
20,481
40,154
5.45
7.4
1991
19,740
19,738
39,478
5.37
7.4
1990
21,460
19,380
40,840
5.28
7.7
1989
21,409
18,944
40,353
5.20
7.8
1988
21,072
18,543
39,615
5.11
7.8
1987
20,638
17,864
38,502
5.02
7.7
1986
20,743
16,886
37,629
4.94
7.6
1985
17,732
16,259
33,991
4.85
7.0
1984
16,240
15,764
32,004
4.77
6.7
1983
15,705
14,850
30,555
4.69
6.5
1982
15,469
13,597
29,066
4.61
6.3
1981
15,189
14,631
29,820
4.53
6.6
1980
15,227
14,301
29,528
4.46
6.6
1975
13,349
10,677
24,026
4.09
5.9
1970
13,484
8,394
21,878
3.71
5.9
1965
13,401
5,486
18,887
3.35
5.6
1960
11,607
3,367
14,974
3.04
4.9
1950
7,723
1,681
9,404
2.56
3.7
Unit: ‘000 tonnes
* cotton, wool and silk included
088
Consumption of Natural Fibers
Year
Cotton
Wool
Silk
TOTAL
± in %
2009
25,191
1,099
102
26,392
4.5%
2008
23,973
1,187
100
25,260
-10.1%
2007
26,773
1,221
98
28,092
-0.6%
2006
26,937
1,233
98
28,268
5.8%
2005
25,404
1,218
97
26,719
6.7%
2004
23,735
1,216
98
25,049
10.4%
2003
21,359
1,232
97
22,688
-0.4%
2002
21,422
1,272
92
22,786
3.7%
2001
20,563
1,317
88
21,968
2.2%
2000
20,067
1,343
86
21,496
1.1%
1999
19,820
1,363
83
21,266
6.4%
1998
18,527
1,386
77
19,990
-1.0%
1997
18,690
1,424
75
20,189
-0.2%
1996
18,727
1,439
71
20,237
3.3%
1995
17,998
1,510
92
19,600
0.7%
1994
17,774
1,618
69
19,461
-0.9%
1993
17,885
1,678
68
19,631
-0.2%
1992
17,870
1,736
67
19,673
-0.3%
1991
17,745
1,928
67
19,740
-8.0%
1990
19,406
1,988
66
21,460
0.2%
1989
19,388
1,955
66
21,409
1.6%
1988
19,122
1,886
64
21,072
2.1%
1987
18,743
1,832
63
20,638
-0.5%
1986
18,891
1,789
63
20,743
17.0%
1985
15,929
1,744
59
17,732
9.2%
1984
14,440
1,744
56
16,240
3.4%
1983
13,993
1,657
55
15,705
1.5%
1982
13,782
1,632
55
15,469
1.8%
1981
13,516
1,616
57
15,189
-0.2%
1980
13,575
1,599
53
15,227
2.7%
1975
11,723
1,578
48
13,349
-0.2%
1970
11,784
1,659
41
13,484
0.1%
1965
11,884
1,484
33
13,401
2.9%
1960
10,113
1,463
31
11,607
4.2%
1950
6,647
1,057
19
7,723
n/a
Unit: ‘000 tonnes
089
Production of Manmade Fibers
Year
Manmade Fibers
Cellulosics *
TOTAL
2009
3,796
7.7%
40,338
3.7%
44,134
4.0%
2008
3,525
-7.9%
38,905
-4.2%
42,430
-4.5%
2007
3,828
7.6%
40,597
8.1%
44,425
8.1%
2006
3,559
5.5%
37,547
3.2%
41,106
3.4%
2005
3,375
2.6%
36,375
6.2%
39,750
5.9%
2004
3,290
9.1%
34,243
6.1%
37,533
6.4%
2003
3,016
6.8%
32,275
5.2%
35,291
5.3%
2002
2,823
6.1%
30,694
6.1%
33,517
6.1%
2001
2,661
-3.5%
28,934
1.9%
31,595
1.4%
2000
2,758
6.9%
28,389
5.8%
31,147
5.9%
1999
2,579
-7.1%
26,821
5.1%
29,400
3.9%
1998
2,775
-3.6%
25,521
3.6%
28,296
2.8%
1997
2,879
0.3%
24,644
13.0%
27,523
11.5%
1996
2,870
-3.5%
21,810
5.8%
24,680
4.6%
1995
2,973
4.9%
20,621
4.3%
23,594
4.3%
1994
2,834
3.3%
19,779
9.7%
22,613
8.9%
1993
2,743
-1.6%
18,022
1.9%
20,765
1.4%
1992
2,788
-4.7%
17,693
5.2%
20,481
3.8%
1991
2,924
-8.3%
16,814
3.8%
19,738
1.8%
1990
3,189
-4.6%
16,191
3.8%
19,380
2.3%
1989
3,342
-0.9%
15,602
2.8%
18,944
2.2%
1988
3,371
2.6%
15,172
4.1%
18,543
3.8%
1987
3,286
1.4%
14,578
6.8%
17,864
5.8%
1986
3,241
0.2%
13,645
4.8%
16,886
3.9%
1985
3,234
-4.5%
13,025
5.2%
16,259
3.1%
1984
3,387
2.3%
12,377
7.3%
15,764
6.2%
1983
3,310
3.6%
11,540
10.9%
14,850
9.2%
1982
3,194
-7.8%
10,403
-6.8%
13,597
-7.1%
1981
3,464
-1.6%
11,167
3.6%
14,631
2.3%
1980
3,522
1.8%
10,779
7.7%
14,301
6.0%
1975
3,216
-2.2%
7,461
9.2%
10,677
4.9%
1970
3,585
1.0%
4,809
18.7%
8,394
8.9%
1965
3,446
5.3%
2,040
23.7%
5,486
10.3%
1960
2,664
5.2%
703
58.6%
3,367
14.9%
1950
1,611
n/a
70
n/a
1,681
n/a
Unit: ‘000 tonnes
* since 2002 with Tencel® included
090
Synthetics
Cellulosics *
Synthetics
Year
Filament
Staple
TOTAL
Filament
Staple
TOTAL
2009
351
3,445
3,796
24,426
15,912
40,338
2008
371
3,154
3,525
23,599
15,306
38,905
2007
449
3,379
3,828
24,193
16,404
40,597
2006
450
3,109
3,559
21,882
15,665
37,547
2005
458
2,917
3,375
21,024
15,351
36,375
2004
483
2,807
3,290
19,639
14,604
34,243
2003
474
2,542
3,016
18,393
13,882
32,275
2002
463
2,360
2,823
17,368
13,326
30,694
2001
480
2,181
2,661
16,334
12,600
28,934
2000
533
2,225
2,758
15,995
12,394
28,389
1999
527
2,052
2,579
15,040
11,781
26,821
1998
581
2,194
2,775
14,141
11,380
25,521
1997
611
2,268
2,879
13,235
11,409
24,644
1996
640
2,230
2,870
11,594
10,216
21,810
1995
654
2,319
2,973
10,903
9,718
20,621
1994
630
2,204
2,834
9,957
9,822
19,779
1993
652
2,091
2,743
8,925
9,097
18,022
1992
695
2,093
2,788
8,577
9,116
17,693
1991
759
2,165
2,924
8,025
8,789
16,814
1990
837
2,352
3,189
7,637
8,554
16,191
1989
927
2,415
3,342
7,156
8,446
15,602
1988
950
2,421
3,371
6,855
8,317
15,172
1987
915
2,371
3,286
6,436
8,142
14,578
1986
934
2,307
3,241
6,026
7,619
13,645
1985
933
2,301
3,234
5,792
7,233
13,025
1984
959
2,428
3,387
5,444
6,933
12,377
1983
983
2,327
3,310
5,065
6,475
11,540
1982
967
2,227
3,194
4,612
5,791
10,403
1981
1,053
2,411
3,464
4,986
6,181
11,167
1980
1,130
2,392
3,522
4,854
5,925
10,779
1975
1,148
2,068
3,216
3,790
3,671
7,461
1970
1,391
2,194
3,585
2,398
2,411
4,809
1965
1,372
2,074
3,446
1,124
916
2,040
1960
1,131
1,533
2,664
417
286
703
1950
872
739
1,611
54
16
70
Unit: ‘000 tonnes
091
Global Fiber Consumption
Year
Cotton
Wool
Synthetics
Cellulosics
TOTAL
1960
68%
10%
5%
18%
14,974
1970
54%
8%
22%
16%
21,878
1975
49%
7%
31%
13%
24,026
1980
46%
5%
37%
12%
29,528
1985
47%
5%
38%
10%
33,991
1986
50%
5%
36%
9%
37,629
1987
49%
5%
38%
9%
38,502
1988
48%
5%
38%
9%
39,615
1989
48%
5%
39%
8%
40,353
1990
48%
5%
40%
8%
40,840
1991
45%
5%
43%
7%
39,478
1992
45%
4%
44%
7%
40,154
1993
44%
4%
45%
7%
40,396
1994
42%
4%
47%
7%
42,074
1995
42%
3%
48%
7%
43,194
1996
42%
3%
49%
6%
44,917
1997
39%
3%
52%
6%
47,712
1998
38%
3%
53%
6%
48,286
1999
39%
3%
53%
5%
50,666
2000
38%
3%
54%
5%
52,643
2001
38%
2%
54%
5%
53,563
2002
38%
2%
55%
5%
56,303
2003
37%
2%
56%
5%
57,979
2004
38%
2%
55%
5%
62,582
2005
38%
2%
55%
5%
66,469
2006
39%
2%
54%
5%
69,374
2007
37%
2%
56%
5%
72,517
2008
35%
2%
57%
5%
67,690
2009
36%
2%
57%
5%
70,526
Unit: ‘000 tonnes
092
World Production of Synthetic Fibers
Year
Polyester
Polyamide
Acrylics
Others
TOTAL
1970
34%
40%
21%
5%
4,809
1975
45%
33%
19%
3%
7,461
1980
47%
30%
19%
4%
10,779
1985
50%
26%
18%
6%
13,025
1986
50%
26%
18%
6%
13,645
1987
52%
25%
17%
6%
14,578
1988
53%
25%
16%
6%
15,172
1989
54%
24%
15%
7%
15,602
1990
53%
24%
14%
9%
16,191
1991
54%
22%
14%
10%
16,814
1992
56%
21%
13%
10%
17,693
1993
57%
20%
13%
10%
18,022
1994
58%
18%
13%
11%
19,779
1995
60%
19%
12%
9%
20,621
1996
61%
18%
12%
9%
21,810
1997
63%
16%
11%
10%
24,644
1998
65%
15%
10%
10%
25,521
1999
66%
15%
9%
10%
26,821
2000
66%
14%
9%
11%
28,389
2001
67%
13%
9%
11%
28,934
2002
68%
13%
9%
10%
30,694
2003
69%
12%
8%
10%
32,275
2004
70%
12%
8%
10%
34,243
2005
72%
11%
7%
10%
36,375
2006
73%
11%
7%
9%
37,547
2007
76%
10%
6%
9%
40,597
2008
78%
9%
5%
8%
38,905
2009
79%
9%
5%
7%
40,338
Unit: ‘000 tonnes
093
mill. tonnes
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
PR China
6.7
8.2
9.9
11.7
13.8
17.6
19.6
23.0
23.6
26.3
India
1.9
1.9
2.0
2.0
2.2
2.2
2.5
2.8
2.5
2.8
USA
4.2
3.6
3.8
3.8
3.7
3.4
3.1
3.0
2.8
2.3
Taiwan
3.2
3.1
3.2
3.2
3.2
2.8
2.6
2.6
2.1
2.1
South Korea
2.8
2.4
2.3
2.2
2.1
1.7
1.5
1.5
1.4
1.4
Indonesia
1.4
1.5
1.4
1.3
1.2
1.2
1.2
1.2
1.1
1.1
Japan
1.5
1.5
1.3
1.2
1.2
1.2
1.1
1.2
1.1
0.8
SUBTOTAL
21.7
22.1
23.9
25.5
27.4
30.0
31.7
35.4
34.6
36.9
ROW
9.4
9.5
9.6
9.7
10.1
9.8
9.4
9.0
7.8
7.3
TOTAL
31.1
31.6
33.5
35.3
37.5
39.8
41.1
44.4
42.4
44.1
mill. tonnes
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
PES FY
10.7
11.2
12.0
12.9
13.8
15.3
16.0
18.3
18.3
19.3
PES SF
8.1
8.3
8.8
9.4
10.1
11.0
11.5
12.5
12.1
12.6
PA FY
3.6
3.3
3.5
3.5
3.7
3.6
3.7
3.6
3.3
3.3
PA SF
0.5
0.4
0.5
0.5
0.4
0.4
0.4
0.3
0.3
0.2
PP
2.8
2.9
3.0
3.0
3.1
3.1
3.1
3.0
2.7
2.6
PAN
2.6
2.6
2.7
2.7
2.7
2.6
2.5
2.4
1.9
1.9
Cellulosics *
2.8
2.7
2.8
3.0
3.3
3.4
3.6
3.8
3.5
3.8
Others
0.2
0.3
0.3
0.3
0.4
0.4
0.4
0.5
0.5
0.4
TOTAL
31.1
31.6
33.5
35.3
37.5
39.8
41.1
44.4
42.4
44.1
094
Top 3 Producing Countries
PES FY
2009
share
2005
share
2000
share
1995
share
PR China
14,152
73.3%
8,903
58.3%
3,152
29.5%
1,022
15.7%
India
1,444
7.5%
1,039
6.8%
829
7.8%
344
5.3%
Taiwan
1,010
5.2%
1,275
8.4%
1,525
14.3%
1,225
18.8%
SUBTOTAL
16,606
86.0%
11,217
73.5%
5,506
51.6%
2,591
39.8%
PES SF
2009
share
2005
share
2000
share
1995
share
PR China
7,892
62.6%
5,509
50.1%
1,815
22.5%
922
16.5%
India
861
6.8%
615
5.6%
561
7.0%
230
4.1%
Taiwan
570
4.5%
752
6.8%
932
11.6%
753
13.5%
SUBTOTAL
9,323
73.9%
6,876
62.5%
3,308
41.1%
1,905
34.1%
PA FY
2009
share
2005
share
2000
share
1995
share
PR China
1,299
39.7%
679
19.0%
333
9.3%
252
8.0%
USA
516
15.8%
811
22.7%
851
23.8%
830
26.2%
Taiwan
287
8.8%
466
13.0%
421
11.8%
294
9.3%
SUBTOTAL
2,102
64.2%
1,956
54.7%
1,605
44.9%
1,376
43.5%
PAN SF
2009
share
2005
share
2000
share
1995
share
PR China
684
35.1%
784
30.1%
475
18.5%
234
9.7%
W.Europe *
566
29.0%
767
29.5%
780
30.4%
883
36.4%
Japan
124
6.4%
261
10.0%
377
14.7%
374
15.4%
SUBTOTAL
1,374
70.5%
1,812
69.6%
1,632
63.6%
1,491
61.5%
Unit: ‘000 tonnes
* Turkey included
095
Manmade Fiber Industry 2009/08
Polyester
Textile Yarn
Staple Fiber
TOTAL
2009
2008
2009
2008
2009
2008
2009
2008
Europe
263
335
109
194
586
683
958
1,212
NAFTA
193
235
122
150
561
679
876
1,064
South America
74
82
20
24
161
169
255
275
PR China
13,602
12,379
550
450
7,892
7,216
22,044
20,046
India
1,438
1,337
6
1
861
748
2,305
2,086
Japan
110
169
53
75
146
191
309
435
Korea
506
510
155
175
516
492
1,177
1,177
Taiwan
955
954
55
65
570
503
1,580
1,522
ROW
1,086
1,081
23
31
1,316
1,396
2,425
2,507
SUBTOTAL
18,227
17,081
1,093
1,165
12,609
12,077
31,929
30,323
Polyamide
Textile Yarn
Industrial Yarn
Carpet Yarn
TOTAL
2009
2008
2009
2008
2009
2008
2009
2008
Europe
148
200
148
195
147
160
443
555
NAFTA
54
62
87
111
523
591
664
764
South America
55
58
36
41
0
0
91
99
PR China
887
620
364
314
48
28
1,299
962
India
29
28
56
62
0
0
85
90
Japan
35
41
42
60
7
7
84
108
Korea
80
74
48
52
5
5
133
131
Taiwan
243
315
43
47
0
0
286
362
ROW
113
119
67
80
10
14
190
212
SUBTOTAL
1,644
1,517
891
962
740
804
3,275
3,283
Staple Fiber
Acrylics
Polyamide
Cellulosics
TOTAL
2009
2008
2009
2008
2009
2008
2009
2008
Europe
643
667
54
65
615
637
1,312
1,369
NAFTA
46
45
81
121
277
272
404
438
South America
63
65
1
2
60
45
124
112
PR China
684
604
74
54
1,502
1,311
2,260
1,969
India
94
81
0
0
281
244
375
325
Japan
124
145
1
2
135
146
260
293
Korea
41
43
0
0
8
9
49
51
Taiwan
112
84
2
9
106
106
220
198
ROW
142
133
1
1
461
385
604
519
SUBTOTAL
1,949
1,867
214
254
3,445
3,154
5,608
5,275
Unit: ‘000 tonnes
096
Industrial Yarn
Global Yarn Production
Yarn
2009
share
2005
share
2000
share
1995
share
Filament
24,777
40.1%
21,403
37.0%
16,514
36.0%
11,557
30.9%
Spun
36,953
59.9%
36,435
63.0%
29,368
64.0%
25,895
69.1%
TOTAL
61,730
57,838
45,882
37,452
Unit: ‘000 tonnes
Dynamics in Yarn Production
Yarn
2009
AAGR
2005
AAGR
2000
AAGR
1995
AAGR
Filament
24,777
3.7%
21,403
5.3%
16,514
7.4%
11,557
6.4%
Spun
36,953
0.4%
36,435
4.4%
29,368
2.5%
25,895
-0.6%
TOTAL
61,730
1.6%
57,838
4.7%
45,882
4.1%
37,452
1.2%
Unit: ‘000 tonnes
Fiber Types in Spun Yarn Production
Yarn
2009
AAGR
2005
AAGR
2000
AAGR
1995
AAGR
Cotton
21,478
-0.1%
21,595
4.8%
17,109
2.2%
15,345
-1.5%
Polyester
10,289
3.5%
8,979
6.4%
6,573
7.3%
4,629
3.7%
Acrylics
1,853
-7.0%
2,473
0.4%
2,440
1.9%
2,225
0.6%
Cellulosics
2,084
4.0%
1,781
4.6%
1,417
-1.7%
1,545
-1.4%
Wool
929
-3.5%
1,073
-2.0%
1,185
-4.1%
1,460
-5.4%
Others
320
-12.0%
534
-3.7%
644
-1.4%
691
2.8%
TOTAL
36,953
0.4%
36,435
4.4%
29,368
2.5%
25,895
-0.6%
Unit: ‘000 tonnes
097
Major Textile & Clothing Trading Countries
Exports
Imports
US$ billion
2008
2009
± in %
2008
2009
± in %
2008
2009
PR China
185.1
171.3
-7.4%
17.4
16.9
-2.6%
167.7
154.4
India
22.4
21.5
-4.3%
3.2
3.4
6.0%
19.2
18.0
Turkey
23.0
18.7
-18.7%
7.9
6.7
-17.0%
15.1
12.0
Bangladesh
10.7
12.3
15.4%
1.8
1.9
5.7%
8.9
10.4
Pakistan
10.6
9.6
-9.6%
0.6
0.5
-9.8%
10.0
9.0
Taiwan
10.9
9.3
-14.3%
2.7
2.2
-19.0%
8.2
7.2
Hong Kong
36.9
31.9
-13.4%
30.9
25.5
-17.5%
6.0
6.5
Thailand
7.2
6.4
-10.5%
0.3
0.2
-25.5%
6.9
6.2
Indonesia
10.4
9.3
-10.1%
5.2
3.8
-28.1%
5.2
5.5
South Korea
13.3
11.6
-12.6%
8.8
7.4
-15.8%
4.5
4.2
Vietnam
9.1
9.1
-0.6%
5.7
5.4
-4.7%
3.4
3.6
Sri Lanka
3.5
3.3
-5.6%
1.7
1.4
-15.3%
1.8
1.8
Tunisia *
5.0
4.2
-16.0%
3.3
2.8
-15.1%
1.6
1.4
Cambodia
2.8
2.4
-16.1%
1.4
1.1
-19.6%
1.4
1.2
Malaysia
3.1
2.5
-19.9%
1.8
1.5
-20.2%
1.2
1.0
Morocco
3.7
n/a
2.6
n/a
Peru
2.0
1.4
-28.0%
1.0
0.7
-24.9%
1.0
0.7
Egypt
2.1
2.5
16.6%
2.7
2.7
-1.1%
-0.5
-0.2
New Zealand
0.9
0.7
-20.2%
1.4
1.2
-12.5%
-0.5
-0.5
Brazil
2.4
1.9
-21.8%
3.8
3.5
-9.2%
-1.4
-1.6
Mexico
5.2
4.4
-15.2%
7.9
n/a
Australia
1.8
1.3
-26.7%
8.6
7.9
-8.1%
-6.7
-6.5
Canada
2.8
2.2
-19.8%
12.0
10.6
-11.4%
-9.2
-8.4
Japan
7.8
6.4
-17.6%
32.5
31.9
-1.8%
-24.7
-25.5
Russia
0.8
n/a
26.9
n/a
EU (27) (extra)
51.9
42.4
121.0
104.5
EU (27) (intra)
140.7
122.7
140.7
122.7
USA
16.2
13.6
93.2
81.0
-18.3%
-16.0%
* Leather included
Source: National Statistical Offices and Central Banks
098
Balance
1.0
-2.7
-26.2
-13.7%
-69.1
-62.1
-13.1%
-77.0
-67.4
Imprint
Oerlikon Textile GmbH & Co. KG
Leverkuser Strasse 65
42897 Remscheid
Germany
Editor and responsible for content
Andreas Engelhardt
Tel. + 41 - 71 - 447 51 89
Editors
Andreas Engelhardt

The Fiber Year 2009/10 A World Survey on Textile and

Transcription

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