Cotton Plant Bulb
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Economic Integration

Improved Costings Help Boost US Yarn Capacity

Industrial Capacity

Gradually improving economics, in terms of input costs and changing consumer interests, have prompted a trio of textile manufacturers to announce plains to expand yarn spinning capacity in the US.

Parkdale Mills, the nation’s largest yarn producer, announced earlier this month plans to invest US$85 million in an expansion that will create 210 jobs. The Gastonia, North Carolina-based company is converting a 750,000-square-foot Georgia plant to produce a polyester-cotton blended yarn for high quality active wear sold in sports stores. The facility currently produces 100 percent cotton T-shirts.

Canadian and Indian yarn spinners also have announced plans to boost production capacity in the southern US.

Indian textile company Shrivallabh Pittie Group is planning to build its first US yarn manufacturing facility in Georgia.  The 115-year-old company headquartered in Mumbai, India, will invest US$70 million to build the spinning mill, which will employ 250 new workers.  The plant will manufacture a range of different counts of carded cotton yarn and will be designed to be able to shift production in order to meet market demand. 

“We are very excited about this project, which is the biggest single investment in US cotton yarn sector in decades,” said the chairman of Shrivallabh Pittie Group, Vinod Pittie, in a statement. “We believe there is a significant market opportunity for yarn manufacturing in Georgia due to a skilled local workforce, proximity to high-quality cotton fiber, the economical supply and reliability of power and world-class infrastructure to international markets.”

Meantime, Gildan Activewear Inc. of Montreal, Canada, has announced it is currently evaluating potential sites in the southern US for the construction of two additional yarn-spinning facilities, “to support its projected sales growth and further reinforce its position as a global low-cost manufacturer,” the company said in a statement. The textile manufacturer already operates open-end yarn spinning facilities in North Carolina and Georgia.

The company said it expects to invest more than US$200 million during fiscal 2014 and 2015 for the construction and opening of the new facilities. The latest investment is in addition to plans announced almost a year ago for a new ring-spun yarn manufacturing facility also in North Carolina.  The company’s total investment in US yarn-spinning capability should add more than 700 jobs to the workforce.

Although the US began losing it world share of yarn production in the mid-1990s to lower cost manufactures in Asia and the the Indian subcontinent, a synopsis of a study reported by Textile World suggests that during the first decade of the millennium US manufacturers have slowly become more cost competitive in ring and rotor spinning.  Moreover, the study indicated that US yarn spinners are now in a position to benefit from increases in international fiber prices.

“This would seem to open up the opportunity for the United States to reclaim some of its lost manufacturing capacity in the spinning area because the cost of producing yarns in the United States is lower than for most competitors,” the Textile World report said. “This advantage would also carry with it the benefits of higher quality, shorter time to market and potential for collaborative arrangements with fabric producers.”

American companies already have certain location advantages, and any cost advantage gives US customers even less reason to import textile products, said the article. Opportunity is coming to the United States because worldwide costs are rising at a faster rate. 

Textile World said the study broke down the cost of spinning in nine major countries into the cost components of raw material, interest, depreciation, auxiliary material, power, labor and waste. 

The study was conducted by Dr. Brian John Hamilton, product developer - Domestic Lifestyle at New Balance Athletic Shoe Inc., Boston, Massachusetts; and Dr. William Oxenham, Associate Dean, and Dr. Kristin Thoney, Associate Professor, at North Carolina State University's College of Textiles in Raleigh, North Carolina. 


Prospects Improving for Turkish Clothing/Textile Sectors

Industrial Capacity

A detailed report from Mr. Paul Cochrane at (subscription required), suggests an impressive recovery for Turkey’s clothing and textile industries this year.

The following is an excerpt from Mr. Cochrane’s report:

Turkey's clothing and textile sector has rebounded this year on the back of strong sales to Europe and emerging markets, with clothing exports up 11% to US$9.5bn as of August 2010, and textile exports reaching US$4.1bn, up 23% on 2009.

"Last year was a disastrous year, with clothing exports down 23%. This year we're recovering, exports are up, but 17% below 2008 and 10% below 2007," said Mehmet Kumbaraci, director general of the Turkish Clothing Manufacturers Association (TGSD).

Current export figures suggest the TGSD's forecasts for 2010 were relatively solid, with ready-to-wear exports projected at around US$14bn and textile exports at US$6bn. Their predictions, however, had looked rather rose-tinted in the spring.

"We were rather pessimistic at the beginning of the year, but textile exports in August were US$480m, up 10% on the previous month, and US$1.1bn in clothing exports, up 6% on July. I expect for the end of the year exports will be more than US$14bn for clothing, and about US$6bn for textiles.

"All plants are fully occupied, including high quality orders from suppliers in Pakistan, Bangladesh and China," said Kumbaraci. Demand ranges across the industry for all types of garments, he added, with no notably higher demand for any specific items.

Turkey was the only 'top 20' exporter to the European Union (EU) to record gains in the first five months of 2010, up 18.5% in Euro earnings between January and May. The other 19 main exporting countries - including China and India - have seen exports fall, stressed Zafer Çaglayan, Turkey's state minister for foreign commerce, at the launch of Istanbul Fashion Week 2010 in late August. 

The TGSD's long-term goal is for Turkey to account for 5% of global clothing exports - as in 2005 - at some US$22.5bn to US$25.3bn by 2014, and US$60bn by 2023.

Questions:  Should Turkey be considered on the path of long-term recovery in its clothing and textile sectors?

What are some positive factors that will help ensure steady improvement?

Are there any foreseeable impediments to recovery?

India Sees Large Potential to Benefit from Global Textile/Apparel Changes

Industrial Capacity

As textile and apparel production continues to transition from the western hemisphere into Asia, chances are good for India to see substantial benefit during the next 10 years, according to a new study issued by Technopak Advisors.

At a leadership forum in Mumbai earlier this month, the Indian management consulting firm headquartered in Gurgaon, National Capitol Region, suggested India has the potential to raise the value of its domestic and export trade from US$70 billion posted in 2009 to as many as US$220 billion by 2020.  The more than three-fold increase in value compares with the company's projection that world  trade will almost double during the same period, from US$510 billion to US$1 trillion.

The principal ‘drivers' of domestic growth include the country's increasing population, rising levels of disposable income, rapid growth of urbanization and the greater penetration of retailers into smaller cities.

However, a substantial investment will be required for India to realize its potential.  The Technopak report suggests an input of US$68 billion will be needed across the textile supply chain by 2020 "to tap the potential market created due to growth of the industry."  A US$14 billion investment will be required in the garment sector and US$19 billion for processing.

The presentation made Chairman Arvind Singhal at the leadership forum can be found here.

The complete study itself is here.

 Questions:  Is there agreement that the value of Indian textile and apparel goods will triple over the next 10 years?

What are the potential barriers to growth in the industry?

India Promoting Textile Industry Growth

Industrial Capacity
In the face of global economic stress, a well-defined effort to expand India's textile industry is under way adn already bearing fruit, according to the nation's textile minister.  In a June 11 article posted at, Mr. Dayanidhi Maran said development plans for the industry already have helped the volume of annual textile exports climb from 10.82 percent of the country's total shipments in 2008/09 to 12.05 percent a year later. 

Plans to update the weaving, knitting and processing sectors are being aided by an infusion of US$543.7 million from the Technology Upgradation Fund Scheme.  Government grants also have been made for the development of 17 integrated textile parks, and new markets apart from the United States and European Union are being targeted under a "Look East Policy".  Additionally, the government is working to attract foreign investment in textile machinery, garment manufacturing and synthetics, among other sectors.

Questions:  Which sectors will benefit most from the government's efforts?

Are there internal or external factors that will eithe rhelp ensure the success of the program, or contribute to a less than satisfactory result?
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