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Asia to be powerhouse of world textiles says report

03 Jul '06
3 min read

Further advantages for producers in Asia result from sizes of markets and the multi-tude of customers in the textile processing chain – but also from protectionist measures like high import duties and energy policies that attach much importance to national interests.

However, the progressing modernisation of machinery in Asia re-lativises local advantages. The lower the number of staff-intensive production steps with a workforce at favourable cost, the higher the capital-intensive cost share.

This is because machines and primary energy need to be obtained at world market prices, also in Asia. Thus the advantages of the low-wage area Asia are getting smaller.

Against this backdrop, German and Austrian production sites should have a good basis for further developments. But the more the advantages of Asian producers are diminishing, the more is done to solidify location disadvantages in our countries.

Asian producers enjoy political, and partly also financial support in their home countries while our domestic industry is being saddled with further national burdens, reducing our competitiveness. The most important keywords in this connection are long-lasting discussions about workplace and emission limit values, REACH, emissions trading, and in particular the energy policy.

This causes uncertainty in planning. Globally operating companies, like IVC members, do not understand this.

Now the limit for national burdens has not only been reached but partly even ex-ceeded. Therefore, it is not surprising that many production sites in Germany simply vanish from the map. The most recent example is the forthcoming relocation of a man-made fibre production from Oberbruch (North Rhine-Westphalia) to China.

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Industrievereinigung Chemiefaser e. V.

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