50% of offshore production will return to Spain: FEDECON

25 May '13

2 min read

Around 50 percent of garment production lost by Spain to other countries during the last two decades would come back to the country, Angel Asensio, president of the Spanish Apparel Federation (FEDECON) has said.

Mr. Asensio said the relocation of production from Spain to other countries has resulted in loss of jobs, which have decreased from about 400,000 around 20 years ago to about 166,000 today.

He said Spain started outsourcing garment production in the 1990s as labour cost was cheaper in those countries, especially Asian nations.

But now, producing offshore is turning out to be less profitable due to the rising cost of labour in China, the hike in transportation charges, difficulty in getting credit for imports, and the declining quantity of garment orders, FEDECON president said.

Moreover, a growing number of Spanish people are now willing to spend a little extra for products made in Spain, as it helps the country’s economy, he added.

According to him, the relocation of around 50% of garment production would create up to 100,000 new jobs in Spain.

However, companies willing to come back to Spain are facing problem of lack of credit facility as a result of the financial crisis that has strangled the Spanish economy.

Hence, the apparel sector employers have asked the Government to create a credit line for lending to companies that invest and bring their garment production back to the country, Mr. Asensio said.

Fibre2fashion News Desk - India

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