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Sweater manufacturers experience surging demands
Jan '11
In the midst of the rise in demand from leading global buyers and decline in exports of main competing countries like China and Indonesia, the sweater producers in Bangladesh are raising their capacities.

Considering the exceptional rise in demand from the European countries, leading domestic manufacturers like Dragons, Pioneer and Diganta have either established new facilities or have raised their production capacity.

It is believed that the alleged Wal-Mart effect, which entails slow diversion of global sourcing to low-cost suppliers, would help Bangladesh to establish itself as the world's biggest sweater exporter within next five year's time.

After experiencing the effects of global economic slump for two years, the industry is now reviving and most of the sweater manufacturing units are now expanding their facilities. As the new expanded facilities go operational, Bangladesh would come closer to China to establish itself as the world's leading sweater manufacturer.

In recent times, as many of the clients are diverting from China to Bangladesh due to the economical prices offered by Bangladesh, there has been a sharp surge in the orders flowing in the country.

But then, even with its rising cost of production China continues to be the largest sweater manufacturer across the globe and holds a 30 percent stake in the EU markets. As against this, Bangladesh with a nine percent contribution exported €13 billion that is $16 billion worth of sweaters to the EU last year.

Around 20 percent of Bangladesh's 4,500 garment units are engaged in sweater manufacturing, and constituted 15 percent of the country's overall garment exports for 2010.

Gazipur based Diganta, the largest sweater manufacturer of Bangladesh revealed that, in order to meet the rising demand for knitted items, it expanded its capacity towards the end of 2010 and now manufactures 10 million pieces each year.

Fibre2fashion News Desk - India

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