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Urgent need to upgrade plant technology in Textile Park
27
Jan '12
In the Textile City Industrial Park, set up in Puebla and Tlaxcala region of Mexico, the rate at which new textile companies are being set up is slow, mainly due to unavailability of land.

Currently, there are around 300 textile units operating in the Park, of which 15 percent of the factories have been set up with foreign investment or from other Mexican states. They altogether generate jobs for around 25,000 employees.

According to an expert, there is an urgent need for these textile units to upgrade their technology and processes to become more competitive.

He says that, although labour is cheap in the Central American region, the whole textile production process is not available, due to which investments are not flowing in to the region, he said.

However, there is a possibility of Mexican investors investing in the region to fill the gaps in the textile value chain, but still that would not be enough, he added.

Speaking about the Chinese threat, he said, “Due to the expiry of anti-dumping measures, the situation has become complicated, but the government has taken measures, which will mitigate the situation to a great extent and avoid unfair competition”.

In the last ten years, over a 100 textile factories have folded up in Mexico, of which, the Tlaxcala region accounts for 50.

Fibre2fashion News Desk - India

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