Shift from Asia may not help Romanian textile industry

28 Mar '12

1 min read

The Romanian textile industry is not in a position to take advantage of shift in production base away from China, occurring due to increased wages in the Asian country, Federation of Employers of Textile Industry (FEPAIUS), has said.

FEPAIUS said employers of textile industry have received some outsourcing orders from Western European manufacturers. But Romanian manufacturers do not have capabilities to execute and deliver on time, if these companies place large orders with them, it added.

The organization explained that textile manufacturing firms in Romania started outsourcing their orders to Asian countries in 2009. During the intervening three year period, some of the companies have restructured their businesses and are currently not in a position to restart their textile manufacturing process.

FEPAIUS said the Government should give some incentives for investors to return to textile manufacturing.

Meanwhile, the cost of production has increased due to rise in prices of utilities and implementation of value-added tax (VAT), thus lowering the profit margin for the existing firms.

The possibility of leading global manufacturers coming to Romania and investing in textile production was also ruled out by FEPAIUS.

FEPAIUS is the only organization in Romania representing the business community and traders of textiles, knitwear and garments.

Fibre2fashion News Desk - India

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