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Spanish textile industry faces delicate situation
04
Feb '13
Spanish textile industry is currently passing through a delicate phase, according to industry analysts. 
 
On the one hand, many Spanish textile firms that had offshored their production to China are betting on relocating to Spain in view of the increased costs of production in China.
 
However, the closure of several textile and apparel firms during the offshoring boom makes it difficult for the Spanish textile industry to take full advantage of the situation.
 
According to the data of Spanish clothing federation FEDECON, 15 percent of delocalized textile firms returned to Spain in 2012.
 
However, to get back the entire production back to Spain from China would require reindustrialization, as old production units now stand dismantled.
 
Meanwhile, other countries in the region like Portugal, Tunisia and Morocco are taking advantage of the rising costs of production in China, FEDECON said.
 
At its heyday in 1995, Spanish textile and garment sector employed about 276,000 people and thereafter the number of people working in the industry declined, mainly due to offshoring production to countries like China.
 
In 2008, the sector employed about 185,000 people and the number declined further to 150,000 in 2011.
 
Global textile and apparel giants like Inditex, Mango and Cortefiel are yet to bring their production back to Spain and it is only when these companies decide to shift their manufacturing that the Spanish textile and clothing sector can expect a boom, according to analysts.
 

Fibre2fashion News Desk - India


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