Argentine textile sector output to touch $8bn in 2015

30 Jan '14

3 min read

The Argentine textile industry, one of the hardest hit during the late 90’s, is expected to generate gross production value of US$ 8 billion annually for the next two years, according to a statement on the website of the Ministry of Industry, Government of Argentina.

Over the past decade, Argentine textile and clothing industry has grown by 71 percent, with an average annual increase of 5.5 percent.

During the same period, the textile and apparel industry generated 43,291 new jobs, of which 54 percent were in the textile sector while the remaining 46 percent were in the garment sector. At present, there are 120,000 formally registered direct employees in the sector, but there still remains a high degree of informal employment in the sector.

Industry Minister Debora Giorgi said the importance of manufacturing in industrial chain lies in added value as the price of the final garment is 44 times the value of the raw material.

Argentine exports are mainly towards Brazil and Uruguay, with fibre and yarn accounting for 57 percent, fabrics 22 percent and clothing 16 percent of all textile and garment exports.

The Ministry of Industry is supporting the textiles and apparel sector through financial and technical support. Between 2010 and 2013, through soft loans as the Bicentennial Fund, 26 companies received a total of $315 million, generating $438 million investment. In addition, under the Fonapyme rate program, 908 loans totaling another $143 million were awarded.

In recent years, various textile companies operating in different Argentine provinces made investments in modernization and expanded their production capacities.

The firm Santana Textiles invested $126 million to double the floor area of its plant in Puerto Tirol province of Chaco, adding 300 jobs. Subsequently, in 2013, the company announced a new investment of $254 million for the construction of another plant of 16,000 square meters to produce premium fabrics, designed to provide great brands, which will replace imports in that niche and generate another 300 jobs.

Similarly, in the province of Santiago del Estero, Coteminas spent $96 million for a plant producing towels, dish towels and robes, creating 350 jobs and increasing its annual production capacity to 11,000 tons. In addition, Cardon Group invested $12 million for the production of jeans.

In the area of new product development, Colortex expanded its textile plant in Rioja last year, and in 2014 the company plans to incorporate specific machinery for the manufacture of woven Kevlar yarn, used in making bulletproof vests and other items for the security forces.

Fibre2fashion News Desk - India

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