What are the challenges facing the European spinning industry? How can the government help?
The EU region remains a leading producer of both textiles and apparel (T&A). The value of EU's T&A production was €142.9 billion in 2017 (Statistical Classification of Economic Activities or NACE, sectors C13, and C14), which was divided almost equally between textile manufacturing (€77.4 billion) and apparel manufacturing (€65.4 billion). Regarding textile production, Southern and Western EU-where most developed EU members are located such as Germany, France, and Italy-accounted for nearly 80 per cent of EU's textile manufacturing in 2017. Today, more than ever, European producers must focus on quality that now accounts for sustainability as well. It's fundamental to invest in terms of communication as we do have fantastic stories of quality, know-how, traceability and transparency that could represent a real business advantage if properly communicated.
What are the challenges that this niche faces on the global front?
Unfair competition is driven by a lower price ration. This is why it's fundamental to focus on what I said in the previous answer and target the right market segment.
What is your USP in comparison to the other big players?
Varvaressos combines advanced technology, experience and human skills. In addition to this we have a transparent and traceable production in Europe, offering innovative and sustainable solutions. Another important feature is the flexibility to today's ever-changing environment.
What kind of innovations in machinery do yarn makers like you look for?
We always look for smart solutions that are able to give a strong result in terms of energy savings, digitisation and flexibility.
Is cotton grown and spun in EU gaining importance in Europe?
It is becoming increasingly important as it offers the supply chain the possibility for products to be 100 per cent made in Europe, and 100 per cent traceable and transparent.
What kind of impact has the US-China trade war and Brexit had on the spinning industry in EU?
The US-China trade war, Brexit and political and economic uncertainties in other regions of the world increase the volatility in the market. As the global economic activity slows, this affects consumption and also our business as a consequence. Besides, decisions for investments are postponed as well.
What are the factors affecting your company's performance?
Some of the factors that affect our performance are the economic environment that influences commercial and consumer behaviour, the volatility of raw material prices, the exchange rate of EUR to USD, and demand and supply.
What are the other plans at Varvaressos?
To work more on sustainable solutions staying true to Varvaressos DNA-that means always keeping in mind the quality of the products.
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