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Spanish apparel sector shifting base nearer home

06
Feb '12
Spanish apparel firms have relocated about 15 percent of their manufacturing activity from China to Spain and other countries in the region, including Portugal, Morocco and some East European nations.

Spanish companies have opted to shift their production base away from China due to the increasing cost of production in the Asian country, on the back of rising salaries of the workers, hike in transportation costs and problems in raising capital.

At present, Portugal is turning out to be one of the most competitive countries for producing apparels, according to Spanish Federation of Clothing Manufacturers (FEDECON).

In 2011, Spanish textile and apparel sales declined by nearly 4 percent, as per FEDECON figures.

FEDECON said it is necessary to boost the country's textile and apparel sector, which currently employs about 170,000 people, and urged the Government to introduce policies so that small and medium enterprises (SMEs) can have greater access to credit facilities.

The weak domestic demand for textiles and apparels has led to a “significant slowdown” in the revival process that had begun in mid-2010, according to a report released by the Centre for Information on Textiles and Clothing (CITYC).

However, there was a 15 percent jump in Spanish textile and apparel exports to €9,800 million last year. Maximum growth was witnessed in exports to Asian and American countries, but EU still accounts for two-thirds of total Spanish textile and apparel sales.

In 2011, Spanish textile and apparel imports are estimated to have increased by around 12 percent to €14,900 million. Nearly half of these imports were from the Asian countries.


Fibre2fashion News Desk - India


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