The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 6 NOVEMBER, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-11-05

Item

Price

Unit

Fluctuation

Date

PSF

1081.00

USD/Ton

0%

11/5/2015

VSF

2292.79

USD/Ton

0%

11/5/2015

ASF

2044.60

USD/Ton

0%

11/5/2015

Polyester POY

1045.54

USD/Ton

0%

11/5/2015

Nylon FDY

2521.28

USD/Ton

-1%

11/5/2015

40D Spandex

5357.72

USD/Ton

0%

11/5/2015

Nylon DTY

2757.65

USD/Ton

0%

11/5/2015

Viscose Long Filament

5874.58

USD/Ton

0%

11/5/2015

Polyester DTY

1284.28

USD/Ton

0%

11/5/2015

Nylon POY

2347.94

USD/Ton

-1%

11/5/2015

Acrylic Top 3D

2221.88

USD/Ton

0%

11/5/2015

Polyester FDY

1110.94

USD/Ton

0%

11/5/2015

30S Spun Rayon Yarn

2852.20

USD/Ton

0%

11/5/2015

32S Polyester Yarn

1749.14

USD/Ton

0%

11/5/2015

45S T/C Yarn

2710.38

USD/Ton

0%

11/5/2015

45S Polyester Yarn

1906.72

USD/Ton

0%

11/5/2015

T/C Yarn 65/35 32S

2316.43

USD/Ton

0%

11/5/2015

40S Rayon Yarn

3025.54

USD/Ton

0%

11/5/2015

T/R Yarn 65/35 32S

2600.07

USD/Ton

0%

11/5/2015

10S Denim Fabric

1.10

USD/Meter

0%

11/5/2015

32S Twill Fabric

0.93

USD/Meter

0%

11/5/2015

40S Combed Poplin

1.02

USD/Meter

0%

11/5/2015

30S Rayon Fabric

0.75

USD/Meter

0%

11/5/2015

45S T/C Fabric

0.76

USD/Meter

0%

11/5/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15758 USD dtd. 05/11/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Surat Textile standalone Sep '15 sales at Rs 18.32 crore

Surat Textile Mills has reported a standalone total income from operations of Rs 18.32 crore and a net loss of Rs 0.03 crore for the quarter ended Sep '15. For the quarter ended Sep 2014 the standalone total income from operations was Rs 38.66 crore and net profit was Rs 0.78 crore. Surat Textile shares closed at 1.91 on November 04, 2015 (BSE) and has given 13.02% returns over the last 6 months and -23.60% over the last 12 months.

SOURCE: The MoneyControl

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TUFS in final stage of revision, will be notified soon: Govt

Secretary (Textiles) Dr. S. K. Panda said that the Technology Upgradation Fund Scheme (TUFS) is in the final stage of revision and that it will be notified soon. Secretary (Textiles) informed this the Annual Conference of State Textiles Ministers 2015 held in New Delhi on 4th November. On the sidelines of conference, Textile Minister Santosh Gangwar has said, "TUFS had earlier faced difficulties. We had appealed to the Prime Minister that the scheme should be continued in a more organised manner. Therefore, the Government is coming out with a modified TUFS scheme, which will be unveiled shortly," reports media. TUFS was introduced in 1999 to attract investments in the textiles and jute sector by offering a 5 percent interest reimbursement.

Speaking on mega textile parks, the Secretary said that the Government has amended guidelines; he exhorted the states to make land available and motivate entrepreneurs to come forward. Replying to concerns on Scheme for Integrated Textile Processing Development, Dr. Panda said that a committee involving IIT Delhi, IIT Madras, IIT Bombay and Textile Research Associations have been formed, so that the best possible technology can be adopted for the same. He also said that the much-awaited Textiles Policy is in an advanced stage of finalization.

Dr. S. K. Panda, Secretary (Textiles) gave a brief presentation on various schemes, programmes and initiatives being undertaken by the Ministry, for the promotion of Indian textile sector. He outlined the vision and strategy of the Government for the textile sector, based on the philosophy of 'Sabka Saath Sabka Vikaas', with the following key components:

  • Consolidate promotion of handlooms, handicrafts, sericulture, jute, wool for production as per market demand
  • Provision of skill as per industry requirements
  • Promotion of export of apparel and garment for generation of employment
  • Development of infrastructure, textile parks; attention to treatment of effluent in the processing sector
  • Continuing support to the textile industry under Textile Upgradation Fund Scheme (TUFS) with suitable amendments
  • Improve "Ease of doing business"
  • Promotion of technical textiles

 

The Secretary also gave a glimpse of the achievements of the Ministry:

  • Under SITP, 22 new Textile Parks have been sanctioned; the scheme has been amended to extend benefits to all states
  • Landmark initiative on Apparel & Garments units in North Eastern States
  • National Handloom Day launched along with India Handloom brand by Hon'ble Prime Minister
  • Largest ever MSP operations conducted to support cotton farmers
  • Jute Diversification: CFC Schemes launched to support Women's SHGs
  • ISDS Scaled up -- 4.60 lakh persons trained up to October 2015
  • IPDS Scheme - 4 projects sanctioned
  • NTC turned around --land earmarked for Memorial of Baba Saheb Ambedkar.

The Government of India held the Annual Conference of State Textiles Ministers 2015 on 4th November, 2015. The purpose of the conference was to assess the existing position and formulate strategy for exploiting the potential of the textile sector. The Conference was chaired by Santosh Kumar Gangwar, Hon'ble Minister of State for Textiles (I/C). In response to the invitation, Ministers in charge of Textiles matters of 9 States, namely Bismita Gogoi (Assam), Chander Prakash (J&K), H. Rohluna (Mizoram), Amenba Yaden (Nagaland), Snehangini Chhuria (Odisha), Gajendra Singh Khimsar (Rajasthan), S. Gokul Indira (Tamil Nadu), Brahma Sankar Tripathi (Uttar Pradesh), Jupally Krishna Rao (Telangana) and Dr B.D. Chakma (Mizoram) attended the Conference and participated in the proceedings. Apart from ministers of these 9 states, senior official of 16 other states too participated in the Conference. Minister of Textiles (I/C) welcomed the State Ministers and said that since the last Textiles Ministers' Conference in September 2014, the Government of India has intensified its focus on improving governance and service delivery to the common man in the textile sector.

SOURCE: The SME Times

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Arvind Q2 net down 2%, lower raw material cost lifts EBITDA

Textile company Arvind  's consolidated profit declined 2.5 percent year-on-year to Rs 91 crore due to higher tax and exceptional item. Revenue increased 6.7 percent to Rs 2,096.4 crore from Rs 1,964.6 crore in same period. Earnings barring profit missed analysts' expectations. Profit was expected at Rs 86.3 crore and revenue of Rs 2,124.4 crore for the quarter with operating profit rising 10.5 percent and margin expansion of 30 basis points. ADVERTISING   Textile and brands & retail businesses continued to support topline while operational performance was largely supported by brands & retail segment. Operating profit increased 7.8 percent year-on-year to Rs 261 crore and margin expanded by 20 basis points to 12.5 percent during the quarter due to lower raw material cost that declined 10 percent. During the quarter, textile business (which contributes more than 60 percent to total revenue) grew by 5.2 percent to Rs 1,295.85 crore with EBIT (earnings before interest and tax) up 6 percent and margin expansion of 14 basis points) compared to year-ago period. Brand and retail segment (which contributes 33 percent to total revenue) has shown 9 percent year-on-year growth at Rs 702.86 crore with EBIT rising 50 percent and margin expansion of 99 basis points for the quarter. The company has reported an exceptional item of Rs 3.77 crore, which was retrenchment compensation paid to workers retired under voluntary retirement scheme. Tax expenses for the quarter were at Rs 40.56 crore, an increase of 67.8 percent compared to Rs 24.17 crore in same quarter last fiscal. Other income increased marginally to Rs 31.97 crore from Rs 30.31 crore while finance cost declined to Rs 94.7 crore from Rs 101 crore during same period. At 13:25 hours IST, the scrip of Arvind was quoting at Rs 279.15, up Rs 11.35, or 4.24 percent on the BSE.

SOURCE: The MoneyControl

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Government approves amendment to tax treaty with Turkmenistan

The government today approved amending the Double Taxation Avoidance Convention (DTAC) signed with Turkmenistan.India signed the treaty with Turkmenistan in 1997. The Cabinet approved the amendment to DTAC for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital, through a Protocol, an official release said. The protocol provides for internationally accepted standards for effective exchange of information on tax matters including bank information and information without domestic tax interest, it said. The information received from Turkmenistan in respect of a resident of India can be shared with other law enforcement agencies with authorisation of the Competent Authority of Turkmenistan and vice versa, it added. According to the statement the protocol further provides for 'Limitation of Benefits' article as an anti-abuse provision aimed at preventing misuse of the convention. The provisions of this article enable use of the provisions of domestic law and measures concerning tax avoidance or evasion in the event of misuse of the convention.

SOURCE: The Economic Times

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RBI puts a stop to barter trade on Indo-Myanmar border

Indo-Myanmar border is perhaps one of the few places on the earth where barter trade still exists. With the improvement in banking presence in the border, the Reserve Bank of India has now decided to officially stop the barter system, which is trading of goods without exchange of money. The system will be discontinued from December 1, RBI said in a notice. "Over a period of time the trade basket has diversified and adequate banking presence is in place to support normal trade with Myanmar," the central bank said. "It has, therefore, been decided, in consultation with Government of India, to do away with the barter system of trade at the Indo-Myanmar border and switch over completely to normal trade." All trade transactions with Myanmar, including those at the Indo-Myanmar border with effect from December 1, 2015 would be settled in any permitted currency. India and Myanmar agreed to allow barter trade of 22 items such as fruits, onion and bamboo. These are mainly locally produced commodities including agricultural and minor forest products. Trading of goods without the exchange of money has been allowed all these years to facilitate exchange of commodities such as mustard, pulses and fresg vegetables along the Indo-Myanmar border. This was allowed in parallel to normal trade in exchange of money or under the letter of credit system as per export-import policy guidelines.

SOURCE: The Economic Times

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Ready to help India in addressing economic challenges: US

NDA Government has taken a number of positive steps for streamlining the economy but is not moving as fast as America would like to have, a top US official has said, offering help to address India's internal challenges like bureaucratic and infrastructure bottlenecks. Underlining that India-US commercial ties has considerable room to grow, Arun M Kumar, US Assistant Secretary of Commerce for Global Markets, said "India is only our 11th largest trading partner and 18th largest export market. Two-way trade is more than five times smaller than in the US-China relationship." "India's vast untapped potential makes playing the long-game worthwhile," said Kumar, who is also Director General for the US and Foreign Commercial Service, at an event organised by Atlantic Council, a top American think-tank.

Listing out the challenges being faced, he said India's bureaucratic capacity; the overall ease of doing business; systemic infrastructure bottlenecks; and the challenge of finding adequate financing to complete infrastructure and other large-scale projects are the major hurdles. "We stand ready to help India address its internal challenges. By helping facilitate a single market, the GST is an important building block to facilitate greater trade and investment with India. "The Modi government is aware of the hurdles, and while it is not moving as fast as some would like, it has taken a number of initial, positive steps," he said. The US officials said the Strategic and Commercial Dialogue can and should be the long-term vehicle to help drive the commercial aspect of the relationship. Private sector from each country will be active participants in driving the relationship forward in the years to come, he noted.

Observing that America's commercial engagement with India is strategic, Kumar said looking to the future, the two growing economic relationship can serve as an anchor for even greater political cooperation between the world's two largest democracies. "Closer commercial ties can provide ballast to our relationship when occasional irritants pop up. It can serve as the basis for greater cooperation and engagement elsewhere in Asia: National economic strength can help both countries ensure the Rebalance to Asia and Act East policies have staying power," he said. It will help support democratic India's growing positive role in world affairs, he added. Kumar said the Commerce Department views India as an opportunity with enormous unmet potential, the trade being nowhere close to where it should be. "And we realise it must be a long term partnership," he said.

Noting that the US-India commercial relationship has the potential to be historic and transformational, he said, "By virtue of the size of the two economies, this relationship can create greater prosperity for businesses, workers, and communities in both our nations." "Exports to India support 180,000 US jobs, and India's exports to our country support roughly 365,000 Indian jobs. US firms employ about 840,000 people in India, while Indian-owned companies employ nearly 44,000 people in our communities," he said.

SOURCE: The Economic Times

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MoU between India and Belgium for Energy

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved a Memorandum of Understanding which has been signed between Indian and Belgian government authorities at the Federal and regional level for energy. The objective of this Memorandum of Understanding is to establish the basis for a cooperative institutional relationship to encourage and promote technical bilateral cooperation on new and renewable energy issues on the basis of mutual benefit, equality and reciprocity. The areas of cooperation will focus on development of new and renewable energy technologies in the field of Wind energy, Biomass, Solar (thermal and photovoltaic), Smart grids, Geothermal energy, Marine energy, contribution of renewables to diversification of supply and energy security, and any other mutually agreed areas. The Memorandum of Understanding will help in strengthening bilateral cooperation between the two countries.

SOURCE: PIB

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Global crude oil price of Indian Basket was US$ 45.66 per bbl on 05.11.2015 

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 45.66 per barrel (bbl) on 05.11.2015. This was lower than the price of US$ 46.78 per bbl on previous publishing day of 04.11.2015.

In rupee terms, the price of Indian Basket decreased to Rs 2998.62 per bbl on 05.11.2015 as compared to Rs 3066.99 per bbl on 04.11.2015. Rupee closed weaker at Rs 65.68 per US$ on 05.11.2015 as against Rs 65.57 per US$ on 04.11.2015. The table below gives details in this regard:

 

Particulars

Unit

Price on November 05, 2015 (Previous trading day i.e. 04.11.2015)

Pricing Fortnight for 01.11.2015

(Oct 14 to Oct 28, 2015)

Crude Oil (Indian Basket)

($/bbl)

45.66              (46.78)

45.55

(Rs/bbl

2998.62         (3066.99)

2958.93

Exchange Rate

(Rs/$)

65.68            (65.57)

64.96

 

SOURCE: PIB

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Pakistan’s GSP Plus status could be under threat, says EU

The suspension of GSP Plus status of Pakistan cannot be ruled out if the South Asian nation fails to comply with 27 conventions of the United Nations, particularly those that are related to human rights, said the European Union ambassador to Pakistan. He was talking to reporters on the sidelines of a seminar on “GSP Plus in Pakistan: Opportunities and Challenges”, organised by the Democracy Reporting International here on Thursday. Commerce minister lobbying prior to GSP-Plus review. The ambassador, Jean-Francois Cautain, pointed out that there were precedents when the EU suspended the GSP Plus status of different countries after they could not comply with the UN conventions. In this regard, he cited the example of Sri Lanka as its preferential trade facility was suspended due to human rights violations years ago. He clarified that the moratorium on death penalty was not directly part of the 27 conventions, but it was linked with the conventions on human rights and democracy. “The EU has completed its assessment of the progress pertaining to the GSP Plus status and the commitment made by Pakistan; an assessment report will be presented to the EU parliament before a review of the facility in January next year,” he said.

Speaking to the audience, German Ambassador Ina Lepel stressed that compliance with and implementation of the UN conventions were in favour of Pakistan and any deviation would hurt the country’s image. EU Mission Deputy Head Stefano Gatoo acknowledged that in the first phase Pakistan had made progress at the institutional and policy levels as far as commitments to the UN conventions were concerned. Now, “there is a need to progress at the implementation level,” he said. Federal Commerce Minister Khurram Dastgir, who was also present at the event, said Pakistan’s exports to the EU had risen more than 33% compared to the pre-GSP Plus period. In the first year after winning the GSP Plus status, exports rose 21.24% and they increased a further 12.5% in the first seven months of 2015 compared to the pre-GSP period. “The statistics of exports for 19 months under the GSP Plus programme suggest that this scheme has proved to be a resounding success for Pakistan.” Dastgir told the audience that GSP Plus came under the title of Special Incentive for Sustainable Development and good governance was an incentive to show progress on international human rights obligations and was not a reward. He insisted that Pakistan was the only country that had made institutional arrangements and established a treaty implementation cell in order to meet international commitments.

According to Dastgir, Pakistan has made three significant achievements since the current government took over in June 2013. “Incidents of terrorism have dropped by 70% and financial stabilisation and consolidation of democracy are the other noteworthy accomplishments, which the world also acknowledges.” The chairman of All Pakistan Textile Mills Association said the GSP Plus scheme had opened the doors to export of Pakistani products to the EU market in a smooth manner. Almost 80% to 85% of the country’s exports to the EU comprised textile products, he said, adding the textile industry had set a target of increasing annual exports from $13 billion to $26 billion over the next five years. “It could be possible if the sector is provided with special incentives and a level playing field.”

SOURCE: The Tribune

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Final Text Released for the Trans-Pacific Partnership Trade Deal

The much-awaited full text of the 12-nation Trans-Pacific Partnership agreement has been released, revealing that many tariffs on US exports of textiles and apparel to the other TPP markets will reduce to zero on day one, according to the text on the blog of the Office of the US Trade Representative. While the TPP requires a “yarn forward” rule of origin to ensure that the benefits of the pact go to workers and businesses in the 12-member countries, the chapter on Textiles and Apparel includes a “short supply list,” which provides TPP partners with flexibilities in cases where the TPP members do not produce enough of a particular fabric or yarn to meet production needs. The text also provides a special feature for Vietnam, linking improved access to the US market for cotton trousers to the purchase of US-made cotton fabric.

Click here to read the full text of Chapter 4: Textiles and Apparel

SOURCE: Fibre2fashion

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Implications of TTP provision yarn forward on China and Vietnam

An important element of the Trans-Pacific Partnership (TPP) trade bloc, the 'Yarn Forward' agreement - a component part of the Textiles and Apparel section has very specific implications for China, Vietnam and Malaysia. Under this provision, only yarn made by TPP members may be sold onto the TPP markets, which includes producers and consumers such as the United States and Japan. The textiles manufacturing businesses across the TPP are something of a mixed bunch. Countries such as the U.S. and Japan are capable of producing very fine luxurious products; others such as Vietnam have largely been dependent on sourcing lower quality products from China and integrating them into finished items. The Yarn Forward scheme therefore has very specific implications for both countries. As the U.S. Association of Importers of Textiles & Apparel (ITA) put its view of the TPP.

This provision has numerous implications on:

  • Vietnam can provide low cost manufacturing at an equivalent current productivity ratio of about 70 percent of that achievable in China. However, its textiles industry relies heavily on cheap Chinese imports of yarn. In order to take advantage of the TPP agreement and sell onto the lucrative markets of Japan and the United States, it will need to change its sourcing habits across the entire textiles industry. Suppliers could include the
  • United States and Japan for high quality items, and Malaysia, Mexico and Peru for lower quality production. Obvious and significant trade routes have opened up in this area assuming Vietnamese manufacturing can be upgraded to ensure quality sustainability. This alone may drive U.S. investors to Vietnam to assist with machinery upgrades via joint ventures and U.S. owned factories.
  • Malaysia, Mexico & Peru : Each of these countries may gain spin off benefits by seeing investment in their textiles industries to support trade with the U.S. and to upgrade existing facilities.
  • United States: The TPP agreement also contains significant aspects concerning the upgrading of IP protection and the enforcement of this – good news for the American fashion industry, long frustrated with copycats in China.
  • By bypassing Chinese production, the U.S. has opened a window for trade in the form of raw yarn to be exported, finished elsewhere under more secure conditions available in China, and then re-exported back to the U.S. consumer. Accessing cheap yet well organized labor is part of this opportunity; Vietnam and Mexico both offer solutions.
  • China: The TPP Yarn Forward provision is obviously bad news for China’s textiles and apparel manufacturers. Unfortunately they may now be paying the price for decades of combining official production capabilities with pirating goods as well. The Chinese yarn manufacturing industry is now effectively limited to China’s domestic market and those of the ASEAN agreement. China is also about to lose the entire Vietnamese market in addition to being effectively cut off from U.S. trade. While this sounds draconian, in actual fact the Chinese industry has been in decline for a number of years, losing much of its base to Bangladesh and, to some extent, India. However, the message for foreign investors in China’s textiles and apparel markets is clear – it is now time to seriously look at investing in Vietnam as an alternative.

For Washington, it is tempting to think of the fashion industry having finally put one over the pirates. For China, it is the legacy of not cracking down on counterfeit products sufficiently. The TPP agreement contains multiple provisions that will redirect global supply chains for certain products, as well as upgrade and enhance IP protection. This has very specific implications for American and other foreign investors throughout the region.

SOURCE: Yarns&Fibers

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Weaving units in Pakistan faces financial loss due to import of Indian fabric via Dubai

The weaving units in Pakistan facing heavy financial losses due to import of Indian fabric from Dubai which is still unchecked and the government need to stop this import, said Pakistan Apparel Forum (PAF) chief Jawed Bilwani. The government should investigate the Indian fabric import from Dubai and should ask the exporters of Dubai to produce the certificate of origin of the fabric imported into Pakistan. Itt is a well-known fact that there is no manufacturing unit of fabric in Dubai and the Indian fabric is imported to Pakistan via Dubai. This open import of Indian fabric, large number of weaving units in Gujranwala, Faisalabad and Lahore are non-functioning. The recent relief measures including long term financing (LTF) and export refinance (ERF) by the government on yarn import, it is clearly evident that the government is pampering large size units, which is indeed a matter of great irony for thousands of small and medium size garment manufacturing units, as small and medium size units do not take LTF and ERF, he added. Bilwani said that Prime Minister's Special Assistant on Revenue Haroon Akhtar Khan himself was of the opinion that raw material-cotton yarn should not be exported and instead be remained in Pakistan for domestic consumption for value added goods for exports. The cotton production of Pakistan has decreased by 10.38% to 1.10 million bales in 2014-15 over 2013-14.

In case the government desires to continue imposing 10% regulatory duty on import of cotton yarn, he said that the vital value added textile export sector, which earned largest amount of foreign exchange for the nation and generates huge employment, would be completely ruined. The case of anti dumping against import of Indian cotton yarn is still pending with National Tariff Commission (NTC) but the government, without consulting NTC, has imposed 10% regulatory duty on import of cotton yarn from November 1, 2015. It was surprising that the government announced this measure all of a sudden before the meeting of the Economic Coordination Committee (ECC) without taking its approval, adding that even important ministries such as Ministry of Commerce, Ministry of Textile and Ministry of Industries were not taken on board.

SOURCE: Yarns&Fibers

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Russian government to ensure import replacement in domestic technical textiles industry

The Russian government plans to focus on the development of the domestic technical textiles industry for the next several years. Technical textiles is considered the most promising segment of the Russian light industry, according to Denis Pak, head of the department of development of domestic trade, light industry and consumer market of the Russian Ministry of Industry and Trade. According to Denis Pak, linen and wool currently occupy a small share of the Russian market and it is steadily declining. In contrast to this trend, the consumption of polyester and viscose is steadily growing. Denis Pak, head of the department of development of domestic trade, light industry and consumer market of the Russian Ministry of Industry and Trade. “Historically, the Russian light industry was focused on natural raw materials, and in particular cotton, wool, linen, while the production of synthetic fibres and technical textile materials was insignificant. However, according to our calculations, technical textile industry could potentially provide the largest contribution to the national GDP and we are planning to focus on the development of this segment during the next several years,” commented Denis Pak. However, according to official data from the Russian Ministry of Industry and Trade, despite all the efforts that have been taken by the Russian government in recent years, the volume of the domestic technical textiles production still remains low, while up to 80% of the market accounts for imports. Still, according to the government’s plans, the current situation is going to be changed in the coming years.

According to the Russian Ministry of Industry and Trade, the forthcoming implementation of a series of investment projects in the field of technical textiles in Russia should provide import replacement in the domestic technical textiles market that would amount to 70 billion rubles (US$1,2 billion) a year. It is expected that high demand for future technical textiles production will be evident in numerous segments of Russian industrial production, such as special protective clothing, the current consumption of which in Russia is by 3-4 times lower than in the EU states. The government also plans to allocate funds to further accelerate the R&D activities in the field of technical textiles and in particular those aimed at developing new types of synthetic fibres and yarns. It is planned that state funding will be provided to more than 30 scientific and industrial research centres in Russia and Belarus, which conduct research activities in this field. Successful completion of the research activities will allow to speed up the implementation of some important investment projects in the field of technical textiles that have been declared by the Russian government and private investors in recent years.

The Russian government has great expectations about the building of the Ivanovo plant for the production of synthetic fibre, which should begin in the coming months. Inside production unit of Kurskhimvolokno enterprise.  Due to the current financial crisis in Russia caused by sanctions imposed by Western countries, the implementation of the project that can become the most important project for the Russian technical textiles industry since the collapse of the USSR has faced serious difficulties, as Vnesheconombank, one of Russia’s largest banks, which should become the main lender of the project, had serious questions regarding the potential demand for future production of the plant. However, according to an official spokesman of the Ivanovo government, to date, all the financial issues have been resolved. The overall volume of investments in the project is estimated at RUB 20 billion (US$400 million). At the same time, in addition to Ivanovo project, the intention to establish new capacities of technical textiles was announced by SvetlogorskHimvolokno, one of Russia’s largest producers of artificial fibre.

Valery Yudenko, head of SvetlogorskHimvolokno, said that the company plans to establish a new production of nonwoven polypropylene material during the next several months. The capacity of the plant at the initial stage will be 3000 tonnes with a possibility of a significant increase during the next several years. According to Yudenko, the majority of future production will account for membranes, both construction and hygienic. The new production will be used in the manufacture of sanitary goods, and diapers, as well as medical surgical kits, in particular. According to Dmitry Bisa, a senior engineer-technologist of SvetlogorskHimvolokno, the production of construction membranes will be executed using the method of ultrasonic adhesion, while hygienic membranes will be produced in the adhesive way. This will be a unique production that has no analogues in Russia. It will be officially commissioned in January 2016, while future production will be supplied both to the domestic and foreign markets.

Finally, building of a large plant for the production of synthetic fibres and yarns will soon be started by LLC "Scientific and technical center" Elbrus, one of Russia’s largest research and production companies in the field of technical textiles.  The new plant is expected to be built in the Kashira district of the Voronezh region. The volume of investments is 46 billion rubles, while the majority of funds are expected to be provided by state banks under the guarantees of the Russian government. The new plant will be located close to the Novovoronezh nuclear power plant, one of Russia’s largest nuclear power plants, which should ensure regular supplies of cheap electricity for its needs. The commissioning of the new plant is scheduled for 2018. The new plant has the capacity to produce up to 2,000 tonnes of hydrocellulose technical yarn, 100 tons of activated carbon fibre materials, as well as 60,000 tonnes of hydrocellulose rayon staple fibre per year. The new plant will be located on the area of 54 ha, while payback period of the project will be 5-10 years. It is planned that the commissioning of new production facilities will contribute to tightening of competition in the market. To date, the majority of Russia’s needs in technical yarn and chemical fibres has been met by Kurskhimvolokno enterprise, which was launched as far back as 1960.

SOURCE: Innovation in Textiles

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