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Mansoor Ahmad
Sunday, December 16, 2012
One such is the inability of Chinese textile manufacturers to produce efficiently basic textiles, while the GSP Plus status from European Union is another. The propensity to add value was also a positive sign in 2012.
Gohar Ejaz Group Leader All Pakistan Textile Mills Association (APTMA) said yarn exports from Pakistan to China are growing at an astonishing pace. Two years back, our average monthly yarn exports were 40,000 tonnes, while average exports during last three months stood at 65,000 tonnes per month. The growth was mainly because of growing appetite for yarn in China, he added.
This is just beginning since yarn and fabric demand in China will continue to scale up because of closure of basic textiles, he said and added the labor costs in China are very high, making it unviable to produce low value added textiles.
He said in order to meet the Chinese demand the industry will have to invest in new machines. However, at 13-14 percent markup, it would not be possible to add new machinery, he added. He said the energy crisis is another drawback. He warned that if the planners failed to resolve these two issues, India would replace Pakistan as main yarn supplier. In fact, he added, India is already making inroads into Chinese yarn market, as the Pakistani spinners are working on reduced capacities due to energy and power shortages.
Yes the textile sector is buoyant, he admitted, saying but buoyancy is limited to the relatively larger mills that have resolved their energy issues through investment in alternate energy resources. However, smaller units of 25,000-30,000 spindles do not have resources to invest in alternate energy, he added. Thirty percent of the production capacity is closed due to energy shortages, he regretted. He said most of the close units are otherwise highly efficient but they cannot run without power. There is a need to revive these units urgently, he added.
A spinner and knitwear exporter M I Khurram said that besides Chinese demand the industry is also expecting higher market share in the EU block at the start of 2014 when we are expected to be granted the GSP plus status. We will have to plan now to avail that golden opportunity. We will need more yarn for local production and the demand for fabric would also increase, he added. Would we be able to grab this opportunity or miss the bus again as we did in the past, he questioned.
Pakistan has got inherent advantage in basic textiles. It has not been able to grab its due share in the global market, said Shahzad Ali Khan chairman of APTMA Punjab. He said the country failed to cash in on opportunities that came its way during last two decades.
The first opportunity came during the East Asian crisis when the entire processing sector of Hong Kong was willing to relocate their industries in Pakistan, he said. We missed that bus as our entrepreneurs were not prepared to enter into partnership with foreigners. Moreover, our planners lacked the vision to lure the prospective investors to Pakistan, he added.
The second bus was missed when Pakistanis invested over $5 billion in balancing and modernisation of their units on the firm assurance of the then finance minister that the interest rates would remain in single digit, he said. He said the markup increased in few years to 15 percent. The entrepreneurs that took bank loans at 4-5 percent to import machines suddenly found themselves in hot water as they were unable to service their loans at exorbitant mark-up. So, instead of consuming their energies of growth they spent most of their time trying to save their enterprises from bank defaults, he added.
Chairman APTMA Ahsan Bashir said the other regional countries shielded their textile sector from the financial crunch by facilitating them through subsidies on machine import and lucrative duty drawbacks on exports. India, China and Bangladesh used this period of great opportunity to strengthen their textile sector, he added.
Bashir said Pakistan added 1.8 million spindles and 3,179 shuttle less looms in basic textiles since 2006 against an increasing addition of 6.2 million spindles and 21,850 shuttle less looms in Bangladesh, which now has 3/4th spinning capacity and higher weaving capacity than Pakistan. He said the statistics of International Textiles Manufacturers Federation reveal that in past six years during 2006-11 periods, India added 15.33 million spindles and 30,850 shuttles less looms. The statistics also reveal that China has added 38,290 spindles and 360,100 looms in its spinning and weaving industries, he added.
It now has total of 120 million spindles and 587,500 shuttles less looms. All these additions in capacities were possible due to prudent policies of the competing economies, he said.
Chairman Pakistan Hosiery Manufacturers Association Punjab Adil Butt said that energy and power crisis was a wakeup call for the textile sector. He said most of the industries in textile sector improved their efficiency to global level to cut costs particularly in 2012. In addition, they concentrated on value addition.
He said though the textile exports have remained much below in quantity terms from the peak achieved in 2008, the exports in value jumped by over $3 billion due to higher value addition.
Textile mills happy over growing yarn demand from China - thenews.com.pk
Sunday, December 16, 2012
One such is the inability of Chinese textile manufacturers to produce efficiently basic textiles, while the GSP Plus status from European Union is another. The propensity to add value was also a positive sign in 2012.
Gohar Ejaz Group Leader All Pakistan Textile Mills Association (APTMA) said yarn exports from Pakistan to China are growing at an astonishing pace. Two years back, our average monthly yarn exports were 40,000 tonnes, while average exports during last three months stood at 65,000 tonnes per month. The growth was mainly because of growing appetite for yarn in China, he added.
This is just beginning since yarn and fabric demand in China will continue to scale up because of closure of basic textiles, he said and added the labor costs in China are very high, making it unviable to produce low value added textiles.
He said in order to meet the Chinese demand the industry will have to invest in new machines. However, at 13-14 percent markup, it would not be possible to add new machinery, he added. He said the energy crisis is another drawback. He warned that if the planners failed to resolve these two issues, India would replace Pakistan as main yarn supplier. In fact, he added, India is already making inroads into Chinese yarn market, as the Pakistani spinners are working on reduced capacities due to energy and power shortages.
Yes the textile sector is buoyant, he admitted, saying but buoyancy is limited to the relatively larger mills that have resolved their energy issues through investment in alternate energy resources. However, smaller units of 25,000-30,000 spindles do not have resources to invest in alternate energy, he added. Thirty percent of the production capacity is closed due to energy shortages, he regretted. He said most of the close units are otherwise highly efficient but they cannot run without power. There is a need to revive these units urgently, he added.
A spinner and knitwear exporter M I Khurram said that besides Chinese demand the industry is also expecting higher market share in the EU block at the start of 2014 when we are expected to be granted the GSP plus status. We will have to plan now to avail that golden opportunity. We will need more yarn for local production and the demand for fabric would also increase, he added. Would we be able to grab this opportunity or miss the bus again as we did in the past, he questioned.
Pakistan has got inherent advantage in basic textiles. It has not been able to grab its due share in the global market, said Shahzad Ali Khan chairman of APTMA Punjab. He said the country failed to cash in on opportunities that came its way during last two decades.
The first opportunity came during the East Asian crisis when the entire processing sector of Hong Kong was willing to relocate their industries in Pakistan, he said. We missed that bus as our entrepreneurs were not prepared to enter into partnership with foreigners. Moreover, our planners lacked the vision to lure the prospective investors to Pakistan, he added.
The second bus was missed when Pakistanis invested over $5 billion in balancing and modernisation of their units on the firm assurance of the then finance minister that the interest rates would remain in single digit, he said. He said the markup increased in few years to 15 percent. The entrepreneurs that took bank loans at 4-5 percent to import machines suddenly found themselves in hot water as they were unable to service their loans at exorbitant mark-up. So, instead of consuming their energies of growth they spent most of their time trying to save their enterprises from bank defaults, he added.
Chairman APTMA Ahsan Bashir said the other regional countries shielded their textile sector from the financial crunch by facilitating them through subsidies on machine import and lucrative duty drawbacks on exports. India, China and Bangladesh used this period of great opportunity to strengthen their textile sector, he added.
Bashir said Pakistan added 1.8 million spindles and 3,179 shuttle less looms in basic textiles since 2006 against an increasing addition of 6.2 million spindles and 21,850 shuttle less looms in Bangladesh, which now has 3/4th spinning capacity and higher weaving capacity than Pakistan. He said the statistics of International Textiles Manufacturers Federation reveal that in past six years during 2006-11 periods, India added 15.33 million spindles and 30,850 shuttles less looms. The statistics also reveal that China has added 38,290 spindles and 360,100 looms in its spinning and weaving industries, he added.
It now has total of 120 million spindles and 587,500 shuttles less looms. All these additions in capacities were possible due to prudent policies of the competing economies, he said.
Chairman Pakistan Hosiery Manufacturers Association Punjab Adil Butt said that energy and power crisis was a wakeup call for the textile sector. He said most of the industries in textile sector improved their efficiency to global level to cut costs particularly in 2012. In addition, they concentrated on value addition.
He said though the textile exports have remained much below in quantity terms from the peak achieved in 2008, the exports in value jumped by over $3 billion due to higher value addition.
Textile mills happy over growing yarn demand from China - thenews.com.pk
