Romanian textile industry is likely to find itself abandoned from Asia
Romania textile industry which used to be highly appealing for European fashion houses owing to its cheap labor force and low-price raw material will soon find itself abandoned from Asia. Textiles account for 10% in 2006's GDP. In 2010, the textile industry is likely to shrink by 25% compared to 2006. It will reach…
Egytex News Desk
Egytex
Romania Textile companies such as Zara, Christian Lacroix, Escada, Lacoste, Sonya Rykiel, Dolce and Gabbana or H and M have contracted out production. The outsourcing segment is highly unpredictable at the moment; as market estimation depends on it. As the result, plants working under contract will be the hardest hit and the Romanian market will see the contracting out system vanish by 2010
Romanian players will only share the medium and the luxury segments of the market. The market segment made up of low-quality products will be clearly dominated by Asia
It is estimated that many plants is likely to close down in 2007, influenced by the negative factors of the domestic market. Only those investing and holding high-productivity machinery will survive.
Source: YarnsandFibers.com
From the Egytex news archive, first published on 24 July 2006. Figures and names are as reported at the time.
