Top Banner
Cotton On 02 Financial support set to boost Syria’s textiles sector F rom 2011 to 2015 the Ministry of Industry intends to supply significant funds towards developing several sectors including cotton textiles, clothing, and blended denim fabrics. ese particular segments have been highlighted due to their potential for manufacturing high-value-added products. e Strategic Research & Communication Centre (SRCC) have said that the support for the production of clothing comes regardless of the decline in some segments, such as underwear and ready made garments, manufactured by public sector companies between 2005 and 2009. e Ministry is looking to specifically aim its support state-owned firms that produce cotton textiles. Yarn, however will not receive any financial support with a number of its segments falling dramatically in output. e cotton yarn output has decreased by more than 10% between 2005 and 2009, from 114,915 tonnes per year down to 102,648 tonnes according to the SRCC and therefore the five-year plan will not allow for the expansion of yarn segment. Synthetic yarn production has the worst output, with a drop of 65%, from 31 tonnes per year to only 11 tonnes. e demand for Syrian textiles has been decreasing in recent years, partly due to the expiration of the There is expected to be a boost in Syria’s textile sector witha new five year plan
2

Cotton Feature

Mar 11, 2016

Download

Documents

Martin Ball

Financial support set to boost Syria’s textiles sector
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Cotton Feature

Cotton On

02

Financial support set to boost Syria’s textiles sector

From 2011 to 2015 the Ministry of Industry intends to supply significant

funds towards developing several sectors including cotton textiles, clothing, and blended denim fabrics. These particular segments have been highlighted due to their potential for manufacturing high-value-added products.

The Strategic Research & Communication Centre (SRCC) have said that the support for the production of clothing comes regardless of the decline in some segments, such as underwear and ready made garments, manufactured by public sector companies between 2005 and 2009. The Ministry is looking to specifically aim its support

state-owned firms that produce cotton textiles.

Yarn, however will not receive any financial support with a number of its segments falling dramatically in output. The cotton yarn output has decreased by more than 10% between 2005 and 2009, from 114,915 tonnes per year down to 102,648 tonnes according to the SRCC and therefore the five-year plan will not allow for the expansion of yarn segment. Synthetic yarn production has the worst output, with a drop of 65%, from 31 tonnes per year to only 11 tonnes.

The demand for Syrian textiles has been decreasing in recent years, partly due to the expiration of the

There is expected to be a boost in S y r i a ’ s t e x t i l e s e c t o r w i t h a new five year plan

Page 2: Cotton Feature

Cotton OnTextiles abroad

03Pic

ture

Cre

dits

: sxc

.hu

Financial support set to boost Syria’s textiles sector

Multi-Fibre Agreement in 2005 and also due to the recent global economic crisis but a main impact has been from the recently signed free trade agreement (FTA) with Turkey, which has a more advanced textiles industry and produces a wider variety of fabrics.

According to Hussam Al Yousef, the general manager and vice-chairman of the Syrian Export Development Promotion Agency there is huge potential for the textile centre. “Textiles have a $2bn share of export earnings and this figure is supposed to increase to $8bn,” Yousef told textile company OBG last year.

The textile industry will also continue to receive aid from international organisations particularly UN Industrial Development Organisation (UNIDO) and the Italian government. With support from these organisations the Ministry of Industry has developed the Industrial Modernisation and Upgrading Programme (IMUP), who’s main aim is to modernise the textile industry. In 2007 a $2.2m programme was announced and the IMUP. Phase one began supplying technical aid to 36 companies in the textile sector.

The initiatives from IMUP included training and assistance in marketing, production and accounting. They also established an Upgrading and Modernising Unit. Phase two

started in 2010 and will focus on restructuring and upgrading various industrial enterprises, including those working with design, safety, testing and quality, according to a UNIDO press release.

Although the Syrian textiles industry will still need to contend with declining demand and increased regional competition in the years to come, the current range of initiatives backed by both the government and foreign and international partners may well help to ready the sector to successfully compete on a global level.

“Textiles have a $2bn share of export earnings and this figure is supposed to increase to $8bn”

SYRIA AND

TEXTILES:

Syria supplies local

markets with 3520 tons

of textile monthly.

The textile industry

employs 30% of the

Syrian population

Finished textile

goods have had

as much as 75%

tariff charged on

them.

Textiles

represents

nearly 12% of the

total industrial

output of Syria

Syrian woman making fabrics

Women carrying textiles to market