Latvian Textile and Clothing Industry. January 2006 Jadviga Neimane, Project Manager

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1 Latvian Textile and Clothing Industry January 2006 Jadviga Neimane, Project Manager

2 Output Value and Employment Output Value of textiles and clothing ( 000 LVL)* Number of employees in the textiles and clothing sector * *

3 Contribution to Foreign Trade in 2004 The contribution: in total export of Latvia 10,7% in total imports of Latvia 5,7% 84% of textiles are produced for export

4 Main sub-sectors Ready-made clothes High quality lingerie Cotton yarn and fabrics Wool yarn and fabrics Flax fibre, yarn and fabrics Man-made and glass fabrics Home textile Workwear and protective clothes

5 Development of Foreign Trade with Textiles in (in 000 LVL) Export Import

6 Export and Import Export of textiles and textile articles in 2005 (I-VI) EU 77% Import of textiles and textile articles in 2003 EU 86% ASV 2% Others 7% CIS 14% CIS 4% Others 10%

7 Development of the Export by Area (in 000 LVL) CIS EU TOTAL

8 Development of Export of Textiles and Textile Articles of Latvia to Particular Countries of the European Union (in 000 LVL) Sweden Portugal The Netherlands Luxembourg Italy Ireland Greece Great Britain France Finland Spain Denmark Germany Belgium Austria

9 Exports of Textiles and Textile Articles ( 000 LVL) Cotton 54. Man-made filaments 63. Other made-up textile articles; sets; work clothing and work clothing textile 61. Articles of apparel and clothing accessories, knitted or crocheted 62. Articles of apparel and clothing accessories, not knitted or crocheted

10 Imports of Textiles and Textile Articles ( 000 LVL)

11 Strengths of the Latvian Textile and Clothing Industry Export orientation Short lead times and reliable deliveries Skilled, flexible and cost-efficient workforce Educated and experienced engineers Strong and motivated top management Brand names recognized in the Baltic States and the CIS Substantial experience of working with the CIS countries Quality certificates Modern production equipment

12 Delivery Lead Time Ranges for Selected Types of Products Description of output Sewing of garments from fabrics provided by the customer Delivery lead time range 2 6 weeks Production of woolen, cotton, flax and synthetic yarn from fiber 2 6 weeks Production of woolen, cotton, flax and synthetic fabric from fiber 3 6 weeks Production of blankets, plaids, sheets, towels, etc. from fiber 7 8 weeks Production of finished garments from fiber Production of finished garments from yarn Production of hosiery and lingerie from yarn Sewing of lingerie from components weeks 4 6 weeks 8 weeks 4 6 weeks

13 Location of Textile and Cloth Producing Factories

14 JSC Valmieras Stikla Šķiedra One of the largest enterprise of the chemical and textiles industries within the Baltic States Producer of glass products: yarns, fabrics, non-woven products Export Markets: Germany 45%, USA 14%, Italy 10%, UK 7% Investment: ,7 million LVL 25 million LVL Net sales in LVL Export % Profit in LVL Number of employees ,5% %

15 Made investment New factories New equipment

16 Education Level of education Field of studies Enrolment in 2005 Graduates in 2004 Vocational schools Textile processing and manufacturing Riga Light industry Technical Secondary School Textile processing and manufacturing Riga Technical University Production technology of textiles and manufacture of textiles articles

17 Role of LIDA within Latvian economy Main activities: Attraction of foreign direct investment Promotion of foreign trade Administration of state aids via EU Structural Funds LIDA services: Information on doing business in Latvia Contacts with Latvian business partners Identification of best property options Assistance with start-up procedures Investment project follow-up Legal assistance

18 Main reasons for choosing Latvia Excellent business environment High growth rates of economy Low Corporate income tax (CIT) at 15% Equal legal treatment Short business start-up times Numerous incentives (e.g. SEZ) Western work ethic English widely spoken Strategic geographic position Centre of the Baltic market Proximity to Russian market Transport and logistics

19 Contacts For additional information please contact: Mr. Guntis Strazds, President Association of Textile and Clothing Industry Elizabetes iela 2a-420, Riga, LV-1010 Phone/fax: Ms. Jadviga Neimane, Project Manager Latvian Investment and Development Agency Pērses iela 2, Riga, LV-1442 Phone: ; fax:

20 Welcome to Latvia! Perses iela 2, Riga, LV 1442, Latvia Phone: Fax:

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