Ukrainian Textile & Leather industry ,1 thsd ,0 thsd ,9 thsd.. Textile industry. Leather&Footwear. Apparel

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2 Ukrainian Textile & Leather industry Textile industry ,9 thsd.. Apparel ,1 thsd. Leather&Footwear ,0 thsd.

3 Textile & Leather Industry ,8% +7,3% +13,3% Production Export Capital Investments +4,2% Staff workforce

4 Partners of Ukrainian Textile&Leather industry 146 countries America 28 Africa 30 Europe CIS Asia 35 Australia 8

5 Continental structure of Ukrainian export Europe 71% mln.$ 819,6 mln.$ Europe 84,4% ,1 mln.$ 813,3 mln.$ CIS 24% Asia 2% CIS 12,8% Asia 1,8% Others 3% Others 1,0%

6 ТОP-10 countries of Ukrainian export Others 18,1% Germany 21,7% Poland 14,4% Romania 10,7% Slovakia 1,9% Belarus 3,0% France 3,0% Hungary 4,8% Denmark 5,8% Russia 7,6% Italy 9,0%

7 ТОP-10 import countries to Ukraine Others 25,9% China 27,4% Poland 10,2% India 2,1% Turkey 9,2% Russia 2,4% Belarus 2,5% USA 2,5% Bangladesh 2,5% Italy 7,1% Germany 8,2%

8 export 1,6% clothes Commodity structure іmport 2,3% 18,0% footwear 16,6% 5,9% 48,0% other finished textile products 12,5% 10,4% leather and fur products 54,7% 10,0% 16,0% raw materials (fibers,yarn, fabrics,leather) 3,9%

9 Ukrainian export of apparel Outerwear 64,2% Underwear 17,4% Other clothing and accessories 10,7% Others 1,5% Hosiery 3,1% Clothes made of leather 3,1%

10 Capital investments in Ukraine, % 164,1 Іndustry Textile&Leather industry 168,4 185,1 113,5 111,5 85,8 107,0 107,3 81,2 137,1 101,7 129,

11 Ukraine interest of equipment s import Directions of modernization 2016 wet-heat treatment &decoration 22% sewing 31% leather& footwear 8% others 1% auxiliary 3% knitting 20% weaving 3% equipment for processing of textile materials 4% spinning 8%

12 Ukraine is attractive to Europe Textile, apparel and footwear production Labor resources Advantageous geographic location and logistics EU FTA Canada FTA Developed border and customs services

13 Potential of Textile&Leather industry EU-Ukraine DCFTA Canada-Ukraine FTA Ukrainian export up to 2.5 times Active companies 2340 Staff workforce by 2 times

14 Potential of Textile & Leather industry

15 Ukrainian genetic center for sheep breeding Transcarpathian State Agricultural Experimental Station Institute of Animal Husbandry "Askania-Nova

16 Flax and industrial hemp for textiles The climate in Ukraine is suitable for the production of cheap and high quality linseed and hemp fiber Ukraine has varieties, cultivating, harvesting and processing technologies and business interests

17 Flax and industrial hemp for textiles carpets natural cloth, mixed fabric technical textiles yarn, canvas geotextiles high-quality ropes, twine non-woven materials a wick for candles fire hoses clothes footwear

18 Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. 7% Child 6-18 years 5,1 mln. 12% Textile and leather goods market - second after food consumption more than 5 billion.$ per year

19 The problems of development of industry Non-equal conditions of competition in domestic market lack of complete accounting of trade ( tax legislation) lack of monitoring the safety of the products Limited own raw material resources Lack of skilled staff Low productivity Imperfect management system Lack of available loans and state support for modernization and expansion of production for the introduction of new technologies Import 45,2% Ukrainian production 12,1% Lack of state support for participation in international exhibitions Smuggling, shadow production 25,4% Secondhand 17,3%

20 9 months 2017 Import - 93,7 thsd.tons (+29,6% to 2016) The range of imports price 0$- 1.3$ per 1kg Max price $ / 1kg from Finland Europe is the main importer of second hand to Ukraine The largest volumes, tons Finland 3,6% Belgium 4,8% Latvia 7,3% Netherlands 3,6% United Kingdom 10,6% Czech Republic 1,0% Switzerland 10,8% Norway 0,5% Others 3,3% Poland 31,5% Germany 23,1%

21 Ukrainian import of second hand thsd. tons 77 78, , ,3 93,1 98,6 102,4 91,1 93,2 111,8 1 million tons 1 billion $ 2016: 2.6 kg was imported for each inhabitant of Ukraine (in ,7 kg, in ,0 kg)

22 Association «Ukrlegprom» since 2000 outwear and underwear, knitwear, sportswear leather wear, fur wear work wear, uniforms, military clothing fabrics, knitted materials, non-woven materials, technical textiles home textiles, interior decorations, toys leather, leather haberdashery, fur footwear, safety shoes

23 Association «Ukrlegprom»

24 The main activities of Ukrlegprom Industry Legislation Fashion & Exhibition Technical regulation Foreign Trade Taxes & Customs Staff & Training Military Uniform Environmental protection Market monitoring

25 Strategy of industry development ❶ STAFF and TECHNOLOGY MODERNIZATION ❷ LEGALIZATION ❸ COMPETITION ❹ INVESTMENT ❺ INNOVATION ❻ POPULARIZATION

26 Ukrlegprom s steps & results Cooperation with the Ministry of Economic Development and Trade of Ukraine Initiation of Pan-Euro-Med process (due the problem with EUR-1 for apparel according to EU-DCFTA) Protection of equal customs duties (0%) for footwear & individual items to EU-DCFTA (it was 10% till for Ukraine) Protection of import duties on apparel, footwear, carpets within the UA-Turkey FTA (now in negotiations process) Prioritization of Textile & Leather industry in National Export Strategy of Ukraine Cooperation with the Ministry of Foreign Affairs, EBRD, CUTIS, E4U, WNISEF, etc. representation of potential business opportunities for the export search and suggestion of investment proposals providing information, analytic and proposals for industry development B2B, B2G, training programs for producers, etc.

27 Strategy directions UA - EU ❶ Increase of fabrics, leathers and applied materials production in Ukraine ❷ Increase of employment and decrease of migration ❸ Increase of productivity ❹ Promoting of investment & innovation ❺ Upgrate of equipment & technology ❻ Harmonization of technical regulations

28 Executive Directorate of Ukrlegprom Tetyana Izovit President Head of the Board Iryna Naumenko Senior Executive Officer Anna Nesterenko Senior Legislation Officer

29 tel , , Ukraine, Kyiv, Zahorodnya str.,15 Thank you! www. ukrlegprom.org.ua

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