Textination GmbH 2. La-Liana / pixelio.de. Liza Litsch / pixelio.de
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1 TEXTINATION NEWSLINE BULGARIA'S TEXTILE AND CLOTHING INDUSTRY IS OPTIMISTIC SEWING LOCATION FOR INTERNATIONAL BRANDS / GERMANY IMPORTANT SUPPLIER OF MACHINES Since 2012 Bulgaria is in the focus of mediumsized commercial brands again. They leave the Far East and return to the Balkan region. The strength of the country lies in the production of higher quality products such as suits, blazers, coats and ladies' wear. The general conditions are considered to be good. The sector is modernizing. The companies are reliably, price and delivery agreements are kept. The large and medium-sized enterprises are well supplied with orders, the cushion is normally about three months. The sector relies less on foreign investment rather than manufacturing platforms in cooperation with Bulgarian companies are sought. The customers demand from their Bulgarian partners Stephanie Hofschlaeger / pixelio.de Sofia (gtai) - Bulgaria's textile and clothing industry is optimistic about the future. The industry is export orientated with connections to foreign clients. There is hardly a tenth of the production which remains within the country. Short delivery times with good product quality, competitive wages and low transport costs are among the assets. Demography and migration lead to a shortage of skilled workers. The industry uses the opportunity to modernize, of which the machinery suppliers benefit. a broader spectrum of tasks, like cut development, material purchasing, labeling and storage. There is a trend to full business. Companies with financial strength and administrative capacity have a good chance. Important sector Larger companies (over 100 employees) currently are doing well, so in the large-quantity sewing business, for example with coats, pants and suits. Bulgaria applies to "fast fashion" as a strong partner. Large orders can be processed quickly. "Corporate Fashion" (employee clothing) became a good segment because European public contracts aiming at a production in Europe. Subcontracting to small sewing companies is common. These are never a direct contractor. For companies on the 3rd or 4th stage is not much merit left. Textination GmbH 1
2 Most of the better German, French, British and Italian brands are also sewn in Bulgaria. Examples of well-known international brands are Hugo Boss, s'oliver, Esprit, Hallhuber, Roy Robson, Barbour, Boldessar, C&A, NEXT, OTTO, Camel, Gekas, Tommy Hilfiger, Armani, Montclair, Burberry, Max Mara. Image brands are now also focused on labor-ethical and social issues. The Italian textile and clothing company E. Miroglio is about to invest Lev 55 million (EUR 28.1 million, at a fixed exchange rate: 1 EUR = Lev) in its factories in Sliven, Yambol and Svishtov. The plan is to modernize the facilities, expanding the product range and the construction of a new factory building. In this the production of clothing fabrics in an new innovative process, made for the first time in Bulgaria, is planned. Bulgaria's textile and especially the more important clothing industry are an important industry sector and employer. In 2012 the production of textiles and clothing rose by 1.3% over the previous year to Lev 2,885.9 million. Accounted for textiles were Lev million, on clothing Lev 2,178.2 million. There were 595 textile manufacturers with 11,367 employees and 4,393 of clothing with 104,103 employees. The foreign direct investment in the textile industry reached EUR 74.7 million in 2012, (-84% over the previous year), in the clothing industry at EUR million (-1%). La-Liana / pixelio.de Regional distribution The largest number of clothing companies is located in the South West regions (1,404), South Central (1380) and North Central (536). The textile companies are mainly located in the regions of South-Central (193) South West (156) and North Central (71). In the clothing industry most companies for women's clothing are situated in the city of Ruse, for men's clothing in Pleven and for women's and men clothing in Plovdiv. Sale strong Bulgarian companies in the clothing sector in 2012 were Balkantex (Sofia), Brilliant Invest (Plovdiv), BTB Bulgaria (Ruse) AD, Delta Textile Bulgaria (Ruse), Dzalli (Gabrovo), Duwetika Bulgaria (Dimitrovgrad), Pririn Tex Production (Gotse Delchev) and Pirin Tex Processing (Gotse Delchev). In the textile industry there were Belotex 95 (Zlatograd) Bulsafil (Plovdiv), Bulgaria-K (Kazanlak), E. Miroglio (Sliven), Embul Investment (Stara Zagora), Ka-linel (Troyan), Kolhida (Sliven), Miroglio Bulgaria (Sliven), Roger Vanden Berghe BG (Sliven), Sinterama Bulgaria (Nova Zagora). Liza Litsch / pixelio.de Textination GmbH 2
3 Bulgarian companies in the textile and clothing sector (sales in Lev millions) Companies (Internet addresse) Sector E. Miroglio, Textil Bulsafil, Textil Kalinel Ltd, Textil Balconf, Bekleidung Embul Investment, Textil Feldhüs BG, Bekleidung Creation, Bekleidung Coats Bulgaria, Textil Aglika Trade, Textil Moda Sport, Bekleidung Source: Capital Top 100 of July 2014 Export of Bulgarian textile products by country (in Lev million), shares and % change) Country Share of Italy United Kingdom Germany Turkey Greece France Rumania Poland Belgium Spain Russia Austria Sweden Total Source: National Statistical Institute (NSI) Export of Bulgarian clothing products by country (in Lev million), (shares and change in %) Country Share of Germany Italy Greece Textination GmbH 3
4 Country Share of France United Kingsom Spain Austria Belgium Turkey Netherlands Rumania Total Source: NSI The monthly payment is at least EUR 300 for seamstresses. In practice EUR 500 are being paid, which comes close to the payment level of Greece and Portugal. The tendency is towards keeping the workers. In addition to money good working conditions and career opportunities are coming increasingly to the fore. About a third of companies are operating in the shadow economy. Beckmann Agency According to expert assessments Bulgaria s sewing industry is likely to have a look to a good future decade. A weak Turkish lira has a positive effect for the location of Turkey. Serbia and Macedonia are the more closer competitive surrounding. As long-term regional competitors Ukraine, Belarus and Moldova apply. The fixed binding to the Euro creates competition problems for Bulgaria. Demography and migration are among other challenges. Maschinery imports rise A modernization of the industry took place in recent years through various EU programs. In cooperation with EU partners know-how has been built. Also in the new EU funding period the sector is likely to take advantage of the available opportunities. Facing the machinery imports the year 2013 was a good year. Of this primarily German and Japanese vendors have benefited. Dieter Schütz / pixelio.de Textination GmbH 4
5 Import of textile and garment machinery in Bulgaria (Lev) HS-Position From Germany German share in % 8444 Jet-spinning machines 1,652,230 1,896, , Spinning machines 3,004,959 9,224,603 1,858, Weaving looms 3,777,225 7,401, , Knitting machines 11,696,670 14,757,945 1,965, Auxiliary machines 8,866,240 12,707,891 1,911, Felting and fleece machines 161,948 1,289,719 12, Cleaning, Dying and Pressing machines 19,470,216 20,419,761 3,968, Sewing machines 15,640,076 17,908,049 6,859, Leather processing machines 6,145,118 6,507, , Source: NSI Internet addresses: AHK Bulgaria info@ahk.bg ; Internet-Addresse: BAPIOT (Bulgarian Association of producers and exporters of clothing and textile) association@bgtextiles.org; Internet-Addresse: Specialized Cluster Institute for Apparel and Textile milusheva@online.bg; Internet-Addresse: Source: Michael Marks, Germany Trade & Invest Translation: Textination-Team Textination GmbH 5
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