Latvian Textile and Clothing Industry January 2006 Jadviga Neimane, Project Manager
Output Value and Employment Output Value of textiles and clothing ( 000 LVL)* Number of employees in the textiles and clothing sector 2004 148934 2004 18875 2003 141479 2003 18939 2002* 142049 2002* 23581 2001 158342 2001 25410 2000 145239 2000 24993 1999 129603 1998 121658 1997 113112 1996 104985 50000 100000 150000 1999 23817 1998 20841 1997 20909 1996 20044 10000 15000 20000 25000
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
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
Development of Foreign Trade with Textiles in 2000-2004 (in 000 LVL) 250 000 200 000 150 000 100 000 Export Import 50 000 0 2000 2001 2002 2003 2004
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%
Development of the Export by Area (in 000 LVL) 450 000 400 000 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 1997 1998 1999 2000 2001 2002 2003 2004 CIS EU TOTAL
Development of Export of Textiles and Textile Articles of Latvia to Particular Countries of the European Union (in 000 LVL) 180000 160000 140000 Sweden Portugal The Netherlands Luxembourg Italy 120000 100000 Ireland Greece Great Britain 80000 60000 40000 France Finland Spain Denmark Germany 20000 0 1996 1997 1998 1999 2000 2001 2002 2003 Belgium Austria
Exports of Textiles and Textile Articles ( 000 LVL) 2004 2003 2002 2001 2000 0 20 000 40 000 60 000 80 000 100 000 52. 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
Imports of Textiles and Textile Articles ( 000 LVL) 40000 35000 30000 25000 20000 15000 10000 5000 62. 54. 61. 52. 55. 60. 0 1999 2000 2001 2002 2003 2004
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
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 10 12 weeks 4 6 weeks 8 weeks 4 6 weeks
Location of Textile and Cloth Producing Factories
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: 2004 2005-2006 6,7 million LVL 25 million LVL 2003 2004 Net sales in LVL Export % Profit in LVL Number of employees 19 900 000 97,5% 862 000 993 27 200 000 98% 1 955 000 937
Made investment New factories New equipment
Education Level of education Field of studies Enrolment in 2005 Graduates in 2004 Vocational schools Textile processing and manufacturing 1221 520 Riga Light industry Technical Secondary School Textile processing and manufacturing 517 86 Riga Technical University Production technology of textiles and manufacture of textiles articles 189 45
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
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
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: 371 7039745 E-mail: stragu@latnet.lv Ms. Jadviga Neimane, Project Manager Latvian Investment and Development Agency Pērses iela 2, Riga, LV-1442 Phone: 371 7039414; fax: 371 7039401 E-mail: jadviga.neimane@liaa.gov.lv www.liaa.gov.lv
Welcome to Latvia! Perses iela 2, Riga, LV 1442, Latvia Phone: +371 7039400 Fax: +371 7039401 E-mail: invest@liaa.gov.lv http://www.liaa.gov.lv http://www.exim.lv