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Textile industry in Romania

 

The textile industry in Romania is a core economic sector, nationwide, with elements concentrating in the four regions: NW, NE, Centre and Bucharest. The garment sector hires the largest number of employees in manufacturing sectors, especially women. Moreover, Romania owns the necessary resources to support the production of yarn, silk and wool as well as the production of Liberian fibres made of flax and hemp, but the necessary investments are costly. As a consequence, the industry is highly dependent on imports of raw materials. However, in recent years, there has been a revival of Romanian locally produced and sold products, at the expense of the lohn system.

In 2013, textile production registered a modest increase, by 7% compared to 10.5% recorded in 2011. However, the industry is on a positive track after its slow but abrupt decline in 2012.

Nevertheless, Romania remained one of the top clothing and footwear producers in 2011, in Europe. The top 20 players in this field registered total revenues of EUR 900m in 2011. Although these companies managed to adjust to the deteriorating market conditions, only a few are present on the domestic market, while the majority of them operate under the lohn conditions.

The contribution of light industries (textiles, clothing and leather) to the Romanian economy is substantial. Despite that, though, the added value in the sector is generally low. It utilizes a great deal of imported raw material and low-work force. Most companies are working under the "lohn" or CMT system (cut, make, trim), by which the Romanian companies supply labour and machinery and the customer raw material, designs and marketing.

 

Strengths

  • Large global market for Textile and Leather industries, based on a long tradition
  • The favourable geographic position related to the main supply and sale markets
  • Stable workforce, well-trained professional workers on the specificities of the industries
  • SMEs start-ups require relatively low investments compared to other industrial branches
  • The sector generates a substantial trade surplus, having a strategic contribution in production and employment segment
  • Low labour force
  • Increasing interest in the niche markets
  • The sector contributes to social stability, being represented in all counties.

 

For further information, please contact the British-Romanian Chamber of Commerce (BRCC):
Mrs Cristina Ungureanu

Account Manager
Email: cristina.ungureanu@brcconline.eu

 

Romanian Fairs 2014


MODEXPO - International exhibition of textiles, clothing, leather, furs, footwear and leatherwear – 25th -28th September, Bucharest