Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million...

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Transcript of Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million...

Page 1: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile
Page 2: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Ukrainian Textile & Leather industry

Textile industry

• 475

• 16,9 thsd..

Apparel

• 1547

• 47,1 thsd.

Leather&Footwear

• 319

• 21,0 thsd.

Page 3: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Textile & Leather Industry 2017

Staff workforce

Production

Export

+4,2%

+7,3%

+13,3%

+13,8%

Capital Investments

Page 4: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Partners of Ukrainian Textile&Leather industry

America 28 Africa

30 Australia

8

Europe35 Asia

35

CIS 10

146 countries

Page 5: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Continental structure of Ukrainian export

2016 – 963,1 mln.$ 2013 – 1159 mln.$

CIS 24%

Europe 71%

Asia 2%

Others 3%

CIS 12,8%

Europe 84,4%

Asia 1,8%

Others 1,0%

813,3 mln.$ 819,6 mln.$

Page 6: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

ТОP-10 countries of Ukrainian export

Germany 21,7%

Poland 14,4%

Romania 10,7%

Italy 9,0%

Russia 7,6%

Denmark 5,8%

Hungary 4,8%

France 3,0%

Belarus 3,0%

Slovakia 1,9%

Others 18,1%

Page 7: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

ТОP-10 import countries to Ukraine

China 27,4% Poland

10,2%

Turkey 9,2%

Germany 8,2%

Italy 7,1%

Bangladesh 2,5%

USA 2,5%

Belarus 2,5%

Russia 2,4%

India 2,1%

Others 25,9%

Page 8: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Commodity structure

16,6%

12,5%

10,0%

3,9%

54,7%

2,3%

іmport

48,0%

16,0%

10,4%

5,9%

18,0%

1,6%

export clothes

footwear

other finished textile products

leather and fur products

raw materials (fibers,yarn, fabrics,leather)

Page 9: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Ukrainian export of apparel

Outerwear 64,2%

Underwear 17,4%

Other clothing and accessories

10,7%

Clothes made of leather

3,1% Hosiery

3,1%

Others 1,5%

Page 10: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Capital investments in Ukraine, %

2011 2012 2013 2014 2015 2016

164,1

111,5 107,0

81,2 101,7

129,1 113,5

85,8

107,3 137,1

168,4 185,1

Іndustry Textile&Leather industry

Page 11: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Ukraine interest of equipment’s import

equipment for processing of textile

materials 4%

spinning 8% weaving

3% knitting 20%

auxiliary 3%

others 1%

wet-heat treatment

&decoration 22%

sewing 31%

leather& footwear 8%

Directions of modernization 2016

Page 12: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Ukraine is attractive to Europe

Labor resources

Advantageous geographic location and logistics

EU FTA

Canada FTA

Developed border and customs services

Textile, apparel and footwear production

Page 13: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Potential of Textile&Leather industry

EU-Ukraine DCFTA Canada-Ukraine FTA

Active companies – 2340

Staff workforce by 2 times

Ukrainian export up to 2.5 times

Page 14: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Potential of Textile & Leather industry

Page 15: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Ukrainian genetic center for sheep breeding

Institute of Animal Husbandry "Askania-Nova”

Transcarpathian State Agricultural Experimental Station

Page 16: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

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

Page 17: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

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

Flax and industrial hemp for textiles

Page 18: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Ukrainian consumer market 42,7 million people

Adult 34,6 mln.

81%

Child 0-5

years 2,8 mln.

Child 6-18 years

5,1 mln. 12%

Textile and leather goods market - second after food consumption more than 5 billion.$ per year

7%

Page 19: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

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

Lack of state support for participation in international exhibitions

Ukrainian

production 12,1%

Import 45,2%

Second-hand 17,3%

Smuggling, shadow

production 25,4%

Page 20: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Europe is the main importer of second hand to Ukraine

The largest volumes, tons

Poland 31,5%

Germany 23,1% Switzerland

10,8%

United Kingdom

10,6%

Latvia 7,3%

Belgium 4,8%

Finland 3,6%

Netherlands 3,6%

Czech Republic

1,0% Norway

0,5%

Others 3,3%

9 months 2017 Import - 93,7 thsd.tons

(+29,6% to 2016)

The range of imports price

0$- 1.3$ per 1kg

Max price - 2.6 $ / 1kg

from Finland

Page 21: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Ukrainian import of second hand

2016: 2.6 kg was imported for each inhabitant of

Ukraine

(in 2006 – 1,7 kg, in 2010 – 2,0 kg) 0

20

40

60

80

100

120

77 78,8 91

73,3

90,9 93,1 98,6 102,4 91,1 93,2

111,8

1 million tons 1 billion $

thsd. tons 2006-2016

Page 22: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

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

Page 23: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Association «Ukrlegprom»

Page 24: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

The main activities of Ukrlegprom

Industry Legislation

Foreign Trade

Military Uniform

Environmental protection

Taxes & Customs

Fashion & Exhibition

Technical regulation

Staff & Training

Market monitoring

Page 25: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Strategy of industry development

❶ STAFF and TECHNOLOGY MODERNIZATION

❷ LEGALIZATION

❸ COMPETITION

❹ INVESTMENT

❺ INNOVATION

❻ POPULARIZATION

Page 26: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

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 2017.10.30 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.

Page 27: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

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

Page 28: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Executive Directorate of Ukrlegprom

Tetyana Izovit President – Head of the Board [email protected]

Iryna Naumenko Senior Executive Officer

[email protected]

Anna Nesterenko Senior Legislation Officer [email protected]

Page 29: Ukrainian Textile & Leather industry · 2018. 5. 9. · Ukrainian consumer market 42,7 million people Adult 34,6 mln. 81% Child 0-5 years 2,8 mln. Child 6-18 years 5,1 mln. 12% Textile

Thank you!

[email protected]

tel.+380445281424, +380445283494 03150, Ukraine, Kyiv, Zahorodnya str.,15

www. ukrlegprom.org.ua