Ukrainian Textile & Leather industry
Textile industry
• 475 • 16,9
thsd..
Apparel
Leather&Footwear
• 1547 • 47,1 thsd.
• 319 • 21,0 thsd.
Textile & Leather Industry 2017 +13,8% +13,3% Export
+7,3% Production
+4,2% Staff workforce
Capital Investments
Partners of Ukrainian Textile&Leather industry 146 countries Europe 35 America 28
CIS 10
Asia 35
Africa 30 Australia 8
Continental structure of Ukrainian export 2013 – 1159 mln.$
2016 – 963,1 mln.$ Europe 84,4%
Europe 71%
813,3 mln.$
819,6 mln.$
CIS 24%
Asia 2%
Others 3%
CIS 12,8%
Asia 1,8% Others 1,0%
ТОP-10 countries of Ukrainian export Germany 21,7%
Others 18,1%
Poland 14,4% Romania 10,7%
Slovakia 1,9% Belarus 3,0%
Italy 9,0% France 3,0%
Hungary 4,8%
Denmark 5,8%
Russia 7,6%
ТОP-10 import countries to Ukraine Others 25,9%
China 27,4%
Poland 10,2%
Turkey 9,2%
India 2,1% Russia 2,4% Belarus 2,5%
USA 2,5%
Bangladesh 2,5%
Italy 7,1%
Germany 8,2%
Commodity structure export
Ń–mport clothes
1,6%
2,3%
footwear
16,6%
18,0% 48,0%
5,9% 10,4% 16,0%
other finished textile products leather and fur products raw materials (fibers,yarn, fabrics,leather)
12,5% 54,7%
10,0%
3,9%
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%
Capital investments in Ukraine, % Іndustry
Textile&Leather industry 185,1
168,4
164,1
113,5
111,5
107,0
85,8
2011
2012
137,1
107,3 81,2
2013
2014
129,1
101,7
2015
2016
Ukraine interest of equipment’s import Directions of modernization 2016 wet-heat treatment &decoration
sewing
31%
22%
leather& footwear
8% equipment for processing of textile materials
others
1% auxiliary
3%
knitting
weaving
20%
3%
spinning
8%
4%
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
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
Potential of Textile & Leather industry
Ukrainian genetic center for sheep breeding Transcarpathian State Agricultural Experimental Station
Institute of Animal Husbandry "Askania-Nova�
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
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
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
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
Import 45,2%
Secondhand 17,3%
Low productivity Imperfect management system Lack of available loans and state support
Ukrainian production
12,1%
• for modernization and expansion of production • for the introduction of new technologies
Lack of state support for participation in international exhibitions
Smuggling, shadow production 25,4%
Europe is the main importer of second hand to Ukraine 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
The largestCzechvolumes, tons Netherlands 3,6%
Republic Norway Others 3,3% 1,0% 0,5%
Finland 3,6% Belgium 4,8%
Poland 31,5%
Latvia 7,3% United Kingdom 10,6%
Switzerland 10,8%
Germany 23,1%
Ukrainian import of second hand thsd. tons
2006-2016
98,6 102,4 93,1 91,1 93,2 90,9
120 100
77 78,8
91
73,3
80 60 40
20 0
1 million tons 1 billion $
111,8
2016:
2.6 kg was imported for each inhabitant of Ukraine
(in 2006 – 1,7 kg, in 2010 – 2,0 kg)
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
Association «Ukrlegprom»
The main activities of Ukrlegprom Industry Legislation
Fashion & Exhibition
Technical regulation
Foreign Trade
Taxes & Customs
Staff & Training
Military Uniform
Environmental
Market monitoring
protection
Strategy of industry development ❶ STAFF and TECHNOLOGY MODERNIZATION ❷ LEGALIZATION ❸ COMPETITION ❹ INVESTMENT ❺ INNOVATION ❻ POPULARIZATION
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.
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
Executive Directorate of Ukrlegprom Tetyana Izovit President – Head of the Board izovit@ukrlegprom.org.ua
Iryna Naumenko Senior Executive Officer naumenko@ukrlegprom.org.ua
Anna Nesterenko Senior Legislation Officer nesterenko@ukrlegprom.org.ua
ukrlegprom@ukrlegprom.org.ua tel.+380445281424, +380445283494 03150, Ukraine, Kyiv, Zahorodnya str.,15
Thank you! www. ukrlegprom.org.ua