“The value of imports grew for all groups - textiles, ready-made clothes, and footware, but the highest level was ready-made clothing - 128.8 percent compared to H1 2006,” FEPAIUS President Maria Grapini told Business Standard.
In the first six months of 2007, the value of the textile market dropped 93 percent (year-on-year), and the negative trend for the rest of the year is expected to continue, explained Grapini.
“Forecasts for the entire year are negative. It is known that H1 is lower due to holidays and a powerful work force crisis,” added Maria Grapini. According to the FEPAIUS representative, the devaluation of the euro to the Romanian leu leads to a drop in influx. In this context, other players on the market could go bankrupt, especially small and medium-sized enterprises.
Maria Grapini announced at the beginning of the year that some 40 percent of small textile companies in Romania might close because they have not enforced EU regulations. The first major bankruptcy case was that of Akrom Akal, one of the top ten textile producers in Romania. According to Grapini, lohn production could save the Romanian textile industry, but high production costs make honoring orders impossible.
