POLISH COTTON MARKET AND TEXTILE INDUSTRY

Cotton Textile Industry

Polish cotton textile industry is still the large one among industries of the EU countries. In 2004, in this industry employment amounted to over 11 thousand jobs in units employing over 49 workers, only. In particular branches the employment structure was as follows: spinning mills – 4.0 thous. people; weaving mills – 7.1 thous. people; Since 2000, the employment has been reduced by 7.0 thousand workplaces this is by 28%. Nowadays, the number of medium and large units amounting to 35 companies has dropped by 24 % as compared to 2000. In 2004, the sold output of the cotton textile sector amounted to PLN 1457 million indicated a growth rate in fixed prices – approx. 106,2% as compared to 2003. Sales return rate despite an increase by 1.0 % was still very low and accounted for 1.5%. In 2003, the Polish cotton entrepreneurs produced over 46 thousand tonnes of cotton yarn and ca. 228 million sq. meters of cotton fabrics. The share of private enterprises in cotton sector constituted approx. 90%. However, despite the inflow of capital, this industry still requires investment outlays, especially related to the modernization of technological production lines. The analysis of the textile industry shows some difference in labour productivity between Polish and other EU producers resulting from the lack of investment. The Cotton Market The year 2004, was better for the Polish market than several previous years, as far as the volume of imports and processing are concerned. It was reflected in the increase of imports by ca. 5,8% and of consumption by ca. 3%, when compared to 2003. After four years of constant drop, it was the first year of imports and consumption increase. The phenomena adversely influencing our market did not disappear; they are debts and lack of financial means in the cotton industry and the insolvency of companies resulting from these, and mainly still growing flow of foreign, very cheap textile products and garments being a dishonest market competition. A strong position of the Polish zloty in relation to US dollar favoured the cotton importers, whereas strengthening zloty in relation to Euro limited cotton products exports to the EU markets. Central Asian cottons still dominate over the Polish market. Cotton from other regions constitutes only 13,3% of the fibre processed in Poland. Last year, Uzbek cotton retained its first position on the Polish market with its 47,7% share, and since several years the constant drop of this share has been observed. It was 52,7% in 2003 and as much as 76,6% in 1998. In 2004, Tajik and Kazakh cottons were being bought more and more frequently. They reached respectively: 20 and 15% share in the Polish market. Popular varieties from Africa and Greece were imported in smaller volumes than in past years.

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MINISTRY MINISTRY OF ECONOMIC AFFAIRS AND LABOUR OF ECONOMIC AFFAIRS AND LABOUR

REPUBLIC OF POLANDREPUBLIC OF POLAND

SCREENING OF THE POLISH COTTON TEXTILE INDUSTRY

WASHINGTON 2005

EMPLOYMENTEMPLOYMENTUNITS EMPLOYING OVER 49 WORKERSUNITS EMPLOYING OVER 49 WORKERS

18103

7075

11028

13546

58437703

11071

4005

7066

0

5000

10000

15000

20000

2000 2002 2004

Cotton Textile Sector Spinning Mills Weaving Mills

NUMBER OF THE COMPANIESNUMBER OF THE COMPANIESUNITS EMPLOYING OVER 49 WORKERSUNITS EMPLOYING OVER 49 WORKERS

36

1620

38

1721

35

13

22

0

10

20

30

40

50

2000 2002 2004

Cotton Textile Sector Spinning Mills Weaving Mills

SOLD OUTPUT SOLD OUTPUT UNITS EMPLOYING OVER 49 WORKERSUNITS EMPLOYING OVER 49 WORKERS

(IN PLN MILLIONS)(IN PLN MILLIONS)

1376

523

853

1372

552

820

1457

428

1029

0

500

1000

1500

2002 2003 2004

Cotton Textile Sector Spinning Mills Weaving Mills

RATE OF RETURNRATE OF RETURNUNITS EMPLOYING OVER 49 WORKERSUNITS EMPLOYING OVER 49 WORKERS

(IN %)(IN %)

-2,0

-0,6

-3,0

0,51,4

0,0

1,5

3,1

0,9

-4,0

-2,0

0,0

2,0

4,0

2002 2003 2004

Cotton Textile Sector Spinning Mills Weaving Mills

STATISTICS OF THE STATISTICS OF THE POLISH COTTON MARKETPOLISH COTTON MARKET

in tonnes2950

COTTON - medium IMPORTS including Uzbekistan 25355Tajikistan 10622Kazakhstan 8047African Franc Zone 3524Greece 1665Brazil 1311Turkmenistan 1197Azerbaijan 880Others (India, Kyrgyzstan, Turkey) 535

- long 177- wastes 3521

IMPORTS totally 56834CONSUMPTION 56052RE-EXPORTS 790

Ending stocks 31.12.2004. 2942

53136Beginning stocks 01.01.2004

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COTTON CONSUPTION IN POLANDCOTTON CONSUPTION IN POLAND( IN THOUSANDS TONNES)( IN THOUSANDS TONNES)

62,3 60,7 55,4 54,4 56,1

0

20

40

60

80

2000 2001 2002 2003 2004

IMPORTS STRUCTURE IMPORTS STRUCTURE OF THE POLISH MARKET IN 2004OF THE POLISH MARKET IN 2004

MEDIUM STAPLE COTTONMEDIUM STAPLE COTTON

Azerbaijan2%

Uzbekistan47%

Turkmenistan2%

Brazil3%

Greece3%

Others 1%

Afr.F.Z.7%

Tajikistan20%

Kazakhstan15%