Big firms tap into spe­cialty tex­tile mar­ket

The Myanmar Times - - International Business -

SEV­ERAL big firms have started push­ing up pro­duc­tion in spe­cialty tex­tiles or fab­rics for spe­cial pur­poses, such as sofa and shoes amid the coun­try’s de­pen­dence on the im­port of these ma­te­ri­als.

“Gen­er­ally, some big firms have be­gun in­vest­ing in the seg­ment [spe­cialty tex­tiles],” Prama Yudha Am­dan, the ex­ec­u­tive mem­ber of In­done­sian As­so­ci­a­tion of Syn­thetic Fiber Pro­duc­ers (APSyFI), said on Monday.

Pub­licly listed PT Asia Pa­cific Fibers is one com­pany that has en­tered this mar­ket.

To keep the in­vest­ment go­ing and be able to ful­fill na­tional de­mand, Yudha added, the gov­ern­ment must lower gas prices, elec­tric­ity tar­iffs and la­bor costs in In­done­sia that re­main higher than ri­vals China and In­dia.

“Spe­cialty tex­tiles need big­ger in­vest­ment [than com­mon tex­tiles] so it’s im­por­tant that the gov­ern­ment lower gas prices and other costs,” Yudha added.

In­done­sia’s gas price, at US$9 per mil­lion Bri­tish ther­mal units (mmbtu), for ex­am­ple, is among the high­est in the world. APSyFI urged the gov­ern­ment to lower it to $6 per mmbtu as en­ergy con­trib­uted to 25 to 30 per­cent of pro­duc­tion cost struc­ture in up­stream tex­tile in­dus­tries.

Pre­vi­ously, shoes and sofa mak­ers com­plained that vol­ume and va­ri­ety of lo­cal spe­cialty tex­tiles to make fur­ni­ture, ac­ces­sories and shoes are still lim­ited. About 60 per­cent of fur­ni­ture ma­te­ri­als in­clud­ing tex­tiles are still im­ported, ac­cord­ing to In­done­sian So­ci­ety of In­te­rior De­sign­ers.

– Jakarta Post

Photo: Jakarta Post

Work­ers tie shoes in a plant run by PT Dwi Prima Sen­tosa in Mo­jok­erto, East Java.

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