Transcript Title of Power Point Presentation

Opportunities for Textile, Apparel,
Footwear and Leather Industry
Textile, Apparel, Footwear & Leather Industry
Goods that can be produced
competitively in Moldova
Textile
Leather
Footwear
Apparel
Accessories
Carpets
Moldovan manufacturers have been working for
many years with renowned foreign brands –
both fashionable and mass market brands.
Companies from Italy, Germany, Netherlands,
France, Austria, Belgium, and Great Britain
source and produce here.
And with a good reason: Moldova delivers fast,
flexible and with highest quality levels !
• Relocation of production capacity to Moldova
• Sourcing and placement of orders
• Forming Joint Ventures
Textile, Apparel, Footwear and Leather
Industry – SWOT Analysis
Strengths
Opportunities:
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a diversified segments that provide a wide variety of
products.
production capacities in all geographic zones of the country
that attract local work force
availability of Stable, Low Cost and Skilled Labor force
provides competitive advantage to the industry.
well-organized and equipped education system that assures
skilled labor force for the industry.
quick deliveries of the products for EU states
favorable investment/tax law
high potential of growing for work productivity, workloads
based on using modern technologies;
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unlimited and duty free access to the EU market for all
products
geographical advantages (proximity to the EU)
unexploited potential to regain the former position of the
industry in the Russian and other ex-USSR countries’
markets
investment projects in infrastructure, environmental
protection and rural & regional development are underway
growing awareness in the industry about the need to
improve competencies in fields like quality management,
research, design, export marketing, and branding
increased use of CAD/CAM systems to develop designing
capabilities and workflow.
Weaknesses:
Threats:
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most of the Moldovan companies work under the CM or
CMT systems, which limit the access to finance, technology
and value retention.
lack of own products, product sales networks on foreign
markets
limited access to investment funds and working capital
small financial resources on local markets
growing requests for eco-labels and other conformity
certifications or customer demands, will imply de facto
export barriers unless Moldovan companies can rapidly
comply to these demands.
TAFL competences in Moldova
TAFL industry work force/ Education
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Moldova has a long tradition in apparel and textile industry since the ex USSR and continued
development in the early 90’s.
The apparel companies do not need to start from Greenfield, but rather Brownfield using existing
skills and tradition.
Many local companied started to invest in modern equipment e.g. sewing machines, automats,
cutters, spreading machines, plotters, CAD/CAM, etc.
Apparel companies are mainly located in Chisinau, Balti, Soroca, and Cahul.
Some companies are located in Ungheni (carpet manufacturing, car seat covers, uniforms, footwear,
etc), Comrat, Orhei, Basarabeasca, Causeni and other cities.
The Education system continues the specialization in apparel and textile industry i.e. :
• Technical University, faculty of light industry,
• Pedagogical State University in apparel design,
• Academy of Arts in apparel design,
• Light Industry College from Chisinau
• Light industry College from Balti,
• Vocational schools from Chisinau, Balti, Soroca, Orhei, Cahul, Ungheni, etc.
Light industry education/ Universities
Technical University from Chisinau (UTM) www.utm.md ;
• Faculty of Light Industry; focused on training in Engineering and Garments construction profile.
- Department of “Technology and engineering of garments”;
- Department of “Technology of leather and leather articles processing”;
- “Construction of garments”
- “Garments design”, etc.
State University “Alecu Russo” from Balti
• Specialization of “Engineering and management in automobile construction”, since 01 September
2012 in Cooperation with Draexlmaier Automotive and University of Applied Sciences Landshut,
Germany;
• The students are trained in both theory and practice for the demands of the automotive and supply
industry;
• Many courses are held in German and English.
Pedagogical State University of Moldova from Chisinau
• Faculty of Garments design;
Academy of Arts of Moldova
• Faculty of Garments design
Overview of Cahul light industry
Main manufacturers in Cahul are companies with foreign capital in apparel industry.
The majority of companies are specialized in knitwear and textile garments.
• Austrian Joint Venture Tricon SA, cca 680 employees;
• Italian capital company ICS “Laboratorio Tessile Mol” SRL, cca 400 employees in 2 shifts;
• ICS “Tricou Fantasy” SRL, cca 80 employees.
• ICS „Franco Sossi” SRL, located in suburb of Cahul, village Colibaş – 25 km
The average gross salary of sewers in Cahul as of March 2014, cca 3000 MDL (cca EUR 170).
TRICON SA production:
Overview of Soroca light industry
Main manufacturers in Soroca garments industry are companies with foreign capital.
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ICS Sotex Grup SRL (US capital, garments, winter mantel), cca 265 employees;
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ICS Maritansor SRL (Italian capital, footwear), cca 200 employees;
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ICS Ermogrup SRL (Italian capital, garments), cca 400 employees;
a. There are few shoes producers between 5 to 100 employees;
b. Soroca has good tradition in production of leather shoes and textile garments;
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The main employer in Soroca was the knitted factory, with over 2000 employees;
d. Average gross salary for sewers in Soroca as of March 2014, are cca 2800 MDL (cca EUR 160).
Potential business in apparel sector
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Long tradition of Moldova in apparel sector;
Complex education system, i.e. Technical University, State University, Light industry colleges,
Vocational Schools, etc.
Dynamic developing of automotive components sector;
Rossovivo – car protection covers (transportation). Announced the extension to Moldova with a
brownfield plant.
• Grow in 2-3 years to 1,000+ employees;
Car Seats trim covers. Example: Lear Corporation- successful plant in FEZ Ungheni Business.
• Few Global companies are analyzing Moldova as potential location for relocation in
different regions of Moldova;
Traditional TAFL industry:
• Local companies successfully growing with own brands. Some of them are promoting own brand
goods for export;
• Foreign companies especially Italian, Romanian companies developing in Moldova;
• Exploring the tradition in footwear manufacturing;
• Targeting CIS market (especially Russia, through Moldova Free trade agreement) and EU market
(through the existing Autonomous preferences and upcoming DCFTA agreement), and local
market;