Identifier
Created
Classification
Origin
06KINSHASA1308
2006-08-18 12:31:00
UNCLASSIFIED
Embassy Kinshasa
Cable title:
AGOA: DRC'S TEXTILE AND APPAREL PRODUCTION CAPABILITIES
how-toVZCZCXYZ0014 RR RUEHWEB DE RUEHKI #1308/01 2301231 ZNR UUUUU ZZH R 181231Z AUG 06 FM AMEMBASSY KINSHASA TO RUEHC/SECSTATE WASHDC 4625 INFO RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS KINSHASA 001308
SIPDIS
SIPDIS
DEPT FOR AF/EPS: THASTINGS
E.O. 12958: N/A
TAGS: EINV ETRD KTEX AGOA CG
SUBJECT: AGOA: DRC'S TEXTILE AND APPAREL PRODUCTION CAPABILITIES
REF: SECSTATE 131825
UNCLAS KINSHASA 001308
SIPDIS
SIPDIS
DEPT FOR AF/EPS: THASTINGS
E.O. 12958: N/A
TAGS: EINV ETRD KTEX AGOA CG
SUBJECT: AGOA: DRC'S TEXTILE AND APPAREL PRODUCTION CAPABILITIES
REF: SECSTATE 131825
1. (U) Post submits the following in response to reftel request for
information on textile and apparel production capabilities in the
DRC.
2. (U) The DRC's three primary textile facilities are Congo-Tex in
Kinshasa, Sotexki in Kisangani, and Sintexkin in Lubumbashi. In
total, the DRC produces less than ten percent of the estimated 100
million square meters of the cloth purchased in the DRC. The DRC no
longer produces adequate cotton to supply its factories' needs.
Although the DRC is AGOA-eligible, it cannot export textiles and
apparel into the U.S. under AGOA's duty-free and quota-free
provisions.
Congo-Tex
--------------
3. (U) Congo-Tex, previously known as UtexAfrica, now 55 percent
Chinese-owned, is located in Kinshasa on a 45-hectare complex. Its
annual gross sales are approximately USD 18 million. It still has a
fully integrated mill with its own farms, spinning-weaving-dying,
printing and garment divisions. It employs 1,154 direct-hires and
contractors, 50 percent of whom work in apparel production, ten
percent in textile production, and the rest in administrative and
other support functions. The company produces 7 million meters of
fabric per year.
4. (U) Equipment includes: 20,160 wire stitching machines, of which
only 30 are operational; two sizing machines and three weaver's
machines for weaving-preparation; 35 Picanol President CM 188s, 12
Picanol President MDCs and 253 Sulzers in the weaving section; and
326 sewing machines in apparel production. Congo-Tex uses 23
different machines in its dyeing and printing departments.
5. (U) Congo-Tex imports cotton from West Africa, including Nigeria.
The main products are still African prints for women, medical
textiles, garments (protective wear, and military, police and school
uniforms),and blankets. The target market for African prints is
the DRC, the Republic of Congo, Zimbabwe and Angola. Low-end
textiles are sold at between USD 7 and 10 per bolt while high-end
products sell between USD 13 or 17.
Sotexki
--------------
6. (U) Sotexki is Congolese-owned and managed, with a large,
well-maintained compound. In the late 1980s, Sotexki had 2,550
employees and produced 1.5 million linear meters of cloth. Today,
the factory continues to operate 24 hours a day, but only has a
staff of 270 and produces 80,000 to 100,000 linear meters of cotton
cloth. The factory combs, spins, weaves, and dyes the cotton, and
all designs are original. It does not produce apparel. Inadequate
roads and power supply, heavy taxes and Chinese competition are the
primary factors that limit production.
7. (U) The factory recently acquired new machinery and keeps
existing machinery well maintained. In its spinning department,
Sotexki has three nine-ton working loom machines, one carding
machine, a stitching bench, and 52 continuous spinners. In its
pre-weaving department are four electronic auto-corners, eight
winding machines, six spooler-wrapping frames, and two sizing
machines. There are 456 Picanol machines and 36 Sulzer Ruti
machines in the weaving section. In the printing department,
Sotexki has one 30 meters per-minute shearer machine, a
six-compartment bleaching machine, a Mercerizer, and other machines.
Electricity shortages, however, force the factory to operate at
approximately 10 percent capacity.
8. (U) Although some of the cotton is produced in the DRC, most is
imported from other African countries, including Uganda. Sotexki
uses gum Arabic, manioc starch paste, palm oil, and urea to produce
the cloth, plus caustic soda in the printing process. Sotexki
purchases these inputs from European and Asian countries, including
India. Because the DRC lacks adequate roads, the raw materials have
to be flown in, significantly raising production costs.
9. (U) Sotexki targets producers of women's clothing, sheets,
curtains, medical masks and uniforms, and diapers. Retailers,
political parties, and religious groups also order bolts of dyed
cotton fabric in bulk. Almost none of the cloth is exported.
Sotexki's charges an average price of USD 8 for a six-yard bolt,
retailed at about USD 9. However, Chinese textile producers, who are
able to produce and sell textiles at lower prices, have copied many
Sotexki designs.
Syntexkin
--------------
10. (U) Post was unable to obtain updated information from
Sintexkin, whose textile factory is still operational.
Third-Country Fabric Provisions
--------------
11. (U) Post did not receive a timely response from GDRC officials
regarding third-country fabric provisions. Given the DRC's
inability to produce the cotton necessary to supply its own domestic
textile industry, it will be essential for third-country provisions
to be in place if and when the DRC obtains a textile visa.
SIPDIS
SIPDIS
DEPT FOR AF/EPS: THASTINGS
E.O. 12958: N/A
TAGS: EINV ETRD KTEX AGOA CG
SUBJECT: AGOA: DRC'S TEXTILE AND APPAREL PRODUCTION CAPABILITIES
REF: SECSTATE 131825
1. (U) Post submits the following in response to reftel request for
information on textile and apparel production capabilities in the
DRC.
2. (U) The DRC's three primary textile facilities are Congo-Tex in
Kinshasa, Sotexki in Kisangani, and Sintexkin in Lubumbashi. In
total, the DRC produces less than ten percent of the estimated 100
million square meters of the cloth purchased in the DRC. The DRC no
longer produces adequate cotton to supply its factories' needs.
Although the DRC is AGOA-eligible, it cannot export textiles and
apparel into the U.S. under AGOA's duty-free and quota-free
provisions.
Congo-Tex
--------------
3. (U) Congo-Tex, previously known as UtexAfrica, now 55 percent
Chinese-owned, is located in Kinshasa on a 45-hectare complex. Its
annual gross sales are approximately USD 18 million. It still has a
fully integrated mill with its own farms, spinning-weaving-dying,
printing and garment divisions. It employs 1,154 direct-hires and
contractors, 50 percent of whom work in apparel production, ten
percent in textile production, and the rest in administrative and
other support functions. The company produces 7 million meters of
fabric per year.
4. (U) Equipment includes: 20,160 wire stitching machines, of which
only 30 are operational; two sizing machines and three weaver's
machines for weaving-preparation; 35 Picanol President CM 188s, 12
Picanol President MDCs and 253 Sulzers in the weaving section; and
326 sewing machines in apparel production. Congo-Tex uses 23
different machines in its dyeing and printing departments.
5. (U) Congo-Tex imports cotton from West Africa, including Nigeria.
The main products are still African prints for women, medical
textiles, garments (protective wear, and military, police and school
uniforms),and blankets. The target market for African prints is
the DRC, the Republic of Congo, Zimbabwe and Angola. Low-end
textiles are sold at between USD 7 and 10 per bolt while high-end
products sell between USD 13 or 17.
Sotexki
--------------
6. (U) Sotexki is Congolese-owned and managed, with a large,
well-maintained compound. In the late 1980s, Sotexki had 2,550
employees and produced 1.5 million linear meters of cloth. Today,
the factory continues to operate 24 hours a day, but only has a
staff of 270 and produces 80,000 to 100,000 linear meters of cotton
cloth. The factory combs, spins, weaves, and dyes the cotton, and
all designs are original. It does not produce apparel. Inadequate
roads and power supply, heavy taxes and Chinese competition are the
primary factors that limit production.
7. (U) The factory recently acquired new machinery and keeps
existing machinery well maintained. In its spinning department,
Sotexki has three nine-ton working loom machines, one carding
machine, a stitching bench, and 52 continuous spinners. In its
pre-weaving department are four electronic auto-corners, eight
winding machines, six spooler-wrapping frames, and two sizing
machines. There are 456 Picanol machines and 36 Sulzer Ruti
machines in the weaving section. In the printing department,
Sotexki has one 30 meters per-minute shearer machine, a
six-compartment bleaching machine, a Mercerizer, and other machines.
Electricity shortages, however, force the factory to operate at
approximately 10 percent capacity.
8. (U) Although some of the cotton is produced in the DRC, most is
imported from other African countries, including Uganda. Sotexki
uses gum Arabic, manioc starch paste, palm oil, and urea to produce
the cloth, plus caustic soda in the printing process. Sotexki
purchases these inputs from European and Asian countries, including
India. Because the DRC lacks adequate roads, the raw materials have
to be flown in, significantly raising production costs.
9. (U) Sotexki targets producers of women's clothing, sheets,
curtains, medical masks and uniforms, and diapers. Retailers,
political parties, and religious groups also order bolts of dyed
cotton fabric in bulk. Almost none of the cloth is exported.
Sotexki's charges an average price of USD 8 for a six-yard bolt,
retailed at about USD 9. However, Chinese textile producers, who are
able to produce and sell textiles at lower prices, have copied many
Sotexki designs.
Syntexkin
--------------
10. (U) Post was unable to obtain updated information from
Sintexkin, whose textile factory is still operational.
Third-Country Fabric Provisions
--------------
11. (U) Post did not receive a timely response from GDRC officials
regarding third-country fabric provisions. Given the DRC's
inability to produce the cotton necessary to supply its own domestic
textile industry, it will be essential for third-country provisions
to be in place if and when the DRC obtains a textile visa.