TEXTILES AND APPAREL SECTOR - POLAND

UNCLAS WARSAW 001796 SIPDIS SENSITIVE DEPT FOR EUR/NCE AND EB/TPP/ABT EUR/NCE FOR DKOSTELANCIK AND BPUTNEY EB/TPP/ABT FOR THOMAS LERSTEN COMMERCE FOR ITA/OTEXA MARIA DANDREA STATE PASS USTR FOR ABIOLA HEYLIGER E.O. 12958: N/A TAGS: ECON ETRD KTEX PL SUBJECT: TEXTILES AND APPAREL SECTOR - POLAND REF: A) STATE 138090 ¶1. (U) In response to reftel, post provides the following information regarding the Polish textile and apparel sector, all data from end-year 2005: Total production: in textiles 8.96 billion PLN (2.89 billion USD); in apparel 4.47 billion PLN (1.44 billion USD)(Note: revenues from activities which employ more than 49 workers) Total textile and apparel production by kind of product: -- manufacture of textiles 9.88 billion PLN (3.18 billion USD) -- manufacture of wearing apparel and furriery 8.70 billion PLN (2.80 billion USD) -- processing of leather and manufacture of leather products 3.19 billion PLN (1.03 billion USD) Textile/apparel share of Poland's imports and exports: -- Textiles: exports 1.2 billion EUR (1.54 billion USD); imports 1.46 billion EUR (1.87 billion USD) -- Apparel: exports 1.317 billion EUR (1.69 billion USD); imports 999 million EUR (1.28 billion USD) -- Textiles and apparel together account for 3.61% of Polish exports and 3.12% of Polish imports Destination of exports of textiles and apparel: approximately 80% to the EU, exports to the U.S. are marginal Total textile and total apparel employment: -- textiles 56,000 employees; apparel 73,000 employees ¶2. (SBU) According to Krzysztof Zareba, expert on textile industry at the Department of Industry, Ministry of Economy, Polish producers are feeling great pressure due to increased competition from China. Poland is a member of the "southern countries" of the EU (including France, Greece, Spain, Portugal, and Italy) who support restrictions against China's exports of textiles and apparel, but is unlikely to implement any of its own restrictions. Poland has not noted any closures of factories due to a company's desire to move production to Asia. There have been some reductions in employment in the textile and apparel industry, but this is due to increased efficiency and automatization, thereby requiring less people to produce the same amount of goods. ASHE