VZCZCXYZ0009
RR RUEHWEB

DE RUEHSL #0804 2770617
ZNR UUUUU ZZH
R 040617Z OCT 06
FM AMEMBASSY BRATISLAVA
TO RUEHC/SECSTATE WASHDC 0340
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS BRATISLAVA 000804 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/TPP/ABT THOMAS LERSTEN 
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA 
USTR ABIOLA HEILINGER 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KTEX LO
SUBJECT: TEXTILES AND APPAREL SECTOR: SLOVAKIA 
 
REFTEL: STATE 138090 
 
¶1.  Based on data released by the Slovak Statistical Office, 
Slovakia's total industrial production reached Slovak Koruna (SKK) 
1,345 billion (USD 45.6 billion) in 2005 (this applies to 
enterprises with more than 19 employees).  Total textile production 
accounted for SKK 11,101 million (USD 376 million) in 2005.  Apparel 
production totaled SKK 9,807 million (USD 332 million). 
 
¶2.  Textile and apparel imports made up 4.02 percent of Slovakia's 
aggregate imports in 2005, and 3.65 percent in the first half of 
¶2006.  Textile and apparel exports constituted 4.23 percent and 3.72 
percent  of Slovakia's total sales abroad in 2005 and in the first 
half 2006, respectively. 
 
¶3.  Exports of textiles and apparel to the United States reached SKK 
122,917,600 (USD 4.166 million) in 2005 and SKK 70,771,611 (USD 
2.399 million) during the first six months of 2006. 
 
¶4.  Average employment in the Slovak industry was 416,789 in 2005, 
up 0.37 percent from to 2004. Average number of employees in textile 
and apparel sector stood at 38,317, down 5.3 percent on the year. 
 
¶5.  According to the Slovak Association of Textile and Apparel 
industries (ATOP), total sales of their member companies dropped by 
1.9 percent in 2005 from the previous year, to SKK 19,007 million 
(USD 645 million).  The association also said that the number of 
textile and apparel enterprises increased to 252 in 2005, from 226 
in 2004 (NOTE: enterprises with above 19 employees). The sector 
produced an aggregate loss of SKK 223 million (USD 7.6 million) last 
year. 
 
¶6.  Slovak textile producers consider strengthened competition from 
cheap imports from China as a serious problem.  A few examples: 
Levitex, country's traditional cotton yarn producer, claimed imports 
from China to have caused a 20 percent decrease in its sales during 
the first half of 2005.  Merina, woolen fabric producer founded in 
1907, has been losing money since 2001 and cited imports from Asia 
as the main reason.  On the contrary, Tatrasvit Svit-Socks, a 
producer of socks and pantyhose, restructured its operations, has 
returned to profitability, and is now able to export about 80 
percent of its production. 
 
¶7.  The average nominal monthly wage in textile and apparel sector 
accounted only for 58 percent of the average wage in manufacturing 
industries in 2005.  Total investments in the sector declined by 
12.5 percent during the last year compared to 2004. 
 
¶8.  Slovakia was among 13 EU members requesting the European 
Commission to impose protective measures for textile/apparel 
industry. 
 
¶9.  Comment: In some regions of Slovakia, especially central 
Slovakia, the textiles/apparel industry has traditionally been a 
major employer, but the numbers continue to decline each year. 
According to local experts, it is "just question of time when Far 
East knocks out most of the Slovak enterprises".  Only the most 
flexible companies with innovative production techniques, high 
quality products and new technologies have been able to remain 
competitive.  Technical textile producers and exclusive high quality 
and luxury apparel producers have so far fared best under the 
pressure of low-cost competition from China. End Comment. 
 
VALLEE