The textiles sector in Brazil is getting prepared to invest R$ 12, 3 billion up to year 2008, to modernize and expand its production capacity. These investments also represent an expansion of cotton plantation areas, in order to increase 34% its physical capacity, within the production chain, until the year 2005.

The target is to grow external sales and reach 1% of world’s textile exportation in five years and then go up to 1. 4% in eight years, generating commercial surplus of US$ 3 billion and US$ 3, 7 billion, respectively.

This sector comprises 30 thousand companies in the country and it has invested, in the last decade, US$ 7 billion with plant modernization, development, technology acquisitions and with personnel training. The objective is to be prepared for exporting value added products and to respond promptly and adequately to the demands of the globalized world.

The Brazilian textile sector employs, at present, 1, 4 million people, including the jobs that are generated with the expansion of the cultivated areas. The objectives, of textile industrialists, are to increase the number of working positions to 470 thousand, in the productive chain, until the end of year 2005, increase exportation to US$ 4, 3 billion in 2005 and to US$ 5, 6 billion in 2008, generating commercial surplus of US$ 3 billion and US$3, 7 billion in the years of 2005 and 2008 respectively.

For this year’s first semester an accumulated surplus of US$ 213, 2 million was registered in our balance of trade,an increase of almost 30% when compared to the first semester of 2004.

Textiles and clothing exportation show a decrease, in June this year, in relation to the same month in 2004. According to data from ABIT – Associação Brasileira da Indústria Têxtil e de Confecção (Brazilian Association of Textiles and Clothing Industries), the sector exported this month of June, US$ 144 million, a 6% loss when compared to the US$ 153, 1 million exported in June last year. Commercial balance results also presented significant losses: dropping to 31. 3%, and a value of US$ 22, 6 million, for the same period.

The reason for this fall in exportation in the month of June already is a reflex of the increase of Real’s monetary value in relation to the Dollar, having gone up 28% in the last 12 months and 10% in the first six months of this year.

COMMERCIAL BALANCE FOR TEXTILE AN CLOTHING - JUNE -  US$ FOB
 
  Exportation June
2004
Exportation June
2004
VARIATION %
Exportation 153,1 144,0 -5.94
Importation 120,2 121,4 1
Balance 32,9 22,6 -31.3
 
Source: MDIC/SECEX

 

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