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Technical textiles to Germany

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(Last updated: 16 Sep 2011)

Trends and opportunities

The market

In 2010, the technical textiles market accounted for about 52 per cent of the total German textiles production. Ten years ago, according to the industry association for finishing, yarns, fabric and technical textiles (IVGT) it was only a third. The German technical textiles market is very international with high levels of imports and exports, registering an export quota of 43 per cent in 2010. At the same time, the country is also the second largest textile importer after the US and has become an attractive market for many textile exporting countries since the 1980s.

Technical textiles are a classic cross-application technology. The products are used in many – partly fast growing – industrial sectors where they optimise the specific product qualities. (Source: Deutsche Bank Research, July 13, 2011 ‘Textile and clothing industry Germany’).

The German technical textiles market consists of the following sub-segments 

Technical textiles – sub-segments  General consumption in %  World market consumption in % 

Mobiltech (mobility applications)

 22

 16

Indutech (industrial applications)

 18

 16

Medtech (medical applications)

 13

 10

Sporttech (sports applications)

 12

  8

Protech (protective applications)

 10

  7

Buildtech (building applications)

 10

 15

Agrotech (agricultural applications)

  7

 12

Packtech (packaging applications)

  5

  6

Geotech (geotech applications)

  3

  9

 TOTAL

100

100

(Source: Industry Association Technical Textiles e.V.)

Opportunities

In the past, demand for technical textiles had already been stimulated by a series of long-term and global trends. They will continue to be crucial drivers in coming years. Increasing population and higher disposable incomes, particularly in the emerging global economies are important factors. This will enable people to buy higher-value products that also contain fibre-based materials.

Those profiting from this include, for example, the manufacturers of sport and outdoor clothing and also brand name manufacturers outside the technical textiles field. Amongst others, the following new trends will be decisive for the industry in the coming years:

  • Increasing global mobility requirements are leading to increased demand for technical textiles. The product attributes of many vehicles, as regards efficiency, weight, safety and comfort can be improved by technical textiles.
  • In the automotive industry technical textiles could also make a contribution to compliance with EU directives for the reduction of specific CO2 emissions.
  • As technical textiles are also used in the construction industry, the sector could also benefit from the globally-increasing demand for infrastructure.
  • In many countries where industry as an important consumer of technical textiles (eg. conveyor belts, filters etc.) is still in its infancy, increasing industrialisation will boost the demand for technical textiles.
  • The global trend towards greater environmental protection and energy efficiency also has a positive effect on the demand for technical textiles which have many applications in those areas.
  • By 2020, the EU aims to increase the energy efficiency of the economy by 20 per cent. Textile-based materials could contribute to this.
  • Technical textiles are a research-intensive sector and hence it is important that sufficient numbers of young personnel can be attracted to it. Germany is currently suffering from a need of highly qualified staff in this area. Demographic trends will lead to a fall in the number of graduates in science and other subjects. Competition for such qualified staff and for technicians and skilled labour will become stiffer.
  • The fact that average salaries in the German technical textiles sector are lower than in other economic sectors also plays a part. Without adequate qualified personnel it would be difficult to develop the indispensable innovative textile products.
  • One way of combating the threatened shortage of qualified staff would be greater internationalisation of the sector’s research and development activities. This could prove to be of interest to many international investors.
  • Global expenditure by the health sector is increasing by around three to four per cent per annum as a result of technical advances, higher incomes and the increasing proportion of older people.
  • Raw material prices for technical textiles are increasing. In 2010, cotton prices rose by almost 70 per cent on an annual average, in the first few months of 2011 they were up by around 130 per cent year on year. As an inventor of new materials for technical textiles Australia has a major advantage in this area.
  • Energy prices are also on the rise. Compared with the industrial average, the textile industry ranks as one of the most energy-intensive sectors. In the technical textiles industry, energy consumption is more than 75 per cent higher than the manufacturing industry average.

(Source: Deutsche Bank Research, July 13, 2011 ‘Textile and clothing industry Germany’)

Competitive environment

At present, the competitive environment in Europe is not yet a threat to Australia’s technical textiles industry. Southern Europe has only a small technical textiles industry and upcoming nations such as India and China are not yet exporting a lot. The competition will stiffen once these countries have reached enough capacity to export on a worldwide level. 

Australian manufacturers should, however, be aware of the costs associated with exporting such as customs duties, value-added tax and distributor margins which have a direct effect on prices of their goods and consequently their competitiveness.

Australian exporters should quote CIF (cost, insurance, freight) prices for a German port of entry when making offers to German companies.

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Tariffs, regulations and customs

The EU has a harmonised trade system. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia. Most duties are ad valorem (%), based on the GATT Valuation Code (approximate CIF value).

Before shipping any goods to Europe, you should obtain a written customs duty ruling from the local customs service. These rulings are called Binding Tariff Information (BTI). Getting a BTI is free and will prevent any conflict over customs or excise duty.

Consignments of textiles and apparel imported into Germany require a certificate of origin because certain quotas apply to low labour-cost countries.

Import duty ranges from 6.9 per cent to 13.8 per cent depending on the type of product. An import turnover tax, similar to the Value Added Tax levied on domestically produced goods, of 19 per cent applies.

For further information on import duties please visit http://ec.europa.eu/taxation_customs/dds/tarhome_en.htm

Standardisation

The Textiles and Textile Machinery Standards Committee (Textilnorm) is in charge of establishing DIN standards for textiles, clothing as well as textile machinery. The different DIN standards define the requirements, dimensions, technical terminology as well as testing standards for special areas in the textile industry. Foreign companies must ensure that their textile products conform to all relevant standards in Germany. The latest standards can be found on the EU website. (Source: German Business Portal: Textile industry – a large market for fashionable goods)

Labelling
The German Textile Labelling Law lays the foundation for the labelling of textiles on the market. All textiles manufactured, imported and sold in Germany must bear a label indicating their raw materials composition. According to the law which applies to all textile products on the supply chain, textiles may only be sold if they possess the appropriate specification of the fibre contents, care and washing instructions as well as size in metric measurements. The Textile Labelling Law harmonises with the EU Directive 96/74/EC in order to make sure that the labelling for textile fibres and other terms used on labels and relevant documents are uniform throughout the EU.

Even though care labelling symbols are not mandatory in Germany, the National Association for Textile Care Labelling, GINETEX, has defined an internationally recognised care labelling system for textiles based on trademark symbols. These care symbols provide traders, consumers and companies with the correct information about taking care of textile products.

(Source: German Business Portal: Textile industry – a large market for fashionable goods)

Import regulations

In order to import textile products into Germany, companies must make sure that they present a certificate of origin (Ursprungszeugnis). Textiles coming from countries that have no bilateral agreements with the EU require an import license (Einfuhrgenehmigung) in order to enter Germany. Import licenses can be obtained from the Federal Office for Economics and Export Control.

Furthermore, according to the Registration, Evaluation, Authorization and Restriction of chemical products (REACH) Regulation of the European Union (1907/2006/EC), manufacturers and importers of textiles containing potentially dangerous chemicals must register these substances to the European Chemicals Agency and ensure the appropriate communication along the supply chain. The main goal of REACH is to control the safety of chemicals in consumer products, including textiles.

(Source: German Business Portal: Textile industry – a large market for fashionable goods)

Certification

The most widely used and recognised certificate of quality for textiles in Germany and the EU is the Oeko-Tex Standard 100. This voluntary certificate provides the textile and clothing industry a uniform standard for consumers who specifically aim to buy textiles that are free of harmful substances. All raw materials, intermediate and end products at all stages of production are tested and certified for compliance with the standard.

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Marketing your products and services

Market entry

Appointment of sales agents is usually the first step for a successful market entry. However, technical textiles are often sold B2B and hence it is important to identify potential clients well in advance.

To maximise your chances of success in Germany you should:

  • Participate in a German trade fair (eg. Techtextil)
  • Establish a sales office with warehousing facilities, either in Germany or another European country in order to meet short-term delivery requirements
  • Maintain your relationships in market with continuous communication
  • Appoint a sales agent if your company does not have a sales presence in Germany
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Links and industry contacts

Textiles–related resources

European Chemicals Agency – http://echa.europa.eu
Federal Office for Economics and Export Control – www.bafa.de/bafa/en/index.html
Industrieverband Veredlung - Garne - Gewebe - Technische Textilien e.V.
Industry association for finishing, yarns, fabric and technical textiles – www.ivgt.de
The International Association for Textile Care Labelling – www.ginetex.net
Textiles and Textile Machinery Standards Committee – www.textilnorm.din.de/en

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Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia's education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.

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