According to its industry association, the East German textile industry achieved an increase in sales in the first few months of this year despite persistent price pressure. From January to March, revenues increased by 7.1 percent compared to the same period last year, said the general manager of the association of the north-east German textile and clothing industry, Jenz Otto, on Tuesday before the start of a general meeting in Greiz. Nevertheless, the immensely increased production costs put pressure on the industry’s earnings.
Above all, more expensive raw materials such as yarns or chemicals as well as high energy prices caused problems for the companies. Not everything can be completely transferred to the sales prices, said Otto. He pointed out that the industry’s sales in the new federal states increased by 6.2 percent in 2022. In contrast, however, the production costs would have increased by eleven percent.
The result is that product developments are postponed and investments are postponed. The clothing manufacturers would also have major problems due to the insolvency of retail chains and consumers’ reluctance to buy, since their sales structures would collapse.
The focus of the East German textile industry is in Saxony and Thuringia, especially in Vogtland and Upper Lusatia. According to the association, around 350 companies with around 16,000 employees belong to the industry. (dpa)