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Reorientation of the Traditional Textile Induitry

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Reorientation of the Traditional Textile Induitry OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] MICROCOPY RESOLUTION TEST CHART NATIONAL BUREAU OF STANDARDS STANDARD REFERENCE MATERIAL 1010a (ANSI and ISO TEST CHART No ?i • WwnHnoimaaMMH«».. .sé^ís»** • " m 05161 (lof¿) UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANISATION REORIENTATION OF THE TRADITIONAL TEXTILE INDUITRY IN IRAZIL !!••#•?•* iM D#v*U»fn*M «p ^ iit8B8§n&im * •fitwlw- * * MKN : \UiA Ea Kill: *. l/(¡44(»/04/fi REORIENTATION (» THE flADITIONAL TfcXTIIE INDUSTRY IN BRAZIL UNIDO PROJECT N°SIS70/W CONTRACT N° 7 1 / H liSEAiCH êc DEVELOPMENT IN COLLAIOIATION WITH ENGINEERING VESDRE Ow ember 1171 »T ll.^fc falla. m 1 ABSTRACT This report concerning tht reorientation of tht traditionnal textile industry in Bruii it both analytic and normativa. The analysis has three conponente, informa- tion gathering, description of problems and diagnostic including a prospective view. The normative part is a set of recommanda- tion« contributing to highlight a reorienta- tion policy. Ì 'V*dïf9'*'<ii!!|§f3ï^^ •• .W^ríí 8UNU1T r •^w VOLUME I - TERMS OF REFEREKCE IKTRODUCTION AND SYNTHESIS 1. Aim of the project. P. 2 2. Acknowledgements. P< 3 3. Methodological Approach. P< It 1*. Abstract of Recommendations. P< 7 5. Fields of study and the ordtr of thair discus- sion in this report. 11 CHAPTER I - MARKET STUDIES FOR TEXTILES 1.1. PRODUCTION AND CONSUMPTION. 13 1.1.1. Production and consumption of textiles in 1970 broken down by raw materials. 13 1.1.1.1. Production of raw materials. p. 13 1.1.1.2. Cotton and blends. p> J»5 1.1.1.3. Wool and blends. p. k6 1.1.1.1*. Man-made fibers. p. k6 1.1.1.5. Rami, Jute, Flax, Sisal. p. kl 1.1.2. Production and consumption of textilts in 1970 broken down by type of products p. kB 1.1.2.1. Yarns. p. kB 1.1.2.2. Input-output tables of raw materials broken down by end- uses . p. 58 1.1.3. Production and consumption of textiles in 1970 broken down by end-uses. 63 1.1.3.1 End-uses. p. 63 1.1.3.2. Apparel. p. 65 1.1.3.3 Home furnishings. p. 67 1.1.3.U, Industrial uses. p. 68 1.1.3.5 Various p. 69 1.1.3.6. Yard goods. ?• 69 ) wm "^" ^ 2.- 70 1.2. MARKETING PROCEDURES 1.2.1. Distribution methods. P- 70 1.2.2. Market locations and consumer grouping. P- Sk 1.2.3. Suitability of products for existing markets and quality standards. P 95 I.2.U. Composition of consumer prices. P 97 1.3. RQLË OF GARMENT INDUSTRY AS CONSUMER OF TEXTILE 10»t MATERIALS. 112 l.U. PROJECTION OF DEMAND. U. Introduction. P. 112 U, The basic tables. P- 112 U, The forecasting operation for 1975« P. 118 U, Forecasts per type of fiber. P< 132 ,U The I960 forecasts. p, 137 l.U.6. Concluding remark. P' lUl 1.5. GENERAL APPRAISAL OF THE POTENTIAL FOR THE EXPORT OF TEXTILES. IU5 CHAPTER II - STRUCTURE OF THE TEXTILE INDUSTRY AND ITS PRODUCTION FACILITIES 2.1. GENERAL AND REGIONAL STRUCTURE. p. 150 2.1.1. Cotton industry. p. 152 2.1.2. Woollen and worsted system. p. 158 2.1.3. Knitting system. p. 158 2.l.U. Dyeing, printing and finishing p. I62 2.2. INTEGRATION OF PRODUCTION FACILITIES AND ITS DESIRABILITY. 3 72 ?.?.l. Depree of concentration of production and i ntegrati on . p. 17:' 2. V.',:. Feasibility of merpers. p. 175 ?.? . 3 . Feasibility of common services. p. 177 2.2.Ù. Balance of production. p. 178 : «ft •^*" 1 3.- 2.3. MACHINERY IN PLACE. DEGREE OF UTILISATION AMD MACHINE HOURS WORKED IN 1-970 p, 182 2. J*. EVALUATION OF EXISTING EQUIPMENT 187 2.1*.1. Degree of obsolescence of equipment p. 187 2.1*. 2. Overall productivity of the textile industry p. 192 2.1*.3. Feasibility and advisability of increa- sing production with equipment in place p« 22i* 2.5. QUIDE-LINES FOR PROGRAMMING THE MODERNIZATION AND REPLACEMENT OF INSTALLED PRODUCTION FACILITIES p. 227 2.5.1. Modernization program p. 227 2.5.1.1. Type of equipment p. 229 2.5-1.2. Problems pertaining to the automation of spinning mills p. 232 2.5.1.3. Anticipated developments in cotton spinning p. 251 2.5.1.1*. Impact of plant size p. 254 2.5.1.5. Selective aid by sector p. 262 2.5.1.6. Regional structures and disparities p. 28U 2.5.2. Role of domestic machinery manufacturers p. 298 2.5.3. Suitability of domestically available raw materials p. 302 2.5.!+. Suitability of present factory buildings p. 308 2.5.5. Investment orientation p. 312 2.5.5.I. Effects of investments P 312 2. 5 • 5 • 2 . Investment requirements P 323 2.5-5.3. Guide-lines of a policy for sustained growth 33»» *^1 • * IITRODUCTIOI AID 8YITII8ZI ^ M4 2. 1. AIN OF THE PBOJICf The aim of the project is to sake a general study of the Brazilian textile industry, its current and prospective structure and its potential for improvement and development, and to define a set of recommendations and reorientation guide-lines suitable to both the private and the public sectors. The methodological approach to achieve these ends consisted, for each field of study, in the following three- step program : (i) information gathering and description of the system (11) analysis and evaluation (iii) types of interventions required to improve the system. The global view of the sequence of problems and fields of application has permitted to extend the scope of our study to include the basic guide-lines for a governmental action- program. This action-program or development strategy provides the setting for our framework of recommendations while also defining a unified intersectoral policy designed for the textile system as a whole. 3. ! 2. ACKÄOWLEDOEMEHTS '1 The conditions of realization of the present study required numerous permanent contacts with miscellaneous organisations, and the ready availability of various records and specific data; the former were often very difficult to reach and the latter were largely still to be compiled. We take advantage of the opportunity to thank all the agencies and organizations which have contributed not only to the impro- vement of our working conditions but also to establish the factual foundations of the analyses and recommendations which are set forth herein. We wish to acknowledge,in particular, the support of UHIDO Representatives in Rio - MIC - BUDE - IPEA -IBOE - Fundaoao O.Vargas - Banco do Nordeste - SÚDEME - IMDI - CACEX - COMCEX • GDI - Several industrial federations and textile Syndicates - Industrialists, distributors and export agents. I». 3. METHODOLOGICAL APPROACH 3.1. Th« first Btep in our met hodological approach was the elaboration of an analysi s on the economic evolution since I960, concerning pr imarily the following topics : productivity, psychology (attitude towards modernization), organization, management, structures (equipment, machine- ry, installed capacity, o bsolescence), distribution and its channels, export poli cies, industrial views of the governmental policy, inve stments and autonomous trends. The data concerning the 1 960 situation, mainly in the field of equipment, was a fforded by CEPAL. 3.2. The second component is th e diagnosis of the 1970 situa- tion. This was the result of extensive and intensive inquiries and surveys and was based on the documents pertaining to input/output analyses. The sample of industrial units surveyed for the study accounts for approximately 650,000 spin dies in the cotton sector and 11+0,000 spindles in the wo ol and blends sector. These premises were conduc i ve to the global examination of intersectoral and inter regional interactions and of the part played by the spo ntaneous sectors (crafts and unorganized activities). 3.3. The third step consists in defining a long-run perspec- tive plan for the next ten years. 3.U. On the basis of these three steps and in the context of an intersectoral strategy which makes provision for the uncertainty factor, general developmental guide-lines are finally set forth. The general guide-lines are designed to help define a general action program with specific interventions for each field of study. 3.5. Some of the outstanding results of the analysis concern ¡ - the overriding role of man-made fibers and the impact of synthetic fiber substitution! - the wide range of performances and degrees of moderni- zation of the production units; 1 the significant lag between the tempo of equipment modernization and the operational infrastructure (i.e.
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