Written Answers. - Industrial Development.
Bernard J. Durkan
Question:
127
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the initiatives she will take or directions she will issue with the object of enhancing the textile and leather industries having particular regard to the utilisation of available resources; and if she will make a statement on the matter.
[3748/00]
The principal raw material for the foreign-owned textile companies based in Ireland is a chemical polymer which is 100% imported for the production of polyester and nylon fibres.
The indigenous textile industry is an industry that is based on traditional strengths. The changes within the industry have been market driven. In recent years the market has been a niche one supplying top end manufacturers and designers with wool and linen products. This market still remains but customers within it have become more demanding in terms of design and finishes.
In response to these market demands, Enterprise Ireland in conjunction with the industry identified a number of areas that could be improved in design and finishing. A number of initiatives to improve these areas have been undertaken recently and they include: trend forecasting twice yearly; market study visits abroad; new product development support and design improvement incentives.
Most recently, a joint North-South initiative has been undertaken involving Enterprise Ireland, Industrial Development Board, Northern Ireland, Irish Linen Guild, the International Fund for Ireland and nine participating companies, four from Northern Ireland, five from Republic of Ireland. This initiative, Fabric Ireland, is being launched at Premiere Vision – leading world textile show – in Paris on 2 March. The objective of this promotional initiative is to increase sales among the participating companies by 30% over two years.
The Irish leather industry is focused on the manufacture of wet blue hides which is an intermediate raw material sold to leather finishers outside the country. There is little if any production of finished leather in Ireland suitable for conversion into clothing, footwear, upholstery, etc.
Leather conversion and finishing operations have in general moved to low cost countries in the far east due to lower labour costs. Primary processing of hides is tending to follow the conversion and finishing sectors to developing countries where, in addition to lower wage rates, environmental regulations tend to be less demanding.
One exception to this is the production of finished automotive and furniture upholstery. This is a very difficult market to break into because of the tendency of the automotive industry to work with a limited number of proven suppliers of finished leather. A few Irish companies here have developed outlets to these markets for wet blue raw material. Competition, however, is intense with major integrated US beef processors with large-scale operations dictating the economics of the business.
