EU Production Of Denim Fabrics 2005-2011

EU27 countries have been experiencing a continuous fall in their production capacities. This trend has been exarcabated since 2006 when the productions suddenly started closing .  The premium denim wave of 2005 had just peaked and the mills started to find it difficult to maintain their productions at the costs which could be only justified by the usage in premium denim jeans.
While there were a large number of mills in Italy , Spain and some other countries in EU, now only a handful remains. And the production has sunk – giving way to Asian mills.

In this report we will see :

a)Table showing actual productions of denim fabrics in EU 27 countries in the period 2005-2011.
b) Chart showing the trendline of this productions  and how productions reduced to 1/3rd levels in 2011 as compared to 2005.
c) Chart showing the average  value of these productions declared by the mills. These are given on an annual basis. This also gives an idea of EU declared production costs per sq mtr.
d) Analysis.

Also check out our latest report – a compendium- on world denim industry – click on image.

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EU Production of Denim Fabrics 2005-2011

From the above table , we can see that the production of denim fabrics in EU is about 1/3rd of the production in 2005. With less than 100 million sq mtr of production done in 2011, the linear meterage would be about 60-65 million linear meters only . In the following graph, we see the trendline of this falling production.

It may also be noted that the maximum reductions in production capacities occured in the year 2008 when the production actually nearly halved from that of 2007.  This was also the period when many Spanish and Italian mills closed down and or changed business orientation. This included mills like Legler, Montebello from Italy and Santanderina from Spain closed productions during this period. Another mill, Jitka from Czech also closed closer to this period . Now with only mill left in Spain – Tejidos Royo – ,five mills in Italy and only mill – Hellenic – in Greece, the future of denim fabric production is not very bright in Europe. The period from 2009 to 2011 has been relatively stable with minor variations , indicating that the remaining mills are surviving and not giving up much . Mills like TRC are well reputed and even with their Italian costs , its fabric is much in demand. Similarly , same thing can be said about the Kaihara mill of Japan. Japan , being more expensive that Europe, it is not easy for mills to survive there. It is , thus, only the most innnovative and development oriented companies which can survive in the current market scenario – when they are located in high cost production areas .

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