Russia's worsted fabric sector on the verge of collapse

The Russian worsted fabric sector is on the verge of collapse amid the ever growing volumes of imports from abroad and the lack of state support, according to the Russian Union of Entrepreneurs of Textile and Light Industry

The concerns of producers are shared by analysts from the Ministry of Industry and Trade, who point out that the domestic production of worsted fabrics has significantly declined in recent years. Over the past 20 years since the collapse of the USSR, the production has fallen 20-fold.

Of the 20 worsted mills that produced worsted fabric during the Soviet period, only two or three have continued operating. Owing to financial problems, several worsted mills recently closed, including Ivanovsky Krasnokholmsky and Krasnodarsky. Currently, the industry employs 2,000-3,000 workers compared with 50,000 during Soviet times.

For the full story, see the October 2012 edition of Textiles Eastern Europe. Not a subscriber? Subscribe HERE