Romania: 1,000 outward processing trade companies could close down

The production of textiles, clothing and footwear has dropped in 2008, for the third consecutive year, by 6.2 per cent to RON 13.5 bln, with over 60,000 employees losing their jobs, and things will not stop here. The outward processing trade employers estimate that another 1,000 OPT producers could disappear from the market, Mediafax informs. ‘Starting in 2005 when world trade was liberalized and the national currency started to depreciate, the textile production has registered annual drops of 6-7 per cent. At the same time, the sector’s net contribution to the trade balance fell by 50 per cent.

This year we hope to be able to maintain the production slowdown rhythm at the same level, namely 10 per cent at most’ Aurelientu Popescu, the executive president of the Textiles, Clothing and Leather Goods Employers Federation (FEPAIUS), stated yesterday during a press conference. The exports have registered a drop of 6.2 per cent from EUR 5.4 bln in 2007 to EUR 5.1 bln in 2008, while the imports dropped by 4.5 per cent to EUR 4.49 bln, according to the data offered by FEPAIUS. In 2007 the imports of textiles and clothing totaled EUR 4.71 bln.