The textile industry, which has a strong presence in the regions of l’Alcoià, El Comtat and Vall d’Albaida, expressed its anger after learning: It has been excluded from the aid made by the central government to the sectors where gas is used intensively. Employers describe the decision as incomprehensible, as a decree dated June 22, 2022, the textile finishing industry is considered gas-intensive and opens the door to receiving financial support.
It is explained from the Intertextile Council (CIE) of Spain that the finishing industry is necessary and necessary as a link in the production of the entire textile value chain, so the pretense of the current situation will have repercussions in the whole industry. The continuity and future of the textile industry is in dangerhe is.
The production chain and added value in the textile industry consists of different sub-sectors that follow and complement each other, such as yarn, weaving, finishing, clothing, logistics and distribution. The textile industry consists of: 3,591 companies occupying 46,642 jobs, generating 6,046 million turnovers.
Regarding gas intensive use, the finishing industry is the main consumer of gas and is therefore affected by price increases. This sub-sector brings together about 200 companies operating at full capacity in Spain. These companies specialize in different finishing processes (dyeing, printing and other finishing processes) for transforming textiles before they are produced or placed on the market. The finishing sub-sector affects around 4,500 jobs with a turnover of over 600 million euros. It represents 5.6% of industrial textile sector companies and 15% of its turnover.
In general, they are medium-sized companies that use chemical products as raw materials and invest heavily in machinery and facilities that use water, electricity, and above all, industrial gas. emerging The most important energy component of gas in costs. In fact, industrial gas accounts for 30-40% of the final weighted cost of the finishing service in the product price.
Wake-up of the textile finishing sub-sector, warning from CIE, can have devastating effects on the value chain of the entire Spanish textile industry.Since all textile products go through different finishing processes, it also affects fashion and clothing products. They add that the consequences will be serious for Spanish textiles if the high energy costs, especially the more intensively used gas in industrial finishing, are not compensated.
As explained by CIE president Pepe Serna, Article 59 of Decree R 20/2022 specifies the appendix detailing the activities included in the proposed help line. can be changed by the decision of the council of ministers.. We will therefore demand that the textile finishing sub-sector be included as a gas-intensive sector and benefit from the proposed assistance.”
“Companies have had an impact on costs that are currently unaffordable because the market cannot afford such a direct and immediate impact in such a short period of time. not being able to pass on these price increases to their customers because they are not competitive., under these conditions the products are in the international market. This has resulted in production shutdown, which was reflected in the 37% annual decline in gas consumption last year.”
The textile finishing industry consumed 2.3 TWh of gas in 2021. In October 2022, the annual gas consumption for the industry was 1.7 TWh. More than 800% cumulative increase in MWh price depending on the periods (from 20 €/MWh to 200 €/MWh).
Source: Informacion
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