Textile Sector Faces Gas Cost Pressure and Government Aid Gaps

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The textile sector, with a strong footprint in l’Alcoià, El Comtat and Vall d’Albaida, raised its anger after learning it had been left out of central government aid aimed at sectors with intense gas use. Employers describe the decision as hard to grasp, noting that a decree dated June 22, 2022, already classed the textile finishing industry as gas‑intensive and thus eligible for financial support.

From the Intertextile Council (CIE) of Spain, it is explained that the finishing stage is a crucial link in the entire textile value chain, meaning that the current exclusion could reverberate across the whole industry. The long‑term viability of the textile sector is at stake, and the continuity of its production chain hangs in the balance.

The production network and added value inside the textile field span multiple sub‑sectors that rely on each other, including yarn, weaving, finishing, apparel, logistics and distribution. The sector comprises 3,591 companies, employs 46,642 workers and generates 6,046 million euros in turnover.

When it comes to gas intensity, the finishing segment stands out as the main consumer, making it particularly vulnerable to price surges. This sub‑sector brings together around 200 firms operating at full capacity across Spain, specializing in various finishing processes such as dyeing, printing and other final touches that transform textiles before they reach the market. The finishing sub‑sector sustains roughly 4,500 jobs and records a turnover exceeding 600 million euros. It represents about 5.6% of industrial textile companies and around 15% of the total sector turnover.

In broad terms, these are mid‑size enterprises that rely on chemical inputs and invest heavily in machinery and facilities that consume water, electricity and, above all, industrial gas. Gas emerges as the dominant energy cost component for finishing services, influencing the overall price of the end product. In fact, industrial gas can account for 30–40% of the final weighted cost in the finishing phase of a product.

The wake‑up call from the finishing sub‑sector, echoed by the CIE, warns that gas price instability could disrupt the entire value chain of Spain’s textile industry. Since all textile goods must pass through finishing steps, the consequences would ripple into fashion and clothing lines. The council emphasizes that severe outcomes will unfold for Spanish textiles if high energy costs are not offset or compensated in some form.

As stated by CIE president Pepe Serna, Article 59 of Decree R 20/2022 outlines the appendix detailing the activities included in the proposed aid line. The council notes this could change with a decision by the Council of Ministers. The association urges the textile finishing sub‑sector to be recognized as gas‑intensive and to receive the proposed support, arguing that the entire sector depends on these processes for market readiness and competitive pricing.

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The industry has faced mounting costs that many firms find unaffordable, particularly when price increases cannot be passed on to customers without eroding competitiveness. Companies report that the burden has forced some production lines to close, and gas consumption indicators reflect a marked downturn in activity last year. Analysts note that the tightening margins and energy expense pressures have driven several plants to scale back operations as markets struggle to absorb the shock.

In 2021, the textile finishing sector consumed about 2.3 terawatt-hours of gas. By October 2022, annual gas use had dropped to roughly 1.7 terawatt-hours. The price of energy saw a dramatic rise, with the cost per megawatt-hour moving from roughly 20 euros to about 200 euros in certain periods, illustrating a more than eightfold increase in some windows of the year. These shifts compound the already tight margins across the industry, intensifying concerns about future competitiveness and sustainability.

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