International Production Cost Comparison 2014

Spinning / Texturing / Weaving / Knitting
INTERNATIONAL
PRODUCTION COST
COMPARISON
2014
INTERNATIONAL TEXTILE MANUFACTURERS FEDERATION

FDRATION INTERNATIONALE DES INDUSTRIES TEXTILES
INTERNATIONALE VEREINIGUNG DER TEXTILINDUSTRIE
International Production
Cost Comparison 2014
Spinning/Texturing/Weaving/Knitting
The worlds primary textile industry is engaged in a continuing modernization

and restructuring process, spurred by the advent of entirely new or more
sophisticated textile technology together with increasing competition for
markets and products. Originating in the industrialized countries, the process
has spread to newly industrialized and to developing countries, many of
which are increasingly turning to the latest textile technology as a means of
ensuring their competitive position, especially in export markets. This trend
has been clearly evidenced by the survey on world textile machinery ship-
ments conducted by ITMF since 1974 (International Textile Machinery
Shipment Statistics).
ITMFs International Production Cost Comparison, first published in 1979, is

designed to trace the implications of the growing capital intensity in the
primary textile industry. Thus, the presentation in this study of manufacturing
costs and of total yarn/fabric costs includes a breakdown into the various cost
elements which allows for a better appreciation of the relative importance of
these elements and their respective influence on the total costs.
When reading the report, the objectives of the study - as outlined above -
must constantly be borne in mind. It should also be noted that international
competition takes place between a much wider array of producers working
not only with the most modern and highly capital intensive equipment of the
type assumed in this study, but with depreciated old or second-hand machin-
ery, leading to wide variations in manufacturing costs.
Attention is furthermore drawn to the fact that the cost pattern as emerging
from this report reflects but one of the elements entering into the calculation
of the final sales price for yarns and fabrics, others being overheads, incentive
schemes, transport and insurance, import and export duties, etc. Moreover,
competitiveness is determined increasingly by such factors as quality and
style, reliability, promptness of delivery, flexibility, etc., which fall outside the
scope of this study. An international comparison of this order can therefore
never be more than an approximation to the real market situation.
Finally, the changing nature of macro-economic factors (wage levels, infla-

tion, interest and exchange rates, tariffs, etc.) renders it difficult to make
production cost calculations which are valid for a longer period. Hence, as
no attempt is being made in this study to neutralize the effects of changes in
the economic environment, the cost data presented are those valid at the
beginning of the investment period, their validity for the later phases of the
period being dependent on changes in macro-economic factors.
December 2014
INTERNATIONAL TEXTILE MANUFACTURERS FEDERATION

FDRATION INTERNATIONALE DES INDUSTRIES TEXTILES
INTERNATIONALE VEREINIGUNG DER TEXTILINDUSTRIE
Wiedingstrasse 9 Phone (+41-44) 283 63 80

CH-8055 Zrich Fax (+41-44) 283 63 89
Switzerland E-mail secretariat@itmf.org
Web http:/www.itmf.org
Contents
4 Acknowledgements
Basis of Calculation
5 Scope and Coverage
6 Exchange Rates
7 Raw Material Costs
8 Definition of Cost Factors
Cost Factors 2014

9 Spinning
10 Texturing
11 Weaving
13 Knitting
Calculated Costs
15 Definition of Cost Elements
Manufacturing Costs 2014

16 Spinning
18 Texturing
19 Weaving
22 Knitting
Total Costs 2014

25 Yarns
27 Woven Fabrics
29 Knitted Fabrics
31 Annex
How to calculate company-specific depreciation
and interest costs
ITMF International Production Cost Comparison 2014 3

Acknowledgements
The cooperation in this study of the following is gratefully acknowledged:
Mayer & Cie. Circular Knitting Machines, Albstadt, Germany
Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co. KG, Remscheid, Germany
Picanol N.V., Ieper, Belgium
Rieter Machine Works Ltd., Winterthur, Switzerland
Hermann Buehler AG, Sennhof, Switzerland
Associao Brasileira da Indstria Txtil e de Confeco, Sao Paulo, Brazil

China National Textile & Apparel Council, Beijing, China
Textile Consolidation Fund, Cairo, Egypt
Confederation of Indian Textile Industry, New Delhi, India
PT Apac Inti Corpora, Jacarta, Indonesia
Fondazione Industrie Cotone e Lino, Milan, Italy
Spinners & Weavers Association of Korea, Seoul, Korea Rep.
Roberts, Curry & Company, Greenville, SC, USA
Cotlook Limited, Birkenhead, UK
International Cotton Advisory Committee, Washington, DC, USA

Scope and Coverage
Geographically, the study covers Brazil, China, Egypt, India, Indonesia, Italy, Korea, Turkey and Geographical
the USA. These countries all actively participate in international textile trade as exporters and/or Coverage
importers.
Every year, the machinery manufacturers on whose equipment the present study is based are Methodology
conducting numerous cost calculations for prospective clients around the world. Based on factors
supplied by these clients, manufacturing costs are calculated and enter as an important element
into the evaluation process of a given investment project. By using the same approach, ITMFs
International Production Cost Comparison attempts to simulate reality within the limits outlined
in the study. Cost factors for the participating countries are supplied by individual companies,
consultants and textile trade associations. They are carefully reviewed by the four machinery
manufacturers cooperating in the study, with a view to arriving at representative average factors
for the country concerned. The results are presented in a way enabling the reader to see the
repercussions on the costing structure of diverging factors (e.g. labour and capital costs).
The product base in spinning is a Ne 30 (Nm 50 / 20 tex) combed yarn made of 100% cotton of Product
1-1/8" staple length and a Ne 20 (Nm 33 / 30 tex) carded yarn made of 100% cotton of 1-1/16 Coverage
staple length. In texturing, it is a 100% polyester POY 75 f72 den textured yarn. The cotton yarns
are woven into a "print cloth" fabric of 27.6/27.6 threads per cm (ring yarn) and a print cloth
fabric of 24.0/24.0 threads per cm (rotor yarn), and a textured fabric of 38.0/31.0 threads per cm.
Fabric dimensions are 168 cm grey width (cotton ring and rotor yarn), and 177 cm grey width
(textured yarn). In knitting, the fabric constructions are of the Single Jersey type, 192 cm
unfinished width (cotton ring) and of the Lapique type, 224 cm (cotton rotor) and of the Interlock
type, 190 cm unfinished width (textured yarn), resp.
The cost calculations are based on the assumption that the cotton yarn is spun in a new mill equipped Mill Type
with 16,320 Rieter ring spindles and 1,380 Rieter open-end rotors producing 400 kg per hour while and Size
the textured yarn is produced on 10 Barmag eFK with an output of 800 metres per machine and
minute, or 2,000 kg of yarn per day (95% machine efficiency). In weaving, 96 Picanol air-jet weaving
machines OMNIplus Summum-2-P-190 produce 19.4 meters of fabric per machine and hour (94%
machine efficiency), 72 Picanol air-jet weaving machines OMNIplus Summum-2-P-190 produce
22.3 meters of fabric per machine and hour (94% machine efficiency) while 60 Picanol rapier
weaving machines OptiMax-4-R-190 have an output of 12 meters per machine and hour (95%
machine efficiency). For knitting Single Jersey (Lapique), 17 (13) circular knitting machines of Mayer
& Cie, type Relanit 3.2 II, 30 inch diameter, gg 24, 96 feeders, with an output of 25.3 kg (31.4 kg)
per machine and hour (85% machine efficiency) are assumed, while for knitting Interlock, 8 circular
knitting machines of Mayer & Cie, type OV 3.2 QC, 30 inch diameter, gg 28, 96 feeders, producing
10.7 kg per machine and hour (85% machine efficiency), are needed.
Rates of output are assumed to be identical for all 9 countries concerned. The different Efficiency
efficiency standards prevailing in the countries have been taken into consideration by v arying Standards
the number of workers required to obtain the output levels indicated.
The calculations are based on cost factors that prevailed in the 1st quarter of 2014. Reference
Cotton/polyester prices are those of the last week of May and June, respectively. Period

Exchange Rates
In view of rapidly changing currency relationships, especially vis--vis the US dollar (USD),
production cost factors are surveyed in domestic currencies, and converted to USD for ease
of comparison. Average exchange rates for Q1/2014 were employed, as outlined below:
Brazil 1 USD = 2.36 Real

China 1 USD = 6.12 Yuan Renminbi
Egypt 1 USD = 6.93 Egyptian Pound
India 1 USD = 61.58 Rupees
Indonesia 1 USD = 11,758.63 Rupiah
Italy 1 USD = 0.73 Euro
Korea 1 USD = 1,076.41 Won
Turkey 1 USD = 2.21 Turkish New Lira
All values appearing in the tables detailing Cost Factors, Manufacturing (Conversion) and
Total Costs are expressed in USD.

Raw Material Costs 2014*
Price (fine) 1-1/8": USD 1.940 per kg Brazil

Local market price for representative Brazilian Esalq index (basis 41-4) Real 1.9113 per pound. Plus
premium for Superfine 1-1/8" of 2 cents per pound. Exchange rate: 1 USD = Real 2.219053
Price (medium) 1-1/16": USD 1.863 per kg
Price (fine) 1-1/8": USD 2.856 per kg China

China Cotton Index for representative Chinese style (T328) Yuan 17,392 per ton. Plus premium for
Superfine 1-1/8" of 1.75 cents per pound. Exchange rate: 1 USD = Yuan 6.17213
Price (fine) 1-1/8": USD 3.847 per kg Egypt

Export price for representative Egyptian style Giza 86. Minus discount for Superfine 1-1/8" of 5
cents per pound. Exchange rate: 1 USD = Pound 7.12958
Price (fine) 1-1/8": USD 2.06 per kg India

Bombay quotation for representative Indian style Shankar-6 Rupees 42,250 per candy. Plus premium
for Superfine 1-1/8" of 1.00 cents per pound. Exchange rate: 1 USD = Rupees 58.93
Price (fine) 1-1/8": USD 2.04 per kg Indonesia

Medium count cotton used in the production of 30-count 100% combed cotton yarn. Quotes for SM 1-1/8"
in Cotton Outlook (May 29, 2014) are weighted by proportions in Indonesian imports; trade with Egypt,
Sudan and other extra-fine cotton producers is excluded. Exchange rate: 1 USD = Rupiah 11,614.4
Price (medium) 1-1/16: USD 1.962 per kg
Price (fine) 1-1/8": USD 2.00 per kg Italy

Medium count cotton used in the production of 30-count 100% combed cotton yarn. Quotes for SM
1-1/8" in Cotton Outlook (May 29, 2014) are weighted by proportions in Italian imports; trade with
Egypt, Sudan and other extra-fine cotton producers is excluded. Exchange rate:1 USD=Euro
0.73432
Price (fine) 1-1/8": USD 2.06 per kg Korea Rep.

Medium count cotton used in the production of 30-count 100% combed cotton yarn. Quotes for SM
1-1/8" in Cotton Outlook (May 29, 2014) are weighted by proportions in Korean imports; trade with
Egypt, Sudan and other extra-fine cotton producers is excluded. Exchange rate: 1 USD = Won
1,021.24
Price (fine) 1-1/8" = USD 2.205 per kg Turkey

Izmir quotation for representative Turkish style (Izmir, Standard 1 white) YTL 4.50 per kg. Plus
premium for Extra 1-1/8" of 2.00 cents per pound. Exchange reate: 1 USD = TL 2.086771
Price (fine) 1-1/8" = USD 1.809 per kg USA

7-region SLM 1-1/16" average of 78.55 cents per pound. Plus premium for SM 1-1/8" of 3.5 cents
per pound = 82.05 US cents per pound.
Sources: Cotton Outlook and ICAC

*last week of May 2014

Definition of Cost Factors
Manufacturing costs relate to the production area only, i.e. excluding overheads. Reference Area
Wages include social charges, fringe benefits and shift work premiums. Note that the study Wages
is based on expenditure in the production area only and therefore excludes overheads
(management, accounting, sales). Since, from experience, this cost factor differs widely from
one company to the other, its impact on the total costing structure may clearly be consider-
able.
The number of operatives required are determined by work-study methods. The individual Operating
times are according to Mayer, Oerlikon Barmag, Picanol and Rieter standards. Overlookers Personnel
and supervisors, as well as staff for laboratories, workshops, despatch, etc. are not included.
The requirements of skilled and unskilled workers for machine maintenance are determined Overhauling and
according to Mayer, Oerlikon Barmag, Picanol and Rieter standards for the overhaul and Maintenance
maintenance of their machines. The values indicated give the requirements per shift, similar Personnel
to those for operatives.
The necessary average floor space for machines, gangways and reserve (can space etc.) Floor Space
was evaluated on the basis of a great number of spinning, texturing, weaving and knitting
mill layouts. Certain alterations may arise, according to specific machinery layouts.
The cost of the buildings refers to the production area only and includes the costs of the air Building Costs
conditioning ducts for supply and recycled air; the lighting system; the installations for high
and low voltage electricity supply; fire protection; etc. The dimension of the air conditioning
installation is in direct relation to the specific climatic conditions in the respective countries.
The straight-line method (as against the degressive method) was used to calculate depre- Depreciation
ciation costs which are based on the period most commonly applied in the countries
concerned (as against those provided for in tax laws). Where depreciation rates differ from
those assumed, the company-specific depreciation costs may be re-calculated using the
formula in the Annex.
Interest rates vary not only from country to country but also from company to company within Interest Rates
one single country. In this study the average interest rates that prevailed in the first quarter
of the reference year were assumed.

Cost Factors 2014: Spinning
Brazil China Egypt India Indonesia Italy Korea Turkey USA9
Hourly wage for skilled personnel 6.55 3.25 1.90 1.10 2.05 31.90 19.057 7.40 17.8010/11
Hourly wage for machine tenders 3.45 2.80 1.50 0.70 1.20 25.60 9.757 4.25 14.5511
Hourly wage for unskilled personnel 2.75 2.30 1.15 0.55 0.80 25.05 8.657 3.20 11.8511
Operating hours
8,600 8,400 7,700 8,400 8,600 5,500 8,400 7,800 7,800
(per year)
Cost of electric power
0.121 0.132 0.04 0.09 0.08 0.22 0.09 0.08 0.0512
(per kwh )
Cost of buildings
394 261 231 175 154 1,370 583 181 1,128
(per m2)
Annual building maintenance
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
(%)
Depreciation period for machinery
10 10 12 10 12 8 8 10 714
(years)
Depreciation period for accessories
8 6 5 5 5 5 5 7 514
(years)
Depreciation period of buildings
20 20 30 29 20 30 32 39 39
(years)
Customs, import tax, etc.
17.5 21.03 0.05 13.0 5.0 0.0 5.0 0.0 0.0
(% of machinery price)
Capital interest rate
14.24 6.154 10.40 12.80 11.00 4.00 4.80 9.30 4.2515
(%)
Raw material costs (Ring)
1.940 2.856 3.847 2.060 2.040 2.000 2.060 2.205 1.809
(per kg of cotton 1-1/8)
Raw material costs (Rotor)
1.863 2.812 3.780 1.983 1.962 1.923 1.984 2.150 1.732
(per kg of cotton 1-1/16)
Notes
See page 13
Type Rieter ring spinning Yarn Data Raw material - 100% cotton
(incl. winding) Staple length - 1-1/8 inches
Yarn count - Ne 30 combed
Rate of Output 400 kg per hour
Type Rieter rotor spinning Yarn Data Raw material - 100% cotton
Staple length - 1-1/16 inches
Yarn count - Ne 20 carded
Rate of Output 400 kg per hour

Cost Factors 2014: Texturing
Operating hours
8,200 7,400 7,700 8,400 8,600 8,000 8,000 7,800 8,300
(per year)
0.121 0.132 0.04 0.09 0.08 0.16 0.09 0.09 0.0512
(per kwh )
Cost of buildings
421 228 202 175 154 1,000 613 226 1,250
(per m2)
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
(%)
10 10 12 10 12 8 8 10 514
(years)
10 8 5 6 5 5 8 7 514
(years)
20 20 30 29 20 30 32 39 39
(years)
15.0 17.03 15.05 13.0 5.0 0.0 7.0 4.08 0.0
14.24 6.154 10.4 12.00 11.00 4.20 4.80 9.30 4.2515
(%)
Raw material costs
1.75 1.72 1.93 1.706 1.66 1.98 1.80 1.75 2.1016
(per kg polyester POY)
Notes
See page 13
Size of Mill 10 Barmag eFK, 240 positions Yarn Data Raw material - 100% polyester POY
Yarn count - 75 den textured
(India: 85 den)
Rate of Output 1,039 yards of yarn per machine and minute/

2,600 kg per day
(95% machine efficiency)

Cost Factors 2014: Weaving
Hourly wage for skilled personnel

7.00 2.95 1.90 1.10 2.15 31.35 19.057 6.80 19.7010/11
(USD/h)
Hourly wage for machine tenders
3.75 2.80 1.15 0.70 1.30 26.85 9.757 5.00 16.9011
(USD/h)
Hourly wage for unskilled personnel
3.05 1.45 1.00 0.55 0.85 25.35 8.657 3.30 12.4511
(USD/h)
Operating hours
7,950 8,400 7,700 8,400 8,600 5,400 8,400 7,800 7,800
(per year)
0.121 0.132 0.04 0.09 0.08 0.22 0.09 0.08 0.0512
(per kwh )
Cost of water
0.69 0.57 0.15 0.18 0.12 1.10 1.35 0.30 2.1013
(per m3)
Cost of steam
0.11 0.12 0.08 0.11 0.03 0.48 0.14 0.18 0.05
(per lb. yarn )
Sizing cost
0.11 0.16 0.29 0.24 0.06 0.27 0.26 0.28 0.11
(per lb. yarn )
Cost of oil (per kg)
0.61 oil 0.80 oil 0.58 oil 0.88 oil 1.06 gas 0.62 gas 0.88 gas 0.41 oil 0.35 gas
Cost of gas (per m3)
Cost of buildings
424 245 216 171 154 1,370 557 208 1,128
(per m2)
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
(%)
10 10 12 10 12 8 10 10 714
(years)
10 5 5 5 5 5 5 6 514
(years)
20 20 30 29 20 30 32 39 39
(years)
19.0 23.03 10.05 13.0 5.0 0.0 5.0 0.0 3.7
14.24 6.154 10.40 12.80 11.00 4.00 4.80 9.30 4.2515
(%)
Raw material costs
(per meter of woven fabric)
- Cotton 1-1/8 0.369 0.543 0.731 0.391 0.388 0.380 0.391 0.419 0.344
- Cotton 1-1/16 0.462 0.697 0.938 0.492 0.487 0.477 0.492 0.533 0.430
- Polyester POY 0.185 0.182 0.205 0.1806 0.176 0.210 0.191 0.185 0.22316
Notes
See page 13

Print Cloth (ring yarn)
Size of Mill 96 Picanol airjet weaving machines Fabric Data Cloth type - print cloth
OMNIplus Summum-2-P-190, air conditioning, Construction - 27.6/27.6 threads/cm
weaving preparation, Yarn type - 100% cotton
cloth inspection, transportation units, Yarn count - Ne 30 warp & weft
warp beam diameter 1100 mm, Grey width - 168 cm
big batch winders 1000 mm Grey weight - 190 g/m
Rate of Output 19.4 meters of fabric per machine and hour

Print Cloth (rotor yarn)

Size of Mill 72 Picanol airjet weaving machines Fabric Data Cloth type - print cloth
OMNIplus Summum-2-P-190, air conditioning, Construction - 24.0/24.0 threads/cm
weaving preparation, Yarn type - 100% cotton
cloth inspection, transportation units, Yarn count - Ne 20 warp & weft
warp beam diameter 1100 mm Grey width - 168 cm
big batch winders 1000 mm Grey weight - 248 g/m

Print Cloth (textured yarn)

Size of Mill 60 Picanol rapier weaving machines Fabric Data Cloth type - textured fabric
OptiMax-4-R-190, air conditioning, Construction - 38.0/31.0 threads/cm
weaving preparation, Yarn type - PES filament/textured
cloth inspection, transportation units, Yarn count - 75 den warp & weft
warp beam diameter 1000 mm, Grey width - 177 cm
cloth beam diameter 600 mm Grey weight - 106 g/m


Cost Factors 2014: Knitting
Operating hours
6,500 8,200 4,800 8,400 8,600 4,000 6,624 8,100 7,800
(per year)
0.121 0.132 0.04 0.09 0.08 0.22 0.09 0.08 0.0512
(per kwh )
Cost of buildings
339 229 202 171 154 1,370 557 183 1,128
(per m2)
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
(%)
10 10 8 10 12 8 8 10 714
(years)
10 5 5 6 5 5 5 9 514
(years)
20 20 30 29 20 30 32 39 39
(years)
19.0 23.03 0.05 13.0 5.0 0.0 7.0 0.0 0.0
14.24 6.154 10.40 12.80 11.00 4.00 4.80 9.30 4.2515
(%)
Raw material costs
(per meter of knitted fabric)
- ring yarn (Single Jersey) 0.446 0.657 0.885 0.474 0.469 0.460 0.474 0.507 0.416
- rotor yarn (Lapique) 0.667 1.007 1.353 0.710 0.702 0.689 0.710 0.770 0.620
- textured yarn (Interlock) 0.366 0.359 0.403 0.3556 0.347 0.414 0.376 0.366 0.43916
Notes
1
Spread from 0.26 0.30 BRL
2
Average for Provinces Jiangsu, Zhejiang and Fujian
3
Only VAT of 17% (local) + import duty
4
1-3 years long term benchmark interest rate for loans
5
Country of origin = EU
6
85 den
7
Remark: Wages in the IPCC 2012 were too low
8
In some regions the VAT is 0%
9
Based on conditions in south-eastern United States
10
Rate for loom technician
11
Includes 25% fringe benefits
12
Average rate for industrial user in South Carolina for 12 month ending 12/31/13
13
Including 70% waste water treatment. For industrial user in Greenville County, S.C.
14
Recovery period (in years) GDS (MACRS)
15
Defined as prime plus 1%. Current as of April 2014. Prime rate effective since Dec 16, 2008
16
115 den POY feed yarn drawn down to 70 den finished yarn

Single Jersey (ring yarn)
Size of Mill 17 Mayer & Cie Relanit 3.2 II circular Fabric Data Construction - Single Jersey
knitting machines, 30 inch diameter, Yarn type - 100% cotton
24 gg, 96 feeders Yarn count - Ne 30
with side creel Unfinished width (open) - 192 cm
Unfinished weight - 230 g/m
Rate of Output 25.3 kg per machine and hour
(85% production efficiency)
Lapique (rotor yarn)

Size of Mill 13 Mayer & Cie Relanit 3.2 II circular Fabric Data Construction - Lapique
knitting machines, 30 inch diameter, Yarn type - 100% cotton
24 gg, 96 feeders Yarn count - Ne 20
with side creel Unfinished width (open) - 224 cm
Unfinished weight - 358 g/m
Rate of Output 31.4 kg per machine and hour
Interlock (textured yarn)

Size of Mill 8 Mayer & Cie OV 3.2 QC circular Fabric Data Construction - Interlock
knitting machines, 30 inch diameter, Yarn type - 100% PES
28 gg, with side creel Yarn count - 75 den / 72 f
Unfinished width (open) - 190 cm
Rate of Output 10.7 kg per machine and hour Unfinished weight - 209 g/m

Definition of Cost Elements
In spinning, revenue from the sale of waste (waste from slivers, filters, flats and grid Waste
droppings, etc.) is considered when calculating waste costs.
Wage costs are calculated on the basis of the wages paid to operatives and to skilled and Labour
unskilled labour for maintenance work. All social charges and shift-work premiums are
included. For reserve personnel a percentage figure is added.
Energy costs include the costs relating to the actual power consumption of the machines, Power
the illumination and the air conditioning (in weaving, also steam and heating). It is assumed
that the mill is lit for the entire production time.
The costs for spare parts, lubricants, cleaning materials and maintenance work on the Auxiliary Material
buildings represent the costs for auxiliary material (in weaving this includes preparation
costs).
This element includes depreciation of machines, accessories and buildings. Machinery costs Depreciation
include free delivery to the mill, erection and - where applic-able - customs duty and taxes.
Costs of capital interest. Interest
The sum of the above group of costs gives the total manufacturing costs. Total Manuf. Costs
Cotton/polyester. Raw Material
The sum of the above group of costs gives the total yarn or fabric costs. With regard to total Total Costs
fabric costs one has to bear in mind that these consist of manufacturing costs both in
spinning/texturing and weaving/knitting of one meter fabric plus the respective raw material
costs.

Manufacturing Costs 2014: Spinning/Ring (Ne 30)
Brazil China Egypt India Indo. Italy Korea Turkey USA
0.313 0.462 0.623 0.333 0.330 0.323 0.333 0.359 0.292

Waste 18% 27% 42% 23% 25% 11% 20% 24% 17%
0.131 0.095 0.062 0.031 0.051 0.803 0.335 0.170 0.448

Labour 8% 6% 4% 2% 4% 28% 20% 12% 26%
0.386 0.418 0.128 0.289 0.257 0.706 0.289 0.257 0.160

Power 22% 25% 9% 20% 20% 25% 18% 17% 10%
0.144 0.142 0.142 0.141 0.141 0.168 0.147 0.141 0.156

Auxiliary material 8% 9% 9% 9% 11% 6% 9% 10% 9%
0.382 0.395 0.297 0.361 0.279 0.685 0.431 0.337 0.515

Depreciation 22% 24% 20% 25% 22% 24% 26% 23% 30%
0.374 0.142 0.246 0.304 0.234 0.181 0.114 0.208 0.129

Interest 22% 9% 16% 21% 18% 6% 7% 14% 8%
Total manufacturing costs 1.730 1.654 1.498 1.459 1.292 2.866 1.649 1.472 1.700
(USD per kg of yarn)
Index (Italy: 100) (60) (58) (52) (51) (45) (100) (58) (51) (59)

Manufacturing Costs 2014: Spinning/Rotor (Ne 20)
0.140 0.211 0.284 0.148 0.147 0.144 0.148 0.161 0.130

Waste 19% 30% 43% 24% 26% 13% 23% 26% 20%
0.033 0.024 0.016 0.008 0.013 0.207 0.081 0.041 0.116

Labour 4% 3% 2% 1% 2% 19% 12% 7% 17%
0.171 0.185 0.056 0.128 0.114 0.312 0.128 0.114 0.071

Power 24% 26% 9% 21% 21% 28% 20% 19% 11%
0.085 0.084 0.084 0.083 0.083 0.096 0.086 0.084 0.090

0.148 0.154 0.117 0.140 0.110 0.272 0.168 0.129 0.201

Depreciation 21% 22% 18% 22% 20% 24% 25% 21% 30%
0.145 0.054 0.096 0.116 0.090 0.076 0.045 0.081 0.054

Interest 20% 7% 15% 19% 16% 7% 7% 13% 8%
(USD per kg of yarn)
Index (Italy: 100) (65) (64) (59) (56) (50) (100) (59) (55) (60)

Manufacturing Costs 2014: Texturing (75den/72f)
0.060 0.050 0.060 0.040 0.050 0.090 0.070 0.070 0.070

Waste 12% 13% 18% 10% 13% 10% 13% 13% 13%
0.090 0.040 0.03 0.030 0.030 0.400 0.200 0.140 0.220

Labour 18% 10% 9% 7% 7% 47% 36% 27% 40%
0.130 0.130 0.040 0.110 0.090 0.180 0.080 0.100 0.050

Power 27% 32% 12% 27% 22% 21% 15% 19% 9%
0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030

0.060 0.060 0.070 0.070 0.070 0.070 0.080 0.070 0.100

Depreciation 12% 15% 20% 17% 18% 8% 15% 14% 18%
0.120 0.090 0.110 0.130 0.130 0.090 0.090 0.110 0.080

Interest 25% 22% 32% 32% 33% 10% 16% 21% 15%
(USD per kg)
Index (Italy: 100) (57) (47) (38) (46) (45) (100) (64) (60) (64)

Manufacturing Costs 2014: Weaving Ring Yarn
0.006 0.008 0.007 0.005 0.006 0.008 0.006 0.006 0.006

Waste 2% 3% 4% 2% 3% 1% 2% 2% 2%
0.047 0.036 0.016 0.009 0.017 0.244 0.120 0.053 0.146

Labour 15% 13% 8% 4% 9% 37% 37% 20% 43%
0.085 0.092 0.028 0.064 0.057 0.156 0.064 0.057 0.036

Power 27% 34% 14% 27% 31% 23% 19% 21% 10%
0.037 0.042 0.050 0.048 0.023 0.094 0.054 0.059 0.033

0.077 0.072 0.058 0.065 0.049 0.132 0.064 0.062 0.099

Depreciation 25% 26% 29% 27% 27% 20% 20% 23% 29%
0.060 0.024 0.039 0.044 0.034 0.031 0.018 0.031 0.022

Interest 19% 9% 20% 19% 18% 5% 6% 12% 6%
(USD per meter of fabric)
Index (Italy: 100) (47) (41) (30) (35) (28) (100) (49) (40) (51)

Manufacturing Costs 2014: Weaving Rotor Yarn
0.006 0.008 0.007 0.005 0.005 0.006 0.006 0.007 0.005

Waste 2% 3% 4% 2% 3% 1% 2% 2% 1%
0.053 0.038 0.017 0.010 0.018 0.227 0.136 0.062 0.154

Labour 18% 15% 8% 4% 10% 35% 40% 23% 46%
0.075 0.082 0.025 0.057 0.050 0.138 0.057 0.050 0.031

Power 25% 31% 13% 25% 29% 22% 17% 18% 9%
0.042 0.049 0.060 0.057 0.024 0.114 0.064 0.071 0.037

0.070 0.066 0.053 0.058 0.045 0.121 0.058 0.056 0.090

Depreciation 23% 25% 27% 26% 26% 19% 17% 21% 27%
0.055 0.021 0.035 0.040 0.031 0.030 0.017 0.028 0.020

Interest 18% 8% 18% 18% 18% 5% 5% 10% 6%
Index (Italy: 100) (47) (42) (31) (36) (27) (100) (53) (43) (53)

Manufacturing Costs 2014: Weaving Textured Yarn
0.005 0.004 0.004 0.004 0.003 0.006 0.004 0.005 0.004

Waste 1% 1% 2% 1% 1% 1% 1% 2% 1%
0.074 0.055 0.018 0.016 0.024 0.341 0.160 0.075 0.226

Labour 17% 15% 7% 6% 9% 41% 40% 23% 45%
0.099 0.108 0.033 0.074 0.066 0.182 0.074 0.066 0.041

Power 23% 31% 14% 25% 26% 22% 19% 20% 8%
0.033 0.032 0.032 0.031 0.031 0.042 0.033 0.031 0.037

0.123 0.115 0.093 0.103 0.078 0.210 0.102 0.098 0.158

Depreciation 29% 33% 38% 35% 31% 25% 25% 30% 32%
0.096 0.038 0.062 0.070 0.054 0.050 0.029 0.050 0.035

Interest 22% 11% 26% 23% 21% 6% 7% 15% 7%
Index (Italy: 100) (52) (42) (29) (36) (31) (100) (49) (39) (60)

Manufacturing Costs 2014: Knitting Ring Yarn
0.006 0.005 0.002 0.001 0.002 0.050 0.019 0.006 0.026

Labour 16% 18% 5% 6% 9% 51% 41% 23% 54%
0.005 0.006 0.002 0.004 0.004 0.010 0.004 0.004 0.002

Power 14% 20% 5% 16% 17% 10% 9% 13% 5%
0.008 0.006 0.010 0.006 0.006 0.013 0.007 0.006 0.007

0.011 0.009 0.015 0.008 0.006 0.020 0.012 0.007 0.011

Depreciation 28% 30% 41% 31% 28% 21% 26% 27% 23%
0.009 0.003 0.007 0.006 0.004 0.005 0.003 0.004 0.003

Interest 23% 11% 21% 23% 20% 5% 7% 14% 5%
Index (Italy: 100) (40) (30) (37) (26) (22) (100) (46) (28) (50)

Manufacturing Costs 2014: Knitting Rotor Yarn
0.008 0.006 0.002 0.002 0.002 0.063 0.023 0.007 0.033

Labour 16% 18% 5% 6% 9% 51% 42% 23% 54%
0.007 0.007 0.002 0.005 0.004 0.012 0.005 0.004 0.003

Power 14% 20% 5% 16% 17% 10% 9% 134% 5%
0.009 0.007 0.013 0.007 0.007 0.016 0.009 0.008 0.008

0.014 0.011 0.019 0.010 0.007 0.025 0.015 0.009 0.014

Depreciation 28% 30% 41% 31% 28% 21% 26% 27% 23%
0.011 0.004 0.009 0.007 0.005 0.006 0.004 0.005 0.003

Interest 23% 11% 21% 23% 20% 5% 7% 14% 5%
Index (Italy: 100) (40) (29) (37) (25) (20) (100) (46) (27) (50)

Manufacturing Costs 2014: Knitting Textured Yarn
0.010 0.008 0.003 0.002 0.003 0.082 0.030 0.010 0.043

Labour 11% 12% 3% 4% 6% 40% 31% 16% 42%
0.009 0.010 0.003 0.007 0.006 0.016 0.007 0.006 0.004

Power 9% 14% 3% 11% 11% 8% 6% 9% 4%
0.021 0.016 0.028 0.016 0.015 0.035 0.020 0.016 0.018

0.031 0.025 0.043 0.022 0.017 0.056 0.034 0.020 0.031

Depreciation 32% 37% 44% 35% 31% 28% 34% 32% 30%
0.025 0.009 0.021 0.016 0.012 0.013 0.008 0.011 0.007

Interest 26% 13% 22% 25% 23% 7% 8% 17% 7%
Index (Italy: 100) (47) (34) (49) (31) (26) (100) (49) (31) (51)

Total Costs 2014: Ring Yarn
0.313 0.462 0.623 0.333 0.330 0.323 0.333 0.359 0.292

Waste 8% 10% 12% 9% 10% 7% 9% 10% 8%
0.131 0.095 0.062 0.031 0.051 0.803 0.335 0.170 0.448

Labour 4% 2% 1% 1% 2% 16% 9% 4% 13%
0.386 0.418 0.128 0.289 0.257 0.706 0.289 0.257 0.160

Power 10% 9% 2% 8% 8% 15% 8% 7% 5%
0.144 0.142 0.142 0.141 0.141 0.168 0.147 0.141 0.156

0.756 0.537 0.543 0.665 0.513 0.866 0.544 0.545 0.644

Capital (depreciation & interest) 21% 12% 10% 19% 15% 18% 15% 15% 18%
1.940 2.856 3.847 2.060 2.040 2.000 2.060 2.205 1.809

Raw material 53% 64% 72% 59% 61% 41% 55% 60% 52%
Total yarn costs 3.670 4.510 5.345 3.519 3.332 4.866 3.708 3.677 3.509
(per kg of yarn)
Index (Italy: 100) (75) (93) (110) (72) (68) (100) (76) (76) (72)
Total Costs 2014: Rotor Yarn
0.140 0.211 0.284 0.148 0.147 0.144 0.148 0.161 0.130

Waste 6% 6% 7% 6% 6% 5% 6% 6% 5%
0.033 0.024 0.016 0.008 0.013 0.207 0.081 0.041 0.116

Labour 1% 1% 0% 0% 0% 7% 3% 1% 5%
0.171 0.185 0.056 0.128 0.114 0.312 0.128 0.114 0.071

Power 7% 5% 1% 5% 5% 10% 5% 4% 3%
0.085 0.084 0.084 0.083 0.083 0.096 0.086 0.084 0.090

0.294 0.207 0.213 0.257 0.200 0.348 0.213 0.210 0.254

1.863 2.812 3.780 1.983 1.962 1.923 1.984 2.150 1.732

Raw material 72% 80% 85% 76% 78% 64% 75% 78% 72%
Total yarn costs 2.586 3.523 4.433 2.607 2.519 3.030 2.640 2.760 2.393
(per kg of yarn)
Index (Italy: 100) (85) (116) (146) (86) (83) (100) (87) (91) (79)

Total Costs 2014: Textured Yarn
0.060 0.050 0.060 0.040 0.050 0.090 0.070 0.070 0.070

Waste 3% 3% 3% 2% 2% 3% 3% 3% 3%
0.090 0.040 0.030 0.030 0.030 0.400 0.200 0.140 0.220

Labour 4% 2% 1% 1% 1% 14% 9% 6% 8%
0.130 0.130 0.040 0.110 0.090 0.180 0.080 0.100 0.050

Power 6% 6% 2% 5% 4% 6% 4% 4% 2%
0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030

0.180 0.150 0.180 0.200 0.200 0.160 0.170 0.180 0.180

1.750 1.720 1.930 1.700 1.660 1.980 1.800 1.750 2.100

Raw material 78% 81% 85% 81% 81% 70% 76% 78% 79%
Total yarn costs 2.240 2.120 2.270 2.110 2.060 2.840 2.350 2.270 2.650
(per kg of yarn)
Index (Italy: 100) (79) (74) (79) (74) (72) (100) (83) (80) (93)

Total Costs 2014: Woven Ring Yarn Fabric
0.066 0.096 0.126 0.069 0.068 0.070 0.069 0.074 0.061

Waste 7% 8% 10% 8% 8% 4% 7% 8% 6%
0.072 0.054 0.027 0.015 0.026 0.396 0.184 0.086 0.232

Labour 7% 5% 2% 2% 3% 25% 18% 9% 23%
0.159 0.172 0.053 0.119 0.106 0.291 0.119 0.106 0.066

Power 16% 15% 4% 13% 13% 18% 12% 11% 7%
0.064 0.069 0.077 0.075 0.050 0.126 0.082 0.086 0.063

0.281 0.198 0.200 0.235 0.181 0.327 0.186 0.197 0.243

0.369 0.543 0.731 0.391 0.388 0.380 0.391 0.419 0.344

Raw material 36% 48% 60% 43% 47% 24% 38% 43% 34%
Total fabric costs 1.010 1.132 1.214 0.904 0.819 1.589 1.031 0.967 1.009
Index (Italy: 100) (64) (71) (76) (57) (52) (100) (65) (61) (63)
Total Costs 2014: Woven Rotor Yarn Fabric
0.040 0.061 0.078 0.042 0.044 0.042 0.042 0.045 0.038

Waste 4% 5% 6% 5% 5% 3% 4% 5% 4%
0.061 0.044 0.021 0.012 0.024 0.278 0.156 0.072 0.183

Labour 6% 4% 2% 1% 3% 20% 16% 8% 20%
0.118 0.128 0.039 0.088 0.083 0.216 0.088 0.078 0.049

Power 13% 11% 3% 10% 10% 16% 9% 8% 5%
0.063 0.069 0.081 0.078 0.085 0.138 0.086 0.092 0.059

0.198 0.138 0.141 0.162 0.117 0.236 0.128 0.136 0.173

0.462 0.697 0.938 0.492 0.487 0.477 0.492 0.533 0.430

Raw material 49% 62% 72% 56% 58% 34% 50% 56% 47%
Index (Italy: 100) (68) (82) (93) (63) (61) (100) (72) (69) (67)

Total Costs 2014: Woven Textured Yarn Fabric
0.011 0.009 0.011 0.008 0.008 0.016 0.012 0.012 0.011

Packing 2% 2% 2% 2% 2% 1% 2% 2% 2%
0.084 0.060 0.021 0.020 0.028 0.383 0.181 0.090 0.249

Labour 13% 10% 4% 4% 6% 34% 28% 16% 32%
0.113 0.121 0.037 0.086 0.076 0.203 0.083 0.078 0.046

Power 17% 21% 8% 16% 16% 18% 13% 14% 6%
0.036 0.035 0.035 0.034 0.034 0.045 0.036 0.035 0.040

0.238 0.169 0.173 0.194 0.152 0.277 0.150 0.167 0.212

0.185 0.182 0.205 0.180 0.176 0.210 0.191 0.185 0.223

Raw material 28% 32% 42% 34% 37% 18% 29% 33% 28%
Index (Italy: 100) (59) (51) (42) (46) (42) (100) (57) (50) (69)

Total Costs 2014: Knitted Ring Yarn Fabric
0.072 0.106 0.143 0.077 0.076 0.074 0.077 0.082 0.067

Waste 8% 10% 11% 9% 10% 6% 9% 9% 8%
0.036 0.027 0.016 0.008 0.014 0.235 0.096 0.045 0.129

Labour 4% 3% 1% 1% 2% 19% 11% 5% 15%
0.094 0.102 0.031 0.070 0.063 0.172 0.070 0.063 0.039

Power 11% 10% 2% 8% 8% 14% 8% 7% 5%
0.041 0.039 0.043 0.038 0.038 0.052 0.041 0.039 0.043

0.194 0.136 0.147 0.167 0.128 0.224 0.140 0.136 0.162

0.446 0.657 0.885 0.474 0.469 0.460 0.474 0.507 0.416

Raw material 51% 62% 70% 57% 60% 38% 53% 58% 49%
Index (Italy: 100) (73) (88) (104) (69) (65) (100) (74) (72) (70)
Total Costs 2014: Knitted Rotor Yarn Fabric
0.050 0.075 0.102 0.053 0.053 0.051 0.053 0.058 0.046

Waste 5% 6% 6% 6% 6% 4% 5% 6% 5%
0.020 0.015 0.008 0.005 0.007 0.137 0.052 0.022 0.074

Labour 2% 1% 0% 0% 1% 11% 5% 2% 8%
0.068 0.073 0.022 0.051 0.045 0.124 0.051 0.045 0.028

Power 7% 6% 1% 5% 5% 10% 5% 4% 3%
0.039 0.037 0.043 0.037 0.037 0.050 0.040 0.038 0.040

0.130 0.089 0.104 0.109 0.083 0.155 0.095 0.089 0.108

0.667 1.007 1.353 0.710 0.702 0.689 0.710 0.770 0.620

Raw material 68% 78% 83% 74% 76% 57% 71% 75% 68%
Index (Italy: 100) (81) (107) (135) (80) (77) (100) (83) (85) (76)

Total Costs 2014: Knitted Textured Yarn Fabric
0.013 0.010 0.013 0.008 0.010 0.019 0.015 0.015 0.015

Waste 2% 2% 2% 2% 2% 2% 2% 3% 2%
0.029 0.016 0.009 0.008 0.009 0.166 0.072 0.039 0.089

Labour 5% 3% 2% 2% 2% 21% 12% 7% 14%
0.036 0.037 0.011 0.028 0.025 0.054 0.024 0.027 0.014

Power 6% 7% 2% 6% 5% 7% 4% 5% 2%
0.027 0.022 0.034 0.022 0.021 0.041 0.026 0.022 0.024

0.094 0.065 0.100 0.080 0.071 0.102 0.078 0.069 0.076

0.366 0.359 0.403 0.356 0.347 0.414 0.376 0.366 0.439

Raw material 65% 71% 70% 71% 72% 52% 64% 68% 66%
Index (Italy: 100) (70) (64) (71) (63) (60) (100) (73) (67) (82)

Annex
How to calculate company-specific depreciation and interest costs
The separate presentation in this study of depreciation and interest costs makes it
possible to calculate company-specific capital costs. Note that the share of machinery in
total depreciation in spinning varies from 85% - 95% in the different countries and that
for weaving from 80% - 90%, whereas the machinery part makes up more than 95% of
total depreciation in knitting. The remainder is for accessories and buildings.
Example: United States
Depreciation Costs (Machinery)

Weaving Ring Yarn
Share of machinery in total depreciation: 85%
Assumed depreciation period (see page 11): 7 years
Depreciation costs (machinery) 85% of USD 0.099 = USD 0.084

per meter/fabric (see page 19):
Company-specific depreciation period: 10 years
Company-specific depreciation costs (machinery) USD 0.084 x 7 / 10 = USD 0.059

per meter/fabric:
Interest Costs
Weaving Ring Yarn
Assumed interest rate (see page 11): 4.25%
Interest costs per meter/fabric (see page 19): USD 0.022
Company-specific interest rate: 9.0%
Company-specific interest costs per meter/fabric: USD 0.022 x 9.0 / 4.25 = USD 0.047

International Production Cost Comparison 2014

Caricato da

Informazioni sul documento

Descrizione originale:

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

International Production Cost Comparison 2014

Caricato da

Copyright:

Formati disponibili

Spinning / Texturing / Weaving / Knitting

INTERNATIONAL TEXTILE MANUFACTURERS FEDERATION

The worlds primary textile industry is engaged in a continuing modernization

ITMFs International Production Cost Comparison, first published in 1979, is

Finally, the changing nature of macro-economic factors (wage levels, infla-

INTERNATIONAL TEXTILE MANUFACTURERS FEDERATION

Wiedingstrasse 9 Phone (+41-44) 283 63 80

Cost Factors 2014

Manufacturing Costs 2014

Total Costs 2014

ITMF International Production Cost Comparison 2014 3

Mayer & Cie. Circular Knitting Machines, Albstadt, Germany

Picanol N.V., Ieper, Belgium

Rieter Machine Works Ltd., Winterthur, Switzerland

Hermann Buehler AG, Sennhof, Switzerland

Associao Brasileira da Indstria Txtil e de Confeco, Sao Paulo, Brazil

ITMF International Production Cost Comparison 2014 4

ITMF International Production Cost Comparison 2014 5

Brazil 1 USD = 2.36 Real

ITMF International Production Cost Comparison 2014 6

Price (fine) 1-1/8": USD 1.940 per kg Brazil

Price (fine) 1-1/8": USD 2.856 per kg China

Price (fine) 1-1/8": USD 3.847 per kg Egypt

Price (fine) 1-1/8": USD 2.06 per kg India

Price (fine) 1-1/8": USD 2.04 per kg Indonesia

Price (fine) 1-1/8": USD 2.00 per kg Italy

Price (fine) 1-1/8": USD 2.06 per kg Korea Rep.

Price (fine) 1-1/8" = USD 2.205 per kg Turkey

Price (fine) 1-1/8" = USD 1.809 per kg USA

Sources: Cotton Outlook and ICAC

ITMF International Production Cost Comparison 2014 7

ITMF International Production Cost Comparison 2014 8

Brazil China Egypt India Indonesia Italy Korea Turkey USA9

Rate of Output 400 kg per hour

ITMF International Production Cost Comparison 2014 9

Brazil China Egypt India Indonesia Italy Korea Turkey USA9

Rate of Output 1,039 yards of yarn per machine and minute/

ITMF International Production Cost Comparison 2014 10

Brazil China Egypt India Indonesia Italy Korea Turkey USA9

Hourly wage for skilled personnel

ITMF International Production Cost Comparison 2014 11

Rate of Output 19.4 meters of fabric per machine and hour

Print Cloth (rotor yarn)

Rate of Output 22.3 meters of fabric per machine and hour

Print Cloth (textured yarn)

Rate of Output 12.0 meters of fabric per machine and hour

ITMF International Production Cost Comparison 2014 12

Brazil China Egypt India Indonesia Italy Korea Turkey USA9

ITMF International Production Cost Comparison 2014 13

Lapique (rotor yarn)

Interlock (textured yarn)

ITMF International Production Cost Comparison 2014 14

Costs of capital interest. Interest

Cotton/polyester. Raw Material

ITMF International Production Cost Comparison 2014 15

Brazil China Egypt India Indo. Italy Korea Turkey USA

0.313 0.462 0.623 0.333 0.330 0.323 0.333 0.359 0.292

0.131 0.095 0.062 0.031 0.051 0.803 0.335 0.170 0.448

0.386 0.418 0.128 0.289 0.257 0.706 0.289 0.257 0.160

0.144 0.142 0.142 0.141 0.141 0.168 0.147 0.141 0.156

0.382 0.395 0.297 0.361 0.279 0.685 0.431 0.337 0.515

0.374 0.142 0.246 0.304 0.234 0.181 0.114 0.208 0.129

ITMF International Production Cost Comparison 2014 16