Austrian Textile Enterprises Require Extension Of Quotas For Restricted Imports

In 2006, the turnover of LT, a cotton yarn manufacturer in Austria, declined by 2% to 4 billion 500 million euros, while pre tax earnings (Ebit) fell by 20%, to 4 million 500 thousand euros.

Company leader Dionys Lehner believes that the main reason for this situation is that the market continues to be chaotic after the opening of the world textile market in 2005, especially the rapid expansion of India and China in the textile industry.

This situation should be maintained until 2010.

The company also faces enormous competition pressure within the European Union.

To further improve production capacity, forced by competition from German enterprises, they have extended their workers' working hours from 37 hours to 40 to 42 hours since last year.

This measure has greatly improved the production efficiency. At present, the efficiency of the three production plants is the highest in the same industry.

Improving production efficiency is also an important strategy for the company in the future, even better than technology research and development.

But the result of competition is forcing companies to lay off workers. Since 2005, LT has laid off 100 people, and this year the company will also lose 48 people due to business adjustment.

For the estimation of the situation this year, the person in charge of the company said that the profit could at least reach the level of last year.

In view of the future, the company has invested 30 million euros to set up factories in China and is expected to be put into operation in 2008.

Nevertheless, the company still advocates restrictions on imports of Chinese textiles.