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    Collapse Of Italian Prato Textile Industry: 5 Enterprises Closed Within 15 Days! Can Chinese Enterprises Survive?

    2020/10/30 8:09:00 1

    PratoTextileEnterprise

    The economic tsunami triggered by the covid epidemic has had a frightening impact on Italy's textile center Prato. On September 16, after TRT finishing company with 46 employees announced its voluntary liquidation, a number of textile companies appeared on the bankruptcy portal: superlativa, Della B-side, Della tintoria rifinization Nuove idea e dell'area international. The closure of five factories in two weeks is a "massacre", which may multiply as global consumption stops leading to export markets in trouble.

    That means a lot of jobs could be lost. According to the focus of the third round of ires2020 proposed by the regional cgil, if there is no layoff ban, Tuscany will lose 90000 jobs by the end of this year. Data simulation shows that Prato will be the most affected area by the crisis. In the first half of 2020, unemployment benefits in Prato increased by 4820%, while the average increase in unemployment benefits in the region was + 682%. Laniero's core business, exports, is at risk: it fell 4% in the first half of this year and is expected to fall by more than 19%. The best forecast is: export recovery will be in 2023, with an expected growth rate of 3%.

    "In the coming months, rescuing the region's economy must be the number one task for all political forces," said Giorgio silli, economic coordinator. Unfortunately, the country is unlikely to selectively re close business or production. "

    Since January, the company's unemployment rate has not only shown a sharp decline in the risk of turnover He proposed to the biffoni union the establishment of collaborative work institutions to support businesses. "Delaying the entry into force of the new code of business crisis, which is scheduled to take effect in the summer of 2021, is actually devastating and will end the lives of many troubled companies," he said

    Silli made it clear that Prato could find fresh air by getting a tax credit of more than 30% of the inventory value of textile companies in previous years. "Millions of euros won't rain on companies like raindrops, but tens of thousands of euros may also give enterprises fresh air," he commented

    "It's a blessing for the region that microenterprises have made the history of our country, but today they are at risk of not being able to survive and not as resilient as the spring blockade," he concluded He also recalled the commitment made jointly with the mayor of Beverly that "in the measures to be taken, tools will be provided to facilitate business combination, help healthy enterprises save enterprises in trouble, and purchase with public funds or huge tax credits."

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