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Romanian Textile Cos To Operate Some 50,000-60,000 Layoffs In 2010

Some 50,000-60,000 Romanian textile industry personnel might be laid off by the end of the year, while the textile market will see a 10%-15% decrease, down to EUR2.9 billion, because of fewer orders, managing board chairwoman of Romanian textile company Pasmatex Maria Grapini said Wednesday.
Romanian Textile Cos To Operate Some 50,000-60,000 Layoffs In 2010
30 iun. 2010, 15:52, English

Grapini said that approximately 58,000 textile industry employees lost their jobs last year, lowering the overall number of industry staff to 230,000 at the end of 2009. Grapini also deplored the lack of initiative in creating new textile companies and said that the second half of 2010 will bring „more uncertainties” than the first.

According to Grapini, the Romanian textile industry will continue to spiral downward, as increasing the value added tax to 24% will drive more companies out of business. Grapini maintained that many companies will attempt to lower their expenditure by decreasing output values, while others will relocate to other countries.

Grapini said that only exports might help revive the industry, as over 80% of Romania’s textile products are sold abroad.

The Romanian Government decided this weekend to increase the value added tax to 24% as of July 1, from 19%, to keep the country’s budget deficit below the IMF-agreed cap of 6.8% of the GDP.