The East German textile industry is struggling with a sharp drop in sales. Last year alone, the industry lost around 10 percent of its revenue, said Jenz Otto, Managing Director of the Association of the North-East German Textile and Clothing Industry. "The air is thin for many companies." The industry is not expecting a real turnaround this year either. "We don't see any growth."
The Saxony-Thuringia region is reportedly the fourth largest textile region in Germany and employs around 14,500 people. However, six companies filed for insolvency last year due to economic difficulties. Production is also being relocated abroad. High energy prices, social security contributions and an immense amount of bureaucracy, among other things, are putting a strain on companies.
Clothing manufacturers in particular have suffered greatly recently, explained Otto. Their share of sales in the association's territory had fallen from around eight percent ten years ago to just three to four percent. The companies mainly earn their money with technical textiles. The sector is now a classic supplier industry for other industries such as automotive, healthcare, furniture and construction.
