Andrei Mezhinsky on the situation in light industry

Every year in June, professional holiday - Day of Light Industry Workers is celebrated. Labor collectives meet their professional holiday in difficult times, but, nevertheless, with cautious optimism.

Deputy of the Supreme Council Andrei Mezhinsky, general director of Tirotex textile company talks about the current state of affairs in the light industry, what trials the company is going through today and what changes await industrialists in the future.

EVALUATION OF THE CURRENT SITUATION IN THE MARKET

It is no secret that the economic situation in the countries importing Pridnestrovian products has affected our production volumes not in the best way. From January 1 to June 1, 2020, the reduction in production volumes in the PMR textile sector amounted to 12% compared to the same period last year. The reduction in sales for the same period compared to 2019 amounted to 23%. There are many reasons for this state of affairs, including dependence on imported raw materials and strong competition in the international market. In recent years, it has become increasingly difficult for us to stay on the most seemingly attractive Russian market for us: both in terms of the volume of possible orders and in terms of the convenience of logistics. Firstly, today subsidies are granted to Russian enterprises in the industry for loans for technical re-equipment, the purchase of raw materials and the creation of new industries, and secondly, the next step in protecting their (Russian) producer was probably justified from the point of view of the Russian economy and geopolitics: The Government of the Russian Federation of April 30, 2020 "On restrictions on the admission of certain types of industrial goods originating from foreign countries", according to which all types of light industry goods (textile, footwear, leather) of foreign origin are not allowed to public procurement. As for Eurozone, in only 19 EU countries, total GDP declined in the first quarter by 3.8% year on year. In all 27 EU member states, the economy contracted by 3.5%. This is the most severe collapse of all time since 1995. Of course, this also affected the purchasing power of light industry products. Taking into account the circumstances, Pridnestrovian producers have a hard time today.

THE STRONGEST SURVIVES

Nevertheless, the largest Pridnestrovian exporter of textile products, Tirotex company, is doing everything possible to reduce the impact of negative external factors on the operation of the enterprise and to maintain its position in the European and Russian markets. Despite the complexity of the work associated with the rapid spread of Covid-19 and, as a consequence, the suspension of production and logistics, after a sharp fall in April, sales on the European market leveled off, already in May-June reached the shipment volume for the same period last year of the year.

It is worth noting that we met the new spring-summer season fully equipped: we developed and mass-produced a new collection of bed and table assortment. We were full of hope that we would attract new customers - the largest players in the textile industry, who showed attention to Tirotex at the Heimtextil-2020 International Exhibition in Frankfurt. Of course, this interest was dictated by two circumstances: in the international textile arena, our company, the only manufacturer from Pridnestrovie (however, as always), presented its advanced achievements and new technological capabilities of production, and potential customers, in turn, appreciated the competitive advantage of cooperation with us.

REALITY

Tirotex is a manufacturer of home textiles and medical assortment, approximately 80% of which we export to Europe and neighboring countries, as well as to the American market. However, given the current situation related to the pandemic, the Pridnestrovian exporter reacted very sensitively and promptly to the needs of the republic and switched all manual threads of the sewing industry to sewing protective fabric masks of reusable use. In the period from March 18 to April 2, the first large batch (77 thousand items), which came at the disposal of the operational headquarters, was distributed among employees of various emergency response services, and part of the masks was immediately donated to the Republican Clinical Hospital. The next batch (more than 350 thousand masks) went into the retail network of stores, where the residents of our republic could purchase them for domestic needs. And about 50 thousand fabric dressings were made to protect workers of various organizations and enterprises of the city. We also developed models of special suits - these are surgical gowns with medical hoods and overalls. All fabric for these products is produced at Tirotex. In connection with the loading of sewing threads of “Tirotex” by sewing masks, we proposed that sewing developed by our designers, in connection with their urgent need, Odema and IntercenterLux made. By the way, the medical tissue from which the necessary medical products were sewn is resistant to boiling and chlorine-containing drugs. We handed over the fabric, as well as all accessories and packaging, to these companies for the execution of the order. Thus, Tirotex was not only able to fulfill its contractual obligations to existing foreign customers, but also took upon itself, so to speak, the lion's share of civic debt to the state and population.

FUTURE PLANS

I will not deny the fact that everything that is happening now will have a huge impact on the economies of all countries. Tirotex is an export-oriented enterprise, and we are watching with great attention what is happening in Europe and Asia. I am sure that after some time in the economy there will be a large-scale redistribution of many markets in favor of the most efficient participants, including in the textile market. Despite all the difficulties, the Tirotex company does everything possible to maintain the volume of orders, and the labor collective treats this situation with understanding and remains faithful to its enterprise and its vocation.

Undoubtedly, there are brighter and more joyful holidays in life, but a professional holiday is a day that is connected precisely with the personal achievements of industrialists, and with their personal contribution to the development of the industry and our republic. I sincerely and heartily congratulate all of you on your professional holiday! Please accept my sincere wishes for good health, new labor successes, happiness and prosperity to you and your families!