Knitwear industry faces a hard year

PUBLISHED : Thursday, 20 May, 1993, 12:00am
UPDATED : Thursday, 20 May, 1993, 12:00am

THE knitwear industry is facing a tough year due to weakness of its major overseas market, says an industry leader.

Mr Eddie Lu, chairman of Hongkong Knitwear Exporters and Manufacturers Association, said slow economic recovery in the United States and Europe combined to put pressure on local knitwear manufacturers.

He said most of the industry had seen slower orders from both markets.

Rising costs of raw materials and production further weakened the competitiveness of the industry.

Mr Lu was speaking after the opening of Garmentec '93 and Textile Machine Expo '93 yesterday at the Hongkong Exhibition Centre in Wan Chai.

Mr Lu said China might accept certain conditions attached to US Most Favoured Nation status renewal, but warned that conditional renewal could hit Hongkong's economy.

Mr Justin Yue, honorary secretary of the Hongkong Garment Manufacturers Association, expected that conditions attached to MFN renewal would not be too rigid.

He said Beijing might be willing to accept such conditions, adding that he was not too pessimistic on the future of Sino-US trade.

The Garmentec '93 and Textile Machine Expo '93, organised by Business and Industrial Trade Fairs, features the latest in garment and textile machinery, ancillary equipment, materials and related technology.

Other guests attending the opening ceremony included Mr Yip Hing-chung, vice-president of the Chinese Manufacturers' Association of Hongkong, and Mr Michael Chan, vice-chairman of the Hongkong Woollen and Synthetic Knitting Manufacturers' Associations.