Knitwear industry faces a hard year

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.