Spinning / Texturing / Weaving / Knitting
INTERNATIONAL
PRODUCTION COST
COMPARISON
2012
INTERNATIONAL TEXTILE MANUFACTURERS FEDERATION
FÉDÉRATION INTERNATIONALE DES INDUSTRIES TEXTILES
INTERNATIONALE VEREINIGUNG DER TEXTILINDUSTRIE
International Production
Cost Comparison 2012
Spinning/Texturing/Weaving/Knitting
The world’s primary textile industry is engaged in a continuing modernization
and restructuring process, spurred by the advent of entirely new or more
sophisticated textile technology together with increasing competition for
markets and products. Originating in the industrialized countries, the process
has spread to newly industrialized and to developing countries, many of
which are increasingly turning to the latest textile technology as a means of
ensuring their competitive position, especially in export markets. This trend
has been clearly evidenced by the survey on world textile machinery shipments conducted by ITMF since 1974 (International Textile Machinery
Shipment Statistics).
ITMF’s International Production Cost Comparison, first published in 1979, is
designed to trace the implications of the growing capital intensity in the
primary textile industry. Thus, the presentation in this study of manufacturing
costs and of total yarn/fabric costs includes a breakdown into the various cost
elements which allows for a better appreciation of the relative importance of
these elements and their respective influence on the total costs.
When reading the report, the objectives of the study - as outlined above must constantly be borne in mind. It should also be noted that international
competition takes place between a much wider array of producers working
not only with the most modern and highly capital intensive equipment of the
type assumed in this study, but with depreciated old or second-hand machinery, leading to wide variations in manufacturing costs.
Attention is furthermore drawn to the fact that the cost pattern as emerging
from this report reflects but one of the elements entering into the calculation
of the final sales price for yarns and fabrics, others being overheads, incentive
schemes, transport and insurance, import and export duties, etc. Moreover,
competitiveness is determined increasingly by such factors as quality and
style, reliability, promptness of delivery, flexibility, etc., which fall outside the
scope of this study. An international comparison of this order can therefore
never be more than an approximation to the real market situation.
Finally, the changing nature of macro-economic factors (wage levels, inflation, interest and exchange rates, tariffs, etc.) renders it difficult to make
production cost calculations which are valid for a longer period. Hence, as
no attempt is being made in this study to neutralize the effects of changes in
the economic environment, the cost data presented are those valid at the
beginning of the investment period, their validity for the later phases of the
period being dependent on changes in macro-economic factors.
December 2012
INTERNATIONAL TEXTILE MANUFACTURERS FEDERATION
FÉDÉRATION INTERNATIONALE DES INDUSTRIES TEXTILES
INTERNATIONALE VEREINIGUNG DER TEXTILINDUSTRIE
Wiedingstrasse 9
CH-8055 Zürich
Switzerland
Phone
Fax
E-mail
Web
(+41-44) 283 63 80
(+41-44) 283 63 89
[email protected]
http:/www.itmf.org
Contents
4
Acknowledgements
Basis of Calculation
5
6
7
8
Scope and Coverage
Exchange Rates
Raw Material Costs
Definition of Cost Factors
Cost Factors 2012
9
10
11
13
Spinning
Texturing
Weaving
Knitting
Calculated Costs
15
Definition of Cost Elements
16
18
19
22
Manufacturing Costs 2012
Spinning
Texturing
Weaving
Knitting
25
27
29
Total Costs 2012
Yarns
Woven Fabrics
Knitted Fabrics
31
Annex
How to calculate company-specific depreciation
and interest costs
ITMF International Production Cost Comparison 2012
3
Acknowledgements
The cooperation in this study of the following is gratefully acknowledged:
Mayer & Cie. Circular Knitting Machines, Albstadt, Germany
Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co. KG, Remscheid, Germany
Picanol N.V., Ieper, Belgium
Rieter Machine Works Ltd., Winterthur, Switzerland
GATEX Ausbildungszentrum, Bad Säckingen, Germany
Associação Brasileira da Indústria Têxtil e de Confecção, Sao Paulo, Brazil
Textile Consolidation Fund, Cairo, Egypt
Confederation of Indian Textile Industry, New Delhi, India
Fondazione Industrie Cotone e Lino, Milan, Italy
Spinners & Weavers Association of Korea, Seoul, Korea Rep.
Roberts, Curry & Company, Greenville, SC, USA
Cotlook Limited, Birkenhead, UK
International Cotton Advisory Committee, Washington, DC, USA
ITMF International Production Cost Comparison 2012
4
Scope and Coverage
Geographically, the study covers Brazil, China, Egypt, India, Indonesia, Italy, Korea, Turkey and
the USA. These countries all actively participate in international textile trade as exporters and/or
importers.
Geographical
Coverage
Every year, the machinery manufacturers on whose equipment the present study is based are
conducting numerous cost calculations for prospective clients around the world. Based on factors
supplied by these clients, manufacturing costs are calculated and enter as an important element
into the evaluation process of a given investment project. By using the same approach, ITMF’s
International Production Cost Comparison attempts to simulate reality within the limits outlined
in the study. Cost factors for the participating countries are supplied by individual companies,
consultants and textile trade associations. They are carefully reviewed by the four machinery
manufacturers cooperating in the study, with a view to arriving at representative average factors
for the country concerned. The results are presented in a way enabling the reader to see the
repercussions on the costing structure of diverging factors (e.g. labour and capital costs).
Methodology
The product base in spinning is a Ne 30 (Nm 50 / 20 tex) combed yarn made of 100% cotton of
1-1/8" staple length and a Ne 20 (Nm 33 / 30 tex) carded yarn made of 100% cotton of 1-1/16’’
staple length. In texturing, it is a 100% polyester POY 75 f72 den textured yarn. The cotton yarns
are woven into a "print cloth" fabric of 27.6/27.6 threads per cm (ring yarn) and a ‘‘print cloth’’
fabric of 24.0/24.0 threads per cm (rotor yarn), and a textured fabric of 38.0/31.0 threads per cm.
Fabric dimensions are 168 cm grey width (cotton ring and rotor yarn), and 177 cm grey width
(textured yarn). In knitting, the fabric constructions are of the Single Jersey type, 192 cm
unfinished width (cotton ring) and of the Lapique type, 224 cm (cotton rotor) and of the Interlock
type, 190 cm unfinished width (textured yarn), resp.
Product
Coverage
The cost calculations are based on the assumption that the cotton yarn is spun in a new mill equipped
with 16,320 Rieter ring spindles and 1,380 Rieter open-end rotors producing 400 kg per hour while
the textured yarn is produced on 10 Barmag eFK with an output of 800 metres per machine and
minute, or 2,000 kg of yarn per day (95% machine efficiency). In weaving, 96 Picanol air-jet weaving
machines OMNIplus Summum-2-P-190 produce 19.4 meters of fabric per machine and hour (94%
machine efficiency), 72 Picanol air-jet weaving machines OMNIplus Summum-2-P-190 produce
22.3 meters of fabric per machine and hour (94% machine efficiency) while 60 Picanol rapier
weaving machines OptiMax-4-R-190 have an output of 12 meters per machine and hour (95%
machine efficiency). For knitting Single Jersey (Lapique), 17 (13) circular knitting machines of Mayer
& Cie, type Relanit 3.2 II, 30 inch diameter, gg 24, 96 feeders, with an output of 25.3 kg (31.4 kg)
per machine and hour (85% machine efficiency) are assumed, while for knitting Interlock, 8 circular
knitting machines of Mayer & Cie, type OV 3.2 QC, 30 inch diameter, gg 28, 96 feeders, producing
10.7 kg per machine and hour (85% machine efficiency), are needed.
Mill Type
and Size
Rates of output are assumed to be identical for all 9 countries concerned. The different
efficiency standards prevailing in the countries have been taken into consideration by v arying
the number of workers required to obtain the output levels indicated.
Efficiency
Standards
The calculations are based on cost factors that prevailed in the 1st quarter of 2012. Cotton/
polyester prices are those of the last week of May and June, respectively.
Reference
Period
ITMF International Production Cost Comparison 2012
5
Exchange Rates
In view of rapidly changing currency relationships, especially vis-à-vis the US dollar (USD),
production cost factors are surveyed in domestic currencies, and converted to USD for ease
of comparison. Average exchange rates for Q1/2012 were employed, as outlined below:
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
1 USD =
1 USD =
1 USD =
1 USD =
1 USD =
1 USD =
1 USD =
1 USD =
1.77
6.30
6.01
50.70
9,034.11
0.76
1,129.19
1.80
Real
Yuan Renminbi
Egyptian Pound
Rupees
Rupiah
Euro
Won
Turkish New Lira
All values appearing in the tables detailing Cost Factors, Manufacturing (Conversion) and
Total Costs are expressed in USD.
ITMF International Production Cost Comparison 2012
6
Raw Material Costs 2012*
Price (fine) 1-1/8": USD 1.771 per kg
Brazil
Local market price for representative Brazilian Esalq index (basis 41-4) Real 1.5745 per pound. Plus
premium for Superfine 1-1/8" of 3 cents per pound. Exchange rate: 1 USD = Real 2.03592
Price (medium) 1-1/16": USD 1.716 per kg
Price (fine) 1-1/8": USD 3.028 per kg
China
China Cotton Index for representative Chinese style (T328) Yuan 18.888 per ton. Plus premium for
Superfine 1-1/8" of 2.0 cents per pound. Exchange rate: 1 USD = Yuan 6.33004
Price (medium) 1-1/16": USD 2.98 per kg
Price (fine) 1-1/8": USD 2.69 per kg
Egypt
Export price for representative Egyptian style Giza 86. Minus discount for Superfine 1-1/8" of 5 cents
per pound. Exchange rate: 1 USD = Pound 6.0208
Price (medium) 1-1/16": USD 2.63 per kg
Price (fine) 1-1/8": USD 1.64 per kg
India
Bombay quotation for representative Indian style Shankar-6 Rupees 32,000 per candy. Plus premium
for Superfine 1-1/8" of 1.00 cents per pound. Exchange rate: 1 USD = Rupees 56.62
Price (medium) 1-1/16": USD 1.585 per kg
Price (fine) 1-1/8: USD 1.857 per kg
Indonesia
Medium count cotton used in the production of 30-count 100% combed cotton yarn. Quotes for SM 1-1/8"
in Cotton Outlook (May 23, 2012) are weighted by proportions in Indonesian imports; trade with Egypt,
Sudan and other extra-fine cotton producers is excluded. Exchange rate: 1 USD = Rupiah 9,241.04
Price (medium) 1-1/16: USD 1.768 per kg
Price (fine) 1-1/8": USD 1.82 per kg
Italy
Medium count cotton used in the production of 30-count 100% combed cotton yarn. Quotes for SM
1-1/8" in Cotton Outlook (May 23, 2012) are weighted by proportions in Italian imports; trade with Egypt,
Sudan and other extra-fine cotton producers is excluded. Exchange rate: 1 USD = Euro 0.7879
Price (medium) 1-1/16": USD 1.733 per kg
Price (fine) 1-1/8": USD 1.83 per kg
Korea Rep.
Medium count cotton used in the production of 30-count 100% combed cotton yarn. Quotes for SM
1-1/8" in Cotton Outlook (May 23, 2012) are weighted by proportions in Korean imports; trade with
Egypt, Sudan and other extra-fine cotton producers is excluded.
Exchange rate: 1 USD = Won 1.171,30
Price (medium) 1-1/16": USD 1.742 per kg
Price (fine) 1-1/8" = USD 1.704 per kg
Turkey
Izmir quotation for representative Turkish style (Izmir, Standard 1 white) YTL 3.05 per kg. Plus premium
for Extra 1-1/8" of 2.50 cents per pound. Exchange reate: 1 USD = TL 1.8379
Price (medium) 1-1/16": USD 1.65 per kg
Price (fine) 1-1/8" = USD 1.553 per kg
USA
7-region SLM 1-1/16" average of 65.44 cents per pound. Plus premium for SM 1-1/8" of 5 cents per
pound = 70.44 US cents per pound.
Price (medium) 1-1/16": USD 1.465 per kg
Sources: Cotton Outlook and ICAC
*last week of May 2012
ITMF International Production Cost Comparison 2012
7
Definition of Cost Factors
Manufacturing costs relate to the production area only, i.e. excluding overheads.
Reference Area
Wages include social charges, fringe benefits and shift work premiums. Note that the study
is based on expenditure in the production area only and therefore excludes overheads
(management, accounting, sales). Since, from experience, this cost factor differs widely from
one company to the other, its impact on the total costing structure may clearly be considerable.
Wages
The number of operatives required are determined by work-study methods. The individual
times are according to Mayer, Oerlikon Barmag, Picanol and Rieter standards. Overlookers
and supervisors, as well as staff for laboratories, workshops, despatch, etc. are not included.
Operating
Personnel
The requirements of skilled and unskilled workers for machine maintenance are determined
according to Mayer, Oerlikon Barmag, Picanol and Rieter standards for the overhaul and
maintenance of their machines. The values indicated give the requirements per shift, similar
to those for operatives.
Overhauling and
Maintenance
Personnel
The necessary average floor space for machines, gangways and reserve (can space etc.)
was evaluated on the basis of a great number of spinning, texturing, weaving and knitting
mill layouts. Certain alterations may arise, according to specific machinery layouts.
Floor Space
The cost of the buildings refers to the production area only and includes the costs of the air
conditioning ducts for supply and recycled air; the lighting system; the installations for high
and low voltage electricity supply; fire protection; etc. The dimension of the air conditioning
installation is in direct relation to the specific climatic conditions in the respective countries.
Building Costs
The straight-line method (as against the degressive method) was used to calculate depreciation costs which are based on the period most commonly applied in the countries
concerned (as against those provided for in tax laws). Where depreciation rates differ from
those assumed, the company-specific depreciation costs may be re-calculated using the
formula in the Annex.
Depreciation
Interest rates vary not only from country to country but also from company to company within
one single country. In this study the average interest rates that prevailed in the first quarter
of the reference year were assumed.
Interest Rates
ITMF International Production Cost Comparison 2012
8
Cost Factors 2012: Spinning
3
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Hourly wage for skilled personnel
10.111
1.94
1.36
0.90
2.13
28.95
6.422
7.78
19.004/5
Hourly wage for machine tenders
4.781
1.59
1.32
0.69
1.28
23.88
5.762
4.44
15.005
Hourly wage for unskilled personnel
4.241
1.07
0.90
0.56
0.85
22.71
5.052
3.33
12.005
Operating hours
(per year)
8,230
8,400
7,700
8,400
8,600
6,768
8,400
7,800
7,800
0.14
0.121
0.040
0.103
0.087
0.204
0.066
0.111
0.0516
508
175
216
184
160
1,250
500
167
1,055
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
10
10
12
10
12
8
8
10
76
8
6
5
5
5
5
5
7
56
20
20
30
29
20
30
32
39
39
20.0
21.0
0.0
13.0
5.0
0.0
5.0
3.0
0.0
10.34
6.60
11.5
12.3
9.0
6.5
4.8
10.0
4.257
1.771
3.028
2.690
1.640
1.857
1.820
1.830
1.704
1.553
1.716
2.980
2.630
1.585
1.768
1.733
1.742
1.650
1.465
Cost of electric power
(per kwh)
Cost of buildings
2
(per m )
Annual building maintenance
(%)
Depreciation period for machinery
(years)
Depreciation period for accessories
(years)
Depreciation period of buildings
(years)
Customs, sales tax, etc.
(% of machinery price)
Capital interest rate
(%)
Raw material costs (Ring)
(per kg of cotton 1-1/8”)
Raw material costs (Rotor)
(per kg of cotton 1-1/16”)
Notes
1
In previous years social charges were not included
In 2010 wages were too high
3
Based on conditions in Southeastern United States
4
Rate for machine technician
5
Includes 25 % fringe benefits
6
recovery period (in years) GDS (MACRS)
7
Defined as prime plus 1%. Current as of April 2012. Prime rate effective since Dec 16, 2008
2
Type
16,320 Rieter ring spindles
(incl. winding)
Yarn Data
Raw material
Staple length
Yarn count
-
100% cotton
1-1/8 inches
Ne 30 combed
Yarn Data
Raw material
Staple length
Yarn count
-
100% cotton
1-1/16 inches
Ne 20 carded
Rate of Output 400 kg per hour
Type
1,380 Rieter open-end rotors
Rate of Output 400 kg per hour
ITMF International Production Cost Comparison 2012
9
Cost Factors 2012: Texturing
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA4
Hourly wage for skilled personnel
7.23
1
3.02
2.17
1.52
2.28
28.95
15.06
10.78
19.30
Hourly wage for machine tenders
5.48
1
1.95
1.31
0.59
1.37
25.00
10.63
6.78
15.40
6
Hourly wage for unskilled personnel
4.18
1
1.21
1.04
0.49
0.92
21.84
7.97
6.00
12.65
6
Operating hours
(per year)
8,200
7,400
7,700
8,400
8,640
8,000
7,400
7,800
8,300
0.14
0.121
0.040
0.114
0.087
0.204
0.066
0.111
0.051
403
175
217
181
128
1,250
500
217
1,055
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
Depreciation period for machinery
(years)
10
10
12
10
12
10
8
10
5
8
Depreciation period for accessories
(years)
10
8
5
6
5
5
5
7
5
8
Depreciation period of buildings
(years)
20
20
30
29
20
30
32
39
39
20.0
17.0
2
15.0
13.0
5.0
0.0
7.0
18.0
3
0.0
10.34
6.60
11.5
12.0
9.0
6.5
4.8
10.0
4.25
1.92
1.59
1.75
1.52
1.76
1.99
1.65
1.92
2.15
Cost of electric power
(per kwh )
Cost of buildings
(per m2)
Annual building maintenance
(%)
Customs, sales tax, etc.
(% of machinery price)
Capital interest rate
(%)
Raw material costs
(per kg polyester POY)
5/6
7
8
10
Notes
In previous years social charges were not included
2
Only VAT of 17% (local)
3
In some regions the VAT is 0%
4
Based on conditions in Southeastern United States
5
Rate for machine technician
6
Includes 25% fringe benefits
7
Average rate for industrial user in South Carolina for 12 month ending 12/31/11
8
Recovery period (in years) GDS (MACRS)
9
Defined as prime plus 1%. Current as of April 2012. Prime rate effective since Dec 16, 2008
10
115 denier POY feed yarn drawn down to 70 denier finished yarn
1
Size of Mill
10 Barmag eFK, 240 positions
Rate of Output
1,039 yards of yarn per machine and minute/
2,600 kg per day
(95% machine efficiency)
ITMF International Production Cost Comparison 2012
Yarn Data
Raw material
Yarn count
-
100% polyester POY
75 den textured
(India: 85 den)
10
Cost Factors 2012: Weaving
5
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
8.251
2.06
1.83
1.06
2.43
28.95
6.424
7.18
19.506/7
4.711
1.94
1.04
0.86
1.46
26.32
5.764
5.36
16.757
3.951
1.11
0.95
0.68
0.97
22.71
5.054
3.51
12.357
Operating hours
(per year)
7,950
8,400
7,700
8,400
8,600
5,640
8,400
7,300
7,800
Cost of electric power
(per kwh )
0.140
0.121
0.040
0.103
0.087
0.204
0.066
0.111
0.0518
Cost of water
3
(per m )
0.880
0.524
0.125
0.280
0.140
0.921
1.290
0.330
2.108/9
Cost of steam
(per lb. yarn )
0.090
0.114
0.083
0.118
0.080
0.330
0.110
0.190
0.049
Sizing cost
(per lb. yarn )
0.150
0.152
0.333
0.296
0.335
0.260
0.230
0.320
0.094
0.76
(oil)
0.78
(oil)
0.60
0.552
0.60
0.79
0.71
(gas)
0.46
0.007
9
(gas)
Cost of buildings
2
(per m )
508
175
216
197
160
1,250
500
200
1,055
Annual building maintenance
(%)
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
Depreciation period for machinery
(years)
10
10
12
10
12
8
10
10
710
Depreciation period for accessories
(years)
10
5
5
5
5
5
5
6
510
Depreciation period of buildings
(years)
20
20
30
29
20
30
32
39
39
Customs, sales tax, etc.
(% of machinery price)
19.00
23.02
0.0
13.0
5.0
0.0
5.0
0.0
3.7
Capital interest rate
(%)
10.34
6.60
11.50
12.30
9.00
6.50
4.80
10.0
4.2511
- Cotton 1-1/8 “
0.336
0.575
0.511
0.312
0.353
0.346
0.348
0.324
0.295
- Cotton 1-1/16 “
0.426
0.739
0.652
0.393
0.438
0.430
0.432
0.409
0.363
- Polyester POY
0.204
0.169
0.185
0.1613
0.187
0.211
0.175
0.204
0.22812
Hourly wage for skilled personnel
(USD/h)
Hourly wage for machine tenders
(USD/h)
Hourly wage for unskilled personnel
(USD/h)
Cost of oil/gas (per kg/cu.ft)
(per cu. ft )
Raw material costs
(per meter of woven fabric)
Notes
1
In previous years social charges were not included
2
Only VAT of 17% (local)
8
85 den
4
2010 wages were too high
5
Based on conditions in Southeastern United States
6
Rate for loom technician
7
Includes 25% fringe benefits
ITMF International Production Cost Comparison 2012
8
Rate for industrial user in Greenville County, South Carolina
Includes sewage (currently 62% of total cost)
10
Recovery period (in years) GDS (MACRS)
11
Defined as prime plus 1%. Current as of April 2012
Prime rate effective since April 30, 2008
12
115 den POY feed yarn drawn down to 70 den finished yarn
9
11
Print Cloth (ring yarn)
Size of Mill
96 Picanol airjet weaving machines
OMNIplus Summum-2-P-190, air conditioning,
weaving preparation,
cloth inspection, transportation units,
warp beam diameter 1100 mm,
big batch winders 1000 mm
Fabric Data
Cloth type
Construction
Yarn type
Yarn count
Grey width
Grey weight
-
print cloth
27.6/27.6 threads/cm
100% cotton
Ne 30 warp & weft
168 cm
190 g/m
Fabric Data
Cloth type
Construction
Yarn type
Yarn count
Grey width
Grey weight
-
print cloth
24.0/24.0 threads/cm
100% cotton
Ne 20 warp & weft
168 cm
248 g/m
Fabric Data
Cloth type
Construction
Yarn type
Yarn count
Grey width
Grey weight
-
textured fabric
38.0/31.0 threads/cm
PES filament/textured
75 den warp & weft
177 cm
106 g/m
Rate of Output 19.4 meters of fabric per machine and hour
(94% machine efficiency)
Print Cloth (rotor yarn)
Size of Mill
72 Picanol airjet weaving machines
OMNIplus Summum-2-P-190, air conditioning,
weaving preparation,
cloth inspection, transportation units,
warp beam diameter 1100 mm
big batch winders 1000 mm
Rate of Output 22.3 meters of fabric per machine and hour
(94% machine efficiency)
Print Cloth (textured yarn)
Size of Mill
60 Picanol rapier weaving machines
OptiMax-4-R-190, air conditioning,
weaving preparation,
cloth inspection, transportation units,
warp beam diameter 1000 mm,
cloth beam diameter 600 mm
Rate of Output 12.0 meters of fabric per machine and hour
(95% machine efficiency)
ITMF International Production Cost Comparison 2012
12
Cost Factors 2012: Knitting
4
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Hourly wage for skilled personnel
11.241
2.75
0.86
0.89
2.43
23.43
6.433
4.55
17.605/6
Hourly wage for machine tenders
5.351
1.78
0.76
0.75
1.46
22.42
5.763
3.60
15.106
Hourly wage for unskilled personnel
4.941
1.27
0.56
0.73
0.97
21.34
5.053
2.82
11.756
Operating hours
(per year)
6,500
8,200
4,800
8,400
8,600
4,000
6,624
8,100
7,800
0.14
0.121
0.040
0.103
0.087
0.204
0.066
0.111
0.0517
356
175
200
204
160
1,250
500
200
1,055
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
10
10
8
10
12
8
8
10
78
10
5
5
6
5
5
5
9
58
20
20
30
29
20
30
32
39
39
19.00
23.02
0.0
13.0
5.0
0.0
7.0
0.0
0.0
10.34
6.60
11.5
12.3
9.0
6.5
4.8
10.0
4.259
- ring yarn (Single Jersey)
0.408
0.698
0.620
0.378
0.428
0.419
0.422
0.393
0.358
- rotor yarn (Lapique)
0.615
1.068
0.943
0.568
0.634
0.621
0.624
0.591
0.525
- textured yarn (Interlock)
0.400
0.332
0.366
0.318
0.368
0.416
0.344
0.401
0.449
Cost of electric power
(per kwh)
Cost of buildings
2
(per m )
Annual building maintenance
(%)
Depreciation period for machinery
(years)
Depreciation period for accessories
(years)
Depreciation period of buildings
(years)
Customs, sales tax, etc.
(% of machinery price)
Capital interest rate
(%)
Raw material costs
(per meter of knitted fabric)
Notes
1
In previous years social charges were not included
2
Including VAT of 17% plus 6% import duty
3
2010 wages were too high
4
Based on conditions in south-eastern United States
5
Rate loom technician
6
Includes 25% fringe benefits
7
Average rate for industrial user in South Carolina for 12 month ending 12/31/09
8
Recovery period (in years) GDS (MACRS)
9
Defined as prime plus 1%. Current as of April 2012. Prime rate effective since Dec 16, 2008
ITMF International Production Cost Comparison 2012
13
Single Jersey (ring yarn)
Size of Mill
17 Mayer & Cie Relanit 3.2 II circular
knitting machines, 30 inch diameter,
24 gg, 96 feeders
with side creel
Rate of Output
-
Single Jersey
100% cotton
Ne 30
192 cm
230 g/m
Fabric Data
Construction
Yarn type
Yarn count
Unfinished width (open)
Unfinished weight
-
Lapique
100% cotton
Ne 20
224 cm
358 g/m
Fabric Data
Construction
Yarn type
Yarn count
Unfinished width (open)
Unfinished weight
-
Interlock
100% PES
75 den / 72 f
190 cm
209 g/m
31.4 kg per machine and hour
(85% production efficiency)
Interlock (textured yarn)
Size of Mill
8 Mayer & Cie OV 3.2 QC circular
knitting machines, 30 inch diameter,
28 gg, with side creel
Rate of Output
Construction
Yarn type
Yarn count
Unfinished width (open)
Unfinished weight
25.3 kg per machine and hour
(85% production efficiency)
Lapique (rotor yarn)
Size of Mill
13 Mayer & Cie Relanit 3.2 II circular
knitting machines, 30 inch diameter,
24 gg, 96 feeders
with side creel
Rate of Output
Fabric Data
10.7 kg per machine and hour
(85% production efficiency)
ITMF International Production Cost Comparison 2012
14
Definition of Cost Elements
In spinning, revenue from the sale of waste (waste from slivers, filters, flats and grid
droppings, etc.) is considered when calculating waste costs.
Waste
Wage costs are calculated on the basis of the wages paid to operatives and to skilled and
unskilled labour for maintenance work. All social charges and shift-work premiums are
included. For reserve personnel a percentage figure is added.
Labour
Energy costs include the costs relating to the actual power consumption of the machines,
the illumination and the air conditioning (in weaving, also steam and heating). It is assumed
that the mill is lit for the entire production time.
Power
The costs for spare parts, lubricants, cleaning materials and maintenance work on the
buildings represent the costs for auxiliary material (in weaving this includes preparation
costs).
Auxiliary Material
This element includes depreciation of machines, accessories and buildings. Machinery costs
include free delivery to the mill, erection and - where applic-able - customs duty and taxes.
Depreciation
Costs of capital interest.
The sum of the above group of costs gives the total manufacturing costs.
Cotton/polyester.
The sum of the above group of costs gives the total yarn or fabric costs. With regard to total
fabric costs one has to bear in mind that these consist of manufacturing costs both in
spinning/texturing and weaving/knitting of one meter fabric plus the respective raw material
costs.
ITMF International Production Cost Comparison 2012
Interest
Total Manuf. Costs
Raw Material
Total Costs
15
Manufacturing Costs 2012: Spinning/Ring (Ne 30)
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.286
0.490
0.435
0.265
0.301
0.295
0.296
0.274
0.249
16%
30%
33%
19%
24%
11%
21%
18%
14%
Labour
0.218
0.061
0.060
0.035
0.062
0.854
0.211
0.204
0.532
12%
4%
5%
2%
5%
31%
15%
13%
31%
Power
0.478
0.413
0.136
0.351
0.296
0.696
0.225
0.379
0.174
27%
25%
10%
25%
24%
25%
16%
24%
10%
Auxiliary material
0.142
0.138
0.138
0.138
0.137
0.157
0.142
0.138
0.151
8%
9%
11%
10%
11%
6%
10%
9%
9%
Depreciation
0.405
0.376
0.287
0.350
0.271
0.534
0.414
0.336
0.497
22%
23%
22%
24%
22%
19%
30%
22%
29%
Interest
0.275
0.146
0.267
0.283
0.181
0.237
0.107
0.223
0.123
15%
9%
20%
20%
14%
8%
8%
14%
7%
Total manufacturing costs
1.804
1.624
1.323
1.422
1.248
2.773
1.395
1.554
1.726
(65)
(59)
(48)
(51)
(45)
(100)
(50)
(56)
(62)
(USD per kg of yarn)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
16
Manufacturing Costs 2012: Spinning/Rotor (Ne 20)
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.129
0.223
0.197
0.119
0.133
0.130
0.131
0.124
0.110
17%
31%
34%
19%
24%
12%
23%
19%
17%
Labour
0.046
0.014
0.014
0.007
0.014
0.192
0.048
0.043
0.120
6%
2%
2%
1%
2%
19%
8%
7%
18%
Power
0.204
0.176
0.058
0.149
0.126
0.297
0.096
0.161
0.074
27%
24%
10%
24%
23%
28%
17%
25%
11%
Auxiliary material
0.101
0.099
0.099
0.099
0.099
0.109
0.101
0.099
0.106
14%
14%
17%
16%
18%
10%
17%
15%
16%
Depreciation
0.160
0.148
0.115
0.139
0.108
0.214
0.163
0.131
0.196
21%
21%
19%
22%
20%
21%
28%
20%
30%
Interest
0.109
0.056
0.105
0.110
0.070
0.099
0.043
0.087
0.051
15%
8%
18%
18%
13%
10%
7%
14%
8%
Total manufacturing costs
0.749
0.716
0.588
0.623
0.550
1.041
0.582
0.645
0.657
(72)
(69)
(56)
(60)
(53)
(100)
(56)
(62)
(63)
(USD per kg of yarn)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
17
Manufacturing Costs 2012: Texturing (75den/72f)
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.060
0.050
0.060
0.040
0.050
0.100
0.070
0.070
0.070
12%
13%
18%
10%
13%
11%
13%
13%
12%
Labour
0.090
0.040
0.030
0.030
0.030
0.400
0.200
0.140
0.240
18%
10%
9%
7%
7%
45%
37%
26%
42%
Power
0.140
0.120
0.040
0.110
0.090
0.200
0.070
0.110
0.050
29%
30%
12%
27%
23%
23%
13%
21%
9%
Auxiliary material
0.030
0.030
0.030
0.030
0.030
0.030
0.030
0.030
0.030
6%
7%
9%
7%
7%
3%
6%
6%
5%
Depreciation
0.060
0.060
0.070
0.070
0.070
0.060
0.080
0.070
0.100
12%
15%
21%
17%
17%
7%
15%
13%
18%
Interest
0.110
0.100
0.110
0.130
0.130
0.100
0.090
0.110
0.080
23%
25%
32%
32%
33%
11%
16%
21%
14%
Total manufacturing costs
0.490
0.400
0.340
0.410
0.400
0.890
0.540
0.530
0.570
(55)
(45)
(38)
(46)
(45)
(100)
(61)
(60)
(64)
(USD per kg)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
18
Manufacturing Costs 2012: Weaving Ring Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.007
0.007
0.007
0.006
0.007
0.008
0.006
0.007
0.006
2%
3%
4%
2%
3%
1%
3%
2%
2%
Labour
0.058
0.025
0.015
0.011
0.019
0.221
0.062
0.057
0.145
18%
10%
7%
5%
9%
36%
26%
19%
44%
Power
0.097
0.086
0.028
0.072
0.062
0.144
0.047
0.079
0.036
30%
34%
15%
29%
27%
24%
19%
26%
11%
Auxiliary material
0.039
0.040
0.055
0.054
0.054
0.077
0.049
0.064
0.031
12%
16%
28%
22%
24%
13%
20%
21%
9%
Depreciation
0.076
0.068
0.051
0.062
0.054
0.119
0.061
0.063
0.095
24%
27%
26%
25%
24%
19%
25%
21%
28%
Interest
0.044
0.024
0.038
0.041
0.030
0.046
0.017
0.034
0.021
14%
10%
20%
17%
13%
7%
7%
11%
6%
Total manufacturing costs
0.321
0.250
0.194
0.246
0.226
0.615
0.242
0.304
0.334
(52)
(41)
(31)
(40)
(37)
(100)
(39)
(49)
(54)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
19
Manufacturing Costs 2012: Weaving Rotor Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.006
0.007
0.007
0.005
0.007
0.007
0.006
0.007
0.005
2%
3%
4%
2%
3%
1%
2%
2%
2%
Labour
0.066
0.027
0.016
0.011
0.021
0.214
0.070
0.066
0.153
21%
11%
8%
5%
10%
36%
29%
21%
46%
Power
0.085
0.076
0.025
0.063
0.055
0.128
0.042
0.070
0.032
28%
32%
13%
26%
26%
22%
17%
23%
10%
Auxiliary material
0.044
0.047
0.065
0.065
0.065
0.093
0.057
0.077
0.034
14%
19%
33%
27%
30%
16%
23%
25%
10%
Depreciation
0.069
0.062
0.046
0.057
0.044
0.116
0.055
0.057
0.086
22%
26%
24%
24%
20%
18%
22%
19%
26%
Interest
0.040
0.021
0.035
0.037
0.024
0.046
0.016
0.031
0.019
13%
9%
18%
16%
11%
7%
7%
10%
6%
Total manufacturing costs
0.310
0.240
0.194
0.238
0.216
0.604
0.246
0.308
0.329
(51)
(40)
(32)
(39)
(36)
(100)
(41)
(51)
(54)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
20
Manufacturing Costs 2012: Weaving Textured Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.005
0.004
0.005
0.004
0.005
0.005
0.004
0.005
0.006
1%
1%
2%
1%
2%
1%
1%
1%
1%
Labour
0.092
0.040
0.022
0.017
0.027
0.320
0.080
0.080
0.224
21%
12%
10%
6%
11%
39%
27%
22%
46%
Power
0.118
0.105
0.035
0.087
0.076
0.176
0.058
0.096
0.044
27%
33%
15%
29%
30%
22%
20%
26%
9%
Auxiliary material
0.033
0.031
0.031
0.031
0.031
0.040
0.033
0.031
0.036
8%
10%
13%
10%
12%
5%
11%
9%
7%
Depreciation
0.119
0.107
0.080
0.097
0.075
0.199
0.095
0.099
0.148
27%
33%
34%
33%
29%
24%
32%
27%
30%
Interest
0.069
0.037
0.059
0.064
0.042
0.072
0.027
0.054
0.032
16%
11%
26%
21%
16%
9%
9%
15%
7%
Total manufacturing costs
0.436
0.324
0.232
0.300
0.256
0.818
0.297
0.365
0.490
(53)
(40)
(28)
(37)
(31)
(100)
(36)
(45)
(60)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
21
Manufacturing Costs 2012: Knitting Ring Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Labour
0.011
0.003
0.001
0.002
0.002
0.046
0.011
0.006
0.026
26%
11%
3%
8%
10%
48%
31%
22%
53%
Power
0.006
0.005
0.002
0.005
0.004
0.009
0.003
0.005
0.002
14%
19%
5%
19%
18%
9%
8%
18%
4%
Auxiliary material
0.008
0.006
0.010
0.006
0.006
0.013
0.007
0.006
0.007
19%
23%
28%
23%
27%
14%
20%
21%
14%
Depreciation
0.011
0.009
0.015
0.008
0.006
0.020
0.012
0.007
0.011
25%
35%
42%
31%
27%
21%
33%
25%
23%
Interest
0.007
0.003
0.008
0.005
0.004
0.008
0.003
0.004
0.003
16%
12%
22%
19%
18%
8%
8%
14%
6%
Total manufacturing costs
0.043
0.026
0.036
0.026
0.022
0.096
0.036
0.028
0.049
(45)
(27)
(38)
(27)
(23)
(100)
(38)
(29)
(51)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
Korea Turkey
USA
22
Manufacturing Costs 2012: Knitting Rotor Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Labour
0.013
0.004
0.002
0.002
0.003
0.057
0.014
0.008
0.033
25%
12%
4%
6%
10%
48%
30%
22%
54%
Power
0.008
0.007
0.002
0.006
0.005
0.011
0.004
0.006
0.003
15%
21%
4%
19%
18%
9%
9%
17%
5%
Auxiliary material
0.009
0.007
0.013
0.007
0.007
0.016
0.009
0.008
0.008
17%
21%
28%
22%
27%
14%
19%
22%
13%
Depreciation
0.014
0.011
0.019
0.010
0.007
0.025
0.015
0.009
0.014
27%
34%
42%
31%
27%
21%
33%
25%
23%
Interest
0.008
0.004
0.010
0.007
0.004
0.010
0.004
0.005
0.003
16%
12%
22%
22%
18%
8%
9%
14%
5%
Total manufacturing costs
0.052
0.033
0.046
0.032
0.026
0.119
0.046
0.036
0.061
(44)
(28)
(39)
(27)
(22)
(100)
(39)
(30)
(51)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
23
Manufacturing Costs 2012: Knitting Textured Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Labour
0.017
0.005
0.002
0.003
0.004
0.074
0.018
0.010
0.043
17%
8%
2%
4%
8%
37%
21%
15%
42%
Power
0.010
0.009
0.003
0.008
0.006
0.015
0.005
0.008
0.004
10%
14%
3%
12%
12%
8%
6%
12%
4%
Auxiliary material
0.021
0.016
0.028
0.016
0.015
0.035
0.020
0.016
0.018
22%
25%
28%
25%
29%
17%
24%
24%
17%
Depreciation
0.031
0.025
0.043
0.022
0.017
0.056
0.034
0.020
0.031
32%
39%
44%
34%
32%
28%
40%
31%
30%
Interest
0.018
0.009
0.023
0.016
0.010
0.021
0.008
0.012
0.007
19%
14%
23%
25%
19%
10%
9%
18%
7%
Total manufacturing costs
0.097
0.064
0.099
0.065
0.052
0.201
0.085
0.066
0.103
(48)
(32)
(49)
(32)
(26)
(100)
(42)
(33)
(51)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
24
Total Costs 2012: Ring Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.286
0.490
0.435
0.265
0.301
0.295
0.296
0.274
0.249
8%
11%
11%
9%
10%
6%
9%
8%
8%
Labour
0.218
0.061
0.060
0.035
0.062
0.854
0.211
0.204
0.532
6%
1%
2%
1%
2%
19%
7%
6%
16%
Power
0.478
0.413
0.136
0.351
0.296
0.696
0.225
0.379
0.174
13%
9%
3%
11%
9%
15%
7%
12%
5%
Auxiliary material
0.142
0.138
0.138
0.138
0.137
0.157
0.142
0.138
0.151
4%
3%
3%
4%
4%
3%
4%
4%
5%
Capital (depreciation & interest)
0.680
0.522
0.554
0.633
0.452
0.771
0.521
0.559
0.620
19%
11%
14%
21%
15%
17%
16%
17%
19%
Raw material
1.771
3.028
2.690
1.640
1.857
1.820
1.830
1.704
1.553
50%
65%
67%
54%
60%
39%
57%
52%
47%
Total yarn costs
3.575
4.652
4.013
3.062
3.105
4.593
3.225
3.258
3.279
(74)
(101)
(87)
(67
(68)
(100)
(70)
(83)
(71)
(per kg of yarn)
Index (Italy: 100)
Total Costs 2012: Rotor Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.129
0.223
0.197
0.119
0.133
0.130
0.131
0.124
0.110
5%
6%
6%
5%
6%
5%
6%
4%
5%
Labour
0.046
0.014
0.014
0.007
0.014
0.192
0.048
0.043
0.120
2%
1%
0%
1%
1%
7%
2%
1%
6%
Power
0.204
0.176
0.058
0.149
0.126
0.297
0.096
0.161
0.074
8%
5%
2%
7%
5%
11%
4%
6%
3%
Auxiliary material
0.101
0.099
0.099
0.099
0.099
0.109
0.101
0.099
0.106
4%
3%
3%
4%
4%
4%
4%
3%
5%
Capital (depreciation & interest)
0.269
0.204
0.220
0.249
0.178
0.313
0.206
0.218
0.248
11%
5%
7%
11%
8%
11%
9%
8%
12%
Raw material
1.716
2.980
2.630
1.585
1.768
1.733
1.742
1.650
1.465
70%
81%
82%
72%
76%
65%
75%
78%
69%
Total yarn costs
2.465
3.696
3.218
2.208
2.318
2.774
2.324
2.295
2.122
(82)
(133)
(116)
(80)
(84)
(100)
(84)
(83)
(76)
(per kg of yarn)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
25
Total Costs 2012: Textured Yarn
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Packing
0.060
0.050
0.060
0.040
0.050
0.010
0.070
0.070
0.050
2%
2%
3%
2%
2%
3%
3%
3%
2%
Labour
0.090
0.040
0.030
0.030
0.030
0.400
0.200
0.140
0.030
4%
2%
1%
2%
1%
14%
9%
6%
1%
Power
0.140
0.120
0.040
0.110
0.090
0.200
0.070
0.110
0.090
6%
6%
2%
6%
4%
7%
3%
5%
4%
Auxiliary material
0.030
0.030
0.030
0.030
0.030
0.030
0.030
0.030
0.030
1%
2%
1%
2%
1%
1%
1%
1%
1%
Capital (depreciation & interest)
0.170
0.160
0.180
0.200
0.200
0.160
0.170
0.180
0.200
7%
8%
9%
10%
9%
6%
8%
7%
9%
Raw material
1.920
1.590
1.750
1.520
1.760
1.990
1.650
1.920
1.760
80%
80%
84%
78%
83%
69%
76%
78%
83%
Total yarn costs
2.410
1.990
2.090
1.930
2.160
2.880
2.190
2.450
2.160
(84)
(69)
(73)
(67)
(75)
(100)
876)
(85)
(94)
(per kg of yarn)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
26
Total Costs 2012: Woven Ring Yarn Fabric
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.061
0.100
0.090
0.056
0.064
0.064
0.063
0.059
0.053
6%
9%
9%
7%
8%
4%
7%
7%
6%
Labour
0.100
0.037
0.026
0.017
0.031
0.383
0.102
0.096
0.246
10%
3%
3%
2%
4%
26%
12%
10%
26%
Power
0.187
0.164
0.054
0.138
0.118
0.277
0.090
0.151
0.069
19%
14%
6%
17%
14%
19%
10%
16%
7%
Auxiliary material
0.066
0.066
0.081
0.081
0.081
0.107
0.076
0.090
0.060
6%
6%
9%
10%
10%
7%
9%
10%
6%
Capital (depreciation & interest)
0.249
0.191
0.194
0.223
0.169
0.311
0.177
0.204
0.233
25%
17%
20%
27%
21%
21%
21%
22%
24%
Raw material
0.337
0.575
0.511
0.312
0.353
0.346
0.348
0.324
0.295
34%
51%
53%
37%
43%
23%
41%
35%
31%
Total fabric costs
1.000
1.133
0.956
0.827
0.816
1.488
0.855
0.924
0.956
(67)
(76)
(64)
(56)
(55)
(100)
(57)
(62)
(64)
(USD per meter of fabric)
Index (Italy: 100)
Total Costs 2012: Woven Rotor Yarn Fabric
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.038
0.063
0.056
0.035
0.040
0.039
0.038
0.038
0.033
4%
5%
6%
4%
5%
3%
5%
4%
4%
Labour
0.077
0.031
0.019
0.013
0.024
0.262
0.082
0.077
0.182
8%
3%
2%
2%
3%
20%
10’%
9%
21%
Power
0.136
0.120
0.039
0.100
0.086
0.201
0.066
0.110
0.050
15%
10%
4%
13%
11%
16%
8%
12%
6%
Auxiliary material
0.069
0.071
0.090
0.090
0.089
0.120
0.082
0.102
0.060
8%
6%
9%
11%
11%
9%
10%
12%
7%
Capital (depreciation & interest)
0.176
0.134
0.135
0.155
0.112
0.230
0.123
0.142
0.167
19%
12%
13%
20%
14%
18%
15%
16%
20%
Raw material
0.426
0.739
0.652
0.393
0.438
0.430
0.432
0.409
0.363
46%
64%
66%
50%
56%
34%
52%
47%
42%
Total fabric costs
0.922
1.158
0.991
0.786
0.789
1.282
0.823
0.878
0.855
(72)
(90)
(77)
(61)
(62)
(100)
(64)
(68)
(67)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
27
Total Costs 2012: Woven Textured Yarn Fabric
Brazil
China
Egypt
India
Indonesia
Italy
Packing
0.011
0.009
0.011
0.008
0.010
0.016
0.011
0.012
0.013
2%
2%
2%
3%
2%
1%
2%
2%
2%
Labour
0.102
0.044
0.025
0.020
0.030
0.363
0.101
0.095
0.249
15%
8%
6%
4%
6%
33%
19%
15%
32%
Power
0.133
0.117
0.039
0.099
0.085
0.197
0.065
0.108
0.049
19%
22%
9%
20%
18%
18%
12%
17%
6%
Auxiliary material
0.036
0.034
0.034
0.034
0.034
0.043
0.036
0.034
0.039
5%
6%
8%
7%
7%
4%
7%
6%
5%
Capital (depreciation & interest)
0.206
0.160
0.158
0.183
0.138
0.276
0.141
0.171
0.199
30%
30%
35%
36%
29%
25%
27%
27%
26%
Raw material
0.204
0.169
0.185
0.161
0.187
0.211
0.175
0.204
0.228
29%
32%
41%
32%
38%
19%
33%
33%
29%
Total fabric costs
0.692
0.533
0.452
0.505
0.484
1.106
0.529
0.624
0.777
(63)
(48)
(41)
(46)
(44)
(100)
(48)
(56)
(70)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
Korea Turkey
USA
28
Total Costs 2012: Knitted Ring Yarn Fabric
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.066
0.113
0.100
0.061
0.069
0.068
0.068
0.063
0.057
8%
10%
10%
8%
9%
6%
9%
8%
7%
Labour
0.061
0.017
0.015
0.010
0.016
0.242
0.060
0.053
0.148
7%
2%
2%
1%
2%
21%
8%
7%
19%
Power
0.116
0.100
0.033
0.086
0.072
0.169
0.055
0.092
0.042
13%
9%
3%
12%
10%
15%
7%
12%
5%
Auxiliary material
0.041
0.038
0.042
0.038
0.038
0.049
0.040
0.038
0.042
5%
3%
4%
5%
5%
4%
5%
5%
5%
Capital (depreciation & interest)
0.174
0.132
0.150
0.158
0.114
0.205
0.135
0.139
0.157
20%
12%
16%
22%
16%
18%
17%
18%
20%
Raw material
0.407
0.696
0.619
0.377
0.427
0.419
0.421
0.392
0.357
47%
64%
65%
52%
58%
36%
54%
50%
44%
Total fabric costs
0.865
1.096
0.959
0.730
0.736
1.152
0.779
0.777
0.803
(75)
(95)
(83)
(63)
(64)
(100)
(68)
(67)
(70)
(USD per meter of fabric)
Index (Italy: 100)
Total Costs 2012: Knitted Rotor Yarn Fabric
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.046
0.080
0.071
0.043
0.047
0.047
0.047
0.044
0.040
5%
6%
6%
5%
5%
4%
5%
5%
5%
Labour
0.029
0.009
0.007
0.005
0.008
0.126
0.031
0.023
0.076
3%
1%
1%
1%
1%
11%
4%
3%
9%
Power
0.081
0.070
0.023
0.059
0.050
0.117
0.038
0.064
0.029
9%
5%
2%
7%
6%
11%
4%
7%
4%
Auxiliary material
0.045
0.042
0.049
0.043
0.042
0.055
0.045
0.043
0.046
5%
3%
4%
5%
5%
5%
5%
5%
5%
Capital (depreciation & interest)
0.118
0.088
0.108
0.106
0.075
0.147
0.093
0.092
0.106
13%
6%
9%
13%
9%
13%
11%
11%
13%
Raw material
0.614
1.067
0.942
0.567
0.633
0.620
0.624
0.591
0.525
65%
79%
78%
69%
74%
56%
71%
69%
64%
Total fabric costs
0.933
1.356
1.198
0.823
0.855
1.112
0.878
0.857
0.821
(84)
(122)
(108)
(74)
(77)
(100)
(79)
(77)
(74)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
29
Total Costs 2012: Knitted Textured Yarn Fabric
Brazil
China
Egypt
India
Indonesia
Italy
Korea
Turkey
USA
Waste
0.013
0.010
0.013
0.008
0.010
0.021
0.015
0.015
0.015
2%
2%
2%
2%
2%
2%
3%
3%
2%
Labour
0.036
0.013
0.008
0.009
0.010
0.158
0.060
0.039
0.093
6%
3%
2%
2%
2%
20%
11%
7%
14%
Power
0.039
0.034
0.011
0.031
0.025
0.057
0.020
0.031
0.014
7%
7%
2%
7%
5%
7%
4%
5%
2%
Auxiliary material
0.027
0.022
0.034
0.022
0.021
0.041
0.026
0.022
0.024
4%
5%
6%
5%
4%
5%
5%
4%
4%
Capital (depreciation & interest)
0.085
0.067
0.104
0.080
0.069
0.110
0.078
0.070
0.076
14%
14%
19%
17%
14%
14%
14%
12%
11%
Raw material
0.401
0.332
0.366
0.318
0.368
0.416
0.344
0.401
0.449
67%
69%
68%
67%
73%
52%
64%
69%
67%
Total fabric costs
0.601
0.478
0.536
0.468
0.503
0.803
0.543
0.578
0.671
(75)
(60)
(67)
(58)
(63)
(100)
(68)
(72)
(84)
(USD per meter of fabric)
Index (Italy: 100)
ITMF International Production Cost Comparison 2012
30
Annex
How to calculate company-specific depreciation and interest costs
The separate presentation in this study of depreciation and interest costs makes it
possible to calculate company-specific capital costs. Note that the share of machinery in
total depreciation in spinning varies from 85% - 95% in the different countries and that
for weaving from 80% - 90%, whereas the machinery part makes up more than 95% of
total depreciation in knitting. The remainder is for accessories and buildings.
Example: United States
Depreciation Costs (Machinery)
Weaving Ring Yarn
Share of machinery in total depreciation:
85%
Assumed depreciation period (see page 11):
7 years
Depreciation costs (machinery)
per meter/fabric (see page 19):
85% of USD 0.095 = USD 0.081
Company-specific depreciation period:
10 years
Company-specific depreciation costs (machinery) USD 0.081 x 7 / 10 = USD 0.057
per meter/fabric:
Interest Costs
Weaving Ring Yarn
Assumed interest rate (see page 11):
4.25%
Interest costs per meter/fabric (see page 19):
USD 0.021
Company-specific interest rate:
9.0%
Company-specific interest costs per meter/fabric: USD 0.021 x 9.0 / 4.25 = USD 0.0445
ITMF International Production Cost Comparison 2012
31