ACIMIT Reports Lower 2005 Machinery Production

Italian textile machinery
manufacturers registered declines in production for the fourth year running, according to a report
of 2005 manufacturing activity from the Milan-based Association of Italian Textile Machinery
Manufacturers (ACIMIT).

Total production turnover for the year declined to 2.5 billion euros, of which 79 percent,
or roughly 2 billion euros, represented exports to other countries. ACIMIT noted that even though
the proportion of exports was 3 percent higher than in 2004, the total euro value was lower. The
association attributed the downturn to stagnation in the Italian market; an easing in the Turkish
market — which, at 232 million euros, is Italy’s second-largest market; continuing declines in
France, Germany and Spain; and lower orders from Bangladesh, Iran, Pakistan and Syria.

At the same time, the Indian market grew by 30 percent to 129 million euros in 2005, and
exports to China recovered to a total of 316 million euros — the largest market for Italian textile
machinery. Sales to the United States, worth 82 million euros in 2005, also grew.

In all, Asia represented 42 percent of the total market for Italian machinery, and Europe
accounted for 40 percent of sales. Trailing those regions were Latin America, 7 percent; North
America, 6 percent; and Africa, 5 percent.

By machinery sector, spinning garnered 26 percent of sales; finishing, 24 percent; weaving,
21 percent; knitting, 20 percent; and laundry and other, 9 percent.

July/August 2006