German trading group Arcandor announces relocation of part of Chinese textile production

According to the German Economic Weekly, Europe’s largest department store mail order group, Germany’s Arcandor Trading Group (formerly known as Karstadt Quelle), announced that in view of the rising production costs in China and the possibility that Chinese textiles will face EU anti-dumping charges, the group has formulated a new strategic plan , no longer expands textile production in China, and plans to transfer part of production to India, Vietnam, Pakistan, Bangladesh, Cambodia and other countries. Helmut Merkel, a member of the group’s board of directors, told Economic Weekly: “We will carefully study the production costs, infrastructure, and regulatory policies of the above-mentioned countries. India has large production capacity. 20% of our imports come from India, but India’s infrastructure is relatively small.” difference, so large-scale production and import shifts from China are unlikely to occur in the short term. The group’s global annual procurement volume is 6 billion euros, 50% of which comes from China. China’s exports at the lowest prices have made the era of global price stability gone. However, the upward trend in China’s production costs is irreversible.”