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Viewing cable 06KINSHASA1308, AGOA: DRC'S TEXTILE AND APPAREL PRODUCTION CAPABILITIES

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Reference ID Created Released Classification Origin
06KINSHASA1308 2006-08-18 12:31 2011-08-25 00:00 UNCLASSIFIED Embassy Kinshasa
VZCZCXYZ0014
RR RUEHWEB

DE RUEHKI #1308/01 2301231
ZNR UUUUU ZZH
R 181231Z AUG 06
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 4625
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS KINSHASA 001308 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/EPS: THASTINGS 
 
E.O. 12958: N/A 
TAGS: EINV ETRD KTEX AGOA CG
 
SUBJECT: AGOA: DRC'S TEXTILE AND APPAREL PRODUCTION CAPABILITIES 
 
REF: SECSTATE 131825 
 
1. (U) Post submits the following in response to reftel request for 
information on textile and apparel production capabilities in the 
DRC. 
 
2. (U) The DRC's three primary textile facilities are Congo-Tex in 
Kinshasa, Sotexki in Kisangani, and Sintexkin in Lubumbashi.  In 
total, the DRC produces less than ten percent of the estimated 100 
million square meters of the cloth purchased in the DRC.  The DRC no 
longer produces adequate cotton to supply its factories' needs. 
Although the DRC is AGOA-eligible, it cannot export textiles and 
apparel into the U.S. under AGOA's duty-free and quota-free 
provisions. 
 
Congo-Tex 
--------- 
 
3. (U) Congo-Tex, previously known as UtexAfrica, now 55 percent 
Chinese-owned, is located in Kinshasa on a 45-hectare complex. Its 
annual gross sales are approximately USD 18 million.  It still has a 
fully integrated mill with its own farms, spinning-weaving-dying, 
printing and garment divisions.  It employs 1,154 direct-hires and 
contractors, 50 percent of whom work in apparel production, ten 
percent in textile production, and the rest in administrative and 
other support functions. The company produces 7 million meters of 
fabric per year. 
 
4. (U) Equipment includes: 20,160 wire stitching machines, of which 
only 30 are operational; two sizing machines and three weaver's 
machines for weaving-preparation; 35 Picanol President CM 188s, 12 
Picanol President MDCs and 253 Sulzers in the weaving section; and 
326 sewing machines in apparel production.  Congo-Tex uses 23 
different machines in its dyeing and printing departments. 
 
5. (U) Congo-Tex imports cotton from West Africa, including Nigeria. 
 The main products are still African prints for women, medical 
textiles, garments (protective wear, and military, police and school 
uniforms), and blankets.  The target market for African prints is 
the DRC, the Republic of Congo, Zimbabwe and Angola.  Low-end 
textiles are sold at between USD 7 and 10 per bolt while high-end 
products sell between USD 13 or 17. 
 
Sotexki 
------- 
 
6. (U) Sotexki is Congolese-owned and managed, with a large, 
well-maintained compound.  In the late 1980s, Sotexki had 2,550 
employees and produced 1.5 million linear meters of cloth. Today, 
the factory continues to operate 24 hours a day, but only has a 
staff of 270 and produces 80,000 to 100,000 linear meters of cotton 
cloth. The factory combs, spins, weaves, and dyes the cotton, and 
all designs are original. It does not produce apparel. Inadequate 
roads and power supply, heavy taxes and Chinese competition are the 
primary factors that limit production. 
 
7. (U) The factory recently acquired new machinery and keeps 
existing machinery well maintained. In its spinning department, 
Sotexki has three nine-ton working loom machines, one carding 
machine, a stitching bench, and 52 continuous spinners. In its 
pre-weaving department are four electronic auto-corners, eight 
winding machines, six spooler-wrapping frames, and two sizing 
machines.  There are 456 Picanol machines and 36 Sulzer Ruti 
machines in the weaving section.  In the printing department, 
Sotexki has one 30 meters per-minute shearer machine, a 
six-compartment bleaching machine, a Mercerizer, and other machines. 
 Electricity shortages, however, force the factory to operate at 
approximately 10 percent capacity. 
 
8. (U) Although some of the cotton is produced in the DRC, most is 
imported from other African countries, including Uganda. Sotexki 
uses gum Arabic, manioc starch paste, palm oil, and urea to produce 
the cloth, plus caustic soda in the printing process. Sotexki 
purchases these inputs from European and Asian countries, including 
India. Because the DRC lacks adequate roads, the raw materials have 
to be flown in, significantly raising production costs. 
 
9. (U) Sotexki targets producers of women's clothing, sheets, 
curtains, medical masks and uniforms, and diapers. Retailers, 
political parties, and religious groups also order bolts of dyed 
cotton fabric in bulk. Almost none of the cloth is exported. 
Sotexki's charges an average price of USD 8 for a six-yard bolt, 
retailed at about USD 9. However, Chinese textile producers, who are 
able to produce and sell textiles at lower prices, have copied many 
Sotexki designs. 
 
Syntexkin 
--------- 
 
10. (U) Post was unable to obtain updated information from 
Sintexkin, whose textile factory is still operational. 
 
Third-Country Fabric Provisions 
------------------------------- 
 
11. (U) Post did not receive a timely response from GDRC officials 
regarding third-country fabric provisions.  Given the DRC's 
inability to produce the cotton necessary to supply its own domestic 
textile industry, it will be essential for third-country provisions 
to be in place if and when the DRC obtains a textile visa.