The textile dyes producer, Dystar, has posted profits of Eur20 million ($22.9 million) for 2002, despite the global market for textile dyes contracting during the year.

The German company says that during 2002, the textile industry was adversely affected by the continued shift of production to countries where labour costs are lower. Unfavourable exchange rate movements, with key currencies weakening against the euro also affected the industry, Dystar says.

Although the firm raised its volumes of dyes sold during 2002, sales declined to Eur912 million ($1 billion), which is a year-on-year decline of 6% in local currencies and 10% in euros.

The group’s major Asian growth markets were China and Pakistan, while Japan raised its share of total sales 2% to 35%. Dystar attributes the strengthening of the Japanese market to its acquisition of the textile dyes company, Mitsui BASF Dyes Ltd (MBD) and a production site in Omuta. The firm’s European sales accounted for 35% of the total and the Americas, meanwhile, accounted for 22% of the share (-2%).

Looking forward to 2003, the firm says it plans to open a second office in Shanghai, China and a new trading company. It also plans to expand into emerging textiles markets, such as India, Vietnam and Pakistan.

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