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Automotive industry puts the squeeze on makers of technical textiles

INCREASED PURCHASING POWER for original equipment manufacturers (OEMs), stemming from consolidation within the automotive industry, has combined with stringent cost-cutting measures to cause problems for Europe's technical textile producers.

According to the latest study by market consultants Frost & Sullivan, fibre manufacturers have had to cut prices and operate at reduced margins to remain competitive.

The study - focusing on the European market for technical textiles used in airbags, seat belts, carpets, seat upholstery and tyres - forecasts a compound annual growth rate of 1.6% from 2001-2008 and predicts that the market will be worth US$1.18 billion by the end of this period.

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