THE YUGOSLAV TEXTILE INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700120353-5
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 14
• Document Creation Date: December 22, 2016
• Document Release Date: September 14, 2011
• Sequence Number: 353
• Publication Date: July 30, 1953
• Content Type: REPORT

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The following report is based on an article in Informativni
prirucnik o Jugoslaviji, a handbook published in sections since
late 19 by the Yugoslav Directorate for Information
COUNTRY Yugoslavia
SUBJECT Economic - Textile industry
HOW
PUBLISHED Handbook
WHERE
PUBLISHED Belgrade
DATE
PUBLISHED 1952
LANGUAGE Croatian
?ro u.. a. *., un. coot. . .,.,..o. ,., ,i m, o, nvo
The textile industry was the best-developed industrial branch in prewar
Yugoslavia, Although it is not first in postwar Yugoslavia, it is among the
stronger branches of industry.
The development of the textile industry in Yugoslavia began chiefly in
the period after World War I. There was no textile industry in Montenegro and
Macedonia. The textile industry was better developed ih Slovenia, Croatia,
and the Vojvodina, where its establishment dated back to 1851.
After World War I, part of the textile industry, such as the wool industry
in Serbia, was developed mostly from German reparations, whereas the larger
part was developed chiefly through the import of second-hand and obsolete
machinery from Czechoslovakia and Poland. Foreign capital and foreign textile
experts entered the textile industry along with the machinery, while enterprises
in areas formerly belonging to Austria-Hungary already belonged to foreign
concerns and banks.
CLASSIFICATIOLL___RESTRICTED
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
DATE OF
INFORMATION 1918 - 1951
DATE DIST. 3o Jul 1953
NO. OF PAGES 14
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
The status of the textile industry of Yugoslavia in 1918, 1928, and 1938
was as follows:
Number of Factories
All industry
1,855
3,038
3,954
Textile industry
120
269
453
Including m
anufacture
of clothing 7
17
21
STATE
ARMY
NAVY
AIR
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Number of Job
1918
1928
1238
s
All industry
172,447
272,4oi
330,156
Textile industry
25,717
59,438
77,776
Including manufacture of clothing
1,682
2,800
3,093
Number of Jobs per Factory
All industry
92.96
89.66
83.5
Textile industry
214.21
220.96
171.69
Including manufacture of clothing
240.29
164.71
147.29
Total Invested Capital (1 000 dinars)
Textile industry
Including manufacture of clothing
Invested Capital b Factor
1 000 dinars
Textile industry
661,414 1,296,550 1,581,010
12,514 17,375 22,290
Including manufacture of clothing 1,787.7 1,022.1 1,061.4
This table shows that the number of textile factories increased by 277.5
percent, whereas the number of jobs increased by only 202.4 percent. The
number of jobs per factory decreased by 19.85 percent, whereas invested capital
decreased by 62.83 percent. The textile industry therefore was building
factories of smaller capacities, employing fewer people, and requiring less
invested capital.
The number of textile enterprises was constantly changing because new
enterprises were set up while others went out of business. The textile
industry was developed quite disproportionately, for the production of
finished products (yard goods, garments) was better developed than the
production of semifinished goods (yarn).
Conditions favoring the construction of factories for production of
finished textiles were as follows:
1. It was possible constantly to add new machines for supplementing or
expanding an enterprise, because anyone could have his material partly processed
or finished on a commission basis by the large factories.
2. Yarn did not have to be bought in large quantities and finished
products could be sold in small quantities.
3. Finished products were protected by a higher duty than yarn.
Spinning mills were not built for the following reasons:
1. The lack of raw materials in Yugoslavia.
2. The sale of yarn had to face stronger competition than the sale of
finished products, since yarns were not so well protected by duties, and the
operation of a spinning mill required greater business and technical skill.
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3. Domestic owners of small textile enterprises did not have enough
capital to construct spinning mills, which require complete buildings and
complete installations.
4. Direct or indirect owners of large textile enterprises were foreign
capitalists, who were not interested in making long-term investrents in spinning
mills because they were able to set up weaving mills wit:. small investments and
to use second-hand machines which could amortize quickly, c..i because they could
sell the yarn from spinning mills in other countries in which yarn production
was greater than the demand for it.
The number and type of plants in the textile industry were as follows:
1918
1928
1938
Hemp
22
29
80
Processing of hemp fiber and yarn
4
14
14
Flax processing
3
4
5
Silk reeling
4
4
4
Jute processing
-
3
7
Cotton spinning
5
8
19
Wool spinning
10
33
36
Cotton weaving
10
36
81
Wool weaving
6
24
48
Weaving of natural and artificial silk
-
10
36
Rug weaving
)+
7
7
Knitted garment and stocking
14
79
74
Trimmings manufacture
3
20
17
Sterile cotton and other material
used for medical purposes
-
8
8
Necktie production
-
10
10
Clothing manufacture
3
27
17
Hat and cap production
6
29
11
Horsehair knitted products
4
4
Production of umbrellas
3
6
-
In 1938, the value of textile production was 2,885,994 diners or 18.32
percent of the value of all industrial production. The textile industry was
first in number of persons employed and jobs, second in value of production,
third in invested capital, fourth in number of factories, and fifth in power
consumption.
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In 1938 a total of 54,000 persons were employed in the textile industry,
or 27.4 percent of the total employed in all industrial branches; 21.25
percent were skills.. and 73.62 percent semiskilled or unskilled blue-collar
workers. Foreigners constituted 2.21 percent of employees in the textile
industry and 32.24 percent of the technical personnel. Salaries and wages
were low because women and children mostly were employed.
Cartels were established which partly monopolized production and prices.
These cartels included the trousers material cartel, which had been established
in 1936; the stocking cartel, which included the five largest producers of
stockings and concentrated the sales of stockings in one organization; the
sized cotton cartel for tailors, which included four enterprises; and the rug
cartel. These cartels included 4.19 percent of textile factories, 8.47 percent
of invested textile capital, and 5.26 percent of the value of textile production.
THE TEXTILE INDUSTRY FROM 1941 To 1945
During World War II, many textile enterprises were damaged or destroyed,
The Germans dismantled entire factories and used the machines as scrap iron,
while the Hungarians and Bulgarians transferred whole factories to their
countries. Plants in areas occupied by the Italians or in the Independent
State of Croatia were damaged by sabotage and partisan warfare. The textile
industry, which was worth 42,200,000 dollars before the war, suffered damage
totalin,_ 23,400,000 dollars.
During the National Liberation War, textile plants in the liberated area
worked at limited capacity owing to lack of raw materials. These plants
operated mostly for the National Liberation Army.
THE TEXTILE INDUSTRY FROM 1945 TO 1951
After the liberation, nationalization of domestic and foreign-owned
textile enterprises made it possible to merge plants and to concentrate small
enterprises into larger and more profitable ones. Some factories were
liquidated and their machinery transferred to larger factories which hail
unused buildings.
During the reconstruction period, much spinning machinery was
installed; the reeling, spinning, and weaving facilities for the finishing
of natural silk at Novi Sad were again put in operation; and the flax and hemp
mills destroyed during tie war were .?estored.
Production in the textile industry from 1946 to 1951 compares as follows
with production in 1939.
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Cotton yarn (tons)
Cotton fabric (1,000 sq m)
Cotton thread (tons)
Woolen yarn (tons)
Woolen fabrics (1,000 sq m)
Linen fabrics (1,000 sq m)
Hemp fabrics (tons)
Jute fabrics (tons)
(1,000 sq m)
Stockings (millions of
pairs)
Cotton and Woolen clothing
(1,060 sq m)
Woven underwear (1,000 sq m)
Knitted underwear (tons)
1939 1946 1947 1948
14,710 13,220 19,980 21,200
23,000 21,400 27,700 28,606
104,400 77,434 144,ooo 161,480
127 261 381 528
6,000 6,741 10,750 13,032
18,600 15,700 21,800 26,037
2,100 2,100 1,300 2,165
2,100 2,100 2,800 4,044
3,457 2,113 4,066 6,992
1949
22,887
29,156
154,905
579
13,324
27,941
1,377
4
,
492
1950
1951
22,169
20,839
29,936
26,895
144,356
122,810
375
619.1
13,098
13,147
24,434
23,330
1,838
23,330
--
5,176 6,691
10,372
--
2,856
8,961
11,271
6,294
--
-
3,900
6,555
6,732
8,553
--
--
11,800
9,921
9,090
16,064
1,240
960
1,055
1,458.4
1,788
1,005
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Since raw materials in Yugoslavia remained insufficient to meet the dempands
of the textile industry and since the disproportion between spinning mills and
weaving -mills remained practically the same as in preceding years, the entire
production increase in the postwar period up to 1949 was based on tblvery heavy
import of textile raw materials, The constant increase in imports increapad the
foriign trade deficit, so that imports had to be-r6duced sad this caused cut-
backi in production after 1949.
The textile industry produced a number of items urgently needed by various
industrial branches, such as woolen felts apd filters for the paper printing,
chemical, and cement industries; industrial fabrics for the leather, electrical,
and rubber industries; and surgical yarn from natural silk.
Because of constant reorganizations of textile enterprises in the postwar
years there is no exact data on their number and trend of development. The num-
ber of spindles remained about the same; there were 260,000 spindles and 14,000
.weaving looms in 1938, 241,000-spindles and 10,000 weaving looms in 1945, and
260,500 spindles and 13,000 weaving looms in 1951. In 1938, there were 396 basins
for reeling 'silk cocoons; in 1950, there were 576, but 270 of these were not yet
installed.
Two cotton spinning mills in Zemun and Maribor, which were damaged during
the war, were put in operation; two plants for cottonizing hemp tow were re-
itored; installations with about 20,000 spindles for spinning corded cotton yarn
'were installed; new hemp and flax processing plants were constructed in Serbia,
Croatia, and Bosnia-Hercegovina; cotton ginning stations were set up 'in Macedonia,
Montenegro, Hercegovina, and Dalmatia; and factories were ^et up for the product'
tibn of fibers from broom corn. A 250-loom cotton-veaYing Sill Was installed.''
in A,jdovecina; 60 new basins for reeling natural silk were installed in Pancevo
and Titov Veles; ahd a new woolen yarn epinuing aL31 In Vetovo wjp pat in.pakfc jrt.ial
,par ation with 10,000 spindles and an annual output of stout 2,200 t6t0 Of d.
1r spinning mills are under construction in Bijelo Polje near Mostar (the
vii of Vrapcici); in Stip, Sinj, and Pristine, areas where there was no tex-
til industry. They will have a total of about 106,000 spindles with an annual
out ut of 7,895 tone of carded and 2, 803 tons of combed cotton yarn. Installa-
tions have been ordered from Great Britain; full operation is expected by tbd
end Of 1952.
eforetithe war, the textile industry purchased only one third of domestic
cotton fiber production; the rest was bought up by merchants and artisans.
Sinca.the end of the war, cotton fiber has been used in Yugoslavia exclusively
'f r;the production of yarn and cotton. Before World War II, cotton growing was
promoted by high purchase prices (20 to 26 diners per kilogram). Since tpe war,
cotton growing has been promoted by the plan and by the crop-purchase system.'
Te production of cotton fiber has been as follows:
Quantity (tons) Index (1938 =100)
1929 - 1930
1933 - 1934
1938 - 1939
STAT
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Quantity (tons)
Index (1938 = 100)
1946
- 1947
1,020
82
1947
- 1948
1,176
95
1948
- 1949
1,724
139
1949
- 1950
1,880
152
1950
- 1951
1,534
124
1951
- 1952
1,160
102
Cotton cultivation in Yugoslavia in advancing quite slowly, although
conditions are favorable for its expansion. Before World War II, cotton was
cultivated only in Macedonia. At present, Macedonia cultivates 75 percent,
Hercegovina 14 percent, and Montenegro 4.5 percent of the total cotton
cultivated. Cotton cultivation also is being tested in the Vojvodina.
Hemp Fiber
Hemp fiber is the only textile raw material which satisfies domestic
demand quantitatively and qualitatively; some hemp fiber is also exported.
Before the war, Yugoslavia was fourth in worla hemp production and second
in hemp export. After the war, hemp production decreased considerably because
of: (1) lack of fertilizers, insufficient application of modern agricultural
measures, and poor growing seasons; and (2) low price of hemp stalks.
Hemp fiber production for industrial and farm consumption has been as
follows:
Quantity (tons)
Index (1938 = 100)
1929
26,245
47
1933
27,863
50
1938
55,399
100
1946
13,400
24
1947
24,970
45
1948
47,900
86
1949
58,050
105
1950
21,950
43
1951
25,552
46
Flax is cultivated in Yugoslavia for fiber and seeds, but the quality is
not satisfactory so industry is forced to import better grades of long fiber
for quality yarn production. Both production and quality have decreased con-
siderably since the war, and the export of flax fiber has ceased completely.
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Flax fiber production for industrial and farm consumption has been as
follows:
quantity (tons)
Index (1938 = 100)
1929
9,314
72
1933
9,928
77
1938
12,917
100
1946
2,830
22
1947
1,080
8.4
1948
2,750
21
1949
3,130
24
1950
1,610
12.5
1951
2,020
16
Wool production does not meet the requirements of Yugoslav industry
quantitatively or qualitatively. Before the war, 50 to 55 percent of domestic
wool production was used for processing in the villages, 5 to 7 percent was
exported, and the rest was processed in domestic industry. After the war,
wool exports ceased almost completely, while processing in domestic industry
increased.
The number of sheep has increased as follows (the average yield of
unwashed wool is estimated at 1.3 to 1.4 kilograms per head having an
average yield of 55 percent of clean wool):
Total Number of sheep
Index (1938 = 100)
7,735,957
76
1933
8,600,418
1938
10,137,357
100
1945
7,045,700
69.4
1946
9,192,400
90.6
1947
9,970,000
98.3
1948
10,603,600
540
649
11
1949
,
,
613
041
10
1950
,
,
664
10
273
1951
,
,
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Sericulture
Sericulture has been declining. Because of unattractive prices, unsystem-
atic cultivation of mulberry trees, and the competition of synthetic fibers,
no special development is expected in the near future.
The production of silkworm cocoons has been as follows:
Quantity tons
Index (1938 = 100)
1929
1,256.7
236
1933
731.4
136
1938
530
100
1946*
1947*
1948
478
90
1949
534
101
1950
549
l04
1951
* No data available.
445
84
Cottonene
Cottonene is produced from hemp and flax tow, and fiber waste. However,
the quality is not satisfactory and the cottonization cost is too high.
Cottonene is used for the production of surgical cotton, cotton for blankets,
and in spinning vicuna yarn and pulled woolen yarn, but is not satisfactory
for the spinning of carded yarn. Cottonene production totals about 300 tons
a year.
Efforts have been made to develop new raw materials for the textile industry
as follows: Attempts have been made to cultivate wild broom in Istria and
Dalmatia. Fiber production from hops has been tested in the laboratory. Nettle
has been tested, but fiber has still not been produced from it. Fiber produc-
tion from reed has been tested.
The following textile materials were imported in prewar Yugoslavia:
Raw materials: cotton, wool (unwashed, washed, and processed), jute,
sisal, cellulose yarn of cotton and woolen types, animal hair, and various
types of waste.
Semifinished products: yarns, including cotton yarn (for fabrics and
knitting), woolen yarn (pulled and combed), vicuna yarn, linen, jute, hemp,
and natural and artificial silk yarn.
Finished products: all types of fabrics, ready-to-wear clothing, jute
sacks, felt, hats, and felt hat shapes.
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The quantity and value of textiles imported were as follows:
1931
1937
19339
1939
All textiles
Quantity (tons)
42,915
61,780
60,160
52,662
Value (1,000 dinars)
1,513,131
807,903
1,421,760
1,349,133
Cotton and cotton
products
Quantity (tons)
27,352
43,956
39,100
33,652
Value (1,000 dinars)
878,437
1,077,121
787,917
690,740
Wool and wool products
Quantity (tons)
5,696
6,765
7,598
6,982
Value (1,000 dinars)
377,501
505,711
429,384
415,169
Other vegetable fibers
and their products
Quantity (tons)
8,523
11,266
11,099
8,438
Value (1,000 dinars)
94,049
102,267
95,413
105,889
Silk and silk products
tuantity (tons)
1,344
2,793
2,363
3,590
Value (dinars)
163,144
122,304
109,046
137,335
Prewar Yugoslavia exported the following textile materials:
Raw materials: hemp and flax fiber, wool, animal hair, and silk waste.
Semifinished products: raw silk.
Finished products: various fabrics in very small quanitities.
The quantity and value of hemp and other vegetable fibers exported were
as follows:
Year
Quantity
(tons)
Value
(1,000 dinars)
1931
7,362
59,363
1932
6,390
31,407
1933
5,504
38,210
1934
8,337
73,159
1935
19,187
149,057
STAT
1. 1
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Year
Quantity
(tons)
Value
(1,000 dinars)
1936"
19,515
187,611
1937
24,322
205,559
1938
20,041
171,689
1939
22,386
232,653
Yugoslavia now imports the following textile materials:
Raw materials: cotton, wool, jute, sisal, animal hair, linen fiber,
and wool waste
Semifinished products: yarns such as cotton, woolen (combed), linen,
hemp, jute, and artificial silk
Finished products: fabrics of all types in limited quantities
The quantity and value of textile imports in 1950 were as follows:
Quantity
(kg)
Value
(1,000 dinars)
Total Yugoslav imports
Textiles
Textile raw materials
Waste
Semifinished products -- yarns
Finished.products
Fabrics
Ready-to-wear clothing
162,992,500
51,988,000
47,424,800
511,100
3,665,700
597,800
165,000
299,700
11,790,886
2,967,154
2,403,911
9,718
444,113
107,311
26,010
11,819
The categories of textile imports in 1950 were as follows
Quantity
(kg)
Value
(1,000 dinars)
Cotton and cotton products
37,053,900
1,758,128
Cotton fiber
31,489,400
1,360,015
Cotton yarn
2,149,800
223,540
Cotton fabrics
111,400
18,426
Other cotton products
329,700
62,380
Ready-to-wear clothing
1,400
371
Cellulose fiber of cotton type
2,972,200
93,396
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Wool and wool products
Wool fiber
Cellulose-fiber of wool type
Wool yarn
Wool fabrics
Other wool products
Ready-to-year wool clothing
Wool scraps
Other vegetable fibers and products
Fibers
Jute
Sisal, Manila hemp, coconut
Yarns
Linen yarn
Hemp yarn
Jute yarn
Linen fabrics
Other products
Jute sacks
Hemp and flax scraps
Silk and silk products
Artificial silk yarn
Natural silk fabrics
Other products
Various textiles
Various hairs
Coated industrial fabrics
Felt
Hats, felt hat shapes
Other products
11,417,200
1,010,093
8,362,100
810,827
2,170,800
91,800
402,800
95,192
8,100
2,634
100
169
2,200
203
471,100
9,268
2,648,900
66,003
1,901,400
34,240
1,307,000
22,398
594,400
11,842
400,100
21,424
15,000
4,798
30,000
2,446
355,100
14,180
400
138
17,900
586
289,100
9,165
40,000
450
732,000
111,526
713,000
103,957
1,800
2,175
17,200
5,394
136,000
21,4o4
17,800
3,915
43,300
2,637
67,900
12,772
--
13
7,000
2,C67
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Yugoslavia now exports the following textile materials:
Raw materials: hemp fiber, silk scraps, and small quantities of wool.
Semifinished products: none.
Finished products: felt hat shapes, rugs, and products of domestic
industry (especially Bosnian slippers).
Quantity
(kg)
Value
(1,000 dinars)
Total Yugoslav exports
3,082,133,000
7,929,967
Textiles
22,061,300
361,911
Textile raw, materials
22,010,700
341,895
Waste
151,900
10,465
Semifinished products -- yarns
Finished products
18,900
7,270
Fabrics
18,900
7,270
Ready-to-wear clothing
31,700
12,746
The categories of textile exports
in 1950 were as follows:
Wool and wool products
Wool fabrics and rugs
18,900
7,270
Other vegetable fibers and products
Hemp and tow fibers
21,854,800
331,393
Silk and silk products
Silk scraps
Miscellaneous textiles
35,700
12,783
Other hairs
4,000
37
Hats and felt hat shapes
20,000
6,362
Other products
11,700
6,384
The average number of, persons employed in the textile
follows:
industry was as
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12_?
2
White-collar workers
9,764
7,850
Blue-collar workers
75,956
71,472
Other personnel
8,179
6,oo8
Total
93,899
85,330
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