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S&T Country Report - Albania - WBC-INCO Net

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Name of<br />

initiative:<br />

Apparel Cluster (AC)<br />

Contact: Not available<br />

Email: Not available<br />

Website: http://www.mca.org.mk/index_en.htm<br />

The Apparel Cluster (AC) is focusing on pulling out of the CMT (Cut, Make&Trim)<br />

System of operation by improving the flexibility of their own production, restoring the<br />

local production of fabrics, developing Macedonian proprietary designs and brands,<br />

and attracting foreign direct investments. Apparel Cluster’s members are working<br />

together to build a competitive advantage for the industry based on improving its<br />

manufacturing capability (i.e. moving from CM to CMT and “Full Package” and “owndesign”<br />

exports), increasing the flexibility of its manufacturing capability, creating<br />

proprietary designs, and developing strong Macedonian brands to allow Macedonian<br />

apparel to compete and win against lower cost competitors from Asia.<br />

The Apparel Cluster Leadership Council (CLC) made the first step toward Cluster<br />

sustainability with the merger of the Textile Trade Association (TTA) and the Apparel<br />

Cluster (AC). Discussion of the Cluster’s sustainability began at the CLC’s instigation,<br />

not MCA’s. In December 2005, some 120 industry representatives attended a<br />

meeting, where the Apparel CLC announced the merger and presented a 2006 work<br />

plan. The new organization aims to establish itself as a self-sustainable and<br />

professional trade association for the industry, with annual membership fees (100 €<br />

per year per member).<br />

Many of the cluster activities have already contributed to the industry and TTA-AC<br />

self-sustainability. Thus, through the National Entrepreneurship & Competitiveness<br />

Council, the cluster successfully lobbied to have a customs law changed that taxed<br />

imported inputs used for exported finished goods. Cluster members took part in<br />

seminars to learn how the new law would affect them and worked with Customs<br />

officials on a pilot to test the new system that would be in place in 2006.<br />

Industry/Sector (technology area): Textile industry<br />

International activities: MCA connected the Cluster with CBI, the Dutch Agency for<br />

Promotion of Imports from developing countries.<br />

As stated in the ‘<strong>Report</strong> on the implementation of the programme for promotion of<br />

entrepreneurship and competitiveness in the small business sector of the Republic of<br />

Macedonia’ (2006), the Agency for Promotion of Entrepreneurship of the Republic of<br />

Macedonia (APERM), made initial analysis with domestic and foreign experts to<br />

investigate the possibilities for establishment of the Agro-Cluster and the Cluster<br />

for Construction Materials and Equipment. According to the studies done, the<br />

definitive establishment and operation of the Agro-Cluster is more realistic than the<br />

cluster for construction materials and equipment.<br />

page 17/MKD

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