December 7, 2023

Germany Top Destination For FDI In Greenfield Textile Projects

According to a GlobalData report, Germany is the leading destination market for foreign direct investment (FDI) in greenfield textiles, while the US is the top source for FDI.

Between 2019 and 2022, the textiles sector was the eighteenth largest FDI sector in terms of the number of greenfield investments and the textiles sector accounts for 1 percent of global greenfield FDI projects.

“Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation,” GlobalData explained.

“Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition,” it added.

When combined, the top ten destination countries account for 57.4 percent of total textiles FDI projects. Along with Germany, the US, France and UK are also popular textiles investment hubs.

According to GlobalData’s FDI Projects database, Turkey based companies were the leading source of greenfield textiles investments into Germany.

US-based companies accounted for 14.8 percent share of total outbound textiles FDI projects, while Germany, UK, China and France are also top source markets for FDI in textiles.

Owner of several luxury and premium brands, LVMH is the highest FDI investor in greenfield textile projects in the reporting period followed by Zalando, Kering, Nike and Adidas.

LVMH’s top three destination countries by number of greenfield FDI projects were Italy, the US and Spain. Combined these three countries account for 100 percent of its total FDI in textiles.

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