SHANGHAI established a textile industry association yesterday to enhance competitiveness and boost innovation among the city's garment exporters, which has already attracted 15 leading companies as members.

The association, based in the city's Hongqiao area where textile traders are concentrated, plans to be a platform for companies to share experience, offer training courses, organize overseas exchanges and promote participation in international exhibitions.

Textile products have been an important part of the city's exports for a long time. Last year, the value of textile exports totaled US$15.2 billion, or one-tenth of Shanghai's overseas shipments.

But with the rising costs of manufacturing in Shanghai, many textile exporters chose to move out of the city to reduce costs.

"But Shanghai has strength in human resources and a good urban infrastructure that other cities can't compete," said Sha Hailin, chairman of the Shanghai Commission of Commerce.

He urged companies to improve innovation to survive in international markets, instead of merely reducing costs.

"We should grow from an original equipment manufacturer to own design and manufacturing and own branding and manufacturing," Sha said, referring to just from merely producing other companies' products under contracts, to design and make products for others, and finally to boast own brands.

Companies which have signed up as members included Shanghai Silk Group Co, Orient International Holding and Shanghai Knitwear Import and Export Co.