From the Sector

In a roundtable discussion during the recent Innovate Textiles & Apparel (ITA) textile machinery exhibition, imogo Founding Partner Per Stenflo and representatives from a number of like-minded European companies discussed the opportunities for new spray application technologies for the dyeing and finishing sector.

These technologies can achieve tremendous savings for manufacturers compared to traditional water-intensive processes it was explained at the event, held online from October 15-30th.

Pioneer
imogo – one of the latest companies to join TMAS, the Swedish Textile Machinery Association – is one of the key pioneers in this area with its Dye-Max system. Dye-Max spray dyeing technology can slash the use of fresh water, wastewater, energy and chemicals by as much as 90% compared to conventional jet dyeing systems. This is due to the extremely low liquor ratio of 0.3-0.8 litres per kilo of fabric and at the same time, considerably fewer auxiliary chemicals are required to start with.

Obstacles
Such technologies, however, face a number of obstacles to adoption and during the ITA discussion it was agreed that 2020 has not provided the ideal climate for adventurous investors. “The textile industry is quite conservative and is definitely in survival mode at the moment and it is not the time to be a visionary,” said Stenflo. “Day to day business is about staying alive – that’s the reality for many of our customers.” Nevertheless, all of the panellists agreed that sustainable production will remain top of the agenda for the textile industry in the longer term and spray technologies for dyeing and finishing processes will be a part of it.

“Any investment in something new is a risk of course, and we have to be able to explain and convince manufacturers that there’s a good return on investment, not only in respect of sustainability, but in terms of making good business sense,” said Stenflo. “Here we could use the help of the brands of course, in putting pressure on their suppliers to be more sustainable. Governments also have a role to play, in providing incentives for producers to move in the sustainable direction. Sustainability alone will never cut it, there has to be a business case, or it won’t happen.”

Marketing
The marketing of sustainable new fibers is comparatively easy for the brands compared to explaining the difficult textile processes and the chemistries involved in fabric and garment production, he added.

“These fibers, however, currently go through all the same dirty processes that we need to get away from, so it must happen,” he said. “In developing our technologies, it has been important for us to avoid disrupting existing supply chains, stick with using off-the-shelf chemistries and dyes, and involve the dye manufacturers who are an essential part in how operations are driven today. “In fact, collaboration across the entire textile supply chain – from the brands right back to the new technology developers – is essential in moving the sustainability agenda forward.

Business models
“We are also looking into new business models in terms of how to reduce or lower the thresholds for investment and minimise the risk for the manufacturers who are looking to be the innovators,” he concluded. Also taking part in the ITA roundtable discussion were Simon Kew (Alchemie Technology, UK), Christian Schumacher (StepChange Innovations, Germany) Tobias Schurr (Weko, Germany), Rainer Tüxen (RotaSpray, Germany) and Felmke Zijilstra (DyeCoo, Netherlands).

European innovations
“It’s fantastic that all of this innovation is taking place in Europe based on established know-how and forward thinking,” said TMAS Secretary General Therese Premler-Andersson.

“Spray application technologies are a perfect illustration of how new digital technologies can lead to more sustainable production, in this case by replacing water-intensive processes with the highly precise and controlled application of dyes and chemistries as vapour.
“There was a major project by the Swedish research organisation Mistra Future Fashion recently, involving many brand and academic institute partners. The project’s Fiber Bible 1 and 2 reports conclude that it’s very difficult to make assumptions that one fiber is better than another, because it’s so much about how fabrics and garments are being produced from them. The study also found that 55% of the chemicals used in a garment comes from the dyeing. This is where a number of TMAS companies can make a difference.
“An organic or recycled cotton t-shirt is not automatically more sustainable than a conventional cotton t-shirt, or even one made from synthetics – the alternative fibers are a good start but you have to consider the entire life cycle of a garment, and that includes the smart technologies in textiles production.
“TMAS members – backed by Swedish brands and advanced research institutes – are playing an active part in pushing forward new concepts that will work, and I have no doubt that digitalisation now goes hand in hand with sustainability for the textile industry’s future.”          

The U.S. International Trade Commission held a public hearing on September 23-24 as part of its investigation of conditions impacting U.S. industry sectors and supply chains in the production of medical goods related to the COVID-19 pandemic.

National Council of Textile Organizations (NCTO) President & CEO Kim Glas is testifying on panel 5.

“Amid the devastating challenges of responding to COVID-19, NCTO members have been at the forefront of deploying manufacturing resources to address the critical need for personal protective equipment (PPE),” Glas said in testimony prepared for delivery.  “Our members quickly mobilized, proactively retooling production lines and retraining workers to provide U.S.-made PPE to frontline medical workers.”

“Despite these heroic efforts to confront the ongoing crisis, the onshoring of a permanent PPE industry will only materialize if proper government policies are implemented to incentivize the long-term investment needed to sustain PPE production in the United States,” Glas said.

Glas’ testimony as prepared for delivery can be found here.

• Schleswig-Holstein Minister President visits Neumünster, Germany

Since the outbreak of the coronavirus pandemic, the worldwide demand for protective masks and apparel has resulted in a record number of new orders in the high double-digit millions of euros at the Oerlikon Nonwoven business unit of the Swiss Oerlikon Group. From the manufacturing site in Neumünster, Germany, the high-tech meltblown systems – with their patented ecuTE+ nonwovens electro-charging technology – are meanwhile be exported all over the world. For the very first time, a contract has now been signed with a business in Australia. Today, Schleswig-Holstein’s Minister President Daniel Günther was won over on site by the technology of a ‘global player’. Rainer Straub, Head of Oerlikon Nonwoven, was thrilled, stating: “The machines and systems for manufacturing manmade fiber and nonwovens solutions from Neumünster enjoy an outstanding reputation throughout the world. It is especially in this crisis that the technology from Schleswig-Holstein has proven itself to be absolutely world-class.”

In addition to a tour of the meltblown system and its assembly and production facilities, the visit by Minister President Daniel Günther had one purpose above all: the dialog between politicians and business. Rainer Straub, Head of Oerlikon Nonwoven, and Matthias Pilz, Head of Oerlikon Neumag, jointly expressed their thanks for the support that Oerlikon has repeatedly had the fortune to experience over the past months and years in Schleswig-Holstein and looked to the future full of hope. “As a result of our additional investment at the site here in Neumünster – be this in our new technology center that will be completed by the end of this year or in our new logistics center that is already operating – we, as one of the region’s largest employers, are continuing to move forward, supported by a State Government that is also focusing on both promoting industry and business and on advancing an efficient training and educational system, as innovation is only possible with outstanding engineers”, stated Matthias Pilz. And Rainer Straub directed his appeal specifically at the Minister President: “Treat education and training as a priority. Ultimately, they will secure the future of Schleswig-Holstein as a center of excellence and manufacturing!”

Five-million-euro digitalization program

Daniel Günther, the incumbent Minister President of Schleswig-Holstein since 2017, immediately responded, making reference to one of the Federal State’s current training initiatives: “The State Government is supporting higher education institutions and students in the present coronavirus crisis. With a five-million-euro digitalization program, we are investing on the long-term digitalization of our higher education institutions. With this, we are overall creating a future for young people, particularly also for those who could very well go on to invent the next generation of manmade fiber systems.” And the Minister President was just as impressed by the willingness and readiness with which Oerlikon has been providing high-level support since the beginning of the COVID-19 pandemic to master the present challenges as he was with the company’s meltblown technology itself. Rainer Straub explained: “When, at the beginning of the pandemic in February, demand for protective face masks increased rapidly, we at Oerlikon Nonwoven responded immediately. We ramped up all the available production capacities here in Neumünster in order to quickly manufacture nonwovens for producing face masks using our laboratory systems. As a result, we have been able to make a small, regional contribution to covering demand. In parallel, we have pulled out all the stops in order to systematically further expand our skills as machine and system builders so as to cater to the initially expected, and now also continuing, global demand for meltblown systems as quickly as possible.”

Leading meltblown technology

The Oerlikon Nonwoven meltblown technology – with which nonwovens for protective masks can also be manufactured, among other things – is recognized by the market as being the technically most efficient method for producing highly-separating filter media made from plastic fibers. The capacities for respiratory masks available in Europe to date are predominantly manufactured on Oerlikon Nonwoven systems. “Ever more manufacturers in the most diverse countries are hoping to become independent of imports. Therefore, what we are experiencing in Germany is also happening in both industrialized and emerging countries throughout the world”, commented Rainer Straub. In addition to China, Turkey, the United Kingdom, South Korea, Austria and numerous countries in both North and South America, Australia and not least Germany will for the first time also be among the countries to which Oerlikon Nonwoven will be delivering machines and equipment before the end of 2021.

• Since the end of March 2020, COVID-19 has led to very low demand in all Business Groups
• Comprehensive crisis management implemented
• Loss in the mid double-digit million range expected in the first half of 2020
• Plans to introduce short-time working to adjust capacity in Switzerland and Germany
• Strategy will continue to be implemented

Due to COVID-19, a large number of spinning mills have stopped production worldwide. Since the end of March 2020, this has led to low demand for spare parts and wear & tear parts and delays in testing programs during the development of new machines. Customers are postponing investment projects or unable to implement them due to restrictions imposed by national governments. This results in low demand for new machines.

Comprehensive crisis management
Rieter has implemented comprehensive crisis management. Priorities are being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide.
The order backlog of well in excess of CHF 500 million is being processed largely according to plan, despite the existing bottlenecks in the supply chains. Less than 5% of the orders in the order backlog have been canceled.
Rieter has already implemented measures to ensure liquidity and reduce costs. The company has good net liquidity and undrawn credit lines in the mid three-digit million range.
Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level.

Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level. The effects of COVID-19 will place an additional burden on the first half of 2020. Rieter therefore expects sales in the first half of 2020 to be less than CHF 300 million. Despite the countermeasures implemented at the net profit level, this will lead to a loss in the mid double-digit million range.

Plans to introduce short-time working to adjust capacity
Rieter plans to apply for short-time working for the areas with forecasted low capacity utilization at the locations in Switzerland and Germany. The application will be for 40% short-time working in the third quarter of 2020. Talks with staff representatives will begin next week.
As a sign of solidarity, Rieter’s Board of Directors, Group Executive Committee and the senior management will waive 10%-20% of their salaries temporarily.

Implementation of the strategy
In recent years, Rieter has consistently implemented the strategy based on innovation leadership, strengthening the business in components, spare parts and services and the adjustment of cost structures. The company intends to forge ahead with the implementation of the strategy in the coming months, thus strengthening its market position for the time after the COVID-19 pandemic.
The next information on the course of business is planned with the publication of the half-year results on July 16, 2020
 

 The PREMIUM GROUP in Berlin is cancelling its PREMIUM and SEEK trade shows for this summer season, as well as the FASHIONTECH conference – in collaboration with digital B2B marketplace, JOOR, there is still a guaranteed trading option.

Due to the coronavirus crisis, in April the dates of the PREMIUM GROUP’s events were provisionally moved from the original schedule of 31 June-2 July 2020 to 28 -30 July.  Now, the Federal and State governments have decided to cancel large-scale events with over 1,000 visitors until 31 August 2020.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today, voicing concern over the administration’s executive order instituting a non-reciprocal 90-day deferral on certain tariffs.
The temporary postponement of duties does not apply to products with antidumping or countervailing duties or those products subject to penalty duties under Section 232, 201 and 301.

“At a time when domestic textile producers and its workforce have mobilized to transform their production lines to manufacture the personal protective equipment (PPE) supplies for frontline healthcare and medical workers fighting the COVID-19 pandemic, the administration’s decision to defer duties for 90 days on the vast majority of products imported into the United States is counterproductive.
This move contradicts the administration’s top stated priority of rebuilding American manufacturing and buying American and could have severe negative implications for the entire U.S. textile industry, whose companies and workforce already are facing enormous economic hardship.
We support the need to temporarily eliminate barriers to the entry of emergency medical supplies and certain PPE inputs tied directly to the COVID-19 response. But make no mistake, the key drivers behind efforts to defer tariffs have nothing to do with facilitating access to PPE products or stopping the spread of COVID-19.
Our industry is being asked to do extraordinary things.  We are heeding that call, but we need help to ensure the supply chains we are creating overnight don’t evaporate tomorrow.  We need strong procurement policies and additional funding for our industries to ramp up and retool – not further measures that incentivize offshore production. We need to maximize the U.S. domestic production chain right now to every extent possible in helping fight COVID-19 and make the products American frontline workers desperately need.  

We need to provide immediate and substantial relief to our manufacturing sector and their workforce who are suffering enormously right now. It’s critical that we have a long-term U.S. government plan to ensure that we aren’t relying on offshore producers to make medically necessary, live-saving PPE.  We shouldn’t be providing handouts to reward the very companies that helped offshore these industries so many years ago.

Tariffs are one of the few mechanisms in place to help partially address the challenges U.S. manufacturers face in competing with imports from countries with exceptionally low wages, poor working conditions, and minimal environmental and safety standards.”, states the NCTO.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today in response to the administration’s plan to institute a 90-day deferral on MFN tariffs,  as reported by numerous press outlets.

The reported plan being pushed by the importing and retailing industries would defer certain tariffs, including those on finished apparel products. It is an ill-advised policy that will hurt the U.S. textile industry at the very time it is answering the call of the nation to produce medical supplies to battle the coronavirus pandemic. 

These unnecessary tariff concessions would benefit importers and retailers at the direct expense of manufacturers on the front lines of the COVID-19 response and send a demoralizing message.

Tariff deferrals would severely exacerbate ramifications for the U.S. economy, manufacturers and workers and open the floodgates for imports.

If the U.S. government makes tariff concessions during this crisis, it will be inviting a virtual tsunami of imports further devastating domestic manufacturing as it attempts to regain its footing.     

We urge the administration to abandon any moves to defer tariffs on finished products. It would only serve to allow importers to exploit the current crisis, while dealing a severe blow to U.S. manufacturing and its workers.  

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

• U.S. employment in the textile supply chain was 585,240 in 2019. 
• The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
• U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
• Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

Amid the rapid spread of COVID-19 around the world, DyStar’s global operations continue to adapt to the development of the situation and to mitigate potential risks or impacts across the business. While the trajectory is unknown, DyStar is guided by recommendations from the World Health Organization and the local government authorities, to proactively address situations that could possibly affect our people and customers. This is to ensure that we have effective plans and standard procedures to minimize the disruption of our global operations.

Business Continuity Plan (BCP)
As a globally operating company, each of our operating sites, manufacturing plants, offices have a Business Continuity Plan (BCP) in place to sustain our operations and the supply chains we serve. The BCP, owned by our Business Continuity Management Team, provides clear guidance for all local operations, such as Administration, Customer Services, Finance, Logistics Services, Sales and Technical Support as well as Procurement, to enable all functions to continue operating effectively to serve our customers, distributors and agents.

Emergency Response Plan (ERP)
DyStar’s manufacturing sites are also installed with an Emergency Response Procedure to cover all emergency circumstances, including the COVID-19 pandemic disease. The goal of the emergency response procedure is to mitigate the impact of such events on people and the environment, ensuring operational readiness of the site during an emergency.

As the world adjusts to the impact of the COVID-19 pandemic, DyStar will continue to monitor the situation very closely and will provide updates that adapt to the changing situation. We remain committed to provide our customers with excellent service and to work closely with all our partners throughout this difficult period.

Brown Wrote to President Outlining Critical Steps White House can Take Now to Address Shortage of Personal Protective Equipment

 U.S. Sen. Sherrod Brown (D-OH) hosted a news conference call to discuss his plan for addressing the shortage of personal protective equipment (PPE) needed by healthcare workers on the frontline of keeping Americans healthy and safe during the coronavirus pandemic.

This weekend, Brown wrote to President Trump outlining several steps the Administration should take immediately to address the shortage and ramp up manufacturing of these critical medical supplies.

In his plan and in his letter to the President, Brown lists nine steps the Administration could take immediately, including:

1. Designate a government official who can serve as a point person responsible for coordination the acquisition and development of PPE, medical devices, and other supplies necessary to fight the coronavirus pandemic. 
2. Establish a PPE and medical device assessment and database to monitor the supply and anticipated needs for PPE, ventilators, diagnostic test kits, and other needed medical supplies to respond to the coronavirus pandemic. 
3. Publish a list of PPE, medical device, and general medical supply needs to respond to the coronavirus pandemic. 
4. Establish a hotline capable of handling significant call capacity that will provide U.S. producers centralized information about the results of the national assessment and the current need for PPE, devices, and other health care supplies. 
5. Provide immediate funding to manufacturers to purchase equipment, retool machinery, hire additional workers, and cover any other expenses needed to increase production of PPE and necessary medical devices and supplies.
6. Streamline contract and certification procedures to ensure production and delivery of materials are not delayed due to paperwork constraints.
7. Provide critical protections for workers who are making PPE, medical devices, and necessary supplies to receive a waiver from any shelter-in-place requirements to allow workers to volunteer to go to work in these critical industries. 
8. Provide purchase guarantees and delivery assistance of product to the communities and health care facilities that need the products most. 
9. Support companies that have the capacity to sterilize reusable equipment to alleviate the existing PPE shortage. 

In his plan, Brown also pointed out important legislative actions that will help ramp up production of these critical supplies, including expanding the strategic national stockpile authority, substantially increasing Defense Production Act funding and strengthening domestic preferences.

Textile and nonwoven associations issued a joint statement today urging federal, state and local governments to deem textile and nonwoven manufacturing facilities as “essential” when drafting “Shelter in Place” orders in response to the COVID-19 crisis.

Our associations recognize the serious challenges our elected officials, health administrators, and others are facing when issuing orders to protect communities across the country and we understand the necessity for leaders to enforce a ‘Shelter in Place” order or quarantine orders.

Our members make a broad range of inputs and finished products used in an array of personal protective equipment (PPE) and medical nonwoven/textile supplies, including surgical gowns, face masks, antibacterial wipes, lab coats, blood pressure cuffs, cotton swabs and hazmat suits. These items are vital to the government’s effort to ramp up emergency production of these critical supplies.

If workers who produce these goods are not granted an “essential” exemption from “Shelter in Place” and other quarantine orders to go to their manufacturing and distribution facilities, it will cause major disruptions in the availability of these goods. This will create significant hardship to healthcare providers and consumers across the country who depend on steady and stable supplies of these critical items.

We are asking the administration and state and local authorities to provide greater certainty and clarity for our companies and employees and ask for a clear exclusion of our manufacturing operations from “Shelter in Place” orders as the textile and nonwoven products that we make in the U.S. play an essential role in mitigating the shortages of critical supplies. Such a designation will help us avoid disruptions of vital goods and services during this challenging time.