From the Sector

A focus on customer service, aligned with the drive to constantly innovate, has long ensured that the member companies of TMAS – the Swedish texile machinery manufacturers’ association – stay well ahead of the curve.

“All of the Swedish textile machinery companies are doing really well in major markets such as Europe, China, India and the USA,” says TMAS Secretary General Therese Premler-Andersson. “They are now gathering forces to prepare for the most important show – ITMA 2019 in Barcelona in June. I expect to see new players and partnerships as we enter the industry 4.0 era for real. We are ready to display an even higher degree of the real time monitoring of processes, automation, flexible customisation, and the incorporation of robots into production lines.  Our customers expect a lot of in terms of knowledge and our ability to customise and offer turnkey solutions.”

The forward-looking attitude of the Swedish companies is perhaps best summed up by Reimar Westerlind, the owner, since 1961, of ACG Gruppen.
At the age of 90, Reimar still travels to his office every day to oversee the operations of the diverse companies operating under the ACG umbrella.
“Everything now is about automation and digitisation,” he says. “We have to be on that track or we will be lost – innovate or die.”

Robotics
One ACG Gruppen company moving rapidly forward with new innovations in this area is ACG Kinna, which at ITMA 2019 will be providing dramatic live demonstrations of its new robotic pillow filling system.
This has the ability to fill and finish some 3,840 pillows per eight-hour shift, which is a considerable improvement on what is currently possible with existing systems, resulting in significant savings in both labour and energy for busy home textile businesses.

At ITMA 2019, Eton will be demonstrating a complete material handling solution with advanced software providing real-time information covering every aspect of the process.
“Our systems are a natural fit with the major Industry 4.0 networked manufacturing plants that are now being constructed worldwide for sectors such as the garment and home textiles manufacturing and automotive industries,” says Eton’s Sales and Commercial Director Roger Ryrlén.

Sensors
Advanced senor developments are playing a large part in moving many areas of the textile industry forward too.
Eltex of Sweden, for example, is achieving considerable success with its yarn fault detection and tension monitoring systems across a range of sectors, including the tufting of carpets, the creeling of woven materials and even the production of woven reinforcements for the composites industry.

At successive ITMA shows, IRO AB has also consistently introduced new milestones in the field of yarn feeding technology for weaving machines, and ITMA 2019 will be no exception.
“Following significant investment in our R&D capabilities, we have been making great progress in further boosting the efficiency and performance of our expanding X3 range,” says IRO AB Managing Director and Chairman of TMAS Mikael Äremann. “I can’t remember a time since the 1980s when we had so many new innovations to unveil at an ITMA, and I’m greatly looking forward to the positive response to them we are anticipating in Barcelona this June.”

Resource savings
ITMA 2019 will meanwhile see the launch of TexCoat G4 – the next generation of Baldwin Technology’s non-contact precision application system for fabric finishing. The TexCoat G4 enables a continuously high-quality and productive textile finishing process with zero chemistry waste and minimised water and energy consumption.
The non-contact spray technology brings a range of advantages including single or double-sided application,  the elimination of Foulard bath contamination, low wet pick-up levels leading to the elimination of drying steps, zero chemistry waste in changeovers of chemistry, colour or fabric, and the possibility of batch reporting, visibility of pad loading, chemical usage etc.

Other TMAS companies exhibiting in Barcelona include Texo AB, whose wide-width weaving looms make the belts for machines on which half of the world’s paper is made, ES-Automatex, which specialises in bespoke automation concepts and Svegea, a company leading the field in a number colarette machines and cutting and slitting equipment.

“At the last ITMA in 2015 in Milan, there was much talk about Industry 4.0 technologies but certainly from the perspective of TMAS, ITMA 2019 will be the place for concrete solutions as to how data and the new tools we have available can be exploited to the full,” says Therese Premler-Andersson. “There is already much more networking between the companies, with software very much the enabler and common interfaces bringing ideas closer together. We are greatly looking forward to further exchanges of ideas when meeting with customers old and new in Barcelona.”

At the 128th Annual General Meeting of Rieter Holding Ltd. on April 4, 2019, 502 shareholders, who represent 63.8% of the share capital, participated. A dividend of CHF 5.00 per share was agreed. The shareholders approved the proposed maximum total amounts of the remuneration of the members of the Board of Directors and of the Group Executive Committee for the fiscal year 2020.

The Chairman of the Board of Directors, Bernhard Jucker, and the members of the Board of Directors This E. Schneider, Michael Pieper, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for an additional oneyear term of office.

Furthermore, This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also re-elected for a one-year term of office.

Shareholders also adopted all other motions proposed by the Board of Directors, namely approval of the annual report, the financial statements and the consolidated financial statements for 2018, and formal approval of the actions of the members of the Board of Directors and those of the Group Executive Committee in the year under review.

The National Council of Textile Organizations (NCTO) held its 16th Annual Meeting March 19-21 in Washington, DC.  Elected as NCTO officers for 2019 are:

• Chairman – Leib Oehmig, CEO of Glen Raven, Inc.
• Mr. Oehmig is CEO of Glen Raven, Inc., based in Glen Raven, North Carolina.  Glen Raven is an innovative leader in textile research and development, dying, spinning, weaving and finishing, and distribution and logistics.
• Vice Chairman – David Roberts, CEO of CAP Yarns, Inc.
• Mr. Roberts is CEO of CAP Yarns, Inc., based in Clover, South Carolina.  CAP Yarns is a specialty yarn manufacturer and a leader in developing unique yarns for the knitting and weaving industry.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.  

• U.S. employment in the textile supply chain was 594,147 in 2018.  
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.  
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.  
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

• Lectra provides fashion companies with breakthrough solution that enables them to personalize at ready-to-wear production speed

Paris – Lectra launches its ‘Fashion On Demand’ offer, empowering industry players to uncover new business opportunities brought about by the strong demand for personalization in the fashion industry. Lectra is enabling its customers to produce on demand for the first time ever with an end-to-end offer that automates the entire personalization process from product development to final cutting stages. ‘Fashion On Demand by Lectra’, based on Industry 4.0 principles, is a fruition of four years of R&D with a hundred-strong team of experts, as part of Lectra’s strategic roadmap announced in 2017. There will be a progressive global rollout starting from January 2019.

The digital revolution has prompted consumers to demand personalized products and experiences nowadays. This is an advantageous business model for fashion companies, as it allows them to accurately match supply with demand, and solve a host of problems that regular business models usually face. By simply knowing ahead of time what and how much their consumers want, companies can produce in precise quantities and avoid overstocking and markdowns. In addition, as consumers pay upfront for their orders it improves cash flow for businesses. Fashion companies can use personalization as a way to outshine their competitors and earn consumer loyalty, by offering one-of-a-kind products that make their customers feel exclusive.

While on-demand production is an attractive business model that presents little financial risk, today, fashion companies are encountering huge barriers to entry for this market. Without the savoir-faire and appropriate technology, many companies have to rely on their standard supply-chain infrastructure that lacks the flexibility to create and produce these products. As a result, they have to develop independent workflows for each product, incurring additional production costs, prolonging lead times and even jeopardizing their existing production lines. By having longer delivery times, they face the risk of upsetting their loyal customers who have paid premium prices for their personalized products.

‘Fashion On Demand by Lectra’, is a game changer for the industry. Drawing from 45 years’ experience of working with international retailers, manufacturers and brands, Lectra developed this offer to break down these barriers and empower fashion companies to meet the specific needs of their digitally savvy clientele with best-in-class solutions. ‘Fashion On Demand by Lectra’, available in the form of two packages, one dedicated to made to measure, and the other to customization, is a turnkey solution that automates on-demand production right from order reception to production development stages and the cutting room. Companies can define the product customization criteria and range for each item depending on the package (such as altering product characteristics for customization and pattern adjustments for made to measure) and launch production processes right from the get-go, without interfering with their standard workflows.

Empowering customers through industrial intelligence 2/2

“Personalization, or rather, on-demand production, is going to be an industry-wide phenomenon. It is hence Lectra’s duty, as an Industry 4.0 pioneer, to think ahead of time, and spearhead this movement. Keeping our customers’ best interests in mind, we’ve worked with renowned personalization specialists from different countries to develop this solution. With ‘Fashion On Demand by Lectra’ we’re doing the unthinkable. For the first time in the fashion industry, there will be a comprehensive personalization solution that will be able to perform under the same market conditions as the ready-to-wear segment and produce the same, if not better, results,” says Daniel Harari, Chairman and Chief Executive Officer, Lectra.

This disruptive offer gives fashion companies a 360°-view of the entire personalization process, providing them with the visibility to streamline multiple production processes and manage complex individual demands from custom order to cut piece. Thanks to the supply-chain flexibility that companies gain with this innovative Lectra solution, they will be able to expand their product range and offer more variety, be it womenswear, menswear or childrenswear, and appeal to a broader audience and jump on trends without interrupting their existing production processes. They will not have to waste time on consolidating and communicating information from one production stage to another. This ensures smooth process flows and hence, quick delivery times that can compete with those of standard products.

TRSA recently held its Annual Membership Meeting for the nomination, election and swearing-in of new Officers and Directors.
Jim Buik, president of the Roscoe Co. in Chicago is TRSA’s new chairman. Buik served as vice chairman of TRSA in 2017-2018. The Roscoe Company is Chicago’s leading independent uniform service company.

Jim has been active in linen, uniform and facility services associations. He’s a graduate of TRSA’s Executive Management Institute (EMI). He served on various committees, task forces and boards and was chairman of UTSA, which blended with TRSA, from 2003 to 2005. He has been a pioneer of industry technologies and best practices. Through association programs he has shared Roscoe’s experience in developing these innovations, including marketing automation, wastewater treatment and employee skill certification.

Additional officers and directors sworn in at the meeting:
•    Noel Richardson, Officer-Vice Chair, Shasta Linen Supply, Sacramento, CA
•    Jim Kearns, Officer-Treasurer, Alsco Inc., Salt Lake City
•    Bob Dudley, Director, APPEARA, Norfolk, NE
•    Scott Finkelstein, Director, Ace Uniform Services Inc., Baltimore
•    Dan Sanchez, Director, Medline Industries Inc., Mundelein, IL

In addition, Directors Randy Bartsch, Ecotex Healthcare Linen Service and P.J. Dempsey, Dempsey Uniform & Linen Supply were re-elected for second terms and will be officers serving on the TRSA Executive Committee.

Peter D. Dornier, member of the Executive Board of the VDMA Textile Machinery Federation and Chairman of the Walter Reiners Foundation for the Promotion of Young Engineers, honours five young talents. Numerous entrepreneurs and managers from the German textile machinery industry took part in the award ceremony at the Digital Capability Center (DCC) in Aachen, Germany.

The prizewinner in the dissertation category, Dr.- Ing. Benjamin Weise, comes from the Institute of Textile Technology at RWTH Aachen University (ITA). He has dealt with a complex production process for the manufacture of modified multifilament yarns, which offers new perspectives for the development and manufacture of textile charge carriers.

M.Sc. Susanne Fischer, winner of the Master's thesis category, has systematically and comprehensively solved the challenging task of integrating motion sensors into a finger glove at Reutlingen University.
The 2018 creativity award winners are team Mr. Jan Merlin Abram and Mr. Alon Tal from ITA Aachen as well as Mr. Eric Otto from the Institute for Textile Machinery and High-Performance Textile Materials Technology (ITM) in Dresden. The students Abram and Tal have developed a guideline for the design of hybrid morphing textiles. In addition to the classic functions in conventional and, in particular, composite applications, locally defined, functionally effective joint, torsion, expansion and compression mechanisms can be integrated into the textile.

The prizewinner Otto is awarded for a concept study for the development of a circular knitting machine with a variable diameter needle cylinder, which can lead to further flexibility in the circular knitting process.

• Market success above expectations
• Product and market development accelerated
• Investment up to EUR 30 mn

Lenzing – The Lenzing Group is setting another milestone as a specialist for extremely high-quality products made of the renewable raw material wood. Capacities will be significantly expanded due to strong demand for Lenzing’s TENCELTM Luxe filament yarn which was first launched on the market just a few months ago. Lenzing will invest up to EUR 30 mn in a further pilot line at the Lenzing site. Basic engineering for construction of the new facility has already been initiated.

“Thanks to TENCELTM Luxe, Lenzing is currently positioning itself in the premium luxury market and is embedding the issue of sustainability there in combination with superior aesthetics”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group. “The fine filament yarn is comparable to natural silk due to its airy feeling on the skin and the matte finish. It is perfectly suited for very fine fabrics made exclusively from this yarn and as a blending partner with silk, cashmere and wool”, he adds.

“On the occasion of the launch of TENCELTM Luxe filaments, the luxury brands already realized what opportunities they would have by using this yarn made of the renewable raw material wood. For this reason, demand is already so high that we have decided to take an intermediate step to expand capacities before building a large commercial production plant. The decision to construct a new line will serve as the basis for generating a three-fold increase in capacity compared to the previous volume. The additional capacity will be available to customers at the end of next year”, states Stefan Doboczky, Chief Executive Officer and Chairman of the Management Board of the Lenzing Group. “The Lenzing site was selected because research and technological know-how in plant construction are connected in a special way, which will in turn enable us to further develop this special product”, Doboczky adds.

The new capacities will enable Lenzing to more effectively fulfil the needs of customers for TENCELTM Luxe filament yarn than in the past. At the same time, Lenzing will press ahead with technical planning for a large-scale commercial line at the Lenzing site.

This strong level of demand is further evidence of the Lenzing Group’s innovative strength. The yarn is opening up new markets for the company in the eco-couture segment, thus contributing to the successful implementation of the sCore TEN strategy.

• Product development and production teams are on cloud nine, thanks to Lectra’s all-new Quick Estimate and Quick Nest apps

Paris – Lectra, the technological partner for companies using fabrics and leather releases its first of a series of cloud-based applications conceptualized for product development and production teams. Quick Estimate and Quick Nest will be launched in France and Italy and will then become available progressively in other countries.

As part of Lectra’s Industry 4.0 strategy, Lectra collaborated with its leading, digitally-attuned customers to develop apps that empower decision-makers to respond in an instant. Quick Estimate revs up product development efficiency and is instrumental to managing costs. Quick Nest provides easy access to automatic marker making and capitalizes on cloud technology to handle heavy volumes of calculations in parallel, maximizing productivity and marker efficiency.

Leveraging the industrial Internet of Things, lean development principles and cloud-based computing, Lectra aims to provide anytime, anywhere access to business enhancing applications. Gone are the days of limited storage space and slow calculation speed. These well-packaged, light cloud applications will redefine the way fashion customers store and process data.

Fabric often accounts for as much as 60% to 70% of the cost of a garment. Quick Estimate allows product development teams to calculate fabric requirements instantly from their Modaris®—Lectra’s 2D/3D patternmaking and grading solution—working environment with direct access to the cloud applications. Pattern developers now have the flexibility to make pattern adjustments more quickly to optimize costs, while protecting the brand’s quality and assuring speed-to-market.

Quick Nest can be accessed through Diamino®, Lectra’s marker-making solution. During the production development stages, Quick Nest users will be able to process more detailed markers faster. Quick Nest can also be used by production teams to treat lists of markers automatically in record time via the cloud.

These apps will also ensure enterprise-wide transparency as management teams gain full visibility of consumption needs for all products in development and production, thanks to viewable access of consolidated data for approval and reporting purposes.

“The end-goal of our new strategy is clear: we want to put our customers at the core of our business. We want them to thrive in this new digital era. Our latest Industry 4.0-friendly apps will serve as growth catalysts for their businesses by enabling them to make sound decisions based on real-time information,” explains Daniel Harari, Chairman and Chief Executive Officer, Lectra. “And this is just the beginning. More innovative apps are yet to come.”

By combining the Lectra and Kubix Lab offers, Lectra will equip fashion customers with a revolutionary platform for managing product information.

Lectra, the technological partner for companies using fabrics and leather, announces the signing of a share purchase agreement to acquire the entire capital and voting rights of the Italian company Kubix Lab.

Founded at the end of 2015, Kubix Lab has developed a cutting-edge technological offer called Link. This offer enables fashion brands to manage, from end-to-end, all product information deriving notably from multiple IT systems (ERP, PDM, PLM…), within one single application. Users can modify, enrich or add new data, while maintaining data synchronization with all IT systems. In just a few months, Link has convinced over ten high-end Italian brands of its value.

“We were particularly impressed by the relevance of the solution created by Kubix Lab,” underlines Daniel Harari, Chairman and Chief Executive Officer, Lectra. “By capitalizing on their knowledge of best practice, the founders of Kubix Lab knew how to develop an offer perfectly adapted to the expectations of fashion companies. Link enables all players involved in product development, manufacturing and sales to collaborate in real time, in a simple and efficient way, around exactly the same data.”

“We are delighted to join Lectra. We are convinced its leadership, global presence, strong expertise in the fashion industry and the richness of its product portfolio will enable us to develop an integrated offer with high value for all Lectra customers,” states Giampaolo Urbani, Chief Executive Officer and co-founder of Kubix Lab.

The founders of Kubix Lab will be in charge of developing an integrated Lectra – Link offer, which will complement - and reinforce - Lectra’s entire offer.

“Product data is at the heart of Link. We took an approach diametrically opposed to existing solutions on the market and designed an offer which is highly innovative, flexible, evolutionary and easy to use,” explains Pierluigi Beato, R&D director and co-founder of Kubix Lab. “With Lectra, we will take Link to the next level.”

The transaction involves the entire acquisition of Kubix Lab for the maximum amount of €7 million: €3 million paid when the acquisition agreement is signed; €1.3 million and €2.7 million paid respectively in 18 and 36 months’ time, providing objectives are met.

Final completion of the acquisition should take place by January 31, 2018.

These amounts will come from Lectra’s available cash, with no financing from the bank. Kubix Lab will be consolidated into Lectra’s accounts, effective from the signature of the final agreement.

Beijing - Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017.

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.   

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.” 

About JD.com, Inc.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017, JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

About Tencent Holdings Limited

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China. Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth. Tencent invests heavily in people and innovation, enabling us to evolve with the Internet. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, statements regarding the expected closing of the transactions and the quotations from management in this announcement are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to, those included in JD.com’s and Vipshop’s filings with the SEC and in Tencent’s filings with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and none of Tencent, JD.com or Vipshop undertake any duty to update such information, except as required under applicable law.