From the Sector

Glen Raven hosted United States Trade Representative (USTR) Ambassador Katherine Tai in an important visit to the company’s yarn spinning manufacturing facility and headquarters for its Sunbrella® flagship brand in Burlington, N.C. followed by an industry supply chain roundtable.

Ambassador Tai’s visit coincides with USTR’s Federal Register notice for public input to inform the administration’s development of trade and investment policy initiatives related to a domestic supply chain resilience plan.

USTR has highlighted domestic textiles as a critical part of the supply chain. The textile sector, which includes yarns, fabrics, apparel and other finished goods, will be part of its fact-finding investigation into shaping policy tools that could be deployed to enhance supply chain resilience. The office is requesting input on policies that are currently working well for these sectors, and those that are not working well, in advancing domestic supply chains.

The Ambassador’s visit to Glen Raven included a tour of the Sunbrella facilities, a design and innovation center, and a roundtable discussion with several other textile executives based in North Carolina who highlighted the significant impact of the sector to the U.S. economy.

Glen Raven, a family-owned company founded in 1880, operates five manufacturing facilities in North and South Carolina employing 2,500 people, including their joint venture with Shawmut Corporation. The company is currently in the process of scaling a $250 million multi-phase U.S. capacity expansion plan of its facilities and infrastructure to meet customer demand.

• Three out of four business units with record sales and results
• Carbon Fibers business weighs on the Group's profitability
• Group sales of €1,089.1 million (-4.1%) and adjusted EBITDA of €168.4 million (-2.5%) in a difficult market environment
• Sales and earnings forecast for 2023 achieved despite drop in demand from key market
• 2024 further capacity expansion in graphite components for silicon carbide-based semiconductors

In fiscal year 2023, SGL Carbon achieved the sales and earnings targets set at the beginning of the year despite the drop in demand from the important wind market and an increasingly challenging economic environment. Group sales decreased slightly by €46.8 million (minus 4.1%) to €1,089.1 million (previous year: €1,135.9 million). At € 168.4 million, adjusted EBITDA, a key performance indicator for the Group, was also down slightly (minus 2.5%) compared to the previous year (€172.8 million) but was clearly within the forecast range for 2023 of €160 to 180 million.

While the positive sales development of the Graphite Solutions (+€53.5 million to €565.7 million), Process Technology (+€21.6 million to €127.9 million) and Composite Solutions (+€0.8 million to €153.9 million) business units had a positive effect, the Carbon Fibers business unit had a negative impact on Group sales with a sales decline of €122.3 million to €224.9 million.

Outlook
The global economy will continue to face comparatively high interest rates and subdued growth prospects in 2024. Tighter financing conditions, weak trade growth and a decline in business and consumer confidence are also weighing on the economic outlook. In addition, heightened geopolitical tensions are contributing to increased uncertainty.

SGL Carbon expects different developments in our key sales markets in 2024. The most important sales and earnings driver will be demand for specialty graphite components for the semiconductor industry. In contrast, all indicators currently suggest that demand for carbon fibers for the wind industry will remain weak in 2024 and that the Carbon Fibers (CF) business unit will therefore continue to record operating losses. Even if demand picks up, SGL Carbon assumes that Carbon Fibers will require additional resources to make the most of market opportunities. With this in mind, teh company announced on February 23, 2024, that they are reviewing all strategic options for Carbon Fibers. These also include a possible partial or complete sale of the business unit.

SGL Carbon's sales forecast for the financial year 2024 takes all four operating business units into account, as the company is only at the beginning of evaluating the strategic options for CF. In line with the assumptions outlined, SGL Carbon is therefore expecting Group sales at the previous year's level (2023: €1,089.1 million).

In the earnings forecast, SGL Carbon has taken into account underutilization of production capacity in the Carbon Fibers business unit and the associated high idle capacity costs. The projected operating loss of CF will have a negative impact on the adjusted EBITDA of the SGL Carbon Group in 2024. Due to the expected positive development of Graphite Solutions, SGL Carbon anticipates an adjusted EBITDA of between €160 million and €170 million for fiscal year 2024, taking into account all four operating business units. Should the process of reviewing all strategic options for the CF business unit result in a sale, the forecast of adjusted EBITDA in 2024 would be between €180 - 190 million.

• Solvay’s FY 2023 financial statements reflect the Partial Demerger completed on December 9, 2023, with the Specialty businesses transferred to Syensqo classified as discontinued operations for 2023.
• New Solvay leadership team committed to drive the transformation of the company.
• Net sales for the full year 2023 at €4,880 million were down -12.6% organically versus 2022, driven primarily by volume declines. In Q4, net sales decreased organically by -18.9% from both lower volumes and prices.
• Underlying EBITDA of €1,246 million for the full year 2023 was stable (+0.2%) on an organic basis compared to a record 2022, with positive Net Pricing and lower fixed costs offsetting the drop in volumes. EBITDA in the fourth quarter was down -24.5% organically vs Q4 2022, fully driven by lower volumes, with variable costs reduction offsetting price erosion, while fixed costs decreased slightly.
• Underlying net profit from continuing operations was €588 million in 2023 compared to €740 million in 2022.
• Free Cash Flow of €561 million in 2023 (+17.3% vs. €479 million in 2022) resulting in a record FCF conversion ratio of 45.4%, thanks to the strong EBITDA performance and to the positive impact from working capital variation.
• ROCE was 20.4% in 2023, -2.5pp compared to 2022 as a result of lower profit.
• Solid balance sheet at the end of December 2023, in line with the target capital structure announced in November 2023, with an underlying net debt of €1.5 billion, which translates into a leverage ratio of 1.2x.
• Total proposed gross dividend of €2.43 per share, subject to shareholders’ approval during the next Ordinary General Meeting of May 28, 2024.
• Solvay continues to reduce its GHG emissions (-19% vs 2021, scope 1 and 2).
• 2024 Outlook: Organic growth of the underlying EBITDA of -10% to -20% compared to restated 2023; Free cash flow of minimum €260 million

2024 outlook
Across its product portfolio, Solvay expects current demand levels to continue over the next few months and, as such, expects H1 2024 volumes to be broadly in line with H2 2023. At this point, there is little visibility on the second half of the year, however there are signs that the trend in the second half could improve. Solvay expects Soda Ash prices over FY 2024 to be lower than FY 2023, consistent with the current market environment, which will affect the business margin in 2024. Pricing trends across Solvay’s other businesses are forecasted to be more resilient year on year.

Lower energy and raw materials prices should offset some of the negative pressure on the topline. More importantly, Solvay has started to implement cost savings initiatives that will start to deliver results in 2024.

For full year 2024, Solvay expects an organic growth of the underlying EBITDA by -10% to -20% versus a high comparison base in 2023, especially in H1. This translates into a range of €925 million to €1,040 million at a 1.10 EUR/USD exchange rate.

The organic growth of the underlying EBITDA is calculated from a 2023 restated figure of €1,154 million (vs a reported figure of €1,246 million).

Free cash flow to Solvay shareholders from continuing operations is expected to be greater than €260 million, in line with the cash usage prioritization presented during the Capital Market Day in November 2023. It is supported by Solvay’s ability to manage its capex and working capital to ensure the financing of its businesses and the payment of dividends while keeping the strength of its balance sheet intact.

Solvay remains committed to implement its strategic roadmap and reconfirms its 2028 targets as communicated at the Capital Markets Day of November 2023.

In a move to enhance the global competitiveness of the Turkish apparel industry, the Istanbul Apparel Exporters' Association (IHKIB) has entered into a collaborative agreement with the Worldwide Responsible Accredited Production (WRAP).

IHKIB, representing 80% of Türkiye's apparel exports, aims to facilitate and guide its members in navigating new markets and staying abreast of sectoral developments.
WRAP, a US-based non-profit organization, focuses on promoting safe, lawful, humane, and ethical working conditions within the textile and apparel industry.

Mr. Selcuk Mehmet Kaya, Chairman of the International Relations and Sustainability Committee of IHKIB, and Mr. Avedis Seferian, President and CEO of WRAP, officially inked a collaboration agreement on March 8, 2024, marking a significant step towards fostering business relations between Türkiye and the USA. The agreement focuses on a pilot project developed by IHKIB and WRAP, aiming to identify leading Turkish apparel companies exporting to the USA and encouraging these facilities to attain WRAP certification. In return, WRAP will provide in-person and virtual training at no charge to guide these facilities through the certification process. The project seeks to strengthen business ties between Türkiye and the USA, creating additional opportunities for mutual cooperation between the parties in both countries.

Mahlo GmbH + Co. KG exhibits its technologies at the upcoming IndoIntertex trade show in Jakarta. The event, scheduled from March 20 to March 23, will serve as a platform for Mahlo and its long-term partner agency Agansa to showcase its solutions tailored to meet the evolving needs of the Indonesian textile sector.

With a rich history in textile manufacturing and a skilled workforce, Indonesia has emerged as a key player in the global textile landscape. The country's strategic location, coupled with favorable government policies, has fueled the growth of its textile sector, attracting investments and fostering technological advancements.

Mahlo's participation in the IndoIntertex trade show underscores its commitment to supporting the Indonesian textile industry with solutions designed to enhance quality, efficiency, and productivity. Visitors to Mahlo's booth can expect to explore a range of offerings, including measurement and control systems, process automation solutions, and expert consultancy services.

Representatives from all 43 European partners of RegioGreenTex met for the Annual Consortium Meeting, hosted by CITEVE – the Portuguese Centre for textile innovation.

Co-funded by the European Union I3 Instrument Programme, RegioGreenTex is a €13 million project to promote investments in textile circularity. Research centres, regional clusters, regional development agencies and 26 SMEs collaborate to realise unique pilot projects to transform the textile industry business model from linear to circular.
 
The annual consortium meeting is a pivotal point to assess the project’s progress and impact. Presentations and workshops have been an essential part of the meeting, along with  networking opportunities where partners created synergies and discussed common challenges. Furthermore, all SME partners showcased their results through an exhibition with samples of garments, yarns, fabrics and products: the outcome of the project’s innovation so far. New collaborations and partners are expected to flourish as another outcome and the meeting.

EURATEX, as project coordinator, ensures the successful implementation of this ambitious initiative. Dirk Vantyghem, EURATEX Director General, commented: “RegioGreenTex is an essential piece of our wider plan to implement the EU Sustainable Textile Strategy. Offering investment support to our SMEs is critical to make this green transition a success.”

Global Fashion Agenda (GFA) has collaborated with PDS Ventures to launch a new Trailblazer Programme. The new initiative seeks to identify early-stage innovators and support them on their journey to scale.

As part of the Trailblazer Programme, PDS Ventures will award one innovator a significant investment of up to USD 200,000* to accelerate the company’s growth and positive impact in the fashion industry. The winner will also receive commercial and operational support from PDS Group’s Positive Materials - a textile company and strategic research partner supporting the development and acceleration of low impact textile innovation through collaboration between early-stage start-ups, supply chain partners and brands. Further scaling opportunities will be gained through access to PDS Limited’s extensive global supply chain.
 
GFA and PDS Ventures are presenting an open call for solution providers addressing different challenges across the fashion value chain to apply for the programme. Applicants will be reviewed and shortlisted by an esteemed Jury including representatives from GFA, PDS Ventures, Massachusetts Institute of Technology (MIT), Ralph Lauren Corporation, Fashion For Good and H&M Group. Eight shortlisted innovations will be enrolled in a group of Trailblazers, receiving feedback and investment pitch training from industry experts and PDS representatives.     
 
Each shortlisted innovator will then pitch for a potential investment, with the winning Trailblazer being revealed at GFA’s Global Fashion Summit: Copenhagen Edition 2024 - an international forum for sustainability in fashion, on 22-23 May at the Copenhagen Concert Hall. All shortlisted Trailblazers will also have the opportunity to showcase their businesses within an exhibit at the Summit to connect with other key industry stakeholders and potential investors.
 
The Trailblazer Programme corresponds with the theme of the upcoming Global Fashion Summit - ‘Unlocking The Next Level’. Inspired by a significant milestone, 2024 marks 15 years since the inaugural Global Fashion Summit was hosted in 2009. This pivotal anniversary offers a special moment to not only take stock of the evolution of the sector and the progress made so far, but, most importantly, look ahead at what actions must urgently be implemented in the near term, and the gaps that must be filled to accelerate industry transformation.

Having recently celebrated the club’s 120th anniversary with a special kit for the 2021/2022 season, this year, Y-3 and Real Madrid have come together once again to bring Yohji Yamamoto’s perspective to the club with a seven-piece travel collection.

Inspired by the signature monochromatic color palette of both Real Madrid and Y-3, the travel collection itself consists of a sleek and elegant selection of pieces in all black. Crafted at the intersection of tailoring and athletic-wear, the suite of pieces includes a short sleeve polo, a long sleeve polo, a pair of shorts, a pair of track pants, a track top, a coach jacket, and a premium faux leather jacket – each made with soft sporting fabrics and finished with collaborative details such as Yohji Yamamoto’s recognizable handwritten signature script wordmark and the Real Madrid crest.

Accompanying the launch of the travel collection is a campaign shot by trailblazing London-based photographer Gabriel Moses featuring past and present Real Madrid icons including Naomie Feller, Jude Bellingham, David Alaba, Misa Rodríguez, and Zinedine Zidane.

From 6 – 8 March 2024, over 330 exhibitors from seven countries and regions will convene at of Intertextile Shanghai Home Textiles – Spring Edition to highlight a variety of home textile products. Buyers will be able to source the latest bedding, duvets, pillows, towels, carpets, rugs and many more.

Highlighted exhibitors

• Bedding – GSI Creos Corporation, Jjiangyin Hongliu Bedsheet Co Ltd, Zhejiang Eider Warmth New Material Co Ltd
• Down – Anhui Million Feather Co Ltd, Hangzhou Gaga Home Textiles Co Ltd, Shanghai Donglong Home Textile Products Co Ltd
• Functional pillow & mattress – Changshu Dafa Warp Knitting Co Ltd, Chuzhou Bray Smart Home Appliances Co Ltd, Zhangjiagang Coolest Life Technology
• Floor – Amore Textile (Suzhou) Co Ltd, Jingyi Fur Products Co Ltd, Shaoxing Jiaohui Home Textile Co Ltd
• Quilt fillings – Pujiang Boyue Home Textile Co Ltd, Pujiang Huayu Hometextile Co Ltd
• Textile design – Tela’s Design Lda
• Towelling – Nantong Dadong Co Ltd, Sunvim Group Co Ltd
• Loungewear & bath – Suzhou Huazhong Knitting Co Ltd, Zhejiang Demu Textile Technology Co Ltd
• Upholstery fabrics – Changshu Xinghan Hometextiles Co Ltd, Jiangsu First Home Textile Co Ltd, Shaoxing Chengchong Imp & Exp Co Ltd
• Home textile technologies – Nantong Mingxing Science & Technology Development Co Ltd, Sichuan Chnki Sewing Machine Co Ltd

Fringe programme
Complementing the exhibitor lineup, Intertextile Shanghai Home Textiles will feature events to keep attendees up-to-date with emerging developments, trends, and important intuition.
For example, one of the most essential yet often overlooked foundations for sustaining wellness is quality sleep. Throughout day one and two at the Bedding Seminar Area, sleep technology will again be a key topic of discussion, guaranteeing comprehensive insights on sleep quality while tapping into associated business prospects.
Traditional Chinese medicine will also take the spotlight, with talks linking various health issues to remedies. Crossover subjects include topical therapy’s role in a better night’s sleep as well as innovations blending medicinal properties with textile design.
An increasing number of people are choosing to use natural materials and green textiles for their bedrooms and throughout their homes. For this reason, the seminars falling under the "Textiles & Technology" theme will shed light on sustainability and what’s next in the industry.

Mimaki Europe wird auf der FESPA Global Print Expo 2024 (19. bis 22. März 2024) seine neuesten Produkte im Bereich der UV-Drucktechnologie vorstellen. Als offizieller UV Excellence Partner der FESPA wird Mimaki einige seiner UV-Lösungen in der Mitte seines Standes und in seinem eigenen Experience Centre präsentieren.

Während der täglichen Führungen durch das Mimaki Experience Centre haben die Besucher die Gelegenheit, das Mimaki-Portfolio – Sign & Graphics, Textile & Apparel, 3D-Druck - zu erkunden. Die Tour wird auch Vorführungen von zwei neuen, noch nicht auf dem Markt befindlichen Produkten für den Sign & Graphics Bereich beinhalten.

In der „Sustainability Corner“ des Mimaki-Standes wird ein innovatives, industrielles Textildrucksystem vorgestellt, welches die Zukunftsvision von Mimaki widerspiegelt. Mimakis FESPA-Angebot mit UV-Technologie besteht aus dem kürzlich eingeführten UJV100-160Plus und UCJV330-160. Der UJV100-160Plus zeichnet sich durch einen niedrigen Stromverbrauch aus und bietet zusätzliche Funktionen zur Steigerung der Kundenrentabilität. Der integrierte Drucker/Schneideplotter UCJV330-160 ist eine neue Ergänzung des Produktportfolios der 330er-Serie von Mimaki und bietet Hochgeschwindigkeits- und Qualitätsdruck für verschiedene Anwendungen.

Nachdem Mimaki letztes Jahr in den DTF-Markt eingestiegen ist, wird das neueste Produkt des Unternehmens, der TxF300-75, zum ersten Mal auf einer EMEA-weiten Messe vorgestellt