From the Sector

With a current booking level of almost 90% for the international fabric trade show MUNICH FABRIC START, KEYHOUSE, THE SOURCE and BLUEZONE, Munich Fabric Start Exhibitions GmbH is starting the new season for Autumn.Winter 24/25 on a strong footing. From the organisers' point of view, the main reason for the high level of acceptance is the rebalancing of the July dates.

The international fabric trade show MUNICH FABRIC START (18 to 20 July), the innovation hub KEYHOUSE, theb one-stop sourcing platform THE SOURCE and the international denim trade show BLUEZONE (18 and 19 July) will move ahead and at the same time increase their relevance in the international trade show scene. For a large part of the visitors, the earlier date is closer to the collection rhythms and offers more time for further developments.

What's new?
Due to the early date of MUNICH FABRIC START and BLUEZONE, the Munich trade show duo with KEYHOUSE and THE SOURCE formats will function even more strongly as an impulse generator and leading international event. The Munich location will also be strengthened by the relocation of the DMI Fashion Day from Düsseldorf to the Bavarian capital. The first DMI FASHION DAY LIVE will take place the day before the next MUNICH FABRIC START at the MOC.

The course will also be set anew in September: The date, which remains important for the industry, will in future be occupied by reVIEW - the new format of the VIEW PREMIUM SELECTION for follow-ups and trends as well as new market developments. On an area of around 2,500 square metres, the first reVIEW Autumn.Winter 24/25 will be held on 13 and 14 September 2023 on the Zenith grounds in Motorworld.

Carbios announces the publication of an article entitled “Enzymes’ power for plastics degradation” in Chemical Reviews. The article is a comprehensive and critical review of research published to date on the enzymatic degradation of all types of plastics (PET, PLA, polyolefins, polyurethanes, polyamides) and includes almost 700 references. Co-authored by biotechnology researchers from Carbios and its academic partner Toulouse Biotechnology Institute (TBI), as well as two eminent professors in polymer science from the University of Bordeaux, the work brings together expertise in the fields of enzymology, polymer science and industry in order to accelerate the transition to a circular economy for plastic.

Beyond the comprehensive bibliographical study, the authors analyzed the data to discuss the scope, limitations, challenges and opportunities of enzymatic plastic recycling with a view to developing innovations and industrial processes. The article’s standpoint and added value with regard to issues surrounding plastic pollution is its critical view on technology transfer and industrial scalability.

To read the article in Chemical Reviews, click here.

At the Annual General Meeting of Autoneum Holding Ltd on 24th March 2023, a clear majority of the shareholders approved the introduction of a capital band in the amount of approximately CHF 100 million net proceeds to finance the acquisition of Borgers Automotive. The proposal to waive the payment of a dividend for the 2022 financial year in view of the lower net result was also approved. In addition, Board member Rainer Schmückle as well as CEO Matthias Holzammer were given a farewell.

221 shareholders attended today’s Annual General Meeting of Autoneum Holding Ltd in Winterthur. 66.48 percent of the share capital was represented.

The shareholders approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2022. The proposal of the Board of Directors to waive the payment of a dividend for the financial year 2022 due to the lower net result was also approved by the Annual General Meeting.

In addition, the shareholders of Autoneum Holding Ltd granted discharge to all members of the Group Executive Board and the Board of Directors by a large majority of votes.

Chairman Hans-Peter Schwald and the other members of the Board of Directors Liane Hirner, Norbert Indlekofer, Michael Pieper, Oliver Streuli and Ferdinand Stutz were confirmed in office for another year. Hans-Peter Schwald, Norbert Indlekofer, Ferdinand Stutz and Oliver Streuli were re-elected to the Compensation Committee.

The consultative vote on the 2022 remuneration report was approved by 85.55%. The proposals for the remuneration of the Board of Directors and the Group Executive Board for the 2023 financial year as well as the other proposals were also approved by a large majority.

With 99.03%, a clear majority of the shareholders approved a capital band authorizing a capital increase of approximately CHF 100 million net proceeds. The purpose of the capital increase is to partially finance the acquisition of the automotive business of the Borgers Group announced by Autoneum on January 9, 2023. The Annual General Meeting also approved the other proposals of the Board of Directors for partial amendments to the Articles of Association.

Rainer Schmückle did not stand for re-election. He had been Vice Chairman of the Board of Directors, Chairman of the Audit Committee and member of the Strategy and Sustainability Committee since Autoneum became independent in 2011. CEO Matthias Holzammer, who will leave Autoneum for family reasons, was also bid farewell.

At the same time, Hans-Peter Schwald welcomed the new CEO Eelco Spoelder, who will take over the management of the Group from Matthias Holzammer on March 27, 2023: "With Eelco Spoelder, Autoneum gains an accomplished leader with many years of experience in the automotive supply industry. At Faurecia and previously at Continental, Mr. Spoelder has successfully proven that he can ensure strategic continuity and operational excellence even in a difficult market environment. I and the other members of the Board of Directors warmly welcome Eelco Spoelder and look forward to our future cooperation."

• At end 2022, Carbios has 336 titles worldwide divided into 53 patent families for its innovation in enzymatic recycling of PET plastics and fibers, and its PLA biodegradation technology
• Carbios’ team of Intellectual Property experts is dedicated to protecting its innovations

 
Carbios has doubled its number of issued patents since the last review published at the end of 2020. Carbios (and its subsidiary Carbiolice) currently holds 336 titles worldwide divided into 53 patent families.  In 2022, several titles protecting the proprietary PET-degrading enzymes were granted in countries of interest such as the United States and also in Asian countries including Indonesia, South Korea, China, Japan and India.  Carbios has also obtained grants within its patent families protecting the biodegradable plastics production process, notably the masterbatch containing the enzyme or its production process.
 
Carbios is expanding its intellectual property portfolio in regions and countries where there is strong demand for its disruptive technologies, notably :

• in Europe: 40 European titles, which could be granted in the 39 member states of the European Patent Organization
• in North America: 41 titles in the United States and 23 in Canada
• in Asia: 152 titles, including 37 in China, 27 in Japan and 24 in India

Carbios also has 14 patent applications that may be extended to other countries or regions of the world in the coming years.

“Over the past two years, we have mainly focused on strengthening the protection of our PET biorecycling process and its proprietary enzymes,” commented Lise LUCCHESI, Director of Intellectual Property at Carbios. “For the coming years, we will continue to consolidate the protection of this process, and that of our PLA biodegradation process, by filing new patent applications. We will also actively follow up on our filed patent applications in order to obtain granted patents.”
 
“Since the beginning of Carbios, the R&D and Intellectual Property departments have worked hand in hand to ensure maximum protection of our enzymes and processes,” commented Alain Marty, Chief Scientific Officer at Carbios.  “These continued efforts to obtain extensive international protection are crucial to safeguard our innovations and ensure the industrial deployment of our technologies.”

• Technical innovation and natural fibres, for a broader definition of sustainability

The weaving collection further develops the themes that have emerged in recent seasons, interpreting them with a view to long-term sustainability.

In harmony with the Südwolle Group’s identity and values, research and technical innovation are combined with a high level of quality. Wools, almost all certified, are enriched by a significant level of performance that continues to evolve. The production process attempts to limit carbon footprint, as sustainability is the key principle guiding all the company’s choices.

The ability to offer yarns made from selected natural raw materials is in harmony with today’s sustainable buying habits, with a preference for garments and accessories that can be worn at any time of year. In contrast with the logic of fast fashion, today’s buyers, led by younger generations with a focus on the values behind their fashion choices, tend to choose items that can be expected to last longer, decreasing the environmental impact of textile wastes and throwaway fashion.

In casual wear too, the importance of comfort and feeling at ease is reconciled with the desire to wear items of good taste and quality. The new formalwear includes carefully cut garments made of materials guaranteeing fit, comfort and durability. A widespread focus on these factors makes for more conscientious, reasoned purchases, less subject to impulse buying.

Südwolle interprets the new interest in heritage, leading to the emergence of the phenomenon of quality second-hand, with a return to its core business and essentials, in a new sustainable version using certified fibres, chlorine-free anti-shrinkage treatments and long-lasting products that can be washed at home at low temperatures.

One of the most recent results of the company’s technical innovation is the new OTW® line of yarns for weaving produced using Omega Twist® technology, developed and patented by the Südwolle Group, producing yarns offering outstanding performance in terms of reduced pilling and greater elasticity, tenacity and durability.

adidas published its financial guidance for 2023. While the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock. This would lower revenues by around € 1.2 billion and operating profit by around € 500 million this year. Against this background, adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023. The company’s underlying operating profit is projected to be around the break-even level.

Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the write-off of the existing Yeezy inventory and would lower the company’s operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024.

If all these effects were to materialize, the company would expect to report an operating loss of € 700 million in 2023.

In 2022, based on preliminary unaudited numbers, adidas revenues increased 1% in currencyneutral terms. In reported terms, sales were up 6% to € 22,511 million during the 12-months period (2021: € 21,234 million). The company’s gross margin reached a level of 47.3% (2021: 50.7%) in 2022. adidas generated an operating profit of € 669 million last year (2021: € 1,986 million), reflecting an operating margin of 3.0% (2021: 9.4%). Net income from continuing operations was € 254 million in 2022 (2021: € 1,492 million).

With China easing its pandemic restrictions, foreign exhibitors and buyers can look forward to quarantine-free travel when participating at this year’s industry showcase in Shanghai. The technical textile and nonwovens fair is scheduled to take place from 19 – 21 September 2023 at the Shanghai New International Expo Centre, amid positive market forecasts for both sectors. The organisers are anticipating a strong showing and the conclusion of an inconsistent period for in-person textile business.

“The industry has demonstrated incredible patience and resilience over the course of the pandemic,” said Ms Wilmet Shea, General Manager of Messe Frankfurt (HK) Ltd. “With both markets growing and China opening its borders, we are excited at the prospect of providing participants with an international, business-friendly platform and expect to welcome a healthy number of exhibitors later this year.”

The global technical textile and nonwovens markets are both set to perform strongly over the next few years. According to Grand View Research, the technical textile market is forecast to expand at a CAGR of 4.7% from 2022 to 2030^[1]. The nonwoven fabrics market is anticipated to display an even stronger CAGR of 5.6% during the same period^[2], with Asia-Pacific to maintain its position as the biggest regional market.

As one of Asia’s leading trade fairs for the abovementioned sectors, Cinte Techtextil China is the preferred platform for multiple industry players. Speaking at the previous edition in 2021, Mr Seven Shen, Sales Manager at Libero Trading (Shanghai) Co Ltd, China, said: “We have been exhibiting at this fair for years, and know we will meet our target customers at every edition. The buyers here are all highly specialised.”

During his interview at the same edition, Mr Eric Ni, Senior Manager, China Supply Chain Marketing for Cotton Council International, USA, commented: “We hope to use this platform to meet more companies and brands in the nonwovens industry who are interested in US cotton, and to meet up with old friends to discuss the current situation and industry trends. The fair’s buyers are quality, and we have found some new potential clients at this edition.”

Many buyers at the previous edition also gave positive appraisals. “As a professional trade fair for technical textile and nonwoven products, Cinte Techtextil China is not only a platform to gather qualified industry players, but also the best place to showcase new products and innovations,” said Mr Lin Bin, Technical Director at Zhejiang Xinna Medical Device Technology Co Ltd, China. “Specific and high quality products enhance sourcing efficiency for buyers, and exposure to new trends and market developments ensures my company visits here regularly.”

The fair’s product categories cover 12 application areas, which comprehensively span a full range of potential uses in modern technical textiles and nonwovens. These categories also cover the entire industry, from upstream technology and raw materials providers to finished fabrics, chemicals and other solutions. This scope of product groups and application areas ensures that the fair is an effective business platform for the entire industry.

^[1] “Technical Textile Market Size, Share & Trends Analysis Report 2022-2030”, 2022, Grand View Research, https://bit.ly/3IAxQIK, (Retrieved: January 2023)
^[2] “Nonwoven Fabrics Market Size”, 7 September 2022, GlobeNewswire, https://bit.ly/3CxPE3u, (Retrieved: January 2023)

The Biden administration’s Section 301 penalty tariffs on finished textiles and apparel counteract China’s unfair trade advantages and give U.S. manufactures a chance to compete, two key American textile manufacturing groups told the Biden administration. Removing tariffs, the associations said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.

In a formal submission to the U.S. Trade Representative’s (USTR) office, which is conducting a four-year statutory review of the tariffs, the associations, representing the entirety of the U.S. textile production chain, expressed strong support for the continuation of current Section 301 penalty tariffs on finished textiles and apparel imports from China and outlined the effectiveness of U.S. tariff actions.

“In some cases, such as on finished apparel, the tariffs have worked to partially offset and counteract China’s unfair trade advantages,” the groups said. “The tariffs on finished textile and apparel items are giving U.S. manufacturers the chance to compete, and we are seeing encouraging investment and growth in moving some production and souring from China back to the Western Hemisphere.”

“The CAFTA-DR [Dominican Republic-Central America Free Trade Agreement] region has seen more than $1 billion in new textile and apparel investment this year, for example, which is historic and due to the textile and apparel rules negotiated under the agreement and sourcing shifts from China,” they added. “This investment and growing U.S. imports from the Western Hemisphere is attributable in part to the 301 tariffs on finished apparel.  The tariffs on finished items in our sector are broadly supported by textile/apparel producers in the hemispheric co-production chain, and it is essential that they remain in place, absent China reforming its practices.”

The submission was filed by the National Council of Textile Organizations (NCTO) and the U.S. Industrial and Narrow Fabrics Institute (USINFI), a division of the Advanced Textiles Association (AFA).

The groups have long advocated for a fair, transparent process to remove tariffs on textile machinery, certain chemicals and dyes and limited textile inputs that cannot be sourced domestically to help U.S. manufacturers compete against China.

They also stressed that lifting the tariffs on finished textiles and apparel products from China “will solidify their global dominance in this sector for generations to come and reward their abusive behaviors, exacerbate the migration crisis, hurt domestic manufacturers and workers, undermine our ability to recalibrate essential PPE supply chains, and blunt the positive supply chains shifts and investments in the Western Hemisphere that are happening.” They added it would “do nothing to solve the inflation crisis facing U.S. consumers and manufacturers right now.”

See the full submission here.

The Munich Fabric Start Exhibitions GmbH announces the programme for the upcoming editions of MUNICH FABRIC START (24 to 26 January 2023) and BLUEZONE & KEYHOUSE (24 and 25 January 2023).
From 24 to 26 January 2023, visitors can expect a range of the latest trends, fabric, accessories and denim highlights from around 900 international exhibitors, an event programme with expert panels, keynotes and trend lectures, as well as numerous networking opportunities.

Economic Environment
Conflicts, inflation, recession, energy crisis, massive inequality, climate change - how companies can position themselves securely in a volatile market environment - this is deciphered by trend analyst David Shah in his key note "Self-Empowerment" and numerous industry experts, futurologists and leading fashion editors in the lecture series "The Status Quo of Fashion" by strategy and communication consultants Alex Vogt and Jana Kern.

Next to David Shah (View-Publications), the panel will include Siems Luckwaldt (CAPITAL and BUSINESS PUNK, RTL Germany), Shamin Vogel (WeAr Global Magazine), Ben Hanson (The Interline), Maria Cristina Pavarini (The SPIN OFF) and Carl Tillessen (DMI)

Digital Era
From digital colour apps, digital twins and virtual models to 3D simulation and virtual dressing rooms - the world of digital fashion will not only be discussed in numerous lectures in Munich, but also brought to life in the new Assyst Experience. Whether it's Carola Seybold, Head of Global Key Accounts at Pantone, Jan Hilger from Roland Berger, Arndt Johannes from Verce, Dr. Stefan Hauswiesner, CEO of Reactive Reality or the experts of the panel "Textilfabrik X.0 - New Marketing Buzz Words or One Step Ahead": everyone will be looking at virtual fashion from a different angle and providing insights into the latest state of the art. In her trend presentation "The weird & wonderful world of fashion cores" at BLUEZONE, Angela Velasquez (Rivet) sheds light on how viral TikTok trends are reshaping denim merchandising.

Sustainable Future
Digitisation and sustainability - the third major theme of the event programme - could not be more closely intertwined. Lisa Lang, Director of Policy & EU Affairs Orchestrator of EIT Climate KIC in an interview with Muchaneta ten Napel (Shape Innovate) kicks things off about the importance of a green transformation for the industry. Other topics in focus: Liv Simpliciano from Fashion Revolution gives an overview of where the world's biggest fashion brands and retailers stand in terms of transparency. Tricia Carey from Renewcell, David Shah (View-Publications), Lien van der Schueren and Guy Buyle (CISUTAC & HEREWEAR), Mateusz Wielopolski (Circulix) and Mario Malzacher (Circular.Fashion) critically discuss whether the circular economy is really the solution for everything or just a placebo. Circular ecosystems are also presented by Franziska von Becker from Hachmeister & Partner.

The race of the new sustainable materials of the future will be opened by Kirsi Terho from Infinited Fiber, Kuben Edwards from Onezero8, Marianne Uddman from Trustrace and Simon Angel, Sustainable Innovations Curator of MUNICH FABRIC START in a panel discussion with Muchaneta ten Napel (Shape Innovate). New products for a sustainable future in the denim industry will be discussed at BLUEZONE.
Another highlight: In cooperation with the Transformers Foundation, an expert panel will also be held at BLUEZONE on both days of the trade show.

Trends Spring.Summer 2024
Gerd Müller-Thomkins, Carl Tillessen and Niels Holger Wien from the Deutsches Mode Institut (DMI) see a "vibe shift" - a turning point. They will analyse what this means for fashion in their trend presentation on Wednesday. The Women's Fashion Trends SS 24 with the must haves of the season will be analysed by Karin Schmitz from the Trend Forecast Institute Peclers Paris - from the glamorous appearance in everyday life, to the play with gender identity, to simplicity combined with functionality and mobility.

In view of the easing of pandemic restriction policies in China, the Spring Editions of Intertextile Shanghai Apparel Fabrics, Yarn Expo and Intertextile Shanghai Home Textiles have been moved to the new timeslot of 28 – 30 March 2023. This will allow both local and international fairgoers more time to prepare for their participation, with a higher industry turnout now expected at the three fairs. The fairs will still be located at the National Exhibition and Convention Center in Shanghai where they were originally due to be held from 8 – 10 March.

Discussing the change of dates, Ms Wilmet Shea, Deputy General Manager of Messe Frankfurt (HK) Ltd explained: “After talking to our stakeholders, we believe adjusting the spring show dates to the end of March is the right move. It provides enough time for exhibitors and visitors from local and abroad to plan for the fairs and capitalise on the ample international business opportunities brought by the reopening of China’s border.”