From the Sector

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.

Textile innovator and specialty chemical producer Devan answers questions regarding anti-viral textile finish solutions following the growing spread of the COVID-19 outbreak.

Over the past few weeks, Devan has received a lot of questions regarding an antiviral solution for textiles against Sars-COV-2, the virus that causes COVID-19. “Not a big surprise since we put BI-OME AV forward 3 years ago. Testing has been done in cooperation with Institut Pasteur de Lille”, says Devan CEO Sven Ghyselinck. Devan studied enveloped viruses (e.g. H1N1, Corona-types, etc.) as well as naked viruses (e.g. Rotavirus). For both virus families, BI-OME AV showed strong to excellent activity in wet state.

In the first instance, the company wants to focus on professionals who need to stay working such as policemen, logistics workers, shop employees, day-care workers, … A common complication of respiratory viral disease can be a secondary bacterial infection. Professionals could be helped with either an anti-bacterial on their facemask to reduce the chance for these secondary bacterial infections, for better hygiene and less odor build-up. On workwear, a combination of a virus spread reducing and antibacterial solution could help as these garments are typically used during long hours, are non-disposable and most likely will be washed at home.

Devan has solutions which withstand washing while keeping its performance. BI-OME as a liquid product is EU BPR, Turkish BPR and US EPA registered. Depending on the rash region, commercialising treated articles be subject to additional local registration procedures.

The corona pandemic has a significant impact on the global economy and thus also on the global automotive industry. The temporary plant closures at almost all customers in all regions will result in a revenue decline at Autoneum in the current year, the extent of which cannot yet be estimated.

In addition to the ongoing cost-saving programs, Autoneum has therefore decided on a comprehensive set of measures to further increase the flexibility of personnel and material expenses. This includes staff adjustments, e.g. by reducing the number of temporary employees in plants. In addition, short-time work at the Swiss sites, the Group’s headquarters in Winterthur and at the Sevelen plant (canton of Sankt Gallen), as well as short-time work in some other European countries and temporary closures of production facilities in various regions in line with those of customers are being implemented. With these measures, Autoneum is at the same time making its contribution to protecting the workforce, breaking chains of infection and containing the spread of this pandemic.

Despite the above-mentioned countermeasures and in light of the advancing spread of the coronavirus, Autoneum does not expect to achieve its targets for the business year 2020. Due to the considerable uncertainties regarding the course and duration of the pandemic, no updated outlook is provided for 2020 for the time being.

The Board of Management of SGL Carbon SE (ISIN: DE0007235301) has decided not to hold the Annual General Meeting on April 22, 2020, as planned, but to postpone it to a later date.

The cancellation of the Annual General Meeting convened for April 22, 2020, is due to the latest measures taken by the federal government, the federal states and municipalities in connection with the spread of the coronavirus (SARS-CoV-2) as well as the assessment of the Robert Koch Institute and the relevant authorities that in the following weeks infections in Germany will likely increase further. In this situation, the Board of Management decided not to hold the event on April 22, 2020, in the interest of protecting the health of our shareholders, our employees, and our service providers involved in the Annual General Meeting.

The Company will reschedule the Annual General Meeting to a later date in 2020. SGL Carbon SE will monitor the situation closely in the coming weeks and, depending on the further development of the infections, will invite its shareholders to a new date for the Annual General Meeting.

NCTO Supports Administration’s Proposals on Economic Stimulus in Coronavirus Response; Rejects Importer Attempts to Remove China 301 Tariffs on Finished Products

The National Council of Textile Organizations (NCTO), representing the full spectrum U.S. textiles from fiber through finished sewn products, issued a statement today welcoming the Trump administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak. But the organization urged officials to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.

“The president has outlined the need for a broad economic stimulus package that would include various tax incentives to help impacted industries and workers. We support the administration’s efforts to bolster the economy as a response to the coronavirus outbreak, while opposing add-ons to any stimulus package designed to exploit the crisis,” said NCTO President and CEO Kim Glas.

As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on Sept.1 from 15 percent to 7.5 percent.

Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in the sector; while fiber, yarn, and fabric imports from China only represent 6.5 percent, according to government data.