From the Sector

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today on the White House announcement that President Biden will sign an executive order today, “ensuring the future of America is Made in America by all of America’s workers.”  Further, NCTO launched a new industry video campaign today that outlines steps the Biden administration and Congress must take to re-shore the production of personal protective equipment (PPE) and the entire supply chain for critical products. The video can be found here: MakeAmericanPPE.

National Council of Textile Organizations President and CEO Kim Glas said:
“We commend President Biden for taking action in his first days in office to strengthen our domestic supply chain and manufacturing base with a “Made in America” executive order directing the federal government to spend taxpayer dollars on American-made goods produced by American workers using American-made components.

Increasing the domestic procurement threshold and the price preferences for domestic goods under the current Buy American law will bolster domestic production and stimulate more investment in U.S. manufacturing.

We believe it is critical that taxpayer dollars are used to invest in American manufacturing and our workforce. It is essential that we close loopholes in our Buy America laws, expand application and product coverage of domestic content rules, and close unnecessary contract waivers that undermine American manufacturing and its workforce.
 
We look forward to working with the Biden administration and Congress on immediately strengthening our domestic procurement laws. The COVID-19 crisis was exacerbated when foreign supply chains broke down leaving our frontline workers vulnerable, underscoring the vital need for America to manufacture essential medical products at home. We look forward to working with the Biden administration on implementing this Executive Order, and with members of Congress to push critical bipartisan legislation to help ensure this onshoring effort is fully realized.

We also sincerely thank Senator Sherrod Brown (D-OH) and Representative Kathy Manning (D-NC) for their leadership in sending a recent letter to President Biden, requesting the president prioritize “Made in America” personal protective equipment (PPE) purchases and outlining key steps the administration can take to produce and procure quality American-made PPE for frontline workers.”

• Monforts customer Kipaş has been selected as the sole denim manufacturing partner in the €6.7 million European Union-funded New Cotton Project, involving the brands adidas and H&M, working in a consortium with suppliers, innovators and research institutes.

Kipaş, based in Kahramanmaraş, Turkey, is currently installing its third Monforts Montex stenter along with a third Monfortex compressive shrinkage system in a combined configuration dedicated to denim production.

This follows the successful installation and commissioning of the second Montex and Monfortex lines at the Kahramanmaraş plant in 2018, which Kipaş Vice Chairman of the Board Ahmet Öksüz said had immediately exceeded expectations.

“We performed a very thorough technical investigation based on the latest Industry 4.0 analysis before the purchase, to determine what we needed, and the Monforts technology met all our requirements,” he said, in an interview with Textilegence magazine. “The Monfortex is equipped with a variety of features not found on classical shrinkage machines and the production can be monitored from beginning to end. It also exceeded our expectations in energy cost savings.”

Kipaş subsequently received a special certificate from Monforts in recognition of its exceptional utilisation of the technology to its full potential.

The latest Montex stenter now being installed at Kipaş is a 12-chamber unit with a working width of 2 metres featuring all of the latest automation features. The Monfortex unit, also with a working width of 2 metres, is in a ‘double rubber’ configuration, comprising two compressive shrinkage units and two felt calenders in line. This allows the heat setting of elastane fibres and the residual shrinkage of the denim to be carried out simultaneously, for a significant increase in production speeds.

“Around 90-95% of denim fabric production now contains elastane fibres and the Monforts system has allowed us to simultaneously increase our production and quality in this respect,” Mr Öksüz said.

Regenerated cotton
For the next three years within the New Cotton Project, Kipaş will manufacture denim fabrics based on the cellulose-based fibres of Infinited Fiber Company of Finland, made from post-consumer textile waste that has been collected, sorted and regenerated.

The patented technology of Infinited, which is leading the consortium of 12 companies, turns cellulose-rich textile waste into fibres that look and feel like cotton.

“We are very excited and proud to lead this project which is breaking new ground when it comes to making circularity in the textile industry a reality,” said Infinited co-founder and CEO Petri Alava. “The enthusiasm and commitment with which the entire consortium has come together to work towards a cleaner, more sustainable future for fashion is truly inspiring.”

Take-back programmes
Adidas and H&M will establish take-back programmes to collect the clothing that is produced, to determine the next phase in their lifecycle. Clothing that can no longer be worn will be returned to Infinited, for regeneration into new fibres, further contributing to a circular economy in which textiles never go to waste, but instead are reused, recycled or turned into new garments.

The aim is to prove that circular, sustainable fashion can be achieved today, and to act as an inspiration and stepping stone to further, even bigger circular initiatives by the industry going forward.

The EU has identified the high potential for circularity within the textile industry, while simultaneously highlighting the urgent need for the development of technologies to produce and design sustainable and circular bio-based materials. Making sustainable products commonplace, reducing waste and leading global efforts on circularity are outlined in the European Commission’s Circular Economy Action Plan.

Fashion brands produce nearly twice as many clothes today as they did 20 years ago and demand is expected to continue growing. At the same time, the equivalent of one garbage truck of textiles is landfilled or burned every second. Most of the textile industry’s environmental problems relate to the raw materials used by the industry – cotton, fossil-based fibres such as polyester, and viscose as the most common man-made cellulosic fibre, are all associated with serious environmental concerns.

• World Cotton Day on 7 October Highlights the Importance of Cotton for Development Policy

Bremen - Stemming from a 2019 initiative of the African Cotton-4 countries Benin, Burkina Faso, Chad and Mali, World Cotton Day will take place this year on 7 October. The event is organised by the Geneva-based World Trade Organisation (WTO) and is supported by the Food and Agriculture Organisation of the United Nations (FAO), the United Nations Conference on Trade and Development (UNCTAD), the International Trade Centre (ITC) and the International Cotton Secretariat (ICAC). The Bremen Cotton Exchange is also involved.

“Cotton is often underestimated because it is so natural. Behind it are millions of people, for example many farmers, field workers, employees in ginning factories, logistics providers and traders. We want to honour their achievements,” said the President of the Bremen Cotton Exchange, Stephanie Silber.

According to the WTO, the aim of World Cotton Day is to highlight the global economic importance of cotton and to raise awareness of the raw material by recognising the work of everyone involved in its cultivation, processing and trade. At the same time, within the framework of international cooperation, it is hoped that supporters and investors can be found to aid with technological and economic progress within the cotton value chain.

This time, the entire world cotton community will be involved in World Cotton Day on Wednesday, 7 October 2020. A wide variety of campaigns and events are taking place everywhere to draw attention to the importance of cotton and its possible uses.

Cotton is one of the most relevant agricultural raw materials in the world. Around 26 million tonnes of it are harvested annually. Approximately 150 million people in almost 80 countries around the world live from the cultivation of the natural fibre. A large number of these live in developing countries, where cotton cultivation is of particular importance as a cash crop.

Cotton is known as an agricultural product that is turned into a textile. The raw material is indispensable in fashion and clothing – and has been for thousands of years. But the use of cotton now goes far beyond textiles. For example, cosmetic products such as hand creams and hair shampoo are made from the oil of cotton seeds. The raw material is also used in the manufacture of banknotes, furniture and technical textiles, as well as in medical technology.

Against the background of the current discussion on sustainability and sustainable consumption, the role of natural fibres is becoming even more important. Cotton is biodegradable and a renewable resource. It can be grown again and again in agriculture through cultivation in crop rotation. This secures incomes and enables efficient value creation within the global production and processing chain.

The Bremen Cotton Exchange will actively support World Cotton Day with cross-media coverage. In addition, in time for World Cotton Day, three thematically different, emotionally appealing short films about cotton will be launched. They are aimed at consumers as customers of the textile and clothing trade and provide information about the benefits and properties of cotton and answer questions about its sustainability. In keeping with the times, they will be published via virtual media.

• A new partnership is born in the name of responsible innovation, relationships and a new twist in the fashion system

C.L.A.S.S., the international hub for responsible innovation founded by Giusy Bettoni, and SFASHION NET, the portal dedicated to micro critical fashion companies created by Guya Manzoni and Marina Savarese, join forces to give active support to micro enterprises and bring a wave of fresh air in the fashion system.

When you speak the same language and are moved by the same values, it is easy to meet on a common path. You can decide to walk alone, or to continue together in the same direction. This is what has happened since the meeting of C.L.A.S.S. and SFASHION NET, two realities, the first consolidated over time and the second recently born, which speak of responsible innovation, beauty, design, tradition, ethics and smart communication.

And who have decided to combine skills and ideas in the name of a revolutionary vision of fashion.

Micro companies and independent designers, the daily bread of SFASHION NET, will become the final addressees of a series of specialized services and courses developed by C.L.A.S.S. and will benefit from special conditions for finding materials in small quantities available on the Smart Source and ad hoc consultancy. All this to support the growth of these brands that have always moved on the wave of sustainability and ethical production, but often encountering many problems.

Online activities will alternate with offline meetings, because relationship is what makes the difference, even in the world of fashion.

“The spirit and values of the new generation of designers are what makes us optimistic about tomorrow’s fashion system. For this reason, together with SFASHION NET “every year” we will choose 1 or 2 creatives that are more in line with our common values and we will promote them at 360°, on all our channels and with a targeted communication activity starting from the collections that will be presented in February”.

• Sales and recurring EBIT significantly decreased in first half of 2020

As expected, the second quarter of SGL Carbon was impacted by the Corona pandemic, but not to the extent predicted in May when the quarterly statement for the period ended March 31, 2020 was published. Sales in the three months as per end of June decreased approximately 23 percent year-on-year, whereas Group recurring EBIT was at around 2 million euros and thus higher than anticipated. In total, SGL Carbon reached Group sales of 457 million euros in the first half year. This corresponds to a decrease of around 19 percent year-on-year. The decline is due to a pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM) due to capacity adjustments. Group recurring EBIT was down approximately 71 percent to 11 million euros.

At a glance*:

• Sales in the second quarter approximately 23 percent below prior-year period; Group recurring EBIT of around 2 million euros was slightly better than anticipated at the presentation of the results of the first quarter 2020
• Group sales in the first half year 2020 at almost 457 million euros and thus around 19 percent below the prior-year period; decrease in sales due to pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM)
• Group recurring EBIT down approximately 71 percent to 11 million euros
• As a result of measures taken at an early stage and contrary to the normal seasonal trend, cash and cash equivalents at nearly 154 million euros as of June 30, 2020 developed very positively compared to the end of 2019
• According to the full year forecast published on July 28, 2020, SGL Carbon expects Group sales to decline by 15 to 20 percent and a slightly positive operating recurring EBIT
• Dr. Torsten Derr, CEO of SGL Carbon: "My ambition is to achieve lasting success with SGL Carbon. Over the past two months, we have been conducting a comprehensive analysis of our processes, structures and markets. Based on this, we will identify the options that will enable us to sustainably increase our profitability. The Corona pandemic is forcing us to act even faster."

*Please read the attached document for more information

The PREMIUM GROUP and its partner, JOOR, the largest B2B wholesale platform in the world, have together developed a digital marketplace showcasing a curated portfolio of brands compiled in partnership with the relevant retailers. The first digital trade show in the world launches on 14 July 2020: PREMIUM+SEEK Passport.

The JOOR Passport platform is geared towards the current market conditions, where only limited travel is permitted, as well as towards the time after the pandemic when physical events will be able to take place again.

The trade show experience is condensed into a one-stop shop for users: one website, one app to search for and find suppliers, and one place to upload and access data and content – in short, one comprehensive digital experience.

The digitalisation of business interactions represents a year-round marketplace where retailers can discover new styles and designers, and brands can generate new contacts.

On the summer trade show dates the seasonal brand lookbooks curated by PREMIUM and SEEK can be uploaded to individual profiles and key looks can be presented in virtual showrooms. The PREMIUM GROUP translates the recipe for success – Commerce, Content and Community – for the digital sphere. Buyers can find out the latest on style and trend stories on the PREMIUM+SEEK Passport homepage, which also highlights key themes such as sustainability. This enables retailers to continue to gain inspiration from brand worlds, to keep abreast of developments and discover new things.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today in response to the Congressional-Executive Commission on China’s staff report on the forced labor of Uyghurs and other minorities in China to produce consumer products for global companies.

We share the concerns of the bipartisan China commission regarding forced labor in China that is used to produce goods for global companies. We agree with the findings and the commission’s recommendations to the administration and Congress to take action against the systemic abuse of forced labor.

As the commission’s report details, Chinese apparel exporters have clearly profited from the virtual enslavement of this minority population, and we call for continued scrutiny and the end to this exploitation of a repressed people. The commission has served a fair warning to U.S. businesses and consumers to not be complicit in these forced labor practices.

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 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

The National Council of Textile Organizations (NCTO) issued a statement today on the Trump administration’s announced action plan to increase enforcement and penalties against counterfeit goods sold online and imported to the U.S.

“This is a very important and long overdue move on the part of the administration to increase enforcement activity and penalties against counterfeit goods sold online and imported into the United States,” said NCTO President and CEO Kim Glas. “We commend the administration for making a commitment to bolster efforts to crack down on counterfeits, particularly in the textile and apparel sector, which has been hit hard by fake imported products for decades.”

Nearly two million shipments of goods are exported to the United States duty free each day-- often from countries with poor labor, human rights and environmental track records—under a provision known as Section 321 de minimis. This provision allows goods valued below an $800 threshold to enter the U.S. duty free when imported directly to an individual on a single day.  

“This massive increase in de minimis shipment trade poses significant security risks and threats to public health and safety, while incentivizing customs fraud and creating a loophole to our entire tariff structure,” Glas said. “Our concerns regarding the de minimis loophole are exacerbated by the belief that the domestic textile industry and other U.S. manufacturing interests are directly and negatively impacted, particularly since e-commerce sites like Amazon and others are using de minimis as a duty-free portal into the U.S. for products under $800.”

Furthermore, CBP’s own annual report on intellectual property seizures, including large volumes of counterfeits, revealed that U.S. authorities made seizures totaling $1.4 billion in fiscal 2018. Over 90 percent of all intellectual property (IPR) seizures occur in the international mail and express shipment environments, according to the report, which is a common method of shipping by e-commerce sites.

Chinese products accounted for 46% of all IPR seizures with a total Manufacturers Suggested Retail Price (MSRP) value of $761.1 million in FY 2018. Apparel and accessories were the top counterfeit products seized by U.S. authorities, accounting for 18% of all seizures in FY 2018 with an MRSP value of $115.2 million.

“We think this is an important step forward by the administration to deepen the analysis on de minimis products--- that are often not thoroughly examined and undercut our domestic manufacturing industries,” Glas said. “We don’t know what the products are, where they are coming from, whether they meet U.S. safety requirements, who is making them or the country of origin. We believe it is long past time for the administration to address the issue of de minimis shipments and counterfeiting head on.”

The National Council of Textile Organizations (NCTO) released the following statement on the Phase One Deal on 301 tariffs signed today by the U.S. and China.

“While we are still studying the details of the deal signed today, we applaud the administration for finally pressing China for a more rational and equal trade relationship,” said NCTO President and CEO Kim Glas. “Our industry has been severely damaged by China’s predatory practices over the past 30 years and we are anxious to see a new era of sound trade principles and balanced trade.

At the same time, we question the last-in, first-out approach to the tariff reductions.  In our sector, this means that the penalty 301 tariffs on finished apparel and sewn products--the areas where tariffs have the most potential to effect reforms in China while bolstering the Western Hemisphere supply chain-- are cut in half while U.S. manufacturers continue to face full tariffs on certain inputs and equipment not available domestically.”

At EuroShop 2020 from 16 to 20 February, ECOpark will focus on energy storage solutions, cost reduction and climate protection
In future, the ENERGY STORAGE EUROPE (ESE) trade fair will cooperate with EuroShop, the world’s leading trade fair for retail investment requirements. As part of this cooperation, commercial enterprises will receive information on how they can use storage systems to implement energy saving measures, which in turn help them secure competitive advantages and commit to climate protection. ESE is expanding the user initiative that was started last year and which also comprises the cooperation with ProWein, the world’s leading trade fair for wines and spirits, as well as GNTM, the world’s leading trade fairs for metallurgy and foundry technology. The next ENERGY STORAGE EUROPE will take place in Düsseldorf from 10 to 12 March 2020.

“Our analyses show that many commercial users in retail, the metal industry and viticulture currently don't see storage as an integrated part of their energy systems and thus do not tap potentials for energy efficiency and climate protection,” says Andreas Moerke, Director ESE. “By cooperating with the leading trade fairs in these industries, we can show thousands of companies how energy storage can contribute to climate protection. In the coming months, we will approach the numerous customers of these trade fairs and connect them to energy storage system providers at ESE.”