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Photo: Pixabay
15.08.2022

Cotton prices outlook

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Beyond the weakening macroeconomic environment, there also may be factors associated with cotton supply chains that could affect demand during the 2022/23 crop year.  Downstream consumer markets for cotton can be viewed as more discretionary than other spending categories, such as food, energy, and lodging, that experienced some of the sharpest effects of inflation.  Given price increases for necessities, consumers may have less income to devote to apparel and home furnishings.

In the U.S., consumer spending on clothing has been flat for the past year.  However, it has been holding at levels that are 25% higher than they were in 2019.  If U.S. consumers pull back on clothing purchases, it may hit the market just as retailers have caught up with consumer demand after the onset of the shipping crisis.  In weight volume, the cotton contained in U.S. apparel imports was up 22% year-over-year in the first half of 2022.  Relative to 2019 (pre-COVID and pre-shipping crisis), the volume in the first half of 2022 was up 23%.  Given strong import volumes, if there is a dip in consumer demand, inventory could build both at retail and upstream in supply chains.  This could lead to cancelations, potentially all the way back to the fiber level, where contracts signed at prices higher than current values could be particularly susceptible.

Tight U.S. supply is on the other side of price direction arguments.  Cotton is drought tolerant, and that is why it can be viably grown in perennially dry locations like West Texas.  However, cotton requires some moisture to germinate and generate healthy yields.  West Texas has had very little rain over the past year, and drought conditions have been extreme.  As a result, abandonment is forecast to be widespread.  It remains to be seen exactly how small the U.S. crop will be, but the current USDA forecast predicts only 12.6 million bales in 2022/23 (-5.0 million fewer bales than in 2021/22).

Meanwhile, demand for U.S. cotton has been relatively consistent, near 18 million bales over the past five crop years (an average of 15.5 million bales of exports and 2.7 million bales of domestic mill-use).  A harvest of only 12.6 million falls well short of the recent average for exports alone, and U.S. stocks were near multi-decade lows coming into 2022/23.  All these statistics suggest shipments from the world’s largest exporter may have to be rationed in 2022/23.  If cotton is not readily available from other sources, the scarcity of supply from the U.S. could support prices globally.

Simultaneously, there is weakness from the demand side.  The market has struggled to find the balance between the weakened demand environment and limited exportable supply in recent months.  The conflict between these two influences makes it difficult to discern a clear direction for prices and suggests continued volatility.

More information:
Cotton Inc. cotton
Source:

Cotton Inc.

28.07.2022

Lenzing partners with Red Points to fight counterfeits

  • Collaboration with Red Points addresses consumers’ increasing expectations on transparency and highlights Lenzing’s commitment to trademark protection
  • Protects interest of Lenzing customer and partners who are making real efforts to enhance the transparency of their value chains
  • Builds upon Lenzing’s overall brand protection efforts that verify the authenticity of fibers up to the end products

Lenzing Group, a global producer of wood-based specialty fibers, has announced a partnership with Red Points, a company in online IP infringement detection and removal, to strengthen Lenzing’s existing brand protection efforts globally and enable round-the-clock brand monitoring services. As Lenzing’s textile brands TENCEL™, LENZING™, ECOVERO™, as well as nonwovens brand VEOCEL™ continue to generate widespread demand from industry partners and customers worldwide, it is becoming increasingly important to protect the company’s trademarks and provide full visibility into the brands’ presence online.

  • Collaboration with Red Points addresses consumers’ increasing expectations on transparency and highlights Lenzing’s commitment to trademark protection
  • Protects interest of Lenzing customer and partners who are making real efforts to enhance the transparency of their value chains
  • Builds upon Lenzing’s overall brand protection efforts that verify the authenticity of fibers up to the end products

Lenzing Group, a global producer of wood-based specialty fibers, has announced a partnership with Red Points, a company in online IP infringement detection and removal, to strengthen Lenzing’s existing brand protection efforts globally and enable round-the-clock brand monitoring services. As Lenzing’s textile brands TENCEL™, LENZING™, ECOVERO™, as well as nonwovens brand VEOCEL™ continue to generate widespread demand from industry partners and customers worldwide, it is becoming increasingly important to protect the company’s trademarks and provide full visibility into the brands’ presence online.

Protecting the interest of Lenzing’s partners and consumers
Red Points provides the ideal technology solution to help Lenzing monitor and remove unauthorized use of its trademarks and counterfeits online. The technology works by using Artificial Intelligence (AI) to automatically detect intellectual property infringements of Lenzing’ trademarks with high accuracy and efficiency.

Brand protection is just one of Lenzing’s ongoing proactive measures aimed at enhancing transparency in the supply chain and protecting the interest of Lenzing’s partners by ensuring they are purchasing genuine Lenzing fibers which meet their high standards.

In 2018, Lenzing launched the Lenzing E-Branding Service which allows Lenzing’s customers, retailers and brand partners to effectively use trademarks in their marketing materials. The platform has been welcomed by partners globally as it continues to deliver value to the fashion, textile and nonwoven sectors by facilitating the traceability of Lenzing’s fibers and enabling customers to promote them effectively.

Source:

Lenzing AG

(c) Hologenix, LLC
11.04.2022

Hologenix® receives recognition for pure white CELLIANT

Hologenix® announces that its newest innovation has achieved two recognitions. In addition to being a Top Ten winner in the Fibers & Insulation Category of ISPO Textrends Fall/Winter 2023/24, pure white CELLIANT has been shortlisted in the Drapers Sustainable Fashion 2022 Awards. The company is sharing the spotlight with recognized brands such as H&M, Sweaty Betty and Timberland. According to Drapers, the leading authority on fashion retailing in the UK since 1887, which sponsors these awards annually, this year they received the most entries ever, making them very competitive.

To create pure white CELLIANT rPET fiber, Hologenix developed a strategic partnership with the Ireland-based Wellman International Limited, a fully owned subsidiary of Indorama Ventures. Indorama Ventures is investing $1.5 billion on sustainability initiatives, allowing them to recycle 50 billion PET bottles globally by 2025 to support the growth of the circular economy. Wellman International has been a pioneer of recycling technologies for almost 50 years, offering specialist solutions for the medical, hygiene, automotive, home care and apparel sectors.  

Hologenix® announces that its newest innovation has achieved two recognitions. In addition to being a Top Ten winner in the Fibers & Insulation Category of ISPO Textrends Fall/Winter 2023/24, pure white CELLIANT has been shortlisted in the Drapers Sustainable Fashion 2022 Awards. The company is sharing the spotlight with recognized brands such as H&M, Sweaty Betty and Timberland. According to Drapers, the leading authority on fashion retailing in the UK since 1887, which sponsors these awards annually, this year they received the most entries ever, making them very competitive.

To create pure white CELLIANT rPET fiber, Hologenix developed a strategic partnership with the Ireland-based Wellman International Limited, a fully owned subsidiary of Indorama Ventures. Indorama Ventures is investing $1.5 billion on sustainability initiatives, allowing them to recycle 50 billion PET bottles globally by 2025 to support the growth of the circular economy. Wellman International has been a pioneer of recycling technologies for almost 50 years, offering specialist solutions for the medical, hygiene, automotive, home care and apparel sectors.  

Pure white CELLIANT rPET fiber is sustainably manufactured, with a low-impact supply chain. It is achieved by embedding bioceramic materials, that are naturally derived and ethically sourced, into fibers, yarns and fabrics. Wellman International has converted 100% of pure white CELLIANT Polyester production into rPET. This conversion to rPET has been implemented across all CELLIANT product categories, replacing traditional polyester and dramatically enhancing CELLIANT’s sustainability initiatives.

Pure white CELLIANT is recognized as a Class 1 medical device in the European Union and is able to carry the CE mark. Like CELLIANT, pure white CELLIANT captures and converts body heat into infrared energy, powering bio-responsive textiles. This energy is reflected back to the body, resulting in increased local circulation and cellular oxygenation. These advantages have a variety of wellness benefits, including stronger performance, faster recovery and better sleep, as well as many functional properties such as thermoregulation, quick-dry properties and odor inhibition.  

Wellman International distributes pure white CELLIANT fibers across Europe, the Middle East, Africa, Asia and the USA.

Source:

Hologenix, LLC / Sarah P. Fletcher Communications

Archroma Launches Nylosan® (a) Archroma
Archroma launches long-awaited metal-free* and halogen-free* Nylosan® S navy and black colors for sportswear.
23.03.2022

Archroma Launches Nylosan®

  • Long-awaited metal-free* and halogen-free* NYLOSAN® S NAVY and BLACK COLORS for Sportwear
  • Iconic black and navy polyamides of major sportswear brands can finally be perfectly matched with safer dyestuffs
  • Significant resource savings when dyeing with Archroma new signature CONSCIOUSLY DEEP system

Archroma, a global leader in specialty chemicals towards sustainable solutions, today announced the addition of two new metal-free* and halogen-free* acid dyes in its Nylosan® S range.

Dark shades represent approximately 80% of the outdoor and sportswear textile market, which is also under pressure to offer more sustainable articles. In this context, the new Nylosan® Navy S-3R and Black S-3N, especially developed by Archroma for polyamides and blends, meet four long-standing market demands for blacks and navies.

  • Long-awaited metal-free* and halogen-free* NYLOSAN® S NAVY and BLACK COLORS for Sportwear
  • Iconic black and navy polyamides of major sportswear brands can finally be perfectly matched with safer dyestuffs
  • Significant resource savings when dyeing with Archroma new signature CONSCIOUSLY DEEP system

Archroma, a global leader in specialty chemicals towards sustainable solutions, today announced the addition of two new metal-free* and halogen-free* acid dyes in its Nylosan® S range.

Dark shades represent approximately 80% of the outdoor and sportswear textile market, which is also under pressure to offer more sustainable articles. In this context, the new Nylosan® Navy S-3R and Black S-3N, especially developed by Archroma for polyamides and blends, meet four long-standing market demands for blacks and navies.

  • First, the Nylosan® S range offers metal-free* alternatives to dyestuff generally used to dye polyamide and nylon and which usually contain metals. The new Nylosan® Navy S-3R and Black S-3N are taking the industry standard one step further by offering a halogen-free* option to those manufacturers, brands and retailers who are looking to offer the safest grade available.
  • Second, the Nylosan® S range now comprises a wide gamut of colors, with these new dyes targeting the color matching and fastness specifications of the iconic blacks and navies of major sportswear brands. In order to support this color matching process, Archroma makes available the colorimetric dye primaries for the mills in order to (re)match the color standards.
  • Third, the new navy and black dyes display the same color constancy as the dyes used in many leading color standards, which means the navy and black colors created with Nylosan® S range will be non-metameric to the color standard under multiple light sources, whether artificial or natural, indoor or outdoor.
  • And fourth, the introduction of the new Nylosan® Black S-3N makes dyeing a metal-free* black on polyamide finally possible – something that was not available before.

Both dyes display the other usual features allowed of the Nylosan® S range, i.e., high fastness and buildup, and a wide shading gamut for industry-leading metal-free* acid dyes. They are REACH registered and bluesign® approved.

In addition, with the new Nylosan® Navy S-3R and Black S-3N at the core of its new CONSCIOUSLY DEEP system, Archroma is offering another very welcome benefit in the production of polyamide articles: resource saving. As most sportswear manufacturers and brands know, creating durable dark colors on nylon is a complex process that uses massive amounts of water and energy. Archroma therefore designed the new CONSCIOUSLY DEEP system to allow a highly efficient scour dyeing process reduced from 6 to 2 baths. This results into reducing the process time by up to 36%, water consumption by up to 64%, energy by up to 46%, and CO2 emissions by up to 41% compared to conventional benchmark process.

Source:

EMG

13.12.2021

NCTO: US Vice President announces new Investments in Northern Central America

US Vice President Kamala Harris announced significant multimillion-dollar investments by Parkdale Mills and six other companies today, as part of the Administration’s Call to Action to the private sector to promote economic opportunity in the region, as her office works to address the root causes of migration.

Vice President Harris, who is overseeing diplomatic efforts with El Salvador, Guatemala, Honduras, and Mexico, announced several private sector commitments to strengthen economic opportunities in the Northern Triangle and made remarks at a White House roundtable, which included Anderson Warlick, Chairman and CEO of Parkdale Mills. The textile and apparel co-production chain is one of the most essential supply chains for employment and economic development in both the United States and the Northern Triangle region, currently supporting over 1 million jobs in the United States and the Central American region. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and its strong rules of origin are the primary reasons this co-production chain exists, which is seeing significant growth this year.

US Vice President Kamala Harris announced significant multimillion-dollar investments by Parkdale Mills and six other companies today, as part of the Administration’s Call to Action to the private sector to promote economic opportunity in the region, as her office works to address the root causes of migration.

Vice President Harris, who is overseeing diplomatic efforts with El Salvador, Guatemala, Honduras, and Mexico, announced several private sector commitments to strengthen economic opportunities in the Northern Triangle and made remarks at a White House roundtable, which included Anderson Warlick, Chairman and CEO of Parkdale Mills. The textile and apparel co-production chain is one of the most essential supply chains for employment and economic development in both the United States and the Northern Triangle region, currently supporting over 1 million jobs in the United States and the Central American region. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and its strong rules of origin are the primary reasons this co-production chain exists, which is seeing significant growth this year.

North Carolina-headquartered Parkdale Mills, one of the largest manufacturers of spun yarn and cotton consumer products in the world, will make a multimillion-dollar investment in a new yarn spinning facility in Honduras and make an additional substantial investment to support existing operations in Hillsville, Virginia. This investment will help customers shift 1 million pounds of yarn per week away from supply chains in Asia and China and enhance U.S. and CAFTA-DR co-production resilience and increase regional product offerings. Parkdale’s announced investment will create hundreds of jobs in Honduras and further support hundreds of employees in Parkdale’s Hillsville operations.  

Recently, administration officials from the U.S. Trade Representative’s office and the Vice President’s office met with the U.S. textile industry to reaffirm the importance of rules of origin in nearshoring production chains, helping address labor and environmental challenges and mitigating supply chain risk.

“I would like to sincerely thank Vice President Harris for making this announcement and leading the effort with private industry to create more economic opportunities in northern Central America and the United States,” said Anderson Warlick, Chairman and CEO of Parkdale Mills. “Parkdale’s investments will support good paying jobs in the United States and in the Central American region and significantly increase our extensive product offering and capacity, including the production of sustainable specialty yarns.

Parkdale sees an enormous opportunity for brands and retailers to re-shore and nearshore production supply chains and double the size of U.S.-CAFTA-DR trade, because of the rules of origin in our trade agreement and a shift in sourcing by brands and retailers mitigating their supply chain sourcing risks.  We are excited about what this opportunity means for jobs in the U.S. and the region for this critical production chain and couldn’t be more thrilled to be part of this effort.  We look forward to working with the Vice President and her team on strengthening the textile and apparel production chains in the U.S. and region.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas, said, “This is an exciting and important announcement by Parkdale and Vice President Harris. Our industry has invested billions of dollars in the U.S. and in the region as a result of the investment-based rules of origin in the CAFTA-DR agreement, which ensures the job benefits of the agreement are reserved for the parties to the agreement.  Additional substantial announcements on further investment in textile and apparel production are expected soon.

As brands and retailers are seeking more environmentally sustainable, vertically integrated, transparent, and quick turnaround supply chains, our collective industries stand ready to work with companies that are seeking to mitigate sourcing strategies as Asian supply chains have faced enormous production constraints.  Further verticalization in the industry, like Parkdale’s announcement today, allows broader product diversification and grows jobs across the textile and apparel production chain.

We are thrilled with today’s announcement because it is a win-win for American and Central American workers and our environment and a huge opportunity to further recalibrate supply chains out of China and Asia. This valuable co-production chain between the U.S. and the CAFTA-DR region accounts for $12 billion in two-way trade and billions of dollars of investment. Significant growth is occurring in our sector and is expected to continue as supply chains continue to recalibrate.  We are delighted about this today’s announcement and appreciate the Administration’s strong support.”

01.12.2021

Aeon Debuts First-Ever Clothing In Pure White Celliant

  • CELLIANT®, Hologenix’s flagship product, makes impact in pure white color

 
Aeon, the largest retailer in Asia, is introducing “Recovery Wear,” called TOPVALU SELECT CELLIANT – undershirts – using the first-ever CELLIANT® fibers from Hologenix that are pure white in color.  It will be available in about 350 stores throughout Japan and at Aeon’s official online store, Aeon Style Online.  Aeon is expecting sales of TOPVALU SELECT CELLIANT to increase substantially by 2025.
 
TOPVALU SELECT CELLIANT offers the benefits of CELLIANT, a responsive textile that captures and converts body heat into infrared, with the pure white color Aeon customers have requested.
 
Many men prefer to wear white undershirts under their business shirts in Japan. In response to such demands, AEON planned and developed the pure white CELLIANT undershirt for the first time.  TOPVALU SELECT CELLIANT is registered as a general medical device in Japan.

  • CELLIANT®, Hologenix’s flagship product, makes impact in pure white color

 
Aeon, the largest retailer in Asia, is introducing “Recovery Wear,” called TOPVALU SELECT CELLIANT – undershirts – using the first-ever CELLIANT® fibers from Hologenix that are pure white in color.  It will be available in about 350 stores throughout Japan and at Aeon’s official online store, Aeon Style Online.  Aeon is expecting sales of TOPVALU SELECT CELLIANT to increase substantially by 2025.
 
TOPVALU SELECT CELLIANT offers the benefits of CELLIANT, a responsive textile that captures and converts body heat into infrared, with the pure white color Aeon customers have requested.
 
Many men prefer to wear white undershirts under their business shirts in Japan. In response to such demands, AEON planned and developed the pure white CELLIANT undershirt for the first time.  TOPVALU SELECT CELLIANT is registered as a general medical device in Japan.
CELLIANT mineral-infused fabrics have been shown to help regulate body temperature and improve local circulation in healthy individuals for faster recovery, better sleep and stronger performance during the day.
 
“We are very excited by the introduction of the first-ever CELLIANT product in pure white,” said Seth Casden, Hologenix Co-Founder and CEO. “Achieving this pure white color took a lot of dedicated effort from our global research team and we commend Aeon for being the first to introduce it to the consumer market.”

More information:
Aeon Celliant Hologenix
Source:

Celliant

03.11.2021

Lenzing: Earnings more than doubled in first nine months of 2021

The Lenzing Group reported a significant year-on-year improvement in revenue and earnings in the first nine months of 2021 thanks to the largely positive market environment. Growing optimism in the textile and apparel industry and the recovery in retail led to a substantial increase in demand and prices on the global fiber market, particularly at the start of the current financial year.

Revenue rose by 32.9 percent to EUR 1.59 bn in the first nine months of 2021. This increase is attributable to a higher sales volume as well as higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibers, especially in Asia. The focus on wood-based specialty fibers such as the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on the revenue trend; the share of specialty fibers in fiber revenue amounted to 72.4 percent in the reporting period. This more than offset the negative impact of less favorable currency effects.

The Lenzing Group reported a significant year-on-year improvement in revenue and earnings in the first nine months of 2021 thanks to the largely positive market environment. Growing optimism in the textile and apparel industry and the recovery in retail led to a substantial increase in demand and prices on the global fiber market, particularly at the start of the current financial year.

Revenue rose by 32.9 percent to EUR 1.59 bn in the first nine months of 2021. This increase is attributable to a higher sales volume as well as higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibers, especially in Asia. The focus on wood-based specialty fibers such as the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on the revenue trend; the share of specialty fibers in fiber revenue amounted to 72.4 percent in the reporting period. This more than offset the negative impact of less favorable currency effects.

The earnings performance essentially reflects the positive market trend and was additionally reinforced by efficiency-enhancement measures. Energy, raw material and logistics costs increased significantly during the entire reporting period. EBITDA (earnings before interest, tax, depreciation and amortization) more than doubled to EUR 297.6 mn in the first nine months of 2021 (compared to EUR 138.5 mn in the first nine months of 2020). The EBITDA margin rose from 11.6 percent to 18.7 percent. Net profit for the period amounted to EUR 113.4 mn (compared to a net loss of EUR minus 23.3 mn in the first nine months of 2020) and earnings per share to EUR 3.77 (compared to EUR minus 0.1 in the first three months of 2020).

More information:
Lenzing Group
Source:

Lenzing AG

(c) lululemon
18.08.2021

Genomatica partners with lululemon bring bio-nylon to apparel

  • Renewably Sourced Materials to Help Replace Petrochemicals in Apparel for a Healthier Planet

lululemon athletica inc. (NASDAQ:LULU) announced a multi-year collaboration with sustainable materials leader Genomatica to bring renewably-sourced, bio-based materials into lululemon’s products. This represents lululemon’s first-ever equity investment in a sustainable materials company and Genomatica’s largest partnership within the retail industry. Together, the two companies will create a lower-impact, plant-based nylon to replace conventional nylon, which is the largest volume of synthetic material currently used to make lululemon products.

Genomatica uses biotechnology and fermentation to convert plant-based ingredients into widely used chemical building blocks, like those used to make nylon. These building blocks are converted to pellets and yarns, and the companies will be working closely with lululemon’s fabric supply chain to incorporate this material into future products. Through this collaboration, the companies seek to create positive change within the $22B global nylon market by building more sustainable supply chains.  

  • Renewably Sourced Materials to Help Replace Petrochemicals in Apparel for a Healthier Planet

lululemon athletica inc. (NASDAQ:LULU) announced a multi-year collaboration with sustainable materials leader Genomatica to bring renewably-sourced, bio-based materials into lululemon’s products. This represents lululemon’s first-ever equity investment in a sustainable materials company and Genomatica’s largest partnership within the retail industry. Together, the two companies will create a lower-impact, plant-based nylon to replace conventional nylon, which is the largest volume of synthetic material currently used to make lululemon products.

Genomatica uses biotechnology and fermentation to convert plant-based ingredients into widely used chemical building blocks, like those used to make nylon. These building blocks are converted to pellets and yarns, and the companies will be working closely with lululemon’s fabric supply chain to incorporate this material into future products. Through this collaboration, the companies seek to create positive change within the $22B global nylon market by building more sustainable supply chains.  

More information:
lululemon Genomatica bio-based nylon
Source:

Method Communications

Photo: Pixabay
16.08.2021

Hohenstein: New quantitative method to detect genetic modifications in organic cotton

There has been a sharp rise in demand for organic cotton products. Compared to conventionally grown cotton, the cultivation of organic cotton requires the renunciation of genetically modified seeds, chemical pesticides or fertilisers. Nevertheless, genetic modifications are repeatedly found in textiles that are falsely labelled with organic claims. Often, available certification systems are not backed up by lab testing. At best, they only take random seed samples. Textile testing specialist, Hohenstein, has developed an assessment method specifically for cotton. This new DNA analysis method makes it possible to ascertain the amount of genetically modified cotton contained in products. This is good news for textile industry stakeholders who will be on the safe side in terms of quality control and labelling of organic cotton products.

There has been a sharp rise in demand for organic cotton products. Compared to conventionally grown cotton, the cultivation of organic cotton requires the renunciation of genetically modified seeds, chemical pesticides or fertilisers. Nevertheless, genetic modifications are repeatedly found in textiles that are falsely labelled with organic claims. Often, available certification systems are not backed up by lab testing. At best, they only take random seed samples. Textile testing specialist, Hohenstein, has developed an assessment method specifically for cotton. This new DNA analysis method makes it possible to ascertain the amount of genetically modified cotton contained in products. This is good news for textile industry stakeholders who will be on the safe side in terms of quality control and labelling of organic cotton products.

First step: qualitative screening and identification. Second step: quantification of genetically modified cotton.
For qualitative screening, Hohenstein experts had developed molecular biological detection systems to make clear yes/no statements about genetically modified cotton. Testing can be applied to all kinds of materials, from raw cotton to chemically untreated yarns and fabrics. In addition, Hohenstein is one of only a few laboratories in the world accredited to test for GMOs in accordance with the ISO/IWA 32:2019 protocol. Its method provides reliable evidence of the presence or exclusion of genetic modification in cotton textile precursors.

Once qualitative proof of genetic modification is obtained, Hohenstein experts begin quantifying the type and extent of the genetic modifications. To do this, they use DNA analysis to search for different cotton lines known to contain genetic alterations and quantify the proportion. Only by pinpointing individual genetic modifications and quantifying the extent of modification is it possible to provide precise information on whether there is an extremely small proportion of contamination, or whether larger proportions of GMOs have been mixed in. This offers clear benefits to manufacturers, brand owners and retailers when it comes to supply chain transparency and fraud prevention.

Source:

Hohenstein Laboratories GmbH & Co. KG.

04.08.2021

Lenzing: Earnings more than doubled in the first half of 2021

  • Strong operating result: EBITDA at EUR 217.8 mn, cash flow from operating activities at EUR 199.8 mn
  • Major strategic projects continue fully on track – production start of the lyocell plant in Thailand in the fourth quarter of 2021
  • Start of strategic cooperation agreement for textile recycling with Södra
  • New milestones in the implementation of group-wide carbon neutrality: EUR 200 mn investment in existing locations in Asia
  • Guidance 2021: Lenzing expects EBITDA of at least EUR 360 mn

The Lenzing Group reported a significant improvement in revenue and earnings in the first half of the year. Growing optimism in the textile and apparel industry and the ongoing recovery in retail caused a substantial increase in demand and prices on the global fiber market, in particular at the beginning of the current financial year.

  • Strong operating result: EBITDA at EUR 217.8 mn, cash flow from operating activities at EUR 199.8 mn
  • Major strategic projects continue fully on track – production start of the lyocell plant in Thailand in the fourth quarter of 2021
  • Start of strategic cooperation agreement for textile recycling with Södra
  • New milestones in the implementation of group-wide carbon neutrality: EUR 200 mn investment in existing locations in Asia
  • Guidance 2021: Lenzing expects EBITDA of at least EUR 360 mn

The Lenzing Group reported a significant improvement in revenue and earnings in the first half of the year. Growing optimism in the textile and apparel industry and the ongoing recovery in retail caused a substantial increase in demand and prices on the global fiber market, in particular at the beginning of the current financial year.

Revenue rose by 27.5 percent to EUR 1.03 bn in the first half of 2021. This increase is primarily attributable to higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibers, especially in Asia. The focus on wood-based specialty fibers such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on the revenue development; the share of specialty fibers in fiber revenue rose to 72.8 percent in the reporting period. The negative impact of more unfavorable currency effects was consequently more than offset.

The earnings development essentially reflects the positive market development and was additionally reinforced by measures to improve efficiency. Energy and logistics costs increased significantly throughout the entire reporting period. EBITDA (earnings before interest, tax, depreciation and amortization) more than doubled and amounted to EUR 217.8 mn in the first half of 2021 (compared to EUR 95.6 mn in the first half of 2020). The EBITDA margin rose from 11.8 percent to 21.1 percent. Net profit for the period amounted to EUR 96.1 mn (compared to a net loss of EUR minus 14.4 mn in the first half of 2020) and earnings per share to EUR 3.06 (compared to EUR 0.06 in the first half of 2020).

“Lenzing had a very strong first half-year. The demand for our sustainably produced specialty fibers once again developed excellently,” says Stefan Doboczky, CEO of the Lenzing Group.

Source:

Lenzing AG