From the Sector

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.

• Members of TMAS – the Swedish textile machinery association – have adopted a range of new strategies in response to the Covid-19 pandemic, aimed at assisting manufacturers of textiles and apparel to adjust to a new normal, as Europe and other regions emerge cautiously from lockdown.

“Many European companies have been forced into testing new working methods and looking at what it’s possible to do remotely, and how to exploit automation to the full, in order to become more flexible,” says TMAS Secretary General Therese Premler-Andersson. “Others have been taking risks where they see opportunies and there’s a new sense of solidarity among companies.

“It’s extremely encouraging, for example, that over five hundred European companies from across our supply chain are reported to have responded to the shortages of facemasks and PPE – protective personal equipment – by converting parts of their sites or investing in new equipment.”

New supply chains

Amongst them are TMAS members of the ACG Group, who quickly established a dedicated new nonwovens fabric converting and single-use garment making-up plant to supply to the Swedish health authorities. From a standing start in March, this is now producing 1.8 million square metres of converted fabric and turning it into 692,000 finished medical garments each month.

“In 2020 so far, we have seen new value chains being created and a certain amount of permanent reshoring is now inevitable,” says Premler-Andersson. “This is being backed by the new funding announced in the European Union’s Next Generation EU plan, with €750 billion marked for helping industry recover. As the European Commission President Ursula von der Leyen has stressed, “green and digital” transitions hold the key to Europe’s future prosperity and resilience, and TMAS members have new solutions to assist in both areas.”

Remote working

Automated solutions have opened up many possibilities for remote working during the pandemic. Texo AB, for example, the specialist in wide-width weaving looms for the paper industry, was able to successfully complete the build and delivery of a major multi-container order between April and May.

“Our new Remote Guidance software now makes it possible for us to carry out some of the commissioning and troubleshooting of such new lines remotely, which has been helpful” says Texo AB President Anders Svensson.

Svegea of Sweden, which has spent the past few months developing its new CR-210 fabric relaxation machine for knitted fabrics, has also successfully set up and installed a number of machines remotely, which the company has never attempted before.

“The pandemic has definitely led to some inventive solutions for us and with international travel currently not possible, we are finding better methods of digital communication and collaboration all the time,” says Svegea managing director Hakan Steene.

Eric Norling, Vice President of the Precision Application business of Baldwin Technology, believes the pandemic may have a more permanent impact on global travel.

“We have now proven that e-meetings and virtual collaboration tools are effective,” he says. “Baldwin implemented a home office work regime from April with only production personnel and R&D researchers at the workplace. These past few months have shown that we can be just as effective and do not need to travel for physical meetings to the same extent that was previously thought to be necessary.”

Pär Hedman, Sales and Marketing Manager for IRO AB, however, believes such advances can only go so far at the moment.

“Video conferences have taken a big leap forward, especially in development projects, and this method of communication is here to stay, but it will never completely replace personal meetings,” he says. “And textile fabrics need to be touched, examined and accepted by the senses, which is impossible to do via digital media today. The coming haptic internet, however, may well even change that too.”

Social distancing

The many garment factories now equipped with Eton Systems UPS work stations – designed to save considerable costs through automation – have meanwhile benefited from the unintentional social distancing they automatically provide compared to factories with conventional banks of sewing machines.

“These companies have been able to continue operating throughout the pandemic due to the spaced nature of our automated plant configurations,” says Eton Systems Business Development Manager Roger Ryrlén. “The UPS system has been established for some time, but planned spacing has proved an accidental plus for our customers – with improved productivity.”

“Innovations from TMAS member companies have been coming thick and fast recently due to their advanced know-how in automation concepts,” Premler-Andersson concludes.  “If anything, the restrictions imposed by the Covid-19 pandemic have only accelerated these initiatives by obliging our members to take new approaches.”

• Since the end of March 2020, COVID-19 has led to very low demand in all Business Groups
• Comprehensive crisis management implemented
• Loss in the mid double-digit million range expected in the first half of 2020
• Plans to introduce short-time working to adjust capacity in Switzerland and Germany
• Strategy will continue to be implemented

Due to COVID-19, a large number of spinning mills have stopped production worldwide. Since the end of March 2020, this has led to low demand for spare parts and wear & tear parts and delays in testing programs during the development of new machines. Customers are postponing investment projects or unable to implement them due to restrictions imposed by national governments. This results in low demand for new machines.

Comprehensive crisis management
Rieter has implemented comprehensive crisis management. Priorities are being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide.
The order backlog of well in excess of CHF 500 million is being processed largely according to plan, despite the existing bottlenecks in the supply chains. Less than 5% of the orders in the order backlog have been canceled.
Rieter has already implemented measures to ensure liquidity and reduce costs. The company has good net liquidity and undrawn credit lines in the mid three-digit million range.
Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level.

Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level. The effects of COVID-19 will place an additional burden on the first half of 2020. Rieter therefore expects sales in the first half of 2020 to be less than CHF 300 million. Despite the countermeasures implemented at the net profit level, this will lead to a loss in the mid double-digit million range.

Plans to introduce short-time working to adjust capacity
Rieter plans to apply for short-time working for the areas with forecasted low capacity utilization at the locations in Switzerland and Germany. The application will be for 40% short-time working in the third quarter of 2020. Talks with staff representatives will begin next week.
As a sign of solidarity, Rieter’s Board of Directors, Group Executive Committee and the senior management will waive 10%-20% of their salaries temporarily.

Implementation of the strategy
In recent years, Rieter has consistently implemented the strategy based on innovation leadership, strengthening the business in components, spare parts and services and the adjustment of cost structures. The company intends to forge ahead with the implementation of the strategy in the coming months, thus strengthening its market position for the time after the COVID-19 pandemic.
The next information on the course of business is planned with the publication of the half-year results on July 16, 2020
 

Protective masks for Europe
With FleeceforEurope and Lindenpartner, Düsseldorf-based Kloepfel Group purchasing consultancy and Berlin-based industrial consultancy Bechinger & Heymann Holding plan to manufacture and distribute up to 50 million protection class FFP1 through FFP3 respiratory masks a month exclusively for the European market from the beginning of fall. And the primary focus will be on quality.
With protective masks – including those used in operating rooms – this quality is provided above all by  virus-absorbing nonwovens. And these will be manufactured by ‘FleeceforEurope’ using an Oerlikon Nonwoven meltblown system.
But masks effectively protecting against infections can only be guaranteed with the right quality. A crucial factor in this is the inside of the mask. Because the nonwoven used in protection class FFP1 through FFP3 respiratory masks plays a decisive role.
Here, the meltblown technology from Oerlikon Nonwoven will be deployed. In a special, patented process, the fibers laid into a nonwoven fabric during manufacture are subsequently electrostatically-charged, before the material is further processed downstream.

European market for protective masks with a promising future
Those responsible at Oerlikon Nonwoven and FleeceforEurope, which will primarily focus on producing high-end nonwovens, and Lindenpartner, which will manufacture and distribute the protective masks, are certain of one thing: the market for protective masks has a very promising long-term future in Europe.
What has been commonplace in Asia for many years now will also become normal in Europe. People will be increasingly wearing face masks when venturing out, in order to better protect themselves against health risks such as the current pandemic and also against increasing environmental pollution in the form of  fine particles and exhaust fumes in the future. A

Medical face masks from a vending machine
Mask producer Lindenpartner has already secured supplies of nonwovens and will be producing face masks for the European healthcare sector over the coming weeks. To fight the coronavirus pandemic, Lindenpartner is planning to install 100 self-service face mask vending machines in Germany over the next four weeks, positioning them in publicly-accessible places such as shopping centers and airports, for example.

• The “Newcomer Award” will still be presented at the 8th Convention & Fair for Hightech Textiles
• Chemnitz organisers considering forward-looking forums using the “mtex+” brand

The 8th mtex+ Convention & Fair for Hightech Textiles, which was scheduled to be held on 9-10 June 2020, will not take place because of the corona crisis. “We’ve made this decision following in-depth consultations with the members of the advisory board who are working in the textile sector; they were also opposed to moving the date to the autumn because of the unforeseeable consequences arising from the crisis,” says  André Rehn, Head of Sales for Trade Fairs & Congresses at the organiser, C³ GmbH, Chemnitz.

“Cancelling the event is a particularly severe blow for us, as the “mtex+” was supposed to be held with a modernised concept and a very attractive programme at our new Carlowitz Congresscenter at the heart of Chemnitz for the first time. The considerable economic loss associated with this is naturally painful for us too. However, we will be presenting our “mtex+” “Newcomer Award” to the prize-winners at the next possible, suitable opportunity. 15 students and graduates from all over Germany have taken part in the young people’s competition with creative ideas for recycling, upcycling and downcycling textiles. We’re also now considering special events, which could operate using our well-known “mtex+” brand in future. Sustainability in the textile value-added chain as well as health and protective textiles made by the domestic market are obvious, forward-looking topics in this field.”

 The PREMIUM GROUP in Berlin is cancelling its PREMIUM and SEEK trade shows for this summer season, as well as the FASHIONTECH conference – in collaboration with digital B2B marketplace, JOOR, there is still a guaranteed trading option.

Due to the coronavirus crisis, in April the dates of the PREMIUM GROUP’s events were provisionally moved from the original schedule of 31 June-2 July 2020 to 28 -30 July.  Now, the Federal and State governments have decided to cancel large-scale events with over 1,000 visitors until 31 August 2020.

• Diana, Giusy, Simona and Marina. The call to action of the fashion world was born from four women engaged in the field of sustainability. On the occasion of Fashion Revolution Week, we tell you their story and the results achieved

A task force of Italian textile companies active in our area supported the first call to action launched at the fashion world by four women who have always been involved in the field of sustainability. The appeal launched on March 19th by the green journalist Diana de Marsanich, Giusy Bettoni, founder and CEO of C.L.A.S.S. (Creativity Lifestyle and Sustainable Synergy)the eco multi-platform hub specialized in integrating a new generation of eco values into fashion, products and companies, Simona Roveda, Editorial Director and Director of Institutional Communication of LifeGate and Marina Spadafora, Italian Country Coordinator of Fashion Revolution and currently collaborating with Luxury Fashion Brands to implement responsible strategies in their companies have luaunched a call-to-action project which has brought together textile companies to manufacture PPE garments for the medical staff working in San Gerardo Hospital in Monza, near Milan.

The companies that answered the call-to-action are: Filo d’Oro, Mantero, ROICA™ by Asahi Kasei, C.L.A.S.S. (Creativity Lifestyle and Sustainable Synergy) e Zerobarracento, Iluna Group, Lg Electronics, Jimmy Lion, Personal Genomics, Isamar Holyday Village, Marcolin Eyewear, Maglificio Ripa.

During the last weeks the 4 women collected about 1,800 non-drip cotton and non-woven TNT gowns for sanitary use, about 400 protective masks for multipurpose washable, bacteriostatic, breathable and water-repellent prevention, 1,000 washable cotton surgical caps, 150 complete protective googles eye masks, two microwave ovens for hospital departments to offer support to medical and healthcare personnel by helping them in the few breaks during the grueling shifts of this period, a supply of samples of cotton socks, 300 cotton masks + polyester outer layer, water-repellent and antibacterial, and free weekly stays made available to doctors, nurses, civil protection personnel and families with related children involved in the Covid-19 pandemic.

Staggered in terms of timing and with varying magnitude, the global spread of coronavirus is impacting the development of the regional economies in the core markets of the Manmade Fibers segment of the Swiss Oerlikon Group.
The sales markets for manmade fiber systems and equipment have been primarily located in China, India and Turkey for many years now. Together, these markets – above all China – make up the lion’s share of the project landscape at Oerlikon Manmade Fibers. And this is paying positive dividends at the moment. Because the production facilities of the major manmade fiber manufacturers in
China have been systematically fired up again over the past few weeks, with capacity utilization increasing consistently.

Going against the flow
The Segment CEO, Georg Stausberg explains the reason: “Long before the coronavirus situation developed, the major manmade fiber manufacturers in China had decided to reverse-integrate their production chains to include petrochemicals in order to expand their portfolios with targeted investments, to reduce their dependence on a ,single product’, to optimize their costs and ultimately to acquire greater control over margins in a global volume business”.
Similar processes and decisions – albeit not on the same scale as in China – have also
been detected at the large manmade fiber manufacturers in India and Turkey. Even though businesses in India and Turkey are presently still temporarily severely impacted by the coronavirus situation, their long-term commitment cannot however be questioned, as the company-internally-agreed plans will be systematically implemented moving forward.

Long-term investments of global market players
All this has recently resulted in increased demand for spinning and texturing systems – just like those supplied by total solutions provider Oerlikon Manmade Fibers with its
Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven product brands.
“The investments in petrochemical systems are based on long-term strategic considerations and are resulting – even during the coronavirus pandemic – neither in short- and medium-term economic dips, nor in changed customer behavior. (...)”, states Segment-CEO Georg Stausberg.
As a result of Oerlikon Manmade Fibers delving into the digital age years ago, the segment has experienced the intensive and short-term benefit from all the measures, in part also in its processing of customer projects.

In the current fight against Covid-19, a number of formulators of textile finishing chemicals have rushed out new antiviral and antimicrobial treatments intended for PPE (personal protective equipment) such as face masks and medical gowns and drapes.

These finishing chemicals have naturally already been thoroughly tested in laboratories and their effectiveness verified at laboratory or pilot scale. However, they are new to many manufacturers of textiles and nonwovens now preparing to use them on an industrial level.

A lot of companies changed, due to the current situation their usual manufacturing programmes to the production of PPE items. “We have experts on hand at our operational Advanced Technology Centre (ATC) here in Germany, to help any of our customers to rapidly transition to new finishing techniques and treatments they may not be familiar with, and to run trials on their behalf, should they require this assistance.”, states the vice president of Monforts, Klaus Heinrichs.

The three lines at the ATC situated at the Monforts HQ in Mönchengladbach, are of a true industrial scale and trialling new products on them goes beyond lab or pilot plant testing to rapidly identify any problems that might occur once full production is underway.

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, voicing concern over the administration’s executive order instituting a non-reciprocal 90-day deferral on certain tariffs.
The temporary postponement of duties does not apply to products with antidumping or countervailing duties or those products subject to penalty duties under Section 232, 201 and 301.

“At a time when domestic textile producers and its workforce have mobilized to transform their production lines to manufacture the personal protective equipment (PPE) supplies for frontline healthcare and medical workers fighting the COVID-19 pandemic, the administration’s decision to defer duties for 90 days on the vast majority of products imported into the United States is counterproductive.
This move contradicts the administration’s top stated priority of rebuilding American manufacturing and buying American and could have severe negative implications for the entire U.S. textile industry, whose companies and workforce already are facing enormous economic hardship.
We support the need to temporarily eliminate barriers to the entry of emergency medical supplies and certain PPE inputs tied directly to the COVID-19 response. But make no mistake, the key drivers behind efforts to defer tariffs have nothing to do with facilitating access to PPE products or stopping the spread of COVID-19.
Our industry is being asked to do extraordinary things.  We are heeding that call, but we need help to ensure the supply chains we are creating overnight don’t evaporate tomorrow.  We need strong procurement policies and additional funding for our industries to ramp up and retool – not further measures that incentivize offshore production. We need to maximize the U.S. domestic production chain right now to every extent possible in helping fight COVID-19 and make the products American frontline workers desperately need.  

We need to provide immediate and substantial relief to our manufacturing sector and their workforce who are suffering enormously right now. It’s critical that we have a long-term U.S. government plan to ensure that we aren’t relying on offshore producers to make medically necessary, live-saving PPE.  We shouldn’t be providing handouts to reward the very companies that helped offshore these industries so many years ago.

Tariffs are one of the few mechanisms in place to help partially address the challenges U.S. manufacturers face in competing with imports from countries with exceptionally low wages, poor working conditions, and minimal environmental and safety standards.”, states the NCTO.