From the Sector

The National Council of Textile Organizations (NCTO) commends the Senate for passing the Fiscal Year 2023 National Defense Authorization Act (NDAA), which includes a key provision aimed at spurring more government procurement of domestically produced essential products, providing a significant benefit to the U.S. textile industry.

“We applaud the Senate for getting the NDAA across the finish line today, and we are pleased the legislation will now go to President Biden for his signature,” said NCTO President and CEO Kim Glas. “The underlying NDAA conference report includes a critical bill known as the Homeland Procurement Reform (HOPR) Act, which establishes specific criteria that the Department of Homeland Security (DHS) must meet to procure more domestically manufactured uniforms, footwear, and related critical items by DHS agencies.”

“NCTO sincerely thanks the Warrior Protection and Readiness Coalition (WPRC) and the coalition of industry and labor groups who helped secure inclusion of the HOPR Act in the NDAA,” Glas said. “This common-sense bill will ensure that key divisions of the DHS can procure American-made critical uniforms and protective equipment to support the execution and enforcement of their missions.”

Glas added, “The importance of the domestic textile industry and a warm industrial base was heightened during the pandemic when the industry pivoted overnight to retool production lines to address severe shortages of lifesaving products. That experience demonstrated how imperative it is to build and expand a permanent domestic manufacturing base for our country’s health and national security. The HOPR Act is poised to provide a greatly needed demand signal to the U.S. manufacturing industry for expanded government procurement of American-made essential items, ranging from uniforms to footwear and body armor and helmets. It is a step in the right direction to further safeguard our national security from unreliable foreign supply chains in China and other countries for essential materials.”

Once signed into law, the new HOPR provisions will go into effect in 180 days.

INDA, the Association of the Nonwoven Fabrics Industry, has named MaryJo Lilly as its new Market Intelligence Leader. Lilly brings more than 20 years of nonwovens & engineered materials expertise with a background in the disposable, medical and specialty materials industries.

Before starting a consulting firm two years ago, Lilly was Regional Commercial Director of North America for Tredegar Film Products and before that, spent more than a decade as Vice President of Sales at Berry Global in the Health, Hygiene, and Specialties Division growing the personal care and medical markets.

Additionally, Lilly’s leadership experience includes Global Business Director at Clopay Plastic Products and Director of Sales and Marketing for Absorbent Materials at Rayonier Performance Fibers. Lilly holds a Ph.D. from the University of Pittsburgh.

With her industry knowledge and extensive network, Lilly will develop, issue and present reports, presentations and data to support INDA, member decision-making and the industry. She will, through collaboration with market participants and subject matter experts, develop and maintain relevant industry statistics, reports and surveys on the North American and worldwide markets by major segments and processing technologies.

INDA, the Association of the Nonwoven Fabrics Industry convened 500 absorbent hygiene and personal care professionals from 30 countries and throughout the supply chain to participate in the eighth edition of Hygienix™ – the premier event for absorbent hygiene & personal care markets – held in New Orleans, Louisiana, Nov. 14-17.

The program kicked off with recycling approaches for disposable absorbent hygiene waste, followed by business impacts of period product legislation and regulation, new menstrual products, consumer trends, and three finalist presentations for the 2022 Hygienix Innovation Award™.

The event also included presentations from 18 other industry experts along with 13 hours of scheduled face-to-face networking, and 50 tabletop display exhibits and banquet receptions on Tuesday and Wednesday nights.

One highlight of the event was the presentation of INDA’s prestigious Hygienix Innovation Award™ to Egal Pads for Pads on a Roll™ a wrapped super-thin absorbent period pad that dispenses like toilet paper in public bathroom stalls. The product aims to prevent the personal embarrassment of not having a menstrual product when needed.

INDA President Tony Fragnito presented the 2022 INDA Lifetime Service Award to Dave Rousse, INDA President Emeritus, for his long-established service to the nonwovens industry and INDA. Rousse led the acquisition of the INSIGHT conference, and combined the INDA Vision Conference to launch the Hygienix™ conference for the absorbent hygiene and personal care market in 2015, and initiated the purchase of INDA Media.

Hygienix™ 2023 will be held Nov 13-16, in New Orleans, Louisiana .

The Supervisory Board of adidas AG resolved upon the succession for adidas CEO Kasper Rorsted. Effective January 1, 2023, Bjørn Gulden is appointed as member of the Executive Board and CEO of adidas AG. Kasper Rorsted and the Supervisory Board mutually agreed that he will step down as CEO and leave the company upon expiry of November 11, 2022. Harm Ohlmeyer, Chief Financial Officer of adidas AG, will lead the company in the interim until December 31, 2022. The Supervisory Board had announced a CEO transition on August 22, 2022.

Bjørn Gulden is 57 years old, Norwegian and has been CEO of Puma SE since 2013. Bjørn Gulden looks back at a tenure at adidas as, amongst others, Senior Vice President of Apparel and Accessories from 1992 to 1999. Additionally, he was CEO of Danish jewelry brand Pandora, Managing Director of footwear retailer Deichmann, President of Rack Room Shoes, and held various management positions at outdoor apparel company Helly Hansen. He also holds the position of Chairman of the Board of Salling Group, Denmark’s largest food retailer.

“We are very pleased to welcome Bjørn Gulden back at adidas. Bjørn Gulden brings almost 30 years of experience in the sporting goods and footwear industry. As a result, he knows the industry extremely well and draws on a rich network in sport and retail. Bjørn Gulden already served adidas successfully for seven years in the 1990s. As CEO of Puma, he re-invigorated the brand and led the company to record results. The Supervisory Board of adidas AG is convinced that Bjørn Gulden will head adidas into a new era of strength and is looking very much forward to a successful cooperation,” said Thomas Rabe, Chairman of the Supervisory Board of adidas AG. 

Hosted outside of Copenhagen for the first time in its 13-year history, on 3 November, Global Fashion Summit assembled over 250 stakeholders representing manufacturers, garment workers, retailers, brands, suppliers, NGOs, policy, and innovators in Singapore and online to spur industry action. The Summit was presented by Global Fashion Agenda (GFA), the non-profit organisation that is accelerating the transition to a net positive fashion industry.
 
The latest edition of the Summit was centred around the theme ‘Alliances for a New Era’, building on dialogues from the June edition in Copenhagen and gathering leaders from across the entire value chain to elevate diverse voices and foster alliances within the fashion industry and beyond, to drive sustainable impact.
 
The Summit’s first international edition facilitated more conversations with manufacturer and supply chain voices to discuss crucial challenges and opportunities around working collaboratively with brands on equal terms. The programme featured bold panels, case studies, masterclasses and leadership roundtables reflecting on topics including ‘Data Scarcity: A Crisis of Measurement?’, ‘Disruption for Better Wage Systems’, ’Community and Circularity’, ‘Connecting the EU Textiles Strategy with the Value Chain’ and ‘Our Energy Transformation Moment’.
 
Attendees heard from over 50 speakers including H.E. Sandra Jensen Landi, Ambassador of Denmark to Singapore & Ambassador-Designate of Denmark to Brunei; H.E. Iwona Piórko, Ambassador of the European Union to Singapore; Anne-Laure Descours, Chief Sourcing Officer, PUMA; Baptiste Le Gal, Chief Revenue Officer APAC, Vestiaire Collective; Christian James Smith, Head of Sustainability Stakeholder Engagement, Zalando; Ninh Trinh, Director of Responsible Sourcing & Sustainability, Target; Roger Lee, CEO, TAL Apparel; Wilson Teo, President, Singapore Fashion Council; Edwin Keh, Chief Executive Officer, The Hong Kong Research Institute of Textiles and Apparel, Ashila Dandeniya, Founder, StandUp Lanka; and more.

Key takeaways and highlights from the event include:

• Global Fashion Agenda announced a new alliance with BBC Storyworks Commercial Productions to launch a film series on BBC.com, which is currently in the early stages of development. The new series will present human-centric stories focusing on both social and environmental sustainability in the fashion industry. It will be released to a wide audience in 2023.
• Federica Marchionni outlined the crucial need for accurate and robust data to substantiate sustainability claims and credentials but acknowledged that the focus on finding ‘perfect’ data cannot be allowed to stifle progress. Global Fashion Agenda will build upon Summit discussions to reflect on how the industry can accurately measure and communicate sustainability performance and illuminate the data credibility challenges.
• The session ‘Establishing circular fashion systems in Cambodia & Vietnam’ outlined the first steps taken by the Global Circular Fashion Forum to establish circular fashion systems in Vietnam and Cambodia with regional stakeholders, government, brand and manufacturer representation.
• Throughout the Summit, the Innovation Forum connected fashion companies with sustainable solution providers. Exhibitors included Better Work , Circular Fashion Partnership, Compreli, Kno Global, Planatones by Noyon Lanka, Redress Design Award and The ID Factory.
• Through conversations such as ‘Disruption for Better Wage Systems’ and ‘Empowering the Worker Majority’, there was a resounding message for people to consider the real people in the value chain. Ensuring dignified livelihoods for these workers should have the same sense of urgency as emissions reductions. 

• European textile industry needs to prepare for a paradigm shift, and become global leader in sustainable textiles

Organised by EURATEX in partnership with the Portuguese Textile Association (ATP), the Porto Convention – Sustainability meets Competitiveness: How to Square the Circle? – took place on 13-14 October in Porto, Portugal, with nearly 250 entrepreneurs attending from all over Europe. They discussed the current challenges of the European textile industry and set the grounds for a bright future, based on some strong foundations: innovation, creativity, quality and sustainability.

In his keynote speech, Mr. Pedro Siza Vieira, Former Minister for the Economy and Digital Transition of Portugal, assessed the geopolitical and macroeconomics changes, and how this will impact on the future of the textile industry: nearshoring and friend-shoring, independence from foreign gas through the use of European sustainable energy, as well as circular and automated production lines. While the current turbulence causes uncertainty, he sees a better future for our industry.

The first CEO Panel, addressing the theme of How to Measure and Communicate about Sustainability, focused on the challenges to translate “sustainability” towards the consumers. The panel addressed the issue of greenwashing and the role of brands in communicating about sustainability. It looked at how the new European Commission regulations on eco-label, digital product passport (DPP) and product environmental footprint (PEF) will create a new framework.

The second CEO Panel, discussing Financing Sustainability, looked at the cost of sustainable investments, and how this cost should be managed within the entire supply chain, including the brands and retailers.

Four workshops with industry experts followed in the afternoon, addressing the themes of Extended Producer Responsibility (EPR) in Textiles, Digital Product Passport (DPP), Recycling Textile Waste and Labelling Textiles (Product Environmental Footprint). As these initiatives will roll out in the coming years – as part of the EU Textile Strategy – participants got a better understanding of the future framework for our industry.

Dirk Vantyghem, Director General of EURATEX, commented on this: “to prepare for a brighter future requires a new regulatory framework, where quality and durability become the norm, where transparency and sustainability is rewarded, where free riders – who do not comply with rules and standards – are kept outside the market. The EU Textile Strategy aims at creating such a framework, which must be fair and balanced, and requires a close and constant dialogue between the regulator and the industry.”

During the 2nd day of the convention, participants had the opportunity to visit state of the art textile companies (Têxteis J.F. Almeida, RIOPELE, and TMG Automotive) and the Portuguese textile  research centre CITEVE. They showcased how the Portuguese textile industry is making this transition, while remaining globally competitive.

Alberto Paccanelli, President of EURATEX, concluded: “We need to attract creative people in our companies, we need to produce top class quality products, and we need to become more sustainable. That is the recipe for our success in a globalised and highly competitive industry.” Paccanelli is positive about the future: “While we face very tough times, I am optimistic about the future of our European textile industry. The rest of the world is watching us, as we move forward with our strategy. We should become their benchmark and Europe should become a global leader in sustainable textiles.”

INDA, the Association of the Nonwoven Fabrics Industry, is mourning the loss of Walter “Walt” G. Jones, Chief Executive Officer, Precision Fabrics Group, Inc., of Greensboro, NC, who passed away Sept. 22.

He is being remembered fondly by the association for his strong contributions as a leader, mentor, and advocate for the nonwoven industry. INDA, in particular, benefited from Jones’ vast industry and business knowledge as an INDA Executive Committee Appointee for over 20 years. Jones started his career at Burlington Industries in 1977 and was named president and CEO, in 1999 of Precision Fabrics Group Inc., a spin-off of Burlington Industries. Jones was a graduate of the University of Cincinnati and the Wharton School of Finance.

“INDA is saddened by the loss of a true industry leader who devoted his career to advancing the nonwoven & engineered material industry,” said INDA President Tony Fragnito. “Walt Jones will be missed by all of us at INDA and by the many professionals whose careers and businesses were positively impacted by his expertise. We extend our deepest sympathies to his family.”

The associations published a joint European textiles industry statement on the energy package claiming incisive actions with no further delay.
Here is the statement in full:

Last month, when gas wholesale prices reached the record level of 340€/MWh – triggering also sky-high electricity prices – the European textiles industry called on the European Union to adopt a wholesale price cap for gas, the revision of the merit-order principle in the electricity market, support for SMEs and a single European strategy. On 14 September 2022, on the occasion of the State of the Union address by President Von der Leyen, the Commission announced initiatives aimed at tackling the dramatic energy crisis that the Europe is facing.

We, the European associations representing the whole textiles’ ecosystem,  welcome these proposals by the Commission to change the TTF benchmark parameters and decouple the TTF from the electricity market and the revision of the merit-order principle for the electricity market, which is no longer serving the purpose it was designed for.

We also welcome the proposal to amend the state-aid framework that, in our view, should include the textiles finishing, the textiles services and the nonwoven sectors as well as a simplification of the application requirements. Furthermore, we call for a uniform implementation across the EU.

However, we acknowledge that the Commission proposal lacks in ambition and – if confirmed – it will come at the cost of losing European industrial capacity and European jobs. Ultimately, Europe will remain without its integrated textiles ecosystem, as we know it today, and no mean to translate into reality the EU textiles strategy, for more sustainable and circular textiles products.

An ambitious and meaningful European price cap on the wholesale price of natural gas is absolutely necessary. Europe is running out of time to save its own industry. It is now time to act swiftly, decisively in unity and solidarity at European level. We understand a very high price cap has been so far discussed among Ministries and that is not reassuring for companies across Europe: if any cap is, as expected, above 100/MWh, these businesses will collapse.

Already in March 2022, with EU gas wholesale prices at 200€/MWh, the business case for keeping textiles production was no longer there. To date, natural gas wholesale prices have reached the level of 340€/MWh, more than 15 times higher compared to 2021! Currently, many businesses have suspended their production processes to avoid the loss of tens of thousands of euros every day. We hope this will not become the new normal and – to reduce the likelihood of such a scenario – we call on the Commission, the EU Council and the Parliament to swiftly adopt decisive, impactful and concrete actions to tackle the energy crisis and ensure the survival of the European industry.

Given the dire international competition in which the EU textiles industry operates, it is not possible to just pass on the increased costs to consumers. Yet, with these sky-high prices, our companies cannot afford to absorb those costs. The EU textiles companies are mainly SMEs that do not have the financial structure to absorb such a shock.  In contrast with such reality in Europe, the wholesale price of gas in the US and China is 10€/MWh, whereas in Turkey the price is 25€/MWh. If the EU does not act, our international competitors will easily replace us in the market, resulting in the de-industrialisation of Europe and a worsened reliance on foreign imports of essential products.

Specific segments of the textile industry are particularly vulnerable:

• The man-made fibres (MMF) industry for instance is an energy intensive sector and a major consumer of natural gas and electricity in the manufacturing of its fibres. Not only is it being affected by higher energy process, it is also experiencing shortages and sharply rising costs of its raw materials.
• For the nonwovens segment, production processes – which use both fibres and filaments extruded in situ – are also highly dependent on gas and electricity. Polymers melting and extrusion, fibres carding, web-forming, web-bonding and drying are energy-intensive techniques. Nonwoven materials can be found in many applications crucial to citizens like in healthcare (face masks) or automotive (batteries).
• It also is to be noted that for some segments the use of gas has no technological substitute: for example, the dyeing and finishing production units make very intense use of gas. These production units are mainly composed by boilers and driers, which only work on gas and there is no alternative technology.
• The textile services sector is also struggling: with the critical nature of the service they provide, they require a considerable amount of energy to keep services, particularly hospitals and care homes stocked with lifesaving material as well as clothing and bed linens for the patients themselves. Losing these businesses would cause a lack of clothing for healthcare professionals, including protective sanitary gowns for surgeons, nurses and doctors, uniforms including other forms of personal protective equipment.

15,493 visitors from 107 countries attended the second Istanbul Fashion Connection. Over 300 companies showed their collections on more than 15,000 square meters of exhibition space and provided information about their creative collections and their production capacities in the areas of womenswear, menswear, kidswear, denim, shoes, leather and fur, lingerie and sportswear.

There was busy business activity, the ideal near shore capacities combined with the range of fashion collections experienced great demand. Istanbul Fashion Connection was a meeting point with the opportunity for a face-to-face meeting on a common platform. All trade channels were represented at the fair, from large shopping malls and department store groups to wholesalers, international retail chains, multi-brand boutiques and online platforms.

The global turkish exports in the first half of this year amounted to US$ 12.4 billion, which corresponds to an annual growth of 11.6%. In the EU alone, the total for this period is US$7.7 billion, a growth of 14.7%. Mustafa Gültepe, President of the Turkish Exporters Assembly and IHKIB, announced that ready-to-wear exports are to be increased to $40 billion in the medium term.

The organizers are expecting over 600 companies to attend next IFCO. The exhibitors for the sourcing area will take part in a separate hall. Leading companies have already registered with the association for this. Lingerie and bridal/evening wear will also be shown in their own hall, which seasonally only presents itself once a year in Turkey.
The participation of international fashion companies is encouraged, for which IFCO provides the springboard into the Eastern European market.

Adient, a supplier of seating systems for the automotive industry, has entered into a cooperation with Swedish steelmaker H2 Green Steel (H2GS) to reduce the carbon footprint in its value chain.
 
On 1st September Michel Berthelin, Executive Vice President Adient EMEA, and Henrik Henriksson, CEO of H2 Green Steel, have mutually signed an agreement to supply fossil-free steel with low carbon footprint from 2026 on and subsequently use it in Adient's metal products.

Michel Berthelin explains the background to the cooperation: “As a company, we are committed to the Science Based Targets Initiative, a collaboration between leading global institutions to set a science-based climate target. We also support the Carbon Disclosure Project, which helps companies and cities to understand and disclose their environmental impacts. The decision to shift parts of the steel volume sourced for our production to a steel with low carbon footprint is part of our sustainability strategy. It is our goal to reduce emissions at our production sites that are caused directly by our own sources or indirectly by our energy suppliers by 75% by 2030. In parallel, we aim to reduce emissions along our supply chains by 35% over the same period. In doing so, Adient actively fosters the industry's transformation towards a more responsible use of natural resources.”

Steel from H2 Green Steel is produced with up to 95% less CO₂ emissions compared to conventional steel production. The company achieves this by replacing coal with green hydrogen in production and by the use of electricity from non-fossil sources. In this way, mainly water and heat are produced as waste products.