From the Sector

• Order intake of CHF 403.4 million in the first half of 2024, up 24% on the previous year period
• Sales of CHF 421.0 million 44% below first half of 2023
• Order backlog of around CHF 640 million at June 30, 2024
• EBIT of CHF 8.9 million and net result of CHF 1.7 million
• Significant cost reductions as a result of the “Next Level” performance program
• Outlook for the full year 2024 specified

In the first half of 2024, the Rieter Group posted an order intake of CHF 403.4 million (first half of 2023: CHF 325.0 million), which represents a significant increase of 24% compared with the same period of the previous year. Sales were CHF 421.0 million (first half of 2023: CHF 758.2 million). As expected, this was 44% lower than the previous year.

In a challenging business environment, Rieter achieved an EBIT margin of 2.1% thanks to strict cost management. The systematic implementation of the “Next Level” performance program led to a strengthening of profitability. Rieter recorded a profit at the EBIT level of CHF 8.9 million in the first half of 2024 (first half of 2023: CHF 25.2 million). The reduction of the cost base particularly in research and development as well as selling and administrative expenses contributed to this positive result.

Outlook for the full year 2024 specified
The markets remained under pressure from the economic slowdown, high inflation rates and noticeably dampened consumer sentiment. The first signs of a recovery in financial year 2024 have emerged in the key markets of China and India. Rieter expects demand to pick up further in the coming months.

For the full year 2024, Rieter anticipates sales in the range of CHF 900 million to CHF 1 billion and a positive EBIT margin of 2% to 4%.

In the second quarter of 2024, the order index for Italian textile machinery, as reported by the Economics Department of ACIMIT – the Association of Italian Textile Machinery Manufacturers, showed a decline compared to the period 2023 April-June (-17%). In value terms, the index stood at 49.8 points (base 2021=100).

This result is completely due to the decrease recorded in foreign markets (-22%), where orders represent 86% of the total. Conversely, in Italy, there was a 25% recovery compared to the second quarter of 2023. The absolute value of the index in foreign markets was 48.8 points, while in Italy it was 57.3 points. In the second quarter, the order backlog reached 4.3 months of assured production. Additionally, ACIMIT’s survey shows that in the first six months of 2024 the utilization rate of production capacity by Italian manufacturers was 61%. This percentage is expected to rise to 64% in the second half of the year.

Marco Salvadè, president of ACIMIT, stated: “The order index for the second quarter shows a clear slowdown abroad compared to last year. This decline highlights the high uncertainty due to the difficult geopolitical situation“. The confirmation of what is indicated by the ACIMIT index also comes from Italian export figures, updated to the first quarter of 2024. Excluding China and Egypt, the main foreign markets show a general decline in demand for textile machinery, not just Italian one.

Archroma is collaborating with Zydat Inc. to bring the complete Color Atlas by Archroma® color library to the Vivid Color Library Management (CLM) color-matching platform for faster and more accurate inkjet digital printing of fashion and textiles

Archroma’s Color Atlas is the textile industry’s largest library of engineered color standards, with more than 5,760 color references formulated to comply with leading eco-standards and deliver consistent and accurate color reproduction.

With these colors available within Vivid CLM’s online color palette optimization and correction tools, designers can more quickly and easily create and share their color palettes for more accurate inkjet printing. This can reduce the burden of pre-production color proofing and streamline the color management process to help deliver high-quality printed fabric and apparel in a fast and economical way.

Vivid CLM was launched by Zydat in February 2024. It offers a unique and designer-oriented solution to color matching with a proprietary algorithm that translates complex spectral data into a Red-Green-Blue workflow and allows the user to print, scan and check the color, with automatic adjustments to improve accuracy. The solution’s palette storage system allows colorists to share palettes across the ecosystem.

In addition to accessing all of the 5,760 colors in the Archroma Color Atlas portfolio as digital standards within Vivid CLM, users of the software may also choose to refer to Archroma’s physical color library in multiple formats. They can also tap into Archroma’s expertise around the world for technical support with sustainable coloration systems and achievability on alternate substrates.

The Color Atlas by Archroma® is part of the Archroma Color Management+ design and development solution for more sustainable textiles and fashion through fast color selection and creation, consistent and accurate color reproduction, and reduced environmental impact.

On July 16, 2024, Rieter and Shanghai Digital Intelligence World Industrial Technology Group Co., Ltd. (DIW) have signed a purchase contract for more than 700 of the company’s winding machines Autoconer X6. This represents the largest order in the history of Rieter China. The agreement also strengthens the strategic partnership between the two companies that aims to develop spinning operations and achieve unprecedented levels of quality, productivity and efficiency.

DIW has placed an order for more than 700 of Rieter’s winding machines Autoconer X6. The winding machine serves as the final quality assurance in the ring spinning and compact-spinning process and is key to the performance of subsequent process steps. With its productivity, intelligent process automation, great splicing and winding quality, the Autoconer X6 is widely recognized in the market. The order will help DIW strengthen the vertical integration of its operations and accelerate its growth strategy in the cotton spinning industry, further underpinning its position in global markets. This order follows the initial batch placed in March 2024, when Rieter and DIW signed their first strategic partnership to develop intelligent yarn manufacturing technology that utilizes digitization and automation to minimize conversion costs and maximize value for customers.

In sync with the fair’s 30th anniversary, the sourcing platform will host around 12 fringe events for fairgoers to stay ahead of the curve, under the following segments: Design Inspiration, Business O2O, Textiles & Technologies, and Industry Empowerment. Intertextile Shanghai Home Textiles has joined forces with Danish trend agency SPOTT trends & business to present the design theme for 2025 – ‘Healing Home’ – together with eight trend directions set to captivate the home textiles market. Set to be a hotspot for in vogue sourcing and industry exchange, the show will take place at the National Exhibition and Convention Center (Shanghai) from 14 – 16 August 2024.

To help home textile industry players set the tone and direction for the upcoming business season, the fair will present Trends 2025 along with leading trend agency SPOTT trends & business, to illustrate the ‘Healing Home– Spaces for Thriving Living’ theme that marks the path ahead for the evolving sector. This concept conveys the idea of a home that promotes a remedial, prosperous lifestyle, improving peoples’ general health and well-being, with several key factors contributing to the overarching theme:

• Eight key directions: Age-Old Crafts, Nature-Tech Synergies, Regenerative Possibilities, Wellbeing Spaces, Colourful Gatherings, Bio-Engineered Innovations, Transitional Practices, and Circular Systems.
• Five key colours: deep burgundy, warm terracotta, light creamy shade, saturated nostalgic green, and vaporous blue.

The founder of SPOTT trends & business, Ms Anja Bisgaard Gaede, will be onsite to share insights related to these new design trends. Fairgoers are invited to join her interactive trend tour, and physically experience the concepts steering the industry's future.

With the intention of sparking further design inspiration for industry players, an expert panel discussion of Chinese interior architects and designers, InterDesign Forum, will be held on the afternoon of Day 1. Focusing on design trend topics related to sustainability, Mr Shen Lei, Founder and Design Director of Interior Architects Design and the Chinese representative of the Intertextile International Lifestyle Trend Committee, will lead the discussion. Adding an international perspective, Ms Anja Bisgaard Gaede will join them for the accompanying round table talk.

In addition to serving as a gateway for efficient sourcing, the show will inspire fairgoers through its fringe programme, with various formats and topics unpacking current talking points.

Highlighted sessions include:    

• Round table discussion: Bridging Borders: A Designer x Producer Talk on Sustainability – a dialogue between designers and manufacturers, exploring how to collaboratively overcome sustainability challenges and reconcile the demands of both sides, from both Eastern and Western perspectives.
• Econogy Talks: selected exhibitors, including 3M, Advansa and many more, as well as a representative from Indorama will showcase their innovative green products, giving attendees in-person insights into some of the market’s latest sustainable developments in the Sustainable Fibre Forum. Additionally, a Messe Frankfurt representative will explain the Texpertise Econogy concept, the combination of economy and ecology that represents the sustainability activities in the company’s Texpertise Network. The discussion will show how crucial sustainability is for the economic success of a business today, and indicate how fairgoers can benefit from such an approach.

Beyond the subject of a greener textile industry, other topics will be explored at various events. With more to be announced in the coming weeks, the following seminars hosted by international experts will provide the latest trends and market updates:

• Bridging Worlds: Design Strategies for Success in Middle Eastern Markets: Ms Esra Lemmens (Day 1)
• How Psychology Impacts the Way We Design Spaces: Ms Pallavi Dean (Day 1)

Moreover, the 10th Home Textiles and Furniture Industry Ecological Integration Forum will bring together home textile and furniture brands to explore cross-industry collaboration and provide one-stop home solutions. The 30th China Home Textiles Design Festival & Designer Recommended Brand Awards will showcase the latest trends and achievements in home design, allowing participating brands to gain recognition from designers. Meanwhile, the 7th China International Fibre Art Exhibition will invite influential artists from home and abroad to present diverse contemporary fibre artworks; and the China Intangible Cultural Heritage of Textile Exhibition will showcase some remarkable displays.  

Dongshin University from Naju in South Korea and Institut für Textiltechnik (ITA) of RWTH Aachen University will cooperate in the field of industrial digitalisation and renewable energies in the future. A cooperation agreement was signed on 9 July by Professor Dr Chun-Shik kim and Professor Dr Thomas Gries. Professor Dr Chun-Shik Kim is an expert on German-Korean economic cooperation, ADEKO board member and former advisor to the Deputy Prime Minister, Professor Dr Thomas Gries is ITA Director and Rectorate Representative of RWTH Aachen University for Korea. The co-operation marks the culmination of 15 years of ITA activities in Korea. The fruits of this cooperation are the SmartTextronics Centre and the city partnership between the cities of Aachen and Ansan.

Dongshin University in Naju, South Korea, is a renowned university specialising in innovative research and practice-oriented education. It specialises in engineering, information and communication technology and renewable energies. The university is known for its international co-operation and its contribution to regional and global development.

RWTH Aachen University is one of the leading technical universities in Europe and offers excellent research and teaching opportunities. Institut für Textiltechnik (ITA) of RWTH Aachen University is one of the largest institutes at RWTH Aachen University and is internationally recognised for its outstanding research achievements in the field of textile technology and for its industrial cooperation. RWTH Aachen University maintains close co-operation with international partners and promotes global networking in science and research.

Maintaining a focus on innovation despite the uncertainties that characterize the current international scenario was emphasized during the General Assembly of ACIMIT, the Italian Textile Machinery Manufacturers Association, held in Milan on July 9. ACIMIT president, Marco Salvadè, showcased the data of the Italian textile machinery industry. In 2023, production decreased by 16%, settling at a value of 2.3 billion euros, as did exports, which also fell by 16% (2 billion euros).

China, Turkey, India, and the United States remain the main destinations for Italian textile machinery manufacturers. In 2023, demand for machinery in these markets was weak, but some positive signals emerged in the first quarter of the current year, especially from the Chinese market and again from Egypt, Pakistan, Brazil, and Japan. “2024 will still be a year characterized by many uncertainties,” commented Salvadè, “mainly due to the uncertainty of the geopolitical situation and fluctuations in final demand”.

In an especially difficult international scenario and with a still sluggish market, the Italian textile machinery sector remains a leader alongside a few other Countries, such as China, Germany, and Japan. “Our sector is renowned worldwide for its reliability, know-how, and the uniquely Italian ability to combine tradition and innovation,” noted the ACIMIT president. Accelerating innovation remains crucial, particularly to meet the challenges that await Italian manufacturers in supporting textile companies on their sustainable transition journey.

To highlight the opportunities that the European green transition opens up for technology suppliers, the public section of the ACIMIT General Assembly addressed a very current issue: textile recycling. The EU’s legislative guidelines aim to accelerate the green and circular transition of the textile sector with various actions: from ecodesign to EPR, from waste export regulation to green claims. Meanwhile, there is a growing demand for recycled textile fibers driven by the sustainable policies of brands that should not be underestimated.

Thus, technologies play an important role in providing solutions to companies engaged in the new circularity supply chain: from sorting and selection of garments to preparation phases and recycling processes. During the event several speakers agreed that the experience and capabilities of the Italian textile and textile machinery sector should be fully leveraged at this crucial stage for the entire supply chain. As President Salvadè noted, “Textile machinery companies intend to increase R&D activities in this area, collaborating with their textile customers in the belief that the circular transformation of business models also represents an opportunity for technology suppliers to increase their competitiveness.”

Salvation Army charity shops have won two major awards from the Charity Retail Association for Outstanding Charity Retailer of the Year, and Environmental and Sustainability at the CRA Annual Conference held at the Harrogate Convention Centre on 26th June 2024.

This is the second time the charity has won the Outstanding Charity Retailer of the Year Award in the past four years - winning it outright in 2022 and 2024, and also being shortlisted in 2021 and 2023.

The Environmental and Sustainability Award sets out specific criteria that organisations must demonstrate, including the introduction of green policies, and new ways of dealing with textile recycling.

Both award categories focused on retail initiatives and key achievements over the previous 12 months. SATCoL recently announced its highest trading results and a record-breaking donation to its parent charity of over £11.2m.

In 2022 SATCoL launched its 5-Year Strategic Plan under the theme of ‘Dare to CARE’ – this included new performance measures for People, Planet and Profit. CARE represents SATCoL's values of Compassion, Accountability, Respect and Equality. The company continues to invest in its donation centres and refurbishing more high street shops – 10 new donation centres opened and 9 high street shops were refurbished in the year 2022-23.

SATCoL has also invested heavily in innovations including FibersortTM, an automatic sorting process that identifies and sorts second-hand garments by fibre type, and Project Re:claimTM, a commercial-scale polyester recycling plant designed to recycle end-of-life textiles. Project Re:claim is a joint venture with Project Plan B.

The KARL MAYER GROUP founds a production company in Romania and hires Patrick Mack as an additional General Manager.

In October 2023, the KARL MAYER GROUP founded a production company in Romania to make itself more resilient and strengthen its competitiveness. KARL MAYER ROMANIA S.R.L. will initially start production in Baia Mare, which were rented in February 2024. A move to a new factory building in the neighbourhood is planned in the future.

In May of this year, Patrick Mack took up his position as General Manager at the Romanian subsidiary of KARL MAYER. He will be supported in his tasks by Manfred Reinhold, also at the head of KARL MAYER ROMANIA. Patrick Mack will manage the business locally.

The German-American has already set up a factory for a foreign company in Romania and has a clear idea of his new role: "KARL MAYER ROMANIA is of extreme strategic importance. That is why I want to build a site that fits seamlessly into the manufacturing footprint of the KARL MAYER GROUP. The new production facility should fulfil all KARL MAYER standards, contribute to the improvement of the company as a whole and represent it accordingly," explains Patrick Mack.

INDA, the Association of the Nonwoven Fabrics Industry, applauds the U.S. House of Representatives for passing the Wastewater Infrastructure Pollution Prevention and Environments Safety (WIPPES) Act (H.R. 2964). The WIPPES Act, which creates national standards for “Do Not Flush” labeling for non-flushable wipes, passed out of the House Committee on Energy and Commerce in December of 2023, and on June 12, it cleared the House floor in a bipartisan vote. The bill now awaits consideration in the Senate Science, Commerce, and Energy Committee.

This bipartisan legislation is intended to address the growing problem of sewer system clogs caused by improper disposal of consumer wipes that are not intended to be disposed of in toilets. This federal solution is the result of a years-long industry collaboration with wastewater operators which has resulted in the passage of similar legislation in seven states. The WIPPES Act will create a national standard based on existing state laws to ensure non-flushable wipes will carry prominent “Do Not Flush” labeling on packaging.

“INDA has championed this legislation for the past two years and we are encouraged to see it pass out of the House. We extend our thanks to the bill sponsors, our industry and wastewater partners, and INDA members as we take another step forward to make “Do Not Flush” labeling nationwide,” said Wes Fisher, Director of Government Affairs.

The WIPPES Act lead sponsors in the House are Representative Lisa McClain (R-MI) and Representative Mary Peltola (D-AK) and the bill was introduced in the Senate by Senator Jeff Merkley (D-OR) and Senator Susan Collins (R-ME).