From the Sector

• Important step for further growth with specialty fibers
• Transaction generates negative impact on net profit of approx. EUR 21 mn
• Lenzing Group will hold 100 percent of Lenzing (Nanjing) Fibers Co. Ltd. after closing

Lenzing/Nanjing – The Lenzing Group intends to acquire the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The underlying structured selling process was initiated by the joint venture partner in a state controlled bidding process and today the Lenzing Group received the Share Purchase Agreement draft. The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of approx. EUR 21 mn for the fiscal year 2018.

The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.

As the countdown to the 2018 edition of Cinte Techtextil China enters its last two months, the final exhibitor line-up is starting to take shape. A number of leading international and Chinese brands across the fair’s 12 product application areas will feature at the Shanghai New International Expo Centre from 4 – 6 September, with an expected 500-plus total exhibitors from around 20 countries & regions set to feature.

Nonwovens exhibitor highlights

As the fair’s largest product category, buyers have a wide range of domestic and overseas brands to source from, including:

• Johns Manville (US): who will showcase their polyester spunbond, PP & PBT meltblown, glass fibre nonwoven, micro glass fibre nonwoven, hybrid nonwoven, glass fibre needle mat and glass microfibre product lines among others at the fair.
•  J.H. Ziegler (Germany): with over 150 years’ expertise and their own production plant in China, they offer products for acoustic absorption in automotive interiors and exteriors, nonwoven foam composites for leather lamination, needle-punched nonwovens, foam nonwoven composites, laminated nonwovens and natural-fibre nonwovens.
• KOBE-cz (Czech Republic): a new exhibitor to the fair, their nonwoven fabrics, mainly made from glass fibre with temperature resistance up to 800°C, are used for high-temperature isolation in the automotive, marine, energy and building industries. They also have isolation materials made from natural fibres including hemp, wool, cotton and flax.
• TDF Nonwovens (China): one of the leading domestic brands, their specialties are polyester spunbond geotextiles, polyester filament roofing carriers, filter nonwovens, high-strength coarse denier polypropylene spunbond geotextiles and medical & health nonwovens.
• Kingsafe (China): they specialise in the production of fusible interlining and nonwoven fabrics for high-end garments.

Yarn & fibre exhibitor highlights

• Perlon (Germany): has developed a PET based monofilament, HighGrip, which guarantees long-lasting efficiency of conveyor belts, and is available in various types with different tribological characteristics, which they will feature at the fair.
• Sateri (China): is a global leader in viscose rayon made from 100% dissolving wood pulp, and the largest maker of viscose fibre in China. Their natural and high-quality fibre, made from trees grown on renewable plantations, can be found in textiles and skin-friendly hygiene products.
• Cordenka (Germany): producers of industrial rayon, their product range covers rayon tire cord, yarn, single-end dipped cord, short-cut fibre and more.
• EMS-Griltech (Switzerland): will showcase a range of technical fibres & yarns and thermoplastic adhesives at the fair.
• Barnet (Germany): several finished products (nonwovens, spun yarns and fabrics) made with their specialty fibre will be on display at the fair, including OPAN, para-aramid and carbon filament fibres. The application of their specialty fibre in flame retardant and anti-cut gloves and felts will be shown at their booth for the first time.

Coated textiles & solutions exhibitor highlights

• Stahl (the Netherlands): the Dutch company will present new products from their water repellent and flame retardant ranges at this year’s fair. According to the company, as the Chinese government continues its efforts to clean up the environment, eco-friendly chemicals remain in strong demand in the country.
• Sioen (Belgium): will showcase sign materials, truck tarpaulins, tents, membrane fabrics, apparel products, chemicals and specialty products such as inflatable boat fabrics, pool liners and more at Cinte 2018.
• ROWA Lack (Germany): a new exhibitor at this year’s fair, they will present their special lacquer systems and top coatings.
• Trelleborg (Sweden): also a new exhibitor, they will display engineered textiles, especially in the fields of outdoor, medical, protective and automotive.
• FPC Technical Textile (Saudi Arabia): another first-time participant at the fair, they will showcase a range of high-end specialty fabrics including PVC coated fabrics and fibre glass PTFE fabrics.
• Zhejiang Jinda New Materials (China): this supplier is known for its coated textiles for industrial, transportation and building uses, as well as warp knitted geo-synthetic materials and printable coated materials for advertisements.

Lenzing to showcase its new VEOCEL nonwovens specialty brand at the fair

First announced in June this year, and featuring at Cinte Techtextil, Lenzing’s new VEOCEL brand is billed as a premium range of nonwovens fibres for daily care, which “provides the nonwovens industry with fibres that are certified clean and safe, biodegradable, from botanic origin and produced in an environmentally responsible production process.” Products in this range can be applied to a multitude of uses including baby care, beauty and body care, intimate care and surface cleaning, under the VEOCEL Beauty, VEOCEL Body, VEOCEL Intimate and VEOCEL Surface brands.

Wolford is recognized for high quality Skin wear and is a favorite among fashion influencers. Wolford realizes that when it comes to luxury, consumers expect brands to be responsible. In response, Wolford understands sustainable luxury is a new brand ingredient and are dedicated to expanding their collections each season and infusing responsible materials.

This July at Interfiliere, gain a sneak peek into the launch of Wolford’s Aurora collection of leggings and pullovers that are Cradle to Cradle gold certified, first one in the world! The new styles created use premium stretch yarn belonging to the ROICA™ Eco-Smart family, the world’s first yarn awarded Cradle2Cradle Material Health Gold Level Certificate and Hohenstein Environment compatibility certification, which provides evidence of compliance and offers confidence as a responsible choice. In addition to premium stretch yarn from ROICA™ Eco-Smart family, the Aurora pieces are made using two other responsible fibers, Lenzing Modal® a cellulosic fiber derived from sustainable forestry, and infinito® by Lauffenmühle, a specially modified oil based biodegradable polymer.’

Instead of using new materials, Wolford’s new collection is developed to return the ingredients back to the cycle, they simply borrow them for the lifetime of the product, which supports responsible product ingredient sourcing. At the end of the Aurora collection product lifecycle, Wolford will return them to an industrial composting station to naturally breakdown without releasing harmful environmental substances. Wolford is committed to becoming part of the solution and activating change as they continue to explore responsible material innovations.

Be sure to attend Première Vision NY Smart Talk on July 17th, 2018 at 2:00p to meet to Wolford’s own Andreas Roehrich, Director, Product Develoment & Innovation to discuss technology and Wolford’s quest to become a responsible luxury brand.
 

• Market success above expectations
• Product and market development accelerated
• Investment up to EUR 30 mn

Lenzing – The Lenzing Group is setting another milestone as a specialist for extremely high-quality products made of the renewable raw material wood. Capacities will be significantly expanded due to strong demand for Lenzing’s TENCELTM Luxe filament yarn which was first launched on the market just a few months ago. Lenzing will invest up to EUR 30 mn in a further pilot line at the Lenzing site. Basic engineering for construction of the new facility has already been initiated.

“Thanks to TENCELTM Luxe, Lenzing is currently positioning itself in the premium luxury market and is embedding the issue of sustainability there in combination with superior aesthetics”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group. “The fine filament yarn is comparable to natural silk due to its airy feeling on the skin and the matte finish. It is perfectly suited for very fine fabrics made exclusively from this yarn and as a blending partner with silk, cashmere and wool”, he adds.

“On the occasion of the launch of TENCELTM Luxe filaments, the luxury brands already realized what opportunities they would have by using this yarn made of the renewable raw material wood. For this reason, demand is already so high that we have decided to take an intermediate step to expand capacities before building a large commercial production plant. The decision to construct a new line will serve as the basis for generating a three-fold increase in capacity compared to the previous volume. The additional capacity will be available to customers at the end of next year”, states Stefan Doboczky, Chief Executive Officer and Chairman of the Management Board of the Lenzing Group. “The Lenzing site was selected because research and technological know-how in plant construction are connected in a special way, which will in turn enable us to further develop this special product”, Doboczky adds.

The new capacities will enable Lenzing to more effectively fulfil the needs of customers for TENCELTM Luxe filament yarn than in the past. At the same time, Lenzing will press ahead with technical planning for a large-scale commercial line at the Lenzing site.

This strong level of demand is further evidence of the Lenzing Group’s innovative strength. The yarn is opening up new markets for the company in the eco-couture segment, thus contributing to the successful implementation of the sCore TEN strategy.

Exhibitors from eight countries have already confirmed to participate in the fair’s European Zone. They join an expected 500-plus total exhibitors from around the world. The 2018 edition of this biennial fair takes place from 4 – 6 September in halls N1 – N3 of the Shanghai New International Expo Centre.

While China retains its edge in terms of technical textiles and nonwovens production capabilities, in the eyes of Chinese buyers, European suppliers are still the leaders when it comes to technology and innovation. This was widely reported by European exhibitors at the previous edition in 2016 of Asia’s leading biennial trade event for the industry: Cinte Techtextil China.

“In the Chinese market, buyers want good quality products, so overseas companies, and products with recognised quality certifications, have a lot of potential,” Ms Ping Chen, General Manager of IBENA Shanghai Technical Textiles commented. “As a leading German company in the industry, our products are welcomed by many buyers at this fair. It is also important to be in the German Pavilion as this signals to buyers that we have quality products, and it attracts more attention.” Swiss firm Sanitized AG had the same experience. “As a Swiss company in the European Zone I believe it’s an advantage, as some local buyers have more confidence towards imported products,” Mr Steven Liu, Sales Manager said.

Other exhibitors commented on the long-term trends in the Chinese market. “There’s a definite shift to more high-quality machinery in China that isn’t affected by what’s happening in the overall economy. Moreover, there are opportunities for overseas suppliers as there is still a gap between us and what Chinese companies produce,” Dr Joachim Binnig, Vice President, Head of Development & Technology, Autefa Solutions Germany GmbH explained.

Mr Roger Zhang, Sales Manager for German firm J.H. Ziegler Nonwovens and New Materials commented: “Our products are mainly for high-end Chinese customers, such as BMW and Audi. The Chinese market has gradually matured, but the production capability for high-performance products which are energy efficient and eco-friendly is still developing, so there is a lot of space for overseas brands to develop here.”

European Zone highlights
This year’s European Zone will feature around 30 exhibitors from eight countries, including Austria, Belgium, the Czech Republic, France, Italy, the Netherlands, Sweden, Switzerland and the UK, while further exhibitors can be found in national pavilions from Belgium, the Czech Republic, Germany and Italy. Some of the exhibitor highlights in the European Zone include:

• Arkema (France): with brands including PMMA Altuglas, Rilsan, Pebax, Kynar PVDF and Bostik, they will present polymer resin for fibres and yarns, which apply to a wide range of applications, at the fair.
• Dakota Coating (Belgium): specialists in thermoplastic and thermosetting adhesives, their polymer products, based on polyethylene, polyolefin or mixtures, ethylene vinyl acetates, co-polyamides, polyurethanes and co-polyesters, are suitable for automotive, building, heat transfer and sound insulation uses.
• Lenzing Plastics (Austria): a new exhibitor at the fair, they are a leading manufacturer of polyolefin and fluoropolymer products, such as Thermoplast and PTFE products. One of their core competencies lies in the monoaxial stretching of films and filaments, and they offer special solutions in the fields of construction & insulation, medicine & hygiene, packaging and cables, as well as automotive and technical textiles. They will highlight their PROFILEN® PTFE product at the fair, and with its extreme durability and very smooth surface, it is highly valued in many niche applications in the technical and medical sectors.
• Protechnic (France): leading manufacturers of hot-melt adhesives and plastic printed films, they will showcase hot melt thermo-adhesive nets, webs and films at the fair.
• Trelleborg Coated Systems (Italy): another new exhibitor this edition, they produce high-performance, engineered coated fabrics. They offer a wide variety of substrates – from Kevlar® to silk – with a choice of weaving methods.

• Revenue increased by 5.9 percent to EUR 2.26 bn
• EBITDA up 17.3 percent to EUR 502.5 mn
• Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
• New brand strategy to generate a strong message to consumers
• Limited visibility for coming quarters

In 2017, the Lenzing Group reports its best financial performance ever with record revenue and earnings due to a better product mix and higher selling prices in combination with a generally favorable market environment.

Group revenue grew by 5.9 percent in the 2017 financial year to EUR 2.26 bn (2016: EUR 2.13 bn). Group earnings before interest, tax, depreciation and amortization (EBITDA) improved by 17.3 percent to EUR 502.5 mn (2016: EUR 428.3 mn). The corresponding EBITDA margin rose to 22.2 percent (2016: 20.1 percent). Earnings before interest and tax (EBIT) increased by 25.2 percent to EUR 371 mn, resulting in a higher EBIT margin of 16.4 percent (2016: 13.9 percent). The net profit for the year totaled EUR 281.7 mn, a rise of 23 percent from the prior-year figure of EUR 229.1 mn. Earnings per share in the 2017 financial year amounted to EUR 10.47 (2016: EUR 8.48).

The Management Board and the Supervisory Board will propose at the upcoming Annual General Meeting a stable dividend of EUR 3.00 per share plus an increased special dividend of EUR 2.00 per share (2016: EUR 1.20 per share). In total, the dividend will amount to EUR 5.00 per share, corresponding to a dividend payment to shareholders of EUR 132.75 mn.

“The Lenzing Group looks back at a very successful year 2017. We continued to implement our corporate strategy sCore TEN with great discipline and focus on our investment projects and successfully captured value in a positive market environment. Our commitment to innovation and customer centricity was underpinned by the opening of an application innovation center in Hong Kong and the creation of the new sales and marketing office in Turkey. In line with sCore TEN we decided to revamp our brand architecture and image to sharpen Lenzing’s corporate and product profiles for customers and consumers. We want to put a stronger emphasis on our ambition to make the textile and nonwoven market more sustainable”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

“We are very positive about our chosen strategy as it will help us to be more resilient as we expect more headwinds in the upcoming quarters”, he adds.

At its meeting on December 13, the Supervisory Board of Lenzing AG decided to reappoint Stefan Doboczky as Chief Executive Officer of the Management Board. Stefan Doboczky’s new contract will begin on June 1, 2018 and runs until the end of 2022.

“In recent years, Stefan Doboczky and his colleagues on the Management Board have been able to make excellent use of the favourable market conditions on the basis of the previous restructuring in order to transform an Austrian company with foreign investments into a truly global player with strong Austrian roots. This has created the basis for consistently pursuing the growth strategy we have embarked on with the entire team, even under difficult conditions, and thus securing the long-term future of the Lenzing Group. We are very pleased that Stefan Doboczky will continue to dedicate himself to these tasks over the next five years”, said Hanno Bästlein, Chairman of the Supervisory Board of Lenzing AG on the occasion of Doboczky’s reappointment.
In addition to Stefan Doboczky, the Management Board of Lenzing AG consists of Chief Commercial Officer Robert van de Kerkhof, Chief Financial Officer Thomas Obendrauf and Chief Technology Officer Heiko Arnold.

Intertextile Shanghai concluded its 2017 Autumn Edition on 13 October as the strong business results and praise from the worldwide participants once again affirmed its reputation as the world’s most effective apparel fabrics and accessories trade event in terms of boosting sales and product sourcing. Knowing the fair covered an all-encompassing range of products that cater to all sourcing needs, 77,883 buyers travelled from 102 countries and regions (2016: 73,927, 90 countries and regions) to Shanghai to source. This year, Hong Kong, India, Indonesia, Italy, Japan, Korea, Russia, Taiwan, the UK and the US were the top 10 visitor countries and regions after Mainland China.

Meanwhile, a total of 4,538 exhibitors from 32 countries and regions (2016: 4,553, 29 countries and regions) also enjoyed the surge of business potential brought by this large number of high-quality trade buyers. The strong line-up of exhibitors, including 10 country and region pavilions – France, Germany, Hong Kong, India, Japan, Korea, Milano Unica (Italy), Pakistan, Taiwan and Thailand – as well as 10 Group Pavilions organised by foremost industry leaders like DuPont, Hyosung, INVISTA and Lenzing, presented a full-spectrum of innovative and fashion offerings in 11 halls across 276,000 sqm (gross) exhibition area, an increase of nearly 6% compared to 2016.

While the nature of textile trade fairs has evolved over recent years, exhibitors’ successful results at this year’s Intertextile Shanghai shows that it is still the industry’s most effective order-writing and business development trade show because it remains the event where the global industry gathers to make purchasing decisions. As a result, many exhibitors see the fair as their business growth engine, and reported positive outlooks for sales after the fair.

Exhibitor opinions
 Ms Erika Jimenez, Development and Purchasing Department, Luca Cuccolini, Spain (SalonEurope)
“A few years ago we decided to explore the Chinese market. Knowing that Intertextile Shanghai is the most comprehensive fair of its kind in Asia, there was no doubt that this would be the fair to expose our brand. Throughout the years we have been satisfied with the visitor flow and business opportunities, especially this year. There has been a good flow of a diverse range of buyers visiting our booth, and we’ve already met with abundant potential buyers on the first day. Our objective is still to get our brand known to local buyers, and by looking at the progress in the first two days, we are even expecting to get orders later on.”

Mr Jean Denerolle, General Manager, Dormeuil, France (Premium Wool Zone)
“There has been lots of visitors coming to our booth on the first two days. Joining Intertextile Shanghai is an effective ways for us to develop the Chinese market. We are happy that the organiser referred a VIP buyer to us. Overall, we succeeded in receiving orders and promoting our brands, so I am pleased with the result this year.”
Mr Max Deery, Global Director, Print Stories Ltd, (for Amanda Kelly Ltd), UK (Verve for Design)
“We are satisfied with the results this year. The Verve for Design zone is well organised, and it’s a busier year compared to last. After day one, we’ve already found more than 10 potential buyers, both old and new customers. We’ve participated in other fairs in Europe as well, and I would say Intertextile Shanghai is in line with these shows, and busier than we expected.”

Mr Luca Maderna, New Age srl, Italy (Verve for Design)
“It’s our 10th year exhibiting in Intertextile. Given the large scale, we can always find new contacts here, and it’s also a great opportunity for us to present our new collection to our regular customers.”
Mr Ederhard Ganns, Managing Director, Union Knopf (HK) Ltd, Germany
“Our target clients are mainly brand owners and resellers. I have successfully met with them and have some promising contacts. We have also developed some new connections with both domestic and overseas customers. Intertextile Shanghai is no doubt the world’s number one show.”

Ms Kang Nan Hee, Assistant Manager, R&D Textile Co Ltd, Korea (Korea Pavilion)
“This is our 10th year at Intertextile Shanghai. Every year, we participate in both the spring and autumn fairs and they have never let us down. Not only can we meet numerous new buyers in each edition, we can also keep pace with the ever-changing market trends in the fabric industry. Besides that, in terms of visitor flow, this fair has always been the strongest. Take this year’s fair as an example. In our estimation, we have already received enquiries from almost 300 buyers and agents on the first two days, which has exceeded our expectations. Therefore, we are expecting some 400 orders in total by end of the fair.”

Mr Taku Ito, Manager, Sojitz Vancet (Shanghai) Trading Co Ltd, Japan (Japan Pavilion)
“We exhibit at this show to find new customers and sales channels in China. We’ve been joining the show for a while now, and we continued this edition as we can always meet new customers – I mean, really ‘new’. This year, there were about 400 companies that visited our booth. It’s also interesting that we are getting more online apparel shops visiting us lately.”

Ms Susan Hon, B2B Marketing Communication Director, North Asia, INVISTA Co Ltd, Hong Kong (Functional Lab & Group Pavilion organiser)
“With the help of Intertextile Shanghai – the most well-known platform in the industry – we can promote our newly launched products more efficiently and enhance the influence of our brand. Our booths were packed with visitors over the three days, with many of them high-quality buyers. Intertextile has always been one of the most important trade fairs for us because of its strength in attracting a wide range of buyers, including an unrivalled number of market-leading brands that no other fairs can offer.”

Mr Martin Yang, Marketing Manager, Nilit Nylon Technologies (Suzhou) Co Ltd, Israel (Functional Lab)
“Our management is satisfied with the results as this is where we can boost our business and sales. On the first day, we’ve already met with nearly 20 potential buyers that are very likely to develop into new orders after the fair. The most attractive trait of Intertextile Shanghai is its ability in gathering large numbers of trade buyers. More importantly, the majority of them are quality buyers who aren’t only our target customers but also keen to place orders. This fair is seen by the industry as the major platform to source as it includes more industry leading suppliers, raw material providers, fabric mills and garment manufacturers compared to other similar fairs, and this is why we are here.”

Mr Syed Kamran Shah, Marketing Manager, Soorty Enterprises (Pvt) Ltd, Pakistan (Beyond Denim)
“Our objectives are to establish connections with Chinese brands and manufacturers, as well as to learn buyers’ expectations in this market. We are happy with the visitor numbers, and Intertextile Shanghai is where buyers really come to make purchasing decisions. Buyers came to talk to us and run tests on our fabrics afterwards, and usually within 2-3 months’ time, we will receive orders. We also like the idea of the Beyond Denim hall as it ensures the effectiveness of gathering and getting in touch with our target buyers.”

Mr Štěpán Kučera, Managing Director, Preciosa Components, China (Accessories Vision)
“This has been Preciosa’s third consecutive appearance at the autumn edition of Intertextile Shanghai, where we continue to see an increase in attendance by our target customers, namely high-end fashion brands from both the Chinese and international markets. Among the 200-plus buyers we met on the first two days of the fair were domestic fashion brands, sourcing managers of overseas brands, garment producers, as well as OEMs & ODMs, and we are more than satisfied with the results. Compared to similar fairs in which we have participated, Intertextile has a stronger focus on sourcing and manufacturing. International brands tend to send their sourcing teams, while local manufacturers and vendors also source here.”

Ms Shanshan Lu, Client Manger, Beijing Ecocert Certification Centre Co Ltd, China (All About Sustainability)
“As Intertextile Shanghai is the largest fair of its kind, we can always find our target customers here which are manufacturers from the Greater China area and the Asia Pacific region. The All About Sustainability zone has enhanced the exhibiting effectiveness as it creates a strong theme that attracts the right visitors to our booth. I think the visitor flow is stronger than last year. On day 1 alone, we received enquiries from over 10 potential customers which included old and new accounts. Moreover, by sharing our certifications in the seminar, our brand got further promoted in the fair. All in all, we are very pleased with this year’s outcome and very likely will return again next year.”
Worldwide buyers impressed with the unparalleled range of sourcing options on offer
While the exhibitors highly valued the fair’s ability in attracting quality, genuine buyers from around the world, these buyers were pleased to find all categories of apparel fabrics and accessories products from the entire industry under one roof.

Buyer opinions
Mr Johnny Lau, Head of Material Management, Quiksilver Asia Sourcing Ltd, Hong Kong
“The strongest trait of Intertextile Shanghai is its scale and aptitude in gathering the entire industry in one place. I believe no matter which sector of the industry or market you belong to – suiting, casual wear or ladieswear; high-end or fast fashion – you are ensured to find the right suppliers here. The fair houses a full-spectrum of suppliers which ease the sourcing process for purchasing departments like us. To maintain brand competitiveness, it is getting more important for us nowadays to know about suppliers and manufacturers from around the world, so we were also impressed with the fair’s internationalism and had unexpected returns from this trip.”

Mr Luis Alfonso Yepes Londono, Manager, Yetex SAS, Columbia
“Among all trade shows, Intertextile Shanghai is the most influential one for my business, even compared to the European shows. Not only can I find local suppliers, but the fair literally puts brands from around the globe under one roof. This morning I discussed with three local companies that match my interest. Their fabrics were of good quality and competitive pricing, so I will soon make a decision and place orders.”

Ms Zhou Jie, General Manager, Shenzhen New Look Fashion Co Ltd, China
“Intertextile Shanghai is a comprehensive trade fair, and what’s unique about this fair is its unparalleled ability in gathering both domestic and premium international apparel fabrics and accessories suppliers. Therefore, the sourcing options in this fair cater to all market demands. I can say Intertextile is a fair that all fashion brands can’t miss as one can definitely find all kids of materials here. We sent over 10 colleagues from the sourcing and design departments to this year’s fair and sourced around 80% of the fabrics we need for the next season’s collection from about eight exhibitors.”

The next Intertextile Shanghai Apparel Fabrics is the Spring Edition, held from 14 – 16 March 2018.
Intertextile Shanghai Apparel Fabrics is co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. For more details on this fair, please visit: www.intertextileapparel.com. To find out more about all Messe Frankfurt textile fairs worldwide, please visit: www.texpertise-network.com.

Lenzing – The Lenzing Group aims to substantially increase its share of specialty fibers as a proportion of total revenue. Following the expansion drive already underway in Lenzing and Heiligenkreuz (both in Austria), Grimsby (Great Britain) and Mobile, Alabama (USA), the Supervisory Board of Lenzing AG approved the proposal of the Management Board yesterday to build the next state-of-the-art facility to produce lyocell fibers in Thailand. For this purpose, Lenzing is establishing a subsidiary in Thailand and purchasing a commercial property in Industrial Park 304 located in Prachinburi near Bangkok. In the coming months, the required permits and licenses as well as technical planning will be finalized. A definitive decision on constructing the new production plant will be made in the first quarter of 2018. Completion is scheduled for the end of 2020.
The selection of Industrial Park 304 in Prachinburi was based on its excellent overall infrastructure, outstanding expansion opportunities and the sustainable biogenic energy supply. Similar to the plant in Mobile, the planned production facility will be constructed on the basis of the latest state-of-the-art technology and feature a capacity of up to 100,000 tons annually. This site will strengthen the worldwide lyocell network of the Lenzing Group and enable its global customers to source TENCEL® branded fibers from Europe, North America and Asia.