From the Sector

With total sales of EUR 1,543 million, generated by over 30 production and sales units in Europe, Asia, and America, Radici Group closed its 2022 financial year with slight growth over 2021. EBITDA reached EUR 157 million in 2022, and net income for the year was EUR 80 million.

“We are moderately pleased with the 2022 figures,” Angelo Radici, president of RadiciGroup, commented. “Despite an unpredictable and challenging year, we were able to achieve positive results. Although the rise in energy costs began to be felt in January, we managed to maintain our position in the first three months of the year due to a significant increase in demand. From the second quarter onwards, the European market experienced a significant slowdown due to the outbreak of war in Ukraine, which exacerbated the already soaring costs of energy and raw materials. The situation was completely out of hand and made worse by the fact that some raw materials were not available. This created significant challenges for us, especially in the chemical sector. We even had to stop operations at our Novara plant in the latter part of the year. Products similar to ours in the nylon supply chain from China and the US were being sold at a price lower than our variable cost.”

The president continues: “At Group level, our internationalisation strategy helped us mitigate geopolitical risks in various countries. As a result, we were able to offset the challenges in the European chemicals and textile markets by leveraging our global presence in High Performance Polymers, where our numbers have held strong. As we began 2023, we regained our footing. However, the global economic and industrial scenario for the rest of the year remains highly uncertain, and forecasts are notably cautious.”

Even in these difficult times, the Group has continued to invest. In 2022, the High Performance Polymers Business Area completed the acquisition in India of the engineering plastics branch of Ester Industries Ltd, a listed company. Additionally, it began installing two new production lines in Mexico and Brazil, and confirmed plans to install a new extrusion line at the Villa d’Ogna production site in the province of Bergamo. These choices align with the Group’s goal of enhancing its worldwide presence and boosting competitiveness in high-potential growth markets. In a year where energy and raw material costs were certainly problematic, operating in geographically diverse markets and with varied applications proved to be an important tool in addressing the challenges. In this vein, a new production site spanning over 36,000 square metres has recently been inaugurated in China. The move is aimed at doubling the production capacity in line with the market’s growth expectations.

Extending the time horizon to 2018-2022, the Group has invested over EUR 277 million to enhance the competitiveness of its companies, implement Best Available Techniques, improve energy efficiency, reduce emissions, and conduct research and development activities aimed at introducing sustainable processes and solutions. These efforts include the research and development activities of Radici InNova, which are heavily focused on the circular economy.

On the side-lines of the three-day fair, Techtextil India’s 2023 edition scheduled from 12th –14th September, will be hosting SITRA’s Expo on Medical Textiles called MEDITEX^TM2023 - an exclusive pavilion that focuses on medical textiles with live demonstrations and high-growth application areas offering a global platform for business opportunities.

Medical textiles are fabrics that are used in the healthcare industry for a variety of purposes ranging from maintenance of hygiene, prevention/control of infection to saving the life of critically ill patients. In recent years, the demand for medical textiles has been growing in India due to rise in geriatric population, accidents and life style diseases. Besides, various initiatives of Governments, increased awareness about hygiene, medical tourism and advancements in textile technology are driving the growth of medical textile industry in India. According to a report published by Ministry of Textiles on the Indian Technical Textiles market, the market potential of medical textiles market at 5% is valued approximately at USD 1.125 billion in the year 2021-22.
 
SITRA is a Textile Research Association, sponsored by the industry and supported by the Ministry of Textiles (MoT), with the contribution to the textile industry for more than 65 years. Its Centre of Excellence for Medical Textiles, established by MoT in 2008, has been organising MEDITEX - an International Medical Textile Expo cum Conference in 2014 and 2018 respectively. This exclusive fair for medical textiles has been offering a global platform for business opportunities in the varied application of medical textiles which has witnessed a good participation from the industry. For 2023, the expo will be held as a part of Messe Frankfurt India’s Techtextil India 2023.

Target topics based seminars, supported by Ministry of Textiles, Government of India would also be held concurrently along with the exhibition wherein the speakers would be discussing about current and evolving technologies in medical textiles. Stakeholders and visitors to the conference as well as the exhibition would get to witness and benefit from world class, state-of-the-art medical textiles products/machineries and technologies.

On June 9, Hohenstein celebrates World Accreditation Day (WAD2023) along with 30 years as an accredited testing laboratory. In 1993, Hohenstein’s first lab received official certification to test textile products competently, reliably and impartially according to internationally recognized standards. With the expansion of its testing business, the company, headquartered in Boennigheim, Germany, has since gained numerous other accreditations for its global laboratories.

"The accreditations give our customers confidence that we comply with the required quality control procedures," says Julia Seeberg, who as Head of Quality Management also oversees the regular monitoring of the laboratories by DAkkS, the Deutsche Akkreditierungsstelle. “Everything possible is done to ensure the integrity of the test results.” In addition to DAkks accreditations of the testing laboratories for textile technological, biological, chemical and physical tests, Hohenstein is accredited as a certification and inspection body. Hohenstein's 75 years of expertise in the testing business complement its accreditation and provide an important basis for its long-standing customer trust.

Hohenstein laboratories in China, Bangladesh, Hong Kong and India have accreditations from the respective national and international accreditation bodies. The labs celebrate World Accreditation Day by highlighting the importance of accredited laboratories for the product quality and sustainability. "The demands of suppliers and consumers have increased," Julia Seeberg also notes. “For manufacturers to remain credible, it is even more imperative to demonstrate compliance with defined and standardized quality criteria.”

The globally valid quality standard for testing and calibration laboratories is DIN EN ISO/IEC 17025. The standard specifies general requirements for the competence, impartiality and uniform working methods of laboratories that operate internationally. Accreditations in accordance with DIN EN ISO/IEC 17020 and 17065 exist for the inspection and certification bodies. In addition, Hohenstein is an accredited testing laboratory for medical devices, where biological, chemical and physical laboratory tests are carried out. These tests form the basis for conformity with the European Medical Device Regulation (MDR).

"Policy makers need to consider that global dimension."
 
EURATEX released its 2023 Spring Report, which analyses latest trade flows for textiles and clothing products.

In 2022, EU trade in textiles and clothing has exceeded, for the first time in history, the €200 billion mark. This record growth of total trade is mainly due to a sharp increase of clothing imports (+36,6% in value), especially from China and Bangladesh, which outweighs Europe’s positive export performance. As a result, the EU’s trade deficit in textiles and clothing has increased to €70 billion, which is 48% higher than the year before.

Such a growing deficit is a cause for concern; the objective of the EU’s Industrial Strategy to strengthen resilience and “strategic autonomy” is not happening. Instead, the dependency has increased, and becomes critical in certain raw materials and fibres.

It also challenges the Commission’s ambition is to promote – and prevail – high quality and sustainable textile products on the Single Market – regardless where they have been produced. With imports now reaching €140 billion, it will be a challenge to effectively control the quality and compliance over these imports. Market surveillance will need to be stepped up massively, without becoming a barrier to trade.

The efforts on the EU’s export performance need to be strengthened, so as to rebalance the European trade relations with the rest of the world. EU companies are world leader in high end fashion products and in technical textiles. More needs to be done to support their activities in established markets but also emerging economies. For instance, the ongoing FTA negotiations with India should focus on improving market access and ensure “fair” competition with local companies.

The EURATEX Spring Report highlights significant differences between trade in value and in volume. EU’s export of textile products has increased by 13% in value, but actually dropped by nearly 7% in volume. This obviously reflects the very high inflation figures from last year, caused initially by the rising energy prices and changing central bank policies. This in turn leads to uncertainty with the consumer, resulting in low demand and gloomy prospects for the entire value chain.

Director General Dirk Vantyghem commented on these latest figures: “This report confirms once again that “textiles” is one of the most globalised sectors of the European economy, and hence the importance of taking that global dimension into account, when designing EU and national policies. Failing to do so may have a devastating effect on the global competitiveness of the European textile industry.

Looking forward, he added: “It is essential to stabilise inflation, restore consumer confidence and ensure a level playing field for all operators in the textile industry. On that basis, European companies can prosper and offer quality jobs to 1.3 million workers”.

The Organic Cotton & Textiles Conference, taking place in Indore, India over three days, from February 27-March 1^st is set to bring together a diverse group of key players from every part of the textile supply chain. Farmers, farm groups, industry representatives, non-profits, academics, suppliers, brands, certifiers, government representatives and policymakers will join nearly 200 guests at the multi-day event. The aim is to foster collaboration, explore innovative ideas, listen to those on the ground and focus discussions to develop a shared vision to boost the organic textile supply chain worldwide.

Co-hosted by  OCA, GOTS, and IFOAM - Organics International, the conference will address a range of subjects including social conditions, transparency through innovation, scaling up organic through investment, as well as sessions tackling certification, decent work and environmental impacts. The event also gives voice to farmers, who join as panellists, in a dedicated Q&A session with seven organic cotton farmers from the region. On the third day, organised by OCA, the organic farmers will welcome attendees to their communities during field trips west to Petlawad to witness organic practices at ground level.

“By addressing these important issues and fostering a dialogue between participants, the conference aims to develop innovative solutions that can drive progress and growth in the sector", says Bart Vollaard, Executive Director of OCA. "We are thrilled to be joining forces with GOTS and IFOAM to create positive change in the organic textile sector."

“Together with IFOAM - Organics International and OCA, GOTS wants to increase visibility of organic and at the same time enhance integrity of organic fibres and textiles. This conference shall serve to strengthen the sector by addressing obstacles and work on effective solutions, in consultation with all relevant and committed stakeholders”, notes Claudia Kersten, Managing Director of GOTS.

Sarah Compson of the IFOAM - Organics International World Board adds “Organic agriculture directly addresses some of the most pressing challenges of our time. IFOAM - Organics International is delighted to collaborate with OCA and GOTS to bring together people from across the whole textile sector and address the barriers and opportunities for scaling organic cotton production worldwide.”

With a strong line-up of notable speakers and guests in a supportive and engaging atmosphere, and a unique approach that connects participants from every step of the supply chain, the Organic Cotton & Textiles Conference is set to be a valuable and transformative event for key stakeholders involved in the organic textile industry.

Price Trends

• The nearby cotton futures contract on the Intercontinental Exchange was down just 1% in December and closed the year at $1.84 per kilogram. A year earlier, the March contract closed at $2.30 per kilogram.  
  
  Cotton futures have been inverted for nearly three years because of supply chain disruptions that prevented normal on-time deliveries of international shipments. With the easing of container shortages and increased sailings, cotton futures are gradually reverting to the normal pattern in which contracts for forward delivery exceed nearby contracts by the cost of insurance, storage and interest between delivery months. The May and July 2023 contracts also finished 2022 at $1.84 per kilogram. In November, the May and July contracts were each several cents per kilogram lower than the March contract.
• The Eastern Market Indicator of prices for fine wool in Australia rose 9% in December to US$9.06 per kilogram. A year earlier, the EMI was $9.66. Australian analysts note that sheep for meat, cattle, and grain production, are competing alternatives for the use of land, and wool prices must continue upward if production is to be maintained in 2023.
• Prices quoted by the Indian Jute Balers Association (JBA) at the end of December converted to US$ fell 2% from a month earlier to an average of 74 cents per kilogram. The decline occurred entirely because of a weakening exchange rate. Prices in Rupee rose marginally. A year earlier, quoted prices averaged 84 cents per kilogram. The 16-percent decline year-on-year was caused about equally by a decline in quoted prices in Rupee and a weakening of the exchange rate.  
  
  The Indian jute industry is almost entirely focused on domestic demand, while half of total demand in Bangladesh comes from exports. Because of shortages of higher quality jute, export prices in Bangladesh are reportedly rising.
  (https://www.wgc.de/en/produkte/jute)
  
  India extended the anti-dumping duty at the end of December on jute and jute products imported from Bangladesh and Nepal for a period of five years. Bangladesh had urged the Indian government not to accept recommendations for extension, while the Indian industry was lobbying to ensure the duty remained in place. The duty rates range from approximately $6 per tonne at current exchange rates for low-quality fibres to $350 per tonne for finished products. The duty was originally imposed in January 2017 and was to expire at the end of 2022.
• Prices of silk in China rose 2% during December to US$28.0 per kilogram. Prices in yuan fell marginally during the month, but the RMB rose 3% against the USD. Prices of textile-grade silk in China were essentially unchanged at the end of 2022 compared with the end of 2021. However, prices closed 2022 about 40% above the average level pre-Covid. https://www.sunsirs.com/uk/prodetail-322.html and  https://businessanalytiq.com/procurementanalytics/index/raw-silk-price-index/ .
• Coconut coir fibre in India quoted in US$ remained in a narrow range, averaging $0.205 per kilogram in December. Prices in Rupee have been stable, and changes in dollar prices reflect changes in the exchange rate.

 
Production
 
World Natural Fibre Production in 2022 is estimated as of early January at 32 million tonnes, approximately one million below production in 2021 and down 900,000 tonnes compared with the estimate in early December.

World cotton production is estimated at 24.2 million tonnes in 2022/23 (August to July), 700,000 tonnes lower than in 2021/22 (ICAC.org). World cotton production rose from 20 million tonnes to 25 million between 2020/21 and 2005/06, but there has been no growth in the nearly two decades since.  
 
World production of jute is forecast down nearly 400,000 tonnes in 2022 because of inadequate rainfall during the harvest period to permit proper retting. Production in India is estimated up by 100,000 tonnes to 1.7 million tonnes, but production in Bangladesh fell by nearly one-third to just one million tonnes.
 
Production of coir, flax and sisal in 2022 are each estimated based on recent trends. Coir and flax have each been trending upward over the past decade, while world sisal production has been largely stable.

World wool production is forecast up 5% in 2022 to 1.09 million tonnes (clean), the highest since 2018. The Australian Wool Production Forecasting Committee issued its third estimate of 2022/23 production in December, keeping the estimate unchanged from September. Above-average rainfall in Australia, and across most of the Southern Hemisphere, is resulting in better pasture conditions and a rebuilding of sheep numbers. Sheep numbers shorn in Australia are climbing from 67 million in 2020/21 to 72 million in 2021/22 and to an estimated 75 million in 2022/23. https://www.wool.com/market-intelligence/wool-production-forecasts/  
 
According to the International Sericulture Commission (https://www.inserco.org/), silk production in China dropped from 170,000 tonnes in 2015 to 53,000 in 2020, with further declines estimated during Covid. Consequently, world silk production dropped from 202,000 tonnes in 2015 to 92,000 in 2020, and estimates of production during 2022 remain below 100,000 tonnes.

Textile companies could take full advantage of expanded print opportunities with EFI™ Reggiani textile solutions presented at the 8-13 December India ITME Exhibition in Greater Noida.

The EFI Reggiani TERRA Silver printer was shown at ITME 2022: a solution to enter the industrial printing segment with a short, smart and green process. The EFI Reggiani TERRA Solution eliminates the need for steaming or washing on direct-to-textile applications, using a greener, more efficient polymerisation process that takes place as the printed textile goes through the printer’s on-board dryer. As a result, users can achieve superior printing results while using less time, water, and energy.

The EFI Reggiani exhibit at ITME was also promoting:

•  EFI Reggiani HYPER printer, a scanning printer available in 1.8-metre, 2.4-metre or 3.4-metre widths that prints at up to 20 linear metres per minute peak speed, making it the fastest textile scanning printer on the market;
• Mezzera Concord, the continuous rope washing line from the specialist in washing solutions that transports fabric by overflow for tensionless running with an independent squeezing mangle for each channel;
• One of the industry’s broadest line-ups of high-end, superior-quality textile inks, including EFI Reggiani AQUA and EFI Reggiani Diamond reactive, IRIS dye-sublimation, ARIA direct disperse, FUOCO acid, and GEA and TERRA pigment inks; and
• Inèdit, recently acquired by EFI Reggiani, a developer of raster image processors (RIPs) and related software for digital industrial textile printing with their product portfolio that features proven, highly advanced workflow solutions for textile profiling, calibration, design integration and much more.

With the opening of another laboratory in Shanghai, China, testing service provider Hohenstein is growing its international network. Starting in the first quarter of 2023, the new textile laboratory in the Pudong District industrial park will supplement the Hong Kong laboratory capacity with testing and on-site inspection services in the hot spots of textile production.

The new laboratory will offer suppliers, manufacturers, brands, and retailers a wide range of testing service on textile quality. "Hohenstein stands for innovation and quality. We are very pleased to celebrate another milestone in our international expansion, while following these principles," said Prof. Dr. Stefan Mecheels, who is the third generation to lead the family-run company. "No matter where the examinations, tests and analyses are carried out, all our laboratories work with state-of-the-art equipment and the same high standards."

The laboratory locations in Germany, Hungary, Hong Kong, Bangladesh, India and now Shanghai, offer shortened turnaround and sample transport times. In some locations, Hohenstein offers sample pick up services from the customer to the lab for testing.

The plan of the European Commission to propose a price cap on wholesale gas price at 275€/MWh would be a bitter disappointment for the European textiles and clothing manufacturers, said EURATEX.

November 22nd, EURATEX stated in a letter to EC President, Ursula von der Leyen, that any price cap above the level of 80€euro/MWh would not help the EU industry – the textile sector in particular – to survive the current crisis. Indeed as early as July 2021, the wholesale gas price in the EU was below 30€/MWh. Now, the EU industry is facing gas and energy prices that have exceeded any coping capacity: from the record-high 320€/MWh last August, the price has reached to 127€/MWh today. Still, it is more than 300% than the business as usual prices.

The very existence of the European industry is at stake and with it the European sustainability agenda – and Europe’s capacity to implement it. Furthermore, Europe will lose its strategic autonomy, which guarantees essential goods and services are made available on the European Internal Market. If we continue on this path, the EU will soon become totally dependent on foreign imports with no leverage to implement its sustainability agenda, let alone lead the transition to a circular economy on the international stage.

At present, the EU industry is facing a dire international competition with the industry in China, India and the US working at energy prices of around 10$/MWh. In addition, these competitors are benefitting of sky-high subsidies from their own governments: the rollout of the US $369bln industrial subsidy scheme is just the latest example.

EURATEX Director General, Dirk Vantyghem, believes that “while the EU Industry is under immense, unprecedented pressure, a price cap at 275€/MWh would be meaningless: the European industry will be permanently pushed out on the market. The industry is at the heart of the European way of life and the fundament of our social market economy. The EU must save its industry to save Europe. The moment to act is now.”

The 11^th India ITME will take place from December 8.– 13., 2022, in Noida, India. Over 1,800 exhibitors and more than 150,000 trade visitors from the textile and apparel industry from all over the world are expected. Groz-Beckert will be presenting innovations from its various product areas..

India ITME takes place every four years and is the ideal technology platform for forward-looking innovations in the textile world. At the 11th edition of India ITME, exhibitors will be presenting their highlights from research and development across 15 halls.

The Knitting Product Division will be presenting several new products at India ITME: Among them the SAN™ SF staple fiber needle and the SNK SF staple fiber sinker, which are specially designed for use on large circular knitting machines. The division will also be exhibiting the SAN™ TT for application-related use in the field of technical textiles for flat knitting machines, as well as a needle which enables the advance into new dimensions of gauge in the flat knitting sector.

Groz-Beckert will also be demonstrating its competence as a system supplier in the field of warp knitting at the India ITME. The warp knitting machine needles and system parts from Groz-Beckert are precisely matched to one another and achieve a uniform and flawless warp knitting process.

With the WarpMasterPlus and the KnotMaster, the Weaving product division presents the latest generation of drawing-in and knotting machines from Groz-Beckert. They are particularly distinguished by their ease of operation and flexibility.

The product area Felting (Nonwovens) presents its product and service highlights for the nonwovens industry. These include the HyTec P jet strip for spunlace customers as well as the GEBECON felting needle, the dur needle, EcoStar felting needle and the Groz-Beckert customer product. The HyTec P-nozzle strip is characterized by improved handling and higher hardness. The patented GEBECON felting needle offers an improved surface finish and optimized breakage bending properties.

The Carding product area will present its further developments for the spinning industry. These include the new stationary flat series, the TV56 revolving top and the cylinder wire set with special tooth geometry. The new stationary flat series is characterized by an innovative tooth geometry and a new type of tooth distribution. The new TV56  revolving top with its new setting pattern and 560 points per square inch is particularly easy to clean. The improved cylinder wire convinces with its special and patented tooth shape, which has a positive effect on the maintenance effort. This makes it particularly suitable for quality-oriented cotton spinning mills producing high-quality yarns. Visitors can also look forward to the new InLine card clothing series for the nonwovens sector.

In the Sewing exhibition area, the focus is on technical textiles – in particular the manufacture of car seats. The answer to the high demands of sewing car seats is the special application needle SAN® 5.2 from Groz-Beckert. The special geometry gives it sufficient stability. The double groove at the point improves thread guidance and leads to a uniform seam pattern, especially in multidirectional sewing processes. The scarf chamfer on both sides of the needle prevent skipped stitches and optimize loop formation. The wear protection is increased by the titanium nitride coating GEBEDUR. In addition, the quality management INH will be exhibited and the functions and contents of the customer portal will be presented.