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30.10.2024

Triggers crisis in Europe’s textiles sorting and recycling sector a domino effect?

Europe’s textile sorting and recycling industry is currently experiencing an unprecedented crisis, even more significant than during the COVID-19 pandemic. The sector is under immense pressure due to several global disruptions, including the war in Ukraine, logistical challenges in Africa, and the rise of ultra-fast fashion.

As a result, there is an oversupply of used textiles and a sharp decline in demand from traditional export markets. The trade in used textiles between the EU and non-EU decreased from 464,993 tonnes in 2022 to 430,185 tonnes in 2023. Looking at Germany alone, the exports of used textiles to Ghana (one of Europe’s key export markets) have decreased from 7911.2 tonnes in 2020 to 4532.9 tonnes in 2023. Additionally, demand for recycled materials remains low: recycled cotton had an estimated production volume of 319 000 tonnes in 2023 (compared to 24.4 million tonnes of virgin cotton) globally.

Europe’s textile sorting and recycling industry is currently experiencing an unprecedented crisis, even more significant than during the COVID-19 pandemic. The sector is under immense pressure due to several global disruptions, including the war in Ukraine, logistical challenges in Africa, and the rise of ultra-fast fashion.

As a result, there is an oversupply of used textiles and a sharp decline in demand from traditional export markets. The trade in used textiles between the EU and non-EU decreased from 464,993 tonnes in 2022 to 430,185 tonnes in 2023. Looking at Germany alone, the exports of used textiles to Ghana (one of Europe’s key export markets) have decreased from 7911.2 tonnes in 2020 to 4532.9 tonnes in 2023. Additionally, demand for recycled materials remains low: recycled cotton had an estimated production volume of 319 000 tonnes in 2023 (compared to 24.4 million tonnes of virgin cotton) globally.

Consequently, prices for second-hand textiles have plummeted, while the costs of collection, sorting, and recycling have skyrocketed. Since spring 2024, the prices for sorted second-hand garments no longer cover processing costs, leading to major cash flow problems for sorting operators. Warehouses are becoming overwhelmed, increasing the risk of textile waste being incinerated.

In a joint statement EuRIC Textiles and Municipal Waste Europe expressed their concerns about the development of Europe’s textiles sorting and recycling sector. They have clearly specified what support they expect from Brussel:

“We call on the EU to encourage Member States to lower VAT on textile repair, reuse, and recycling activities, within the existing VAT Directive framework, and explore the possibility of introducing a tax on new, petroleum-based materials. Such measures, if adopted at national levels, would incentivise the use of recycled materials and reduce the environmental impact of virgin textile production.

This situation is likely to raise processing costs for municipalities, potentially resulting in higher waste disposal fees for residents, with the fear that the textiles will be thrown in the residual waste instead. Downstream players in the recycling chain, such as tearing and spinning mills, are also feeling the strain, leading to significant staff cuts.

To avert widespread bankruptcies, immediate financial and legislative support is essential. Short-term financial incentives for EU companies that contribute significantly to a sustainable circular textile chain are needed to safeguard the industry from collapsing. Investment in recycling technologies and infrastructure, alongside targeted support for municipalities dealing with textile waste stagnation, is crucial. We urge the EU to facilitate public-private partnerships to foster innovation in textile recycling and to scale up recycling technologies. This will help increase Europe’s capacity to process textile waste sustainably and efficiently. A swift revision of the Waste Framework Directive (WFD) and rapid implementation of Extended Producer Responsibility (EPR) schemes are also imperative.

In the mid-term, efforts should focus on making the textiles reuse and recycling sector competitive, in line with Commission President Ursula Von der Leyen’s ambition for a competitive and strong circular economy (through a future Clean Industrial Deal and Circular Economy Act). To reach this ambition, the EU needs to increase demand for recycled textiles, expand recycling capacity, and promote the use of sustainable materials through upcoming ecodesign requirements. We call for the mandatory inclusion of a percentage of recycled textile content (most preferably from post-consumer textiles) in all new textile products placed on the EU market, with a clear trajectory for increasing this percentage over the coming years. Without urgent action, Europe risks undermining its climate goals and jeopardising the future of its textile sorting and recycling industry.”

Source:

EuRIC Textiles & Municipal Waste Europe

24.10.2024

SGL Carbon SE: Impairment in the Carbon Fibers business unit

With the publication of the half-yearly figures for 2024, SGL Carbon already announced that the company expects to achieve its adjusted EBITDA guidance for fiscal year 2024 at the lower end of the range of €160 to 170 million. Based on the preliminary figures for the first nine months of the fiscal year 2024, SGL Carbon confirms this statement.

With the publication of the half-yearly figures for 2024, SGL Carbon already announced that the company expects to achieve its adjusted EBITDA guidance for fiscal year 2024 at the lower end of the range of €160 to 170 million. Based on the preliminary figures for the first nine months of the fiscal year 2024, SGL Carbon confirms this statement.

According to preliminary figures, Group sales of SGL Carbon for the first nine months of fiscal year 2024 decreased by 4.8% year on year to €781.9 million (9M 2023: €821.7 million). Preliminary adjusted EBITDA, on the other hand, remained at a comparable level to the prior-year period, at €127.6 million (9M 2023: €130.0 million). Despite the slight sales decline, the adjusted EBITDA margin improved to 16.3% after nine months in 2024 (9M 2023: 15.8%). The reasons for the improved adjusted EBITDA margin are, in particular, product mix effects in the Graphite Solutions and Process Technology business units. By contrast, the ongoing weakness in demand for carbon and textile fiber products in the Carbon Fibers business unit and the early termination of a customer contract at Composite Solutions weighed on the Group's sales and earnings development.

The business unit Carbon Fibers manufactures carbon and textile fibers for the wind and automotive industries as well as various industrial applications. As expected by the Company for the fiscal year 2024, demand for carbon fibers from the wind and automotive industries remains weak. In addition, there is increasing competitive and price pressure due to global overcapacity for both carbon fibers and textile fibers. The company does not expect demand to recover in the coming months and the realizable prices for these products will remain at a low level beyond 2025. Furthermore, SGL Carbon expects that the anticipated improvement in sales and earnings for the Carbon Fibers business unit will be delayed and is revising its existing medium-term planning for Carbon Fibers.

Due to the associated expected deviation an event-driven impairment test is currently being carried out. This indicates a non-cash impairment charge of €60–80 million, which will be recorded in the fourth quarter of 2024. The impairment relates exclusively to Carbon Fibers; the operating business of the other business units is not affected.

SGL Carbon's equity ratio after the impairment is approx. 40% (September 30, 2024: 43.3% according to preliminary figures).

The review of all strategic options for the Carbon Fibers business unit, which was announced by SGL Carbon on February 23, 2024, and has already begun, remains unaffected by the impairment and is currently continuing.

Bangladesh Climate Action Forum Photo Bangladesh Apparel Exchange
11.10.2024

Bangladesh Climate Action Forum 2024

The Bangladesh Climate Action Forum 2024 was held at the Radisson Blu Water Garden Hotel on 10th October 2024. Over 450 delegates from across the globe came together to foster dialogue, collaboration, and actionable strategies to advance Bangladesh's sustainability goals.
The Bangladesh Apparel Exchange (BAE) organized the forum as a pivotal platform uniting industry leaders, government officials, climate advocates, innovators, brands, development organizations, policymakers, and academics.

The theme of this year's Bangladesh Fashion: Driving Collective Climate Action highlighted the urgent need for sustainability within the fashion and apparel sector. The forum was significant as a catalyst for dialogue and collaboration among various stakeholders. Enhancing climate leadership and technical skills makes the forum crucial in propelling the nation toward a sustainable and resilient future.

The Bangladesh Climate Action Forum 2024 was held at the Radisson Blu Water Garden Hotel on 10th October 2024. Over 450 delegates from across the globe came together to foster dialogue, collaboration, and actionable strategies to advance Bangladesh's sustainability goals.
The Bangladesh Apparel Exchange (BAE) organized the forum as a pivotal platform uniting industry leaders, government officials, climate advocates, innovators, brands, development organizations, policymakers, and academics.

The theme of this year's Bangladesh Fashion: Driving Collective Climate Action highlighted the urgent need for sustainability within the fashion and apparel sector. The forum was significant as a catalyst for dialogue and collaboration among various stakeholders. Enhancing climate leadership and technical skills makes the forum crucial in propelling the nation toward a sustainable and resilient future.

In his opening remarks, Mostafiz Uddin, Founder & CEO of Bangladesh Apparel Exchange, said:
“You care about the planet, you care about the country, and that is why all of you are here today. All of you are my inspiration. Climate action is no more a burden. For entrepreneurs, it's a business opportunity.”
“This is how I think. For all of you, you all love Bangladesh and want to eliminate poverty and disasters. Cheap labor is no longer a competitive advantage for Bangladesh. If we as entrepreneurs do not achieve the target set by our clients, we will not be able to succeed. To achieve the targets, the manufacturers need more shared responsibility, collaboration, and support.”

This year’s event featured keynote addresses, panel discussions, presentations, and workshops, where more than about 42 national and international experts shared insights on building a climate-resilient and carbon-neutral future through collaboration and innovation and the launch of two significant initiatives occurred during the event: the Soldiered 'Better Mills Initiative' and the OnetrueSOLar Fund. In addition, key presentations focused on Solar Rooftop System Optimization, Thermal Energy System Optimization, and Clean by Design: Lessons from Bangladesh and Impact. dedicated to enhancing sustainable practices in Bangladesh. Key partners supported the forum included the Apparel Impact Institute, Cascale, the European Union, GIZ, H&M, the Embassy of the Netherlands in Bangladesh, PDS Limited, and Target.

The event unites many contributors such as the Ministry of Foreign Affairs; Ministry of Power, Energy, and Mineral Resources; Ministry of Environment, Forest and Climate Change; the Bangladesh Power Management Institute (BPMI), the Embassy of Denmark in Bangladesh, the Embassy of France in Bangladesh, the Embassy of Sweden in Bangladesh, ILO, Laudes Foundation, Oxfam in Bangladesh USAID Bangladesh.

Additionally, an engineering workshop showcased the expertise of industry-leading organizations, including Armstrong Fluid Technology, Forbes Marshall, Grant Thornton Bharat LLP, Illukkumbura Industrial Automation (Pvt) Ltd., and Jinko Solar. Over 300 engineers from apparel manufacturing units participated, gaining practical strategies to drive sustainability and decarbonization efforts within their organizations.

Photo PaperTale
10.10.2024

PaperTale: Digital twin supply chain

A digital twin supply chain has recently been established by Swedish start-up PaperTale for Sail Racing – a brand well known for its durable and long-lasting performance garments for the marine industry.

The PaperTale system for Sail Racing fully maps a complex network, beginning with farmers in Australia, moving to garment workers in Pakistan and finally reaching consumers in Scandinavia. It incorporates data collection from the three countries using NFC tags and blockchain technology to provide detailed supply chain insights and ensure regulatory compliance for the brand.

Introducing the usually anonymous factory workers responsible for each individual garment to the person buying it is what sets PaperTale apart from other tracking systems – a next level of personalisation that will make a valuable contribution to raising the debate on the true cost of textiles.

A digital twin supply chain has recently been established by Swedish start-up PaperTale for Sail Racing – a brand well known for its durable and long-lasting performance garments for the marine industry.

The PaperTale system for Sail Racing fully maps a complex network, beginning with farmers in Australia, moving to garment workers in Pakistan and finally reaching consumers in Scandinavia. It incorporates data collection from the three countries using NFC tags and blockchain technology to provide detailed supply chain insights and ensure regulatory compliance for the brand.

Introducing the usually anonymous factory workers responsible for each individual garment to the person buying it is what sets PaperTale apart from other tracking systems – a next level of personalisation that will make a valuable contribution to raising the debate on the true cost of textiles.

“Our system captures the supply chain of a product from cradle to grave, in real-time,” says company founder Bilal Bhatti. “By integrating it into existing planning and management systems, factories and brands can gather and verify the flow of material and their social and environmental data in real-time. Data is added to a public blockchain so it is extremely hard to tamper with, further increasing trust. When a product is finalised, consumers can scan an NFC tag or QR-code to view the entire journey a product has travelled, which craftsmen were involved in the production, and if they have been paid fairly.”

“This technology is a game-changer in that we provide verified information about the social aspects of the manufacturing process and not just information about the components of the garment,” says Bilal. “We need products and processes to be much more connected with people, especially in such a complex supply chain where a high percentage of the work is carried out by contract workers who are unregistered and often exploited.

“When the entire product journey is visible using real-time and verified data, higher trust is created all the way from factories to consumers. Our system makes it possible to start the dialogue on the cost of sustainability, paving the way to increase incentives that result in proper wages, contracts and workplace safety. In respect of environmental sustainability, real-time data makes real-time measurement possible, which will also stimulate brands and factories to reduce emissions, water usage and pollution.”

The collaboration is further highlighted as the primary case study in a just-released white paper prepared by Deloitte, as a guide to how companies could most effectively prepare for the European Commission’s upcoming Digital Product Passport (DPP) and other related legislation.

Source:

PaperTale

Photo Fabtex
10.10.2024

Fabtex Georgia: A Promising Textile Fair in the Caucasia Region

Fabtex Georgia 2024 International Textile Industry Fair has concluded with remarkable success, bringing together over 1,050 professional visitors from 11 countries, including Georgia, Russia, Armenia, India, China, Ukraine, Germany, Iran, Turkey, Poland, and Pakistan.

This year’s exhibition featured 52 exhibitors from Georgia, Turkey, Azerbaijan, the UAE, Uzbekistan, and China, underscoring the event's international significance.

The exhibition's exhibitor profile primarily focuses on knitted fabrics, woven fabrics, fabrics for workwear and uniforms, various accessories, garment and sewing machinery, and ready-to-wear items.

Georgia has a long-standing tradition in the textile sector, dating back to Soviet times, and is currently home to production for international brands such as Tommy Hilfiger, Zara, Moncler, and Puma.

Fabtex Georgia 2024 International Textile Industry Fair has concluded with remarkable success, bringing together over 1,050 professional visitors from 11 countries, including Georgia, Russia, Armenia, India, China, Ukraine, Germany, Iran, Turkey, Poland, and Pakistan.

This year’s exhibition featured 52 exhibitors from Georgia, Turkey, Azerbaijan, the UAE, Uzbekistan, and China, underscoring the event's international significance.

The exhibition's exhibitor profile primarily focuses on knitted fabrics, woven fabrics, fabrics for workwear and uniforms, various accessories, garment and sewing machinery, and ready-to-wear items.

Georgia has a long-standing tradition in the textile sector, dating back to Soviet times, and is currently home to production for international brands such as Tommy Hilfiger, Zara, Moncler, and Puma.

Georgia’s strategic location at the crossroads of Western Asia and Eastern Europe, coupled with its rich textile history, makes it an ideal hub for textile manufacturing and investment. The country boasts several Free Trade Agreements (FTAs) with Turkey and CIS nations, as well as a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, providing access to a market of approximately 900 million people without customs duties.

Source:

Kuzey Expo