From the Sector

Spinnova has decided to evaluate its existing strategy to prioritise areas that in the short- to medium-term deliver the fastest time to positive cashflow generation and that create the most value for the company’s stakeholders.
 

The company expects to conclude the assessment of its strategy in the coming months, after which the results will be presented in more detail including key actions and any changes to medium- and long-term business targets. Financial guidance for full year 2023 is unchanged.

Spinnova’s unique sustainable technology is a key differentiator. To recognize the value of its technology offering, the company has decided to review opportunities to expand the licensing of its technology to new customers. In the future, Spinnova sees great potential in developing circular raw materials such as textile waste and agricultural waste, as well as recycled SPINNOVA® fibre. Initial tests show that refining these raw materials into micro fibrillated cellulose (MFC) may be more efficient than refining other raw materials Spinnova has worked with. The company has received significant interest from customers wanting to build plants that convert multiple circular raw materials into SPINNOVA® fibre.

Together with Suzano, Spinnova is gathering the learnings from the first Woodspin plant to support the decision making for the next Woodspin factory investment. At the same time Spinnova continues to further develop the technology concept to reduce capital expenditure per tonne of fibre produced compared to the first Woodspin plant. While Suzano develops its MFC process it is expected that the first Woodspin facility will mainly be used for R&D to test new MFC batches and that commercial production volumes will be limited in the short term. The market opportunity and ambition level with Suzano to scale Woodspin’s production capacity remains unchanged

Spinnova will continue to have the option to invest into all future Woodspin and Respin plants, as per the respective joint venture agreements. The company will evaluate whether it participates in these investments based on the value it creates for Spinnova’s shareholders compared to other opportunities to invest Spinnova’s capital. Regardless of whether Spinnova invests its own capital into future plants, Spinnova will continue to be the exclusive technology provider to Woodspin and Respin, and they will continue to be important technology customers of Spinnova.

INDA, the Association of the Nonwoven Fabrics Industry, announced the finalists that will compete for the RISE^® Innovation Award. RISE^®, the Research, Innovation & Science for Engineered Fabrics Conference, will take place September 26-27 at Talley Student Union, North Carolina State University, Raleigh, NC.

The finalists who will present their product innovations on Tuesday, September 26th, include:

ESC-8 – The JOA® Electronic Size Change Unit by Curt G. Joa, Inc.
The JOA^® ESC-8™ unit allows unprecedented Adult Pant design flexibility with the ability to process nearly limitless combinations of insert and chassis sizes at industry best speeds. Additionally, this technology enables the production of a greener, more sustainable product by eliminating up to 250 tons of material, 5 tons of glue, and 500 tons of greenhouse gas emissions every year.

BicoBio Fiber by Fiberpartner ApS
The BicoBio Fiber is a bicomponent fiber core sheath construction, developed from materials with a low carbon footprint. This fiber is designed to biodegrade in the environments where most plastics are found: landfills and the ocean. The fiber’s BioBased PE is produced from sugar cane and has a negative carbon footprint. The fiber’s recycled PET is GRS certified. PrimaLoft^® Bio™, a technology that enables polyester fibers to biodegrade, is utilized in the production of BicoBio Fibers. These fibers can be processed with a variety of nonwoven technologies.

Reifenhäuser Reicofil RF5 XHL by Reifenhäuser REICOFIL GmbH & Co. KG
Reicofil XHL (Extra High Loft) is the game changer for a super soft and drapeable nonwoven offering an incomparable feel the nonwoven market has never seen before. The outstanding soft touch is unique and intended for use in the hygiene sector. XHL focuses on low basis weight and high thickness with the best visual appearance. The high performance and efficient use of raw materials and energy ensure cost-effectiveness and environmentally-friendly production.

SAPMonit by TiHiVE
TiHive’s game-changing innovation, SAPMonit – a visionary French technology breakthrough – inspects millions of diapers weekly. SAPMonit delivers lightning-speed inline inspection of Super Absorbents weight and distribution, optimizes resources, detects flaws, and accelerates R&D. SAPMonit utilizes advanced see-through cameras, high-speed vision algorithms, and secure cloud integration, revolutionizing industry norms. SAPMonit has great potential for sustainability, cost reduction, and enhanced customer satisfaction.

The RISE Innovation Award winner will be announced Wednesday afternoon, September 27^th.

From 16 – 18 August 2023, 1,022 exhibitors from 13 countries and regions will occupy four halls and 100,000 sqm gross at the National Exhibition and Convention Center (Shanghai). This Autumn Edition of Intertextile Shanghai Home Textiles will return to its regular format, as a comprehensive platform held separately from Messe Frankfurt’s other autumn textile fairs. Complementing the strong lineup of exhibitors over all three days, a varied selection of fringe events will communicate key insights, offer industry specific inspiration, and facilitate cross-sector exchanges for fairgoers.

Buyers from 66 countries and regions have already pre-registered for the show, while a range of international brands are preparing to showcase their latest innovations. Multiple exhibitors will gather according to origin, with three country and region pavilions a must-see for fairgoers seeking exotic home textiles:

• Belgium Pavilion: products on show include bedding fabrics and sets, curtains and curtain fabrics, sofa covers, upholstery, and much more. With the pavilion set to feature a number of Belgian brands, its highlighted exhibitors are Libeco and Love Home Fabrics.
• Taiwan (China) Pavilion: multiple Taiwanese exhibitors, including JWL Fabrics Co Ltd, Maxland Home Textile Industrial Co Ltd, and Vanttex International Co Ltd, will demonstrate specific examples of the varied applications of their home textiles.
• Türkiye Pavilion: organised by Uludag Textile Exporters’ Association (UTIB), the pavilion will showcase a range of curtains, upholstery fabrics, and other home textiles, from suppliers such as Aleran Tekstil Inşaat Gida Sanayi Ve Ticaret Ltd Şti, Küçükçalik Tekstil San Ve Tic A Ş and Weavers Tekstil San Ve Tic A Ş.

Beyond the pavilions, buyers can easily locate their desired home and contract textiles via conveniently placed product zones, covering categories such as curtain and curtain fabrics; sun protection and window shades; upholstery and sofa fabrics; furniture leather; bedding and editors; loungewear and bath; and rugs. Wide-ranging suppliers from China and beyond will showcase their various products, featuring international exhibitors such as Elastron – Leather & Fabrics, Morgan and PT Sinar Continental; and well-known domestic manufacturers including Hangzhou Aico Home Textile Co Ltd, Huatex International (Hangzhou) Co Ltd and Zhe Jiang Maya Fabric Co Ltd.

Fringe programme: keeping fairgoers up-to-date with range of industry developments
Business exchange at Intertextile Shanghai Home Textiles will once again be supplemented by multiple concurrent events, for home textile players to learn more about the latest industry innovations, as well as upcoming design trends. These include:

• International Intertextile Trend Forum 2023–2024: held in the afternoon of day one, the event will be hosted by a prominent member of the ‘2023 – 2024 Intertextile International Lifestyle Trend’ trend committee, Mr Shen Lei, joined on the panel by multiple designers. They will discuss various impacts on designs, such as sustainability’s effect, the influence of emerging technologies, and international integration and localised expression.
• IKASAS Japanese Home Design Gallery and themed seminar: the leading Japanese furniture brand IKASAS will utilise a display area to illustrate its unique design philosophy, by showcasing innovative furniture products that predominantly align with contemporary trends. The company’s founder, Mr Akiyuki Sasaki, will delve deeper into his design views in a seminar held on the morning of day one.
• The New Power of Healthy Home Decoration Environment: a first-time collaboration with CRECC Full Decoration Council, the cross-sector conference in Hall 5.1 on day two will welcome keynote speakers from the real estate industry, to discuss topical insights at the intersection of realty and home textiles. The audience will come away with a widened scope of the different applications and demands of home textiles, and an ability to more accurately identify business opportunities within the property market.

• Currency-neutral revenues flat versus the prior-year level
• Top-line development reflects improved sell-out trends and conservative sell-in strategy
• Gross margin up 0.6pp to 50.9%; strong improvement compared to Q1 reflecting better sell-through and less discounting
• Operating profit of € 176 million includes extraordinary expenses of around € 160 million related to one-off costs, donations and accruals for future donations
• Inventory position improves substantially versus Q1 level to € 5.5 billion; now up only 1% year-over-year

In the second quarter of 2023, currency-neutral revenues were flat versus the prior-year level. The top-line development continued to be impacted by the company’s conservative sell-in approach in order to reduce high inventory levels, particularly in North America and Greater China. At the same time, adidas second quarter revenues benefited from the first sale of some of its Yeezy inventory. The initial product drop in June generated revenues of around € 400 million in Q2, which is largely in line with the Yeezy sales generated in the prior year’s quarter.

Footwear revenues grew 1% during the quarter, reflecting strong growth in football, basketball, tennis and US sports. Apparel sales declined 3% in the second quarter. As the apparel market continues to be particularly overstocked, the company continued its conservative sell-in strategy to improve sell-through and margins in the medium term. Accessories grew 8% during the quarter driven by growth in football.  

Lifestyle revenues were down during the quarter despite extraordinary demand for the company’s Samba, Gazelle and Campus franchises. While adidas slowly started to scale its offering for these product families during the second quarter, the total volume still only represents a small portion of the company’s overall business. Sales in the adidas Performance categories continued to show positive momentum. This reflects strong demand for new product introductions such as the latest iterations of its Predator, X and Copa football boots, as well as jerseys for both the FIFA Women’s World Cup 2023 and the company’s unique portfolio of football teams ahead of the start of the European club season. In addition, the Adizero product family in running continued to gain a lot of attention around marathon races across the world, translating into higher demand. At the same time, the brand’s Barricade tennis franchise grew strongly, leveraging the excitement around major tournaments.

In euro terms, the company’s revenues declined 5% to € 5.343 billion in the second quarter (2022: € 5.596 billion).

Stronger sell-out trends and conservative sell-in
As a result of the company’s initiatives to reduce high inventory levels, currency-neutral sales in wholesale declined 10% despite double-digit growth in Greater China and Latin America. At the same time, direct-to-consumer (DTC) revenues grew 16% versus the prior year. This development was driven by strong growth in both the company’s e-commerce business (+14%) as well as own retail stores (+19%), reflecting continued strong sell-out trends across most regions. The outperformance of the company’s DTC channel versus the wholesale business was also related to the first sale of the Yeezy inventory, which was done exclusively through adidas’ own e-commerce channel.

Double-digit growth in Greater China and Latin America
Currency-neutral sales in North America declined 16% during the quarter. The region is particularly affected by elevated inventory levels in the market and – in response to this – the company’s significantly reduced sell-in. Revenues in Greater China grew 16% in Q2, reflecting double-digit sell-out growth in both wholesale and own retail. Sales in EMEA were down slightly (-1%) despite double-digit DTC growth. While the company’s initiatives to reduce inventory levels and discounting weighed on the overall top-line development in the region, adidas recorded significantly improving full-price trends during the quarter. Revenues in Asia-Pacific increased 7% during the quarter, driven by strong double-digit growth in DTC. Latin America continued to increase at a double-digit rate (+30%), reflecting strong growth in both wholesale and DTC.

Gross margin improves to 50.9%
The company’s second quarter gross margin increased 0.6 percentage points to 50.9% (2022: 50.3%). This improvement was mainly driven by price increases the company has implemented as well as by an improved channel mix. At the same time, higher supply chain costs and unfavorable currency movements continued to strongly weigh on the gross margin development. While still adversely impacting the company’s gross margin in the quarter, discounting levels significantly improved compared to the first quarter of the year.  

Operating profit of € 176 million, resulting in an operating margin of 3.3%
Other operating expenses were up 3% to € 2.582 billion (2022: € 2.501 billion). As a percentage of sales, other operating expenses increased 3.6 percentage points to 48.3% (2022: 44.7%). Marketing and point-of-sale expenses decreased 7% to € 617 million (2022: € 663 million). As a percentage of sales, marketing and point-of-sale expenses slightly decreased by 0.3 percentage points to 11.5% (2022: 11.8%). Operating overhead expenses were up 7% to € 1.965 billion (2022: € 1.838 billion), reflecting higher logistics expenses. In addition, the company recorded one-off costs of around € 50 million related to the strategic review the company is currently conducting as well as donations and accruals for further donations in an amount of around € 110 million. As a percentage of sales, operating overhead expenses increased 3.9 percentage points to 36.8% (2022: 32.8%). The company’s operating profit amounted to € 176 million (2022: € 392 million) in the quarter. This amount includes the extraordinary expenses of in total around € 160 million reflecting the one-off costs related to the strategic review as well as the donations and accruals for further donations. The sale of the Yeezy product positively impacted adidas’ operating profit by an incremental amount of around € 150 million in Q2. The operating margin reached 3.3% in the quarter (2022: 7.0%).

Net income from continuing operations of € 96 million
After taxes, the company’s net income from continuing operations amounted to € 96 million (2022: € 360 million), while basic EPS from continuing operations decreased to € 0.48 (2022: € 1.88).

Outlook

adidas expects revenues to decline at a mid-single-digit rate
On July 24, adidas had adjusted its full year financial guidance to reflect the positive impact of the first sale of some of its Yeezy inventory and a slightly better-than-expected development of the adidas business in the first half of the year. At the same time, macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in North America and Europe as well as uncertainty around the recovery in Greater China continue to exist. In addition, the company’s revenue development will continue to be impacted by the initiatives to significantly reduce high inventory levels. As a result, adidas now expects currency-neutral revenues to decline at a mid-single-digit rate in 2023 (previously: decline at a high-single-digit rate).

Underlying operating profit anticipated to be around the break-even level
The company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is still anticipated to be around the break-even level. Including the positive impact from the first Yeezy drop of around € 150 million, the potential write-off of the remaining Yeezy inventory of now € 400 million (previously: € 500 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), the company now expects to report an operating loss of € 450 million in 2023 (previously: loss of € 700 million).

On August 2, the company launched a second drop of Yeezy inventory. Throughout the month of August, adidas is making a range of existing products available through both its own e-commerce channel as well as the digital platforms of selected wholesale partners. If successful, this second drop would further improve the company’s results. However, as the results of this drop are yet unknown, it is not accounted for in the company’s current top- and bottom-line outlook for 2023.

West Yorkshire is to have a first-of-its-kind apprenticeship training course for textile engineering technicians, reflecting a resurgence in the industry locally, and more generally in the UK.

Calderdale College has partnered with the Textile Centre of Excellence (TCoE) and the British Textile Machinery Association (BTMA) to develop the bespoke Level 3 apprenticeship course which will start in September 2023.

Engineering Technician apprentices at Calderdale College will receive training from the TCoE, helping them to develop the engineering maintenance skills required to close the skills gap in West Yorkshire’s textile industry.

While the region has been a flourishing hub for textile excellence since the 19th century and is being revitalised through digitalization and the localisation of supply chains, its success is currently being hindered by an ageing workforce and high staff turnover.

Through adapting the engineering training at Calderdale College to address the current requirements of the textile industry, the unique new course will ensure the passing on of vital know-how and good practice aligned with the new skills demanded by Industry 4.0 and automation.

Collaborative Apprenticeships
Calderdale College has developed the programme over a two-year period through close collaboration with the TCoE and the BTMA, as well as through consultation with British heritage weaver AW Hainsworth and a number of other local textile companies.

The course launch follows on closely from the success of the Collaborative Apprenticeships project launched in 2022 at Calderdale College. To date, this has seen the college engage with over 100 local employers on the benefits of increasing the quantity and improving the quality of the apprenticeships that they offer, as well as encouraging others to introduce apprenticeships for the first time.

“Over the years, we’ve seen how beneficial apprenticeships can be for several sectors, particularly in terms of helping businesses to retain staff and ensuring that they have a steady flow of skilled workers coming in,” said Claire Williams, head of employer engagement at Calderdale College. “Having identified that employers in the textile manufacturing industry were struggling to find apprenticeship training that was designed around their needs, we knew that alongside employers and our partners, we needed to satisfy this critical gap in the market. We hope that this programme will act as a leading example for the rest of the industry to follow.”

In Fall/Winter 2023, Y-3 (partnership between adidas and Yohji Yamamoto) returns to present the third chapter of its year long exploratory narrative – with the subversive label taking athletic iconography, silhouettes, and materials and recontextualising them through through the lens of Yohji Yamamoto’s renegade design vision.

Inspired by adidas’ inimitable sporting legacy, Chapter 3’s apparel collection sees Y-3 evolve the collegiate motifs of previous seasons, for an entirely new context. Drawing on vintage varsity style lettering, an array of graphics are applied to jackets, t-shirts, and hoodies, in kettle stitch embroidery, chenille patches, puff prints, and engineered knits. A curated offering of quilted pieces, with cutlines inspired by the adidas Originals Aloxe tracksuit, completes the apparel highlights with a selection of jackets, vests, skirts, and pants.  

The collection is then rounded out by a host of bold accessories including elevated totes, gym bags, backpacks, body bags, knit beanies, caps, and more.  

Having traversed Yohji Yamamoto’s homeland of Japan for the brand’s Spring/Summer 2023 campaigns, the seasonal story journeys to adidas’ mother country of Germany, to capture Berlin’s unique, energetic, and prolific creative community. Shot by local photographer, Lengua, and motion director Thyago Sainte, the stills, moving images, and short film spotlight an enigmatic cast of musical figures that call Berlin home in personally resonant locations.

Indorama Ventures, in partnership with Polymateria, has been honoured with the INDA Innovation Award for their collaboration in developing pioneering Biotransformation technology to create wipes, which totally biodegrade, leaving no harmful substance or microplastics behind.

The award was presented at the recent World of Wipes International Conference in Atlanta, USA, and recognizes the level of technical innovation and investment that led to developing wipes that both deliver against the sustainability challenges of today while meeting the demands of Indorama Ventures’ customers worldwide.

Through its 10-year partnership agreement with technology innovator Polymateria, Indorama Ventures is applying Polymateria’s unique biotransformation technology to fibers and spunmelt nonwovens. Biotransformation is the world's first biodegradation technology that is capable of delivering full biological consumption of Polyolefin products in the open terrestrial environment. Polyolefin-based materials produced by this technology are especially useful for applications where materials may be leaked into the environment as unmanaged waste.

“We are constantly innovating to live up to our responsibility to optimize the Earth’s resources, as we combine nature and science in our Biotransformation PP - designed to be recycled or returned to nature,” he said. “By bringing Biotransformation technology to Hygiene markets, we hope to offer a real-world solution to waste management. We particularly hope to address aspects of the creation of fugitive waste and remove this from the environment without causing additional, and potentially more dangerous, problems.”

Ada Hefetz, an Israel-based wedding dress designer, has introduced a new attention-grabbing collection with intricate, showstopping elements produced using Stratasys’ advanced direct-to-textile 3D printing technology. Showcased recently at Milan Design Week, the three unique dresses are based on Hefetz’s Flower of Life theme and were produced using Stratasys’ 3DFashion™ technology as part of her latest series celebrating matrimonial union, the circle of life, and design.

Known for designing haute couture bridal dresses combining vintage style and classic modern chic, Ada Hefetz is renowned for constantly pushing the boundaries of design. This is her first completed project using 3D printing.

The wedding dresses feature complex geometrical shapes, depicting the ‘Flower of Life’, a sacred geometry dating back to ancient Egypt. The intricate pattern is composed of overlapping circles that intersect to form flowers, which Ada Hefetz has combined with her design of a lily to symbolize the union between two individuals and the circle of life. The inspiring design uses Stratasys’ translucent VeroVivid™ resin material with Stratasys’ J850™ TechStyle™ 3D printer, which can be printed in over 500,000 unique colors with varying levels of flexibility, simulating different textures and finishes.

Ada Hefetz’s Flower of Life-themed 3D printed wedding dresses are currently on display at Milan’s D-House Urban Laboratory, which is owned and managed by Dyloan, the leading Italian manufacturer serving the high-end fashion sector.

OETI – a member of the internationally active TESTEX Group – has bought the German company ECS to expand its service portfolio in the field of personal protective equipment (PPE).

OETI has been offering testing services for textile work clothing since 1983 – for about 40 years. Since the introduction of CE labelling for personal protective equipment and the enactment of the PPE Directive by the European Union in 1993, OETI has not only been testing textile personal protective equipment, but now on also certifies it in conformity with EU standards. In 1995, OETI was certified in Brussels as a Notified Body (0534) for type-examinations and quality assurance monitoring of personal protective equipment end products. Testing and certification is carried out in accordance with the current PPE Regulation (EU) 2016/425.

Testing and Certification Body for Eye and Face Protection, based in Aalen, was founded 15 years ago and is a globally active institution for testing and certification of eye and face protection equipment. The company is one of the leading independent testing institutions for personal protection products in laser applications and for welding work.

ECS tests and evaluates occupational health and safety goggles with and without a filter action, passive and active switching protection filters and shields for welders, and laser protection filters, goggles, and shields. The company also tests the optical properties of sunglasses, sports glasses, ski goggles, swimming goggles and motorbike goggles.

With OETI’s takeover, the ECS location in Aalen is retained, and all employees will continue working at ECS. The new Managing Director of ECS GmbH as of 1 July 2023 is Dipl.-Ing. Rolf Diebolder.

‘We are present on the European market, on the American market and, via a representative office, on the Chinese market. With the aid of the new distribution channels through OETI and TESTEX, we want to steadily advance ECS’ expansion and be present on all five continents’, says Managing Director Rolf Diebolder, explaining his strategic plans for ECS. ‘I would like OETI and ECS to develop a joint strategy in order to be able to offer existing and new customers of both companies a complete package which, when combined, will give us a unique selling point in the marketplace’, says Diebolder.

Diebolder also sees further potential in the cooperation with regard to protective laser clothing. According to him, this is where the laser laboratory commissioned by ECS could be used to make textiles laser-safe. In the future, there will be more and more ‘hand-held’ devices, i.e. laser welding devices, for which gloves and protective jackets are needed.

2XL Corporation, Avgol Nonwovens, and Yowel to compete for Award
INDA, the Association of the Nonwoven Fabrics Industry, announced the three finalists for the World of Wipes Innovation Award®. The Award will be presented at the 17th annual World of Wipes® (WOW) International Conference, July 17-20, at the Atlanta Marriott Marquis in Atlanta, Georgia.    

The three products vying for this Award are a cleaning and disinfecting device from 2XL Corporation, a wipe utilizing biotransformation technology from Avgol Nonwovens, and a reusable towel dispensing system from Yowel.

The winner will be announced on July 20th at 11 am. The three companies competing for the Award are:

Windup by 2XL Corporation
Meet the Windup: a groundbreaking new device that can clean and disinfect your home using a self-advancing microfiber roll that you never have to touch. Just one roll will clean your kitchen over 50 times. An innovative one-touch revolving roll and a versatile spray system that allows use of your favorite floor cleaner or our specially formulated disinfecting solution. No more stopping to change expensive pads or change filthy water. Get wound up for Windup.

Nonwoven wipe using biotransformation technology by Avgol Nonwovens
This innovative spunlace wipe utilized advanced biotransformation technology developed jointly by Indorama Ventures and Polymateria. Meeting the BSI PAS 9017 specification, this wipe in the event it becomes fugitive, and exposed to heat, sunlight, air and moisture will transform into a harmless, bioavailable wax at its end-of-life, eliminating microplastic pollution. Compatible with mechanical recycling and combatting ‘fugitive’ waste, this wipe represents a significant leap towards eco-friendly, sustainable nonwoven hygiene products.

The Yowel™ System by Yowel
Ready to help the earth and save money…every day? Yowel is a patented system for dispensing reusable towels. Instead of a roll of paper towels, place a Yowel full of reusable towels into your paper towel holder – or choose the countertop model, and you’re immediately reducing your paper towel consumption.  The Yowel System has 40 reusable towels and a mesh bag for used towels. Save money and help Mother Nature.

INDA’s Technical Advisory Board selected the finalists based on the creativity, uniqueness, and technical sophistication employed in finding novel ways to expand the utilization of nonwovens. Categories considered for the award were wipes related raw materials, roll goods, converting, packaging, active ingredients, binders, additives, and end-use products.

Nice-Pak’s SecureFLUSH® Technology Flushable Wipes received the 2022 World of Wipes Innovation Award for their unique, 100% cellulose nonwoven that is strong enough to clean, yet break apart rapidly, when flushed. A specialty “lock and key” design of plant-based fibers and formula leverages patent-pending technology to break apart five times faster than the leading brand of two-ply toilet paper and ensure responsible care of plumbing and wastewater. SecureFLUSH® Technology Flushable wipes are available in Walmart, Amazon, and at Nicencleanwipes.com.