From the Sector

The summer edition of Texworld Apparel Sourcing Paris welcomed nearly 1,200 exhibitors from 26 countries. This season event was characterised by a number of new features and the dynamics remained satisfactory. Next event: February 10, 2025, in a partially renovated Paris-Le-Bourget exhibition centre for a session rich in initiatives.

The latest edition of Texworld Apparel Sourcing Paris, offered in its full version with the Avantex and Leatherworld sectors, ended on July 3 with attendance levels down on the July 2023 session. Over and above a possible "Olympic Games effect" and its consequences on transport and accommodation costs in the capital, the current economic situation is prompting the show's organizers to explore all alternatives to adapt the offer to market demand. However, these results do not seem to have had any impact on the flow of business between visitors and exhibitors, who reported a fairly positive overall climate.

The dynamic on the booths remained steady and the exchanges satisfactory, as shown by several manufacturers particularly well established on the European market. Indian shirt manufacturer Sheraton Apparel, for example, made around thirty solid contacts over 3 days, and reported several serious approaches to African distributors. The same goes for SMIT, a Turkish company specialising in Made in Turkey sourcing, which was able to see its main European customers and open up new contacts with Canadian and Brazilian buyers.

An expanded offering
At the Near Sourcing Hub, the phygital sourcing space connected by QR Code to the B2B digital platform of Messe Frankfurt France partner FourSource, inquiries to exhibiting companies remained much the same as in 2023. The visitor profile, on the other hand, focused on buyers from networks of small multi-specialist boutiques looking for an original mid-to-top-range offering. It was in response to this market demand for differentiation that the show organizers decided to extend Apparel Sourcing's range to include new categories in the fashion accessories sector, such as jewelry and bags.

High-profile initiatives
Other innovations were also on show this summer. The yarn pavilion - a first conceived in collaboration with Yarn Expo, originally a Shanghai show run by Messe Frankfurt - showcased the expertise of Chinese, Indian, Pakistani and Taiwanese companies, while at the same time highlighting upstream products and services. At Avantex, where some twenty suppliers of solutions for more sustainable fashion were grouped together, the new Designer Hub enabled designers and buyers to discover some original initiatives, such as that of stylist Jean-Luc François' association, supported by Messe Frankfurt's Texpertise network, which trains people who are far from employment, or the 3D design studio Scotomalab.

Materra wins 2024 Avantex Fashion Pitch award
The Avantex Fashion Pitch jury has awarded the 2024 prize to Materra. This British start-up, founded in 2019, designs solutions to support the cotton cultivation adapted to climate change. At the other end of the chain, it offers brands a service designed on a Cotton-As-A-Service model that encourages them to source from the producers it supports. Materra will benefit from a €2,800 stand at Avantex Paris 2025 donated by Messe Frankfurt France, plus €2,000 from Texpertise Network, the textile sector network of the Messe Frankfurt Group, and 1 year's incubation at Foundry donated by IFA Paris, official partner of the competition.

A trendy area at Leatherworld
New for 2024, the Leatherworld sector inaugurated its Leather Trend area, developed in collaboration with publisher Edizioni AF and the Arsutoria School design centre. Designed around the expertise of Italian companies specialising in the manufacture of leather shoes and bags, this inspirational space presented the autumn-winter 25-26 trends through 4 creative axis built around the expression of simplicity, nature, dynamism (sportswear collections) and finally romanticism. Leather Trend was also an opportunity to discover the new leather tanning technology developed by Ecotan, which avoids the use of metals (Chrome) and chemicals in the leather preparation stages thanks to the use of vegetable tannins.

The Circular Valley Convention is a new trade fair format organised by Messe Düsseldorf in cooperation with the non-profit Circular Valley Foundation and with scientific support from the renowned Fraunhofer Institute for Environmental, Safety, and Energy Technology called UMSICHT.

The convention looks at the circular economy from a holistic perspective: across industries and materials – and all phases of the circular economy, from smart circular design to the reuse and further utilisation of products.

As a central global platform for the circular economy, it brings together decision-makers and experts from business, academia, politics, and society in one place. Under the motto "Uniting Industries for a Circular Tomorrow", it promotes their networking in order to present and jointly develop circular solutions and processes and drive forward the transformation towards a circular economy.

Messe Düsseldorf is contributing its many years of expertise to the Circular Valley Convention stemming from a wide range of trade fairs such as K, interpack and drupa, which are closely related to the circular economy. The non-profit Circular Valley Foundation, the cooperation partner of the convention, has a comprehensive understanding of the circular economy and a large network. The scientific support provided by the Fraunhofer Institute for Environmental, Safety, and Energy Technology UMSICHT and the associated expertise round off the extensive professional support.

The Circular Valley Convention covers all phases of the circular economy: from the use of renewable raw materials to product design, manufacturing, logistics, and operations all the way through to collection, sorting, and recycling, featuring solutions for different material classes and value chains. The convention combines applied research and practice and is a content hub for top decision-makers and experts. With the guiding theme "Enabling Circular Economy", the focus is on three central topics that enable the transformation towards a circular economy:

• Enabling Value Chains: the implementation of efficient, sustainable, and cross-industry circular solution strategies to maximise the use of resources and make business models fit for the future.
• Enabling Technologies: the transfer of circular competencies such as redesign, refurbish, remanufacture & recycle. The goal is to optimise products and processes using technologies that comply with the principles of the circular economy.
• Enabling Materials: the promotion of the efficient use and recycling of various materials, aiming for the extension of product lifespans and the integration of cross-material circular strategies for the sustainable use of resources.

the Circular Valley Convention offers a three-part event format consisting of a conference, an expo, and a networking event on the evening of 12 March 2024. Over 100 high-calibre speakers are scheduled to attend the conference. More than 130 exhibitors and partners are expected to attend the expo, the marketplace for future-oriented circular solutions, which offers insights into new trends, innovations, and best practice examples.

The Lenzing Group learned that Lenzing's main shareholder B&C Group and the Brazilian pulp producer Suzano S/A have signed a long-term partnership in connection with the majority stake in Lenzing. As part of this agreement, Suzano S/A will take over a 15 percent stake in Lenzing AG from B&C Group. Suzano is the world's largest pulp producer based in Sao Paolo and recently achieved annual sales of more than EUR 7 billion.

Lenzing's management welcomes the proposed transaction and looks forward working with another core shareholder.

The Fashion for Good Museum publishes its legacy document. The report was prompted by the museum’s closure on June 5th, 2024. It represents the museum’s mission, summarising invaluable insights gathered over six years and key results such as reaching 115.000 visitors and creating a dedicated community of more than 250.000 followers online. Committed to transparency and collaboration, Fashion for Good shares its reflections, tools, and transferable learnings, as well as the future of its collections and next steps, continuing to inspire positive change within the fashion ecosystem. All information can be accessed on the Fashion for Good website for continued use and benefit of educators, the cultural sector, and the wider public.

Looking back on its journey, the Fashion for Good Museum celebrates achievements such as hosting 115.000 visitors, including 8.000 students from 200 schools, curating 13 exhibitions, offering over 75 events, launching 4 educational programmes, reaching both current and future generations, and inspiring many to drive change in the fashion industry. With an earned media value of over 46 million Euros through press coverage since 2017, Fashion for Good's influence has been significant, evident in its 250.000 social media followers and 15.000 newsletter subscribers.

The report fulfils the promise Fashion for Good made in 2017 – to share their journey, learnings, and most impactful activities with the world. Within these pages, readers will discover reflections on their messaging, insights about creative partnerships with entities such as Lowlands Festival, Dutch Design Week, and Museumnacht to case studies of pioneering exhibitions. Their programming was created around themes and topics, such as the untold stories around cotton, circularity, and the future of biomaterials to educate and inspire visitors, ultimately empowering them to take action themselves.

Reflecting on the output of the museum during its short existence, as well as its footprint and wide reach, while acknowledging the challenges encountered during its establishment and development, Fashion for Good distilled six key lessons from Fashion for Good's sustainable museum practices:

• Recognition of Broader Shift: There is a wider movement towards sustainability in the museum sector, exemplified by Fashion for Good and the new ICOM definition.
• Storytelling for Societal Change: Cultural institutions are crucial in driving societal change in fashion consumption through storytelling.
• Innovation through Limitations: Embracing organisational limitations can stimulate innovation in museum collection management and education.
• Audience Engagement: Understanding and expanding the core audience is essential for effective engagement in sustainability initiatives.
• Measuring Impact: It's challenging to measure impact for organisations with social missions, requiring clear success criteria.
• Establishing a Sustainability Framework: Defining sustainability within context is fundamental for organisational sustainability efforts.

Messe Düsseldorf Group and PRINTING United Alliance, two important printing technology event organizers, announce a closer working relationship.

Starting in 2024, the partnership of the trade fairs drupa and PRINTING United Expo located in Europe and North America, respectively, will bolster the reach of each brand throughout the industry. Both organizations, with their customer-centric focus, will look to make all their events even more relevant and beneficial to both attendees and exhibitors in the ever-changing printing technology landscape.

PRINTING United Expo 2024 will be held in Las Vegas from September 10-12 at the Las Vegas Convention Center.

Archroma is bringing its new SUPER SYSTEMS+ concept and key denim innovations to Denim Première Vision Milan on June 5 and 6 and Denimsandjeans Vietnam on June 26 and 27.

From classic blue jeans to fashion-forward designs with fresh cuts, colors and finishes, denim remains one of the most popular fabrics worldwide. At the same time, the industry is beginning to question traditional production methods that use considerable water and energy and also have limitations in terms of the selection of chemicals and dyes that are clean and safe.

Archroma will demonstrate its solutions at Denim Première Vision Milan and Denimsandjeans Vietnam, including SUPER SYSTEMS+ for Denim. SUPER SYSTEMS+ are end-to-end systems developed by Archroma to allow brands and mills to make an impact by saving resources, delivering more durable apparel or adopting cleaner chemistries, or by choosing enhanced outcomes in all three areas at once. The suite encompasses wet processing solutions from sizing to finishing; durable colors and functional effects that add value; and cleaner chemistries that go beyond compliance to anticipate future restrictions.

Trade show visitors will also be able to explore Archroma’s new DENIM HALO, a laser-friendly and easy washable denim, as well as a range of other product innovations, such as DIRESUL® EVOLUTION BLACK, DENISOL® PURE INDIGO 30 and EarthColors®.

DIRESUL® EVOLUTION BLACK is Archroma’s cleanest sulfur black dyestuff. Manufactured using fewer resources, it has an overall impact reduction to 57% during dye synthesis compared to standard Sulfur Black 1 liquid.* Importantly, it also offers mills the opportunity to deliver unique shade and wash-down effects that stand out in the market.

DENISOL® PURE INDIGO 30 LIQ is an aniline-free** pre-reduced indigo that creates authentic denim look with the same performance and efficiency as conventional indigo dye, but in a way that can reduce the risk of pollution. Furthermore, it is produced in an aniline-free** process to help enable cleaner denim production.

EarthColors® is a patented Archroma technology that creates high-performance biowaste-based dyes from non-edible food and agricultural waste, leaving the edible part available for consumption. EarthColors® dyes are fully traceable and help reduce the industry’s overall impact on the water footprint. Since they upcycle waste from other industries, they also help contribute to a circular economy.

* Ecotarrae lifecycle analysis
** Below limits of detection according to industry standard test methods

• Revenue up 5.7 percent year-on-year to EUR 658.4 million
• EBITDA more than doubles year-on-year to EUR 71.4 million
• Free cash flow of EUR 87.3 million (compared with minus EUR 132.3 million in the first quarter of 2023) and thereby positive for the third consecutive quarter
• Performance program shows positive effect on revenue, EDITDA, and free cash flow
• Lenzing confirms EBITDA guidance for 2024

The Lenzing Group, a leading supplier of regenerated cellulose for the textile and nonwovens industries, recorded a further improvement in fiber sales volumes in the first quarter of 2024. An expected recovery in markets relevant for Lenzing has to date failed to materialize. Fiber prices remained at a low level. Although the costs of raw materials and energy continued to decrease, they remained higher than in the pre-crisis 2019 year.

Outlook
Even though the IMF has upgraded its growth forecast for 2024 from 3.1 percent to 3.2 percent, a number of risks remain for the global economy: potential geopolitical shocks, persistently higher inflation and key interest rates, as well as market risks emanating from the Chinese real estate market are currently considered to be the most relevant.

General inflation and falling incomes in real terms are continuing to exert a negative impact on consumer sentiment. A recovery in the consumer clothing market, which is important for Lenzing, will also depend on a further normalization of stock levels.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, a stable price trend is expected for the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first quarter exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. By appointing a separate Managing Board member, the projects identified to date are to be implemented even more rapidly, and new potentials are to be leveraged. Lenzing expects that these measures will increasingly contribute to further earnings improvement over the coming quarters compared to the first quarter of 2024.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

• GOTS Version 7.0 released
• GOTS certified entities grow by 8% and expand to 89 countries
• GOTS releases Due Diligence Handbook for certified entities
• Farm-Gin Registry implemented in India, creating a direct link and better evaluation of incoming data
• GOTS collaborates with European Space Agency and Marple for AI organic cotton project
• #Behindtheseams campaign reaches 21 million+ unique individuals

The Global Organic Textile Standard (GOTS), managed by non-profit Global Standard, recognises 2023 as a year of significant milestones. From expansion of GOTS-certified facilities to the release of a new standard version, GOTS remained a beacon for businesses navigating changing legislation, social and environmental demands.

Coming out of one of the strongest years for GOTS, 2023 culminated with 25 GOTS-approved certification bodies reporting a noteworthy 14,676 certified facilities (an 8% growth from 2022) in 89 countries.

Ushering in GOTS Version 7.0
As of 1 March, facilities that become GOTS-certified will operate under the new GOTS Version 7.0, released in March 2023 with a one-year transition period. GOTS Version 7.0 and its accompanying Implementation Manual provides a comprehensive solution for companies who want to produce organic textiles and be supported to ensure compliance with environmental and human rights due diligence along the entire value chain, from field to finished product.

GOTS Version 7.0 also introduced a six-step due diligence process and handbook that equips GOTS-certified operations to proactively identify, assess and mitigate adverse impacts throughout their value chains.

Looking to the future
GOTS initiated in 2023 two major projects in India, the globe’s largest producer of organic cotton. The Farm-Gin Registry was introduced for the 2022-2023 harvest season, which acts as a link between farm and gin and is a tool to strengthen integrity by collecting organic raw seed cotton data producing farm or farm group.

GOTS, the European Space Agency (ESA) and software company Marple launched a new project that aims to show the potential for remote satellite monitoring of organic cotton cultivation systems. The project trained artificial intelligence (AI) to use ESA satellite data to detect cotton fields across India and automatically classify them according to their cultivation standard. By integrating standardised yield metrics, this innovative approach will enable GOTS to generate realistic estimates of organic cotton yields in specific areas. In addition, the project is expected to empower GOTS to recognise cotton fields that have not yet obtained organic certification but possess the potential for a transition to organic cultivation. The first results of the project will be announced in June.

Educating the consumer
GOTS, in its ongoing commitment to stakeholder education, orchestrated in November an immersive 360-degree awareness and educational campaign. Successfully engaging both consumers and industry professionals, the initiative shined a spotlight on GOTS-certified companies and their products, which empowered consumers to make more conscientious choices while shopping. With an impressive turnout of over 250 certified entities, the campaign made a significant global impact, reaching more than 21 million unique individuals worldwide.

Highlights Q1 2024 (compared with Q1 2023)

• Organic sales up 2%, driven by volume growth in both Paints and Coatings; revenue down 1%
• Operating income improved to €261 million (2023: €182 million)
• Adjusted EBITDA €363 million (2023: €305 million), adjusted EBITDA margin 13.8% (2023: 11.5%)
• Net cash from operating activities negative €170 million (2023: negative €50 million)

2024 Outlook
Based on current market conditions and constant currencies, AkzoNobel targets to deliver between €1.5 and €1.65 billion adjusted EBITDA in 2024, while reducing its leverage to around 2.3 times net debt/EBITDA by the end of the year.

• CARBIOS Group’s solid financial structure: cash position of €192 million on December 31, 2023
• Construction progress of world’s first PET biorecycling plant in France: in line with delivery targets for customers in 2026
• Licensing: international sales teams deployed in more than ten countries, with several partnerships feasible for 2024

CARBIOS reported its operating and financial results for the financial year 2023. The financial statements as of December 31, 2023, were approved by the Company’s Board of Directors at their meeting on April 10, 2024.

2023 Financial highlights
The consolidated financial statements of the Company as of December 31, 2023, are presented in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the European Union.

For 2022 and 2023, these IFRS consolidated financial statements include the financial statements of CARBIOS, the parent company, and the financial statements of its fully integrated subsidiaries Carbiolice and CARBIOS 54. The group formed by CARBIOS, Carbiolice and CARBIOS 54 is hereinafter referred to as the “Group”.

These IFRS financial statements for the Group have been prepared to provide high quality information in line with that of similar companies and based on international standards.

Outlook
Given the progress made by the Group during 2023 and the success of the financing operation closed in July 2023 as well as the received grants, CARBIOS confirms its operating targets and the provisional calendar of the industrial and commercial deployment of its PET biorecycling technology.
2024  • Construction of the Longlaville plant further to permits obtained in October 2023
2024  • Recruitment of plant operations team and training at demonstration facility
2026  • First significant deliveries to clients

Alongside this project, CARBIOS aims to sign its first licensing contracts for its PET biorecycling technology in 2024.