From the Sector

In the context of the EU Pact for Skills, EURATEX launches an EU co-funded project under ERASMUS+ Programme to support the up-skilling and reskilling in the textile, clothing, leather and footwear (TCLF) sectors.  The new project, AEQUALIS-4-TCLF, brings together 19 partners mainly from Eastern and Northern Europe¹ who will work together in the coming 4 years to give a boost to upskilling and reskilling of workers in the TCLF industry.

Following the blueprint project SMART4TCLF and complementary to the METASKILLS4TCLF project, AEQUALIS4TCLF prioritizes creating strong links with regional and local entities to boost skills initiatives and establishing an EU-wide Network of TCLF vocational education and training (VET) and higher education (HE) providers. Based on the results from the skills gap analysis, AEQUALIS4TCLF will develop new national skills strategies in seven countries to address specific regional needs, setting a clear path for workforce development with special attention to addressing discrimination and promote diversity in the TCLF industries.

¹ List of Netherlands, Czechia, Lithuania, Finland, Croatia, Slovenia, Serbia

Texhibition Istanbul Fabric and Textile Accessories Fair, organised by İTKİB Fuarcılık A.Ş. in cooperation with the Istanbul Textile Exporters Association (İTHİB), is ready for its fifth edition. From 6 to 8 March 2024, 558 exhibitors will present themselves to the 30,000 expected visitors from over 100 countries, including the European Union, Great Britain, the USA, North Africa and the Middle East. With this edition, Texhibition has more than doubled the space compared to the last event to 35,000 square metres.

The fifth edition of Texhibition Istanbul offers a comprehensive overview of all product groups in the textile prepress sector: from woven fabrics to knitwear, from denim to artificial leather and textile accessories

Due to popular demand, the fair has been expanded to five halls, including the new Yarn Hall (Hall 8) with exhibitors such as Sasa, Aksa, Karafiber, Kortex, Tepar, Ensar, Kaplanlar and Iskur and the BlueBlack Denim Hall (Hall 7), which showcases the latest denim trends and presents a wide range from blue shades to black denims with exhibitors such as İsko, Çalık Bossa, Kipas and İskur. BlueBlack Denim is designed by the  designer Idil Tarzi in cooperation with the creative directors Gönül Altunisik and Selvi Yigci.

Curated by Idil Tarzi and her creative team, the Texhibition Trend Area in Halls 4 and 5 presents the latest colour trends, materials and accessories.

Under the direction of designers Arzu Kaprol and Filiz Tunca, the Innovation Hub showcases technological innovations that add value to textile production: from fibre to yarn, from fabrics to clothing.

Digital art installations in the entrance area, which run through the entire trade fair, as well as piano performances in the foyer await visitors at the upcoming Texhibition.

Seminars and workshops with industry experts shed light on current topics in the industry, including innovations, production processes and design developments. These opportunities offer participants a platform to exchange knowledge and discuss the latest developments in the textile industry.

The announcement of a new effluent treatment plant (ETP) marks a milestone in Denim Expert's journey towards sustainability. This upcoming facility is a testament to the company's dedication to reducing its ecological footprint and safeguarding local ecosystems through advanced water management techniques.

The new Effluent Treatment Plant (ETP) being developed by Denim Expert strives for 100% wastewater recycling. As the ETP rises from concept to reality, Denim Expert embarks on a transition towards its next horizon: aligning with the Zero Discharge of Hazardous Chemicals (ZDHC) Wastewater Guidelines Version 2.0.

Denim Expert's proactive approach to sustainability has been recognized on a global scale. The company has been named 'New Champion' by the World Economic Forum and has partnered with organizations such as the Sustainable Apparel Coalition (SAC), the United Nations Framework Convention on Climate Change (UNFCCC), and the Ellen MacArthur Foundation's Jeans Redesign program. As one of the first factories to join the Partnership for Cleaner Textile (PaCT) and in the process of implementing the 3E program, Denim Expert is dedicated to achieving 100% water reuse and full reliance on solar energy, further solidifying its commitment to driving positive environmental change.

Re:NewCell AB announced that the Stockholm District Court has decided to approve the previously communicated bankruptcy application and has declared the company bankrupt.

The appointed bankruptcy trustee is lawyer Lars-Henrik Andersson at Cirio Advokatbyrå.

February,25 the Board of Directors had decided to file for bankruptcy of Re:NewCell AB at the Stockholm District Court. The reason for the decision to file for bankruptcy was that Re:NewCell has not been able to secure sufficient financing to complete the strategic review, announced on 20 November 2023, with satisfactory result.

As part of the strategic review, Re:NewCell has had well advanced negotiations with its two largest shareholders, H&M and Girindus, its existing lenders BNP Paribas, European Investment Bank, Finnvera (as partial guarantor), Nordea, AB Svensk Exportkredit and potential new investors as well as other stakeholders regarding long-term financing solutions. These discussions have not resulted in a solution which would provide Re:NewCell with the necessary liquidity and capital to ensure its operations going forward.

"I regret to inform that we have been forced to take this decision to file for bankruptcy. As we have a strong belief in the company’s long-term potential, we have together with our advisors spent very substantial time and efforts into trying to secure the necessary liquidity, capital and ownership structure for the company to secure its future. As part of the negotiations, we have had intense dialogues with both current main owners, new investors and our banks, as well as other stakeholders. However, these discussions have not been successful. This is a sad day for the environment, our employees, our shareholders, and our other stakeholders, and it is a testament to the lack of leadership and necessary pace of change in the fashion industry” says Chairman of the Board of Directors, Michael Berg.

INDA, the Association of the Nonwoven Fabrics Industry, has named experienced sales and business development professional Dan Noonan as its new Director of Memberships and Business Development. Noonan brings 20 years of experience leading sales teams across the U.S. at Localedge/Hearst Media Services.

Noonan will be responsible for enhancing the value of INDA membership and its industry supporting programs. He will work with staff, leadership, and members to identify and expand opportunities to enhance our programs, services and our relevance to the industry.

Archroma Textile Effects expands the digital textile design and production system (CAD/CAM) Pointcarre with its entire portfolio of 5,760 colors.

Pointcarre Textile Software enables fashion, home furnishing and technical textiles designers to create accurate digital samples, streamline the fabric weaving, knitting and printing processes, and produce realistic presentations of their collections.

Incorporating the Archroma color portfolio into this workflow will allow designers to bring their ideas to life with greater speed and accuracy. They will not only have access to a vast searchable library of Archroma colors, but they will also be better able to produce the exact color they need at the factory.

All of the Archroma color references can be formulated with dyes that meet leading international eco-standards and the brand customer’s desired sustainability profile.

To support customers to optimize the potential of the new color library, Pointcarre is offering new interactive e-learning modules on its Academy training platform, as well as assistance in several languages.

Eltex of Sweden, a pioneer in the adoption of electronic sensors by the weaving machinery industry, is marking its 60th anniversary this month.

The electronic detection of broken or missing weft yarns during production was the problem Eltex founders Åke Rydborn and Ragnar Henriksson set out to solve with the development of the world’s first electronic weft-stop-motion. Its potential was recognised on its introduction at the 1963 ITMA exhibition in Hannover, Germany, leading to the foundation of the company in a modest 12-square-metre workshop in Älmhult, Sweden, in February 1964.

By 1968 the company was operating from a modern 3,000-square-metre plant and beginning to establish a global presence, introducing the first all-in-one printed circuit board (PCB) for its sensor systems in 1971. As exports increased, further Eltex operations were established in the USA and Ireland and the company expanded its product range including energy control devices, temperature and humidity loggers, food handling safety systems, and military grade battery chargers. Further textile milestones in parallel to advances in weaving technology included optical arrival detectors for air-jet weaving machines at the beginning of the 1980s, and the QTV system for warp preparation, which introduced digital stop-motion control to the industry at the start of the 1990s. In 2009, the company branched out into carpet tufting, first with the CoTS clamp-on tube sensor for tufting machines, followed by the Compact sensor for tufting machines in 2013. In 2019 the Compact II further cemented the company’s position in this sector.

Newly developed Eltex EyETM and ACT-R
Most recently, Eltex has launched the Eltex EyETM system for the monitoring of yarn tension on warp beams. Not only does it eliminate problems when warping, but also in the subsequent weaving or tufting processes. Eltex EyETM monitors the yarn tension on all positions in real-time and a minimum and maximum allowable tension value can be set. If any yarn’s tension falls outside these values the operator can be warned or the machine stopped.

The Eltex ACT and ACT-R units meanwhile go beyond yarn tension monitoring to actually control yarn tension. This extends the application range greatly. The plug and play system automatically compensates for any differences in yarn tension that arise, for example from irregularities in yarn packages.

Eltex has been owned by Brian Hicks, Seamus O’Dwyer and Jonathan Bell since 2007, following a management buy-out and the subsequent formation of Eltex Global Holdings in Ireland. Today, its head office, Eltex of Sweden AB, is in Osby, Sweden where it provides research and development, administration and global sales for the group. Eltex Manufacturing in Ireland is now the group’s primary production facility and Eltex US, Inc. provides sales and service for North America.

• Revenues: 477.6 million euros (-6%)
• EBITDA before non-recurring items: 79.0 million euros (-15%)
• Net income: 32.6 million euros (-26%)
• Free cash flow before non-recurring items: 45.3 million euros
• Dividend: €0.36 per share

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2023. Audit procedures have been performed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 3.9 million euros (-3%) and 1.7 million euros (-8%) respectively in Q4, and by 11.2 million euros (-2%) and 4.8 million euros (-6%) respectively in the year, at actual exchange rates compared to like-for-like figures.

OUTLOOK
While the 2023 full-year results were affected by the adverse environment, they also attest to the substantial improvement in the fundamentals of the Group's business model, which will have a positive impact on 2024 results. Persistent macroeconomic and geopolitical uncertainties could nevertheless continue to weigh on investment decisions by the Group's customers.

While the most recent indicators seem to suggest that the situation is unlikely to deteriorate further, the timing and magnitude of a rebound in new system orders remain uncertain.

Outlook for 2024
To facilitate analysis, the accounts of Lectra excluding the Launchmetrics acquisition ("Lectra 2023 Scope") will be analysed separately from the Launchmetrics accounts in 2024.

The Group has based its 2024 objectives on the exchange rates in effect on December 29, 2023, in particular $1.10/€1. When converting 2023 results using the exchange rates retained for 2024, 2023 revenues are mechanically reduced by 4.7 million euros (to 472.9 million euros) and 2023 EBITDA before non-recurring items is reduced by 2.2 million euros (to 76.8 million euros). Thus, for the Lectra 2023 Scope, the comparisons between 2024 and 2023 printed below are based on constant exchange rates.

At this early stage of 2024, continuing low visibility regarding orders and revenues from new systems makes it impossible to predict the actual timing and scale of the future rebound in this area. On the other hand, visibility is high for recurring revenues, which accounted for 68% of total revenues in 2023 and will continue to grow in 2024.

In light of the above, Lectra has set as its objective for 2024, for the Lectra 2023 Scope, to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The low end of the revenues range is based on the absence of a rebound in new systems orders, which would remain stable in 2024 relative to 2023, with a 6% decline in revenues from perpetual software licenses, equipment and accompanying software and non-recurring services, as the order backlog was lower on December 31, 2023 than a year before.

The high end of the revenues range reflects a gradual rebound in new systems orders, which at year-end 2024 would be back to year-end 2022 level.
 
In addition, Launchmetrics revenues (for the consolidation period from January 23 to December 31) are projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15% (assuming an exchange rate of $1.10/€1).

In the fourth quarter of 2023 Italian textile machinery orders index, drawn up by the Economics Department of ACIMIT, the Association of Italian Textile Machinery Manufacturers, appears to be stationary compared to data recorded for the same period in 2022. In terms of absolute value, the index stood at 82.4 points (basis: 2015=100).

This is the result of an upswing in orders from foreign markets, counterbalanced by declining orders on the domestic front. While orders in Italy decreased at 18% rate, a 4% increase was observed abroad. The absolute value of the index on foreign markets amounted to 77.9 points, whereas it came in at 126.2 points domestically. Overall for the fourth quarter, the average order backlog yielded 3.7 months of assured production.

For the whole 2023 year, the index declined 25% overall compared to the 2022 average (absolute index of 82.4). On the home front however, the index dropped 24% (absolute index of 124.5), while slipping 25% abroad (absolute index of 78.4).
 
ACIMIT president Marco Salvadè commented: "The orders index for October – December 2023, as elaborated by our Economics Department, confirms an intake of orders that is still weak, with a negative trend in demand for machinery that is ongoing for the domestic market."

Nonetheless, the orders index abroad shows a slight increase. We estimate that the global geopolitical context is still a source of concern,” continued Salvadè, specifying that, “For the first nine months of 2023, Italian exports on major global markets (i.e. China, Turkey, India and the United States of America), confirm a widespread decline. However, some positive signs emerged in the fourth quarter of last year, as reflected by the latest orders index. For 2024 we expect a consolidation of this trend reversal."

Many end-users now expect recycled materials to be in textile products they purchase – and this is driving innovation throughout the industry. However, there are still many technical and economic issues facing yarn and fabric producers using recycled resources. Members of the Swiss Textile Machinery Association offer some effective solutions to these challenges.

Synthetic recycled materials such as PET can usually be treated similarly to new yarn, but there are additional complexities where natural fibres like wool and cotton are involved. Today, there’s a trend towards mechanically recycled wool and cotton fibres.

Spinning recycled cotton
The use of mechanically recycled fibres in spinning brings specific quality considerations: they have higher levels of short fibres and neps – and may often be colored, particularly if post-consumer material is used. It’s also true that recycled yarns have limitations in terms of fineness. The Uster Statistics 2023 edition features an extended range of fibre data, supporting sustainability goals, including benchmarks for blends of virgin and recycled cotton.
In general, short fibres such as those in recycled material can easily be handled by rotor spinning machines. For ring spinning, the shorter the fibres, the more difficult it is to guide them through the drafting zone to integrate them into the yarn body. Still, for wider yarn counts and higher yarn quality, the focus is now shifting to ring spinning. The presence of short fibres is a challenge, but Rieter offers solutions to address this issue.

Knitting recycled wool
For recycling, wool fibres undergo mechanical procedures such as shredding, cutting, and re-spinning, influencing the quality and characteristics of the resulting yarn. These operations remove the natural scales and variations in fibre length of the wool, causing a decrease in the overall strength and durability of the recycled yarn. This makes the yarn more prone to breakage, especially under the tension exerted during knitting.

Adapting to process recycled materials often requires adjustments to existing machinery. Knitting machines must be equipped with positive yarn suppliers to control fibre tension. Steiger engages in continuous testing of new yarns on the market, to check their suitability for processing on knitting machines. For satisfactory quality, the challenges intensify, with natural yarns requiring careful consideration and adaptation in the knitting processes.

From fibres to nonwovens
Nonwovens technology was born partly from the idea of recycling to reduce manufacturing costs and to process textile waste and previously unusable materials into fabric structures. Nonwovens production lines, where fibre webs are bonded mechanically, thermally or chemically, can easily process almost all mechanically and chemically recycled fibres.

Autefa Solutions offers nonwovens lines from a single source, enabling products such as liners, wipes, wadding and insulation to be produced in a true closed loop. Fibres are often used up to four times for one product.

Recycling: total strategy
Great services, technology and machines from members of Swiss Textile Machinery support the efforts of the circular economy to process recycled fibres. The machines incorporate the know-how of several decades, with the innovative power and quality standards in production and materials.
Stäubli’s global ESG (environmental, social & governance) strategy defines KPIs in the context of energy consumption, machine longevity and the recycling capacity in production units worldwide, as well in terms of machinery recyclability. The machine recyclability of automatic drawing in machines, weaving systems and jacquard machines ranges from 96 to 99%.