From the Sector

Archroma, a global leader in color and specialty chemicals towards sustainable solutions, has joined hands with Liberty Textile Mill Limited (Liberty), a leading producer in healthcare textiles to produce high quality personal protective equipment (PPE).

Liberty will be benefitting from Archroma’s specialty solutions for hygiene protection, and well-established technical expertise in the area of medical textiles. Amidst the COVID-19 pandemic, the PPEs manufactured by Liberty are aimed at easing the current shortage of PPEs for medical professionals in Pakistan.

Liberty carries over two decades of experience in medical textiles and exporting them all over the world. Its partnering with Archroma is a major step forward towards creating enhanced protection in the current crisis. With its advanced scientific knowledge and technical expertise, Archroma provides a complete set of specialty chemicals required to produce PPEs, in particular in the area of antimicrobial and barrier coatings. The project will assist in enhancing medical standards in hospitals, isolation centers and intensive care units, in Pakistan and, very soon, worldwide.

“By continuously challenging the status quo, we at Archroma are able to support our customers operating in or entering the area of medical textiles, with a holistic and expert approach to hygiene protection. With our collaboration with Liberty, we are so proud to be able to bring state-of-the art protection to health professionals and the general public,” comments Mujtaba Rahim, CEO of Archroma Pakistan.

“Liberty has a presence of more than five decades with high achieving accolades. Our processing units are fully equipped with latest equipment complying with international standards. We take this new partnership with Archroma as a start of building a strong relationship in the area of medical textiles. The COVID-19 pandemic has given a wake-up call to work extensively towards enhancing healthcare facilities. We are looking forward to new innovations in producing top-class PPEs,” adds Taimoor Mukaty, Director of Liberty Textile Mills Limited.

• Tata Communications announces its financial results for the quarter ended June 30th, 2020

Commenting on the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “We have started this new financial year with strong performance amidst an uncertain and unpredictable economic environment. Digital is increasingly defining and shaping the experiences in this new world. It will become even more strategically core as businesses look to adopt new ways of working and transform how they operate, and how they engage with their audiences and with each other. We continue to be a key partner for our customers as they look to now focus on business recovery, acceleration, and growth.
Our new proposition, Secure Connected Digital Experience, is aimed at enabling customers to adopt new digital working models by providing a holistic ecosystem of solutions that are suited for this digital-first environment and are built for the long term. We’re seeing good interest in the market for these solutions. We remain focused on our strategy to deliver profitable growth and to be a preferred digital partner to our customers.”

Commenting on the results, Pratibha K. Advani, Chief Financial Officer, Tata Communications, said, “We have registered another quarter of strong growth. Data portfolio, which has been the key driver for our business, recorded a double-digit growth of 10% YoY with robust margin expansion of 460 Bps.

Enterprise business has also shown a healthy increase in the quarter, on the back of strong growth in India as well as the international markets, with India growing by 6.7% and international by 8.3% YoY. We continue to drive cost efficiencies in our business and with every successive quarter, we are improving our financial fitness.

Highlights

• Strong growth in Data business; revenue grew by +10% YoY on the back of robust performance across all segments, despite an uncertain economic environment.
• Data EBITDA was at INR 975 crore; up +32.4% YoY on the back of margin expansion of 460 Bps YoY led by cost efficiency initiatives.
• Due to lockdown and remote working, we are witnessing increased bandwidth usage and higher collaboration traffic. Enterprises have upgraded their capacities and are consuming more data to support this work model. Consequently, our India enterprise business grew by 6.7% YoY and international enterprise business grew by 8.3% YoY on the back of strong demand. This has led to increase in both revenue and profitability.
• Consolidated revenue was at INR 4,403 crore; growth of +5.6% YoY on the back of strong growth in Data business.
• Consolidated EBITDA at INR 1,042 crore; increase of +26.2% YoY and margin expansion of 390 Bps on the back of strong profitable growth in data business and focus on cost efficiencies.
• Consolidated PAT at INR 258 crore as compared to a profit of INR 77 crore in Q1 FY20; growth of +236% YoY.
• CAPEX for this quarter was INR 372 crore as compared to INR 342 crore in Q4 FY20.

*Please read the attached document for more information

For the third time in a row, the Lenzing Group was awarded gold status in the EcoVadis CSR rating. The assessment is further evidence that the company is one of the top performers in the field of sustainability worldwide.

Lenzing is thus one of the leading two percent of all assessed companies in its industry.
The assessment covers the four most important CSR (Corporate Social Responsibility) practices:

• environment
• fair working conditions and human rights
• ethics and sustainable procurement

“This award makes us very proud and encourages us to continue on our path to becoming a provider of environmentally friendly specialty fibers. At Lenzing, we look beyond fibers and take responsibility for our children and grandchildren by
standing up resolutely against the shortcomings of our time. This attitude is part of our strategic principles and we will continue to work hard to make a sustainable contribution to the environment and society”, says Stefan Doboczky, CEO of the Lenzing Group.

Lenzing’s ambitious climate target represents an important component of the company’s strategy and the responsibility towards future generations. In the 2019 financial year, Lenzing became the world’s first producer of wood-based cellulosic fibers to strategically commit to a climate-neutral production. This vision is to be put into practice by 2050. By 2030, the company aims to achieve an interim goal of reducing emissions by 50 percent per ton of product compared to 2017.

In 2019, Lenzing was once again rated number one in the world in the “Hot Button Report” of the Canadian NGO Canopy, another highly regarded ranking. In this ranking, Canopy grades the world’s 32 largest producers of wood-based fibers with respect to their success in achieving sustainable wood and pulp sourcing.

• ISKO and Bluesign announce their partnership for the creation of a cleaner, safer, and transparent world of denim. ISKO just released its landmark
• Sustainability Report, setting the target of achieving bluesign® APPROVED accreditation by the end of 2020.

Denim is a timeless staple in wardrobes around the world. ISKO, the leading denim ingredient brand, and Bluesign, the architects of a sustainable and responsible textile supply chain, are joining forces in a partnership. Alliances like this are the source of effective improvements.

ISKO has a long-standing commitment to ensure the integrity of its ingredients and the traceability of the fibers and materials used in its denim apparel. By releasing the Sustainability Report, ISKO again demonstrates its commitment to creating and designing denim apparel that has a positive connection with the planet. In this report, a primary target of ISKO is to achieve bluesign® APPROVED accreditation for its denim textiles, attaining the strictest industry standard for consumers and environment alike.

With the goal of completing this process by the end of 2020, the company has already performed bluesign® COMPANY ASSESSMENT at an above-average level. This shows how ISKO anticipates changes rather than simply reacting to legal or stakeholder requirements, pursuing an approach that has a huge potential and includes several actions for further improvements. Through this partnership, ISKO and Bluesign continue the movement of the textile and fashion industry into a future that pays more attention to people and the environment, because only when both are considered can the industry truly make a positive long-lasting impact.

“ISKO, as the soul of jeans, has a vision for denim that is creative in design and innovative in the use of technologies. These distinct qualities in combination with a determined commitment to a sustainable supply chain makes ISKO a true leader in the textile industry. We look forward to the next impactful steps we will take together.” Jill Dumain, CEO, bluesign technologies. “As the leader of this industry, we feel it is our responsibility to be and act as a force for good. We have always prioritized transparency and accountability, highly valuing every improvement that can be achieved by sharing values and goals through partnerships. This one makes us particularly proud, as it raises the bar of our efforts and challenges us to maintain our improvement efforts.” Ebru Ozkucuk Guler, Senior Sustainability & CSR Executive.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement, urging the government to institute Buy American policy changes to help bolster U.S. manufacturers producing personal protective equipment (PPE) for frontline workers battling the COVID-19 pandemic.

“If the government is sincere about reconstituting a U.S. production chain for medical personal protective equipment (PPE) to resolve the drastic shortages we are experiencing during the current pandemic, it is going to have to make key policy changes to help incentivize domestic production. A strong Buy American mandate for these vital healthcare materials needs to be instituted for all federal agencies, coupled with other reasonable production incentives, to help ensure a strong U.S.  manufacturing base for these essential products.

Our government already has an existing example of such a mandate that serves as an excellent model. The U.S. Department of Defense operates under a fiber-to-finished product Buy American rule for military textiles. This rule ensures that the vital textile materials our U.S. warfighters depend upon, come from a secure domestic production chain that cannot be severed during a military emergency by offshore entities.

There is a bipartisan call for action as members of Congress on both sides of the aisle have begun to acknowledge the need for these types of reasonable and essential policy changes.

Anything short of fully instituting domestic purchase requirements through Executive Order and other legislative initiatives will ensure that PPE production through U.S. supply chains that have been created overnight don’t evaporate as soon as this crisis is over.  

In the midst of the crisis, our failure to confront this challenge will allow for a repeat of the sins of the past that allowed sourcing agents to offshore the entire production of medical PPE in search of lucrative profits. While chasing the lowest cost import may have seemed cost effective at the time, these past few months have demonstrated that we paid a deadly price through this approach by jeopardizing the very lives of frontline medical personnel that are fighting the pandemic.   

This is a national security issue. It’s also a vital healthcare issue and it is decision time for U.S. policymakers. If our country is to be prepared for future deadly pandemics such as the one it is now facing, reasonable policy changes need to be implemented to ensure that we strengthen our domestic supply chain to address America’s security, safety and healthcare requirements.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

• Diana, Giusy, Simona and Marina. The call to action of the fashion world was born from four women engaged in the field of sustainability. On the occasion of Fashion Revolution Week, we tell you their story and the results achieved

A task force of Italian textile companies active in our area supported the first call to action launched at the fashion world by four women who have always been involved in the field of sustainability. The appeal launched on March 19th by the green journalist Diana de Marsanich, Giusy Bettoni, founder and CEO of C.L.A.S.S. (Creativity Lifestyle and Sustainable Synergy)the eco multi-platform hub specialized in integrating a new generation of eco values into fashion, products and companies, Simona Roveda, Editorial Director and Director of Institutional Communication of LifeGate and Marina Spadafora, Italian Country Coordinator of Fashion Revolution and currently collaborating with Luxury Fashion Brands to implement responsible strategies in their companies have luaunched a call-to-action project which has brought together textile companies to manufacture PPE garments for the medical staff working in San Gerardo Hospital in Monza, near Milan.

The companies that answered the call-to-action are: Filo d’Oro, Mantero, ROICA™ by Asahi Kasei, C.L.A.S.S. (Creativity Lifestyle and Sustainable Synergy) e Zerobarracento, Iluna Group, Lg Electronics, Jimmy Lion, Personal Genomics, Isamar Holyday Village, Marcolin Eyewear, Maglificio Ripa.

During the last weeks the 4 women collected about 1,800 non-drip cotton and non-woven TNT gowns for sanitary use, about 400 protective masks for multipurpose washable, bacteriostatic, breathable and water-repellent prevention, 1,000 washable cotton surgical caps, 150 complete protective googles eye masks, two microwave ovens for hospital departments to offer support to medical and healthcare personnel by helping them in the few breaks during the grueling shifts of this period, a supply of samples of cotton socks, 300 cotton masks + polyester outer layer, water-repellent and antibacterial, and free weekly stays made available to doctors, nurses, civil protection personnel and families with related children involved in the Covid-19 pandemic.

Staggered in terms of timing and with varying magnitude, the global spread of coronavirus is impacting the development of the regional economies in the core markets of the Manmade Fibers segment of the Swiss Oerlikon Group.
The sales markets for manmade fiber systems and equipment have been primarily located in China, India and Turkey for many years now. Together, these markets – above all China – make up the lion’s share of the project landscape at Oerlikon Manmade Fibers. And this is paying positive dividends at the moment. Because the production facilities of the major manmade fiber manufacturers in
China have been systematically fired up again over the past few weeks, with capacity utilization increasing consistently.

Going against the flow
The Segment CEO, Georg Stausberg explains the reason: “Long before the coronavirus situation developed, the major manmade fiber manufacturers in China had decided to reverse-integrate their production chains to include petrochemicals in order to expand their portfolios with targeted investments, to reduce their dependence on a ,single product’, to optimize their costs and ultimately to acquire greater control over margins in a global volume business”.
Similar processes and decisions – albeit not on the same scale as in China – have also
been detected at the large manmade fiber manufacturers in India and Turkey. Even though businesses in India and Turkey are presently still temporarily severely impacted by the coronavirus situation, their long-term commitment cannot however be questioned, as the company-internally-agreed plans will be systematically implemented moving forward.

Long-term investments of global market players
All this has recently resulted in increased demand for spinning and texturing systems – just like those supplied by total solutions provider Oerlikon Manmade Fibers with its
Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven product brands.
“The investments in petrochemical systems are based on long-term strategic considerations and are resulting – even during the coronavirus pandemic – neither in short- and medium-term economic dips, nor in changed customer behavior. (...)”, states Segment-CEO Georg Stausberg.
As a result of Oerlikon Manmade Fibers delving into the digital age years ago, the segment has experienced the intensive and short-term benefit from all the measures, in part also in its processing of customer projects.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today in response to the administration’s plan to institute a 90-day deferral on MFN tariffs,  as reported by numerous press outlets.

The reported plan being pushed by the importing and retailing industries would defer certain tariffs, including those on finished apparel products. It is an ill-advised policy that will hurt the U.S. textile industry at the very time it is answering the call of the nation to produce medical supplies to battle the coronavirus pandemic. 

These unnecessary tariff concessions would benefit importers and retailers at the direct expense of manufacturers on the front lines of the COVID-19 response and send a demoralizing message.

Tariff deferrals would severely exacerbate ramifications for the U.S. economy, manufacturers and workers and open the floodgates for imports.

If the U.S. government makes tariff concessions during this crisis, it will be inviting a virtual tsunami of imports further devastating domestic manufacturing as it attempts to regain its footing.     

We urge the administration to abandon any moves to defer tariffs on finished products. It would only serve to allow importers to exploit the current crisis, while dealing a severe blow to U.S. manufacturing and its workers.  

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

• U.S. employment in the textile supply chain was 585,240 in 2019. 
• The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
• U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
• Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

Beverly Knits Inc. is proud to be involved in the effort led by Hanes and Parkdale to help support the fight against COVID-19. Working with a coalition of textile companies, we are ramping up production in the USA to provide face masks for health care workers on the frontlines. With the combined efforts of many small and medium-size companies, we are retooling our production lines to begin manufacturing immediately.

Beverly Knits is coordinating the production of up to 1.5 million masks produced domestically per week. Ron Sytz, CEO of Beverly Knits, said “It is an honor to be working with great American companies, united to supply critical resources to healthcare workers and first responders”.

Companies on the Beverly Knits team

• Clover Knits
• Contempora Knits
• Carolina Cotton Works
• Southfork Finishing
• National Safety Apparel
• A Lava & Sons
• Wells Hosiery
• Jomel Industries
• LA Corp
• Greenwood Mills

ISKO presented its 100% responsible platform, R-TWO™.

The denim ingredient brand hosted a special panel to discuss some of the advancements in technology that are making the fashion industry more responsible: from R-TWO™ to automated laser technology.

With the fashion industry being considered one of the world’s most polluting businesses-sectors, collaborating and knowledge sharing are key in finding solutions for a better future. Fully aware of this scenario, ISKO was the headline sponsor at The Drapers Sustainable Fashion Forum brings together responsible players to discuss what can be done to tackle the industry’s environmental and social issues through innovation and creativity.

Sharing knowledge, collaborating for change.
As evidence of its Responsible Innovation™ approach, ISKO presented the R-TWO™ program, its latest
responsible achievement. Stemming from the mill’s holistic vision, R-TWO™ represents a great example of how reducing, reusing, and recycling strategies can be implemented in a textile business to improve its  environmental performance.
The R-TWO™ reduces the amount of raw material sourced by using a blend of reused cotton and recycled polyester – both certified –, improving sourcing efficiency throughout the entire field-to-fabric production.
Reused cotton is certified with the Content Claim Standard – or CCS – from the Textile Exchange. As for recycled polyester, it can be either Recycled Claim Standard (RCS) or Global Recycled Standard (GRS) certified, depending on the content percentages. Together with this cutting-edge and fully responsible program, ISKO also uses automated laser
technology developed in partnership with Jeanologia.

“How technology can help make the fashion industry more sustainable”:
On March 11th, ISKO hosted a discussion about ways, to make the fashion industry more responsible
The panel was moderated by David Shah, consultant on design and marketing development, Publisher and CEO at Metropolitan Publishing BV and Associate Professor at ARTez (Arnhem, the Netherlands) and Associate Professor at Renmin University, (Beijing, China). The talk involved Keith O’Brien, ISKO Marketing & Business Development Manager, Victoria Soto, Jeanologia Custom Technology Consultant and Filippo Ricci, Fashion Open Studio Program & Partnership Manager.