From the Sector

Packaging not only protects the product, it is also a powerful marketing and advertising tool that influences customers’ purchasing decisions. In the upcoming episode of Sappi’s Blue Couch series, viewers will find out what is meant by “packvertising” and how brand manufacturers can best showcase their products at the point of sale.

• “Packvertising and the power of brand at the point of sale”
• Lars Scheidweiler, Head of Packaging Solutions at Sappi, and Olaf Hartmann, Managing Director of the Multisense Institute for Sensory Marketing
• Tuesday, 26 April at 10:00 (CET)

The way people make purchase decisions in the face of overwhelming choice is very complex. Subconsciously, the brain is constantly at work making judgements about sensory signals such as touch, smell and sound. To attract customer attention, manufacturers should not only pay attention to functionality when selecting packaging material, but also never lose sight of the tactile experience.

So how do brand manufacturers go about selecting the right packaging material? How can packaging trigger emotions with consumers? And what role does environmental awareness play here? Lars Scheidweiler, Head of Packaging Solutions at Sappi, and Olaf Hartmann, Managing Director of the Multisense Institute for Sensory Marketing, will discuss this in the upcoming episode of the Blue Couch Series. Among other things, Hartmann will report on an interesting experiment that illustrates the impact various surface structures have on consumer behaviour.
The “Packvertising and the power of brand at the point of sale” episode will be broadcast on 26 April.

The Sustainable Apparel Forum takes place on 10 May 2022 in Dhaka, Bangladesh, bringing together government ministers and advisors, the European Union, UN bodies, brands, global fashion campaigners, brands, manufacturers and industry leaders.

This year’s SAF, the third such event, aims to establish Bangladesh as one of the world’s most responsible apparel sourcing destinations. That’s why senior government representatives will be speaking and in attendance, listening to the needs of industry and what needs to be done to take Bangladesh garment production to the next level.

Senior representatives from globally renowned recycling and renewable energy companies will also be in attendance as well as exhibit their sustainability and green technologies, products and solutions under the same roof.

The SAF will showcase opportunities for much-needed green financing in the industry.
Issues under the spotlight will include climate action, environmental social & governance (ESG) and green finance, purchasing practices, circular economy, and regulatory reforms.

Speakers of the SAF include Dr Tawfiq-e-elahi Chowdhury, Bir Bikrom, adviser to the Prime Minister of Bangladesh on power, energy and mineral resources; Salman F Rahman, MP, adviser to the Prime Minister of Bangladesh on private industry & investment; Tipu Munshi, MP, commerce minister of Bangladesh; Begum Monnujan Sufian, MP, state minister for labor and employment of Bangladesh; Saber Hossain Chowdhury, MP, chairman of parliamentary standing committee on ministry of environment, forest and climate change of Bangladesh;  Anna Athanasopoulou, head of unit for social economy & creative industries European Commission;  Barbara Bijelic, financial sector and regulatory engagement lead centre for responsible business conduct, OECD;  Lindita Xhaferi-Salihu, sectors engagement lead, UNFCCC; Gagan Bansal, global material innovation & strategy manager, H&M; Javier Santonja Olcina,  regional head, Bangladesh & Pakistan, Inditex; Faruque Hassan, president, Bangladesh Garment Manufacturers & Exporters Association (BGMEA); Dr Mark Anner, founding director, Center for Global Workers’ Rights and also professor, Penn State University, USA; Ayesha Barenblat, founder and CEO, Remake;  Najet Draper, vice president research, Better Buying; and  Tuomo Poutiainen,  country director, Bangladesh, ILO.

Under the United Nations Economic Commission for Europe (UNECE) initiative to enhance transparency and traceability in the garment and footwear industry, Haelixa realizes a pilot project with Costach Cooperative and Peruvian textile company Creditex to give sustainable rural cotton producers in Peru more visibility in the value chain.

In 2019, UNECE and United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) have set up an initiative to drive transparency and traceability for sustainable value chains in the garment and footwear industry. The initiative is jointly implemented with the International Trade Centre (ITC) with financial support by the European Union. Haelixa is proud to be part of the group of experts that develops policy recommendations, traceability standards, and conducts projects to set traceability benchmarks. With the support of the +Cotton Project, implemented by the Food and Agriculture Organization of the United Nations (FAO) and the Brazilian Cooperation Agency (ABC) a pilot is being realized in this context to mark and trace the finest Pima cotton for Creditex directly at the gin in Piura, Peru. Haelixa’s DNA marker connects the actual lint cotton to the entry on a blockchain system provided by UNECE. The Haelixa technology ensures that the information about the product’s origin and the journey of the product along the value chain is always safely embedded into the product itself. The marked cotton will be used to make exclusive pajamas sets for Cat´s Pajamas. DNA traceability will enable the verification of the premium origin of Peruvian Pima cotton in the final garment produced using sustainable practices by family farmers associated with the Costach cooperative.

Costach is the main cooperative of cotton farmers in Peru. The cooperative consists of 5,200 family farmers in the Piura region, producing mostly extra-long fiber of Pima Cotton. Since 2017, the +Cotton project has been supporting the farmers with training on sustainable practices and has been providing technical assistance for improved markets access.

Creditex is vertically integrated from cotton ginning to fine thread, up to the production of high quality apparel for international premium brands. The company takes social responsibility and environmental stewardship very seriously and therefore makes a strong partner for this project, empowering the cotton family farmers that hold the majority of cotton production in Peru.

• Renowned global denim event goes live again after two years
• Bangladesh Denim Expo brings together the global denim supply chain
• The show has a sustainability focus, and a central theme of ‘Beyond Business’
• Bangladesh is the 2nd largest denim exporter to the EU and the third largest to the United States

After a two-year break, Bangladesh Denim Expo will once again open its doors in the international Convention City, Bashundhara (ICCB) in Dhaka on May 10th & 11th 2022. The event is now firmly established as one of the world’s leading denim trade shows, and its live return is a huge boost to the global denim manufacturing sector.

“Beyond Business” is the theme of the 12th edition of the show. Bangladesh Denim Expo addresses the new opportunities for successful & sustainable business, in a world that now demands that industry leaders to go “Beyond Business.”

79 Exhibitors are set to attend the event, consisting of both local and international participants.

In this edition exhibitors will display fabrics, garments, threads, machinery, finishing equipment and accessories, positioning the show as a true representation of Bangladesh’s denim industry - the second largest denim exporter to the EU and third largest to the United States.

Through a series of product displays, seminar sessions & panel discussions, the Expo will encourage robust debate and interaction among exhibitors and visitors.

8 seminar sessions conducted by exhibitors at the two days event, and two panel discussions, reflecting the overriding sustainability theme of this edition of the Expo.

Industry experts will gather to discuss how the denim industry can improve, not only from a business perspective, but also considering social and environmental impacts and goals.

The California Association of Sanitation Agencies (CASA) and INDA, Association of the Nonwoven Fabrics Industry joined in welcoming the recent introduction of the WIPPES Act in the U.S. Senate by Senators Jeff Merkley (D-OR) and Susan Collins (R-ME).

This bipartisan legislation is intended to address the growing problem of sewer system clogs caused by improper disposal of consumer wipes like baby wipes, household cleaning wipes, cosmetic wipes and others that are not intended to be disposed of in toilets. Improper disposal of these wipes can have significant negative impacts on wastewater infrastructure, including causing sewer spills. The bill would help address this problem by establishing federal requirements for these disposable wipes to carry prominent “Do Not Flush” labeling on packaging. Additionally, the bill would provide funding for an Environmental Protection Agency-administered grant program focused on educating consumers about how to recognize “Do Not Flush” labeling, identify relevant products, and understand the impacts that flushing these products can have on wastewater treatment infrastructure.

• Revenue Increases to HK$8,316 Million with Net Profit After Tax Surging Significantly
• Recording a Turnaround to HK$381 Million
• Re-Establishes ESPRIT’s Market Leadership

ESPRIT HOLDINGS LIMITED has announced its audited financial annual results for the year ended 31 December 2021, highlighted by a significant increase in both revenue and profit attributable to shareholders of the Company to HK$8,316 million and HK$381 million respectively, in which the profit attributable to shareholders of the Company also recorded a turnaround versus the loss attributable to shareholders of the Company of HK$414 million for the six months ended 31 December 2020. Gross profit margin was 48.6%, 7.0% higher than the Corresponding Period. Please refer to the Company’s results announcement for the Current Year for further details.

Such financial improvement was attributable to various reasons, including (i) the new infrastructure and strategies instituted by the current management team; (ii) improvement in sales with higher gross profit margin; (iii) positive results of efficient cost control measures; (iv) improved inventory management; and (v) growth in E-commerce.

Although revenue in the Current Year was affected by lockdowns in the Company’s major European markets during the first quarter of 2021, and due to increased restrictions on entry requirements into stores during the fourth quarter of 2021, the Group generated revenue via three main channels: E-commerce, wholesale, and owned retail stores. As the ESPRIT brand website and third-party E-commerce partners continued to trade during lockdown, a large portion of the Group’s sales were generated online. This business model allowed it to mitigate some of the negative impacts of the Pandemic in the retail segment. Another driver of growth came from selling fewer discounted products from the Company’s retail business compared to 2020.

The Group has not forgotten the ESPRIT mission and long-standing commitment to sustainability. The Company has continued to work tirelessly towards developing cutting-edge materials that set new standards in terms of environmental sustainability. The Company has formulated and further advanced its ESG strategies to establish ESPRIT as an industry pioneer. Such strategies involve the greater use of sustainable fibers, developing new and innovative product options that support a circular economy, and ensuring environmental awareness is a key message that underpins all of the Group’s projects. To achieve these objectives, the Management has identified four key pillars of growth (Sourcing and Procurement; Marketing and Product; IT, Internet, and E-commerce; and The ESPRIT Brand Story) that are paramount in maintaining the loyalty of existing ESPRIT patrons and attracting new customers.

Looking ahead, the global economy is anticipated to be negatively affected by the lingering effects of the coronavirus pandemic and the conflict in Ukraine. The already unstable logistics industry and disrupted supply chain will likely be further impacted, which in turn will result in higher logistic service costs. Despite the unfavorable global economic outlook, the Group believes that under the leadership of its current management and with the support of dedicated staff members, the Company is on track to ongoing profit growth.

Five players in the textile service industry announce the establishment of Cibutex (Circular Business Textiles). This new cooperative is dedicated to the recycling and recovery of fibres from discarded textiles. Cibutex wants to contribute to a circular textile chain through cooperation in the whole sector.

The textile service has been implementing key Circular Economy solutions for some time: rental, care, repair and reuse of textiles for professional use. "As an industry, we are in a position to delve even deeper into the world of the circular economy. Every linen rental company has many of the same products, which go through the same process every time: the textiles are washed, sorted and collected again after the period of use. After many washes, the textiles are rejected. With this rejected textile, we see a unique opportunity to finally put the idea of a closed textile chain into practice. The used textiles that have reached the end of their useful life can be recycled on an industrial scale and the fibre raw materials can be recovered to make new textiles. We want to exploit this potential to the full by founding Cibutex, a cooperative for all textile service providers in Europe," says Cibutex director Jan Lamme, explaining the background of the unique project.

Cross-competitive goal
The founders of Cibutex are four well-known, competing textile service companies and one supply partner: Blycolin Textile Services (Zaltbommel, NL), Dibella (Aalten), Edelweiss Groep (The Hague), Lamme Textile Management (Amsterdam, NL) and Nedlin (Elsloo, NL). The companies have deliberately joined forces in order to implement sustainability in textiles and clothing by means of closed material cycles throughout the sector.

"Important resources are hidden in our B2B used textiles. We want to recover these in cooperation with relevant recycling companies and thus promote textile recycling as demanded by the EU Commission. We have come together to achieve sufficient critical mass to determine the final recycling of our discarded laundry, with the goal of moving from textiles to textiles," says co-founder Luuk de Win (Nedlin).

Sustainable eco-balance
"By recycling the raw materials of our used textiles, we contribute to reducing the social, environmental and climate impacts of the textile industry related to cultivation and production, and this leads to a long-term improvement of the ecological footprint of our industry," adds co-founder Marc van Boekholt (Blycolin).

Increasing value
To make the final transformation step of the circular economic model "textile service" a success, any European textile service company can become a member of Cibutex. The cooperative takes care of the collection, transport to the recycling partners and remuneration for the old textiles, which are now limited to bed linen, table linen and bath linen. In the future, however, the group wants to develop solutions for other textiles as well. For example, the recycling of workwear is also on the agenda. The founders of Cibutex agree that this too is a treasure trove of resources that must be addressed.

The vision of the OEKO-TEX® Association, which was founded in March 1992 through a partnership between the Hohenstein Research Institute and the Austrian Textile Research Institute (OETI), is still reflected today in the organization's core values: trust, safety, and sustainability. For three decades, OEKO-TEX® has pursued the goal of building trust for companies and consumers and enabling them to make responsible decisions to protect people and the planet. "Our services bring transparency to the international textile and leather industry supply chains," says OEKO-TEX® Secretary General Georg Dieners. "They enable all stakeholders to make mindful decisions that help preserve our planet for future generations."

OEKO-TEX® market leadership
In 1992, 20 years before the United Nations announced the Sustainable Development Goals (SDGs), OEKO-TEX® launched STANDARD 100 by OEKO-TEX®, now one of the best-known labels for product safety.
"It emerged from the Schadstoffgeprüft nach ÖTN 100(tested for harmful substances according to ÖTN 100), developed by OETI in 1989 to address increasing public interest in textile ecology and health," the Austrian Textile Research Institute reminds us. The limit values and test methods on which STANDARD 100 by OEKO-TEX® is based were internationally standardized and are adapted to the latest scientific findings and legislation at least once a year - a principle that is applied to all OEKO-TEX® standards. Prof. Dr. Stefan Mecheels, the owner of the textile testing service provider Hohenstein, adds: "From the very beginning, we have considered the needs of all players in the textile value chain and continue to create solutions for current and future market requirements."

At least seven SDGs are firmly integrated into the OEKO-TEX® product portfolio. For example, Good Health & Well-Being (SDG 3) and Clean Water & Sanitation (SDG 6) are reflected in the STeP by OEKO-TEX® factory certification, and Responsible Consumption & Production (SDG 12) and Climate Action (SDG 13) are implemented through the comprehensive MADE IN GREEN by OEKO-TEX® product label.

Today, the international association consists of 17 independent research and testing institutes focused on textile and leather, with contact offices in over 60 countries. They are responsible for the joint development of the test methods and limit values in the OEKO-TEX® Standards and carry out laboratory tests and factory audits according to globally uniform specifications. These comprehensive product and process audits to ensure appropriate risk management, consumer and environmental protection, and legal compliance. With their wide-ranging research and development, the accredited OEKO-TEX® test institutes provide important insight for innovations within the textile and leather industry. They work in close cooperation with manufacturers and make a significant contribution to the development of high-quality textile and leather products at all stages of the value chain.

Mirror of social and political development
Being close to the market, and ideally, one step ahead is essential to supporting companies who are adapting to constantly changing conditions and meeting consumer expectations. Therefore, the development of OEKO-TEX® is not only a reflection of scientific knowledge but also of social and political trends. The focus is always on standardizing sustainable action and measures and making it easier for the industry to quickly and comprehensively implement sustainability goals.

Exchange with third parties is particularly valuable for this purpose. OEKO-TEX® participates in various international multi-stakeholder initiatives such as the Organization for Economic Co-operation and Development (OECD), the Partnership for Sustainable Textiles, the ZHDC (Zero Discharge of Hazardous Chemicals), and Greenpeace.
In addition to cooperation with external multi-stakeholder initiatives, the OEKO-TEX® International Advisory Board (IAB) meets annually. The core function of the IAB is to help review consistent and market-oriented Standards development proposals by the OEKO-TEX® Working Groups. In addition, OEKO-TEX® is conducting a public stakeholder consultation to gain further insights from all interest groups, which it will integrate into further development of the Standards.
Using three decades of experience for the future
The founding goal of enabling responsible choices that preserve our planet for future generations has become increasingly urgent over the past 30 years. So, OEKO-TEX® is even more resolute than ever in developing comprehensive solutions. We stand by industry and consumers as a trusted partner for the challenges ahead. In addition to the IMPACT CALCULATOR launched in January 2022, which helps STeP by OEKO-TEX® certified production facilities reduce their carbon emissions and water consumption, this summer, the association will launch a service to help companies transition to the upcoming Due Diligence Laws.

• Revenue and earnings performance significantly improved despite considerable cost increases
• Successful production start at world’s largest lyocell plant in Thailand
• Imminent start-up of world’s largest pulp mill of its kind in Brazil
• Lenzing recognized as “sustainability champion” several times worldwide – one of only 14 companies awarded “AAA” rating by CDP
• New, innovative reporting methods – Lenzing presents its online annual report for the first time

Thanks to its strategic focus on wood-based specialty fibers and the predominantly positive market environment, the Lenzing Group recorded a significantly improved revenue and earnings performance in 2021 compared to the previous year. Increasing optimism in the textile and apparel industry as a consequence of the progress made with vaccinations and the continuing recovery in the retail sector ensured a strong rise in demand and prices on the global fiber market, particularly at the beginning of the reporting year.

All four Business Groups contributed to the significant improvement of the Group’s EBIT, which more than doubled by CHF 29.7 million to CHF 57.5 million, corresponding to an EBIT margin of 3.4%. This was achieved despite a slight decline in consolidated revenue to CHF 1.7 billion. Net profit amounted to CHF 30.1 million. In line with Autoneum’s longstanding dividend policy, the Board of Directors proposes a dividend of CHF 1.50 per share for the 2021 financial year.

We saw a number of global challenges again in 2021. The worldwide shortage of semiconductors dampened market development in the automobile industry. Although production volumes were almost the same in 2021, the year was more challenging from an operational perspective than 2020 was; supply chain bottlenecks led to short-term and unplanned production downtime at automotive manufacturers throughout the year. This resulted in frequent interruptions in production at Autoneum as well because of closely connected manufacturing processes. Rising costs for raw materials, energy, and transport presented additional challenges. Despite the challenging environment and weak global production volumes, Autoneum managed to return to profitability in 2021, generating a positive net result. Thanks to further operational improvements and optimization measures in all organizational areas, earnings were improved in all four Business Groups.

• Revenue development influenced by semiconductor shortage
• Operating profit and positive group net result thanks to improvements in all segments
• Net profit and positive free cash flow enable an increase in equity ratio and a further reduction of net debt
• Board of Directors proposes a dividend of CHF 1.50
• Personnel change on the Board of Directors
• Business Groups
• Innovation Leadership for a safe journey towards a climate-friendly future
• 10 years of Autoneum

Outlook
According to market forecasts1), global automotive production will increase by around 9% year-onyear in 2022. The semiconductor shortage is likely to continue for some time into 2023; however, we anticipate that the situation will increasingly stabilize over the course of the financial year 2022 with higher volatility in the first half of the year. Autoneum’s revenue development is expected to be in line with the market. Based on market development, Autoneum is targeting an EBIT margin of 4–5% and free cash flow in the high double-digit million range. In addition to addressing the current semiconductor shortage situation, Autoneum will continue to pursue its consistent implementation of strategic priorities and initiatives. The potential impacts of the current Ukraine crisis on our business cannot be estimated at this point in time.

Further information on the 2021 results as well as the 2021 Annual Report can be found at www.autoneum.com/2022/03/02/2021-annual-results