From the Sector

Electronics For Imaging, Inc. reported that at drupa 2024, running through 7 June at Messe Düsseldorf, it is highlighting its expertise in single-pass printing solutions for packaging, display graphics, and textile markets.

Visitors to EFI’s stand will see some of the companies latest single-pass innovations live, including the Packsize® EFI™ X5® Nozomi, a full-colour, on-demand, right-sized box system that prints, cuts, creases, glues, and erects customised boxes at the rate of up to one box every 6 seconds, and the EFI Nozomi 14000 SD single pass printer for sign and display. The company is also showcasing a vast array of applications produced on the new Nozomi 14000 AQ true water-based, single pass printer for corrugated packaging and displays and the Nozomi 12000 MP single-pass technology for direct-to-metal package printing, as well as the next generation EFI Reggiani BOLT XS single-pass textile printer.

In addition to showcasing single-pass inkjet printing at the show, EFI is also introducing two new software solutions that add to the value of single-pass technology, including:

• EFInsight, cloud-based intelligence that optimises the operational efficiency and TCO of EFI packaging, display graphics, or textile digital inkjet printing systems with cloud-based data collection, analytics, reporting, proactive maintenance, and process control tools. It delivers the insights needed to understand the economics of production and the tools to maximise inkjet printer investments. It is currently available for EFI Nozomi single-pass printers for packaging.
• EFI’s Life Cycle Assessment tool for Nozomi printers, which documents Nozomi’s environmental footprint, developed in partnership with Clean Agency. This tool, which EFI customers and their customers can use, analyses their CO2 emissions as part of their overall packaging Extended Producer Responsibility (EPR), and has proven that printing corrugated materials on the EFI Nozomi digital press reduces Global Warming Potential (GWP) by over 50% when compared to analogue printing technologies.

The Lenzing Group once again received the Austrian sustainability award for top listed companies, the Vienna Stock Exchange VÖNIX Sustainability Award. Lenzing takes the first place in the ‘Industrials’ category. The award honours those companies that stand out on the capital market with their sustainability performance. According to the VBV (Austrian Sustainability Index), which is the sustainability benchmark of the Austrian stock market, the Lenzing Group achieved the best score in its category.

Other environmental organisations and rating agencies have also already testified to Lenzing's efforts in the area of sustainability and the transformation to a circular economy: For the third year in a row, Lenzing received a place on the annual ‘A list’ in all categories of the global non-profit environmental organisation CDP. This makes Lenzing one of only ten companies worldwide to receive a triple ‘A’ - out of over 21,000 companies assessed. Lenzing was also once again awarded platinum status in the EcoVadis CSR rating. This puts Lenzing in the top one per cent of companies rated by EcoVadis. MSCI awarded Lenzing an ‘AA’ rating for the third time in a row, placing the company among the top eight per cent of rated companies in its peer group.

The Zebun Nessa Mosque, recently completed in Ashulia, Dhaka, is a shining example of the progressive initiatives being undertaken by the Bangladeshi garment industry. Fashion Forum Ltd., a company of IDS Group, spearheaded this project, demonstrating a strong commitment to enhancing the welfare and environment for its workers.

Bangladesh, renowned as the second-largest exporter of ready-made garments globally, is setting new benchmarks in workplace safety, worker welfare, and environmental sustainability. Mr. Idris Shakur, managing director of IDS Group, epitomizes the industry’s progressive outlook. He has dedicated the mosque to the workers of Fashion Forum Limited, naming it in honour of his late mother. The gesture is designed to foster compassion and unity within the industrial community.

The mosque, designed by Studio Morphogenesis and completed in 2023, reflects a forward-thinking architectural philosophy. Sustainability was a core consideration, with the design incorporating recycled red bricks from demolished houses for the exterior walls. Pink concrete, weatherproofed with lime plaster mixed with red brick powder, blends tradition with modernity, creating a spiritual and communal haven for the workers.

A key feature of the mosque is its majestic arched opening facing the qibla, offering worshippers a serene view of the adjacent waterbody and enhancing their connection with nature. The structure's double-layered walls provide thermal comfort and facilitate natural light and ventilation, transforming the mosque into a "breathing pavilion." Enclosed gardens, reminiscent of light courts, provide a peaceful retreat from the bustling industrial environment.

Inside, an intricate perforated metal stairway leads to a crescent-shaped upper floor, dedicated exclusively to the female workers. This space serves as a serene meeting area and prayer room, empowering women and reinforcing their importance within the workforce.

The Zebun Nessa Mosque also showcases advanced construction technology, designed to withstand extreme weather conditions, further underscoring the innovative and resilient spirit of Bangladeshi garment manufacturers.

This mosque stands as a testament to the progressive and compassionate ethos driving Bangladesh’s garment industry. It highlights how manufacturers are not only focusing on economic growth but also prioritising the well-being and empowerment of workers, setting new standards for the industry worldwide.

Manufacturer of activewear and swimwear, Active Apparel Group (AAG), has committed to a structured approach in reducing its environmental impact across its global operations through an Environmental Management System (EMS). The EMS, built using the ISO14001 Standard Framework, incorporates key environmental policy commitments and has set targets and strategies to reduce the carbon footprint of its operations across China, Australia and USA.

Through a third-party audit of its greenhouse gas emissions (GHGs), AAG has identified the following areas of focus to reduce impacts:

• Reduction in Scope 1 energy use
• Reduction in air freight
• Reduction in water usage across the business
• Ongoing collection and management of production waste
• Increased use of sustainable materials
• Continued collection of GHG data for ongoing improvement

AAG’s EMS is designed to be embedded within the operations of the business, with functional ownership of targets established and education of the team prioritized, to deliver results on reducing environmental impact. Quarterly reporting of its progress is communicated to stakeholders and reviewed by the company’s Board of Directors.

The EMS is part of AAG’s ongoing Responsible Business Strategy - a company-wide commitment to driving continuous improvement across the areas of Governance, Social and Environmental impact. Other initiatives include Living Wage Audit by Bureau Veritas (AAG pays 100% Living Wage); Materiality Assessment; Supply Chain Traceability Project; Circularity and Waste Management along with annual third-party audits - SMETA, Gold WRAP, Supplier Qualification Program and its Modern Slavery Statement.

• 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.

Cascale, a non-profit alliance for driving impact in consumer goods (formerly the Sustainable Apparel Coalition), announces Colin Browne as its new Chief Executive Officer, effective May 1, 2024.

Browne previously served as Interim CEO and Chief Operating Officer of Under Armour, a Cascale member. During his tenure at Under Armour, Browne oversaw sustainability efforts and, in addition, led significant transformations across supply chain, go-to-market and technology. In 2023, the company shared achievements related to its environmental footprint, product circularity, and renewable energy goals – some accomplished with Cascale’s Higg Index suite of tools.

Prior to joining Under Armour, Browne was managing director of Asia Sourcing for VF Corporation, a Cascale member that includes The North Face, Timberland, Vans, and Smartwool brands. In addition to his experience leading brands, Browne also spent four years running manufacturing plants in Thailand and began his career at Bally Shoe factories in the UK. He has lived and worked in the UK, South Korea, mainland China, the Philippines, Thailand, Hong Kong SAR, and the USA; his international experience and localized approach underscore his commitment to Diversity, Equity, and Inclusion (DEI) both in and outside of the workplace. Browne also served as the Chairman of the American Apparel and Footwear Association and was on the board of the World Federation of Sporting Goods Industries. As a member of the Worldly Board, the leader in environmental and social impact data for the apparel and footwear industry and the exclusive platform for Cascale’s Higg Index tools, Browne will ensure a unified approach to advancing sustainability initiatives across both organizations.

During his first 100 days with Cascale, Browne will connect with the organization’s 300+ members across the value chain, emphasizing manufacturer engagement and relationship building. He will also engage Cascale’s broader ecosystem of stakeholders including NGOs, governments, and academia. Browne is personally committed to Cascale’s vision to lead the consumer goods industry to combat climate change, foster decent work for all, and build a nature-positive future.

Integrated textile mill Nuevo Mundo is partnering with Archroma to offer collections utilizing Archroma’s EarthColors® agricultural waste based dyes and produced with zero liquid discharge and substantial resource savings.

A strategic partner of apparel brands, Nuevo Mundo is a market leader in South America with a 75-year history. It helps brands expand into new markets with value-added products that capture growing consumer demand for quality and sustainability. The company is a pioneer in the adoption of water-saving processes and chemicals that have minimal impact on the environment.

Nuevo Mundo is now reinforcing its commitment to sustainability with the creation of new collections that utilize Archroma’s biowaste-based EarthColors® dyes. Based on patented Archroma technology, these high-performance dyes are from non-edible agricultural or herbal industry waste in a process that helps to reduce the negative impact on water footprint, natural resources and climate change compared to conventional synthetic dye production where toxic and non-renewable oil derivative products are used as raw material.*

The organic raw materials used for the dyes created for Nuevo Mundo include residues from cotton plants, beets and saw palmetto. In addition to using these biowaste-based dyes, the EarthColors® collections will be produced in Nuevo Mundo’s zero liquid discharge facilities, providing savings in time, water and energy, as well as emissions.

Nuevo Mundo and Archroma intend their alliance to be a long-term collaboration, with plans to release new collections based on EarthColors® in the coming year and beyond.

*Based on internal LCA comparative screening

Stahl, a provider of speciality coatings and treatments for flexible substrates, has launched the protective coating Stahl Integra® Dry 725, meeting the increasing demand for water-repellant technical fabrics.  
 
Part of the Stahl Integra® toolbox, Stahl Integra® Dry 725 is a fluorine-free coating for water-repellent technical textiles that harnesses Stahl’s proven polymer technology. Stahl has introduced Stahl Integra® Dry 725 in response to the growing market demand for fluorine-free, water-repellent technical textiles, which is projected to reach USD 605.1 million by 2029.  

Stahl Integra® Dry 725 offers a balanced performance between repellency, durability and adhesion. Stahl's durable water-repellent (DWR) technology, StayDry, repels water from fabric by modifying the surface tension of fibres. The solution can be combined with other top or back coatings and is specifically designed for technical textile applications such as camping equipment or luggage. As a fluorine-free, waterborne coating that is cured at low temperatures, Stahl Integra® Dry 725 can help reduce environmental impact without compromising on quality.

Stahl Integra® is a modular 'toolbox' of tailor-made, customer-orientated protective coating solutions that simultaneously ensure product quality and superior fabric integrity. This means that specific mechanical functionalities – from flame-retardant and breathable coatings to stay-clean technologies – can be introduced at different stages of the production process to meet specific end-market requirements as needed.

Stratasys Ltd. published its second Mindful Manufacturing™ ESG and Sustainability Report in accordance with the Global Reporting Initiative (GRI) standards, fulfilling its commitment to transparency. The report includes an extensive overview of activities and advancements in Stratasys’ environmental, social and governance (ESG) programs.

Some highlights of the Mindful Manufacturing ESG and Sustainability report, by category, include:

Environmental

• Stratasys reduced water intensity by 32.5 percent across global operations, leading to an overall reduction in water usage by the company.
• Solar panels installed at Israeli facilities generated 441,339 kWh of renewable energy, which contributed to 207 metric tons of reduced CO2 emissions, or the equivalent of planting 3,423 trees
• Double digit (11.3 percent) increases in the number of spools, cartridges and canisters recycled through a new recycling program.

Social

• More than 38,000 hours of employee training were provided, equaling 18 hours of training per employee.
• Approaching world-class status with employee engagement, with a 78 percent participation rate in the last all-employee survey, with an all-time high engagement score of 73.
• 81 percent of managers participated in management training.
• 4 diversity KPIs were set in 2022, focusing on hiring practices. Targets were:
• 100 percent of candidate slates for manager and above will have a diverse slate
• 35 percent of management hires will be women
• 25 percent of tech hires will be women
• 40 percent of intern/student hires to reflect a range of ethnicity and gender diversity.

Governance

• 100 percent of new suppliers in 2021 and 2022 signed the Supplier Code of Conduct, which includes environmental, social and ethical standards.
• More than 97% of all employees completed compliance training.
• No product-related health and safety incidents of non-compliance occurred in 2021 or 2022.

As part of a broader initiative to reduce environmental impacts and keep ahead of evolving global chemical regulations, Active Apparel Group (AAG), manufacturer of performance apparel for the leisure/lifestyle and active market, is embracing water-based OEKO-TEX 100 Class 1 Standard Printing Inks in their manufacturing process.

Common and inexpensive inks used in the global manufacture of apparel contain a wide range of toxic chemicals, including phthalates, petroleum-based co-solvents, PVC, and other volatile organic compounds. AAG’s initiative to use OEKO-TEX approved, water-based inks creates benefits for factory workers, people living local to these factories, consumers, and everyone downstream.

AAG offers a range of printing methods to address a variety of customer needs, including:  digital printing, screen printing, and heat transfers for on-garment logos and care instructions. OEKO-TEX certified water-based inks are used for all of its digital printing and for the majority of its screen printing. These non-toxic water-based inks offer a socially and environmentally better alternative to the more commonly used Plastisol inks.

Making a sizable environmental impact, the printing service of AAG’s business is significant. Digital printing averages 25,000 meters per month with screen printing averaging 60,000 garments per month.

The use of water-based inks requires a skilled production team and training of employees is ongoing. AAG currently employs 30 people at its printing operations in Ningbo, China.