From the Sector

The DyStar Group has released its 2017 – 2018 Sustainability Performance Report. Into its eighth edition, the report marks the progress of the global company that aspires to become the world’s most sustainable and responsible supplier of colorants, specialty chemicals, and services in the textile industry, but has also embarked on the business with food dyes and chemicals through its recent acquisition in USA.
The latest DyStar’s Sustainability Performance Report is the first of their reports prepared in accordance with the most trusted and widely used reporting framework – Global Reporting Initiative (GRI) Standards: Core Option.

The 2020 Target
2017 marks the seventh year of DyStar’s journey towards reducing the production footprint by 20% for every ton of production by the year 2020. This goal encompasses the resources used for production including energy, water, and raw materials as well as addresses their corresponding outputs – greenhouse gas (GHG) emissions, waste and wastewater. Results across most key performance indicators were positive, with four of the six 2020 targets being successfully met or surpassed.
In terms of the energy consumption and GHG emission, DyStar is farther from its original desired target primarily due to the impacts from three newly acquired production sites. However, intensive efforts are underway to ensure that the company’s less efficient acquisitions are provided the essential support to align with the rest of the company. DyStar is optimistic that all six targets are achievable by 2020.

Creating Responsible Products & Services
As part of DyStar’s long-term goal to imbed sustainability across the industry, they will also be focusing on expanding its sustainability services. This includes the opening of more Texanlab offices, an ISO 17025 certified, specialized testing laboratory across South Asia to provide end-to-end solutions throughout the whole supply chain.

Stepping Up on Cooperation with NGOs
Increasingly, DyStar is strengthening their partnerships with the Non-Governmental Organizations (NGOs). The 2017 report features an in-depth guest interview with the NGO China Water Risk, on how can suppliers like DyStar can be a role model in creating sustainable fashion.
To encourage and facilitate sustainable practices among its suppliers, DyStar also conducts sustainability-related supplier surveys. For instance, DyStar is cooperating with the Institute of Public & Environmental Affairs (IPE), one of the most established Chinese NGO, to expand the framework of their supplier questionnaire. In recognition of its efforts, DyStar received top ranking in the CITI transparency list for industrial chemicals from IPE, placing them well ahead of many other industry peers.

Embracing Diversity, Engaging Communities
Also, to help meet clients’ demand and demonstrate its responsibility and care in the food and beverages industry, DyStar is implementing a supplier diversity program to support businesses in the USA that are at least 51% owned by minority groups, women, veterans and people with disabilities.
Highlighting DyStar’s commitment to the communities they operate in, the company encourages volunteerism among employees, and for the year of 2017, DyStar employees devoted a total of 205 volunteer hours towards community projects, which also served as a meaningful collective experience for employees to form closer bonds.

Working Together Towards Long-Term Solutions
As an industry frontrunner, DyStar and its leaders are committed to driving sustainability across the
industry. However, significant challenges remain, and the stakeholders of this industry need to work together to derive long-term solutions. CEO of DyStar Group, Mr. Eric Hopmann emphasized, “It is imperative for the entire industry to improve collectively, not individually, and our ability to do so may determine the long-term profitability of the industry as a whole. It is my belief that effective partnerships coupled with stronger support and incentivization from leading companies within this industry could be key to creating a new – and much needed – equilibrium.”

To access DyStar’s sustainability reports, visit http://www.dystar.com/sustainability-reports/.

JD.com, Inc., China’s leading technology-driven e-commerce company, and Google, announced today that Google will invest $550 million in cash in JD.com as part of a strategic partnership.

Google and JD plan to collaborate on a range of strategic initiatives, including joint development of retail solutions in a range of regions around the world, including Southeast Asia, the U.S. and Europe. By applying JD’s supply chain and logistics expertise and Google’s technology strengths, the two companies aim to explore the creation of next generation retail infrastructure solutions, with the goal of offering helpful, personalized and frictionless shopping experiences. JD also plans to make a selection of high-quality products available for sale through Google Shopping in multiple regions.

“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” said JD.com’s Chief Strategy Officer Jianwen Liao. “This marks an important step in the process of modernizing global retail. As we celebrate our June 18 anniversary sale, this partnership opens a new chapter in our history.”

"We are excited to partner with JD.com and explore new solutions for retail ecosystems around the world to enable helpful, personalized and frictionless shopping experiences that give consumers the power to shop wherever and however they want,” said Google Chief Business Officer Philipp Schindler.

Under the agreements, Google will receive 27,106,948 newly issued JD.com Class A ordinary shares at an issue price of $20.29 per share, equivalent to $40.58 per ADS, based on the volume-weighted average trading price over the prior 10 trading days.

At Kingpins Amsterdam, RUDOLF GROUP launches a selection of chemical auxiliaries for fashion and function as well their new HUB 1922.
The RUDOLF GROUP, not completely new to garment and denim finishing, decides to take the first steps of what will be a long and exciting journey in the field. In order to shorten the distance with both manufacturers and apparel brands and retailers it deploys two synergic initiatives:

• A refined selection of chemicals auxiliaries targeting garment finishing and delivering, in addition to current aesthetics, sophisticated functionalities that take denim to the next level in terms of both performance and enhanced quality.
• The launch of a new project that, combining German engineering and Italian style, provides solutions at the crossroad of fashion and utilitarian functionality. The project, called HUB 1922, introduces elements of unorthodox diversity and fosters collaborative environments that can be truly disruptive.

The word HUB is evocative of the main part of something where there is most activity, whereas the number, 1922, is the year of foundation of the RUDOLF GROUP and therefore symbol of heritage, tradition and significant experience. Ultimately, HUB 1922 wants to be the unmatched one-stop shopping for fashion and function, innovation and creativity in garment processing. A hub that enables continuous, synergetic, and powerful collaboration with brands and retailers to deliver disruptive innovations in the global markets.

It introduces functional chemistry in an universe that is almost entirely driven by aesthetics and the extension to other materials and product categories (such as outdoor apparel and performance wear), of knowledge and techniques developed for denim over the past 50 years. Very aware of its status of rookie and yet very determined, the project HUB 1922 begins exploring through concepts and values rooted in deep scientific knowledge, true responsibility, technical innovation and fresh creativity.
At Kingpins Amsterdam, HUB 1922 will present 3 concepts rooted in RUDOLF’s sophisticated and conscious chemistry:

• ODYSSEY: a voyage through textures and innovation, softness, comfort and signature handfeels.
• SHELTER: performance inspired by natural models for urban protection and for much reduced domestic washing.
• MEMOFLEX: A modern-day miracle preventing denim from sagging and bagging. A truly denim Botox that shows improved quality on many stretch fabrics.

Since when it was founded, almost 100 years ago, RUDOLF GROUP’s secret of success is being big enough to matter, small enough to care. Captured in this definition are an obvious desire to play a meaningful role in the textile industry and an equally palpable vocation to customer service.

Alberto de Conti, Head of Rudolf Fashion Division: “Every generation has their time to make a mark on the world. Considering the environmental emergencies in garment production and the lack of real innovation on the retail shelves, for the current generation of companies active in garment finishing that time is now.”

RUDOLF GROUP acknowledges therefore that there is an additional opportunity to responsibly further redefine the future and turns their sizeable R&D power towards refining their approach to what is fashion quintessential staple: garment and denim finishing. Through a renewed, highly responsible involvement in garment finishing and with the introduction of HUB 1922, the RUDOLF GROUP wants to send out a message of true optimism. It is about showing the entire industry that there is a blank canvas ahead and tangible difference can be made.

• Clean Green Certified Companies Commemorate Earth Day 2018

U.S. Clean Green certified laundries are marking Earth Day 2018 (April 22) by commending the 250,000+ businesses across the nation that use such certified operations for linen, uniform and facility services.

Selecting a Clean Green certified company reflects concern for maximizing sustainability in a business supply chain. Private- and public-sector organizations who choose such a provider are learning that how their reusable textiles are supplied, laundered and maintained is a factor in their environmental impact.
Clean Green operations use a third party (TRSA) to verify their conservation practices and quantify their compliance with water and energy use thresholds.

Laundered, reusable linens, uniforms, towels, mats and other products provided by the linen, uniform and facility services industry to enhance businesses’ image and provide clean, safe environments for their employees and patrons. Most Americans benefit from the industry at least once per week, either at work or by patronizing restaurants, healthcare facilities, hotels and other retail and service establishments.

Nearly 50 of the industry’s companies are Clean Green certified, serving business customers from more than 150 locations combined nationwide. These launderers work with customers to connect the certification to their efforts to minimize their carbon footprint. Certified operators report to TRSA that customers and prospects ask them about green laundry initiatives. These include environmentally friendly wash chemistry, water reuse and recycling, recapturing heat from hot water headed down the drain and operating efficient delivery routes.

“They are far more likely to inquire about the sum of environmentally friendly practices as opposed to the parts,” observes TRSA President and CEO Joseph Ricci of the industry’s customers. Many document their justification of purchase decisions, though, such as government agencies that profile the winners of contract bids. “Clean Green companies bidding for their work mention the certification in their sales promotion and these profiles reflect it.”

Linen and uniform services conserve water and energy best by using high-capacity, high-efficiency equipment, he pointed out, controlling expenses and thereby aiding efforts to keep service pricing under control. “It is the perfect sustainable business model. Business interests and environmental concerns align. Improving efficiencies reduces costs and reduces the impact on the environment,” Ricci says.

Based on the U.S. Census of the industry’s sales and a TRSA survey of member financial data, the association estimates that nearly 3 million businesses use the industry’s services. Clean Green companies are challenged to capture more of these industry customers. Their collective Earth Day 2018 campaign gives them an opportunity to highlight the extent to which their individual efficiencies have contributed to a nationwide movement. Publicizing their own gains around Earth Day can better qualify and quantify their environmental virtues to encourage detailed comparison with competitors’ efficiencies, Ricci noted.

At the Munich Fabric Start in Munich, TINTEX proudly announced its complete switch from the use of conventional cotton and the concomitant launch of a new fabric range that is the highest expression of the new generation of cotton: Naturally Advanced Cotton by TINTEX.

This new range is able to offer an advanced smart choice of 4 different premium and responsible advanced cotton solutions such as BCI Cotton, ECOTEC® by Marchi & Fildi, GOTS certified organic cotton and Supima. These new fabrics maintain and upgrade the transparent, hi-tech and sustainable organics that are at the heart of the TINTEX DNA. They represent better, smarter ecomaterials with new levels of performance and hi-tech smarts, thanks to a first class expertise in specialist dyeing and finishing techniques, coatings and applications that use the latest research, equipment and processes to deliver it. 

This new launch is confirming once more the commitment of TINTEX to its ‘Naturally Advanced’ position meaning “advancing beautiful, organic and natural materials to the next level combined with unique, hybrid ‘nature-tech’ smarts, with added value and creativity, thanks to dedicated investments that serve and secure our customer’s demands both now and in the seasons to come” says CEO Mario Jorge Silva.

The “Naturally Advanced Cotton” on Collection by TINTEX:

BCI cotton: The Better Cotton Initiative has specific aims:

• Reduce the environmental impact of cotton production
• Improve livelihoods and economic development in cotton producing areas
• Improve commitment to and flow of Better Cotton throughout supply chain.

ECOTEC® by Marchi & Fildi: a range of full-colour yarns, a smarter cotton made from pre-consumer clippings that save up to 77,9% water during manufacture. This season TINTEX is also introducing a new, finer ECOTEC® yarn called Phoenix, also GRS certified, being made from 50% ECOTEC® cotton and 50% recycled polyester. Here wellbeing credentials are guaranteed with Tessile e Salute* certification. 

GOTS Organic Cotton: The Global Organic Textile Standard GOTS is the most important standard for sustainable production of garments and natural fiber textile products from organic farming such as organic cotton or organic wool. GOTS criteria measures environmental, technical quality, toxicity and social impacts. GOTS is backed by independent certification for the entire supply chain.

Supima Cotton: Luxury, quality and craftsmanship are the benchmarks of American-grown, extra-long staple cotton. TINTEX offers 100% Supima precious fabrics and blends with tencel.

These special 4 cotton actors are made even more “advanced” by unique smart finishing as Plummy and Naturally Clean, for clean surfaces, bright colours, outstanding touch always with a very careful eye at the responsible values.  

• Revenue up 9.4 percent to EUR 1,726.6 mn
• EBITDA improvement of 23.9 percent to EUR 397.1 mn
• Retail bond of EUR 120 mn redeemed – Lenzing with net liquidity as at end of September
• State-of-the-art application innovation center opened in Hong Kong

Lenzing – The Lenzing Group generated a substantial increase in revenue and earnings in the first nine months of the 2017 financial year compared to the prior-year period. The company is continuing the implementation of its Group strategy sCore TEN in order to further expand the offering of specialty fibers and be even closer to its customers and business partners.

Consolidated revenue climbed 9.4 percent year-on-year to EUR 1,726.6 mn. This increase is mainly attributable to higher prices for all three fiber generations. Consolidated earnings before tax, depreciation and amortization (EBITDA) rose 23.9 percent to EUR 397.1 mn, corresponding to an EBITDA margin of 23 percent, up from 20.3 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 34.6 percent to EUR 298.4 mn, resulting in a higher EBIT margin of 17.3 percent (Q1-3 2016: 14 percent). The profit for the period improved by 35.3 percent to EUR 219.3 mn, and earnings per share rose 36 percent to EUR 8.12 per share. In September Lenzing redeemed the retail bond of EUR 120 mn. At the end of the reporting period the Group had net liquidity of EUR 16.9 mn.

“In the first three quarters of 2017, we successfully captured value in a very positive market environment and we continue to implement the sCore TEN strategy with great discipline. The opening of our new application innovation center in Hong Kong is an important step to boost our regional innovation capabilities. We were particularly proud to launch TENCELTM Luxe as a sign of Lenzing’s ongoing commitment to innovation and sustainability”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “After three excellent quarters we are confident to deliver substantially better operating results in 2017 compared to 2016, but at the same time we do expect more headwinds in 2018.”

Focus on customer intimacy

In September 2017, the Lenzing Group opened a new application innovation center (AIC) in Hong Kong, thus setting a further milestone in strengthening its innovation offering to all partners along the value chain. New applications for Lenzing fibers will be developed and tested at the new facility, among them applications for recent innovations such as the TENCELTM Luxe branded lyocell filament, the RefibraTM branded lyocell fiber and the EcoVeroTM branded viscose fiber.

Furthermore, new sales and marketing offices were opened in Turkey and South Korea in the first half of 2017. The direct contact to customers and well-equipped showrooms featuring products made of LenzingTM fibers serve as the basis for providing even better customer support.

Investment program in progress

The Lenzing Group aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020. Following the capacity expansion initiatives in Heiligenkreuz (Austria) and Mobile, Alabama (USA) which are both underway, Lenzing announced its intention to construct the next plant to produce TENCEL® fibers in Thailand.

A new era of sustainable production

In October 2017, the Lenzing Group presented a new product, TENCELTM Luxe, at an exclusive event held in Paris. The TENCELTM Luxe branded filament yarn represents Lenzing’s entry in the filament market. This fiber will support the Lenzing Group’s path towards becoming a true specialty player in the market for botanic materials derived from the sustainable raw material wood.

The launch volumes of TENCELTM Luxe are being produced at the Lenzing site. The basic engineering for a commercial scale plant was commenced.

Outlook
Demand development on the global fiber market remains positive within the context of a generally friendly macroeconomic environment. Lenzing expects wood-based cellulose fibers to grow at an even higher rate than the overall fiber market. After three excellent quarters, the Lenzing Group will achieve an operating result in 2017 that is significantly better than 2016.

For 2018, Lenzing sees a number of somewhat opposing factors that limit visibility regarding fiber price developments. Overall market demand is expected to remain high. However, the Group expects a substantial increase on the supply side, especially for viscose but also for cotton. Price trends for selected key raw materials, especially caustic soda, are difficult to predict. Against this background the Lenzing Group expects a much more challenging market environment for standard viscose during the upcoming quarters.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. The Group initiated its transformation from a volume-oriented viscose player to a value-oriented specialty fiber player at the end of 2015, and will continue the disciplined implementation of its business strategy.

• Lectra contributes to Faurecia Seating Business Group Industry 4.0 readiness and “digital enterprise” transformation initiative

Paris, September 26, 2017 – Lectra, the world leader in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials, is pleased to announce the renewal of its partnership with Faurecia through the signing of a global agreement for its Seating Business Group.

The cutting process for the production of seat covers, headrests and interiors is an increasingly strategic part of Faurecia’s Seating activity. Faurecia Seating supplies vehicle complete seats, frames, mechanisms and trim covers to major carmakers worldwide, whose manufacturing processes are gradually evolving toward Industry 4.0.

Faurecia Seating aims to double the production of its existing manufacturing facilities by reinforcing operations with advanced manufacturing technologies. The company’s extended partnership with Lectra entails focusing on operational excellence initiatives across its automotive seating division.

Standardization of the Vector® fabric-cutting solution—endowed with preventive and predictive maintenance capabilities and the highest-performance cutting system available on the market to date—will be instrumental to the implementation of these initiatives throughout the division’s fabric cutting facilities. Faurecia currently has more than 60 Vector fabric cutting solutions in production worldwide.

“More than ever, we face major challenges in terms of flexibility, agility and productivity—producing more while reducing costs,” observes Hagen Wiesner, Executive Vice President, Faurecia Seating. “Our cutting processes have become strategic in reaching these goals. Faurecia’s ‘digital enterprise’ project aims to achieve operational excellence in virtually every aspect of our organization. Together with Lectra, we will make this a reality in the cutting room, with smart automation and predictive maintenance”.

“Given the profound transformations gripping manufacturing, helping our customers ready their operations for the Fourth Industrial Revolution has become without question our core mission,” remarks Daniel Harari, Lectra Chairman and CEO. “Faurecia is among the automotive suppliers at the forefront of this movement. Digital technologies and industry expertise are the business enablers that will allow manufacturers to connect inside and outside the value chain in the near future.”

“At Huntsman Textile Effects, we recognize our responsibility to not only create value for our stakeholders but to make a sustainable and vibrant world possible for future generations,” said Rohit Aggarwal, President of Huntsman Textile Effects. “Water is an essential resource and we are grateful for the opportunity to support and work closely with village leaders and local authorities with a sustainable solution to water issues faced by local villagers.”
Marking the inauguration of the storage facility at a ceremony in Luna village, Mr. B.R Naidu, Zonal Officer, Central Pollution Control Board said, “This initiative by Huntsman is a sustainable move as this will solve the perennial issue of water for Luna village for years to come. Huntsman has set an example for other companies to take similar initiatives in Baroda”.
The Luna village received water from Narmada water project but due to insufficient storage capacity, the water was drained away in nearby pond. In close consultation with major stakeholders like Sarpanch and Gujarat Pollution Control Board, Huntsman’s Baroda site management proposed the construction of a water storage facility as a long-term solution for the village.
The project was operated on a Public-Private-Partnership model and took close to two years to complete. Through a Memorandum of Understanding between Huntsman Textile Effects and Luna local administration, the project was scoped out with committees formed with assigned roles and responsibilities prior to work commencing. With construction complete and all final inspections successfully concluded, Luna village takes over the running and maintenance of the water tank. Huntsman invested and managed the construction of the tank, working hand-in-hand with the Gujarat Water Board who undertook the laying of pipelines, drilling of wells and other underground work required for a complete water solution.