From the Sector

adidas and RIMOWA have come together to announce their inaugural capsule collection that seeks to offer explorers of the world the perfect tools to navigate and escape the cities of today.

Exclusively made in Germany, the cross-category collection features two contemporary designs: RIMOWA’s first-ever aluminium backpack and the ADIDAS NMD_S1 sneaker.

The RIMOWA x ADIDAS NMD_BACKPACK boasts new technical solutions that makes it suitable for outdoor needs and overnight trips. Made from RIMOWA’s signature grooved aluminium, it features a number of thoughtful functionalities, from padded utility shoulder straps fitted with a carabin and thumb loops to rope weight-bearing straps and grab handle. The piece also features foam ridges inspired by ADIDAS Boost foam overlaying the backpack’s grooved surface to ensure comfort, as well as an elasticated webbing running through its middle to secure the backpack onto the suitcase’s telescopic tubes. To allow for flat packing, a detachable gusset opens the backpack to reveal two deep zipped pockets, as well as a 16-inch laptop pocket inscribed with both brands’ logos.

The RIMOWA x ADIDAS NMD_S1 iteration features the futuristic sneaker’s signature Primeknit uppers in a titanium-inspired colourway, with the flexible ADIDAS Boost midsole in a light, almost translucent base colour.

Monforts will take part in a VDMA textile technology trade delegation to Turkmenistan from November 21-26, on behalf of the German Federal Ministry of Economics.

Around 80% of Turkmenistan’s production of textiles and garments is currently exported, with a value of $350 million in 2020. This is now expected to rise to $450 million by 2023.

In addition to expanding in cotton yarns and fabrics, the country is also looking to enter other textile markets, including nonwovens, carpets and absorbent hygiene products, and negotiations are currently underway between the Turkmenistan Ministry of Textile Industry and the Korean Institute of Industrial Technologies to also commence manufacturing synthetic fibres from polymers.

In 2021, a new textile complex was opened by state-owned textile manufacturer Cotam in the city of Kaka, which is aiming to produce 3,650 tons of yarn, 12 million square metres of different types of fabrics and 1.2 million tons of finished products annually, with the creation of 1,300 new jobs.

Monforts has supplied seven complete finishing machine ranges to Turkmenistan company Cotam, as the Central Asian country looks to boost its production of cotton yarns and fabrics via an ambitious textile industry modernisation plan.

Cotam now has two separate manufacturing sites at Babadayhan and Kaka, both of which have now been equipped with Monforts technologies built at the company’s plant in St Stefan in Austria.

Cotam supplies finished fabrics to both the apparel and home textiles markets and at its Babadayhan plant is now operating two Montex stenter lines and a Monfortex sanforizing line. At its new Kaka plant, the company has also installed two Montex stenter lines, as well as a Thermex universal hotflue for continuous dyeing and curing.

“Turkmenistan celebrated 30 years of independence in 2021 and has made a giant leap forward in its progressive development,” said Monforts Managing Director Stefan Flöth. “A textile industry equipped with modern high-tech equipment has been created factories and equipped with the most advanced and high-performance equipment built and put into operation. We are extremely pleased that the Ministry of the Textile Industry of Turkmenistan chose Monforts machinery for its new textile complex in Kaka and together with the machines for Babadayhan and other recent projects we are proud to say that 15 Monforts machines are now established in the country.”

The first Cradle to Cradle Certified^® clothing collection is on the market one year after the collaboration platform for Swiss textile labels was launched. The Circular Clothing cooperative has succeeded, in close cooperation with European suppliers, in gaining access to circular materials and equipment and using this for the Black Denim Collection by the ethical fashion label “the Blue suit”. An important step for the cooperative, which receives funding from the Migros Pioneer Fund, is the development of an online assessment tool which can be used to help check the readiness of textile labels to operate in a circular manner.

The black denim was developed by a renowned manufacturer in Italy. Since no toxic chemicals are used in the production process, this denim is safe for biological cycles and Cradle to Cradle Certified^® Gold. Cradle to Cradle Certified^® Gold certified material by the Swiss company OceanSafe was used for the lining of the jacket. Special innovative design elements and production processes, such as the printed lining, also meet the stringent Cradle to Cradle Certified^® Gold requirements. Currently, 1% of the material of the Black Denim Collection is Cradle to Cradle Certified® Bronze. In the next few months, this percent and thus also the whole garments should reach the gold level.

The Cradle to Cradle^® certification is based on the following five principles: Material Health, Product Circularity, Clean Air & Climate Protection, Water & Soil Stewardship, and Social Fairness. Depending on the extent to which all of these criteria are met by the manufacturing process, there are various levels of certification from bronze to silver, gold and platinum.

adidas announces preliminary results for the third quarter and adjusted its full year 2022 guidance. The company’s new outlook takes into account a further deterioration of traffic trends in Greater China as well as a significant inventory build-up as a result of lower consumer demand in major Western markets since the beginning of September, which is expected to lead to higher promotional activity during the remainder of the year. The new outlook also reflects several one-off costs impacting the company’s bottom-line results in both the third and fourth quarter of the year.

Based on preliminary numbers, adidas’ currency-neutral revenues grew 4% during the third quarter. Currency-neutral sales in Greater China declined at a strong double-digit rate reflecting the continued widespread covid-19-related restrictions as well as significant inventory takebacks. Excluding Greater China, currency-neutral revenues in the company’s other markets combined continued to grow at a double-digit rate during the quarter. In euro terms, the company’s sales increased 11% to € 6.408 billion in Q3. The gross margin declined 1.0 percentage points to a level of 49.1% and operating margin reached 8.8% during the third quarter (2021: 11.7%). Net income from continuing operations was € 179 million in Q3 (2021: € 479 million). The bottom-line development during the quarter reflects several one-off costs totaling almost € 300 million on the net income level. The majority of these expenses reflect the company’s decision to initiate the wind-down of its business operations in Russia. In addition, non-recurring costs related to accelerated cash pooling in high inflationary countries, a recently settled legal dispute as well as higher provisions for customs-related risks also had an adverse effect on the company’s gross profit, operating overheads as well as financial and tax expenses in the quarter.

As a result of the deteriorating traffic trend in Greater China, higher clearance activity to reduce elevated inventory levels (up 63% on a currency-neutral basis at the end of Q3) as well as total one-off costs of around € 500 million on the net income level in 2022, the company reduced its full year guidance. adidas now expects currency-neutral revenues for the total company to grow at a mid-single-digit rate in 2022 (previously: mid- to high-single-digit rate), reflecting double-digit revenue growth during the fourth quarter. This growth will be driven by adidas’ strong product pipeline, support from the FIFA World Cup 2022 as well as easier prior year comparables. The company’s gross margin is now expected to be around 47.5% in 2022 (previously: around 49.0%). Consequently, the company’s operating margin is now forecasted to be around 4.0% in 2022 (previously: around 7.0%). Net income from continuing operations is expected to reach a level of around € 500 million (previously: around € 1.3 billion).

In 2023, the company expects the non-recurrence of the one-off costs of around € 500 million occurred in 2022 to have a positive impact on the net income development in the same order of magnitude. In addition, in light of the challenging market environment adidas established a business improvement program to safeguard the company’s profitability in 2023. As part of this program the company has launched several initiatives aimed at mitigating the significant cost increases resulting from the inflationary pressure across the company’s value chain as well as unfavorable currency movements. In total, the program, which will result in one-off costs of around € 50 million in the fourth quarter of 2022, is expected to compensate cost headwinds of up to € 500 million in 2023. In addition, it is expected to deliver a positive profit contribution of around € 200 million next year.

and textile technology company Infinited Fiber Company’s work to build the world’s first commercial-scale Infinna™ textile fiber factory in Kemi, Finland, has progressed largely according to plan since the announcement of the factory site in June 2022. The company is increasing its focus on scaling Infinna™ production volume further as quickly as possible. This is in response to the continued and growing customer demand for the company’s high-quality regenerated textile fiber Infinna™. The market impacts of the ongoing war in Ukraine – including the increased uncertainty on the global utility, commodity and financial markets – have highlighted the need to proceed rapidly with technology scaling on multiple fronts.
 
“We are not immune to the global market context in which we operate. The supply chain issues stemming from the Covid-19 pandemic are still wreaking havoc, and the ongoing war in Ukraine has dealt a heavy blow to the global utility, commodity, and financial markets – and to us. We are satisfied with the progress at the site of our planned commercial-scale factory and the opening of the factory remains our key priority. The current, unstable market environment has highlighted the need for us to also accelerate efforts to simultaneously pursue other avenues for scaling production, with the ultimate aim of serving our customers in the best possible way in the long run,” said Infinited Fiber Company CEO and cofounder Petri Alava.
 
Infinited Fiber Company said in June that it planned to build a factory to produce Infinna™, a textile fiber that can be created 100% from cotton-rich textile waste, at the site of a discontinued paper mill in Kemi, Finland. The factory is expected to create around 270 jobs in the area and to have an annual production capacity of 30,000 metric tons, equivalent to the fiber needed for about 100 million T-shirts. The future factory’s customer-base includes several of the world’s leading apparel companies, with most of the future production capacity already sold out for several years.
 
Since June, Infinited Fiber Company has advanced the site-specific basic engineering, recruitment planning, vendor selection, and permit processes according to plan. The limited component availability caused by the continuing impacts of the Covid-19 pandemic and the war in Ukraine have, however, prolonged significantly the delivery times for some of the key equipment and machinery needed for the factory. As a result of these developments, Infinited Fiber Company has re-evaluated its overall factory project timeline. The first commercial fiber deliveries from Kemi are now expected to begin in January 2026. The scope of the project remains unchanged and construction work at the site is expected begin during 2023 as previously communicated.
 
In addition, the European energy crisis sparked by the war in Ukraine has caused the electricity prices in Finland to roughly triple, and the prices of some of the key chemicals needed in the fiber regeneration process have risen by some 200-300% since the start of the war.
 
“We of course don’t have a crystal ball. But according to our advisors and other experts, utility and commodity prices are forecast to normalize before 2026, when we now expect the first commercial fiber deliveries from Kemi to be shipped. In addition to the likely normalization of the market, the extended timeline enables us to undertake the necessary measures to develop the profitability of the future factory. The growing demand for Infinna™, despite the general turbulence, is an encouraging and clear indication of the fashion industry’s commitment to circularity,” said Petri Alava.

Mimaki announce their third Global Innovation Days (19th – 21st October 2022). This collaborative virtual experience unites Mimaki’s regional offices to discuss trends across the different markets and the American, Asian, and European regions operated in by Mimaki, through a series of live and pre-recorded demonstrations, webinars, and round-table discussions. The programme of events will be led by experts from Mimaki Europe, Japan, USA and Australia.

With a focus on addressing the queries and requirements across the many facets of the print industry, the event will see collaborations with the likes of FESPA, from whom spokespeople will be attending to discuss the latest trends and innovations identified at FESPA this year, as well as a look ahead to next year’s event and what people can expect to see.

Attendees will also have the opportunity to further explore the latest additions to Mimaki’s product portfolio, with demonstrations of the technologies and the applications that they are able to create coming live from the Mimaki showroom in Amsterdam. The 330 series, including the JV330-160, CJV330-160 and TS330-1600, will be showcased, as well as the full-colour capabilities of the 3DUJ-2207 3D printer, and Mimaki’s latest flatbed printer, the JFX600-2513, which boasts speeds thrice superior to that of its predecessor. Another highlight of the event will be a discussion held with leading print media and software vendors, to examine the current market trends from outside of the manufacturing perspective.

Carbios published its operating and financial results for the first half of 2022. The financial statements as of June 30, 2022 were approved by Carbios' Board of Directors.

• Project to build the world's first PET biorecycling plant, in partnership with Indorama Ventures, the world's largest manufacturer of recycled PET: Establishment in France with strong backing from national government and the Grand-Est Region
• On track to bring recycled PET from Carbios' proprietary innovation process to market by 2025
• Fully operational industrial demonstration plant and step-by-step technological validation of the scale-up of the industrial solution designed and developed by Carbios
• Launch of a textile consortium in partnership with On, Patagonia, PUMA and Salomon
• Scientific article in the prestigious Biophysical Journal
• Carbios strengthens its Governance and Management team
• Carbios enhance its financial structure, banking the €30 million loan from the European Investment Bank (EIB)
• Carbios Group's net cash position: €121 million at June 30, 2022

See the full report here.

Within the scope of the United Nations Economic Commission for Europe (UNECE) initiative “The Sustainability Pledge”, to improve transparency and traceability for sustainable garment and footwear supply chains, the Swiss company Haelixa traces Egyptian cotton from the source up to premium shirts.

The UNECE and United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) has been developing over the period 2019-2022 policy recommendations, implementation guidelines, a call to action, and a traceability toolbox including blockchain and DNA tracing solutions, which has been implemented in few different textile supply chains. Haelixa is part of the group of experts that develops such policy recommendations and conducts projects with key industry players to set traceability benchmarks and later develop them into standards.

Fashion brands are often responsible for complex global value chains and traceability is the needed tool to enable trust, transparency and credible sustainability. The magnitude of the supply chain traceability challenge can be overwhelming for brands, but the UNECE initiative framework facilitates the alignment with suppliers, provides the necessary guidance and the needed tools, with Haelixa as physical traceability provider.

To make the premium shirts traceable, Haelixa has developed a DNA marker to label the raw material, premium Egyptian cotton. The DNA marker has been applied as fine spray to GIZA 96 lint cotton in Borg Al Arab, Egypt and used to produce the finest fabric by Swiss manufacturer Weba. Once applied to the fibers, Haelixa’s DNA markers stay safely embedded into the material and withstand the industrial processing, ensuring traceability from the source until the finished garment. Samples of lint cotton, yarn, and fabric at different steps were verified with a test based on PCR, and the correct DNA marker was detected, thereby enabling the identification of the premium product, of its origin and the specific supply chain. The forensic data obtained were recorded on a blockchain system provided by UNECE. The marked fabric was used to make Hugo Boss cotton dress shirts. As one of the leading premium fashion brands and partner to the UNECE project, Hugo Boss is responsible for a complex global value chain and strives for high sustainability standards and is looking at traceability options.

“In cases like this one, where the material is of the highest quality and the product is shipped from one facility to another for premium processing, adding physical traceability is critical to ensure that the origin, quality and processing claims can be backed up" says Gediminas Mikutis, CTO and co-founder at Haelixa.

Maria Teresa Pisani, Economic Affairs Officer and Project Lead at UNECE, emphasized: “Traceability and transparency are crucial elements to protect environmental, social, and human rights along global value chains. At UNECE, we aim to enhance traceability approaches by exploring new and innovative solutions that help identify and address negative impacts in the fashion industry.”

A huge logistics hub which is set to become AkzoNobel’s largest warehousing base in China is on course to be completed by the middle of 2023.

Located at the company’s decorative paints site in Songjiang, Shanghai, the new €10.3 million facility – a nerve center for production, storage and transport – will use intelligent digital technologies and advanced security management to customize storage and operation modes for different product categories.

“Eastern China is a strategically important region for us and the new facility will ensure that we’re well placed to meet the steady growth in demand which is expected over the next ten years,” says Mark Kwok, AkzoNobel’s President of China/North Asia and Business Director for Decorative Paints China/North Asia.

Equipped with a heat-insulating and light-permeable roof – along with nearly 5,000 solar panels that will generate 1.6 million kWh of electricity – the new facility will collect clean energy and use it for warehouse and office lighting, as well as charging forklifts.

The use of clean energy, logistics optimization and the automation of warehouse operations will make an important contribution to the company’s ambition of cutting carbon emissions by 50% and moving to 100% renewable electricity by 2030.

Earlier this year, AkzoNobel also announced that it was investing in a new production line for water-based texture paints in Songjiang. The new 2,500 square meter plant will boost capacity for producing Dulux products for various markets.

The new warehousing facility is scheduled for completion in May 2023.

• Integrated Sustainability Report 2021 – 2022 published

DyStar, a leading specialty chemical company released its twelfth annual Sustainability Performance Report. The report is prepared in accordance with the updated GRI Standards 2021: Core option. DyStar continues to adopt the Integrated Reporting <IR> framework to communicate how the group has successfully created tangible value across multiple stakeholder groups in six major capitals.

DyStar reports that they have inched themselves closer to some of their 2025 target of reducing the environmental footprint by 30% for every ton of product, from 2011 levels. Here are some key highlights for FY2021:

• Recorded more than 29% increase in revenue compared to 2020
• Zero workplace fatalities, high-consequence injuries, and work-related ill health
• 40% reduction in Greenhouse gas (GHG) emission intensity, compared to 2011
• 37% decrease in wastewater emission intensity, compared to 2011

The Group was able to remain resilient and steer itself toward optimistic growth and recovery from the global pandemic in FY2021. In face of recent geopolitical events and macroeconomic factors such as soaring energy costs, DyStar and the wider supply chain will continue to face challenges. As a result, the company believes it is crucial to stay committed to their 2025 Sustainability goals to continue generating value for all stakeholders in the longer term, well beyond these turbulent times.

The report communicates DyStar’s progress towards its sustainability agenda and material topics. As part of our commitment to environmental sustainability, only an e-magazine and a PDF version will be made available for download from www.DyStar.com/sustainability-reports/