From the Sector

• European textile industry needs to prepare for a paradigm shift, and become global leader in sustainable textiles

Organised by EURATEX in partnership with the Portuguese Textile Association (ATP), the Porto Convention – Sustainability meets Competitiveness: How to Square the Circle? – took place on 13-14 October in Porto, Portugal, with nearly 250 entrepreneurs attending from all over Europe. They discussed the current challenges of the European textile industry and set the grounds for a bright future, based on some strong foundations: innovation, creativity, quality and sustainability.

In his keynote speech, Mr. Pedro Siza Vieira, Former Minister for the Economy and Digital Transition of Portugal, assessed the geopolitical and macroeconomics changes, and how this will impact on the future of the textile industry: nearshoring and friend-shoring, independence from foreign gas through the use of European sustainable energy, as well as circular and automated production lines. While the current turbulence causes uncertainty, he sees a better future for our industry.

The first CEO Panel, addressing the theme of How to Measure and Communicate about Sustainability, focused on the challenges to translate “sustainability” towards the consumers. The panel addressed the issue of greenwashing and the role of brands in communicating about sustainability. It looked at how the new European Commission regulations on eco-label, digital product passport (DPP) and product environmental footprint (PEF) will create a new framework.

The second CEO Panel, discussing Financing Sustainability, looked at the cost of sustainable investments, and how this cost should be managed within the entire supply chain, including the brands and retailers.

Four workshops with industry experts followed in the afternoon, addressing the themes of Extended Producer Responsibility (EPR) in Textiles, Digital Product Passport (DPP), Recycling Textile Waste and Labelling Textiles (Product Environmental Footprint). As these initiatives will roll out in the coming years – as part of the EU Textile Strategy – participants got a better understanding of the future framework for our industry.

Dirk Vantyghem, Director General of EURATEX, commented on this: “to prepare for a brighter future requires a new regulatory framework, where quality and durability become the norm, where transparency and sustainability is rewarded, where free riders – who do not comply with rules and standards – are kept outside the market. The EU Textile Strategy aims at creating such a framework, which must be fair and balanced, and requires a close and constant dialogue between the regulator and the industry.”

During the 2nd day of the convention, participants had the opportunity to visit state of the art textile companies (Têxteis J.F. Almeida, RIOPELE, and TMG Automotive) and the Portuguese textile  research centre CITEVE. They showcased how the Portuguese textile industry is making this transition, while remaining globally competitive.

Alberto Paccanelli, President of EURATEX, concluded: “We need to attract creative people in our companies, we need to produce top class quality products, and we need to become more sustainable. That is the recipe for our success in a globalised and highly competitive industry.” Paccanelli is positive about the future: “While we face very tough times, I am optimistic about the future of our European textile industry. The rest of the world is watching us, as we move forward with our strategy. We should become their benchmark and Europe should become a global leader in sustainable textiles.”

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.

Highlights Grow & Deliver (compared with Q3 2021)

• Revenue up 19% and 14% higher in constant currencies1, pricing up 13%
• ROS2 at 6.4% (2021: 10.0%), resulting from lower volumes and higher raw material and freight costs, as well as inflation on operating expenses
• Adjusted EBITDA at €283 million (2021: €325 million)
• Q4 2022 adjusted operating income expected below €150 million

Highlights Q3 2022 (compared with Q3 2021)

• Pricing up 13%, offsetting the increase of raw material and other variable costs. Volumes 5% lower, mainly due to destocking in the distribution channels in Decorative Paints in Europe and in Performance Coatings, as well as lower market demand in China
• Operating income at €168 million (2021: €226 million), includes €16 million negative impact from Identified items (2021: €15 million net negative impact) and €17 million negative from the retrospective hyperinflation impact of the first half-year of 2022. OPI margin 5.9% (2021: 9.4%)
• Adjusted operating income3 at €184 million (2021: €241 million); excluding the retrospective impact of hyperinflation accounting at €201 million
• Net cash from operating activities decreased to an inflow of €126 million (2021: inflow of €290 million)
• Net income attributable to shareholders at €84 million (2021: €164 million)
• EPS from total operations at €0.48 (2021: €0.89); adjusted EPS from continuing operations at €0.57 (2021: €0.93)
• Interim dividend of €0.44 per share (2021: €0.44 per share)

AkzoNobel CEO, Thierry Vanlancker, commented: “Our €201 million adjusted operating income excluding the retrospective impact of hyperinflation accounting bring our Q3 results in line with the market update issued at the end of September. Sharply increased macro-economic uncertainties negatively impacted consumer confidence. This resulted in destocking across several distribution channels in decorative paints Europe and performance coatings, while the market in China was impacted by the ongoing zero COVID-19 policy. Thanks to the strong commitment of our teams, we continue to offset the impact of raw material and freight cost inflation with pricing. We’ve now delivered cumulative pricing of 22% over the last two years. The macro-economic turbulence is expected to continue well into next year. We’ve therefore decided to suspend our targets for 2023 and will provide further guidance when announcing our full-year 2022 results. In the meantime, we will continue to focus on our margin management and cost reduction initiatives.”

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.

On 13-14 October, EURATEX in partnership with ATP is organising the 10th European Textile & Apparel Convention in Porto, Portugal; the convention marks also the 24th Textile Industry Forum for Portugal.

The Porto Convention – titled Sustainability meets Competitiveness: How to Square the Circle? – will look at how companies can anticipate the new European regulatory framework, embrace innovation, and develop a business model where sustainability becomes a source of competitiveness and growth. In the current economic, social and political environment, Europe is facing many challenges: increased energy prices, unforeseen inflation and climate change, which add to the day-to-day challenges of running a business. Embracing the European Union’s commitment to a green and digital transformation, the textile industry needs to also move towards a new circular economy where recycling is at the core of the design process supported by digitalisation, innovation and new skills, and creativity. The conference will address explore solutions to turn quality and sustainability into a source of competitiveness.

The Porto Convention will see representatives of national and European institutions, experts from the industry and like-minded entrepreneurs come together to discuss ideas, share experiences and find solutions to face common challenges.

The fashion industry currently produces 20% of global wastewater and 10% of global carbon emissions. Improvements can be made for example localizing fashion, using more on-demand digital printing (it can save up to 4kg of CO₂ per item) and digital textile printers (they reduce water use by up to 90% and energy use by up to 30%). Increasing the use of sustainable materials is vital and extending the lifecycle of use would make a serious difference.

Together with designers, producers, retailers, and customers, Paolo Crespi, Sales & Marketing Director Printing Technologies at Epson, will discuss how each stage of the fashion production can be made more sustainable, and how circularity and longevity can be build into the lifecycle of fashion.

The panel will take place on Tuesday, 11 October 2022 at 09:30-11:00 am CET.

Click here for more information.

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.”

Rieter is moving its Kahramanmaraş service station to a larger location covering 2 000 m² in a bid to broaden its offering and strengthen its market position in Turkey. The station will house one of the region’s largest test-spinning facilities and provide know-how in sustainable yarn manufacturing.

The comprehensive portfolio covers both mechanical and electronic services, including the revision of gear units, servomotor adjustments, and suction drums. The station will also offer preventive maintenance and mill optimization. The service offering spans the entire Rieter product portfolio.

Highlights of the Kahramanmaraş Service Station include the setup of a fully automatic rotor spinning machine R 70 and the winding machine Autoconer X6. Three-quarters of the 2 000 m² service space is reserved for functional activities, which will feature one of the region’s largest test-spinning facilities. Customers can run yarn comparison tests and analyze the impact of different technology parts so they can optimize machine setups. In-depth yarn trials and access to Rieter textile technology expertise will allow customers to cater more effectively to the dynamic demands of textile brands regarding performance, quality and sustainability, such as recycling applications.

The Kahramanmaraş service station is strategically located at the heart of the region’s textile industry, with a large proportion of Rieter’s installed base located within a radius of around 200 kilometers. Turkey is a textile powerhouse, currently ranking fifth in global exports and poised for additional growth. The country’s industry is also implementing a green action plan to help it meet the growing demand for sustainable textiles, especially from Europe.

The new service station starts operations in September 2022 and will accelerate the growth of the company’s three stations in Turkey. Rieter has been operating service stations in Turkey since 2005 with a presence in the country dating back to the 1990s.