From the Sector

Mahlo GmbH + Co. KG exhibits its technologies at the upcoming IndoIntertex trade show in Jakarta. The event, scheduled from March 20 to March 23, will serve as a platform for Mahlo and its long-term partner agency Agansa to showcase its solutions tailored to meet the evolving needs of the Indonesian textile sector.

With a rich history in textile manufacturing and a skilled workforce, Indonesia has emerged as a key player in the global textile landscape. The country's strategic location, coupled with favorable government policies, has fueled the growth of its textile sector, attracting investments and fostering technological advancements.

Mahlo's participation in the IndoIntertex trade show underscores its commitment to supporting the Indonesian textile industry with solutions designed to enhance quality, efficiency, and productivity. Visitors to Mahlo's booth can expect to explore a range of offerings, including measurement and control systems, process automation solutions, and expert consultancy services.

Representatives from all 43 European partners of RegioGreenTex met for the Annual Consortium Meeting, hosted by CITEVE – the Portuguese Centre for textile innovation.

Co-funded by the European Union I3 Instrument Programme, RegioGreenTex is a €13 million project to promote investments in textile circularity. Research centres, regional clusters, regional development agencies and 26 SMEs collaborate to realise unique pilot projects to transform the textile industry business model from linear to circular.
 
The annual consortium meeting is a pivotal point to assess the project’s progress and impact. Presentations and workshops have been an essential part of the meeting, along with  networking opportunities where partners created synergies and discussed common challenges. Furthermore, all SME partners showcased their results through an exhibition with samples of garments, yarns, fabrics and products: the outcome of the project’s innovation so far. New collaborations and partners are expected to flourish as another outcome and the meeting.

EURATEX, as project coordinator, ensures the successful implementation of this ambitious initiative. Dirk Vantyghem, EURATEX Director General, commented: “RegioGreenTex is an essential piece of our wider plan to implement the EU Sustainable Textile Strategy. Offering investment support to our SMEs is critical to make this green transition a success.”

Global Fashion Agenda (GFA) has collaborated with PDS Ventures to launch a new Trailblazer Programme. The new initiative seeks to identify early-stage innovators and support them on their journey to scale.

As part of the Trailblazer Programme, PDS Ventures will award one innovator a significant investment of up to USD 200,000* to accelerate the company’s growth and positive impact in the fashion industry. The winner will also receive commercial and operational support from PDS Group’s Positive Materials - a textile company and strategic research partner supporting the development and acceleration of low impact textile innovation through collaboration between early-stage start-ups, supply chain partners and brands. Further scaling opportunities will be gained through access to PDS Limited’s extensive global supply chain.
 
GFA and PDS Ventures are presenting an open call for solution providers addressing different challenges across the fashion value chain to apply for the programme. Applicants will be reviewed and shortlisted by an esteemed Jury including representatives from GFA, PDS Ventures, Massachusetts Institute of Technology (MIT), Ralph Lauren Corporation, Fashion For Good and H&M Group. Eight shortlisted innovations will be enrolled in a group of Trailblazers, receiving feedback and investment pitch training from industry experts and PDS representatives.     
 
Each shortlisted innovator will then pitch for a potential investment, with the winning Trailblazer being revealed at GFA’s Global Fashion Summit: Copenhagen Edition 2024 - an international forum for sustainability in fashion, on 22-23 May at the Copenhagen Concert Hall. All shortlisted Trailblazers will also have the opportunity to showcase their businesses within an exhibit at the Summit to connect with other key industry stakeholders and potential investors.
 
The Trailblazer Programme corresponds with the theme of the upcoming Global Fashion Summit - ‘Unlocking The Next Level’. Inspired by a significant milestone, 2024 marks 15 years since the inaugural Global Fashion Summit was hosted in 2009. This pivotal anniversary offers a special moment to not only take stock of the evolution of the sector and the progress made so far, but, most importantly, look ahead at what actions must urgently be implemented in the near term, and the gaps that must be filled to accelerate industry transformation.

Turkey's leading garment machinery manufacturers and representatives have collaborated with Teknik Fuarcılık for GarmentTech İstanbul Garment, Embroidery Machines Spare Parts and Sub Industry Exhibition to host the first GarmentTech İstanbul Exhibition.

The GarmentTech İstanbul Exhibition will be held at İstanbul Expo Center (IFM) between June 25-28, 2025 and brings together all the technologies used in garment and ready-to-wear production.

The ready-to-wear and garment sector is among the locomotive sectors of the Turkish economy with both employment and export income. With 22 thousand 640 exporters and 42 thousand 434 manufacturers, the sector is among the priority sectors in the country's employment with approximately 700 thousand people working in production. Together with the retail and ready-to-wear sectors, total employment exceeds 2 million.

On the other hand, ready-to-wear and garment sector is the 3rd largest exporter in Turkey. Turkey is the 5th country in the world that exports the most ready-to-wear and garment. In 2023, the sector reached 19.3 billion dollars in exports and has a share of 7.5% in general exports.

Teknik Fuarcılık, which has more than 30 years of experience in exhibition organization and has made the ITM International Textile Machinery Exhibition a world brand, has taken action to make the success achieved by the garment and ready-to-wear sector sustainable. GarmentTech İstanbul Exhibition, which will be organized with the support of the members of the Garment Machinery Advisory Board and in cooperation with the Apparel Automation and Machinery Manufacturers Association (KOMİD), will host professional visitors and global buyers from all over the world.

The press conference of GarmentTech İstanbul Exhibition was attended by members of the Garment Machinery Advisory Board, Vice Chairman of Astaş Holding H. Kaya Aşçı, Astaş Juki Board Member and General Manager Turgay Aşçı, Chairman of the Board of Çatma Makine Yavuz Çatma, Chairman of the Board of Alba Makine Cengiz Albayrak, General Manager of Malkan Makine Alparslan Er, General Manager of Uğur Makine Temel Kamiloğlu, Tetaş Sales and Marketing Assistant General Manager Murat Eren, Malkan Makina Factory Manager Metin Kılıç and KOMID President Haluk Akın, TEMSAD President Adil Nalbant, KOMİD Members Serkon Makina Chairman İzzet Savaş, Robotech General Manager Hüseyin Çetin, Chairman of the Board of NewTech Machinery Nezir Yazıcı, LGM Foreign Trade Specialist Yiğit Sağdık Manav, Avtek Manager Oğuz Avcı and many sector representatives.

In the context of the EU Pact for Skills, EURATEX launches an EU co-funded project under ERASMUS+ Programme to support the up-skilling and reskilling in the textile, clothing, leather and footwear (TCLF) sectors.  The new project, AEQUALIS-4-TCLF, brings together 19 partners mainly from Eastern and Northern Europe¹ who will work together in the coming 4 years to give a boost to upskilling and reskilling of workers in the TCLF industry.

Following the blueprint project SMART4TCLF and complementary to the METASKILLS4TCLF project, AEQUALIS4TCLF prioritizes creating strong links with regional and local entities to boost skills initiatives and establishing an EU-wide Network of TCLF vocational education and training (VET) and higher education (HE) providers. Based on the results from the skills gap analysis, AEQUALIS4TCLF will develop new national skills strategies in seven countries to address specific regional needs, setting a clear path for workforce development with special attention to addressing discrimination and promote diversity in the TCLF industries.

¹ List of Netherlands, Czechia, Lithuania, Finland, Croatia, Slovenia, Serbia

Re:NewCell AB announced that the Stockholm District Court has decided to approve the previously communicated bankruptcy application and has declared the company bankrupt.

The appointed bankruptcy trustee is lawyer Lars-Henrik Andersson at Cirio Advokatbyrå.

February,25 the Board of Directors had decided to file for bankruptcy of Re:NewCell AB at the Stockholm District Court. The reason for the decision to file for bankruptcy was that Re:NewCell has not been able to secure sufficient financing to complete the strategic review, announced on 20 November 2023, with satisfactory result.

As part of the strategic review, Re:NewCell has had well advanced negotiations with its two largest shareholders, H&M and Girindus, its existing lenders BNP Paribas, European Investment Bank, Finnvera (as partial guarantor), Nordea, AB Svensk Exportkredit and potential new investors as well as other stakeholders regarding long-term financing solutions. These discussions have not resulted in a solution which would provide Re:NewCell with the necessary liquidity and capital to ensure its operations going forward.

"I regret to inform that we have been forced to take this decision to file for bankruptcy. As we have a strong belief in the company’s long-term potential, we have together with our advisors spent very substantial time and efforts into trying to secure the necessary liquidity, capital and ownership structure for the company to secure its future. As part of the negotiations, we have had intense dialogues with both current main owners, new investors and our banks, as well as other stakeholders. However, these discussions have not been successful. This is a sad day for the environment, our employees, our shareholders, and our other stakeholders, and it is a testament to the lack of leadership and necessary pace of change in the fashion industry” says Chairman of the Board of Directors, Michael Berg.

• Revenues: 477.6 million euros (-6%)
• EBITDA before non-recurring items: 79.0 million euros (-15%)
• Net income: 32.6 million euros (-26%)
• Free cash flow before non-recurring items: 45.3 million euros
• Dividend: €0.36 per share

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2023. Audit procedures have been performed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 3.9 million euros (-3%) and 1.7 million euros (-8%) respectively in Q4, and by 11.2 million euros (-2%) and 4.8 million euros (-6%) respectively in the year, at actual exchange rates compared to like-for-like figures.

OUTLOOK
While the 2023 full-year results were affected by the adverse environment, they also attest to the substantial improvement in the fundamentals of the Group's business model, which will have a positive impact on 2024 results. Persistent macroeconomic and geopolitical uncertainties could nevertheless continue to weigh on investment decisions by the Group's customers.

While the most recent indicators seem to suggest that the situation is unlikely to deteriorate further, the timing and magnitude of a rebound in new system orders remain uncertain.

Outlook for 2024
To facilitate analysis, the accounts of Lectra excluding the Launchmetrics acquisition ("Lectra 2023 Scope") will be analysed separately from the Launchmetrics accounts in 2024.

The Group has based its 2024 objectives on the exchange rates in effect on December 29, 2023, in particular $1.10/€1. When converting 2023 results using the exchange rates retained for 2024, 2023 revenues are mechanically reduced by 4.7 million euros (to 472.9 million euros) and 2023 EBITDA before non-recurring items is reduced by 2.2 million euros (to 76.8 million euros). Thus, for the Lectra 2023 Scope, the comparisons between 2024 and 2023 printed below are based on constant exchange rates.

At this early stage of 2024, continuing low visibility regarding orders and revenues from new systems makes it impossible to predict the actual timing and scale of the future rebound in this area. On the other hand, visibility is high for recurring revenues, which accounted for 68% of total revenues in 2023 and will continue to grow in 2024.

In light of the above, Lectra has set as its objective for 2024, for the Lectra 2023 Scope, to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The low end of the revenues range is based on the absence of a rebound in new systems orders, which would remain stable in 2024 relative to 2023, with a 6% decline in revenues from perpetual software licenses, equipment and accompanying software and non-recurring services, as the order backlog was lower on December 31, 2023 than a year before.

The high end of the revenues range reflects a gradual rebound in new systems orders, which at year-end 2024 would be back to year-end 2022 level.
 
In addition, Launchmetrics revenues (for the consolidation period from January 23 to December 31) are projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15% (assuming an exchange rate of $1.10/€1).

In the fourth quarter of 2023 Italian textile machinery orders index, drawn up by the Economics Department of ACIMIT, the Association of Italian Textile Machinery Manufacturers, appears to be stationary compared to data recorded for the same period in 2022. In terms of absolute value, the index stood at 82.4 points (basis: 2015=100).

This is the result of an upswing in orders from foreign markets, counterbalanced by declining orders on the domestic front. While orders in Italy decreased at 18% rate, a 4% increase was observed abroad. The absolute value of the index on foreign markets amounted to 77.9 points, whereas it came in at 126.2 points domestically. Overall for the fourth quarter, the average order backlog yielded 3.7 months of assured production.

For the whole 2023 year, the index declined 25% overall compared to the 2022 average (absolute index of 82.4). On the home front however, the index dropped 24% (absolute index of 124.5), while slipping 25% abroad (absolute index of 78.4).
 
ACIMIT president Marco Salvadè commented: "The orders index for October – December 2023, as elaborated by our Economics Department, confirms an intake of orders that is still weak, with a negative trend in demand for machinery that is ongoing for the domestic market."

Nonetheless, the orders index abroad shows a slight increase. We estimate that the global geopolitical context is still a source of concern,” continued Salvadè, specifying that, “For the first nine months of 2023, Italian exports on major global markets (i.e. China, Turkey, India and the United States of America), confirm a widespread decline. However, some positive signs emerged in the fourth quarter of last year, as reflected by the latest orders index. For 2024 we expect a consolidation of this trend reversal."

More than 82 companies, businesses and social organizations – including AkzoNobel – are involved in a major Dutch research program focused on developing new technologies that will help solve some of today’s societal challenges.
 
Seven broad consortia have been established as part of the government-funded “Perspectief” program, with AkzoNobel set to play a leading role in the SusInkCoat project, which will explore how to make inks and coatings more sustainable.

The company will work together with private partners and other societal stakeholders to develop new materials, processes and applications to improve the durability, functionality and recyclability of coatings, thin films and inks. The program, which will run for the next five years, is backed by the Ministry of Economic Affairs and Climate Policy and the Dutch Research Council (NWO).

“Our discussions about collaborating with our SusInkCoat partners have been very positive,” says AkzoNobel’s R&D Director of Scientific Academic Programs, André van Linden, who is also the co-lead of SusInkCoat. “We’re all facing the same societal challenges – how to become more circular – and we’re looking for the same solutions in different application areas. But we’ve never done that together for this specific research topic, so we need an ecosystem to help us solve these challenges.
 
Van Linden adds that the program – one of many R&D projects the company is involved with – will also support AkzoNobel’s ambition to achieve 50% less carbon emissions in its own operations – and across the value chain – by 2030.
 
 “We want to make the recyclability of materials - such as furniture, building materials and steel constructions - easier by introducing functionalities like self-healing, higher durability and triggered release,” he continues. “The more you can leave the materials in their original state, the more sustainably you can operate.”

AkzoNobel will be collaborating with Canon, Evonik, GFB, PTG and RUG Ventures, who together possess extensive knowledge of market demands, supply chains and production processes. All the SusInkCoat partners will also work with academic researchers at several Dutch universities in an effort to identify promising developments that can be commercialized, used for education purposes or for outreach to the public.

Research being conducted by the other six consortia includes investigating methods to make tastier plant-based food; flat optics for more sustainable hi-tech equipment; and cheaper and more accessible medical imaging technology.

The fashion industry, which has strategic importance for the Turkish economy with its value-added production, employment, and exports, came together with representatives of global brands and Laison offices at the 'Green transformation' summit. At the meeting hosted by the Istanbul Apparel Exporters' Association (IHKIB), the studies carried out in the process of adaptation to the Green Deal were put under the spotlight, and the expectations of the Turkish fashion industry from the stakeholders were also expressed.

The opening of the meeting, attended by representatives of relevant ministries and foreign representations, national and international fund providers, as well as brands and buying groups were brought together, was made by Türkiye Exporters Assembly (TIM) and IHKIB President Mustafa Gültepe. In his speech, Gültepe underlined Türkiye's importance in the global apparel industry, by realizing approximately 3.5 percent of world apparel exports. Gültepe continued as follows:

"As IHKIB, we aim to increase our current annual exports, which are around $20 billion, to $40 billion. The road to the goal goes through Europe and America because the European Union is our largest market in apparel. We export 60 percent of our total apparel exports to EU countries. When we add other European countries and the USA, the ratio approaches 75 percent. While working on alternatives for the $40 billion in exports, we need to focus more on the European and U.S. markets because, as the data shows, the path to $40 billion in apparel exports goes through Europe and the U.S. We already have long-standing collaborations with brands centered in Europe and America. With our knowledge, speed, production quality, design power, and geographical proximity to Europe, we distinguish ourselves from competitors. We took a very important step in the transformation process exactly one year ago. We shared our action plan, which is a road map for our fashion industry's compliance with the Green Deal, with the public on January 30, 2023."

After Mustafa Gültepe's opening speech, Euratex Director General Dirk Vantyghem, Deputy Director General of the Ministry of Trade Bahar Güçlü, and Deputy Secretary General of ITKIB Özlem Güneş made presentations regarding the ongoing efforts in the Green Deal process.

Dirk Vantyghem discussed the sustainability strategy of the textile and apparel industry and the expectations from the EU administration, while Bahar Güçlü provided information about the reflections of legal regulations related to the Green Deal on Türkiye.

Deputy Secretary General of ITKIB Özlem Güneş emphasized the significant opportunity that the Green Deal represents for the Turkish apparel industry, providing comprehensive insights into the efforts conducted by IHKIB regarding the Green Deal adaptation process.