From the Sector

International technology Group ANDRITZ has successfully started up a new batt forming line at Romatex Home Textiles (Pty) Ltd., based in Cape Town, one of the largest household textile manufacturers in South Africa. The line is dedicated to the production of Maliwatt products used in a wide range of applications, including home textiles, construction, geotextiles, medical, footwear, and as a replacement for plastic in the retail sector.

ANDRITZ has supplied Romatex with dedicated batt forming equipment, mixing an aXcess card and an eXcelle crosslapper to provide Romatex’s technical characteristics in terms of product quality and line performance. This new stitchbonding line will enable Romatex to better serve its customers and meet their requirements perfectly.

Lenzing – The Lenzing Group had a clearly positive revenue and earnings development in the first quarter of 2021. Growing optimism in the textile and apparel industry as a result of the vaccination progress and the continuing recovery in retail led to a significant increase in demand and higher prices in the global fiber market.

•    Significant increase in operating result: EBITDA at EUR 94.5 mn, cash flow from operating activities more than tripled
•    Major strategic projects continue fully on track – production start of the lyocell plant in Thailand expected in the fourth quarter 2021
•    Upper Austria’s largest photovoltaic plant at the Lenzing site
•    Lenzing exits Hygiene Austria joint venture
•    Guidance 2021: Lenzing expects operating result at least at pre-crisis level

Please read the attached document for more information.

How to recognize truly sustainable fashion? How can responsible recycling of garments and fabrics - as well as new formulas for circular economy - make a difference in fighting the climate emergency? These are just some of the topics addressed during THE TEXTILE LIBRARY CIRCULAR SYMPOSIUM, the open-ended program of virtual meetings with some of the most influential fashion and sustainability experts organized by the Museo del Tessuto di Prato in collaboration with C.L.A.S.S. ecohub.

The museum and the international platform that creates awareness and supports professionals who believe in fashion and sustainable textiles have joined forces to talk not only to fashion enthusiasts but to everyone, and explore a hot and often underestimated topic that involves everyday life. The series of meetings deepens and complements the new section entirely dedicated to circular textiles in the museum's Textile Library.

Like a real symposium, THE TEXTILE LIBRARY CIRCULAR SYMPOSIUM is a conversation arena involving 10 game changers who have been able to innovate not only with high-tech and responsible products and materials but also with new formulas, business models and production systems that respect the planet and people. Among the speakers of the cycle, visionary innovators who generate change at all levels: from the entire production system and beyond to retailers, leading international brands, research companies and communication experts, all the way to the final consumer.

The first appointment is Wednesday, May 13 at 5 pm CEST with the talk THE SUSTAINABLE PERSPECTIVE. True sustainable fashion is a choral and capillary system in which every actor plays a fundamental role. During the meeting, professionals from different fields, from cultural institutions to industrial production, from marketing to retail, will share their perspective on sustainability.

Recycling is the key word in THE SECOND CHANCE, the second meeting scheduled for June 10 h. 5 p.m CEST.

On September 29, also at 5 p.m. CEST, appointment for the talk A TICKET TO FASHION... AND BACK entirely dedicated to the new models of circular economy.

You can register here.

Checkpoint  Systems, the vertically integrated solutions provider for retail, has announced the expansion of its HALO®Internet of Things (IoT) RFID software platform with the release of HALO 12.2.0.

Building on the software platform, this latest release includes a number of new features that will elevate it further.:

• Enhanced replenishment capabilitiesmaking picking and sales floor stocking easier, faster and more efficient. This saves retailers time, improves the customer shopping experience and drives increased revenue
• Expanded in-store receiving capabilities, providing stores with improved insights into stock arrivals, driving sales by ensuring the stock gets onto the sales floor faster
• Enhanced omnichannel in-store fulfilment with expanded shipping and packing capabilities. Retailers can make the most efficient use of their bricks and mortar stores to handle omnichannel purchases
• Continued expansion of RFID label options with new tagging features that are compatible with a wide variety of label options, providing easy-to-use processes that make a store associate’s job more efficient every day
• Expanded reporting capabilities provides a comprehensive performance overview of the business with metrics on KPIs that facilitate enterprise-wide successes all in one easy-to-access location
• Increased RFID device options, making the software  platform compatible with a wider range of devices already deployed by stores
• More inventory count options via new standard  API that simplifies connections to different fixed sensors, robots and drones. This makes the stock counting process more accurate and efficient
• Expanded translation capabilities, facilitating quick and efficient customisation to local dialects so that HALO can be deployed fasteracross an international estate.

The machines are quick and reliable, with very little downtime, which is massively important to me as a business owner.”

Kornit Digital (Nasdaq: KRNT), a worldwide market leader in digital textile printing technology, announced United Kingdom-based Kitlocker has implemented two Kornit Avalanche Poly Pro systems for efficient, retail-quality production of branded and customized apparel on demand.

Kitlocker operates within several sectors of the sports and leisurewear market, providing team gear for schools, football clubs, and other sporting organizations, managing e-commerce platforms on behalf of those organizations. Enabling their customers to embellish popular styles on demand, in any quantity, drove them to explore available technologies for speed and versatility, particularly regarding polyester apparel, a cornerstone of sportswear. Kornit’s Poly Pro system is the only single-step digital direct-to-garment (DTG) technology developed specifically for imprinting polyester and poly-blend materials, extending the company’s patented process for waste-free production with durability, precise graphic detail, and the broadest colour gamut to popular sports and athleisure apparel.

“The Kornit Avalanche Poly Pro allows for far superior quality of finish for embellishment compared to traditional print techniques,” says Mike Kent, Co-Owner of Kitlocker. “When we were shopping around for alternatives, it was obvious the sort of single pass, and its ability to print on polyester, was certainly market-leading—there was no alternative that could do that. The machines are quick and reliable, with very little downtime, which is massively important to me as a business owner.”

According to Kent, the technology has enabled Kitlocker to approach new markets that had always been off-limits previously, driving incremental business and building out new product ranges. The process lent itself to simple integration with their workflow and online design tools, empowering customers to visualize their own pieces and receive finished gear, with superior retail quality and precise logo colour matching, in mere days.

“The system allows us bigger print areas, more colours, and more elaborate designs, and our customers to uniquely embellish their garments on a wide range of products from different brands with lots of different kinds of creative outputs,” adds Kent.

“Our systems help brands like Kitlocker sync supply with demand, eliminating waste and making them more reactive to customer needs,” says Chris Govier, KDEU Managing Director. “Kornit Avalanche Poly Pro extends the efficiency, sustainability, quality, and logistical benefits of digitization to the booming sports and athleisure apparel market. Being able to give their customers the widest assortment of gear, customized in any quantity, on demand, is a winning game plan for Kitlocker.”

• 18+ metric tons of aniline are estimated to have been removed from the denim supply chain in about 3 years⁽²⁾.
• That represents 300'000'000+ pairs of jeans free of aniline, with 18'000+ garment workers, and aquatic life, protected from its toxicity⁽²⁾.

Archroma celebrates nearly 3 years of successfully converting the denim industry to aniline-free⁽¹⁾ pre-reduced liquid indigo.

Archroma launched its aniline-free⁽¹⁾ Denisol^® Pure Indigo in May 2018⁽³⁾.

Aniline is a key ingredient to make the indigo molecule. Unfortunately, during this process some aniline impurities are carried through into the indigo dyestuff. When the indigo is dyed on the fabric, a lot of the aniline impurity is locked into the pigment in the fabric. The remainder of the aniline impurity, approximately 300 metric tons annually, is discharged during dyeing. This can be an issue as aniline is toxic to aquatic life. In addition, exposure levels to factory workers can be high. The new Denisol^® Pure Indigo 30 liq was therefore developed as an aniline-free⁽¹⁾ indigo solution for designers, manufacturers and brand owners who long for authentic indigo inspiration.

Since the launch of Denisol^® Pure Indigo, several denim manufacturers, such as front-runner Absolute Denim, as well as Advance Denim, Azgard 9, Kilim Group, Nuevo Mundo, Rantex, Shasha Denim and Tuong Long, have taken the matter in their hands and converted their production or dedicated lines to aniline-free denim to brands and retailers.

The innovation is also supported by denim partners such as Be Disobedient and The Denim Window.

Archroma evaluates that, based on the total quantity of Denisol^® Pure Indigo sold until its introduction, its partners helped remove almost 18 metric tons of aniline from the denim supply chain. That represents an equivalent to about 300’000’000 pairs of jeans free of aniline and more than 18’000 garment workers protected from its toxicity⁽²⁾.

(1) Below limits of detection according to industry standards (tested & proven).
(2) Based on 15 minutes of work to produce one pair of jeans, produced over 8-hour working days and 300 working weeks per year.
(3) For the launch press release, click here.

• Several members of TMAS – the Swedish Textile Machinery Association – are actively advancing new coloration technologies as part of a wave of innovation that is currently sweeping out from Scandinavia.

New manufacturers of regenerated cellulosic fibers as alternatives to cotton and synthetics, for example, have been gaining a lot of attention recently, as they scale up to meet demands for a circular approach to the manufacturing of textiles and garments.

These companies have, in turn, been embraced by major Scandinavian brands such as the Danish clothing company Bestseller, Finnish fashion house Marimekko, Norwegian outdoor brand Bergans and Sweden’s own H&M Group.

Fiber journey
From the field or the forest to the retail shelves, however, the journey of every single textile fiber is currently a long one, in which it passes through many hands and moves around the world. The good news is that many of these individual stages are now being greatly simplified by digitalization.

“Digitalization will lead to a significant reduction in garments that for one reason or another are never sold and end up in landfill,” says Therese Premler-Andersson, Secretary General of TMAS. “There will of course, be a huge ecological benefit.”

At the very center of any fiber’s journey, once it has become part of a knitted or woven fabric, are the dyeing and finishing stages of textile production. Dyeing and finishing currently involves many washing and drying process steps which add a huge burden to the overall carbon footprint of finished garments and textile products.

Coloreel expansion
Here is where the latest fully digital technologies of TMAS member companies are making a dramatic difference, such as the instant thread coloration technology, of Coloreel, which has just raised SEK 100 in new financing to support its market expansion and growth.

Initially targeting the embroidery market, Coloreel technology enables the high-quality and instant coloring of a textile thread while it is actually being used in production and can be paired with any existing embroidery machine without modification, while also making it possible to produce gradients in an embroidery for the first time.

Based on a CMYK ink system, Coloreel’s advanced rapid color formulation software and high-speed drive technology allow a single needle to carry out what previously required many multiples of them to do – and with much more consistent stitch quality,

In addition, existing thread dyeing plants can add a single solid color to a thread, but by instantly coloring a white base thread during production, Coloreel enables complete freedom to create unique embroideries without any limitations in the use of colors. Color changes along the thread can either be made rapidly from one solid color to another, or gradually, to make smooth transitions or any coloring effect desired.

This provides big benefits when it comes to sustainability. There is a significant reduction in wasted inks, while water usage is minimized, and production speeds are increased. The technology allows set-up and lead times to be reduced as well as significant flexibility in production schedules, while eliminating the need for large thread inventories.

“Our system is allowing customers to achieve color effects that have never been seen before – and at a new level of efficiency,” says VP of Sales and Marketing at Coloreel, Mats Sjögren. “We are setting the new benchmark for the embroidery industry.”

Despite the Covid-19 pandemic, Coloreel, has recently successfully delivered units to companies in Europe, the United States and Asia, and has also partnered with the world’s largest distributor of embroidery machines, American Hirsch Solutions, which has already installed the technology at a number of customers in the USA.

imogo
Another TMAS member achieving rapid progress is imogo, which is currently installing its first industrial scale Dye-Max spray dyeing line at the plant close to Borås of Swedish commission dyeing company 7H Färgeri – the Nordic region’s most complete dyeing and processing plant.

The new line has a working width of 1.8 meters with an operating speed of up to 50 meters for the reactive dyeing of cellulosic fiber-based fabrics. In addition, it can carry out the application of a wide range of fabric pre-treatments and finishing processes, providing the company with unbeatable flexibility in production.

A proven Mini-Max laboratory unit for pre-determining application volumes and color matching has also been installed at the 7H plant.

With the potential to slash the use of fresh water, wastewater, energy, and chemicals by as much as 90% compared to conventional jet dyeing systems, the DyeMax has gained considerable attention since the concept was outlined and a prototype machine constructed in 2019.

The application unit of the Dye-Max consists of a closed chamber containing a series of spray cassettes with precision nozzles for accurate and consistent coverage, in combination with the patented imogo Pro Speed valve that controls the volume to be applied.

“We are achieving an extremely low liquor ratio of around 0.5-1 liters per kilo of fabric and we fully control the pickup, applying precisely what is required to the specific fabric,” says imogo founding partner Per Stenflo. “Compared to traditional padders there is no contamination of the dyebath or dilution of the dye liquor to worry about.”
Fast changeovers with virtually no waste, together with a high production speed, enable a high productivity and unmatched production flexibility.

“The Dye-Max will be implemented in 7H daily production and producers and brands are welcome to visit when the Covid-19 situation allows. They are also welcome to do test productions at 7H to verify the performance on their fabrics.”

Perfect bridge
“Such new digital technologies from TMAS members represent the perfect bridge for sustainable new fibers on their route to the finished garments of responsible brands on the retail shelves,” concludes Therese Premler-Andersson. “There is now a real momentum building industry-wide for new circular manufacturing, and TMAS companies intend to be very much a part of it.”

• CHIC Shanghai, March 17 to 19, 2021 (due to new regulation to control the infection rate)
• 905 exhibitors are present at CHIC
• Parallel: CHIC ONLINE as a digital platform with upgrade of the CHIC
• APP
• CHIC GARDEN: puts fashion and sustainability in the limelight

The CHIC spring event takes place from March 17th to 19th under strict hygiene guidelines in the National Exhibition & Convention Center in Shanghai parallel to Intertextile Shanghai, Yarn Expo and PH Value.

The Chinese economy has recovered again after the pandemic in China and already reached pre-crisis level with 6.5% growth in the fourth quarter of 2020. McKinsey estimates are a 5 to 10% growth in sales in China in 2021 compared to 2019. Thanks to good sales in China, the fashion luxury brands in particular have been able to improve their sales figures. But also regarding online trade, Chinese ecommerce sales were in first place worldwide for the eighth year in a row. The average per capita income of consumers rose by 3.8% last year.

905 exhibitors and 932 brands will present themselves on site at CHIC. Around 95,000 trade visitors from all retail areas, including all relevant online sales platforms, are expected. The CHIC's online and live streaming events, which run parallel to the trade fairs, have recorded an average of 150,000 clicks on each show since April last year.

CHIC Garden
China is to become climate neutral by 2060, which of course also affects the fashion sector. Overall, the awareness of Chinese consumers has developed even more towards high-quality, sustainable collections. In their "State of Fashion 2021" report, McKinsey & BoF analyze the awareness development in China that consumers and producers are increasingly recognizing the importance of joint efforts by all participants in the value chain to work together in order to achieve sustainability in the fashion industry.

The CHIC flagship event visualizes this topic with the "CHIC Garden" theme. With the help of garden design experts, the fair is transformed into an inspiring garden paradise that reflects closeness to nature and the appreciation of natural resources.

As an exception, the CHIC autumn event, CHIC Shanghai will take place in August this year (25th to 27th August 2021).

Lectra announces its plan to acquire the entire capital and voting rights of US-based Gerber Technology. A key Industry 4.0 player in the fashion, automotive and furniture industries, Lectra designs smart industrial solutions – software, equipment, data and services – that help brands, manufacturers and retailers develop, produce and market their products.

The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations. After the French work council of Lectra is consulted and the binding documentation is signed, completion of the acquisition shall remain subject to merger control clearance and other customary conditions and shall be submitted to Lectra shareholders for approval.

The proposed combination would occur at an opportune time for both companies and their customers. The current uncertain economic climate and unprecedented challenges that fashion, automotive and furniture companies are facing due to the COVID-19 pandemic make it more important than ever for them to transform, digitalize and optimize their operations.

For over 50 years, Gerber Technology has used its proprietary technologies and deep domain expertise to provide integrated software and automated hardware solutions to companies around the world, including over 100 Fortune 500 companies in 134 countries.

The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions. Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.

Consolidating the two companies’ research and development capabilities will enable the combined company to accelerate development of Industry 4.0 technologies and help its expanded customer base seize the full potential of these innovations.
Integrating the technology of the two companies will endow them with the resources to anticipate and address rapidly changing market conditions.

Key transaction terms

Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of 175 million euros – through a combination of cash and debt – plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder. This would represent a total amount of about 300 million euros based on Lectra’s closing share price on February 5, 2021. No contingent consideration is contemplated.

Gerber Technology’s revenues was 165 million euros in 2020.

Thanks to the strong value creation deriving from significant synergies, Lectra expects the transaction to be accretive for shareholders from 2022.

Upon closing, Daniel Harari would own c. 14.6% of the Lectra shares and AIPCF VI LG would own c. 13.3%.

Lectra’s Board of Directors would welcome a director representing AIPCF VI LG.

Daniel Harari would continue to be the Chairman and Chief Executive Officer of Lectra. Gerber Technology Chief Executive Officer, Mohit Uberoi, would assume special advisor to Daniel Harari role until end-2021.

Lectra’s shareholders would be invited to vote on the issuance of the 5 million new Lectra shares reserved to AIPCF VI LG at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021. A report containing additional information will be made available to the shareholders prior to the Extraordinary Shareholders’ Meeting.

Lazard is acting as exclusive financial advisor to Lectra, and Latham & Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes & Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

2020 results, update on the 2020-2022 strategic roadmap and guidance for the coming years will be disclosed on February 10, 2021.

Lectra management will discuss the transaction, provide forward-looking guidance for the combined company upon closing of the transaction and answer questions from the financial community during the February 11, 2021 webcast Analyst Conference meeting in French starting at 8:30 am (CET - Paris).

Summer 2020 saw the first ever staging of PREMIUM+SEEK Passport by JOOR. In the midst of the pandemic, it offered the industry an opportunity to continue doing business, stay in contact with key partners, and expand business networks. Over 150,000 retailers took part in the event in 2020 and 40,000 products were sold.

The second edition of the PREMIUM+SEEK+JOOR Passport event will be an optimised and focussed version and offers participants maximum opportunity for success. From 27 January around 100 brands curated by the team at the PREMIUM GROUP will once again have access to JOOR’s network of over 200,000 selected international retailers. Virtual showrooms will act as the location for showcasing the latest collections, telling brand stories and closing deals. Every showroom can be individually designed by participating brands so as to stage and communicate their brand identity in a purely digital setting. Accessible at any time, without time-consuming logistics.

The partnership between the PREMIUM GROUP and JOOR is due to continue in July 2021. In future, there will be a hybrid event where the physical and virtual worlds will go hand in hand. Face-to-face is still essential and now more important than ever. Networking becomes easier and more effective; stories are told and emotions triggered. Processes that follow are digitally optimised with JOOR and handled more easily than before.

In summer 2021 there will be a return to a physical coming together with SEEK, PREMIUM and FASHIONTECH. From 6-8 July – as part of Frankfurt Fashion Week.