From the Sector

• Performance Days - November 28 and 29, 2018 – Hall C1 Booth B18
• Two of TINTEX’s fabrics have made it into the PERFORMANCE FORUM Jury’s Pick Category that represents fabrics which are a valuable contribution to this season Performance Days Focus Topic “WATER – OUR RESPONSIBILITY”

See, touch and experience the latest collection from TINTEX as they reveal a wonderful range of innovative fabrics that redefine fashion, inspire creativity, spark emotion and optimize responsible solutions. TINTEX, being an ingenious leader in textile and research innovation for over twenty years, transforms a new generation of cotton and other natural based materials. Established in the Porto region as authorities in superior dyeing and finishing techniques making TINTEX Textiles the perfect choice for fashion.

All the recent awards bestowed, demonstrate TINTEX continue research and commitment. They have been awarded for the Best product of the Base Layer Category by ISPO jury, moreover they have just received the prestigious German Design Awards 2019 and last but not least, they are selected as finalists for the Future Textile Awards in the category Best Innovation for Sustainable Textiles.
TINTEX continues to lead the way, as they proudly take part in the Make Fashion Circular initiative, by the Ellen MacArthur Foundation and activate change industry wide. This initiative aims to collaborate and innovate towards a new textile economy based on the principles of a Circular Economy.

In addition, since this November, TINTEX is a bluesign® system partner, thus means that they are responsibly acting parties of the textile value chain committed to applying the bluesign® system, continuously improving their environmental performance and always been focused on a sustainable future.

A milestone for TINTEX and fashion, as they launch Naturally Clean - an exceptional smart finishing process that is uniquely responsible. Naturally Clean enhances the natural beauty of cotton, takes a cost effective modern approach to eliminate aggressive treatments and optimizes clean surfaces, vivid colors, providing an exquisitely smooth handfeel. Naturally Clean achieves this by using Novozymes technology, a company that is indeed the world leader in biological solutions. Second, using textile chemicals with the lowest possible environmental impact, without compromising performance, from Beyond Surface Technologies AG. Naturally Clean maintains the original characteristics for an extended period of time. All materials are Oeko-Tex and soon bluesign® certified, thus eliminating harmful substances.
TINTEX’ Autumn/Winter 2019/2020 collection includes vibrant tones, refreshing turquoise and electric green, light and warm copper with chocolate browns that connect the natural and spiritual in an extra-sensorial universe. Infused with a stunning palette of nostalgic and multicultural colors - warm yellow with darkened reds, dynamic purple with urban greys - that express globalization and human connection.
Key smart ingredients of the season are:

• A New Generation of Cotton: GOTS certified organic cotton, Supima® cotton, and ECOTEC® by Marchi & Fildi the smart cotton that saves up to 77.9% water consumption and introduces the concept of a circular economy.
• SeaCell™ and Smartcel™: produced using the Lyocell process in a closed loop with no chemicals released as waste. The patented process of SeaCell™ allows that the positive properties of the seaweed are permanently preserved within the fiber, even after multiple washing cycles. Smartcel™ includes the essential trace element zinc providing anti-inflammatory capabilities.
• REFIBRA™ by Lenzing technology involves upcycling a substantial proportion of cotton scraps e.g. from garment production, in addition to wood pulp, where the raw material is transformed to produce new TENCEL™ Lyocell fiber to make fabrics and garments.
• Bemberg™ by Asahi Kasei: A new generation GRS Certified material, made from cotton linters, with a biodegradability certification by Innovhub. A matchless, high tech natural material, with a special handfeel and aesthetics.
• ROICA™ by Asahi Kasei
  - ROICA™ EF has a percentage of pre-consumer recycled content that is more than 50%, and thanks to this it has been GRS (Global Recycled Standard) certified.
  - ROICA™ V550 a premium stretch innovative yarn boasting the Cradle to Cradle Certified™ Gold Level for Material Health product and ingredients as it was evaluated throughout the supply chain for lower impacts on human and environmental health. Striving toward eliminating all toxic and unidentified chemicals for a safe continuous cycle. Hohenstein Environment Compatibility Certificate - ROICA™ proudly breaks down without releasing harmful substances.

Of special interest this season, the two TINTEX’s fabrics that made it into the PERFORMANCE FORUM Jury’s Pick Category for their contribution to this season Topic “WATER – OUR RESPONSIBILITY”.

A smart rib developed to reduce the water usage as most as possible, from cultivation of raw materials until fabric finishing. A blend of TENCEL™ Modal, cellulosic & biodegradable material treated with no hazardous chemicals, pesticides nor fertilizers, and European hemp, a fast-growing plant that requires very little water and no herbicides, pesticides, synthetic fertilizers or GMO seeds. Both fibres are biodegradable.

The second selected article is a 100% Merino Wool jersey made unique thanks to Colorau® by TINTEX, a patented natural dyeing process technique that uses vegetable herbs and extracts. A great amount of water was saved by avoiding subsequent washing steps. Also, lower water pollution is achieved by avoiding synthetic dyestuffs.

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.

Archroma, a global leader in color and specialty chemicals, will be presenting its innovative and sustainable denim solutions for manufacturers and brands at DenimsandJeans Vietnam 2018, on June 27 and 28.
From fiber to finish, Archroma offers a scope of possibilities for effects and colors, from the authentic roots of indigo to the most innovative and eco-advanced solutions. Archroma is a recognized leader in integrated solutions, offering best-in-class auxiliaries for bespoke process packages.
Visitors will be able to discover solutions designed to make denim in a more sustainable and responsible way, in particular:
DENISOL®, BRINGING INDIGO BACK TO ITS ROOTS - NOW ANILINE-FREE*
Archroma’s Denisol® range is a newly developed pre-reduced liquid indigo solution that is manufactured in Archroma’s award winning ‘zero liquid discharge’ manufacturing plant in Pakistan.

• Denisol® Indigo 30 liq is compliant with major official eco-standards and requirements from retailers, brands and fashion leading companies and helps to produce fabrics suitable for current eco-labeling such as bluesign® and GOTS.
• Responding to demands for a non-toxic alternative to the dyes that are used for the iconic and traditional indigo blue that consumers associate with denim and jeans, Archroma just announced the upcoming new Denisol® Pure Indigo 30.

ADVANCED DENIM, TOWARDS WATERLESS DENIM DYEING
Consider this: The water needed to produce one pair of jeans is said to be ~ 11'000 liters(1). With approximately 167 million pairs of jeans produced monthly(2), that is 1,837,000,000,000 liters of water consumed every month in the process! Based on the Denim-Ox and Pad/Sizing-Ox dyeing processes, Archroma’s multi-awarded ADVANCED DENIM, dyeing technology allows savings of up to 92% in water, 87% in cotton waste and 30% in energy, compared to a conventional denim dyeing process.
The technology has been adopted by brands like Patagonia and received the prestigious 2012 ICIS Innovation Award and Innovation with Best Environmental Benefit Award.

• Optisul® C, “soft colors” made easy
  Colors other than blue have been tricky to achieve in the past. With Optisul® C dyes, denim manufacturers can expand their color horizons with this range of six dyes especially designed to produce soft denim colors in continuous dyeing processes, as well as on coating and printing. Optisul® C affinity-free, sulfide-free dyes can easily be combined with each other to create garments suitable for wash-down treatments in a wide array of easily achievable and reproducible soft colors. They are suitable for GOTS and bluesign® approval.
• Diresul® RDT Ocean Blues, ocean-themed bright sulfur blue dyes
  Archroma’s Diresul® RDT Ocean Blues are a collection of vibrant, ocean-themed bright sulfur blue dyes. These best-in-class dyes and their auxiliaries bring out the best of indigo, improve workability, dyeing consistency and process safety.
  They can be combined with Denisol® Indigo 30 liq in bottoming/topping manufacturing routes for avant-garde blue styles. At the booth, Archroma will display an “illustration collection” of exciting indigo casts.
• Diresul® blacks & greys, a universe of greys and deep black and navies.
  Archroma’s dye portfolio of conventional and black Diresul® specialties allow to create a universe of greys and deep black and navies. From superficial to solid blacks for both extreme wash-down and stay black effects.

EARTHCOLORS, TRACEABLE FROM NATURE TO FASHION
As consumers increasingly aspire to functional, beautiful and meaningful clothing, brands and manufacturers are increasingly interested in the environmental impact of the denim industry. Archroma has placed sustainability at the heart of its innovation process to create products and processes that improve the industry’s sustainability.
The EarthColors patented range of “biosynthetic” dyes for cotton and cellulose-based fabrics, which are made from waste left over by the agricultural and herbal industry after extraction, such as almond shells, saw palmetto, or rosemary leaves. The latest NFC technology used on the end-product hangtags enables transparency and traceability through the supply chain to consumers.
The EarthColors allow to produce the earth tones that are coming strong: red, brown and green colors. They have been adopted by brands such as Patagonia, Kathmandu and G-Star, and won an OutDoor Industry Award 2017.

SOLUTION PACKAGES FOR SUSTAINABILITY
Brand owners and retailers around the world are taking action to evaluate the environmental impact of textile treatment, dyeing and finishing processes in response to consumer concerns.

Archroma recently introduced the ONE WAY Process Simulator, the last update of a calculation tool that supports its ONE WAY Sustainability Service introduced back in 2012. The new, online software can be used to mimic and compare products and processes, and thus calculate the ecological and economical profile of the final end-product.
Archroma’s portfolio of ZDHC MRSL-compliant chemicals and dyes is integrated into the ONE WAY calculation tool since 2013.
“Innovation and sustainability go hand in hand,” says Paul O’Prey, Head of Sales, Brand & Performance Textile Specialties, Archroma, Vietnam. “While developing new products and services, we always consider the environmental impact so they are as sustainable as possible. This can be seen in our innovative and eco-advance products, such as the water-saving ADVANCED DENIM and the aniline-free* Denisol® Pure Indigo.”

• Deep Insights into the Multifaceted World of Cotton
• Quality, Innovation and Digitalisation are Crucial

From the 21st to the 23rd of March, the international cotton industry came together in the historic Bremen Town Hall, under the motto "Cotton Insights". More than 500 participants from almost 40 countries came to exchange views on the latest trends in the natural raw material as part of the conference organised by the Bremen Cotton Exchange in cooperation with the Fibre Institute Bremen. The 34th International Cotton Conference provided a varied, in-depth programme which addressed the current and burning issues within the industry.

Summarising his visit to the conference, Kai Hughes, Executive Director of the International Cotton Advisory Committee (ICAC) in Washington said “The Bremen Cotton Conference is unique because it brings the diverse world of cotton together in one place. It is always a great opportunity to learn about the latest innovations, talk to cotton merchants and get an overview of the industry".

Sustainability and Cotton
This year, the conference developed into a whole week of diverse events around the entire cotton supply chain. With the “SUSTAIN” event, which was organised in cooperation with the Weser-Kurier newspaper, it was possible to build a bridge between the issue of sustainability and the end consumer.
With the focus on Africa, the emerging continent, which also has a special significance for cotton, became the centre of attention.

In his opening speech, Henning Hammer, President of the Bremen Cotton Exchange, made it clear that sustainability is also of great importance during the Cotton Conference: "The three pillars of sustainability – the environment, the economy and social issues – were already playing a role in the cotton industry when the word sustainability was far from being on everyone's lips.
Many changes that are being demanded in the sense of responsible agriculture and responsible trade take their time, many are already in the starting blocks and a lot already exists. We have a very alert, active agricultural research worldwide."

The Keynotes
The keynote session, moderated by the journalist Lisa Boekhoff from the newspaper Weser-Kurier, gave participants an overview, with an informative analysis of the current cotton situation. Kai Hughes, executive director of ICAC, emphasised in his keynote address the need to provide credible facts and figures which should be the basis for the entire supply chain. The marketing of cotton and changing consumer habits in a globalised and digitalised world were the subject of lectures by Mark Messura, Cotton Incorporated and Robert Antoshak, Olah Inc. Eugen Weinberg and Michael Alt from Commerzbank took a look at the raw material from a stock market perspective.

Traceability and Digitalisation
Digitalisation is also a cross-cutting issue that runs through the entire supply chain of the cotton industry. In his opening speech, Prof. Axel S. Hermann, Head of the Fibre Institute Bremen, emphasised the importance of digitalisation for the industry. “It enables new approaches in cotton cultivation and textile processing, but also influences consumer behaviour and thus the necessary changes in the textile industry.” The focus is on the status quo of the implementation, as well as the opportunities and risks of digitally controlled, vertically integrated procurement and sales processes and the associated challenges at retail level.

Another current topic is traceability, which is also closely linked to sustainability. More and more buyers want to know whether their suppliers are meeting the promised sustainability criteria for their products, also textile products. Consequently, the conference presented various techniques for testing the authenticity of a cotton provided in the finished textile, such as DNA testing, fingerprint analysis technique, marker methods and block-chain processes.

Cotton Quality
In addition to current subjects such as digitalisation and traceability, questions of cotton quality have traditionally been an essential element of the Cotton Conference, which was further reinforced this year with the "Spinners Seminar". The spinning mill seminar, which was carried out by the Cotton Exchange and the Fibre Institute in cooperation with the ITMF and IVGT associations, far exceeded expectations.

More than 70 participants discussed the handling of impurities in supplied cotton in the manufacturing process.
In addition, in a high-level expert session, there was an exchange of the latest research results which determine the future of cotton production and the processing of cotton into innovative products.

22. Februar 2018 – Zehn amerikanische Baumwollorganisationen haben dem Cotton Council International (CCI), für das Jahr 2018 die Unterstützungder Industrie für COTTON USA Aktivitäten zur Steigerung der Nachfrage für USA Baumwolle zugesagt. CCI ist der Exportförderungsarm des National Cotton Council (NCC) mit Hauptsitz in Washington, D.C.

„Unsere Farmer sind überzeugt, dass die Unterstützung von CCI eine Investition in die Zukunft unserer Industrie und maßgeblich für unseren Erfolg ist”, sagte Steve Verett, Executive Vice President von Plains Cotton Growers.

„Die Arbeit, die CCI leistet, stellt sicher, dass auch der Rest der Welt weiß, warum USA-Baumwolle ein Superior-Produkt ist, dessen Verwendung sich bezahlt macht. Die Tatsache, dass 80% der amerikanischen Baumwolle exportiert wird, legt dar, wie entscheidend ein gesunder Exportmarkt für uns ist.”

Die finanzielle Unterstützung der US-Baumwollproduzenten hilft CCI bei der Erschließung von Exportmärkten für US-Baumwollfasern, Garne und andere Baumwollerzeugnisse und bildet eine unschätzbare Ergänzung zu den Mitteln des USDA (Landwirtschaftsministerium der Vereinigten Staaten) aus dem Foreign Agricultural Service Market Access (MAP) Programm und aus dem Foreign Market Development (FMD) Programm. CCI ist der größte Empfänger von MAPund FMD-Mitteln zur Promotion von USA Baumwolle außerhalb der USA. Infolge der finanziellen Unterstützung durch das USDA und die USBaumwollindustrie gelang es CCI, die Nachfrage nach US-Baumwollexporten effizient zu steigern und so die wirtschaftliche Rentabilität von 18.500 Baumwollfarmern in den Vereinigten Staaten zu verbessern.

Unter seiner Marke COTTON USA™ promotet CCI die USA-Baumwolle in über 50 Ländern. Allein im letzten Jahr organisierte CCI auf seinen Veranstaltungen zur Exportförderung von USA-Baumwolle über 2.100 Meetings zwischen Lieferanten und Einkäufern entlang der gesamten globalen Lieferkette.

„CCI demonstriert anhand der hohen Qualität von USA-Baumwolle, ihrer Nachhaltigkeit und Transparenz, ihrem Premium-Wert und ihrer Innovationsstärke – warum USA-Baumwolle, die Baumwolle ist, der die Welt vertraut”, sagt Bruce Atherley, Executive Director des CCI.

„Ich glaube fest daran, dass jede Industrie ein eigenes Interesse daran haben muss, erfolgreich zu sein. Die Unterstützung der US-Baumwollindustrie ist entscheidend, um USA-Baumwolle zur bevorzugten Faser für die verarbeitende Vorstufe, für Hersteller, Marken, Einzelhändler und Verbraucher weltweit zu machen.“

Exportmärkte sind für die US-Baumwolle von entscheidender Bedeutung, da fast die gesamte in den Vereinigten Staaten angebaute Baumwolle entweder als Faser oder als Baumwollgarn exportiert wird. Die USA sind derzeit die weltweit führende Exportnation von Baumwollfasern mit 39% Weltmarktanteil, über drei Mal so viel wie jedes andere Anbauland. Im Geschäftsjahr 2016 führten USBaumwollproduzenten 18,4 Mio. Ballen Rohbaumwollfaser und Baumwolltextilien aus. 2016 war mit 14,9 Mio. Baumwollballen das zweitstärkste Jahr für USRohfaserexporte.