From the Sector

• Significant recovery in order intake in third quarter 2020
• Order intake of CHF 425.1 million after nine months
• COVID crisis management in place
• Continuous implementation of the strategy
• Outlook 2020

The market recovery, which Rieter reported in June 2020, has continued. This is reflected in capacity utilization at spinning mills worldwide, which Rieter monitors. In April 2020, the proportion of producing spinning mills was around 40% while at the end of September 2020 this was around 90%. Against this backdrop, the Rieter Group increased order intake in the third quarter of 2020 to CHF 174.4 million (2nd quarter 2020: CHF 45.7 million). In the first nine months of 2020, the Rieter Group achieved a cumulative order intake of CHF 425.1 million (2019: CHF 524.5 million). Compared to the previous year period, this represents a decline of 19%.

Order Intake by Business Group

Due to the positive development in the third quarter of 2020, order intake at the Business Group Machines & Systems reached a total of CHF 234.5 million in the first nine months. The reason for the relatively small decline of 8% compared to the previous year is that the new machinery business was already characterized by investment restraint in the first three quarters of the year 2019. The Business Group Components recorded a reduction of 33% to CHF 116.6 million while the Business Group After Sales posted an order intake of CHF 74.0 million, a decrease of 23%. This illustrates the effects of low capacity utilization at the spinning mills, especially in the second quarter of 2020 as a result of the COVID-19 pandemic. The order backlog as of September 30, 2020, was around CHF 515 million (September 30, 2019: CHF 285 million). Cancellations were in the normal range of around 5%.

COVID Crisis Management in Place

Rieter has quickly implemented comprehensive COVID crisis management. Priority is being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide and the order backlog is being processed largely as planned. Rieter has introduced 40% short-time working in Switzerland and Germany for the second half of 2020. Similar measures were implemented worldwide within the scope of the available legal options. As of September 30, 2020, Rieter had liquid funds of CHF 216.7 million and unused credit lines in the mid three-digit million range in order to ensure liquidity. At the end of September 2020, net debt of CHF 1.2 million was disclosed.

Continuous Implementation of the Strategy

In recent years, Rieter has consistently implemented the strategy with the focus on innovation leadership, strengthening the business on the installed base and optimization of the costs. The company intends to forge ahead with the strategy in the coming months in order to strengthen the market position for the time after the COVID-19 pandemic. The Rieter CAMPUS is an important element of Rieter’s innovation strategy. Depending on the business situation, construction work is due to begin in the first half of 2021.

Outlook 2020

As already announced, in terms of sales and profitability Rieter expects a stronger second half of the year compared to the first half of 2020. Nevertheless, due to the deferral of deliveries by customers, Rieter will also conclude the second half of the year − and thus the full year 2020 − with a net loss. Due to the existing uncertainties, it continues to be difficult to forecast sales and profitability for the second half of 2020. For this reason, Rieter refrains from providing more specific information for the full year 2020.

With the PFAFF 4520, engineers and technicians from PFAFF have designed a full-automatic production line (CE compliant) for processing multi-layer disposable masks, which meets the requirements of "German engineering" in a unique way. The product combines 150 years of expertise in joining textile materials and a concentrated know-how of the PFAFF INDUSTRIAL and KSL brands in the areas of process control, automation and robotics.

The PFAFF 4520 is an investment in a robust and sophisticated production line (MADE IN GERMANY) with an exceptionally reliable working process. In times of Covid-19 it is so important to rely on the right equipment for the mask production and avoid costly readjustments or an unnecessary second investment!

Key facts of the unit:

-    Size of the mask: 175 x 95 mm
-    Output:  3,500 – 4,000 masks per hour
-    1-, 2- or 3 ply processing  (Non-woven/filtration fabric)
-    SPS (PLC) control of the entire mask system
-    Exceedingly quiet working process of the whole unit
-    Ultrasonic welding components from German manufacturers
-    Protective housing for occupational safety of the operator
-    Packing station + printing station for personalized masks (on request)

The machine package also includes important features in the pre- and after sales:

PFAFF technicians ensure the adjustment of the desired customer material (non-woven or similar filter material) and the number of layers (1-, 2-, 3-ply) to the machine and make a "Ready to production" installation of the whole unit at the customer.  A fast service response time in after-sales (by involvement of the PFAFF sales- and service partner on site) ensures a maximum production output.

Asia’s leading trade platform for the home and contract textile industry, Intertextile Shanghai Home Textiles, is ready to welcome over 600 exhibitors to China’s commercial hub from 24 – 26 August. As China’s economy continues its recovery, the upcoming fair will serve as a key platform for the industry to reconnect and prepare for the seasons ahead. Taking consideration of current international travel restrictions, Intertextile has launched a brand new online business matching platform, enabling participation for those who cannot travel to Shanghai.

Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd commented: “2020 has been a difficult and unpredictable year for every business and industry across the world, so we are pleased to be providing a platform for the home textile industry to connect and recover from the coronavirus pandemic. Intertextile Shanghai Home Textiles is the first physical trade event for the sector held by Messe Frankfurt since January, so we hope that the fair assists the sector to join forces and overcome this challenging year together.”

Ms Wen continued: “Our first priority is to create a clean and hygienic space for all participants to source and network. To achieve this goal, the fair will implement extra health care and hygiene precautions onsite. On the other hand, we are aware that a number of travel restrictions are still in place across the world. With this in mind, Intertextile will offer a series of online services for those who are unable to travel to Shanghai, allowing the fair to reach as wide an audience as possible.”

2020 fair highlights

To provide buyers with greater efficiency, the fair, which covers four halls, will be divided clearly by product categories: Household Hall (hall 3), International Brands / Upholstery Hall (hall 4.1), Brand Fabrics Hall (hall 5.1) and Sofa Fabrics Hall (hall 6.1).

In addition, the Contract Business 360° concept will return this year, with over 40 premier upholstery exhibitors presenting their latest textile products and furnishing solutions for contract use. Exhibitors include Guangzhou Yuanzhicheng Home Textile, Haining Julai Textile, JAB, Morgan Shanghai, Symphony Mills, Suzhou Roufang, Ter Molst International, Zhejiang Hexin and Zhejiang Maya Fabric. Furthermore, top brands such as Agmamito from Poland and Wollsdorf Leather from Austria will be exhibiting for the first time at Intertextile.

Online business matching platform offers new sourcing landscape

Although face-to-face interaction is irreplaceable, a virtual complement has become more important as a result of the worldwide pandemic. To support the industry during these unprecedented times, Intertextile has launched a brand new online business matching platform. With this free service, participants are able to source and network at their fingertips. The virtual platform will offer many new features including:

• Easy sourcing: exhibitors are categorised by product groups including Sofa / Decorative Fabrics, Curtains and Accessories, Bedding and Finished products, Shading and Accessories, and Editors
• Live-streamed product presentations of exhibitors
• Smart recommendations: pre-selected exhibitor lists will be provided to buyers based on their personal preferences and interests
• Convenience: participants are able to use the service through computers or portable devices without the need to download any software

High quality fringe programme covers comprehensive topics
 
The fair’s event programme will once again provide the industry with the latest trends and insights in four topics: Design Inspiration, Business O2O, Textile & Technology and Industry Empowerment. One of the highlights will be the 2021 Intertextile Trend Forum, led by Shen Lei, the Chinese representative of the Intertextile International Lifestyle Trend Committee. The forum will bring together five prominent Chinese designers including Ben Chen, Ben Wu, Meng Ye, Paul Pang and Xie Ke, who will delve into the theme of 2021 Intertextile Trends–“BOUND”, as well as the Chinese market conditions. The event will be held on day 1 of the fair, from 14:00 – 17:00 in hall 5.1 booth C18, and streamed live online.

Another not-to-be-missed event is the Ride the Storm – Home Textile Digital Printing Forum, which will include an array of educating seminars that cover the latest digital textile printing trends and technologies. The forum will be held on day 2 of the fair, from 13:20 – 17:20 in hall 3, booth M12.

Furthermore, joining forces with Tmall Global, the largest cross border B2C online retail platform in China, the fair will host a series of seminars delivering the solutions and strategies for industry digitalisation during the afternoon of day 1. In addition, the well-received Furniture & Home Textile Direct Negotiation Event will return to provide an excellent opportunity for furniture companies and fabric brands to collaborate.

Additional health care and hygiene precautions will be in place

As trade fair co-organisers, Messe Frankfurt’s number one priority always remains the health and safety of fairgoers. To maintain a clean and hygienic environment for visitors and exhibitors to meet in, extra measures will be in practice at the fair. These include: real-name registration, onsite temperature checks, frequent sterilisation of public areas and distancing measures for forum / seminar audiences, amongst others.

• Si-Quat by AFFIX Labs is a versatile anti-viral surface treatment that has been scientifically proven to last for months on any surface or textile while effectively killing the COVID-19 pathogen upon contact.
   

Helsinki - Leading chemical binding expert AFFIX Labs has harnessed its global experience in disease prevention to create the first long-lasting surface treatment proven to kill COVID-19. Si-Quat combines a safe and well-established disinfectant and a proprietary chemical binding technique, so that the active ingredient can kill viruses, including SARS-COV-2. Testing at Portugal’s Biochemistry Institute at the University of Lisbon proves that Si-Quat effectively kills the COVID-19 pathogens that it comes into contact with.

“Tragedies have unfolded across the globe, affecting different countries at varying degrees. The second waves of COVID-19 are just appearing on the horizon. This long-lasting surface treatment is a viable, accessible solution across cultures. By killing the COVID-19 pathogen on surfaces before it can infect people, the Si-Quat solution is a game changer. It can provide increased security and peace of mind to your communities, as well as your customers,” says Tom Sam, CEO of AFFIX Labs.

Si-Quat has been tested to kill 99.99% of microbes within minutes, while still being fully safe to touch. Proven to be effective for about a month on frequently touched surfaces, it is the longest lasting anti-viral surface treatment available to reduce the spread of the novel coronavirus. The product is non-corrosive, free from silver salts and heavy metal nanoparticles, and perfectly safe to touch.

Several major agencies around the globe have already accepted quaternary ammonium, the main ingredient in the surface coating, to be an effective surface treatment against the novel coronavirus, including the World Health Organization (WHO), the US Environmental Protection Agency, the American Chemistry Council (ACC) and the European Chemical Agency (ECHA).

Si-Quat was invented in January 2020 by the AFFIX Labs’ Repeltec development team to specifically help combat the COVID-19 outbreak. The product is based on the trusted and safe disinfectant quaternary ammonium, which is chemically bound to align silane quaternary ammonium molecules (silane quats) in a highly effective manner. Positively charged nitrogen particles then actively attract viruses and bacteria, penetrating the membranes and killing them within minutes.

Rigorous testing has shown Si-Quat to adhere to almost any surface, performing as the most durable surface treatment commercially available. Due to its incredibly strong layer, the solution only wears down on surfaces after thousands of touches or multiple cleaning cycles. This means that on heavily used surfaces, such as door handles and counters, Si-Quat will be effective for about a month. On rarely touched surfaces like walls, it has the potential to protect for years. Since the product is incredibly easy to apply, technicians require minimal training and only basic protection. They simply have to brush or spray Si-Quat onto the surface and allow it to dry for 6 hours.

“Other sanitising solutions require reapplication to every surface several times daily, interrupting business operations. This results in additional costs and disruptions at a time when many companies are already struggling,” Sam explains. “By combining proven efficacy, safety and long durability, Si-Quat is emerging as an important weapon in the battle against the spread of COVID-19.”

AFFIX Labs has begun to roll out the distribution of Si-Quat across the globe, with new regions being serviced every week. It is currently looking for distribution partners in local markets.

The project leading to the development of Si-Quat included funding from the European Institute of Innovation and Technology, a body of the European Union, under the Horizon 2020 Framework for Research and Innovation.

• Live Event Series Launched to Connect with Customers and Drive New Opportunities After COVID-19

Mimaki Europe, a leading manufacturer of inkjet printers and cutting systems, has announced it will host a three-part virtual event series – Mimaki Live Series – to support customers looking for inspiration and advice on how to maintain or revive business after the COVID-19 crisis.

Building on the success of Mimaki’s Virtual Print Festival in March and April this year, Mimaki has created an exciting and insightful three-day programme for three market-focused virtual events:

• Event I – Sign Graphics – 30th June 2020
• Event II – Textiles – 14th July 2020
• Event III – Industrial Printing - 27th August 2020

Each event will provide a platform for Mimaki representatives, customers, and suppliers to discuss the impact the COVID-19 crisis has had on their business and the wider industry, as well as share their experiences, challenges, and success stories.

The Mimaki Live events will feature a host of engaging panel discussions, opinion polls, live chats and Q&As, all designed to prompt important, topical discussions and share information and advice across the print community.  

To register for the Mimaki Live event series, please visit www.mimakieurope.com/mimaki-live-event.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement, urging the government to institute Buy American policy changes to help bolster U.S. manufacturers producing personal protective equipment (PPE) for frontline workers battling the COVID-19 pandemic.

“If the government is sincere about reconstituting a U.S. production chain for medical personal protective equipment (PPE) to resolve the drastic shortages we are experiencing during the current pandemic, it is going to have to make key policy changes to help incentivize domestic production. A strong Buy American mandate for these vital healthcare materials needs to be instituted for all federal agencies, coupled with other reasonable production incentives, to help ensure a strong U.S.  manufacturing base for these essential products.

Our government already has an existing example of such a mandate that serves as an excellent model. The U.S. Department of Defense operates under a fiber-to-finished product Buy American rule for military textiles. This rule ensures that the vital textile materials our U.S. warfighters depend upon, come from a secure domestic production chain that cannot be severed during a military emergency by offshore entities.

There is a bipartisan call for action as members of Congress on both sides of the aisle have begun to acknowledge the need for these types of reasonable and essential policy changes.

Anything short of fully instituting domestic purchase requirements through Executive Order and other legislative initiatives will ensure that PPE production through U.S. supply chains that have been created overnight don’t evaporate as soon as this crisis is over.  

In the midst of the crisis, our failure to confront this challenge will allow for a repeat of the sins of the past that allowed sourcing agents to offshore the entire production of medical PPE in search of lucrative profits. While chasing the lowest cost import may have seemed cost effective at the time, these past few months have demonstrated that we paid a deadly price through this approach by jeopardizing the very lives of frontline medical personnel that are fighting the pandemic.   

This is a national security issue. It’s also a vital healthcare issue and it is decision time for U.S. policymakers. If our country is to be prepared for future deadly pandemics such as the one it is now facing, reasonable policy changes need to be implemented to ensure that we strengthen our domestic supply chain to address America’s security, safety and healthcare requirements.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today, voicing concern over the administration’s executive order instituting a non-reciprocal 90-day deferral on certain tariffs.
The temporary postponement of duties does not apply to products with antidumping or countervailing duties or those products subject to penalty duties under Section 232, 201 and 301.

“At a time when domestic textile producers and its workforce have mobilized to transform their production lines to manufacture the personal protective equipment (PPE) supplies for frontline healthcare and medical workers fighting the COVID-19 pandemic, the administration’s decision to defer duties for 90 days on the vast majority of products imported into the United States is counterproductive.
This move contradicts the administration’s top stated priority of rebuilding American manufacturing and buying American and could have severe negative implications for the entire U.S. textile industry, whose companies and workforce already are facing enormous economic hardship.
We support the need to temporarily eliminate barriers to the entry of emergency medical supplies and certain PPE inputs tied directly to the COVID-19 response. But make no mistake, the key drivers behind efforts to defer tariffs have nothing to do with facilitating access to PPE products or stopping the spread of COVID-19.
Our industry is being asked to do extraordinary things.  We are heeding that call, but we need help to ensure the supply chains we are creating overnight don’t evaporate tomorrow.  We need strong procurement policies and additional funding for our industries to ramp up and retool – not further measures that incentivize offshore production. We need to maximize the U.S. domestic production chain right now to every extent possible in helping fight COVID-19 and make the products American frontline workers desperately need.  

We need to provide immediate and substantial relief to our manufacturing sector and their workforce who are suffering enormously right now. It’s critical that we have a long-term U.S. government plan to ensure that we aren’t relying on offshore producers to make medically necessary, live-saving PPE.  We shouldn’t be providing handouts to reward the very companies that helped offshore these industries so many years ago.

Tariffs are one of the few mechanisms in place to help partially address the challenges U.S. manufacturers face in competing with imports from countries with exceptionally low wages, poor working conditions, and minimal environmental and safety standards.”, states the NCTO.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today in response to the administration’s plan to institute a 90-day deferral on MFN tariffs,  as reported by numerous press outlets.

The reported plan being pushed by the importing and retailing industries would defer certain tariffs, including those on finished apparel products. It is an ill-advised policy that will hurt the U.S. textile industry at the very time it is answering the call of the nation to produce medical supplies to battle the coronavirus pandemic. 

These unnecessary tariff concessions would benefit importers and retailers at the direct expense of manufacturers on the front lines of the COVID-19 response and send a demoralizing message.

Tariff deferrals would severely exacerbate ramifications for the U.S. economy, manufacturers and workers and open the floodgates for imports.

If the U.S. government makes tariff concessions during this crisis, it will be inviting a virtual tsunami of imports further devastating domestic manufacturing as it attempts to regain its footing.     

We urge the administration to abandon any moves to defer tariffs on finished products. It would only serve to allow importers to exploit the current crisis, while dealing a severe blow to U.S. manufacturing and its workers.  

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

• U.S. employment in the textile supply chain was 585,240 in 2019. 
• The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
• U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
• Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

Rejects Importer Attempts to Remove China 301 Tariffs on Finished Products

The National Council of Textile Organizations (NCTO), representing the full spectrum U.S. textiles from fiber through finished sewn products, issued a statement today welcoming the Trump administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak, but the organization urged officials to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.

As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on Sept.1 from 15 percent to 7.5 percent. Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in the sector; while fiber, yarn, and fabric imports from China only represent 6.5 percent, according to government data.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

• U.S. employment in the textile supply chain was 594,147 in 2018.

• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.

• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.

• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.