INTERNATIONAL
NATIONAL
The Yogi Adityanath government will set up a PM Mitra Mega Textile Park on 1,000 acres in Malihabad tehsil in Lucknow.The project will bring investment of Rs 10,000 crore and employment to around one lakh youth. According to the state government spokesman, the project will come up in Attari village, in Malihabad tehsil, on the outskirts of the state capital. Attari village has been selected keeping in view the connectivity of park with the rest of the city. The park will have industrial plots and industrial sheds.The project site is located 20 km away from NH-20 and SH-20, both of which are four-lane roads connecting Lucknow to Sitapur and Hardoi, respectively. The park will be developed on a public-private partnership (PPP) model. Under this plan, infrastructure worth Rs 500 crore will be constructed. A provision of Rs 300 crore has been made for manufacturing units based on a first-come, first-served basis.Common infrastructure at the park includes road network, 24/7 power supply, water supply, warehouses, zero liquid discharge effluent treatment plant, training and skill development facilities, administrative building with product display facility andexhibition centre with testing laboratory. Other highlights of the park will be workers' hostels, housing zones, medical facilities, commercial and recreational facilities, open spaces and parks and security arrangements.
Source: The Deccanherald.com
Known for its mango orchards, Malihabad will be home to PM Mitra Mega Textile and Apparel Park soon. Officials in the state industries and infrastructure department said that land for the same has been identified in the Atari village of Malihabad block. "The state government is expecting an investment of Rs 10,000 crore in the proposed park which will be equipped with state-of-the-art facilities to match global standards and beat competition," said an official spokesperson, adding, "Once in place, it will provide employment to one lakh youths." Officials said that Atari has been chosen because of its prime location and connectivity. "Attari village is about 20 km away from NH-20 and SH-20, both of which are four-lane roads connecting Lucknow to Sitapur and Hardoi, respectively. Furthermore, there is also a 20-km outer ring road with six lanes," they said. The park also has good railway connectivity, with Malihabad railway station located 16 km away and Lucknow railway station 40 km away. Moreover, the Lucknow International Airport is 45 km from the park, while the dedicated freight corridor is 95 km away at Kanpur node and the inland container depot is 111 km away in Kanpur. Officials said that the proposal is to develop the park on a public-private partnership (PPP) model. Under this plan, core infrastructure worth Rs 500 crore will be constructed while a provision of Rs 300 crore has been made for manufacturing units based on a first-come, first-served basis. The park's construction has been divided into three parts to provide cutting-edge facilities: common infrastructure, social infrastructure and premium space. The common infrastructure includes road networks, 24x7 power supply, water supply, warehouses, zero liquid discharge effluent treatment plant, training and skill development facilities, administrative building with product display facility and exhibition centre with testing laboratory and so on. The social infrastructure includes workers' hostels, housing zones, medical facilities, commercial and recreational facilities, open spaces and parks, security arrangements and so on. Similarly, the premium space consists of industrial plots and sheds.
Source: Times of India
India and the European Union (EU) on Monday asked the WTO's dispute settlement body not to adopt a ruling against New Delhi's import duties on certain information and technology products till September 19 as both sides are engaged in bilateral talks to resolve the matter. In a communication to the World Trade Organisation (WTO), both regions have called for a special meeting of the WTO's dispute settlement body (DSB) on June 15. For that meeting, they urged the DSB not to adopt the WTO's dispute settlement panel's ruling of April 17, which stated that India's import duties on certain information and technology products are inconsistent with the global trade norms. "We consider that the draft DSB decision (as provided by India and the EU) if adopted, would facilitate the resolution of the dispute," the communication said As per the rules of the WTO, the panel's ruling will have to be adopted by the DSB for implementation within 60 days of the release of the order. According to the draft decision submitted by the two regions for the body: "The DSB agrees that, upon a request by the European Union or India, the DSB shall no later than 19 September 2023 adopt the report of the Panel in the dispute India - Tariff Treatment on Certain Goods in the Information and Communications Technology Sector of 17 April 2023". The development assumes significance as India and the EU are negotiating a free trade agreement. The next round of talks for the proposed pact is scheduled from June 19-23 here. So far, four rounds of talks have happened. In its report, the dispute panel of WTO on April 17 said that import duties imposed by India on certain information and technology products violate global trading norms. The ruling followed a dispute filed by the EU, Japan and Taiwan against these duties in WTO. On April 2, 2019, the EU challenged the introduction of import duties by India on a wide range of ICT products, for instance, mobile phones and components, base stations, integrated circuits and optical instruments. The EU had claimed that the measures appear to be inconsistent with certain provisions of WTO. Later, Chinese Taipei and Japan also joined the dispute. According to WTO rules, a member country can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of WTO. Bilateral consultation is the first step to resolving a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach the establishment of a dispute settlement panel. The panel's ruling or report can be challenged at WTO's appellate body. Interestingly, the appellate body is not functioning because of differences among member countries to appoint its members. Several disputes are already pending with this body. The US has been blocking the appointment of the members.
Source: Economic times
Four industries have taken up land in Indore region proposing an investment of more than Rs 250 crore in Indore region, according to Madhya Pradesh Industrial Development Corporation (MPIDC). These industries will put up facilities for textile units, engineering and phosphate manufacturing in the region. MPIDC has issued Letter of Intent (LOI) to these four industries. An official from MPIDC wishing anonymity said, “LOI has been issued to 4 industries for setting up factories at different locations under Indore regional office. These 4 industries will make an investment of more than Rs 250 crore and anticipated employment generation is around 3,000.” From April till date around 52 industries have applied to take land parcels at different locations in Indore region, according to MPIDC. These industries have taken land at Jetapur, Pithampur, Jhanjharwada and Ujjaini, the department said. Recently, MPIDC is adding undeveloped land to offer to industries and expanding existing industrial areas. The area of the ambitious PM Mega Integrated Textile Regions and Apparel (PM MITRA) Park coming up in Dhar district is also expected to get expanded following encouraging enquiries from industries. According to MPIDC, the state has received 20 investment proposals amounting to Rs 6,842 crore so far for the park with a potential to employ 24,820 people.
Source: Times of India
India will remain the fastest-growing major economy in terms of both aggregate and per capita GDP despite the slowdown in growth, the World Bank said on Tuesday. "Growth is projected to pick up slightly through 2025-26 as inflation moves back toward the midpoint of the tolerance range and reforms payoff," World Bank said. The World Bank kept its April forecasts unchanged, projecting India's growth for FY24 at 6.3%, increasing to 6.4% in FY25. For FY26, it has projected a growth of 6.5%. It said India will lift the growth prospects of the South Asian region. "Unexpected resilience in private consumption and investment, and robust growth in the services sector in India, underlie an upward revision to growth in 2023," said the report.
Source: Economic times
India and the UAE are set to hold the first joint trade committee meeting next week to assess the free trade agreement signed last year, a government official said. Both the countries are expected to release the utilization rate of the FTA that would give a clear picture of the benefit accrued by the deal.While the commerce and industry ministry has said that significant duty benefits are accruing to Indian exporters under the Comprehensive Economic Partnership Agreement (CEPA), it is yet to reveal the crucial FTA utilization number due to a lack of data. Historically, India’s FTA utilization rate as per the Asian Development Bank, has remained under 25%, among the lowest in Asia. The pact, which came into force on 1 May 2022, eliminated duties for 90% of India’s exports to the UAE by value and covered sectors such as gems and jewellery, textiles, leather and engineering goods. Gems and jewellery, electrical machinery, automobiles, cereals, and machinery and mechanical appliances have been the top gainers by value. The commerce and industry ministry expects India’s exports to the UAE to touch a record $50 billion by 2026-27 from $31.8 billion in 2022-33 . COO issuance to India surged to 8,440 in March from 6,944 in February, official data showed. A COO issued to an Indian exporter certifies that the goods have met certain criteria considered as originating in India.COOs, which are mandatory to claim duty concessions under free trade agreements (FTA), may reflect in actual exports with a lag, and are a strong indicator of the utilization of the pactAs per a Deloitte report, the reason for low utilization of FTA in India can be attributed to various factors including low awareness about FTAs and Rules of Origin (RoO) in the Industry about the benefits under the trade agreement and poor participation of the industry in trade negotiations. India’s exports to the UAE jumped 11.8% to $31.8 billion in 2022-23 compared to $28 billion in the same period of the previous year. The top export products were petroleum oil that surged 36% during the April 22 to March 23 period to $7,780.22 million against the year-ago period.
Source: Live mint
Despite the Reserve Bank of India (RBI) raising the repo rate by 250 basis points in FY2023, the lending strength of Indian banks remains steady, according to a Bank of Baroda report. This resilience stands out as the central bank kept its policy rate consistent in its first bi-monthly policy of FY2024, with interest rates hovering above the average. Nevertheless, this has not impacted borrowing, which continues its ascent, propelled by robust demand. Bank lending growth rose to 15.9 per cent in April 2023 from 15 per cent in March 2023, the report detailed.
Source: The zeebiz.com
Key officials from India and the United Arab Emirates (UAE) will meet for two days from June 11 to review the progress of the year-old Comprehensive Economic Partnership Agreement (CEPA). A delegation from the UAE will be in Delhi next to meet key officials from the department of commerce, a person aware of the matter said. “Officials of Customs departments from both sides are also expected to meet and work out a mechanism towards data sharing, which will aid in deciphering the utilisation of the trade deal,” the official cited above told Business Standard. Besides, committees will also be set up on each policy area or chapter, such as services, investment, under the trade deal. A business delegation will also be present to discuss investment opportunities in India. The India-UAE CEPA entered into force on May 1, 2022. Under the deal, both countries have exchanged tariff concessions on products of mutual export interests. The UAE offered tariff concessions to India on over 97 per cent of its tariff lines amounting to 99 per cent of trade in value terms. India, on the other hand, has offered preferential access to the UAE on over 90 per of its tariff lines, including lines of export interest to the UAE.
CEPA progress
The UAE is India’s second largest export market, after the United States (US), and third largest trading partner after the US and China at $31.61 billion and $84.84 billion, respectively. India is hoping to export goods worth $50 billion to the West Asian nation by FY27. While total trade between both nations grew 16 per cent year-on-year to $84.84 billion in FY23, it was mainly due to higher imports, driven by inbound shipments of oil hitting the domestic shores from the UAE. Trade deficit stood at $21.62 billion. Government officials, however, pointed out that the deficit was expected to narrow amid cooling down of petroleum prices globally. During the CEPA implementation period, the bilateral trade increased to $76.9 billion, up 14 per cent YoY. During the same period, India’s exports to the UAE witnessed an 8.5 per cent jump on year to $28.5 billion, while exports to the rest of the world, excluding the UAE grew 3.1 per cent. The jump in exports was mainly due to higher demand for sectors, such as gems and jewellery, machinery and automobiles. Export of products, such as iron and steel and textiles, contracted due to imposition of export restrictions and tepid demand, respectively. According to the commerce department’s analysis shared last month, during May-March (2022-23), the India-UAE CEPA has surpassed almost all other free trade agreements in terms of utilisation. The number of certificates of origin has been the highest in the case of India-ASEAN FTA at 149,000. This was followed by the trade deal with the UAE as 54,142 certificates of origin were issued to exporters to avail concessional duty advantage under the trade pact.
Source: Business-Standard
Ahead of the historic US visit of Prime Minister Narendra Modi, the two countries have launched a strategic trade dialogue here during which officials reviewed the ongoing cooperation in multilateral export control regimes and agreed to share the best practices to further the bilateral ties. At the inaugural India-US Strategic Trade Dialogue (IUSSTD), the Indian delegation was led by Foreign Secretary Vinay Mohan Kwatra. The US delegation was co-led by Alan Estevez, Under Secretary for Industry and Security in the US Department of Commerce and Ambassador Victoria Nuland, Under Secretary of State for Political Affairs in the US Department of State. The dialogue is a key mechanism to take forward the strategic technology and trade collaborations envisaged under the India-US initiative on Critical and Emerging Technologies (iCET). The meeting took place ahead of Prime Minister Modi's maiden state visit to the US at the invitation of President Joe Biden. Modi will be visiting the US from June 21 to 24. It focused on ways in which both governments can facilitate the development and trade of technologies in critical domains such as semiconductors, space, telecom, quantum, AI, defence, bio-tech and others, a media release from the Indian embassy here said. During the meeting, the two sides reviewed the relevant bilateral export control regulations with the objective of building and diversifying resilient supply chains for these strategic technologies. They reviewed ongoing cooperation in multilateral export control regimes and agreed to share the best practices. Both sides agreed to enhance awareness among the industry, academia and other stakeholders about the export control regimes through workshops and other activities. "They acknowledged that the dialogue would be instrumental to enabling coproduction, co-development and enhanced industrial collaborations in critical technologies," the statement said. "They agreed to set up a regular monitoring group which will review progress in deepening cooperation in the bilateral high-tech trade and technology partnership. The co-chairs agreed to continue the dialogue with the objective of strengthening the India-US Comprehensive Global Strategic Partnership," the statement said.
Source: Economic times
INTERNATIONAL
Based Eunomia Research & Consulting says several large brand owners in the apparel industry, including Adidas, Bestseller, C&A, H&M Group, Inditex and VF Corp., have been working along with Eunomia to research and publish a set of principles to enable a smooth transition to a circular economy for textiles in the European Union. Along with the Amsterdam-based apparel industry organization Policy Hub – Circularity for Apparel & Footwear, Eunomia says the brands have demonstrated an interest in “how waste management schemes will be operationalized and harmonized” in the EU in light of that region’s preference for extended producer responsibility (EPR) systems. “This is a fundamental component of textile waste management, applying the ‘polluter pays’ principle whereby the producers of goods have a responsibility to fund their end-oflife management, helping to close the loop on products and materials,” Eunomia says. The consulting firm says the apparel industry is aware it can be considered one of the most polluting industries in the world, responsible for more than 10 percent of global greenhouse gas (GHG) emissions and with a low recycling rate globally. Textiles have some of the most significant environmental impacts in Europe after food, housing and transportation, Eunomia says, adding, “Key to reducing these impacts will be enabling circular use and end-of-life solutions, reducing the vast quantities of disposed, landfilled or incinerated textiles.” Eunomia has helped create a new industry-funded report that looks specifically at the role of EPR in the future of the textiles sector. EPR-related recommendations in the report include: creating a consistent definition of the “obligated producer” in such systems; clarifying which textiles are covered by an EPR system, both at the start and potentially in the future; suggesting upfront the principles for eporting systems to calculate and allocate fees; and ensuring data security to establish trust within the EPR system. “The upcoming revisions to the EU Waste Framework Directive provide a great opportunity to join the dots, and create a harmonized approach where this makes sense, reducing the burden on producers and helping the single market to function more effectively in driving the changes that are needed,” says Bente Bauer, director of public affairs at the Policy Hub. “We must move beyond talking [and] towards action, and this report provides a very helpful steer in respect of key elements of the design of EPR for textiles." Eunomia says the entire membership of Policy Hub has endorsed the report, which thus includes the Steering Group of Adidas, Bestseller, C&A, H&M Group, Inditex and VF Corp. The Policy Hub - Circularity for Apparel & Footwear says it is uniting the apparel and footwear industry to develop ambitious policies that accelerate sustainable practices. The organization represents more than 700 apparel and footwear stakeholders, including brands, retailers and manufacturers.
Source: Recycling today
European Union governments agreed on Monday that the bloc should ban the destruction of unsold textiles, part of the EU's green push towards reducing waste through greater reuse and recycling. Textile consumption in Europe has the fourth highest impact on the environment and climate change after food, housing and mobility. About 5.8 million tonnes of textiles are discarded every year in the EU, approximately 11kg (24 pounds) per person, much of it put into landfill or incinerated. The governments and the European Parliament need to agree on the Ecodesign Regulation before it can enter law. Under the initial March 2022 proposal by the European Commission, the Commission itself was to have determined at a later stage whether to put destruction bans in place. However, the EU governments have agreed that a destruction ban on unsold clothing should apply immediately, rather than waiting for the EU executive to carry out an assessment that could have lasted three years. Medium-sized companies, with fewer than 250 workers, would have a transition period of four years, while the smallest companies, with fewer than 50, would be exempt. Spain, which will hold the six-month EU presidency from July, is likely to hold negotiations on the law with representatives from the European Parliament. The assembly still needs to establish its position, but it appears it may favour a ban on destroying unsold textiles and electronic appliances. The new law would also create a new "digital product passport" showing a product's environmental sustainability to help consumers make more informed choices. The European Commission has said the destruction of unsold consumer products, such as textiles and footwear, is becoming a widespread problem across the EU, particularly due to the rise of online sales. France already has an anti-waste law that bans the destruction of unsold non-food products.
Source: The reuters.com
Luxury fashion house Armani Group has started an experimental agroforestry plantation in southern Italy to test new ways to produce cotton sustainably, it said on Monday (June 5). Armani said cotton planting started last month over one hectare of land – to be expanded to five hectares – in the southern region of Apulia. Agroforestry is a land-use system that plants trees in and around crop and pastureland. "Over five years, this farm site will be among the first field experiments in Europe testing agroforestry cotton with alternative tree species and regenerative practices," Armani said in a statement. The project is in collaboration with the Sustainable Markets Initiative’s Fashion Task Force and the Circular Bioeconomy Alliance, both founded by Britain's King Charles in his former role as the Prince of Wales, Armani Group said. Sustainability has been a growing focus for the fashion sector this year, with both Armani and Gucci and Yves Saint Laurent owner Kering pledging cuts to greenhouse gas emissions, and EU governments agreeing a ban on the destruction of unsold textiles.
Source: The star.com
The global economy is likely slowing sharply this year, hobbled by high interest rates, the repercussions of Russia’s invasion of Ukraine and the lingering effects of the coronavirus pandemic. That’s the latest outlook of the World Bank, a 189-country anti-poverty agency, which estimates that the international economy will expand just 2.1% in 2023 after growing 3.1% in 2022.Still, the bank’s latest Global Economic Prospects report, which it issued Tuesday, marks an upgrade from its previous forecast in January. That estimate had envisioned worldwide growth of just 1.7% this year.The Federal Reserve and other major central banks have been aggressively raising interest rates to combat a resurgence of inflation, set off by a stronger-than-expected rebound from the pandemic recession, persistent supply shortages and energy and food price shocks caused by the Ukraine war. But the global economy has proved surprisingly resilient in the face of higher borrowing costs, and the World Bank predicts that growth will accelerate to 2.4% in 2024. The United States has continued to generate unexpectedly robust job gains — employers added 339,000 workers in May, far more than economists had forecast — even though the Fed has raised its benchmark rate 10 times in the past 15 months. In its report Tuesday, the World Bank upgraded its forecast for U.S. economic growth this year to 1.1%. Though weak, that is more than double the growth the World Bank had envisioned in January. The eurozone, which represents the 20 countries that share the euro currency, is expected to post collective growth of 0.4% this year.That, too, marks a slight upgrade: In January, the World Bank had expected no growth at all for the eurozone this year. Europe, struggling with higher energy prices caused by the Ukraine war, enjoyed relief from a surprisingly warm winter, which reduced demand for heat. The World Bank upgraded its 2023 outlook for China after Beijing late last year relaxed its draconian zero-COVID policies, which had restricted travel and hammered its economy. The world’s second-biggest economy is now expected to grow 5.6% in 2023, up from 3% last year. The World Bank envisions Japan’s growth decelerating to 0.8% this year from 1% in 2022. It foresees India’s growth slowing to a still-strong 6.3% from 7.2% last year. The bank predicts that global trade will slow markedly this year. It foresees a sharp drop in the price of energy and other commodities this year and next.
Source: Financial Express
The Bangladesh Shipping Corporation (BSC) is expected to hold the keel-laying ceremony to construct four new ships in September next, officials said. With funding from the Export-Import Bank of China, the BSC has planned to buy the ocean-going mother vessels - two crude oil tankers and two bulk carriers. Under a government-to-government arrangement, the Chinese bank has agreed to lend Tk 24.86 billion while the BSC will spend Tk 1.34 billion from its own coffer for the total Tk 26.20-billion project. After receiving approval of the Executive Committee of the National Economic Council (ECNEC), the ministry of shipping recently issued an administrative order in this regard. The China National Machinery Import and Export Corporation or CMC was nominated by the Chinese authorities as the contractor for the supply of the ships. The CMC will build the ships at a Chinese shipyard. After getting necessary approval from the cabinet committee on government purchase, the BSC would sign a contract with the Chinese company, CMC. An approval from the China International Development Cooperation Agency will then be required before signing a loan agreement between the BSC and the ExIm Bank, officials said. The BSC has a very small fleet of eight vessels, mainly bulk carriers and oil and chemical tankers, but does not have container vessels. The corporation has plans to launch container feeder service, short sea service, and even a main line vessel service by securing vessels. Contacted on Tuesday, BSC managing director Commodore Ziaul Hoque told the FE that necessary documents have been sent to the shipping ministry to place before the cabinet committee on government purchase for approval. He said the CMC will supply the vessels to the BSC this time, too. Last time the Chinese company had supplied six ships - three oil tankers and three product carriers having capacity of 39,000 deadweight tonnage (DWT) each. "We plan to complete the keel-laying of ships by September next," said Mr Hoque. He said the corporation has only a few vessels and acquiring more is necessary to carry out business competently.
Source: The Financial Express
This is a report from the Shandong office of the Hong Kong Business Daily. Gaotang County, Liaocheng City, Shandong Province is a beautiful, open, vibrant, and progressive city. It is the hometown of Chinese traditional painting master Li Kuchan, with a recorded history of over 2800 years and is known as the “Golden Gaotang”. Enjoy 20 national honors such as “Hometown of Chinese Calligraphy and Painting Art”, “Hometown of Chinese Folk Culture and Art”. China’s Gaotang Industrial Cluster has formed seven major industrial clusters, including equipment manufacturing, pulp and paper making, new materials, health functional food, modern efficient agriculture, textile and clothing, and sheet metal processing. We have cultivated a group of advantageous enterprises such as Shifeng Group, a Fortune 500 global machinery manufacturing enterprise and a national super large enterprise, Fenmei Packaging Company, the first overseas listed enterprise in Liaocheng City and the third largest producer of aseptic packaging materials for liquid food globally, the first batch of manufacturing single champion enterprises in Shandong Province, and Aokete Group, a gazelle enterprise. China Gaotang has a complete range of industrial categories and distinct industrial characteristics, attracting well-known enterprises such as Taiwan Terminal, Italy Baiarez, and Guodian Investment to settle in, with 18 enterprises entering the capital market through listing. At present, the number of industrial enterprises above designated size in Gaotang County has increased to 170, and the number of national high-tech enterprises has reached 28. The output value of high-tech industries accounts for 45% of the total output value of industrial enterprises above designated size. China Gaotang builds a green and innovative “1222” manufacturing industry system, focusing on high-end equipment manufacturing, strengthening advantageous industries, developing emerging enterprises, transforming traditional industries, and promoting new vitality in the industry. High level construction of industrial parks and the construction of an industrial pattern with “one zone leading and overall coordination”. Firmly establish the concept of “project as king”, introduce and implement a batch of major projects, and cultivate and strengthen a group of leading enterprises. Boost the transformation, upgrading, and technological transformation of enterprises, vigorously promote the deep integration of manufacturing with big data, the Internet, and artificial intelligence, and promote enterprises towards high-end, intelligent, and green development. In the future development, Gaotang County will prioritize strengthening industries and accelerate the enhancement of Gaotang’s economic and comprehensive strength.
Source: Textile World
Ambercycle, an innovator in circular materials, and Shinkong Synthetic Fibers Corporation are excited to announce a strategic partnership to enable circularity in apparel. The collaboration aims to accelerate the production of highquality performance yarns using Ambercycle’s regenerated cycora® material, in response to the heightened demand of the industry. Textile-to-textile regenerated materials will radically improve the sustainability of apparel supply chains by reducing emissions, minimizing reliance on virgin resources, and diverting end-of-life textiles away from landfills. Since 2021, Ambercycle and Shinkong Synthetics have worked closely to develop and manufacture premium performance yarns containing cycora® material. “Ambercycle’s product quality is one of the best regenerated polyesters made from landfill-destined textile waste available in the market or in the development phase worldwide. We are able to make performance specialty yarn products with cycora® that are not able to be made with other materials,” said Sam Hu, Division General Manager at Shinkong Synthetics. “Both Ambercycle and Shinkong Synthetics share a long-term orientation and unwavering commitment to achieving true circularity in apparel.” By harnessing Shinkong Synthetics’ world-class manufacturing capabilities and Ambercycle’s expertise in molecular regeneration technology, this partnership is uniquely positioned to rapidly scale the manufacturing of regenerated filament yarn. Both parties are exploring the construction and operation of a commercial-scale manufacturing facility, under an executed memorandum of understanding (MoU). Shay Sethi, co-founder and CEO at Ambercycle, underscored the alignment between the two companies, stating, “Ambercycle’s focus on novel circular product creation aligns perfectly with Shinkong’s desire to enhance their sustainable offerings by adopting cycora® regenerated polyester. We are moving quickly to scale our production capabilities, and thus make circular materials available and accessible as soon as possible.” Currently less than 1% of all end-of-life textiles are recycled via closed-loop systems. Replacing virgin inputs with textile-to-textile regenerated materials is one of the most impactful actions the apparel industry can take towards decarbonizing its supply chain. Commercial-scale production resulting from this partnership will enable brands and manufacturers to seamlessly integrate and commercialize circular materials within their existing supply chains. The collaboration signifies a momentous step toward the industry’s transition to a future where circular products become the norm.
Source: Textile World
Carbios, a biotech company pioneer in the development and industrialization of biological technologies to reinvent the life cycle of plastic and textiles, will hold its 2023 Strategic Update today at 2pm CET in which it provides details of its business model for 2030 and 2035. Carbios announces its ambition to be a leading player in the global r-PET market by capturing between 4 and 8% of market share by 2030 and between 8 and 12% by 2035.
Carbios and Indorama Ventures recently jointly announced the signing of a non-binding Memorandum of Understanding (“MOU”)12 to form a Joint Venture for the construction of the world’s first PET biorecycling plant. This plant will be built in the Grand-Est Region of France. The Joint Venture equity will be split 75% Carbios and 25% Indorama Ventures. The main objectives of the industrial plant will be to generate revenue from industrial and commercial activities, deliver first tons to partnering Brand Owners and other market players, and train future licensees at large scale. Indorama Ventures confirms intention to potentially expand the technology to other PET sites for future developments. The business model for this plant will be identical to Carbios’ licensing model (see section 1 above). Construction timeline on schedule The construction timeline is on schedule with planning permission filed in December 2022, start of construction, recruitment and training of plant staff planned for end of 2023, and commissioning of the plant due in 2025. The plant is designed to maximize circularity with high product quality, energy and waste minimization and improvement add-ons such as increasing textile feedstock, the reuse and recycling of process water.
Feedstock sourcing Carbios secured an initial source of supply for its future plant by winning part of the CITEO tender for the biorecycling of multilayer trays. The consortium consisting of Carbios, Wellman (a subsidiary of Indorama Ventures) and Valorplast has been selected for 30% of the tonnages proposed by CITEO. The part of the stream consisting of multilayer food trays will be handled by Carbios starting from 2025 at its plant in Longlaville. Carbios is in discussions with other players to secure the yearly 50kt of waste expected for the plant’s full capacity. Carbios estimates that the feedstock potential for the Longlaville plant could reach 400kt in 2023 and is expected to increase to 500kt in 2030 due to higher rates of selective collection. The overall sourcing strategy for Carbios is to minimize the use of bottles as this is an expensive feedstock, and to diversify the mix to include food trays, fines and textile waste for increased competitiveness. Total capital expenditure re-estimated at €230 million The total capital expenditure for the new plant has been re-estimated at €230 million, versus initial estimation at 200M€, considering recent impact from inflation. This increase reflects the macroeconomic situation and the effects of inflation impacting the industry as a whole but remains competitive with a much lower CapEx per ton compared to other advanced recycling projects announced in France. Moreover, Carbios believes that future sites could benefit from potential CapEx optimization. Based on and subject to the comprehensive terms set out in the MOU, Indorama Ventures plans to mobilize about €110 million for the Joint Venture in equity and non-convertible loan financing13, pending final engineering documentation and final economic feasibility studies. Furthermore, Carbios has been selected for €42.5 million in funding from the French State via France 2030 (€30 million of the total amount) and the Grand-Est Region (the remaining €12.5 million). The implementation of this funding is conditional the European Commission’s approval of the corresponding state aid scheme, followed by the conclusion of national aid agreements. Longlaville project costs shall be financed for €152,5 million (i.e 65%) by the sums mobilized by Indorama Ventures and the French State and Grand-Est Region aids available for the project. The remaining amount shall be financed by equity capitalization of the Joint Venture by Carbios. Part of Carbios’ equity injection into the Joint Venture shall be financed by a portion of Carbios’ current cash position (i.e. €86 million as of 30 April 2023). Potential Equity Financing Carbios is also actively examining the best options to finance its remaining equity injection into the Joint Venture and will choose the most appropriate solution and timeline based on market conditions. In the event of any decision to use equity financing, the Company’s shareholders will be given priority.
Source: Textile World
