The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 22 SEP 2017

NATIONAL

INTERNATIONAL

FDI in textile industry tripled in three years: Smriti Irani

The textile industry in the country is growing exponentially with the foreign direct investment having tripled in the last three years. Though FDI had touched 618.95 million U.S. dollars in 2016-17, there is still a huge potential for further growth, Textiles Minister Smriti Irani said here on Thursday.

Concerted efforts

Inaugurating the sixth edition of the international textile and apparel fair, “Vastra-2017”, at Sitapura industrial area here, Ms. Irani said concerted efforts were being made for creating employment opportunities in the textile sector. “The Union government is providing skilling opportunities as well as incentives to give an impetus to the textile industry,” she said. The textile sector employs the second largest workforce in the country, with 4.5 crore people directly getting livelihood from it and 2 crore people being indirectly employed.

Garment hub

The Union Minister praised the Rajasthan government's efforts to create a garment hub in the State. She said the Jaipur Designers Festival being held in “Vastra-2017” for the first time would provide the younger generation with an exposure to the world of fashion and designing.

Source: The Hindu

Back to top

Govt looking at Rs.  50,000 crore growth stimulus

India's government is considering a plan to loosen its fiscal deficit target to enable it to spend up to 500 billion rupees ($7.7 billion) more to halt an economic slowdown, two government officials with direct knowledge of the plan said on Thursday. Growth in Asia's third-largest economy slowed to a three-year low of 5.7 percent in the quarter that ended in June, and Finance Minister Arun Jaitley said on Wednesday that the government was looking for ways to speed it up. The officials, who declined to be named as the measures have not been made public yet, said the extra spending was estimated to widen the federal fiscal deficit for the financial year ending next March to 3.7 percent of GDP from a budgeted target of 3.2 percent. “The fiscal deficit is not a sacrosanct number,” one of the officials told Reuters. The official said that the economy was passing through a "transitory phase” after the government's decision late last year to outlaw old high-value banknotes and after the launch of a nationwide goods and services tax in July. India's benchmark 10-year bond rose 2 basis points to 6.68 percent after Reuters reported on the extra spending plan. Although growth was already slowing, Prime Minister Narendra Modi's decision last November to scrap the old banknotes, in a bid to flush out money hidden from tax officials, wiped out about 86 percent of the currency in circulation almost overnight. The decision hurt consumer demand in an economy where most people were paid and spent in cash, analysts said. With the economy still reeling from the cash clampdown, the faulty implementation of the goods and services tax then made doing business far more complicated for many companies. Jaitley has held a series of meetings with cabinet colleagues and other government officials this week to explore ways to revive the economy. “The government could ask parliament to give its approval to defer the fiscal consolidation path this year,” the second government official said. With the extra money, New Delhi is looking to spend more on bank recapitalisations, rural jobs programme and rural housing. A final decision on stepping up the funding and breaching the fiscal deficit target will be taken by Modi, the officials said. The faltering economy has given the opposition Congress party an opening to regain political ground against Modi, although the next general election is not due until 2019. Even though industrial output posted a modest recovery in July, 15 of 23 manufacturing industries recorded a contraction, adding to concerns over the state of the economy. Sluggish economic activity has also buffeted public finances. Finance ministry officials last week said the revenue shortfall in 2017/18 could be at least $13 billion if the economy failed to recover.

Source: Business Line

Back to top

Foreign trade policy review may be delayed

Exporters may have to wait an extra month, or even more, for the foreign trade policy (FTP) review, earlier scheduled for September, as the government is still grappling with implementation issues related to the Goods and Services Tax (GST).  The Centre has also not taken a call on the future of export incentive schemes that may no longer be permissible under the World Trade Organisation rules as India has graduated out of the list of poorer countries allowed to give export subsidies. “It is unlikely that the FTP review will be announced before October-end. It may happen even later depending on the pace at which the concerns of exporters are sorted out,” a government official told BusinessLine. The five-year FTP announced on April 1, 2015, which laid an ambitious annual target of touching $900 billion of exports by 2020, provided for a review when the policy was half-way through and not on an annual basis as was the earlier practice. “The idea was not to tinker too much with the policy and instead do an analysis when it was half-way through and do course corrections if required,” the official said. Two-and-a-half-years after the FTP was announced, the Commerce Ministry finds its hands full with the number of concerns it might need to address while reviewing the policy. “Addressing the issues arising from implementation of the GST is top priority as it is bothering exporters most. The Centre has to ensure that refund of input taxes happens on time and exemptions may be given where necessary to help exporters maintain their liquidity. This can take time as not only will the Finance Ministry will have to be on board, the GST Council ultimately will have to pass the revisions,” the official said, adding that the Council would next meet only sometime in October.

Sop scheme

Incentive scheme for exporters is another tricky area in the review as earlier this year the WTO declared that India’s per capita Gross National Product (GNP) exceeded $1000 for three years in a row (2013. 2012, 2015) making it ineligible for export incentives that only poorer countries are allowed. “The Commerce Ministry has to first identify the schemes that could be affected because of India’s new status and then plan how to phase out those schemes and replace them with production subsidies that are allowed under the WTO. This is again an onerous exercise,” the official said. While the Merchandise Export Incentive Scheme under which incentives based on value of exports is provided to over 7,000 items would no doubt be one of the affected schemes, the government has to examine the validity of other schemes such as interest subvention.

Ambitious target

The ambitious export target of $900 billion fixed for 2020 is also a problem since exports have moved sluggishly over the last two years hovering around $300 billion and there is no scope of reaching the target. “Not only does the target need to be brought down to a realistic level, some more schemes have to be devised to accelerate exports,” the official said.

Source: Business Line

Back to top

Gujarat expects textile policy extension to attract Rs 5,000 cr

The Gujarat government's decision to extend its textile policy by a year is set, it believes, to attract Rs 5,000 crore of more investment in sectors across the value chain. Implemented in 2013, the policy has attracted around Rs 20,000 crore of investment in four years and created 2.5 million jobs, half to rural women, says the government. Th year's extension was announced early this month. The government estimates addition till now of a million units of spindle capacity in the spinning sector and setting up of over 1,000 units in technical textiles. "There has been shifting of units from Tamil Nadu, Telangana and Maharashtra. The extension would see a further boost in fresh investment," said Siddhartha Rajagopal, executive director, The Cotton Textiles Export Promotion Council. The extension is expected to add 300 ginning units, to 1,400, and double the spinning capacity to four million a year. Apart from setting up of units in other segments, such as technical textiles, silk, jute and wool. Gujarat has been the largest producer and exporter of cotton in the country, at 33 per cent and 60 per cent, respectively, of the national total. Under the policy, the state government offers interest subsidy of five percentage points on new plant and machinery (P&M) for value addition, apart from six per cent and seven per cent for technical textiles and on new P&M for cotton spinning, respectively. Also, refund of value added tax (VAT) on expansion of existing units from cotton to garments and made-ups, in addition to power rate concession on new investment for cotton spinning at a rupee a unit. The government also extends financial support of 50 per cent (up to Rs 30 crore) for establishing a textile and apparel park, and a maximum of Rs 10 crore for other technical parks. "Fresh investment here would would impact flow into other states, as the policy extension would help in several benefits for players here," said R K Dalmia, president, Century Textiles and Industries. Other states have followed Gujarat's policy to attract flow into this sector. Maharashtra has announced the setting up a number of textile parks in Vidarbha. Tamil Nadu, Andhra and Telangana have also announced incentives for setting up of new textile units. However, Gujarat has an advantage in terms of strategic location near large consumer markets and in ports for export. "The overall policy was advantageous for attracting investment in the state," says Rahul Mehta, president, Clothing Manufacturers Association of India.

ADVANTAGE GUJARAT

• The policy has attracted around Rs 20,000 crore of investment in four years and created 2.5 million jobs

• The government offers interest subsidy of five percentage points on new plant and machinery for value addition

• The state extends financial support of 50 per cent (up to Rs 30 crore) for establishing a textile and apparel park

• Gujarat has been the largest producer and exporter of cotton in the country

Source: Business Standard

Back to top

OECD Trims FY18 Growth Forecast to 6.7% on GST, DeMo

The Organisation for Economic Co-operation and Development has trimmed India's growth forecast for the current financial year, citing the temporary impact of the rollout of the goods and services tax (GST) and demonetisation, expecting the economy to expand at a slower pace than China. OECD said India's economy will likely grow 6.7% in FY18, lower than its estimate of 7.3% in June. In contrast, China's economy gets a 0.2% lift from its earlier assessment to 6.8% for 2017. The Paris-based group of 35 advanced and emerging countries cuts its forecast for India's growth to 7.2% in FY19 from 7.7% estimated earlier. China is predicted to grow 6.6% in 2018. “In India, the transitory effects of demonetisation and of the implementation of the Goods and Services Tax (GST) have led to a downward revision in 2017 growth projections, while business investment has remained weak. In the longer run, the GST is expected to boost investment, productivity and growth,“ it said in a country assessment. Global GDP growth is projected to pick up to about 3.5% in 2017 and 3.7% 2018, higher than in 2016 but still below historical norms, OECD said. Growth is seen higher in the euro area, Russia, Japan and Canada. The forecast for the US is unchanged at 2.1% for 2017 and 2.4% for 2018. The group warned against complacency in the face of stronger shortterm momentum.  “To secure robust mediumterm growth, monetary policy should remain accommodative in some economies but with an eye on financial stability, so as to continue to provide support while a further rebalancing is done towards fiscal and structural initiatives,“ it suggested, while calling for the prudent use of fiscal room in countries where available.

GLOBAL TRADE REBOUND

World trade is expected to grow 3.6% in 2017, well above last year's lacklustre growth of 1.3%, buoyed by a revival in import demand in Asia and North America.  The World Trade Organization upgraded the forecast for 2017 on Thursday as “trade rebounds strongly“ from its earlier projection of 2.4%. The stronger growth in 2017 is attributed to a resurgence of Asian trade flows as intra-regional shipments picked up and as import demand in North America recovered after stalling in 2016 “The improved outlook for trade is welcome news, but substantial risks that threaten the world economy remain in place and could easily undermine any trade recovery,“ said WTO DirectorGeneral Roberto Azevêdo. These risks include the possibility that protectionist rhetoric translates into trade-restrictive actions, a worrying rise in global geopolitical tensions and a rising economic toll from natural disasters “However, trade growth was becoming more synchronised across regions than it had been for many years, which could make the current trend self-reinforcing,“ he said.  The multilateral trade body expects the pace to moderate next year and is estimated at 3.2%, within a range of 1.4-4.4%. This is because the US and euro zone monetary policies are expected to tighten and China is likely to rein in easy credit to stop its economy from overheating. The ratio of trade growth to GDP growth, which traditionally ran at about 2:1 but slumped to about 1:1 in the decade since the financial crisis, should rise this year, with trade growing 1.3 times faster than the global economy, the WTO said.

Source: The Economic Times

Back to top

GST: Centre, States to Divide Taxpayer Base

The Goods and Services Tax (GST) Council has put in place an elaborate framework for division of taxpayers between the state and central tax authorities, in a move aimed at bringing clarity and effectiveness in the administration of the new indirect tax regime. The guidelines for the division of the taxpayer base between the Centre and states will ensure that a taxpayer faces only one GST authority ­ either the Centre or the state. “The list of taxpayers will be made public,“ said an official, adding that this would clear the air for not just the taxpayers but also the tax autho rities. The division will also clearly fix the responsibility for raising awareness about GST, with bulk of small traders falling within the jurisdiction of states. According to the rules issued, 90% of the assesses with a turnover of less than `1.5 crore will be under the administrative control of states and the balance 10% will be e. under the Centre. In the case of all taxpayers with turnover of over `1.5 crore, the division will be 50:50. The division of taxpayers at each state level will be done randomly by a computer using stratified random sampling to ensure there is no cher ry-picking or selection or exclusion for some other reason or consideration. However, the selection could take into account geographical conside rations and the type of taxpayer as may be mutually agreed. The government has already set up state-level committees of central and state officials who will take forward the process of dividing taxpayers.  Separately, the government will also notifications to cross-empower state and central tax officials. The turnover for the division will be based largely on the status of taxpayer before GST. In the case of those registered under the value added tax (VAT), only the total annual state turnover under this tax will be considered as the basis for division. For taxpayers registered only under central excise, the relevant turnover will be considered.

Source: The Economic Times

Back to top

Centre to Reward States for Pulling Investments

The commerce and industry ministry will reward states that are the bestperformers in attracting investments in a bid to encourage them to go beyond merely signing initial proposals and commitments. The Centre is finalising norms to assess the performance of states and they are likely to include ease of doing business, investment conversion and facilitation, data and tracking the progress of investments. The industry department will ask the states not to get into a rut of signing investment agreements as most of them have achieved little on the ground. The government is concerned that this has led to adverse investor sentiment, a senior official told ET. Pushing domestic investment in the country is one of the top priorities for the ministry. Suresh Prabhu, who took over as commerce and industry minister earlier in September, has already flagged concerns over tracking investment progress and sketchy data availability at a pan-India level to ministry officials. He has directed his ministry to set up a centralised portal to monitor all investments in collaboration with state governments. Based on information published on the portal, the government will not only reward the high-performing states but also call on others to improve or get their act together. “The involvement of states and the Centre in fast-tracking investments is a must,“ the official said. State governments will have to apprise the Centre on the status on investments in five stages ­ when investment intent is conveyed, proposals are sha red, approval of the singlewindow authority is received, project work starts and commercial operations commence. Some states such as Haryana have built a mechanism to track invest ments, but the government wants to create a system to gather such data at the national level. The industry ministry plans to release a quarterly India Investments Report once the portal is functional. Prabhu will meet with representatives from the private sector soon to understand why investments are clogged and he will urge them to pump more money into the economy. The minister had said earlier that there is a need for a paradigm shift in the government's approach towards increasing investments and in reaching out to companies. Prabhu has asked for a district-wise plan to create core competencies for states.

Source: The Economic Times

Back to top

WTO forecasts better trade growth prospects in 2017

The World Trade Organisation (WTO) today raised the growth projections for trade to 3.6 per cent from the 2.4 per cent estimated earlier, a development which augurs well for India. "The estimate for growth in world merchandise trade volume in 2017 was raised to 3.6 per cent," the WTO said in a statement. It added the 3.6 per cent growth would represent a substantial improvement on the lacklustre 1.3 per cent increase in 2016. "Stronger growth in 2017 was attributed to a resurgence of Asian trade flows as intra-regional shipments picked up and as import demand in North America recovered after stalling in 2016," it said. WTO Director-General Roberto Azevedo said while the improved outlook for trade is welcome news, "substantial risks" that threaten the world economy remain in place and that could easily undermine any trade recovery. "These risks include the possibility that protectionist rhetoric translates into trade restrictive actions, a worrying rise in global geopolitical tensions and a rising economic toll from natural disasters," he said. Further, the Geneva-based multi-lateral trade body said that stronger growth particularly in China and the US have boosted demand for imports. It also said the rapid pace of trade growth this year is "unlikely" to be sustained next year for a number of reasons. "First, trade growth in 2018 will not be measured against a weak base year, as is the case this year. Second, monetary policy is expected to tighten in developed countries...," it said. India's exports recorded a double digit growth of 10.29 per cent after a gap of three months to USD 23.81 billion in August, mainly on account of rise in shipments of chemicals, petroleum and engineering products.

Source: The MoneyControl

Back to top

Centre planning to loosen fiscal deficit target, spend Rs 50,000 crore to revive economy: Reuters

India’s GDP growth for the quarter that ended on June 30 had sunk to a three-year low of 5.7%. Centre planning to loosen fiscal deficit target, spend Rs 50,000 crore to revive economy: Reuters.  The Narendra Modi government is considering a plan to loosen the fiscal deficit target for the 2017-’18 financial year, Reuters reported on Thursday. This would enable the Centre to spend an additional Rs 50,000 crore to revive the economy, two unidentified government officials told the news agency. Union Finance Minister Arun Jaitley on Wednesday had said that the government was considering ways to boost economic growth, which reached a three-year low of 5.7% in the quarter that ended in June. Jaitley, who had refused to divulge details, had said the government would unveil the necessary steps once Prime Minister Narendra Modi signs off on them. “We have taken note of all economic indicators available,” Jaitley said after holding meetings with his Cabinet colleagues and other government officials.

Source: The Scroll

Back to top

Technological breakthrough: Successful method; found for recycling blend textiles into new fibres

“For too long the fashion industry has not been able to properly recycle its products since there’s no commercially viable separation sorting and recycling technology available for the most popular materials such as cotton and polyester blends. This very encouraging finding has the potential to change that. We are very excited to develop this technology and scale it beyond the laboratory which will benefit the global environment people and communities ” says Erik Bang Innovation Lead at H&M Foundation. The aim of the Closed- Loop Apparel Recycling Eco- System Program is to find at least one ready technology to recycle clothes made from blend textiles within the four-year project period. One year into the partnership HKRITA has together with Ehime University and Shinshu University in Japan successfully developed a hydrothermal (chemical) process to fully separate and recycle cotton and polyester blends. The recovered polyester material can be reused directly without any quality loss. The hydrothermal process uses only heat water and less than 5% biodegradable green chemical topman Export self-separate cotton and polyester blends. This fibre-tofibre recycling method is cost effective and there’s no secondary pollution to the environment ensuring the life of the recycled material is prolonged in a sustainable way. The technology will be licensed widely to ensure broad market access and maximum impact. The H&M Foundation initiated the partnership with HKRITA in September 2016. It is backed by an estimated 5.8 million euros of funding with HKRITA conducting the research and work to commercialise the outcomes. The Innovation and Technology Fund of the Hong Kong SAR Government also provides additional substantial funding and support. The total project investment is estimated to around 30 million euros during the four-year collaboration (2016- 2020) which makes it one of the biggest and most comprehensive efforts ever for textile recycling. It is H&M’s customers’ engagement that have enabled this important research exact financial contribution is determined by the annual surplus from H&M’s global in-store garment collecting program which is donated to H&M Foundation. To date the H&M Foundation has donated 2.4 million euros to HKRITA. The collaboration is part of H&M Foundation´s commitment within its focus area Planet which initiatives all have the aim to safeguard not only the planet but also the living conditions for people and communities around the World.

Source : Tecoya Trend

Back to top

India’s Cotton Fact Sheet @2017

India is the only country to grow all four species of cultivated cotton Gossypium arboreum and herbaceum (Asian cotton), G.barbadense (Egyptian cotton) and G.hirsutum(American Upland cotton) India has the largest area devoted to cotton cultivation. Around 9.4 million hectares of land with an estimated four million farms had been involved in cotton farming since the past decade. Approximately 65 per cent of India’s cotton is produced on rain-fed areas. India is the only country to grow all four species of cultivated cotton Gossypium arboreum and herbaceum (Asian cotton), G.barbadense (Egyptian cotton) and G.hirsutum (American Upland cotton). Gossypium hirsutum represents 90 per cent of the hybrid cotton production in India. India produces a large number of cotton varieties and hybrids. Though the number of varieties in cultivation exceeds seventy-five per cent, 98 per cent of the production is contributed by about 25 varieties.

Industry Structure

The Indian government actively participates in the industry and serves as an umbrella for the government agencies like Cotton Corporation of India (CCI) and state marketing federations. Furthermore, the state governments and regions in which the majority of the cotton planting takes place are also highly involved. In addition, there are committees and institutions responsible for the improvement of quality such as Genetic Engineering Approval Committee (GEAC) and the Central Institute of Cotton Research (CICR).

The Larger Issues

Issues that generally plague the cotton industry are those related to the level of technology and modernization in the industry. These issues generally lead to larger problems that make the successful commercialization of cotton as a cash crop difficult. Consequently for the majority, cotton agriculture is stuck at the subsistence level. However, this is being addressed by the Technology Mission on Cotton (launched in February 2000) which continuously aims at improving the quality and productivity of cotton. The Mission consists of four Mini Missions focusing on research and development on cotton, dissemination of technology to the farmers, improvement of marketing infrastructure and modernization of ginning and pressing sector.

Regional status:

Northern India

Cotton planting in Northern India has increased significantly from the last year. Farmers have shifted acreage to cotton due to higher price realization. Farmers have reported isolated incidences of whitefly and Government agencies are recommending farmers to uproot and destroy leaf curl infected cotton plants and use specific insecticides wherever whitefly populations cross specified threshold levels (ETL). The cotton crop is 75-80 days old and at the boll formation stage in Punjab. The yield forecast for the Punjab area is 574 kg per hectare, which is higher than the five-year average. In the states of Haryana and Rajasthan, the cotton acreage forecast is higher and the yields are expected to be higher than the five year average.

Central India

The forecast for Gujarat area, the largest cotton growing state, is good with yields marginally higher than the last year and well above the five-year average. The forecast yield in Gujarat is 667 kg per hectare. According to the Gujarat State Agriculture Department, cotton planted area as of August 28 was higher by 10 percent compared to the last year. According to the India Meteorological Department, heavy rainfall is expected over parts of Gujarat and Central Maharashtra in early September, which may influence crop development. Farmers report that harvest will be delayed by a few weeks because of the replanting. In Maharashtra, cotton acreage is forecasted slightly higher than last year while soybean and pulse crop planted area is anticipated to be lower. While the acreage for cotton has increased by almost 300,000 hectares across the state compared to the previous year, yields are forecast lower than last year due to poor rains. The eastern region (Vidarbha) of Maharashtra has received inadequate monsoon rains in the majority of its cotton growing districts. Farmers are weeding and taking moisture conservation and plant protection measures to protect against sucking pest infestations. There is low to moderate intensity of sucking pests reported in area cotton.

Southern India

Cotton acreage is expected to rise in Telangana and Andhra Pradesh, but acreage in Karnataka is likely to be lower than last year. Cotton sowing in Telangana is near completion. The crop is 20-25 days old and at the square formation stage. Some farmers are sowing cotton, still, if moisture is adequate. While acreage has increased by more than 30 per cent from last year, yield forecasts remain low due to inadequate rainfall and pest pressure in major cotton growing districts. State-level agency reports indicate the presence of aphids and pink bollworm in the Warangal district. Warangal district acreage is 17 per cent of the total state cotton area. Similarly, another major cotton district, Adilabad, has received 22 percent deficit monsoon rains, which may influence boll development. In Andhra Pradesh, acreage under cotton and paddy has increased. In Karnataka, the cotton acreage has gone down from last year due to poor price realization for the farmers and the area has shifted predominantly to maize.

The Fact Sheet Stats

Simultaneously, workshops, seminars and public meetings are also being organized to maximize its impact by creating awareness among the cotton growers and to motivate them to follow the Best Management Practices for improving quality of cotton and reducing the level of contamination.

Source: Business World

Back to top

Innovative fabrics, yarn adorn Yarnex expo

Showcasing a wide portfolio of value-added fabrics, yarn, fibres and accessories, the 11th edition of Yarnex International Exhibition got off to a radiant start here on Thursday. The three-day fair had participation of yarn, fabrics and accessories manufacturers from China, United States, Japan and India. “The event is now not only an one-stop sourcing destination, but has also emerged over the years as a converging point for knitters and weavers to interact with spinners and discuss the emerging technologies,” said P. Krishnamurthy, Chief Executive Officer of S. S. Textile Media, the organiser of the fair. The current edition had witnessed a significant increase in the number of participants as 139 companies had set up stalls against 94 companies in the previous edition. Mr. Krishnamurthy said that only 28 companies took part in the first edition held a decade ago. Some of the innovative products that were on display include fire safe fabrics that have properties to retard fire, polyester fabrics with high moisture absorption properties, blended special yarn, dyed yarn, fibres made from recycling of Poly Ethylene Terephthalate (PET) bottles and embellishments. Earlier on the day, Tirupur Exporters Association president Raja Shanmugam inaugurated the event in the presence of TEA general secretary T. R. Vijayakumar and representatives of various other textile associations.

Source: The Hindu

Back to top

German Technology Meets U.S. And Mexican Textiles

Interested in developing and manufacturing new products; or enhancing competitiveness by increasing efficiency and quality? The Germany-based Mechanical Engineering Industry Association’s (VDMA’s) Textile Machinery Association hopes to help textile manufacturers find answers to these questions, as well as tackle topics such as saving energy and material resources, digitization, and smart factories during two upcoming B2B Forum & Conference events this November. The first event will be held in Charlotte at the Sheraton Charlotte Hotel November 6, 2017. The second conference will be held November 8-9, 2017, at the Hilton Mexico City Santa Fe in Mexico City. Each event will feature approximately 25 VDMA member companies that will present practice-oriented technology topics along the entire textile chain from spinning to finishing and dyeing, in addition to cross topics including energy and material efficiency, life cycle costs, and Industry 4.0. Conference presentations, some held in parallel, will be supplemented by B2B meetings and a table-top exhibition area. The free event is targeted to decision-makers in the textile manufacturing industry. Interested parties can register at each event’s website, as well as use tools on the site to schedule meetings with participating VDMA member companies, subsidiaries and agents.

Healthy Markets

According to the VDMA, traditionally the United States is one of the top five destinations for German textile machinery. Strong sectors in the United States include technical textiles and nonwovens, but also home textiles like carpets. In the first half of 2017, German exports of textile machinery and accessories to the United States reached more than $130 million. “So, for the whole year 2017, we can expect business on a quite good level with exports worth well above $200 million,” said Thomas Waldmann, managing director, VDMA Textile Machinery. The VDMA reports the market in Mexico was quiet for a couple of years, but picked up in 2015 and 2016. In the first six months of 2017, German deliveries of textile machinery to Mexico reached more than $20 million. “Continuing like this, the result for the whole year will be a good one,” Waldmann said.  “We expect decision-makers of textile manufacturers from the United States and Mexico who are interested in developing and manufacturing new textile products to attend the event,” Waldmann said. “For textile producers that wish to enhance competitiveness by increasing production efficiency and quality of their textile products, the VDMA events are a place to be. The practice-oriented technology topics will place high value on saving energy and material resources in the production process. Textile producers looking for content behind the sometimes loosely used buzzwords ‘digitization’ and ‘smart factory’ will benefit from attending the conferences in Charlotte and Mexico City.”

To Participate

First, attendees must register at the event website; then, individual business meetings with other participants may be requested. Once both parties confirm the request, the meeting will be scheduled. Prior to the event, each registrant will receive a personalized meeting schedule. The event website offers registered participants access to a calendar; a to do list; activities; and a summary of accepted, declined or pending meetings. The comprehensive website also offers a searchable catalog of profiles for each participating company.

Technology Highlights

Following is a brief preview of what to expect from just a small slice of the participating companies. Andritz’s “Innovative Needlepunch Solutions For The Automotive Industry” presentation will focus on its aXess and eXelle lines designed for market entry and medium capacities versus high capacities and premium products respectively. The company reports there is a focus on needlepunch technologies for automotive applications in the presentation, and it is ready to share its experience and knowledge in this growing application area. Autefa Solutions considers the forums a great opportunity for easy networking and information exchange, and reports many of its new developments are driven by customer demands. According to Autefa, energy efficiency in addition to reliability and economy play a big part in its product portfolio. “The unique design of our Square Drum Dryer SQ-V combines the small footprint of a drum dryer with the better performance of a belt dryer,” said Alexander Stampfer, regional sales director. At the Charlotte conference, Brückner’s presentation will provide a definition of the meaning of the Internet of Things and will identify the possibilities that digitalization can offer to end-users and suppliers, as well as explain how these possibilities can be used in a state of the art control system, how they affect machine operation and maintenance and how data collected will increase the production efficiency. In Mexico, Brückner will focus on an up-to-date machinery control system with Remote Maintenance Control and Styles Administration data base for a new system that allows the user to ecologically optimize the finishing processes under and reduce production costs. DiloGroup will present information on its VectorQuadroCard from DiloSpinnbau, which combines different types of carding within one card using a simple and fast changeover of the intermediate section; the horizontal crosslayer DLSC 200 from DiloMachines, which features an electro-mechanical web infeed speed of 200 m/min depending on the fiber used; and the DILO HyperTex and Hyperpunch needlelooms, among other products. For carding customers, Groz-Beckert offers a wide range of products available in a variety of options including micro-alloyed and high-end steel grades. The company continuously develops new technologies including the SiroLock® and EvoStep® wires for long staple spinning and nonwovens production. Groz-Beckert’s strong technical support also helps companies address challenges in today’s increasingly competitive environment. Interspare, a producer of textile finishing systems, will highlight its horizontal chain for high-tension fabric transportation without using lubricants. The company reports the chain is usable in high impact and extreme cross tension situations, making it suitable for carpet and coating applications. Interspare also will share information on new innovations such as its patented Econ-Air guiding system. Mahlo offers on-line measurement and quality control technologies. During the event, the company will highlight its systems for textiles, nonwovens, coating, converting, film and paper applications. The company develops customizable, modular technologies with the aim of improving quality, reducing manufacturing costs and optimizing processes. High-tech coating solutions for advanced filtration materials and automotive textile applications will be the focus of A. Monforts Textilmaschinen. At the conference, Monforts will highlight its texCoat coating range, which incorporates a knife over roller/air system, magnetic roller system and printing head systems. “Our new texCoat coating system is the most versatile coating system on the market,” said Jürgen Hanel. “With texCoat, it’s simply a question of changing a position on the machine and we can move from coating to printing. In addition, we can either retrofit the system to an old machine, or add it to a new frame for a totally integrated solution.”  Georg Sahm and American Starlinger-Sahm will introduce the new YarnStar3+ — coating, cooling, winding + automation — single-end extrusion coating line. The line allows polyester yarns to be coated with poly vinyl chloride at speeds of up to 1,500 meters per minute (m/min). The mono- and bicolored coated yarns are suitable for sunshades, home textiles, upholstery fabrics, and wall and floor coverings. Saurer’s divisions have implemented an E3 concept, which aims to optimize the company’s spinning, winding and twisting systems in terms of energy, economics and ergonomics. The Volkmann twisting division has developed specific solutions to reach these goals including a range of efficient motors and bearings in conjunction with low friction drive systems and a wide range of spindle and rotor combinations to minimize the energy required to produce 1 kilogram of yarn. Its systems are modular and can be tailor-made to meet customer’s requirements. Sedo Treepoint reports the company has focused on a deeper integration of all systems in dyeing and finishing to offer higher productivity and machine efficiency; more sustainable production; and substantial water, chemical and energy savings. Presentations given at the two events will offer insight on connecting the shop floor with management decisions using a fully integrated system and dynamic production environment. The Thies iMaster H2O short liquor fabric dyeing jet for cotton and cotton blends operates at liquor ratios as low as 1:3.5 and at 1:2.5 for polyester. Thies reports the machine is flexible and simple to operate with its new software. The company also offers a full line of dye and chemical dispensing equipment. Trützschler will promote its Integrated Draw Frame (IDF) — a compact auto leveler draw box — during the event. The company reports it is possible to realize improved efficiencies and improve yarn quality when using IDF because the process substitutes one or two passes on the draw frame, thus reducing the number of cans, can transports, power consumption and building space. The improved yarn quality in turn results in fewer imperfections and yarn count variations for better appearance in knit and woven fabrics.

Source: Textile World

Back to top

Swaziland: Swazi Textile Workers Exploited

The Amalgamated Trade Union of Swaziland (ATUSWA) has visited several factories across the kingdom. ATUSWA's Bongani Ndzinisa told local media that workers in the textile industry had been neglected. The Swazi Observer reported (11 September 2017), 'He disclosed that the union had already conducted an assessment which indicated that the workers were faced with numerous challenges which affected their livelihood. 'Ndzinisa said they were in the process of encouraging workers to join the union, after which they will be writing to the various factories to demand recognition.'

The textile industry in Swaziland which is mainly owned by Taiwanese interests has a long history of exploitation. In July 2014 a survey of the Swaziland textile industry undertaken by the Trades Union Congress of Swaziland (TUCOSWA) revealed workers were subjected to harsh and sometimes abusive conditions, many of the kingdom's labour laws were routinely violated by employers, and union activists were targeted by employers for punishment. More than 90 percent of workers surveyed reported being punished by management for making errors, not meeting quotas or missing shifts. More than 70 percent of survey respondents reported witnessing verbal and physical abuse in their workplace by supervisors. Commenting on the survey, the American labour federation AFL-CIO said, 'Some workers reported that supervisors slap or hit workers with impunity. In one example, a worker knocked to the ground by a line manager was suspended during an investigation of the incident while the line manager continued in her job. 'Women reported instances of sexual harassment, as well. Several workers said they or other contract (temporary) workers were offered a permanent job in exchange for sex.' Mistreatment of workers in the textile industry in Swaziland has been known for many years and workers have staged strikes and other protests to draw attention to the situation. In its report on human rights in Swaziland in 2013, the US State Department said wage arrears, particularly in the garment industry, were a problem. It said, 'workers complained that wages were low and that procedures for getting sick leave approved were cumbersome in some factories. The minimum monthly wage for a skilled employee in the industry - including sewing machinists and quality checkers - was E1,128 (US$113). Minimum wage laws did not apply to the informal sector, where many workers were employed. 'The garment sector also has a standard 48-hour workweek, but workers alleged that working overtime was compulsory because they had to meet unattainable daily and monthly production quotas.' A damning report on Swaziland's textile industry called Footloose Investors, Investing in the Garment Industry in Africa, was published in 2007 by SOMO - Centre for Research on Multinational Corporations, in Amsterdam, The Netherlands. It said the Swaziland Government gave companies a large number of incentives such as tax exemptions and duty free importation of raw materials. The Government also allowed companies to take all profits and dividends outside of Swaziland, which in effect meant that there was little or no investment within Swaziland from the companies. With a change of world trading conditions, Swaziland became less attractive to foreign companies. In order to maintain profits the companies began to lobby the Government for changes in the law. The companies especially wanted laws and regulations regarding labour loosened. SOMO concluded, 'It seems that the public spending on building shells and infrastructure aimed at attracting foreign investment in the garment industry has not brought about much economic benefit so far.' The report stated, 'Companies have been asking for certain "incentives" in exchange for their continued production in the country, implying that the country owes them something for their presence. 'One of the companies in Swaziland, for example, Tex Ray, announced its willingness to set up a textile mill but asked in return for less stringent labour laws and laws on the environment, and for the prices of electricity and water to be halved. They also felt that government should subsidise the wages.' In September 2014 hundreds of workers at Tex Ray were affected by poisonous chemical fumes at the factory in Matsapha. Many needed hospital treatment and the factory was closed for several days. The Swazi Observer newspaper reported allegations from workers that retrenchment was a way for the company to avoid liability. The newspaper reported that other textile factories, including Kartat Investments, Kasumi and Union Industrial Washing, continued to operate. In May 2015, it was estimated 3,000 people in the textile industry lost their jobs when the United States withdrew trading benefits under the Africa Growth Opportunities Act (AGOA) because of Swaziland's poor record on human rights which included workers' rights.

Source: AllAfrica.com

Back to top

E-commerce giant Amazon in talks with Turkish producers for home textile products

A procurement committee from the European branch of the global e-commerce giant Amazon has arrived in Denizli, an industrial city in southwestern Turkey dubbed as "the capital of textile," to meet with Turkish exporters and visit home textile companies. Top executives of Luxembourg-based Amazon Europe, including Shibu Thrakan, Otavio Alves, Krishna Murali and Gül Sönmez, who were hosted with support from Turkey's Ministry of Economy, met Thursday with exporters from the Denizli Exporters' Union  (DENİB). Amazon officials presented possible ways of cooperation and also provided information regarding trading methods in the Amazon platform. Thrakan said that Turkish companies can be involved in the Amazon platform under the Amazon brand or with exclusive brands and products they will develop specifically for the platform. Highlighting Turkey's favorable geographical location, Thrakan said the availability of daily shipments to almost every point in Europe is an important advantage. DENİB Chairman Süleyman Kocasert told Anadolu Agency that they expect Amazon EU to quickly increase its purchases from Denizli within a short period of time. "There have recently been very positive developments regarding Amazon's point of view toward Turkey. Turkey has a strong potential for e-commercial business. Amazon noticed that as well. I hope that our cooperation will bring good results as soon as possible," Kocasert said. He noted that following a visit by officials from another e-commerce giant Alibaba.com, Amazon officials were also able to see the production technology, quality and delivery speed at the manufacturing sites. E-commerce is growing rapidly in the world, but in Turkey it is in its initial stage, Kocasert said, adding that cooperation with Amazon platform will provide essential increase for the country's trade. Kocasert noted that e-commerce has a share of less than 5 percent in the total exports of the home textile sector. "We aim to increase e-commerce infrastructure by two, three or even fourfold. In the next three years, the share of e-commerce in Denizli's total trade volume will increase above 5 percent and we will be talking about two-digit figures for 2023," he added. Pointing to Amazon's preparations to enter the Turkish market, recently reported after the e-commerce giant founded a Turkish subsidiary in Istanbul, Kocasert argued that these developments will have a positive effect on the purchasing process in Turkey.

"I think these are processes that have a complementary, domino effect on each other. Amazon is in talks with the Ministry of Economy to enter the Turkish market," he said. "Amazon is very big in the U.S. and Europe and has, recently, been very pleased with their structuring in China and India, as well as Brazil. We can say that Turkey will be the next successful market." Denizli is a center for Turkey's home textiles production. Products from the city are exported to 165 countries worldwide. According to recent figures, the city's towel exports to the U.S. increased by 23 percent during the first eight months of the year and were recorded at $55 million compared to the same period last year. Turkey is also one of the largest home textile suppliers of Europe. The overall home textile exports in 2015 were recorded at $3 billion, and the major markets for exports were Germany, the U.S., U.K., France and Russia. Amazon.com is a U.S.-based e-commerce and cloud computing company, founded by Jeff Bezos on July 5, 1994, in Seattle, and it is on Forbes' most innovative companies list. Operating with 341,000 employees worldwide with annual sales of $135 billion, the company's market value for 2017 is $427 billion.

Source: Daily Sabah

Back to top

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers, has acquired Source Africa and ATF, two of Africa’s largest textile, apparel and footwear shows. This acquisition will supplement Messe Frankfurt’s current portfolio of textile related trade shows under the umbrella of 'Texpertise Network'. Previously, the shows were hosted by oragniser LTE.  "We believe that Messe Frankfurt South Africa possesses the resources, skills and experience, globally and with the help of our Texpertise Network, to grow these events further," said Konstantin von Vieregge, CEO of Messe Frankfurt SA. "We are honoured that LTE has selected us as preferred partners, and look forward to working with them to ensure we take both events to a new level. Messe Frankfurt SA is committed to ensuring the growth of these industries in South Africa, and wants to expose the country's potential to the rest of the world."  "The primary reason for Source Africa and ATF is to promote African made apparel, textiles and footwear and to encourage interaction between international and regional buyers, manufacturers and suppliers. The event also aims to boost investment into the region and ensure sustainable job creation within the sector," explained William Scalco, member at LTE.  "It is encouraging to note that South Africa has just signed the EAC-COMESA-SADC Tri-partite agreement. The agreement will offer the advantage of reduced tariffs on goods traded between the tripartite countries and create new opportunities for intra-regional trade," added Scalco. "We firmly believe that Africa is ideally placed to take full advantage of these opportunities."  Source Africa is scheduled to take place at the Cape Town International Convention Centre (CTICC) during June 20-21, 2018. The 2017 ATF trade show will take place during November 21-23 at the CTICC in Cape Town.  With this acquisition, Messe Frankfurt strengthens its textile activities in Africa. In October 2017, Messe Frankfurt will partner for the first time with Africa Fashion and Sourcing Week in Addis Abeba, Ethiopia. As part of the partnership, the three new trade fair brands Texworld Addis Abeba, Apparel Sourcing Addis Abeba and Texprocess Addis Abeba will be launched within the Africa.

Source: Fibre2Fashion

Back to top

Auschwitz museum opens new textile warehouse to display prisoners' clothes

The Auschwitz-Birkenau Memorial and Museum has completed the construction of textile warehouses designated for the display of prisoners' clothes, the museum announced Thursday. Work for the project, funded by the Auschwitz-Bireknau Foundation, started back in 2014 as part of the museum's efforts to improve existing preservation methods. The overall goal is to give longevity to the significant historical artifacts that silently stand testimony to the horrors that took place in the concentration and extermination camps managed by the Nazi regime during World War II.
Magadalena Emilewicz-Pióro, a conservator and deputy head of the collections department in the museum, explained that the important addition to the new textile warehouses is the specialized cabinets that were created for the purpose of storing the decades-old garments. "The major task was the construction of specialized cabinets for storing textiles that compiled all conservation requirements," she said. Hanna Kubik, who coordinated the project at the museum, added that the new cabinets are "equipped with various storage systems for textiles, such as rollers, drawers and shelves. The cabinets were designed for the storage of specific types of objects." Some 350 of the striped uniforms that are so synonymous with the terrifying, well-known images of the emaciated war prisoners at the camps will be transferred to the modernized warehouses. Also expected to be stored there are 250 tallitot and items of clothing that belonged to the camp's inmates, primarily Jews deported for extermination. Previously, "the camp clothes were folded and stored in boxes... storing them in such conditions could cause damage and significant adverse effects to the preserved fabrics," Emilewicz-Pióro explained.  The museum is known for its historically valuable and diverse display of different items utilized by those imprisoned in Auschwitz, with one of the most daunting displays consisting of a roomful of piles of shoes worn by the prisoners before they had been stripped away of personal belongings upon entering the camp, as well as fully intact clogs worn by prisoners and provided to them by the Nazi regime.

Source: Fibre2fashion

Back to top

Bangladesh Textile Mill Burns, Yet Again

A fire in Ideal Textile Mills in Bangladesh killed at least six workers this week, reportedly after sparks from welding set ablaze inflammable chemicals stored close by.  Soon, the blame game will begin. Perhaps there’ll be a government-ordered inquiry. Maybe someone will be sent to jail. Then it will be business as usual, and the six workers will join a growing list of those who died in factory tragedies there. Earlier this year, the Bangladesh Accord on Fire and Building Safety, a legally binding agreement between clothing brands and unions, was renewed. The accord covers more than 1,600 garment factories. Under the revised agreement, the accord steering committee can opt in textile mills. This means the mills could also be subject to fire and building safety inspections, and management and workers could be trained on safety measures. Instead of rallying around the Bangladesh Accord, the Bangladesh government has protested its extension. Unhelpfully, the government also announced it will begin a “new” initiative on fire and building safety. The Bangladesh government authorities already inspect about 1,550 garment factories not covered by the accord or the Alliance for Bangladesh Worker Safety (another fire and building safety initiative led by American brands). In addition, government authorities inspect factories in sectors not covered by the accord or alliance, including textiles. Over the past few years, the accord brands cut ties with 76 garment factories that failed to make their buildings safer. Similarly, the alliance brands terminated business with 158 garment factories. These factories are now the responsibility of government inspectors. How have these terminated factories fared? Has the government ensured that the factories took steps to make the workplaces safer? Were any of these factories closed down as unsafe? Who knows. In 2017, Human Rights Watch spoke with workers from four terminated factories. They had no knowledge about whether the government had inspected their factory and declared it safe. As one worker said, “We came to know it [the factory is not safe] only from some staff. We also asked the owner about it once. He only said that everything will be fine. ... We used to see fire drills here on the first Thursday of every month. But we haven’t seen this in the last three months – I don’t know why… I get worried when I think that our factory building is unsafe. But still I have to continue the job because I need it.”  If the government wants to be considered a credible labor inspectorate, it should at least publish reports on how factories terminated from the Accord and Alliance are faring. It’s not just an investment in transparency. It’s also a strategic investment in business.

Source: Human Right Watch

Back to top