FW
Taking a cue from the US, the European Union (EU) has launched a new legal challenge at the World Trade Organization over duties and quotas China imposes on its raw materials exports. The EU says, China has been violating WTO rules with restrictions on exports of key materials such as graphite, cobalt, chromium and magnesia which help Chinese industry at the expense of European companies and consumers.
By filing a similar action last week before the WTO, the US government observed that when China joined the WTO in 2001, it agreed to eliminate such export duties but had failed to follow through on the commitment. The US has said that it had expanded its complaint to include all the same materials covered in the European action.
These raw materials are essential for a broad range of industries from aerospace and car manufacturing to electronics and chemicals. In Washington, the US trade representative’s office said China’s export duties ranged from five to 20 per cent, raising prices for overseas buyers while Chinese companies paid much less and had more secure supplies. In addition, the export duties put pressure on non-Chinese manufacturers to shift production, technologies and jobs to China.
South African private equity firm Jacobs Capital has acquired Gelvenor Textiles. This means that Gelvenor is now a 100 per cent South African company. Gelvenor manufactures industrial, technical apparel, outdoor lifestyle, protective and aeronautical fabrics. Even though the two operate under the same parent company, they will continue to operate separately in the market as independent entities.
The new ownership will not result in any material changes in agreements with Gelvenor’s suppliers. Most importantly, the company’s sustained growth means there is no need for staff changes. Instead, the emphasis will be on further innovation and research as part of a drive to position Gelvenor as a global leader in the production of specialist fabrics. In the longer term, this could see the company expand and create further job opportunities.
Plans are in place to grow production of aeronautical textiles by at least 30 per cent in the next year through the production of light and thin fabrics for rescue parachutes as well as capture additional market share in the paragliding market.
The sale is very positive for Gelvenor as Jacobs Capital supports its sustainable business model and its strategy of continuing to place Gelvenor at the forefront of specialty and technical textiles.
Even though Vietnam’s textile and garment exports showed growth in the first half of this year, local firms are facing difficulties in obtaining production and export contracts for the second half of 2016, says the country’s Ministry of Industry and Trade (MoIT). To support local firms, the ministry has proposed the development of large textile and garment industrial zones on 500 – 1000 hectare of land to attract local and foreign investment in dyeing, and fabric and yarn production. The ministry has also proposed the government provide full support for the building of textile and garment industrial zones located in provinces and cities experiencing socio economic difficulties, in order to create conditions for the success of small and medium startups enterprises, according to the ministry.
The proposal also targets the development of transport infrastructure connecting large industrial zones to ports and logistic centres to reduce transportation costs. The Vietnam Textile and Apparel Association (VITAS), that sent a document to the Government detailing the difficulties of textile and garment enterprises and proposed solutions, supports the plan of Industrial zones (IZ) plan mooted by MoIT.
To this, VITAS suggested that the Government should provide credit for enterprises to build waste water treatment centres at those industrial zones. According to a ministry report, export showed a six per cent increase in the first half of this year to $12.8 billion. The industry also saw growth in the export value to its major markets including the US, increasing by 5.9 per cent to $4.29 billion; Japan with an increase of 2.9 per cent to $1.04 billion and South Korea with exports 15.58 per cent higher at $764.9 million.
Raymond faced a consolidated net loss at Rs 16.61 crores for the first quarter ended June 30, 2016. Total consolidated income from operations during the quarter under review was up 4.81 per cent. The company had posted a consolidated net loss of Rs 14.47 crores during the April-June period of the previous financial year.
In the current quarter Raymond witnessed subdued consumer demand with early onset of end of season sales in addition to a volatile global economic environment. Notwithstanding these challenges it was able to register growth in topline and EBITDA at the consolidated level, which speaks well of the resilience of its brands and distribution network.
Raymond makes a variety of fabrics -- from wool to wool-blended worsted suiting to specialty ring denims as well as high value shirting. The group is vertically and horizontally integrated to provide customers total textile solutions. It has a diverse product range of nearly 20,000 varieties of worsted suiting to cater to customers across age groups, occasions and styles.
The Raymond product range includes pure wools, wool blended with exotic fibers like camel hair, cashmere, angora and innovative blends of wool with polyester, linen and silk, suiting and trouser fabric.
Cinte Techtextil will take place in China from October 12 to 14, 2016. More than 500 exhibitors from 23 countries from across the globe are expected to be present at the fair. The product variety on offer covers the entire industry including technology and machinery, woven and knitted fabrics, nonwovens, coated textiles, composites, surface and bonding techniques, fibers and yarns and more.
Svenskt Konstsilke from Sweden will feature its range in high performance yarns, with an objective of extending business in China and Southeast Asia. With a similar aim, Toscana Spazzole Industriali from Italy, manufacturers of needle punching machines and resellers, will exhibit its latest technological advancements.
DiloGroup will display product samples made from recycled carbon fiber material. The group will also present its needled nonwoven products which can be applied in geo textiles, filter media, automotive fabrics, roofing materials, synthetic leather, natural fiber felts and more.
Cinte Techtextil China is Asia’s leading biennial trade fair for technical textile and nonwoven products. The daughter show of Techtextil in Germany, Cinte Techtextil China covers twelve application areas which comprehensively span the full range of potential uses of modern textile technologies. The full coverage of product groups and applications enables the fair to become a tailor-made business solution for the entire industry.
To be held from September 16-18 this year at the Paris Nord Villepinte, Première Vision Paris will promote and coordinate the complementary offer of its six shows within one homogenous, coherent and efficient event. This would reflect a continuity with prior editions that saw synergies and transversality strengthened between the show's many activity sectors and know-hows.
The show's unique creative offer and affirmed high-end and selective positioning respond more than ever to the needs of global creative fashion professionals looking to stand out in a context of instability and heightened competition. In a continuingly complex world, where markets face multiple threats political, security, economic - the creative force of Premiere Vision Paris strengthens the solidity of a unique and attractive ensemble Building on its values and an unmatched selective offer - the industry's largest and most diversified - the global event for fashion professionals promises a dynamic edition rich in inspirations and innovative collections for autumn winter 2017-18.
With 1,898 exhibitors as against to 1,924 in September 2015, a drop of -1.3 per cent, the offer is growing in terms of exhibition area. These investments reflect certain optimism on the part of exhibiting companies which are focusing on the development of more fully developed collections to serve an expected increase in the number of clients. They also reflect the impact and influence of the Premiere Vision Paris show on the industry's business activity.
The India International Garment Fair (IIGF), held from July 18 to 20 at Pragati Maidan, New Delhi, hosted 416 exhibitors from across the country. The garment fair was organised to provide Indian exporters an opportunity to exhibit their array of products to buyers from across the globe. More than 1,500 international buyers and 1,000 along with buying agents kept the atmosphere pulsating at the Fair during the three days.
The 57th IIGF was witness to a significant milestone with regard the industry’s foray into new markets. The Apparel Export Promotion Council (AEPC), India’s largest export promotion council signed a memorandum of understanding (MoU) with the Tehran Garment Union (TGU). Incidentally, TGU is an influential manufacturers and retailers association with legislative power in terms of Garment Commercial affairs in Iran. As part of “Iranian Specialists Garment Committee and other advisory bodies, TGU provides policy consultation to the government.
Ashok G Rajani, Chairman of AEPC and Mohamad Javad Sedghamiz, Vice President of TGU signed the MoU on behalf of Indian and Iranian bodies respectively. The MoU would remain effective till July 18, 2017. Ajay Tamta, Minister of State (MoS) for Textile commented, the fair provided Indian exporters an opportunity to exhibit their products that meet the international quality and technology standards. He said that events like these give a boost to the ‘Make in India’ programme, as the platform encourages smaller player and new entrants to work towards making it a reality. The minister expressed hope exporters would focus on employment generation which is the real need of the hour.
While the AEPC, the largest Export Promotion Council, has over 8000 members for the promotion of apparel exports from India, TGU has nearly 20,000 members - all garment manufacturers, distributors and retailers in Tehran.
As per the Iranian guild system rules which have been approved by Parliament, Iranian business licenses are not issued by neither municipality nor government but by guild unions that are part of the private sector. In practice, no one has the possibility of producing or selling garment in Tehran without obtaining license and membership of TGU.
Coming back to New York City for its 7th edition, Home Textiles Sourcing Expo that went on from July 12 to 14, welcomed exhibitors and buyers to the show floor with grace and warmth. As a long-term joint venture partnership between Messe Frankfurt and CCPIT-Tex, and one of the largest events in North America to focus solely on textiles and finished soft goods for all home applications, the Expo has become a go-to event for manufacturers, retailers, jobbers, converters, contract specifiers and designers.
This month’s edition once again showcased products in six categories, including: upholstery, bed, bathroom, table, window and floor. The summer 2016 edition of the Expo saw over 126 exhibitors representing 8 countries including Turkey, Pakistan, Egypt, China, India, USA and Vietnam. Both the Turkey and Pakistan pavilions returned to the show with over 200 sq. mt. space showcasing premium home goods. High-quality cotton, premium bedding and luxury bath textiles were also on display among July 2016 exhibitor product offerings. The Expo ultimately welcomed a total 858 verified visitors from 45 countries across three days while the co-located textile and apparel sourcing trade shows, Texworld USA and Apparel sourcing USA showed strong visitor attendance.
The Lenzing Innovation seminar series once again proved to be a big draw for attendees as were the brand new Industry Boot Camps. Several home trend-focused seminars and boot camp sessions catered specifically to the home market and spoke directly to issues that Home Textiles Sourcing attendees are facing in the industry.
More than 15 years after it signed up to the African Growth and Opportunity Act (AGOA) but fell short on exploiting the quotas, Uganda now feels that relaxing the country’s trade rules could possibly boost exports under the program. Uganda's minister of Trade, Industry and Cooperatives, Amelia Kyambadde wants the US government to relax rules of origin (ROO) under AGOA and expand the list of eligible products allowed under the program. The minster attributes Uganda's poor performance under the AGOA to the strict ROO.
She feels, the current arrangement is that a value addition level of 35 per cent must be attained on products whose inputs are imported from non- AGOA (countries in order to export them under the AGOA. The threshold of 35 per cent on value addition is very high for an LDC country like Uganda. She was recently speaking after meeting the US ambassador to Uganda, Deborah Malac, on the upcoming annual review for AGOA. The review for annual review of the performance of AGOA is scheduled for September this year.
Uganda is one of the beneficiaries of Agoa that provides for duty-free treatment for about 6,500 goods from eligible sub-Saharan African countries imported into the US market. The country’s exports to the US under AGOA include agricultural products, forest products, textiles and apparel, foot-wear, and minerals and metals. Uganda's main export has been textiles and apparel. Kyambadde says, Uganda's export under Agoa dropped from $3.3m in 2010 to $1.15 million in 2014. She attributed this poor performance to the limited list of eligible products for export to the US market under AGOA.
Exporters in Turkey have written to their customers and investors saying that production in Turkey goes on as usual in spite of the recent turmoil. The letter will be sent to apparel giants and will corroborate evidence of the strength of democracy in Turkey and the solidity of the Turkish economy will be explained to Turkish exporters' commercial partners. Exporters' unions are also planning to place an ad in key international newspapers regarding the strength of Turkey's democracy.
Representatives of foreign newspapers will be called as well. The aim is to send a message to domestic and international markets.
Customers have been told that companies have continued daily operations without delay in every field from production to export. The letter will be sent to customers in English.
Demand from the EU accounts for 70 per cent of Turkey’s clothing exports.
The cost of sourcing from Turkey is 30 to 40 per cent higher than in countries like China and India. But Turkey’s ability to offer shorter runs as well as turnaround times of between four and five weeks is proving increasingly beneficial.
The apparel sector in Turkey exports around 60 per cent of its production. The capacity utilization rate is around 75 per cent.
