FW
VF Corporation and the World Bank Group's International Finance Corporation (IFC) have provided loans to three Bangladeshi garment factories under a new funding program for fire and building safety improvements. Through the financing arrangement, apparel and footwear giant VF provides a full guarantee for up to $10 million that the IFC and its partner, BRAC Bank, lend to the company's contract suppliers.
This guarantee makes it possible for IFC to lend at lower interest rates. It is designed to help VF suppliers in Bangladesh overcome financial obstacles to improving workplace safety conditions. The first three loans have been issued to Arunima Sportswear, Olio Apparels, and Radisson Apparel. The owners will use the capital to invest in safety upgrades such as the installation of fire sprinklers, fire doors and detection systems, along with other necessary repairs and safety precautions.
Providing these loans to help supplier factories fund the necessary improvements is another positive step forward in VF's efforts to ensure the safety of the people making VF’s products in Bangladesh. The program is part of VF's efforts to help suppliers achieve performance standards for assessing and managing environmental and social risks and impacts, and labor and working conditions.
It is also designed to help enable factory owners meet the stringent standards set forth by the Alliance for Bangladesh Worker Safety, of which VF Corporation is a member.
www.vfc.com/
Shanghai Challenge Textile Company, a Chinese company, has purchased 14.6 million shares of Pakistan’s Masood Textile Mills. This is a first-of-its-kind deal in Pakistan in which a Chinese group has acquired a majority stake in a local textile company. Chinese investors hope to have the advantage of better cotton prices and cost-effective labor by investing in a Pakistani company.
Masood Textile Mills is a vertically-integrated textile manufacturing company with in-house yarn, knitting, fabric dyeing, processing, laundry and apparel manufacturing facilities. It posted a pre-tax profit of Rs1.1 billion in 2013, which was 13 per cent higher than its pre-tax earnings in the preceding year. It produces value-added textile products, whose exports to the European Union are expected to increase due to the GSP Plus status that Pakistan has received.
Shanghai Challenge Textile Company is engaged in the production and distribution of high-graded outdoor fabrics and apparels. The company operates its business through weaving, dyeing and processing of knitted fabrics as well as the production and distribution of apparels, accessories and specialty textile products.
China is investing billions in Pakistan. These are mostly centered around the energy sector. Pakistan suffers from chronic electricity shortages and has long sought investments in coal-fired power stations. Chinese companies will help build at least four new power stations in Pakistan, while the deals also cover the supply and mining of coal.
www.challenge-21c.com/en/
Pakistan is yet to announce the new textile policy for 2014-19. This has created a lot of uncertainty for exporters. The government had announced several schemes in the Budget for 2014-15 as a part of the new textile policy, but in the absence of any textile policy, the sector is not getting the benefit of these schemes.
The textile sector contributes about 55 per cent to the country’s exports, besides providing millions of jobs. However, there has been no sign of a textile policy for about five and a half months. The previous textile policy (2009-14) failed to meet its targets. Initiatives could not be implemented due to shortage of funds and the energy crisis.
As announced in the finance bill 2014-15, a sum of approximately Rs 80 billion has been earmarked for the textile sector support schemes over a period of five years. Drawback for local taxes and levies would be given to exporters of textile products on FOB values of their enhanced exports on an incremental basis if increased beyond 10 per cent over the previous year's exports at the following rates; garments four per cent, made-ups two per cent and processed fabric one per cent. The incentives will be provided to exports made in 2013-14 (calendar year 2014) compared to exports made in 2012-13 (calendar year 2013).
A business directory has been launched for the benefit of Bangladesh entrepreneurs. It contains more than 25,000 addresses of global apparel buyers in 160 countries. The aim is to help Bangladesh entrepreneurs expand their export destinations and thus post higher growth of exports.
It also gives information such as import statistics, lists of importable items, and tariff and non-tariff structures on knitwear and woven garments across the globe. Bangladesh hopes to become a middle income country by 2021 and to reach export earnings of $50 billion. The country has started exporting goods to non-traditional markets apart from the traditional ones. Chile, for instance, will grant Bangladeshi products duty-free market access from January 2015.
The readymade garment (both woven and knit) sector is a prime source of the country’s foreign currency incomes. Of the over four million employed in apparel sector 80 per cent are women. Knitwear factories in Bangladesh have maintained an aggregate 12 per cent growth. There are efforts to increase knitwear exports by seven per cent within the next seven years.
However, a serious hurdle exporters face is that of irregular supply of power, gas and water. As a result knitwear factories are now running to just 60 per cent of their capacity.
The Bangladesh Bank will formulate a separate risk management guideline for the textile sector aiming to get most green outputs necessary to be competitive in the global market. The bank has already given an environment risk management guideline for the financial sector and would give a separate sector-specific risk management guideline for the textile sector.
The guideline is aimed at making the textile sector socially responsible, induce it to adopt green practices, make the production process sustainable and avoid water and energy waste. It urges business to adopt a broader, societal view while pursuing profit.
The corporate sector is being induced to invest in green practices as this will give it a long-lasting competitive edge in terms of wages, ethical business and being responsive to laborers. The tax implication of CSR expenditure implies that money should be spent in a transparent way.
Bangladesh’s textile sector contributes 80 per cent to the country's export and 30 per cent to the GDP. It is becoming the lifeline of the country and most banks have been investing in this sector. Some 52 per cent of corporate boards in the world address corporate sustainability and 65 per cent of CEOs have developed policies and strategies for a more sustainable operation.
White Milano fair will take place from January 17 to 19, 2015, in Italy. It is expected to host 180 brands, both men’s and women’s, 20 per cent more than last edition, while hosting more upper sportswear and sports-inspired collections. White is an unconventional fashion expo. Both buyers and exhibitors get the feeling of being in a dynamic avant-garde showroom. Every season it attracts about 20,000 buyers from around the globe.
In general, White has introduced a new way of putting on a trade show. It has a fashion-forward spirit and selects and hosts companies from all over the world, offering a complete range of fashion proposals – from high end brands to niche labels – with the common denominator of fine quality. The event will also showcase apparel and fashion accessories, banks and financial institutions, beauty and fragrance, confections and gift assortments.
The fair wants to become even more attractive for global visitors through a series of new initiatives and a more diverse offering of brands. In January important international buyers visit Italy. Compared to Paris, Milan has much more to offer considering the high number of specialized fashion showrooms it hosts. In order to attract key international and Italian visitors White Milano not only wants to present the coolest trends of the moment but also the newest products discovered through its worldwide scouting.
www.whiteshow.it/
Bread & Butter's Berlin show that was to be held from January 19 to 21, 2015, has been canceled. This is a trade show that provides a creative marketing and communication platform for selected brands, labels and designers. It covers denim, sportswear, street fashion, function wear and casual dress up. The first show opened in 2001 when it started as an off-show for selected brands. It was meant to be a reaction to the stuffy and uncool presentation of jeans and accompanying gear at the long established trade shows.
Over the years it acquired a reputation as an international specialist trade fair for street and urban wear. It became a meeting point for buyers, traders and representatives from the textile industry. One reason for the cancellation is that the organizers could not motivate sufficient number of exhibitors to participate. The business has changed substantially due to the boom in online trade and the rise of the so-called vertical brands. Heritage denim brands were no longer interested in showing up at Bread & Butter.
However, the cancellation did come as a shock to the fashion and retail world and especially for the jeans, street wear and men’s casual fashion sectors. A similar show was to be held in 2015 in South Korea. The fate of this is uncertain.
www.breadandbutter.com/
There are more than a 100 countries importing Pakistani textile products. Textiles make up 52 per cent of Pakistan’s total exports. Pakistani textile products that are exported include: cotton, cotton yarn, cotton cloth, articles of apparel and cloth, art silk and synthetic textile, tents and other canvas goods, bed wear and towels and knitwear.
The Pakistan textile exporting industry has received a bonanza from the government in the form of a duty drawback on customs duty paid on import of raw materials used in manufacture of textile products meant for export. The repayment of duty would be available on the export of 100 per cent cotton or blended polyester/cotton. The imported raw materials cover a range of inputs including enzyme, sodium persulphate, hydrogen peroxide.
The country’s textile and garment exports to the EU have risen on the back of the GSP Plus status. Pakistan is also negotiating to raise exports to EU in non-traditional sectors. The two sides also have decided to establish a dedicated energy dialogue to strengthen cooperation and exchange of information, leading to actual investment and funding of major energy projects.
Numerous opportunities are now presenting themselves to Pakistani exporters as a result of widespread trade negotiations with various countries and trading blocks.
Textile technologies that deliver performance properties are becoming common in lifestyle and urban products. In particular, denim fabrics are becoming more functional through treatments that repel water and mud. As a result, a durable water repellent textile technology, Ecorepel, is gaining attention.
Ecorepel mimics the protective function found on feathers of waterfowl. The environmentally sound textile finish is based on paraffin that is in honeycomb-like chains that wrap around the fibers. This is said to reduce the surface tension of textile so that water and mud simply run off the textile. Ecorepel is free of fluorocarbons and is biodegradable. The technology is also wash- and abrasion-resistant.
NanoSphere is another textile finish that repels oil, water and dirt. It’s used for denim by some brands. It mimics the natural self-cleaning effect of certain plants whose leaves always remain clean, because dirt simply cannot adhere to the finely structured surface, and is easily washed off when it rains.
The protective function of NanoSphere is retained after frequent use and numerous washes. Water or such substances as ketchup, honey, coffee or wine run off. And if they don't happen to run off of their own accord, they can easily be rinsed off with a little water.
The Istanbul Yarn Fair will be held from February 5 to 8, 2015. This is the world’s most comprehensive yarn fair. It gathers participants and visitors from more than 75 countries and has become the sales and marketing platform steering global yarn commerce. Among the products on display are: acrylic yarns, cotton yarns, elastane yarns, embroidery yarns, nylon yarn, polyester yarns, sewing yarns, silk yarns etc.
Exhibitors can meet qualified visitors from different places of the world and Turkey, strengthen their brand visibility, be together at the same platform with manufacturers, suppliers, importers, and non-governmental organizations, strengthen their current customer and dealership network. Istanbul Yarn Fair is one of the most important textile meetings in Turkey and a platform where professional visitors, buyer groups and investors from Eurasia and Africa meet and exchange information.
The event showcases products from the textile, fabric and yarn industries. Two other fairs will be held simultaneously. These are: Texpo Eurasia 2015, where all segments of textile machinery industry are exhibited; and Ifexpo 2015, where underwear and socks manufacturers will attend.
Exports of Turkish textile and ready-made clothing machines increased 11.6 per cent for the first half of the year compared to the same period of the previous year.
www.istanbulyarnfair.com/
