FW
Lativia-based fabric manufacturer, Lauma Fabrics has acquired 100 per cent shares in the German textile company Elastic Textile Europe. The aim is to find new clients in western markets. Lauma is a leading manufacturer of lace, elastic knitted fabric and ribbons in Europe. Its key markets are Belarus, Baltic countries, Ukraine, Poland, Russia, France. But the firm now hopes to attract new clients in western markets through the latest purchase and obtain knowhow and additional production capacities. In addition, the acquisition will strengthen Lauma’s position in the CIS countries.
Elastic Textile is a leading manufacturer of flexible fabrics, lace and innovative products for laundry, bath textiles as well as sportswear and technical textiles. Elastic specialises in rich, soft and modern fabrics used for the making of shaping underwear. The company supplies its Elastic brand products to leading producers of lingerie in Europe.
Lauma and Elastic will establish an integrated strategy to develop a modern and innovative production that is able to offer clients original products of high quality at competitive prices. The combine would retain production of goods manufactured by the German textile firm in addition it would also be manufacturing high value-added textile goods as well as Lauma Fabrics products.
www.laumafabrics.com/en
The International Home Textiles and Furnishings Fair will be held at the Hong Kong Convention and Exhibition Centre from April 20 to 23, 2014. The three-day exhibition will showcase a wide range of bedroom, bathroom and kitchen textiles, carpet and floor coverings, upholstery and furnishing products as well as curtains and window fashion accessories. It is a specialist trade platform giving exhibitors and buyers of home textiles immediate access to markets in Asia and beyond.
The fifth edition of the fair is expected to attract over 220 exhibitors from six countries. Besides Chinese and Indian manufacturers, who are well known for their high quality textiles, the fair will also feature exhibitors from the Czech Republic and Taiwan. The fair is structured to include a number of themed sections. Hall of Glamour will feature home furnishing and household textile products, covering towels, bedding, curtains and carpets. Window Fashion & Accessories Zone will feature woven, readymade curtains, blinds and accessories for functional and decorative purposes. Other zones are: Baby & Bedroom Textiles, Bathroom & Kitchen Textiles, Carpet & Floor Coverings and Upholstery & Furnishing Products. The Hong Kong Houseware Fair will run concurrently. This is a comprehensive spectrum of household-related products and textiles which will be showcased for one-stop sourcing ease.
www.hktdc.com/fair/hkhometextilesfair.../HKTDC-Hong-Kong-Internati...
For the past three years, China was importing world's surplus cotton while its own production entered the reserves. Exporters were able to unload their surplus in China as the world's largest country imported nearly 56 million bales. China, in effect, was absorbing extra supplies from the world market, thus supporting global prices.
For the 2014 marketing year, that dynamic seems to be changing. China now plans to stop building cotton reserves. China's stocks are projected to remain stable and increase in world stocks will occur in other countries. China’s import quotas are expected to be more or less the same, but quantities above the required tariff-rate quota are expected to be less than in recent years. The changes in the cotton policy may alleviate some of the pressure on China's textile mills and provide more competitively priced fiber. As a result, mill use in China may see a modest growth to 36.4 million bales, leaving a 6.3 million bale differential with production.
China's cotton production is estimated to fall to 30.1 million bales, down from 33 million bales in 2013. Smaller imports by China and increased stocks outside of China imply that the US faces very competitive markets for its cotton. The US annually exports more than 70 per cent of its cotton production.
Fast fashion retailer Primark has committed to eliminate the use of hazardous chemicals from its supply chain by January 1, 2020. The brand will step up work on supply chain disclosure as well as outlining an APEO, PFC and Phthalates elimination policy. Primark will also ensure supply chain transparency by mandating manufacturing facilities to upload data on hazardous chemical discharges via a publicly accessible platform.
From budget retailers like Primark, to luxury houses like Burberry, brands are committing themselves to sustainable production. Toxic-free clothing is becoming a fashion trend in the industry. In fact, Adidas has done notable work in this direction in areas such as dry-dyeing, designing out waste and supporting up-cycling.
Unlike conventional dyeing methods, which require an average of 100 to 150 liters of water to process a kilogram of fiber, dry-dyeing uses a pressurized form of carbon dioxide in lieu of regular water. Heated up to 31° C and pressurized to 74 bar, carbon dioxide takes on the characteristics of both a liquid and a gas. This allows the substance to penetrate fibers and disperse preloaded dyes without extra chemical agents.
Up-cycling is the process of converting old or discarded materials into something useful and often beautiful.
Owners of readymade garment factories in Bangladesh who prevent trade union activity among their workers can face legal action. The US government has persuaded Bangladesh to implement an action plan for developing a conducive environment in readymade garment units after the industry was hit by a series of building collapses and factory fires.
Allowing freedom in trade union practices is one of the key components for restoration of the Generalised System of Preferences (GSP) facility in the US market. The US suspended its GSP facility to Bangladesh in April 2013 following several industrial disasters. Now the US is interested in working with the government of Bangladesh to restore GSP benefits at the earliest appropriate time, based on progress made to address the items in the action plan.
The US GSP is a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 designated products. Products that are eligible for duty-free treatment under GSP include most manufactured items, many types of chemicals, minerals and building stone, jewelry, many types of carpets, and certain agricultural and fishery products.
The Bangladesh government is working to create a database with all information regarding registration of trade unions and inspection of factories. There is an allegation that a vested quarter, mainly involved with management of the readymade garment factories, has been creating impediments to formation and operation of trade unions.
Trade unions in Australia have voiced their support for garment workers in Cambodia who have been facing repression while campaigning for a decent, living wage. Among the Australian bodies supporting their case are: the Australian Council of Trade Unions and Textile, Clothing and Footwear Union of Australia. They have signed letters calling for the immediate release of all arrested workers, provision of medical treatment for the injured and an agreement on a minimum wage for the textile and garment industry. They say there should be no repression of workers fighting for a living wage.
The over 5,00,000 workers in the Cambodian textile industry are being paid paltry wages even though Cambodia’s garment industry has an annual turnover of $5 billion. The Cambodian economy has enjoyed growth due to many corporations relocating there from China. And much of this growth has been in the textile and clothing sector.
Strikes and protests regularly embroil Cambodia's garment industry. Workers in toil in poorly ventilated factories and work overtime to eke out a living. The garment sector accounts for more than 80 per cent of Cambodia’s exports and is the bedrock of the country’s economy.
Turkey feels India must phase out textile export subsidies gradually as it has reached export competitiveness. Subsidies hurt Turkey’s interests since its textile and apparel producers have to compete with subsidized Indian textile and apparel producers in domestic and export markets.
India’s textile and apparel export to Turkey has increased significantly in the last couple of years. Turkey’s textile and apparel exports were around $17 billion in 2013. In December 2008, Turkey implemented safeguard measures for all cotton yarn imports but subsequently after consultations with India, eliminated the safeguards a few years later even though cotton yarn is a crucial component of Turkey’s textile production.
The World Trade Organisation had calculated the export competitiveness of textile and apparel products from India. These calculations showed that India had reached export competitiveness on these products as far back as 2007, if not earlier.
Turkey has strong historical and cultural relations with Central Asia, Caucasia, West Asia and the Mediterranean region. It wants to extend its economic and commercial ties to these regions. Turkish companies are interested in exploring business opportunities in India. The two countries have decided to start talks on the Comprehensive Economic Partnership Agreement within the next three months and conclude the agreement as soon as possible.
The government of Bangladesh has taken steps to launch hotlines for workers in the readymade garment sector. These will enable workers to report violation of rights, fire and building safety and related issues. This is a complaint mechanism, where callers will have their identity protected. The service would also help them inform the authorities of any harassment or obstacles to trade union activities.
While apparel makers have admitted the necessity of hotlines for the RMG sector, at the same time they have stressed the need for a mechanism for addressing grievance inside factories. They have expressed apprehension that the hotlines might be misused. They fear false reporting, which might cause a heavy damage to the business and reputation of a factory. They want measures to be enacted to prevent misuse, legal protection for factories and provisions for awarding damages as compensation.
Bangladesh’s garment factories have of late been hit by a series of fires and accidents and even building collapses. The country’s safety record has become a matter of international concern and major brands and retailers which source from Bangladesh want the country to take corrective measures and ensure compliance with global norms and practices.
Sri Lanka’s apparel industry wants stronger trade ties with China. And one way is through tie-ups with Chinese home grown brands. Apparel makers in Sri Lanka feel the need to align themselves with whichever country the Lankan government has a free trade agreement (FTA) with. And China may soon be one of them.
Efforts to drive the Sri Lankan apparel sector into a new growth phase may hinge on the potential FTA with China. Since China is a massive market, if Lankan exporters can capture even a small percentage of this market, it could lift up the entire apparel industry. An FTA which grants Sri Lankan apparel exporters access will open up a host of opportunities.
The Chinese market has grown manifold and there is good demand for luxury goods because of the large spending capacity. As a result of rising income levels the Chinese market has become a brand and quality conscious.
And while the Lankan government is looking for increased trade concessions with China, the two countries have a history of bilateral relations stretching back to 60 years.
Pakistan wants India to open up its markets for textiles imports. Exporters in Pakistan say India has to dismantle its tariff and non tariff trade barriers. Since Pakistani textiles have opened outlets in Dubai, London, New York, Toronto and many other countries, where Indians live in large numbers, the next step would be to reach out to the over one billion plus population living in India itself.
However, India and Pakistan face vastly differing situations. Electricity cost in Pakistan is 15 cents per unit compared with only 9 cents in India. Interest rates in Pakistan are 20 per cent higher than India’s, increasing the financial cost of the industry. India is a net exporter of cotton after fulfilling its domestic needs while cotton production in Pakistan always remains short, forcing the industry to resort to import of this vital input.
India has a very liberal regime of rebates and subsidies. It for example provides 3 per cent rebate on export of yarn and fabric. This further reduces the cost of Indian textiles. Besides various subsidies offered by the states the central government in India provides 2 per cent rebate on interest to its industries for upgradation of technology.
