Textiles (147)
Turkey’s exports of textiles and raw materials increased by eight per cent in the first half of 2018.
Exports to Italy, the most important export market for Turkey in this sector, rose by 5.8 per cent. Exports of textiles and raw materials to Germany, the second important market, were up 8.3 per cent compared to the same period of the previous year. Exports to Bulgaria, the third major export market, declined by 13.7 per cent.
The most exported product in the first half of 2018 was woven fabrics. Woven fabric exports increased by 8.3 per cent compared to the same period of 2017. The second most exported product was yarn, which constitutes 18.1 per cent of total textile exports from Turkey. Exports of the third important product group, knitted fabrics, increased by 2.3 per cent. Turkey is one of the world's leading manufacturers of knitted fabrics. Fiber exports, the fourth most exported product group, increased by 16.9 per cent.
Turkey’s technical textile exports increased by 20.1 per cent.
As Turkey’s textile exports grow, the country’s textile manufacturing companies will have to upgrade their machinery, parts and components, as well as the manufacturing processes. Turkish textile companies are also being encouraged to consider technical collaboration with foreign partners.
For the second quarter, Oerlikon’s order intake increased year-on-year by 26.8 per cent while sales went up by 36.6 per cent. Ebitda for the second quarter corresponded to a margin of 17.1 per cent. Ebit was 10.8 per cent of sales. The second quarter performance resulted in an improved rolling 12-month return on capital employed of 10.7 per cent. In the first half of 2018, the group’s order intake increased year-on-year by 35.4 per cent while sales came in 38.5 per cent higher than the prior year.
With top-line increase, ebitda for the half year corresponded to a margin of 16.4 per cent. Ebit was 10.1 per cent of sales. Net income for the first half of the year increased significantly by 136.2 per cent year-on-year. In the first six months of 2018, Oerlikon’s service business contributed to 39 per cent of total group sales. Based on the strong set of results in the first half of 2018, Oerlikon is confident it will be able to sustain growth and is thus raising its outlook for the year.
For the full year 2018 continued operations, group ebitda margin is expected to exceed 15.5 per cent after accounting for increased operating expenses from higher investments.
Indian polyester and blended yarn exports increase by 50 per cent
Written by FWAs per an analysis of Textile Beacon’s Fibre to Yarn Trade Statistics – India’s exports of polyester and its blended yarns, over the past five months, have recorded year on year increase of over 50 per cent in value terms. Growth had almost doubled in March this year.
The average price realisation of spun yarns between June 2017 and June 2018 increased almost US cents 10 a kg, from $2.74 a kg to $2.83 a kg. The highest US cents 15 was in case of 100 per cent polyester yarn, US cents 11 in poly-cotton and US cents 7 in poly-viscose yarns.
In June, India exported 100 per cent polyester yarns worth $11.5 million to 49 countries at average unit price of $2.49 a kg with volume at 4.6 million kg. During the month, 9.8 million kg of PC yarns was exported worth $27 million while 4.7 million kg of PV yarns were exported worth $14 million. Globally, Turkey is the largest importer of polyester yarn, followed by Brazil and US. Bangladesh, Colombia and Egypt are the largest importers of PC yarn from India while Turkey is the single largest importer of PV yarns from India followed distantly by Pakistan.
Merino wool brand Toorallie growing from strength to strength
Written by FWAustralian brand Toorallie, is emerging as one of the bright stars of Australia's wool industry and it is the younger consumers who are propelling its growth. Run by two identical twins Simon and Steve Smith, Toorallie is well aware of this emerging market.
The brand flourished for a decade — making colorful, bulky knit jumpers and classical knitwear. But by 2004, cheap Chinese clothes were flooding the Australian market. Sales of woollen clothing had stagnated. Fashion, ever fickle, had moved on. The business collapsed under a mountain of debt. But Steve and Simon Smith had devoted their prime years to the brand and never considered walking away.
The brothers brokered a business partnership with Peter Small, a veteran woolgrower who had spent decades processing Australian wool into fine yarn. Small became a co-owner with two other silent partners and the re-born Toorallie has gradually gone from strength to strength.
The company now supplies more than 250 retail outlets in Australian and New Zealand markets. All its fleeces are sourced from Pooginook, a famed wool growing property near Jerilderie in southern New South Wales. The Smith brothers are excited about the growth prospects for Merino clothing, domestically and in emerging markets such as the Asian middle class.
Scoring high on corporate governance, Coats enters the FTSE4Good UK Index
Written by FWCoats, the world’s leading industrial thread manufacturer and a major player in the America’s textile crafts market, has entered the FTSE4Good UK Index. The company scored especially highly on the metrics around governance, particularly corporate governance and anti-corruption. Coats’ entry to the FTSE4Good Index comes after its entry to the unrelated MSCI Global Small Cap Index in May 2018. Additonally, in June 2018, Coats marked the one year anniversary of its re-entry to the FTSE 250, having been a founding member of the FT 30 index in 1935.
The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices which are clearly defined and transparently managed. It is used to create financial products which focus on sustainable investment as well as for benchmarking, research and reference.
After years of stockpiling cotton, China is re-emerging as a major consumer of US cotton. This shift together with poor growing conditions in Texas has sent prices surging to a six-year high. The world’s most populous nation has purchased futures contracts covering more than 3,61,000 bales of US cotton for 2019-20. That is enough to make 400 million T-shirts. China has never booked that much cotton that far in advance at this time of the year, in data going back to 1998.
China is the biggest taker of forward sales. China’s return to global cotton markets is likely to mean a period of higher prices for a fiber used in most apparel, textiles and upholstery. It is also a boon to US producers who have long labored under a market whose prices investors perceived to be capped by China’s cotton stores, which for years have accounted for more than half of all global stocks.
The shift has revived interest in markets that were until recently seen as being overshadowed by Chinese policy. Open interest has reached all-time highs for this time of the year. China intends to raise cotton import volumes, a move that could increase Chinese purchases of American fiber.
The International Conference of the European Industrial Hemp Association (EIHA) will be held from June 12-13, 2018 in Cologne, Germany.
Around 350 participants from 40 countries are expected to participate in the event that will discuss the latest developments from all areas of the hemp industry – from seeds to the end product. Around 20 exhibitors will present their latest technologies and products in the event.
A major highlight of the conference will be an innovation award for the Hemp Product of the Year, presented for the first time ever. This award will honor three products – each from the areas of food, cosmetics and biocomposites. Participants will select the winners per category based on a short introduction of the products. The award winners will then be announced during the dinner ceremony.
The event will be organised by the German nova-Institut in close cooperation with the European Industrial Hemp Association. The day before the conference, EIHA will host expert workshops for members, meet representatives from Canada, USA and China.
International Textile Machinery will be held in Turkey, June 2 to 6, 2020, starting on June 2, as additional day, instead of June 3.
This is a textile machinery show. The event displays textile equipments and products, textile related software and solutions and other products and services. It gathers together some of the most important manufacturers of textile machinery from Turkey and around the world.
ITM is a showcase for weaving, printing, digital printing, flat and circular knitting, weft and warp knitting, spinning, winding, twisting, texturing, hosiery, quilting, dyeing and finishing machinery, textile chemicals, lab equipments, compressors and generators. The show held in April 2018 achieved great global success. There were foreign visitors from 94 countries, a high number of domestic visitors, an increase in the number of machines exhibited and a rise in the dimensions of exhibitor booths. Both national and international companies made sales of millions of euros. Hundreds of various business connections were established. Over 1150 textile technology manufacturers and company representatives from 64 countries participated at the exhibition and exhibited their products and technologies.
Most textile machinery manufacturers in Turkey range from small to medium sized companies. The line of textile machinery products manufactured by Turkish companies varies substantially from highly automated equipment to basic models. They have competence in most machinery categories such as atmospheric jet dyeing or blow dyeing.
Chinese textiles and clothing exports, according to WTO, have declined sharply from US$236 billion in 2014 to US$206 billion in 2016. Its share by value in the global textile and clothing market also declined from 38.6% in 2015 to 35.8% in 2016. As per Chinese customs data, exports of clothes and accessories fell by 0.4% in 2017, while textiles exports saw annual growth of 4.5% during the year.
Hit by the industry restructuring, big clothing brands in the country are struggling to retain margins and secure finance. Revenues are depleting at Fuguiniao, a Hong Kong-listed menswear and shoe manufacturer based in Fujian, since 2015. The company reported a net loss of 10 million Yuan (US$1.57 million) in the first half of 2017, a bond default this year, and it has debts piled up at 3 billion Yuan.
Cotton prices have increased from around Rs 350 to Rs 400 per quintal and are likely to remain high due to an increase in international market prices. According to P Alli Rani, CMD, Cotton Corporation of India (CCI), cotton prices usually increase during this time in the season due to slowdown in arrival. And with increasing demand from spinning mills and ginners, these prices are likely to remain firm for sometime.
So far, 320 lakh bales have arrived in the market and the season is likely to continue for another 30 days. Arrivals have slackened to 0.5 lakh bales a day, thus increasing the prices. According to cotton ginners, market sentiment is positive due to the speculation that demand from China is surging due to depleting buffer stock. China, earlier, had a buffer stock for one-and-a-half years and this has now reduced to a year’s stock. Exports from India, therefore, are likely to touch 75 lakh bales instead of the originally estimated 65 lakh bales.
More...
The textile industry in India may be made to buy cotton and jute from farmers at least at the minimum support prices. This move is part of efforts to ensure a 50 per cent profit to farmers over their cost of production. The proposal — fraught as it is with serious implementation challenges — could spell trouble for the labor-intensive textile and garment industry.
MSP for cotton will increase by at least 28 per cent in 2018-19 from the current level. Cotton accounts for roughly 60 per cent of yarn costs and yarn makes up for 50 per cent of fabric costs. Fabric, in turn, makes up for 50 per cent of garment costs. So higher cotton prices will push up costs in the entire value chain and jeopardise its competitiveness.
The idea is being mooted at a time when garment production has dropped for 11 months in a row and exports have contracted for a seventh straight month through April, with most units reeling under elevated costs.
Garment production dropped 11 per cent in 2017-18 and exports contracted almost four per cent even though the country’s overall merchandise exports rose 9.8 per cent. Also, the proposal will potentially render the Cotton Corporation of India irrelevant.
The textile sector in Pakistan will get an enhanced supply of natural gas.
Availability will be increased to 42 per cent from 28 per cent i.e. from two days a week to three days a week.
Pending refunds of exporters will be paid in the next fiscal year in various installments starting from July 2018.
The industry wants refunds to be paid where refund orders have been issued. Exporters say the rebate on exports announced in the textile package has not been paid and consequently the liquidity problem of the textile sector has worsened.
Refunds have not been processed for one-and-a-half-years. Pending refunds of the industry up to December 2016 are yet to be paid. As a result of the delay in refunds, more than 30 per cent of the cash flow is blocked now.
Exports grew by 18 per cent, but the seven per cent rebate on exports was not paid, say exporters.
Exporters want a supply of natural gas three days a week during Ramazan because LNG is becoming an expensive input for them and making their exports uncompetitive in the global market.
The textile industry in Pakistan contributes 57 per cent to the country’s exports. The country is working on upgrading its supply chain, improving productivity, and maximising value addition.
Saurer’s vision is to become a smart industrial solutions and services provider. Based in Switzerland, Saurer is a global leader in rotor spinning and winding machines. It developed the first hand-knitting machine in 1869, the first automatic embroidery machine in 1912 and invented the modern truck in 1905. Saurer is a technology group focusing on machinery and components for yarn processing. Saurer Technologies specializes in twisting and embroidery as well as engineered and polymer solutions.
The group has developed a technology centre in Switzerland. This will work closely with existing research and development departments of the Saurer Group. The center will combine Saurer’s leading expertise in sensor technology and automation with the latest innovations of Industry 4.0.
Saurer’s central development philosophy is summarised in the formula E3+I, which stands for Energy, Economics and Ergonomics plus Intelligence. The formula symbolises Saurer’s efforts to manufacture machines with maximum production efficiency, minimum energy consumption and pioneering ergonomics and at the same time it intelligently integrates all of the data gathered during production with a view to putting in effect, for example, self-optimising systems, intelligent quality control or preventive maintenance.
The group has evolved from being a machinery and component supplier to a leading provider of intelligent solutions and services for processing fibers and yarns.
Mozambican products to have free market access in the European Union
Written by FWProducts from Mozambique will have access to the European Union market without the imposition of quotas or payment of customs duties. The Mozambican government and the European Union (EU) delegation in the country launched on Friday the implementation plan of the Economic Partnership Agreements (EPAs) between six countries of the Southern African Development Community (SADC) and the EU.
Mozambique exports to the European Union mainly aluminium, agricultural products such as sugar, tobacco, nuts and vegetables, as well as fish products, notably shrimp and imports manufactured goods, machinery, means of transport and chemicals. The APE guarantees access to the European market without customs duties or quotas, for all goods coming from Mozambique, except for weapons and armaments.
Under the new agreement, a textile product can enter EU tax-free if at least one phase of its production, such as weaving or knitting, has occurred in one of the countries.
Over a period of 10 years, Mozambique will gradually remove customs duties on about 74 per cent of its imports from the European Union.
