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MR/TECH/WPP-362/North/2019-21
RNI No: MAHENG/2003/14851 Posted at Mumbai Patrika Channel Sorting office on 1st/2nd
Regd. No. MCN/318/2019-21 of same month & 16th/17th of same month
Published on 1st and 16th of Every Month
ISSN 2230-8725
VOL. 18 No. 04
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August 16-31-2020 Textile Excellence
In The Public Eye 3
I
n order to strengthen The two-day event will processed by the advanced friendly jacquard fabrics,
cooperation between take place on August 25-26. dope dye technique which soundless QUICKLOCK, and
Taiwan's textile industry On Day1 (August 25th) allows it to save more ener- jacquard digital woven fab-
and the international textile four sustainable firms will be gy and water. Yi Shin Textile rics for shoes.
community, with the support presenting their eco-friendly Industrial Co., Ltd. will talk Tex-Ray Industrial Co.,
of the Bureau of Foreign solutions: Creative Tech about its biodegradable Ltd. will display its waterless
Trade, the Taiwan Textile Textile Co., Ltd. will show- Magic Yarn that can be con- colour dye solution ECO-lor
Federation (TTF) has organ- case its award-winning SEA- verted into energy. along with ECO-HD Print
ised a two-day online WOOL® & SMAWARM® fabrics Day2 is reserved for the technology and fashionable
streaming event, where that are made from oyster remaining four companies. anti-microbial protective
eight premier textile manu- shells and recycled bottles. Asiatic Fiber Corporation clothing.
facturers will showcase their Evertex Fabrinology announced its IQMAX®relax- The two day online
latest innovative, sustain- Limited will showcase its es your muscle with just one streaming event will be held
able and intelligent products physical mosquito repellent touch on your smart phone. via TTF's Textile Export
and display Taiwan's com- fabrics with microfibre This will be showcase to an Promotion Project (TEPP)
petitive advantage in func- reduction properties to the international audience. official Facebook and
tional, environmental and table. Men-Chuen Fibre Singtex Industrial Co., YouTube on 25th and 26th
smart fabrics to the global Industry Co., Ltd. will intro- Ltd. will showcase its August, 10AM CEST.
textile industry. duce its OMBRE Yarn STORMFLEECE, a single
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4 special report Textile Excellence August 16-31-2020
E
squel Group, one of the sanctions list for hiring Committee for Esquel's does not use forced labour,
world's largest gar- forced labour in Xinjiang. Changji mill in Xinjiang to be and we never will use forced
ment producers and "Esquel has been falsely removed from the US sanc- labour. We absolutely and
supplier for such brands as associated with forced tions list immediately, as categorically oppose forced
Tommy Hilfiger, Patagonia labour," vice-chairman John required by section labour. It is abhorrent and
and Nike, said it has written Cheh said in a July 20 letter, 744.16(e) of the Export completely antithetical to
to the US Commerce adding that the Hong Kong- Administration Regulations. Esquel's principles and busi-
Secretary Wilbur Ross to based company would lodge Esquel Changji, a unit of ness practices," Cheh said in
appeal against the decision a detailed, formal submis- the garment producer in a his letter to Ross.
by his office to put it on a sion to the End-User Review county about 40 kilometres Contd. On Page 5...
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6 special report Textile Excellence August 16-31-2020
A
t a Chinese govern- the "impeccable, super-effi- region with a translator and Muslim ethnic minority
ment-owned John cient" cotton-harvesting buys up all the used John groups.
Deere showroom in machines he sells to indus- Deere cotton-picking Trade records show that
the Xinjiang Uygur trial-scale farms across the machines he can find. Their the United States has sold
autonomous region - the region. stories - combined with nearly half a billion dollars'
heartland of China's cotton Halfway across the world, extensive investigations of worth of heavy-duty cotton-
industry - manager Hu wor- farm-equipment dealers in customs data, shipping harvesting equipment to
ries that coming US sanc- the American South describe records and dozens of inter- Xinjiang since 2017, helping
tions over human rights a jet-setting Chinese buyer views with cotton-industry
abuses will cut him off from who criss-crosses that employees and experts in Contd. On Page 7...
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August 16-31-2020 Textile Excellence
special report 7
A record spike in China's Data reviewed by the 10,000 sqm (107,639 sq ft) without engaging with it in
purchases of cotton-harvest- South China Morning Post cotton-picking-machine fac- some way, experts say. "It is
ing machinery occurred just shows that the day after the tory in Xinjiang. The sales of not just in the fields, XPCC
before the Xinjiang sanctions Senate passed the Uygur American equipment help controls the irrigation and
were announced. Human Rights Policy Act of power the giant farming power systems too," said
In April alone, US and 2020 on May 14, more than operations of the Xinjiang Lianchao Han, vice-president
Chinese customs data shows 1,800 tonnes of premium Production and Construction at the Citizen Power
a 4,355.7% increase - to grade John Deere Corps (XPCC), which oper- Initiatives for China, a
US$ 117.8 million - in ship- cotton-picking machinery ates one-third of the cotton Washington-based lobby
ments of cotton-picking left US ports for China, farms in the region. group.
machines, compared with exported by John Deere The XPCC - also known as "The irrigation system
US$ 2.65 million in April (Tianjin) International, the the Bingtuan - was estab- was built by forced labour,
2019. This past May, China wholly-owned Chinese sub- lished in the 1950s, drawing and they are still using
imported a further US$ 94 sidiary of the storied mostly from decommis- forced labour to strengthen
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8 special report Textile Excellence August 16-31-2020
this. This is why you can't ing any entity in which the from selling their products to Texas Tech University in
separate it: XPCC irrigated XPCC owns, directly or indi- the US - alleging the use of Lubbock. "That's how they're
the entire region. I would rectly, a 50% or greater forced labour involving utilising a lot of that labour.
argue that everything is interest". Uygurs and other Muslim Either that or in processing,
tainted for this reason." Jernigan Global, which minority groups in Xinjiang. in gins. Just hot, heavy, hard
Before and after the cotton is publishes a weekly report Wang said that sanctions labour." Typically, auditing
picked, the XPCC oversees considered the cotton indus- against the XPCC were a firms would go in, inspect
other parts of the textile sup- try bible, called the sanctions "gross interference in China's and give businesses a verdict
ply chain too: irrigating the "a major move into the heart internal affairs, and a grave on whether their supply
fields (a necessity in arid of Xinjiang cotton". violation of basic norms gov- chain is linked to any human
northwestern China); run- "We've told US businesses erning international rela- rights abuses. But experts
ning the cotton through a to take a real, deep look into tions". Until late 2018, said those rules do not apply
gin, which separates cotton their supply chains," Chinese officials had denied to Xinjiang: any interaction
fibres from their seeds; spin- Secretary of State Mike the existence of arbitrary with the workforce there
ning it into yarn; and sewing Pompeo said after the sanc- detention centres and would almost certainly be
it into clothes. tions were announced. "I enforced political re-educa- conducted under intense
"It is very difficult to be don't think companies - tion, then mounted a count- government monitoring, and
involved in not just cotton, some brand names here in er-attack on the criticism of therefore not submittable in
but any kind of agricultural America - want to be con- its policies in Xinjiang. an audit, they said.
or industrial-scale activities nected to what's taking place According to some US In March, the Better
in Xinjiang now without the there." industry sources, "We feel Cotton Initiative, the world's
XPCC," said Michael Clarke, Asked if the firm would like the Huawei of the appar- largest cotton-supply-chain
an associate professor at the stop trading with XPCC, John el industry," he said. "Taking watchdog - used by brands
Australian National Deere spokeswoman Jen Xinjiang cotton out of your such as Gap, Nike and Levi
University in Canberra and Hartmann said: "John Deere supply chain is like telling a Strauss - said it was "sus-
an expert on the political his- has conducted business in company not to use oil from pending its assurance activi-
tory of Xinjiang. "This is not China for more than 40 the Middle East." ties" in Xinjiang for the com-
just any other state-linked years, providing equipment Human rights groups, ing cotton season, "based on
organisation in China." solutions to increase agricul- other industry executives the recognition that the
China's Ministry of tural output, improve food and experts said it is impos- operating environment
Foreign Affairs spokesman security, and support rural sible to know which cotton, prevents credible assurance
Wang Wenbin said that US development. We take com- which yarn, and which tex- and licensing from being
allegations regarding pliance seriously and monitor tiles coming out of Xinjiang executed".
Xinjiang were nothing but sanction developments may be linked to forced Whether John Deere and
"rumour-mongering and closely." labour. other companies end up
mudslinging". Less than two weeks ear- "Who's moving the irriga- pulling out of Xinjiang may
"The XPCC has made lier, the US Commerce tion pipe? Who's been hand- be seen as a test of the cot-
important contributions to Department added 11 com- hoeing? Who's doing the ton industry's malleability. To
promoting Xinjiang's devel- panies to its 'entity list' - hard labour?" said Darren date, the firm has shown lit-
opment, ethnic unity, social essentially blocking them Hudson, a cotton expert at tle public interest in distanc-
stability and border security ing itself from the region.
- living in harmony with all A potential unravelling of
ethnic groups as a friendly the cotton industry may also
and supportive companion," end up being seen as a test
Wang said. The dominant case for the push to decouple
XPCC has jurisdiction over supply chains from China in
seven cities in Xinjiang, many other integrated sec-
including Beitun and Shihezi, tors, particularly for firms
where there are multiple like John Deere that have
John Deere dealerships. gone all-in on the world's
On July 31, citing the second-biggest economy.
Global Magnitsky Act, the US The XPCC boasts that
Treasury Department more than 80 per cent of its
slapped sanctions on the cotton picking is now mecha-
XPCC for human rights abus- nised. Experts said that
es, giving companies until using a state-of-the-art cot-
September 30 to "wind
down" "transactions involv- Contd. On Page 9...
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August 16-31-2020 Textile Excellence
special report 9
T
he garment and textile tion because of the low qual-
industry is one of the ity. Downstream sector of
key industries in garment manufacturing
Vietnam with the second- accounts for around 70% of
largest export turnover in the the total apparel and textile
country. In 2019, the indus- sector in Vietnam with Cut-
try's export value contributed Make-Trim (CMT) models
to 16% of total GDP. In the being the main activities. In
past five years, the textile 2019, CMT accounted for
industry has continuously about 65% of total exports,
grown at an average rate of while the more advanced
17% annually. business models, like
In 2019, Vietnam's gar- Original Equipment
ment and textile industry Manufacturer (OEM) and
earned US$ 39 billion from Original Design Manufacturer
exports, a year-on-year (ODM) accounted for only
increase of over 8.3%, 35%.
according to the Vietnam exports to the EU, the US, (fibre production), mid- The US, Europe, Japan,
General Statistics Office. Japan, and South Korea. stream sector (fabric produc- and South Korea are the
Garment manufacturing tion and dyeing), and down- main export destinations of
accounts for the majority of Industry overview: 3 sub- stream sector (garment Vietnam's textile and gar-
businesses, at 70%. Major sectors manufacturing). ments products. Although
factors driving the growth of Vietnam's garment and Sub-sectors that produce Vietnam has a huge potential
the market are low labour textile industry consist of 3 fibres or fabric are mainly
costs and growing textile sub-sectors: upstream sector used for domestic consump- Contd. On Page 10...
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10 special report Textile Excellence August 16-31-2020
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August 16-31-2020 Textile Excellence
Fibres and Yarns 11
C
hina has bought more this year. That's created a believed to be destined for and supply chains remained
than US$ 1 billion disconnect between real the Chinese reserve system. open, retail clothing sales
worth of American cot- demand and purchases, If it moves into storage, it suffered immensely due to
ton in the past three months. which are running at the can be used against future closures," said Buddy Allen,
And it doesn't even need it. fastest pace since 2013. demand and offset future president of the American
The purchases - made as More than 50% of the purchases." The spread of Cotton Shippers Association.
part of the phase one trade defaults reported to the Covid-19 has caused havoc That caused a "tidal wave of
deal between Washington World Cotton Exporters in the global cotton industry, disruption through cotton's
and Beijing - are hitting just Association and the American hurting demand. World con- global supply chain creating
as the pandemic shuts down Cotton Exporters Association sumption is forecast to drop incredible costs, losses, and
clothing stores, decimating in the past year involved 23 million bales, the most on risks for participants."
demand. That means China's Chinese counterparts. record, the US Department With Chinese mills strug-
state-run companies are "Recent Chinese purchas- of Agriculture estimates. gling, performance on pur-
stashing away the cotton es have not been correlated China's mills haven't seen chases made prior to both
they bought, dimming the with downstream demand," any growth in orders since the trade war and the coron-
outlook for further imports. said Jon Devine, chief econo- June and 45% of the facilities avirus remains "weak," Allen
The trade deal requires mist for Cary, North Carolina- surveyed were losing money said. Other countries includ-
China to buy US$ 36.5 billion based researcher Cotton Inc. by the end of that month, 17
in US agricultural products "Much of that cotton is percentage points higher Contd. On Page 12...
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12 Fibres and Yarns Textile Excellence August 16-31-2020
B
angladesh's cotton higher after September if the
imports witnessed a international retailers contin-
slump for the first time ue to source their products
in over a decade last fiscal from Bangladesh at the cur-
year due to a fall in demand rent pace, he added.
from local mills amid a stun- Echoing the sentiments of
ning drop in apparel work Alam and Haider, BTMA
orders for the global coron- President Mohammad Ali
avirus pandemic. Khokon said that more than
In fiscal 2019-20, 50% of the annual sales tar-
Bangladesh imported 7.1 get for fabrics had been met
million bales of cotton, down by July. "I hope sales recover
13.4% from a year earlier, by more than 75% by
according to data from the September and fully by the
Bangladesh Textile Mills year-end." By January next
Association (BTMA). year, sales should return to
As in previous years, cot- tional markets. Besides, importer and consumer. its previous growth rate,
ton imports were on the rise many importers delayed Typically, Alam imports near- Khokon added.
up until February due to the releasing cotton shipment ly 33,000 bales of cotton Of the US$ 8 billion
high demand for yarn and from the port amid the coro- each year. One bale equals invested in the primary tex-
other fabrics from garment navirus outbreak. 480 pounds. Textile millers tile sector, Tk 20,000 crore
exporters. However, from Almost all of Bangladesh's also faced other issues, such has already been lost to the
March-June, due to the lock- domestic demand for cotton as having to preserve unsold coronavirus fallout, accord-
down, spinning and weaving is met through imports as stocks of yarn and other fab- ing to numerous millers.
mills were shuttered, and local growers can only supply rics. However, the previous About 11,000 micro,
demand for cotton went less than 3% of the country's inventory of such materials small, medium and large
down. When the nationwide annual demand. "Since last has reduced significantly due spinning, printing, dyeing
lockdown eventually came to month, the consumption of to the return of demand from and weaving mills were
an end on May 30, most mills cotton started growing as garment manufacturers. unable to produce any goods
resumed operations with garment factories resumed "So now, we will start in March and April for fear of
previous stocks of cotton production after about three importing cotton again," coronavirus contagion.As a
rather than importing more months," said Khorshed Alam added. Most garment result, the millers missed two
despite the significant fall in Alam, managing director of factories in Bangladesh are mega sales events, Pahela
price for the fibre in interna- Little Group, a leading cotton now running at 75% of their Baishakh and Eid-ul-Fitr.
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August 16-31-2020 Textile Excellence market report 13
Products
28-Jun
2020
12-Jun
2020
28-Jul
2020
12-Aug
2020
%
Change Cotton Market Insights
Multiple Uncertainties Leading
Brent 39.1 43.4 43.6 45.1 3.4K
PFY
POY 130/34 81 80 78 80 2.0K
POY 250/34
FDY 70/34
71
85
68
82
67
82
68
82
1.7K
1.4K To Limited Business Activities
FDY 70/72 88 86 85 86 1.3K
Some cotton growing regions
FDY 100/48 82 78 77 78 1.4K received heavy rainfall last week,
80 roto 91 90 88 90 1.3K some waterlogging was reported
80 Tex 87 86 85 86 1.3K in Northern India, but no crop
80/108 94 92 91 92 1.2K damage has been reported. Good
150 roto 81 78 77 78 1.4K monsoons are expected in Gujarat
150 tex 78 76 75 76 1.5K and Maharashtra. Standing crop is
150/108 85 83 82 83 1.4K reported in excellent condition as
of now.
50 flat 92 87 86 87 1.3K
As on 14th of August 2020, all
75 flat 84 82 81 82 1.4K
India cotton sowing was reported
150/48 Flat 81 77 76 77 1.5K
at around 12.55 million hectares
Nylon against 12.16 million hectares last
20/1 den 320 320 315 315 0.0 year at the same time (up by
44 den 255 255 250 250 0.0 Vimal Verma 3.2%). Out of which, Maharashtra
70 den 245 245 240 240 0.0 contributed 4.15 million hectare
I
PSF ndian cotton is trading in very followed by Gujarat at 2.27 million
1.4 den 66 67 66 75 0.0 narrow range, the market is hectares. Gujarat and
1.2/1.0 den 67 68 67 75.75 0.0 mired in lot of uncertainties of Maharashtra are still lagging in
price movement in the longer sowing area compared to last
Cotton price/candy*=355.62 kgs
term. This year nobody seems in a year. Telangana's area under cot-
Beng Desi (RG) 36400 36600 36600 36100 1.4L
hurry to start forward trading in ton rose to 2.35 million hectare
Beng Desi (SG) 37100 37300 37300 36700 1.6L
the new crop. (36.10% up from last year) fol-
V797 20500 20800 20600 20800 1.0K In normal times, from July lowed by Punjab at 0.5 million
Jaydhar 26100 25000 25000 24800 0.8L onward traders become active and hectare (25% up from last year).
J-34 33700 33500 33400 34100 2.1 start to sell/buy new crop for for- All India final sowing can be +/-
H4/ Mech 1 35700 35800 35600 35700 0.3K ward deliveries. But this year no 2% from last year. Better yield
Shankar 6 36400 36300 36300 36400 0.3K major forward business has been expectation can push crop num-
reported. bers higher for 2020-21.
Bunny/ Brah 37200 37200 37200 37500 0.8K
All India daily arrivals continue
DCH-32 53600 54000 54000 53500 0.9L
Good monsoons are good news to slow down and recently report-
Spun yarn
for cotton crop ed at around 15,000 bales on daily
30s p/c (65/35) 146 148 148 148 0.0 Monsoon played a vital role in basis. According to market
40s p/c (65/35) 158 158 158 158 0.0 timely sowing of cotton and its sources, all India total arrival till
40s p/v (65/35) 168 170 170 168 1.2L growth. Cotton crop is in vegeta- 10th August already crossed 36
45s p/v (65/35) 170 172 172 170 1.2L tive phase and is reported excel- million bales.
20s carded 120 122 122 122 0.0 lent across India. In northern part Currently Indian cotton is
30s carded 142 144 144 150 0.0 of India (Rajasthan), new seed cheapest in the world, traders
40s carded 193 195 195 193 1.0L cotton arrival has been reported in have received good export
limited quantity. inquiries from Bangladesh and
40s combed 212 214 214 212 0.9L
The weather is expected to
60s combed 253 255 255 252 1.2L Contd. On Page 14...
remain favourable for cotton.
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14 market report Textile Excellence August 16-31-2020
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August 16-31-2020 Textile Excellence market report 15
The Yarn Market Roundup ing at Rs 154 and is
expected to touch Rs 158
Y
arns are sending mixed of yarns are imported. out that the exporters are Overseas price trends
signals. On one hand, However, even imported out of the market at Bangladesh is sending
you have a shortage in yarns are now higher by 5 these prices, they would inquiries again. They had
good quality cotton pro- cents per kg. prefer sitting back and made their purchases for
pelling cotton and yarn 2) Cotton sheeting fabrics waiting for their preferred August in July itself and
prices up. On the other are in huge demand which prices to be available September to October are up
hand, fabric prices are dan- makes fine and superfine again. for grabs now. Prices in
gerously low pulling yarn counts difficult to find now. 60s compact weaving China are still compressed.
prices down. Spinning mills Almost all the wider-width yarn over the last one They refuse to accept higher
and their agents and dealers looms in India are packed till month saw an increase of prices from India. Border
are trying very hard, as October and some even till Rs 5 only to trickle back tensions have reduced but
always, to get better prices December. down. Same trends seen trade tensions are at peak.
from the markets but as 3) Demand from denims as with 40s compact. The Europe and Africa are buying
soon as prices are raised, well as sheeting has helped point where it will sell decent quantities.
the buyers go into a shell open end yarns sell well. smoothly is Rs 250 exfac- 16s carded is selling at
and are willing to wait it out Rapid bookings across the tory but this isn't the US$1.92 whereas 21s
till prices drop again. country have ensured prices price spinning mills are carded is at US$2.02. 21
The garment sector is the are back at decent levels happy with. combed knitting from
one reeling with uncertainty. after seeing a historic fall. 32s carded weaving yarns Gujarat is at US$2.20.
Be in weaving or knitting. are now below Rs 170 ex- 30s cotton knitting yarn
The gap between combed Price Trends factory. was sold at US$2.35-
and carded yarn is not what Cotton prices are up, There is a sudden spike in US$2.40 levels to various
it used to be. Since the polyester fibre is trending up demand for open ends. markets and deliveries
demand for premium appar- and so is viscose. Prices Prices are up and so are are still on. Exporters
el is at an all-time low right have been too depressed in the bookings. Good mills now quoting US$2.45 but
now, the demand for premi- all sectors that makes even a are booked till end of there is no business at
um yarns has dropped too. small increase seems like a September. Primarily this price.
Never have we seen carded surge. Cotton carded yarns because of the denim 10s open end is at
yarn selling at the same have slowed after an abnor- sector becoming active US$1.33, 16s at US$1.55
price as combed but it's hap- mal rise. again. Good quality 10s & 20s at US$1.70.
pening now and will probably 30s combed knitting yarn OE is selling at Rs 102
continue till the next festive is up from Rs 170 ex-fac- and 16s OE at Rs 110 (Deepak Periwal is Founder
season when consumers tory to Rs 176 ex-factory exfactory. & CEO, YarnLIVE)
step out to buy whole-heart- now. It's considerable 30s viscose yarn is trad-
www.TextileExcellence.com
16 Fabrics and apparel Textile Excellence August 16-31-2020
F
ive years ago, Sadeka "dearth of female middle and closures. As workers push for The former textile work-
Begum was working 12- senior managers" in overdue wages and the job- ers, who had to pass a rigor-
hour shifts in a garment Bangladesh's garment less seek to find work, the ous entrance exam for a
factory as the main earner industry. AUW graduates want to help place on their courses, said
for her family in Bangladesh. While up to 80% of gar- steady the sector and push adapting to academic life was
Today, the 23-year-old is one ment workers are women in for change by rising through challenging as was improving
of the first graduates of a largely junior positions such the ranks of management. "I their English.
special university pro- as seamstresses, the majori- want to see everyone with One of the graduates said
gramme that aims to inspire ty of senior management the same eye, it doesn't mat- she used to "just stare at
female workers to become positions are taken by men, ter what category someone's people" at the start because
leaders and boost women's UN data shows. working in," said former fac- her English was not good
rights across industries. Rubana Huq, who heads tory packer Yesmin Akther. "I enough, while another
Begum now interns for the nation's largest trade want people to behave well recalled practising the lan-
the United Nations Children's association for garment towards workers." guage in front of the mirror.
Fund (UNICEF) and hopes to manufacturers and was also A recent report by a Dipali Khatun, who is set
use her economics degree to involved in designing the United States's Senate com- to graduate in December,
launch a project to improve academic course, said seeing mittee found Bangladesh was said her ambition was to
the lives of the children of the graduates take on man- backsliding on garment work for a charity or to
Bangladeshi textile workers agement positions in the sec- workers' rights. Union lead- return to the garment sector
by addressing a lack of tor would inspire other ers faced intimidation, ham- in a human resources role
schooling and childcare. women to dream big. "They pering their ability to investi- where she could make a dif-
"I am an example of how have different exposure and gate claims of threats and ference. "I would ensure that
education can change a per- their outlooks are very abuse - mainly from female there is no bad behaviour
son," said Begum, one of fresh," Huq said. "They will workers - the report said. against any garment work-
four former garment workers be able to contribute to how Factory owners dismissed er," she said.
to graduate from the we look at female empower- the findings of the report as Kalpona Akter, founder of
Pathways for Promise course ment." inaccurate while local the Bangladesh Centre for
at the Asian University for researchers said verbal Worker Solidarity, said she
Women (AUW) - based in the Workers' rights at risk abuse of workers was more hoped all the garment work-
southeastern port city of Bangladesh is the world's prevalent across smaller fac- er graduates would return to
Chittagong. second largest supplier of tories and subcontractors. the sector rather than seek
"Garment workers are the clothes to Western countries other opportunities. "If the
reason why Bangladesh's after China, and relies on the Students from across 100 girls who are studying
economy is doing well," she garment industry for more Asia, Middle East get into 100 factories, that
added. "Their children than 80% of exports and four The university, funded by can bring change because
deserve better." million jobs. But the sector donors including the IKEA they have seen how difficult
About 470 disadvantaged has been rocked in recent Foundation and the Bill & lives are for workers," Akter
women including tea pickers years - first by the 2013 Melinda Gates Foundation, said. "If they join other
and refugees have enrolled Rana Plaza collapse, then by has female students from industries, they will be
for the free degree pro- the novel coronavirus pan- across Asia and the Middle empowered, but that won't
gramme since it started in demic. The 2013 disaster East pursuing degrees in help our situation."
2016, and receive a monthly sparked efforts to improve subjects such as public Yesmin Akther is one such
stipend while they study. labour rights and conditions health, philosophy and poli- graduate who wants to give
Dozens of ex-textile work- but the coronavirus outbreak tics. back. "My factory paid me for
ers are part of the cohort and led to thousands of garment The students from the the last four years and sup-
the AUW's vice chancellor, workers being laid off in garment sector receive full ported me so I could study,"
Nirmala Rao, said the univer- recent months as Western pay - worth about US$ 100 a the 23-year-old said. "Given
sity was involved in creating fashion brands cancelled month - from their employ- the chance, I would like to do
internships to tackle a orders due to global store ers while studying. This something good in return."
www.TextileExcellence.com
August 16-31-2020 Textile Excellence
Fabrics and apparel 17
www.TextileExcellence.com
18 Fabrics and apparel Textile Excellence August 16-31-2020
E
fforts to tackle child committee. Tirupur's top offi- be aggressively recruited as the area. He said labour
labour in garment fac- cial K Vijayakarthikeyan said industries unlock and the agents had taken advantage
tories in southern India the local administration had focus is on getting the econ- of schools being closed and
are being ramped up after since been carrying out more omy restarted," said job losses leaving families on
the rescue of 35 children factory visits in the major Prithviraj Sinnathambi, direc- the brink of poverty. The
from a spinning mill, officials garment hub to search for tor of charity Community Madras High Court respond-
said, amid concerns of an cases of child labour. Awareness Research ed by directing police and
increase in trafficking as "We are conducting an Education Trust (CARE-T). labour officials to inspect
coronavirus restrictions are enquiry and have instructed Indian labour laws ban the local garment factories and
eased. all our staff to update us on a employment of anyone aged present their findings at the
In one of the first cases of daily basis," Tirupur's dis- under 15 but children are next hearing in the case.
child labour reported in India trict-in-charge said. "A probe permitted to support family "One of the girls who was
since the pandemic, 32 girls against the mill has been ini- businesses outside of school rescued and went back home
and three boys were rescued tiated and all efforts are hours. This provision is wide- has shared details of her
in Tirupur in Tamil Nadu state being made to ensure this ly exploited by employers work conditions with other
last week following a tip-off rare case doesn't happen and human traffickers, child families," said Bhaskaran
to staff at Childline, a toll- again." As India slowly opens rights campaigners say. Mahalingam, project manag-
free emergency helpline for up after months of lockdown, India's home ministry last er at charity Centre for Social
children. activists are concerned that month issued an advisory Education and Development.
The children were forced more child workers will be asking state governments to "This has caused alarm and
to work 14 hours-a-day and recruited and exploited as protect children from traffick- more parents are reaching
given no days off, according industries re-open. ers and help identify and res- out for help to bring back
to the district's child welfare "Adolescents are likely to cue missing residents. The their children home safely."
www.TextileExcellence.com
August 16-31-2020 Textile Excellence
Dyes and Finishes 19
www.TextileExcellence.com
20 Industry news Textile Excellence August 16-31-2020
L
ast week, India's August 3. The All India
Textiles Ministry took Powerloom Board and the
some important deci- Jute Advisory Board were
sions to cut back on unpro- scrapped on August 4.
ductive spends. The ministry The industry is not too
has shut down five Boards, happy about the sudden clo-
notified that all eight textiles sures of these boards. In
research associations have many cases, these boards
ceased to be ''affiliated bod- were the only forum where
ies'' of the ministry. And will the government could get
also shut down two PSUs. direct feedback from the
The two PSUs that have stakeholders.
been identified by the min- woollen mills: one in Kanpur "desired profits". The ministry also notified
istry for closure are the and one in Dhariwal, Punjab. However, data provided that textiles research associ-
British-era British India According to sources, the by the company says it has ations (TRAs) shall hereafter
Corporation (BIC) and ministry is of the view that to generated a profit of Rs 397 be ''approved bodies'' for
Handlooms Exports implement the idea of "mini- lakh which is nearly Rs 40 conducting testing, research
Corporation of India. mum government, maximum crore after tax deduction in and developmental activities
Headquartered in Kanpur, governance" it is important 2018-19. As per records, the related to the textiles sector.
the 100-year-old British to identify loss-making com- company, which is famous Any disposal/sale/transfer of
India Corporation is famous panies and shut them down. for supplying beautiful arte- assets created out of the
for producing textiles for the BIC has constantly been run- facts to international audi- central government grant
armed forces, the company ning in losses for many ences, has registered nega- shall require prior specific
is also known for manufac- years. tive profit only for five times approval of the ministry, the
turing two popular brands of The Handlooms Exports in 24 years between 1996 to notification on TRAs said.
woollen products - Lalimli Corporation of India, founded 2020. It further said officials of
and Dhariwal. 50 years ago with the aim to The Ministry of Textiles the Ministry of Textiles are
Nationalised in 1981, with promote export of Indian had scrapped the 28-year- hereby withdrawn from the
nearly two thousand employ- handlooms, handicrafts, jew- old All India Handloom Board governing bodies of these
ees, the BIC operates two ellery, etc, failed to register (AIHB) in the last week of TRAs.
www.TextileExcellence.com
August 16-31-2020 Textile Excellence international trade 21
V
ietnam's total textile Statistics Office. Its largest 8.9% year-on-year to US$ 3 markets. Vietnam, among
and garment export export markets included the billion. According to the world's biggest exporters
value in the first seven United States, the European Vietnamese Ministry of and producers of garments
months of this year declined Union, Japan, South Korea Industry and Trade, some and textiles, made garment
12.1% year-on-year to near- and China. In July alone, garment and textile busi- and textile export turnovers
ly US$ 16.2 billion, according Vietnam's textile and gar- nesses have not received of roughly US$ 32.6 billion in
to the country's General ment exports decreased orders for the second half of 2019, up 6.9% from 2018.
I
n Bangladesh, apparel rics to renowned brands
exporters are witnessing worldwide.
the return of export AK Azad, managing direc-
orders, as European and tor of Ha-Meem Group, said
American retail markets start his factories are running at
to reopen. more than 60% capacity at
The signs of recovery for present. "My buyers have
the garment sector are also started placing work orders
evident in the export figures and gradually the volume of
of July when Bangladesh work orders is increasing." Of
earned US$ 3.24 billion from the cancelled work orders,
apparel shipment though the his buyers have already
amount is 1.98% lower than taken back 50% of them and
a year earlier. promised to take another
However, garment export 30%. The remaining 20%
receipts in July are 14.18% should be sold at cheaper
higher than the monthly amid the coronavirus pan- December," Rubel said, prices to other buyers, Azad
target of US$ 2.84 billion. demic. If more retail stores adding that they have been added.
Of the total garment ship- reopen in Europe and the US, able to completely reinstate "I am currently utilising
ments, knitwear exports garment exports from more than 90% of the 65% of my capacity. About
grew 4.30% year-on-year to Bangladesh will grow further cancelled orders. 80% of my work orders
US$ 1.75 billion while woven as the pandemic has failed to Abdullah Al Mahmud remained unaffected during
exports fell 8.43% to US$ dampen the demand for Mahin, managing director of the pandemic while 20% or
1.49 billion, according to basic apparel items, Mahin Group, said he did not less have been reinstated,"
data from the Export exporters said. face any work order cancella- said KM Rezaul Hasanat,
Promotion Bureau. Sweater factories have tion and currently, his factory chairman and chief executive
Earnings from apparel now put their best foot for- is utilising more than 70% of officer of Viyellatex Group,
shipment in April, May and ward to meet the deadline for its capacity. Work orders another leading garment
June stood at US$ 0.37 bil- the shipments of August, have been rising since exporter. PPE is a small
lion, US$ 1.23 billion and September and October, said mid-July at his factory. fraction of the clothing busi-
US$ 2.28 billion respectively. Mostafa Sobhan Rubel, man- If the current state of ness and it cannot even
Personal protective equip- aging director of Dragon business continues, Mahin's cover 10% of the total
ment (PPE), masks and other Sweaters. "My factories are company's earnings this year exports, he added.
hospital textiles made it to fully booked until the end of might be 20% less than last "Covid-19 has affected
the list of new export items September and my cus- year's, but if a coronavirus the garment sector in various
for Bangladesh as a good tomers have also booked vaccine arrives by ways. Initially, it broke the
number of buyers are placing 60% of my capacity from mid-September, they expect
Contd. On Page 22...
work orders for these items October towards the end of a 15% jump in profit.
www.TextileExcellence.com
22 international trade Textile Excellence August 16-31-2020
B
angladeshi businesses state of confidence of the number one challenge. "It neering, wholesale and
are progressively business community of should be handled firmly," he restaurant. The better per-
becoming confident of Bangladesh in the context of said. The SANEM developed formers were pharma and
a comeback from the brutal the socio-economic crises three separate indices based financial sector," said
blow dealt by the global engendered by the Covid-19 on the survey among 153 Raihan, also a professor of
coronavirus pandemic, pandemic, SANEM said. manufacturing and 150 the Department of
according to a recent survey. Despite the improve- service sector firms from all Economics at the University
Conducted by the South ment, businesses com- divisions to understand the of Dhaka.
Asian Network on Economic plained about increasing cost level of business confidence This quarter, businesses
Modelling (SANEM) in collab- of doing businesses and they among entrepreneurs in seem more confident than
oration with The Asia put corruption, problems of Bangladesh. the last quarter, he said.
Foundation among 303 firms trade and logistics and weak The indexes compared "The improvement is visible
representing manufacturing management of the coron- business confidence in three in all sub-components of
and services sectors, the avirus crisis as three major scenarios: the response in BCI, but still, the overall BCI
survey found that the overall challenges of doing busi- the April-June quarter with a is poor," he said adding that
confidence score increased ness. "Management of the year earlier and with the business confidence contin-
to 51 this quarter from health crisis is extremely previous quarter; and the ued to be low in the gar-
29.48 the previous quarter. important for boosting busi- July-September quarter with ment, leather, light engi-
The survey responses are ness confidence," said the immediate past quarter. neering and other manufac-
measured on a scale of 0- SANEM Executive Director Researchers considered six turing sectors as the BCI
100. A score in the range of Selim Raihan while present- indicators - profitability, showed a score of less than
0-50 means a deterioration ing the findings of the study investment, employment, 50 for these sectors.
of business confidence and a at a webinar. Corruption has wage, business & sales/ Overall profitability of
value above 50 indicates an emerged as the biggest chal- export-for developing the garment, leather and tan-
improvement, said the sur- lenge for doing business, he Business Confidence Index nery and light engineering
vey report. The survey was said citing that 88% of the (BCI). The overall business
carried out to assess the firms put corruption as the status in the second quarter Contd. On Page 23...
www.TextileExcellence.com
August 16-31-2020 Textile Excellence
international trade 23
I
ndia's exports of cotton Overall, cotton textile
textile products to China exports during the first
have seen a whopping quarter declined 47% to US$
74% decline to touch US$ 90 1.29 billion against US$ 2.42
million during the April-June billion in the same quarter
quarter this year. last year.
China's share in India's One of the main reasons
total exports of cotton textile for the decline was supply
products has also halved to chain disruptions. "Delays in
6.9% during the quarter as documentation, especially
against 14% in the corre- Certificates of Origin in
sponding quarter last fiscal. countries like China,
During Q1 last year, Vietnam, Thailand and
India's exports of cotton Malaysia also delayed deliv-
textiles to China stood at eries, hitting exports,"
US$ 346 million, according to Siddhartha Rajagopal, exec-
data available with The Chinese governments carried also contributing to decline in utive director, TEXPROCIL
Cotton Textiles Export out reciprocal measures like exports," K. V. Srinivasan, said. Delays at ports owing
Promotion Council (TEX- detailed shipment managing director, Premier to Covid-19 protocols quar-
PROCIL). inspections at ports, delaying Mills Pvt said. antine also led to the decline,
"Recently, Indian and clearing of goods, thereby Substitution of textile he said.
www.TextileExcellence.com
24 international trade Textile Excellence August 16-31-2020
I
n Uzbekistan, according Sewing & Knitting Industry", 2020 for the production of to the sale of products of
to the Presidential Decree investment projects to estab- finished sewing and knitwear well-known international
"On Urgent Measures to lish production facilities will products and semi-finished brands and the creation of at
Support the Textile and be approved by 1 September products demanded in for- least 1000 jobs.
I
n order to implement ther strengthen the digital Affairs Commission. ply, harness digital innova-
policies outlined in the economy, according to a Efforts will be made to tion to improve quality and
Government Work guideline jointly released by break away from stale think- efficiency in the real econo-
Report, China will support 13 government departments, ing and support new busi- my, and to advance
the healthy development of including the National ness formats and models 'Internet+' initiatives, big
new business models, stimu- Development and Reform that combine online and data analytics, the platform
late the consumer market, Commission and the Office of offline marketing as a major economy and other key
expand employment and fur- the Central Cyberspace breakthrough point for eco- growth drivers.
www.TextileExcellence.com
August 16-31-2020 Textile Excellence international trade 25
T
he First Protocol to the initiative, businesses Origin, when claiming prefer- ASEAN member states relat-
Amend the ASEAN may apply for Certified ential duty benefits for goods ing to intrabloc goods trading
Trade in Goods Exporter (CE) status, enti- exported and imported with- activities and is in line with
Agreement (ATIGA) has now tling them to duty free treat- in the ASEAN bloc. an earlier commitment to
been ratified by the Vietnam ment for their goods under The AWSC scheme is remove tariff barriers made
government, facilitating the ATIGA. Goods exported by expected to reduce time and as part of the Agreement on
country's move to join an CE status holders will no costs for exporters, while the Common Effective
ASEAN wide origin of goods longer be required to secure also streamlining customs Preferential Tariff Scheme for
Self Certification (AWSC) ATIGA e-form D, which clearance procedures among the ASEAN Free Trade Area
scheme. Under the terms of served as a Certificate of ASEAN members. It is (CEPT/AFTA).
www.TextileExcellence.com
26 international trade Textile Excellence August 16-31-2020
A
n extension for up to USTR is now considering a customs broker) submitting chased from domestic and
12 months of specific possible extension of these on behalf of an organisation third-country sources in
exclusions from the exclusions and will evaluate or industry, and (if so) the 2018 and 2019;
Section 301 additional tariff each on a case by case name of the third-party The commenter's gross
on List 1 goods from main- basis. The focus of this eval- organisation; revenue for 2018 and 2019;
land China is under consider- uation will be whether the The number for the exclu- Whether the excluded
ation by the Office of the US product at issue remains sion at issue, as provided in product is sold as a final
Trade Representative. available only from mainland the annex of the applicable product or as an input;
Comments on these poten- China. Federal Register notice; Whether the imposition of
tial extensions may be sub- In requesting an exten- Whether the product is tariffs on the excluded
mitted during 1 30 August. sion of an exclusion, subject to an anti-dumping product will result in severe
List 1 goods have been commenters should submit a or countervailing duty order; economic harm to the com-
subject to an additional 25% comment form with the Whether the commenter menter or other US inter-
tariff since 6 July 2018. following information. supports or opposes extend- ests; and
Three sets of exclusions Full legal name of the ing the exclusion and why; Any additional information
from this tariff issued in organisation making the Whether the excluded in support of the extension
October 2019, December comment, whether the com- product or comparable prod- request.
2019 and February 2020 are menter is a third party (e.g., ucts are available from
set to expire on 2 October. law firm, trade association or sources in the United States
Women Gain Key Economic Benefits tries they work, how much
they earn, and whether or
not they are involved in
T
rade increases vate, improve productivity, Trade Organization, marks women and men differently.
women's wages and and provide higher income the first major effort to "Over the past 30 years
helps close the wage and more opportunities to quantify how women are trade has been the engine of
gap between men and their people. Countries that affected by trade using a poverty reduction. This
women while creating better are more open to trade, as new gender-disaggregated report shows that, provided
jobs for women, a new World measured by the trade-to- dataset. The dataset, devel- the right policies are in
Bank Group report con- GDP ratio, have higher levels oped by the World Bank place, it can also provide an
cludes. Countries that are of gender equality. Group, allows researchers to engine to reduce the gender
open to international trade The report, produced in understand how women are
tend to grow faster, inno- collaboration with the World employed, in which indus- Contd. On Page 27...
www.TextileExcellence.com
August 16-31-2020 Textile Excellence
retail Update 27
www.TextileExcellence.com
28 retail Update Textile Excellence August 16-31-2020
A
s lockdowns are eas- consulting company. "In tively immune to economic net worth of US$ 64.6 bil-
ing, shoppers are markets like China, where downturns, according to lion, but H&M's Stefan
returning, more so in lockdowns have been Dairo Murata, senior analyst Persson with a US$ 16.4 bil-
Asia. Japan's wealthiest per- removed and where there is at JP Morgan in Tokyo. lion fortune is in third place
son, Tadashi Yanai, whose a huge population base, "Economic cycles and fash- after Yanai.
Fast Retailing owns clothing there is a growing demand." ion trends do not have much
brand Uniqlo, has benefited Uniqlo shuttered half of impact as it's a supplier of Uniqlo Japan July Sales
handsomely from this its 748 stores in China after ordinary life clothing and Improve By 4.7%
rebound; the billionaire has the lockdown was imposed in rooted in real demand." July 2020 same-store
added US$ 9.2 billion to his January, gradually reopening Even so, the retailing sales including online sales
fortune since Forbes' World's them all in late April. giant isn't likely to escape at Uniqlo Japan, part of the
Billionaires list was published Meanwhile in Japan, 40% of the impact of the pandemic. Fast Retailing Group,
in March and is now worth Uniqlo's stores were tem- The company has estimated increased by 4.4% year on
US$ 28.9 billion. porarily closed in May, but that for the fiscal year end- year, while total sales includ-
With shoppers once again have since reopened. Last ing August 31, revenue will ing online sales increased by
flocking to Uniqlo's stores in month, the company opened decline 9% to 2.09 billion 4.7%.
Japan and China, shares of two new Uniqlo stores in yen (US$ 19.3 billion), while The company said in a
Yanai's Fast Retailing are up Tokyo, in upscale Ginza and operating profit is likely to be statement that despite the
53% since March 19, when in the shopping hub of 44% lower at 145 billion yen long spell of rain and low
they hit a low this year. The Harajuku. (US$ 1.34 billion) temperatures experienced
two countries account for Part of the buzz around Yanai, who grew up above during the month, same-
75% of Uniqlo's worldwide Uniqlo was due to the June his parents' clothing store in store sales rose in July on
network of 2,200 stores. launch of AIRism, a range of a small town in Yamaguchi the back of strong sales of
While Fast Retailing owns face masks, which set off an prefecture in southwestern items that perfectly suited
other brands such as Theory, online stampede that over- Japan, has often stated that the recent demand for stay-
Helmut Lang, J Brand and whelmed the company's site. he wants Fast Retailing to at-home clothing.
GU, the biggest money But it also lured buyers to become the world's largest At the end of July, the
machine is Uniqlo, contribut- visit the brick-and-mortar apparel retailer. But the company added, a total of
ing 80% to the company's stores of the brand, which is company still lags Spain's seven stores remained tem-
US$ 21.3 billion annual rev- best known for its range of Inditex, which is the current porarily closed and 93 stores
enue. "Retailers are doing affordable casual wear- number one, with annual were operating shorter
better in Asia," says women's skirts, for example, sales of US$ 31.6 billion as working hours due to Covid-
Maureen Hinton, research retail from US$ 9.90 to US$ well as Sweden's H&M with 19. Uniqlo closed one store
director at GlobalData, a 39.90. This value-for-money sales of US$ 24.8 billion. in Japan during the month
London data analytics and pricing makes Uniqlo rela- Inditex founder Amnacio under review.
B
rooks Brothers has its operations in at least 125 the Covid-19 pandemic. aire Claudio Del Vecchio, the
entered into a US$ stores. Under the terms of the privately held Brooks
305 million "stalking The 200-year old iconic agreement, SPARC, which is Brothers was the first to tai-
horse" purchase agreement apparel retailer filed for partially owned by brand lor the button-down Polo
with retailer SPARC Group bankruptcy earlier this management company shirt in 1986 and boasts of
LLC, in a move that could month, joining a slew of Authentic Brands Group, having dressed 40 former US
preserve the apparel brand decades-old American retail- intends to buy the compa- presidents including John F.
as a going concern and help ers that have succumbed to ny's entire global business Kennedy & Barack Obama.
www.TextileExcellence.com
August 16-31-2020 Textile Excellence
retail Update 29
Factory’ In Leicester
was wiped off its stock mar-
ket value, but it has recov-
ered slightly in recent
weeks. Major retailers
Plans announced after claims in July that some workers were being paid £3.50 an hour
including Next, Asos and
B
oohoo, the fashion Amazon removed all Boohoo
retailer facing allega- clothing from sale.
tions that workers in Setting up its own factory
its supply chain were treated will allow Boohoo to demon-
as modern day slaves, has strate best practice, Lyttle
announced plans to set up said. The company has
its own "model factory" to bought a 1 hectare (2.5
ensure workers are treated acre) former car showroom
fairly. to turn into the new factory.
The company, which was If the factory is not up
co-founded by billionaire and running by September,
Mahmud Kamani, said it Boohoo will lease a tempo-
would employ 250 people at rary site in Leicester in the
a new Leicester factory it meantime. Lyttle said that
hopes will start producing the firm was looking at
clothes for its Pretty Little opening another factory
Thing and Nasty Gal brands elsewhere in the UK.
by September. Along with other online
John Lyttle, Boohoo's retailers, Boohoo, which
chief executive, announced dence of paying as little as auditor, Verisio, which start- started as a market stall in
plans for the factory as the £3.50 per hour was found. ed conducting unannounced Manchester, has seen sales
company battles to rebuild Meanwhile the independent spot checks at the fashion surge during the Covid-19
its reputation after claims in review will proceed at pace firm's UK suppliers and their pandemic. It is expanding,
early July that workers at a and if evidence of payment subcontractors in May. Since with plans to open another
Leicester garment factory below minimum wage is the scandal, the auditor has warehouse in the UK in addi-
that supplied Boohoo were found within any of our sup- been visiting the factories to tion to the one in Burnley,
paid as little as £3.50 an pliers we would terminate ensure workers are given where 2,500 people work.
hour. That is far below the those relationships." details of a confidential Producing some of its
minimum wage of £8.72 for Priti Patel, the home sec- whistleblower hotline operat- clothes itself is also part of
those aged 25. retary, described the alleged ed by Verisio. Boohoo's strategy to get its
Staff were also allegedly working practices as "truly Lyttle said the new facto- fast fashion quickly to con-
not wearing protective appalling", and called on the ry "will have the latest capi- sumers. Spain's Inditex, the
masks to help stall the National Crime Agency tal equipment and promote owner of the Zara chain,
spread of Covid-19, and an (NCA) to investigate. "Let the highest standards of makes its own clothes so it
outbreak in Leicester was this be a warning to those health and safety throughout can get them into shops
linked to the city's garment who are exploiting people in the facility". He expects it quickly.
district factories. sweatshops like these for will produce 50,000 gar- Lyttle said while a lot of
Lyttle said supply chain their own commercial gain," ments a week. retailers were ordering stock
working practices exposed she said. "This is just the Boohoo has previously six to nine months in
by the media had been start. What you are doing is said it was "shocked and advance, Boohoo was plan-
"upsetting". "If there's stuff illegal, it will not be tolerated appalled by the recent alle- ning only two weeks ahead.
wrong in Leicester I'd rather & we are coming after you." gations" and vowed to work Buying a large chunk of its
find and fix it, not run for the Boohoo launched an inde- to rebuild the reputation of garments in the UK meant
hills," he said. pendent review of its UK textile manufacturing in that Boohoo can get its
"We terminated two sup- supply chain, led by Alison Leicester. It buys 40% of its clothes from the factory to
pliers as previously Levitt QC, and axed two sup- clothing in the UK, mostly in customers within days,
announced because of docu- pliers, Morefray and Leicester, with the rest com- rather than weeks if they
mentation issues which Revolution Clothing. ing from other countries were imported. Having its
breached our code of con- The company has also such as Turkey, Morocco, own factory should speed
duct," Lyttle said. "No evi- hired an independent factory China, Bangladesh & India. things up further.
www.TextileExcellence.com
30 retail Update Textile Excellence August 16-31-2020
Shores Up Finances
jackets adorned with
Japanese text, said that
while trading in the 13
The group, whose share price has plunged 77% so far this year as its stores were weeks to July 25, its fiscal
first quarter, was materially
shuttered due to the pandemic, said the asset backed lending facility was agreed with its
impacted by the crisis, the
existing lenders HSBC and BNPP and runs to January 2023. 24.1% fall in group revenue
B
ritish fashion retailer shuttered due to the pan- have taken to date have was better than its initial
Superdry has agreed a demic, said the asset backed greatly strengthened our expectations. Some 95% of
new 70 million pounds lending facility was agreed cash position, which togeth- Superdry's stores have now
(US$ 91.5 million) lending with its existing lenders er with our new ABL Facility, reopened. First quarter store
facility to help get it through HSBC and BNPP and runs to give us the flexibility to exe- revenue fell 58.1%, while
the coronavirus crisis. January 2023. As at August cute our current plans and to wholesale revenue was down
The group, whose share 6, Superdry had net cash of secure our recovery," said 31%. E-commerce made up
price has plunged 77% so far GBP 57.8 million on its bal- co-founder and CEO Julian some of the shortfall with
this year as its stores were ance sheet. "The actions we Dunkerton who retook con- revenue growth of 93.2%.
O
perating more than for a highly efficient, stream- and inefficiencies. retailer reduce risk, provide
2,200 stores across lined system. This, in turn, Automating in-house pro- greater transparency to cus-
96 countries, Zara is enables companies to meet duction can make a huge dif- tomers, and lower the cost
one of the world's leading customer demand immedi- ference in getting products of distribution.
fashion retailers. While the ately. To achieve this, Zara manufactured and out the And because Zara is able
clothing giant's success can does much of its production door as quickly as possible to maintain control and
be accredited to various fac- in-house, with many of its while increasing accuracy. oversight throughout the
tors - from its keen eye for facilities located near the Producing products in lim- entire supply chain, better
emerging trends to its laser- company's Galicia, Spain, ited or smaller quantities communication and collabo-
sharp focus on customer headquarters. lends an air of exclusivity ration between different
experience - its highly It also maintains about and urgency to the shopping partners can be achieved as
responsive supply chain is 85% of capacity for any nec- experience, helping to push well. Drawing from the Zara
what truly gives Zara its essary in-season adjust- customers to purchase. model, businesses may want
competitive edge. ments - allowing for greater to consider their options for
flexibility and agility in how Vertical Integration purchasing suppliers, merg-
Just-in-Time Production and when new items are Zara has also tapped into ing with partners, or even
Known for staying ahead launched. vertical integration to keep investing in the sales end of
of the trends, Zara changes For companies looking to its supply chain running the process.
its apparel designs every two increase their speed to mar- smoothly. By acquiring busi- These strategies are par-
weeks on average; most of ket, Zara's unique produc- nesses at different stages of ticularly useful for compa-
its competitors do so every tion strategies can offer the chain, Zara is able to nies that feel their suppliers
10-14 weeks. To maintain valuable lessons. Though maintain better control of are exerting too much power
this lightning pace, Zara most smaller businesses the value chain, which over them. Vertical integra-
utilises Just-in-Time (JIT) cannot achieve the same means it can react quickly to tion also provides better
production methods to keep efficiency, there are a few shifting consumer demands. flexibility to weather difficult
turnaround times as tight as key areas on which they can Relying minimally on out- market conditions. However,
possible. focus: sourcing, Zara controls there is greater risk involved
JIT production, also Investing in in-house pro- everything from design to in maintaining control over
known as JIT manufacturing, duction processes can allow display to shipping, allowing all or most of the supply
is a lean strategy centered for greater flexibility and it to gather valuable data at chain, and the upfront
on eliminating waste from better oversight, reducing every stage. This data can organisational costs can be
business processes to allow the risk of errors, delays, then be analysed to identify steep.
www.TextileExcellence.com
August 16-31-2020 Textile Excellence
retail Update 31
C
oresight has just the full month of April due to sures, discretionary retailers
released its inventory the coronavirus pandemic, such as apparel specialty Managing inventory to
tracker for the first we saw sharp differences retailers, department stores blunt losses
quarter - a time in which between the inventory and the one covered beauty In mid-March, many
much of the world was turnover rates of discre- retailer (Ulta Beauty) faced retailers realigned inventory,
entering a lockdown. What tionary retailers such as the heat, with inventory before reducing receipts in
does the data show? apparel and non-discre- turnover ratios declining 10- April and May. To attain
As retailers have different tionary retailers such as food 30% year over year. sales-to-stock parity, retail-
fiscal year-ends, the quar- and drug retailers and mass Essential retailers such as ers are looking to significant-
ters under review in this merchants. Most apparel food, drug and mass retail- ly reduce their inventory lev-
report may not be identical. specialty retailers reported ers, on the other hand, saw els by the end of the second
Most companies reported lower inventory turnover a surge in sales that was quarter.
first-quarter results, which ratios, both compared with supported by panic buying Some retailers, such as
ended April 30 and included the year-ago period and and stockpiling of food and Burlington Stores and Ralph
impacts of the coronavirus. sequentially. household essentials - Lauren, have invested sub-
Many retailers closed As stores are reopening, resulting in a 9% year-over- stantially in inventory
stores starting in the second we are seeing a significant year increase in inventory reserves to keep their inven-
half of March and therefore return to in-store shopping, turnover ratios. Home tories aligned with consumer
there was little time to make as reflected in higher-than- improvement stores were demand and protect against
meaningful adjustments to anticipated sales productivi- deemed to be essential a future need to make addi-
inventory before having to ty of reopened stores (espe- retailers, explaining the pos- tional markdowns. On the
close. The inventory impact cially for apparel and depart- itive 12.5% year-over-year other hand, mass merchan-
from the store closures will ment stores). Next quarter, growth in their inventory disers such as Walmart and
likely be more pronounced in we expect there to be an turnover ratios. Target are investing to offset
the second-quarter report. improvement in the invento- In the first quarter, some out-of-stocks in multiple cat-
In the reported quarter, ry turnover ratios for most retailers reduced their mer- egories, such as food and
overall inventory turnover covered retailers. chandise receipts substan- general merchandise.
rates remain flat compared tially, while some recognised As many retailers sharply
with the same quarter last Broader impact of store inventory reserve to account discount inventory in order
year, which saw inventory closures on excess inven- for a rise in inventory obso- to clear it, they choose to
accumulation to offset the tory? lescence or spoilage due to take the pain from revenue
expected impact of tariffs & The first quarter store closures; this reserve and margin declines in the
support expansion plans. remained a mixed quarter uses the money taken out of near term and get it behind
With non-essential retail from the point of inventory earnings for paying cash or them, rather than having to
in the United States shut turnovers. With a long period non-cash future costs asso- deal with the issue at a later
down for part of March and of nonessential store clo- ciated with inventory (in time.
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32 Sustainable Textile Innovations Textile Excellence August 16-31-2020
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lastic is an excellent tion. The pilots are being President Jani Lehto from to the product development
material with many carried out at VTT in VTT. phase for different solutions
unique properties in, Jyväskylä, with access to, in company-driven projects.
for example, packaging among other things, the first From laboratory through The Piloting Alternatives
applications. Plastic con- research environment in the piloting to the product for Plastics project started
sumption is estimated to world to utilise the foam- development phase on 1 April 2020 and ends on
double over the next 20 forming process. In the research of new 31 March 2023. Its total
years. The biggest challenge The selected piloting tar- materials, the challenge is to budget is EUR 6.7 million.
for plastic products is their gets include fibre-based select the most interesting The project is implemented
recyclability. For example, materials to replace the from a wide range of raw with funding from the
only 14% of plastic packag- plastics used in, for exam- material and manufacturing European Regional
ing is recycled, so the major- ple, food packaging, filters, options, and to reduce the Development Fund (ERDF),
ity of plastic ends up being textiles as well as wiping, time it takes to scale the VTT and companies coordi-
incinerated or in landfills hygiene and construction results obtained on a labora- nated by the Regional
and, unfortunately, also materials. tory scale to commercial Council of Central Finland.
improperly disposed of in "In this project, we are production scale. Participants in the project
forests and oceans. creating a new understand- The development work include 52 companies from
In a three-year piloting ing of bio-based fibre net- done in the project will result Finland and elsewhere in
project, VTT is working with works and how, by tailoring in expertise in various raw Europe. A total of 28 compa-
companies to take the man- them, we can produce new materials, equipment and nies from Finland are
ufacture of new generation types of recyclable materials manufacturing technologies. involved, of which 18 are
fibre products towards the that do not burden the envi- Based on the development small and medium-sized
scale of industrial produc- ronment", says Vice work, companies can move companies.
W
hether vehicle com- ted to the Chair of When looking for alterna- process, analyse or chemi-
ponents, aircraft or Macromolecular Materials & tive raw materials for the cally modify in any conven-
textile concrete, Fiber Chemistry held by Prof. production of carbon fibres, tional way. Now we can treat
plastics and materials which Michael Buchmeiser at the Clauss opted for lignin, a lignin like a technical poly-
are reinforced by carbon University of Stuttgart, in waste product from wood mer thanks to a special
fibre are lightweight and tear cooperation with the German pulping. The production process related to its con-
-proof, which makes them Institute of Textile Chemistry process was described as far trolled and almost linear
very much in demand. Their and Fiber Research (DITF) in back as the 1960s, but it was chain length." Prof. Michael
disadvantage is that they are Denkendorf. Dr. Clauss has not possible to implement it Buchmeiser went on to
expensive & energy - inten- now been awarded with the for technological reasons. emphasize the ecological
sive to manufacture. A new Research Prize 2020 for his Manuel Clauss has now man- aspects: "We're using a
manufacturing technique work by the German Carbon aged to produce carbon renewable material and gen-
however is set to change Group (AKK), part of the fibres with competitive prop- erating a huge amount of
that. This is based on the German Ceramic Society erties from the powdery added value in the process."
doctoral thesis by Dr. Manuel (DKG). brown substance lignin. There is interest from indus-
Clauss entitled "Structural Talking about his work, try, and Buchmeiser ulti-
investigations into lignin- Clauss produces carbon Manuel Clauss says "The mately expects a fibre which
based carbon fibres" submit- fibres from waste wood particular challenge regard- is around 50% cheaper.
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Sustainable Textile Innovations 33
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34 Sustainable Textile Innovations Textile Excellence August 16-31-2020
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Sustainable Textile Innovations 35
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lthough corn is better US$ 660,000 grant from the lated chitin, a fibre that is comes in - he is engineering
known as a sustain- US Department of Defense. also produced and sold as a a multilayer system that will
able, bio-based mate- Venkatesh Balan, assistant dietary supplement to treat be comprised of a hardened
rial, chitin offers promise as professor of engineering obesity, high cholesterol, impact-resistant layer; an
a commonly available mate- technology, and Megan high blood pressure and energy-absorbing crush
rial that could be processed Robertson, associate profes- Crohn's disease. Chitosan is layer reminiscent of the way
and used in some products sor of chemical and biomole- easier to handle than the modern cars are designed to
that now require petroleum- cular engineering, are co- brittle chitin. crumple on impact, safe-
based plastics, said Alamgir principal investigators. Balan, whose lab pro- guarding the passenger cap-
Karim, Dow Chair Professor They are charged with duces bio-molecules for sule; a layer to absorb toxic
of chemical and biomolecular developing tough, durable medical and industrial use, is gas, with charcoal nanoparti-
engineering. and anti-microbial multilayer using chemical and enzy- cles dispersed in the chi-
"What if we could process films capable of resisting an matic processes to produce tosan; and a textile adhesion
these materials and get impact from projectiles or the chitosan molecules using layer, which will bind the
them to a certain level of lasers while simultaneously crustacean shells. "We are coating to canvas and other
performance, so we could do absorbing toxic gas. Karim trying to do the same thing textiles.
some really good things in said the work will also have with mushrooms," he said, That will involve 3D print-
the plastics world?" he applications beyond the mili- noting that mushrooms yield ing different chitin nanopar-
asked. "They would be tary, potentially expanding a more consistent degree of ticles and chitosan-fabricat-
biodegradable by design, so its environmental benefits. polymerization sustainably, ed or reinforced crush-zone
they could decompose and Chitin is the primary helping to standardise pro- design structures and testing
return to Mother Nature." component of cell walls in duction of chitin and then them to determine their abil-
Karim, who also serves as fungi and the exoskeletons process it to become chi- ity to withstand an impact.
director of the International of arthropods, including tosan. "It is a very good, envi-
Polymer & Soft Matter crustaceans, insects and A stable source of chi- ronmentally friendly proj-
Center and of the materials mollusks. It's also found in tosan polymers will be just ect," Karim said, and one
engineering programme at fish scales. It can be har- the beginning. Robertson will that will have applications
UH, is principal investigator vested and processed to pro- determine how to alter the for the automobile, construc-
on the project, funded by a duce chitosan, or de-acety- atomic composition at the tion and other industries.
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36 Corporate Update Textile Excellence August 16-31-2020
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aymond UCO, in part- and sendai virus, all with an all its ingredients designated earlier and with much higher
nership with Swiss effectiveness above 99.99%. as cosmetic grade, bio- confidence," stated Carlo
textile innovator HeiQ, Studies suggest that based and recycled. Beta Centonze, co-founder and
has launched a highly pro- viruses and bacteria can Analytics Testing Laboratory CEO of HeiQ Group.
tective denim fabric range remain infective on textile has certified that Raymond UCO, a formi-
with HeiQViroblock, a sus- surfaces for days. Human HeiQViroblock contains 72% dable player in the global
tainable, anti-viral and anti- Coronavirus (SARS-CoV) bio-based carbon. denim industry, is reckoned
microbial technology that persist for up to two days on It is EU REACH and US as one of the most versatile,
has been tested and proven surgical gowns at room tem- FIFRA compliant, OEKO- flexible and fully vertical
effective to destroy 99.99% perature. In this context, TEX® certified, ZDHC and denim fabric manufacturers.
viruses. Raymond UCO's anti-viral treatments for tex- bluesign® homologized. Commenting on this latest
association with HeiQ has tiles can significantly reduce Denims treated with innovation, Arvind Mathur,
been pivotal in global launch the risk of transmission and HeiQViroblock are complaint CEO- Raymond UCO Denim
of innovative anti-bacterial contamination thus ensuring with EU BPR and US EPA. said; "SHIELD is a versatile
fabrics a couple of years ago hygiene and safety. The HeiQViroblock ingredient range of "fashion with func-
with HeiQ Pure. Along with HeiQViroblock is a unique is marketed under brand tion" denim fabrics that aims
this latest launch, Raymond combination of advanced sil- name HeiQ V-Block in the to offer end-consumers best-
UCO has also unveiled its ver and vesicle components USA. in-class anti-microbial and
signature functional denim which is imparted technically "We are very grateful to anti-viral denims. In these
range SHIELD. on the fabric surface. These see how the entire textile unprecedented times of
SHIELD collection is a active components in the industry is working hard to worldwide pandemic, appar-
compelling innovation in the HeiQViroblock kill bacteria adapt the world's best anti- el for everyday use that pro-
area of personal health and and destroy common harm- viral textile technology into tect users from viruses and
hygiene, offering a wide ful enveloped viruses within not only face masks and bacteria have become vital.
range of denim fabrics that a short time span of two PPEs, but also daily clothing It is in this context, we have
aim to fight viruses and bac- minutes of exposure like denim. Consumers want developed environment-
teria. This innovative denim (according to modified to feel protected and to have friendly, anti-viral denim fab-
range also features fabric AATCC100 test conducted on to worry about touching the rics with our innovation part-
powered by HeiQViroblock Sendai virus). HeiQViroblock clothes on their own body is ner HeiQ that will enable us
technology which has been is designed to last on the the last thing anyone wants! to not only excite fashion
tested effective against a fabric even after repeated I am sure the SHIELD collec- lovers but also assure the
dozen viruses and bacteria, domestic washes. tion, powered by end consumers with ultimate
including SARS-CoV-2, HeiQViroblock is certified HeiQViroblock will contribute clothing solutions for health
H1N1, H5N1, H7N9, H3N2, as safe and sustainable with to resuming our normal lives and hygiene."
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August 16-31-2020 Textile Excellence
Corporate Update 37
I
tema, the leading allows Itema to expand its PTMT enriches Itema's tech- ship of the Panter brand,
provider of advanced product portfolio by adding nological offer for weaving such as the loom dedicated
weaving solutions, PTMT technology, with the machinery, adding even to weaving carbon fibre, in
including best-in-class weav- aim of consolidating and more value to our company's what is a unique synergy on
ing machines, spare parts establishing a new leadership proposal to the market". the market ".
and integrated services, in the field of technical fab- Angelo Radici - on behalf The Itema plant in
announces the finalisation of rics. The launch of of the family heirs of Gianni Colzate, at the forefront in
the agreement for the acqui- Itematech, the new division Radici, who hold 60% of the the field of lean manufactur-
sition of the PTMT, formerly dedicated to technical tex- Itema shares, and in agree- ing, was quickly equipped by
Panter, in business lease tiles, in the first quarter of ment with the Arizzi and Torri the Itema engineering team
since April 2019. 2019, gathered growing families to whom the remain- for the production of the ex-
Despite the difficult interest from weavers all ing share belongs - com- Panter models thus guaran-
moment that the world econ- over the world. Itematech, mented: "This strategic teeing the high quality stan-
omy is going through due to indeed, offers today the most choice brings further impetus dards of Itema weaving
the consequences of the pan- complete technological port- to the Group. Our constant machines. Thanks to the
demic generated by the folio available on the market commitment to global union of the two technologi-
Covid-19 virus, Itema's to weave these special fab- expansion goes hand in hand cal realities, Itematech guar-
Board of Directors chooses rics. with attention to local reali- antees the weaving of the
not to stop investments, con- The operation confirms ties: we strongly believe in widest range of technical fab-
vinced that the only way to Itema's Board Directors the excellence of our territo- rics - from carbon fibre to the
overcome this critical period intention to invest in the tex- ry companies, in their presti- coarsest and finest filter fab-
is to believe in a future made tile machinery sector, as wit- gious historical tradition and rics, to name just a few - and
prosperous by long-term nessed by the words of in their continuous growth the widest know-how in the
strategic choices. Gianfranco Ceruti, President potential. We are therefore sector.
The acquisition by its sub- of the Board of Directors of confident that the merger of
sidiary Itema Tech s.r.l. Itema: "The acquisition of PTMT's deep technological
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38 Corporate Update Textile Excellence August 16-31-2020
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ateri has unveiled their first brand partners for combines function & fash- announcements is under-
FinexTM as its new FinexTM. Sateri's dedication ion." Tom Liu, Sateri's pinned by Sateri's business
product brand for recy- to this partnership made it Commercial Vice President strategy to capture value.
cled fibre. FinexTM, short for possible for Lafuma to pro- said, "Like our flagship brand Allen Zhang, President of
'Fibre Next', is an innovative duce T-shirts with this fine EcoCosy®, FinexTM is made Sateri said, "Being the
next-generation cellulosic quality fibre in a short time. from bio-based natural world's largest viscose pro-
fibre containing recycled con- T-shirts made with FinexTM fibres. Innovation and tech- ducer gives us the advan-
tent. Internationally known will be among the offerings nology has made cellulosic tages that come with vol-
outdoor brand Lafuma has Lafuma has in store for the textile fibre recycling possi- ume, but value is what we
produced FinexTM apparel 618 festival as we look to ble and FinexTM represents hope differentiates us. By
ahead of 618, China's major support environmentally- how nature not only renews this, we don't only mean
mid-year online shopping friendly and excellent per- itself but that products made higher value products like
festival, while independent formance solutions to from nature can also be Lyocell or FinexTM but also
China designer Rico Lee will strengthen our position as a regenerated. the value we bring to com-
launch his FinexTM apparel leading outdoor apparel This, at its heart, is what munities, country, climate
next month. brand," said Wu Qian, circular fashion looks like. and customers."
Since its announcement General Manager of Lafuma Our brand promise to cus- Globally, less than 1% of
in March this year of a break- China. tomers remains constant - material used to produce
through in commercial pro- Echoing similar senti- Sateri's products are sustain- clothing is recycled into new
duction of viscose using recy- ments is Rico Lee who estab- able, high quality, efficient, clothing. This presents a big
cled textile waste, Sateri has lished his own independent and cost-effective. opportunity for textile fibre
worked closely with its down- label in 2014, "I jumped at The FinexTM tagline recycling, particularly in
stream yarn and garment the opportunity to collabo- 'Together For A Better Next' China which is the largest
manufacturing partners to rate with Sateri when they expresses our aspiration to textile producing country in
bring the recycled fibre prod- approached me because be the partner of choice for the world. Last month, Sateri
uct to the consumer market. FinexTM encapsulates what next-generation fibre - we became a council member of
"We're pleased to collabo- my brand stands for- thank Lafuma and Rico Lee the China Association of
rate with Sateri as one of Beautiful Technology that for pioneering with us on this Circular Economy (CACE).
D
uPont expects to con- the lines through the mainte- ness unit which uses the fab- During the second quar-
duct maintenance on nance, Breen added. Each ric to make building wrap for ter, sales of the garments
lines that produce its line undergoing maintenance construction projects. "We rose by more than 60% year
Tyvek fabric which is used to will be down for two to three got those up and running at on year. Looking ahead,
make protective garments. weeks. Dupont has been run- way higher rates than what DuPont expects to resume
DuPont makes the material ning its Tyvek lines at high we had been running them at working on an expansion
at its site in Contern, rates to meet increased before because of the pan- project that will add a third
Luxembourg, and at its demand for protective per- demic," Breen said. A couple line to its Tyvek plant in
Spruance complex in sonal equipment (PPE) of the Tyvek lines are Luxembourg. The govern-
Richmond, Virginia state, US. caused by the coronavirus, extremely old, he said. ment in Luxembourg ordered
CEO Ed Breen said the Breen explained. The work DuPont did not specify DuPont to halt work at the
maintenance involves more had paid off, and DuPont was how the maintenance will project because of the pan-
than one line, although he able to double the production affect Tyvek garment produc- demic, Breen said. It should
did not specify how many. He rate of Tyvek garments to tion, but it will limit supply. be back online in a year-and-
made the comments during 30m/month. To increase gar- In Q3, Tyvek garments will a-half. Tyvek is made out of
an earnings conference call. ment output, DuPont divert- be down from the second high-density polyethylene
DuPont is going to rotate ed fabric from another busi- quarter but up from Q3 (HDPE) fibres.
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August 16-31-2020 Textile Excellence
Corporate Update 39
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40 Corporate Update Textile Excellence August 16-31-2020
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ieter protects its inno- Property Court of the design. In order to benefit tection of the design patent
vations and products People's Republic of China from these characteristics, concerned.
with patents and regis- ruled in favour of Rieter competitors copy the suc- The defendant Shenyang
tered designs. The company Ingolstadt GmbH (Germany). cessful Rieter machine con- Hongda Textile Machinery
takes consistent action Rieter machines stand for cepts and even adopt the Co., Ltd. was sentenced to
against patent and design outstanding quality, high coveted Rieter design. compensate the plaintiff
infringements. In mid-July operational safety, excellent Rieter protects its innova- Rieter Ingolstadt GmbH for
2020, in a legal dispute, the performance and user- tions by means of patents financial losses and
Shanghai Intellectual friendliness as well as unique and registered designs. The expenses.
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August 16-31-2020 Textile Excellence
the last word 41
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