The British Textile Machinery Association (BTMA) has appointed Jason Kent the new Chief Executive Officer of the group. This also includes subsidiaries nw texnet and The Textile Recorder (Machinery & Accessories) Exhibitions (TREX), effective from Monday 23rd August 2021. A non-executive member of the BTMA board for over eight years, Kent has over 35 years of experience in carpet tufting machinery industry. He is a mechanical technician engineer who ascended through a series of positions of greater responsibility with Cobble Blackburn until its acquisition in 2013 by the Vandewiele Group, where he undertook the role of Managing Director for the tufting machinery business.

He also studied part-time for his MBA back in 2011 and is also a Chartered Fellow of the Chartered Management Institute. Alan Little, Director, says, Jason’s textile machinery background, business development skills and extensive knowledge of the BTMA and its members will help in delivering the strategic vision of the board.

Founded in 1940, the British Textile Machinery Association actively promotes British textile machinery manufacturers and their products to the world. The non-profit organisation acts as a bridge between its members and the increasingly diverse industries within the textile manufacturing sector.

Brands and unions have signed an agreement to extend the Accord agreement in Bangladesh and expand its scope to other garment- and textile-producing countries. The agreement has been hailed by labor groups across the country as it paves the way for more robust worker protections globally.

Titled the ‘International Accord for Health And Safety in the Textile and Garment Industry,’ the new agreement extends out to October 2023. It remains a legally binding commitment to ensure worker safety in Bangladesh. Companies including H&M Group and Zara-owner Inditex have signed the new agreement. A full list of signatory brands will be announced September 1, when the new Accord comes into effect.

The Bangladesh Accord was established in the wake of the collapse of the Rana Plaza factory complex in 2013. The disaster killed more than 1,000 people and remains one of the deadliest garment industry disasters to date. Amid widespread public outrage, more than 200 brands signed onto the initiative, which made them subject to legal action if their supplier factories in Bangladesh did not meet health-and-safety standards or failed to fix issues within an agreed-upon time frame. It was an unprecedented level of accountability and remains an unusually robust framework in an industry that is still largely governed by voluntary codes of conduct.

After rapid surge in 2020, demand for technical textiles in China is slowly stabilizing. Demand for surgical masks, protective clothing and related raw materials is gradually declining, slowing the industry’s annual growth rate. A survey by the China Nonwovens & Industrial Textile Association (CNITA) of member enterprises shows domestic and international demand for technical textiles in China dropped 40 per cent during January-May 2021. Demand indexes for both domestic and international market dropped to 49.0 and 43.4 during the first half of the year.

They have since dropped further to their lowest levels of 31.4 and 34.8. As per a China Textile Leader report, the operating rates of 36 per cent of manufacturers dropped to 80 per cent during the period while those of 18.8 per cent dropped to 60 per cent. The operating rate of 17.6 per cent companies dropped to less than 40 per cent.

Average growth stable but profits drop

The industrial added value of enterprises above designated size in China dropped 11.9 per cent year-on-year from January-May 2021, shows data from the National Bureau of Statistics. However, the two-year average growth of these enterprises still reached 15.2 per cent. Their operating income also increased 0.3 per cent year-on-year to CNY 117.51 billion. On the other hand, total profit dropped 54.5 per cent to reach CNY 7.02 billion while profit rate also declined 7.2 percentage points to 6.0 per cent. The industry is still in a relatively ideal state though it is growing at a slower rate than the chemical fiber and textile machinery industry.

Around 16 per cent companies surveyed by CNITA reported 50 per cent drop in their annual profits while 64 enterprises reported 20 per cent drop. Around 40 per cent of these 64 enterprises view this as a normal adjustment against the rapid growth witnessed in 2020. They believe, it would require one to two years to get out of this round of adjustment period.

Profit margins drop by 6.2 per cent

The surveyed nonwovens enterprises also reported a 7.7 per cent drop in operating incomes and 67.8 per cent year-on-year decline in total profits. Their profit margins also declined 6.2 per cent and 11.5 percentage points year-on-year. The operating income and total profit of twine and rope (cable) enterprises above designated size increased 24.6 per cent and 43.6 per cent year-on-year respectively. Their profit rate increased 0.6 percentage points to 4.2 per cent, up by 0.6 percentage points year-on-year. Similarly, operating income and total profits of textile belts and cord fabrics enterprises above designated size surged by 28.2 per cent and 198.0 per cent year-on-year, respective while their profit rate increased by 3.3 per cent to 5.7 per cent. On the other hand, the operating income and total profits of other technical textile enterprises above designated size declined by 10.3 per cent and 53.5 per cent year-on-year, respectively while their profit rate declined by 6.0 per cent year-on-year.

Travel ban impacts technical textiles demand

Around 50.4 per cent enterprises in China recorded a drop in demand for technical textiles during the period. They attributed this decline to stagnation in global travel, which prevented them from participating in international fairs and exhibitions. Around 37.8 per cent enterprises also reported difficulties in hiring qualified workers and increase in international shipping costs.

The surveyed enterprises also reported facing external challenges like the excessively rapid increase in raw material prices. Around 52.4 per cent enterprises believe, excessive expansion in production capacity has increased competition amongst the enterprises. However, these enterprises are confident that their ability to innovate and maintain the required quality standards will help them surge ahead of competitors.

Around 18 Bangladeshi spinners who imported organic cotton from India are yet to receive the authentication certificate – called a transaction certificate (TC) – from their suppliers even after a year of import. These spinners now fear huge losses following possible order cancellations as their buyers seek TCs as proof while buying raw materials from these mills.

The millers have repeatedly tried to reach out to the suppliers to get the certificates but have not succeeded, says Bangladesh Textile Mills Association (BTMA). Though some Indian suppliers have provided TCs for the supplied cotton, but these certificates were later proven to be fake and subsequently withdrawn by the Control Union.

According to the BTMA, Bangladesh imported 7.5 million bales of raw cotton in FY20, and more than a quarter of it came from India. But, the BTMA does not have information on the amount of organic cotton imported during this time. Indian suppliers are not giving transaction certificates for 16,100 tonnes of organic cotton imported by 18 Bangladeshi companies against 23 LCs. Certificates were issued to only three importers, which were later revoked as they were fake.

According to BTMA sources, they have identified at least nine Indian cotton exporters who are not certifying organic cotton or giving fake certificates. The list includes Agrotech Industries, Gujarat Cotton Corporation, Axiata Cotton, Glossy Impex, Ghanshyam Agro Resources, Basil Commodities, Kratos Impex, Sri Salasar Balaji Agrotech and Narendra Overseas.

Turkey’s ready to wear and confection shipments to foreign markets grew by a robust 27 percent to over $11.1 billion on an annual basis from January to July this year. Exports to Germany grew to $1.9 billion, followed by Spain to 1.5 billion and the UK to $1.2 billion. Exports to the Czech Republic grew by over 200 per cent in the first seven months of the year to $148 million and by 250 percent to Tunisia to $63.5 million.

The industry’s exports are expected to hit $20 billion at the end of this year, opines Burak Sertbaş, Chairperson, Aegean Ready Wear and Confection Exporters’ Union. At the start of the pandemic, local companies shifted to export more of medical textile products but now exports are producing mainly traditional outfits, such as suits, shirts, trousers, he adds

According to Sertbaş, local companies are presently working at full capacity and cannot take orders to be delivered in a short period of time.

A part of the India-based Chiripal Group, and a denim manufacturing and fabric processing unit incorporated in 1985, Vishal Fabrics has sold 1,016,000 equity shares to promoter group Savitridevi V Chirpal. This increased the group’s share in the company by 1.54 per cent. The group purchased 511,000 equity shares on August 12, 2021, and subsequently another 505,000 shares on August 23. The total trades executed by the promoter group included 1,016,000 equity shares.

VFL constantly strives to improve and innovate with wider fabric manufacturing capacity and carbon-reducing technology across its processing units. The company’s state-of-the-art manufacturing facilities are equipped with the latest technology and deliver innovative products that adhere to international quality standards. Over the years, the company has managed to emerge as a pioneer in the textile industry, setting new standards of excellence.

Known as witness signatories, the non-governmental organization signatories to the Bangladesh Accord – Clean Clothes Campaign, Worker Rights Consortium, Maquila Solidarity Network, and Global Labor Justice-International Labor Rights Forum – have welcomed the signing of the new international safety agreement. The new agreement maintains the vital elements of ground-breaking model established by the Bangladesh Accord: legal enforceability of brands’ commitments, independent oversight of brand compliance, the obligation to pay prices to suppliers sufficient to support safe workplaces, and the obligation to cease doing business with any factory that refuses to operate safely. The successful outcome of negotiations this summer will ensure that the sweeping safety gains the Accord has delivered in Bangladesh will be maintained and extended.

The new agreement will continue the progress on fire and building safety achieved in Bangladesh over the past eight years besides expanding the program to other countries. Every responsible apparel and textile brand is expected sign this new agreement.

Ineke Zeldenrust, International Coordinator, Clean Clothes Campaign, believes, the agreement will begin the long-awaited expansion of this model that holds brands legally accountable to other countries where workers’ lives continue to be at risk.

Scott Nova, Executive Director, Worker Rights Consortium adds, the Accord will end the atrocities committed by world’s leading apparel brands on hundreds of garment workers in Bangladesh.

The Global Change Award by H&M Foundation is accepting applications for the sixth edition of the event after a COVID-19-induced pause of one year. As per Sourcing Journal, this year’s program will focus on innovations likely to have a major impact on the world. H&M Foundation plans to evaluate various game-changing solutions addressing land, water, oceans, climate and biodiversity issues.

Erik Bang, Head-Innovation, H&M Foundation, said, the Global Change Award will seek solutions addressing climate change, protecting people and securing their future. The foundation will invite innovators and entrepreneurs to submit their early stage ideas on how to improve the sustainable footprint of the fashion industry. Applicants can apply through the H&M Foundation website through October 20. Entries are reviewed by H&M Foundation together with Accenture and KTH Royal Institute of Technology—both of which have partnered with the company on this program since launch.

Entries will also be reviewed by an international panel of experts, including Dr. Lin Li, director of global policy and advocacy at WWF International; Rachel Cernansky, Senior Sustainability Editor, Vogue Business; Mirna Inez Fernandez, Co-Founder, Reaccion Climatica; Malin Åkerman, Actress; Caroline Brown, Managing Director, Closed Loop Partners; Betelhem Dessie, CEO, ICog, Anyone Can Code; Sonam Kapoor Ahuja, Actress; and Walden Lam, Co-founder and CEO, Unspun.

The Council for the Development of Cambodia (CDC) has approved Auspicious Bag and Shoes Accessories Co’s proposal to build garment factory at Kraing Makak in Ang Snuol district in the Kandal province. The factory will be built with an investment of $2.4 million and create 380 jobs. In the last few months, CDC has approved 10 new projects worth nearly $80 million. Most of these projects involve setting up factories for garments, travel bags and footwear.

The industry ministry reported closing of 101 factories in Cambodia last year, most of them in the garment sector. By mid-May this year, 27 factories had closed due to the COVID-19 outbreak and 75 had filed for bankruptcy. Cambodia’s exports to the United States totaled to over $3 billion in the first half of this year. That was a 35 per cent increase compared with the same period in 2020. A large part of the exports constituted clothing, bags and footwear.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) believes, a 4 per cent cash incentive on export-oriented apparel items made from imported raw material can help double Bangladesh’s garment exports. Faruque Hassan, President, BGMEA feels, it may also increase the supply of raw materials and motivate buyers to place more orders. Further, it may increase investment in knitting, weaving, processing, brushing, sewing, bleaching, dyeing, printing, washing and finishing industries, helping Bangladesh retain market benefits after the LDC graduation, he adds.

However, spinners believe, the move will deal a devastating blow to the country's textile industry as it will involve subsidizing foreign companies with public money. Abdul Hai, Former President, Bangladesh Textile Mills Association (BTMA), also agrees, this will nullify all the huge investments made in the textile sector besides leading to millions of job losses. BGMEA has also proposed a 10 per cent incentive for non-cotton garment exports, saying it will boost exports as well as investment and employment.