Austria to host ITMF 2013 from September 8 to 10
The International Textile Manufacturers Federation (ITMF) annual conference 2013 will be held from September 8 to 10, 2013, in Austria. The conference, with the theme ‘Rebalancing the Power between Manufacturing and Retail’, would focus on the changing relationship between producers and retailers in the difficult business environment faced by the global textile supply chain. It would include sessions on cotton and man-made fibers, e-commerce, Europe’s textile industry, the textile supply chain, technical textiles, non-wovens, the global textile machinery market and China’s textile industry.
The ITMF provides a forum for discussion on matters concerning textile companies. It allows textile trade associations to exchange information on matters affecting the textile industry, consistent with the trade regulation laws of the nations represented, and performs the functions of a liaison agent between textile industries and governments and intergovernmental organizations interested in the textile industry.
Representatives of several textile associations would be speaking at the conference. Some of them are: Terry Townsend, Executive Director, International Cotton Advisory Committee (US), Fritz Grobein, President, Bremen Cotton Exchange (Germany), Josue Gomes De Silva, President of ITMF (Brazil), Kai Hughes, MD, International Cotton Association (Germany) among others.
Bangladesh body proposes wage hike
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has proposed a minimum 50 per cent wage hike for garment workers. This decision has been arrived at considering inflation, price index, nutrition, transport and house rent.
Bangladesh had set up a panel to raise the minimum wage for garment workers following a factory collapse that claimed over 1,000 lives. The panel was made up of factory workers, factory owners and government representatives. In 2010, Bangladesh increased the minimum wage for garment workers by 80 per cent following worker protests. The first minimum wage board was constituted in 1994.
A revised minimum wage could help women working in harsh conditions who have few other places to go to. Garment workers have been agitating for better pay and working conditions in recent months since inflation has been high. These workers sew clothes that earn the country foreign currency, so they feel they deserve a better deal.
However, garment manufacturers are unhappy. They say that since a minimum wage was fixed as recently as 2010, it should be reviewed at a later date. They say they are suffering because of missed shipments and disrupted production due to strikes and that a minimum wage provision will hurt them.
www.bgmea.com.bd/
Bangladesh apparel industry in need of a makeover
The apparel industry in Bangladesh needs to improve its image for guaranteeing the country's long-term prosperity. The collapse of Rana Plaza in Dhaka in April 2013 sent shockwaves through the textile and clothing industries. More than 1,100 lives were lost in the incident, and Bangladesh's reputation as a reliable low- cost location for clothing suffered a severe blow in the eyes of consumers and major brands.
Some western buyers have cancelled orders in the aftermath of the Rana Plaza collapse and placed them elsewhere. Moreover, a number of Bangladeshi factories have been blacklisted. There is a danger retailers and consumers will view cheap clothing from Bangladesh as coming at too high a cost in human terms, and that they will prefer other countries where costs are low but similar tragedies have not occurred -- such as Cambodia and Vietnam.
Sales in the US import market could be negatively affected following a decision by the US government to suspend Bangladesh's preferential duty treatment under the Generalised System of Preferences (GSP) scheme, and Bangladesh's preferential access to the EU could also be revoked if the government does not take necessary steps to significantly improve building safety standards and overall labor conditions in the country.
The government and major brands need to work together with suppliers to change the apparel industry into one in which there are safe factories, decent wages and respect for workers' rights. However, gains will only be sustainable if the added labor costs are absorbed by buyers as well as manufacturers.
Mexico sore about Chinese subsidies
Mexico wants China to do something about the subsidies China grants its textiles and garment manufacturing sector. In October 2012, Mexico had filed a complaint with the World Trade Organization, blaming the Chinese government for subsidizing its textile and garment manufacturing sector, resulting in unfair competition for the Mexican textile and clothing industry.
Meanwhile Mexico and China have agreed to increase trade and investment flows between the two countries and to support business missions to explore new areas of economic and commercial cooperation. Mexico feels that while it has dropped tariffs on a host of Chinese goods in recent years, the Chinese market remains for most purposes closed to Mexican goods. So Mexico wants to take a more aggressive stance with China. It hopes to gain greater access to Chinese markets, especially selling foodstuffs, manufactured goods, minerals and energy.
Mexico alleges Chinese manufacturers get export credits, have strong government support and enjoy the benefits of other unfair trade practices. The country wants a level playing field. China has a massive trade surplus with Mexico. Last year, it exported $57 billion worth of goods to Mexico, while Mexico only exported $6 billion to China.
Zimmer Austria sees good prospects in India
Zimmer Austria has pioneered many global innovations and milestones in the textile printing industry for over more than a century. The company has established a strong presence across the globe as a highly reliable printing machinery manufacturer. The company has been working in the Indian market for many decades. Since 2012, it has had a tie-up with ATE for marketing and sale of digital printing machines in India. Zimmer sees a lot of potential in India for carpet printing machines. Thanks to the high duty structure for import of carpets, and also the increasing demand from hotels, offices and the home segment, the domestic demand for carpets is bound to grow exponentially.
Another area of opportunity is terry towels. India is one of the largest manufacturers and exporters of terry towels and Zimmer Austria has also developed a digital printing machine for terry towels. Zimmer Austria is actively working on reducing printing and ink costs, which are the most critical component of operational costs. It is currently testing inks made in India for the Indian market, similarly inks from China, Korea and Japan for their respective markets.
A world leader in printing technology, Zimmer Austria manufactures a complete range of machinery for textile and carpet finishing covering digital printing systems, flat screen and rotary screen printing, coating, steaming, washing, and drying at its plants in Austria.
www.zimmer-austria.com/en/company/about-us/index.html
Australian wool market flexible in spite of negative sentiments
The wool market in Australia continued with its auction this week and received excellent results. Amongst increasingly negative sentiment flowing from several Chinese suppliers, the market showed great resilience, albeit under a very small volume flowing through the system. As the sale progressed, all type and micron categories showed a confident resurgence and by the close of selling had added a few cents to their previous quotes. The skirting and carding markets continued to be at very attractive levels, with only the merino fleece sector looking for a spike upwards.
The small offering of spinners and best top makers at the Superfine (finer than 18.5micron) end of the selection continue to extract reasonable premiums out of the market, with some Italian, Indian and Chinese competition forcing a 50 to 60 cent price advantage over the micron indicator levels.
Crossbred and comeback types from 25 to 32 micron met with good demand and prices gained approximately 1 per cent for the series. After initial signs of a weakening in appetite for this sector, buyers rallied late in the week, with some new sales for prompt shipment keeping the interest and levels alive.
US’ Coolcore LLC awarded innovative technology certificate
Coolcore LLC, a company based in Portsmouth, NH (USA) has been awarded the Hohenstein Quality Label ‘Innovative Technology - Cooling Power’ for its temperature regulating fibres. The Coolcore textiles exploit the body's own sweat, or added moisture, to achieve cooling. The sophisticated design means that the evaporation rate is regulated and, as a result, the cooling effect of ‘evaporative cooling’ is significantly higher than in conventional materials.
These effects were investigated and evaluated scientifically using the WATson Heat Loss Tester measurement device developed at the Hohenstein Institute. The heat dissipated from the skin under very different ambient conditions, from tropical heat to cool temperatures, as well as the heat loss caused by high wind speeds can be quantified using the device.
With the award, the scientists at the internationally recognized and independent Hohenstein Institute in Bönnigheim, Germany, have confirmed the cooling effect of the textiles, which are entirely chemical-free and do not use latent heat storage or phase change materials (PCMs) that exploit a change in phase (solid-liquid) to absorb and store heat.
The Hohenstein scientists are therefore able to look at the textiles' different fields of application and the associated climatic conditions in a very flexible way in their investigations. As a result, WATson is also ideally suited to guaranteeing compliance with quality standards in the course of ongoing production monitoring.
Alpaca fiber generates huge demand in luxe apparel market
Alpaca fiber, both from Peru and Australia, is in high demand in the luxury apparel market across the world. This is mainly due to its natural range of colors and other environment-friendly qualities. The Peruvian Society of Registered Alpaca (SPAR) recently exported 7.1 ton of high quality alpaca fiber worth $1,25,000 to Italian fabric manufacturing company Fratelli Piacanza, known for manufacturing high-quality garments.
Australian alpaca fiber is extremely soft as compared to other fibers and therefore is suited for luxury next to skin wear garments. The vibrant range of natural colors of alpaca fibers provides it a clear product differentiation from other fibers as there is no need for use of harsh chemicals during the dyeing process. The fact that alpacas are often reared in welfare friendly conditions also carries a distinct advantage.
An alpaca is a smaller version of the animal llama. Alpacas graze at elevations of 10,000 to 14,000 ft on the Peruvian Andes. Their thick, sumptuous coats grow naturally in over 40 shades-from ivory to black, with all the greys and browns in between. Lighter shades of the fleece also take dyes beautifully. Alpacas are tended to by Andean herdsmen, who shear them every other year at the onset of the rainy season. The yield is about eight pounds of fleece per animal. Most of the fleece sheared from the first clip is classified as baby alpaca.
Woolmark to help Vietnam make woolen garments
Australia’s leading wool company Woolmark has embarked on a plan to help Vietnam’s garment sector produce woolen products and increase the sector’s competitiveness and profits. Speaking at a press conference in Ha Noi, Jimmy Jackson, GM at Australian Wool Innovation, announced the plans of Australian support to Vietnamese apparel sector in developing wool garment production and its sales in global markets. Jackson said Vietnam has a well-established textile and garment manufacturing industry, skilled human resources, and infrastructure. He added that Vietnam is also the second-largest clothing exporter to the US and the third to Japan. However, the competitiveness of Vietnam’s garments is being affected due to the absence of wool spinning plant.
Jackson said Australia’s Merino fleece wool would be suitable for Vietnam’s garment sector and help it to raise its competitiveness. He informed that Woolmark was investing Au$ 240,000 (US$ 227,000) in a Vietnamese project, which began in 2012, and experts have already transferred weaving and fleece wool production technology to Vietnam under the project.
Bangladesh, Uzbekistan to finalize cotton deal
Bangladesh is about to finalize a deal to import cotton from Uzbekistan. This will ensure the supply of 200,000 tons of cotton annually for the Bangladesh textile industry. Uzbekistan is the sixth largest cotton producer in the world with 4.6 million bales produced in 2011. The two countries already exchanged the draft of the memorandum of understanding (MoU) which is now under scrutiny.
The draft MoU states that both parties will cooperate with each other for direct delivery of raw cotton from Uzbekistan to Bangladesh on a regular basis. The Uzbek state-run foreign trade companies namely Uzprommashimpex, Uzinterimpex and Uzmarkazimpeks will supply the cotton to any importer registered in Bangladesh.
About 35 per cent of the total cotton imports to Bangladesh is from Uzbekistan. Bangladesh and Uzbekistan had agreed for cooperation on various bilateral trade issues including cotton supply in a meeting of the Joint Working Commission for Trade and Economic Cooperation held in Tashkent in May 2012.
Bangladesh is also holding talks with India for getting 1.5 million bales of cotton a year. The country's yearly requirement of cotton is nearly 4.0 million bales, of which 0.12 million bales are produced locally. Rest of the demand -- nearly 98 per cent -- is being met by importing it from various countries.
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Bangladesh’s historic muslin cotton mill reopens
Bangladesh’s historic state-owned Muslin Cotton Mills has reopened in Gazipur district after the ownership was transferred to Masers Reefat Garments Company. Production was stopped at the largest muslin cotton mill in Asia in 1990 for its failure to pay wages and salaries to its 2,885 workers amid serious mismanagement.
Set up on 100 acres of land on the bank of river Shitalakhya in Kaliganj in 1952, the mill once had three sections — spinning, looming and dyeing. Before its closure, the company used to make fabrics and yarn out of cotton. Speaking at a function to reopen the closed textile mill, Abdul Latif Siddiqui, Minister of Jute and Textiles, said after 24 years of closure the government took an initiative to reopen the historic cotton mill. The Muslin Cotton Mills would generate employment opportunities for 25,000 people in the Gazipur district.
China to announce new cotton buying policy next season
A new regulatory policy for purchasing and storage of cotton in the domestic cotton market of China was discussed at the recently held 2013 China International Cotton Conference at Qingdao city of Shangdong province of China. Speaking at the conference, the deputy director of Chinese National Development and Reform Committee, Liu Xiaonan, to eliminate the current problems of the domestic cotton market of China, a national storage and purchasing policy will be formulated for the new cotton season beginning September 1, 2013.
Xiaonan pointed out that the current cotton-control policies focus on maintaining stability and continuity of the Chinese cotton market, and meet the needs of the domestic cotton textile enterprises. The current policy includes delivery and import policies for the national cotton reserve, which would last till the end of July, according to sources.
For the coming cotton season, new standards for purchasing and storage of cotton, along with valuation methods, will be implemented, which will be announced soon, Xiaonan said. He added that the proposed cotton purchasing and storage policy is an attempt to improvise on the previous ones, and the regulatory body is open to suggestions.
Chinese firms forced to use local cotton
Chinese textile manufacturers are competing to secure import quotas for well-priced and high quality cotton, as the government pressures them to use more expensive lower quality domestic supplies. The spread between Chinese and imported cotton has hit China's textile industry hard. Its one major reason Chinese manufacturers are becoming much less competitive in the global market.
In January, the Chinese government imposed a 3:1 rule on manufacturers. By which they had to use three tons of Chinese cotton to secure quotas to buy one ton of imported cotton. The quality of Chinese cotton is much lower than that of imported cotton, which generates more losses in production.
The goal is to reduce the size of the eight million tons of stocks the Chinese government has bought to assure sufficient local supplies. The policy is already weakening the price of China-made cotton, but with farmers demanding high prices, it is still higher than foreign cotton.
The International Cotton Advisory Committee has warned cotton prices are expected to rise in the 2013-14 season, despite cotton stocks heading towards a new high. The inter-governmental group blamed stockpiling by the Chinese government, and the expected tightening of stocks outside of China.
Hong Kong to host Mega Show for home textiles in October
Hong Kong will host Mega Show Part 1 form October 20-23, 2013 and Mega Show Part 2 from October, 27-29, 2013. These two influential trade shows are the main sourcing focus for gifts, housewares, toys, premiums and stationery in Hong Kong during the annual autumn buying season and must-attend events in the Southern China’s sourcing calendar.
Over 4000 worldwide suppliers from 36 countries will be participating and presenting new ranges and products to worldwide importers, distributors, wholesalers and trade buyers. Both new and established suppliers from Australia, Austria, Bangladesh, Belgium, Cambodia, Canada, Mainland China, Czech Republic, France, Germany, Guatemala, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, South Korea, Latvia, Macau, Malaysia, Mexico, will be participating in the show.
Mega Show Part 1 will present seven major product sectors, gifts, housewares and home decor, Christmas, festive and seasonal, toys and games and baby and child, glassware trends, gift-wrap and packaging, along with Asia and international focus which includes international suppliers presenting a diverse selection of gifts and home wares.
Mega Show Part 2 with exhibitors from 11 countries will present four major product sectors, gifts, home decor and outdoor living, home textiles and house wares, plus Asian stationery with over 200 companies displaying the best of Asian print, pen and paper, as well as office and school supplies.
Over 57,000 buyers attended the shows in 2012, with the growing attendance of buying power from emerging markets. The two shows take place annually at the downtown Hong Kong Convention and Exhibition Centre in Wanchai, Hong Kong.
