Regional Notes

• Exports to US, Japan stay high: China is completing its eleventh five-year plan in 2010 and entering the next five-year development phase. Between the years 2000 that marked the beginning of the tenth five-year plan and 2006 when the eleventh plan started China's textile and garment exports expanded almost 176% from US$52.21 billion to $144.10 billion. And it continued to rise through the early years of the eleventh plan-to $171.20 billion (up 18.84%) in 2007 and $185.23 billion (up 8.20%) in 2008. Indeed, the growth rate has moderated over the years; but, at the same time, no country has been able to capture as large a share of the expanding global market for textiles and garments as China has. Trade figures available from the World Trade Organization show that China's share of the global textile and garment market doubled from 15% in 2000 to 30% in 2008 whereas the market share of its nearest rival, India, remained unchanged at 3% though its total textile and garment exports also increased in a rapidly expanding global consumer market-by just over 83% from $11.53 billion in 2000 to $21.12 million in 2008. In essence, China established as the world's unbeatable clothier.

  Now, though, China's seemingly unstoppable export surge has reversed. Textile and clothing exports in the first 11 months of the year fell to $154.12 billion or down more than 11% from the year-ago level. Nonetheless, shipments to the United States and Japan held well. According to China National Textile and Apparel Council (CNTAC), exports to the US climbed just over 1.5% to US$25.35 billion, and to Japan by a little over one-quarter of a per cent at $20.1 billion.

Hong Kong

• EFTA free trade talks: The government of the Hong Kong Special Administrative Region (HKSAR) and the European Free Trade Association (EFTA) that comprises Iceland, Liechtenstein, Norway and Switzerland are to begin negotiations on a free trade agreement in early 2010. Such an agreement, according to a Hong Kong official, should provide the Hong Kong business sector with better market opportunities in the EFTA states that are not part of the European Union. The negotiations will encompass a wide-ranging scope, with emphasis on trade and investment liberalisation and facilitation.

India

From Savita Gaur, Mumbai

• Back on the growth path: After more than a year-long widespread worry over falling exports, declining production and massive retrenchment of workers, India's textile sector is looking up again. Export order books are getting filled up rapidly, production is rising, workers previously laid off are getting back their jobs and European machine manufacturers are sending sales missions to the country.

• Really, recession isn't bad for all: Who can ever dispute the dictum that every crisis will offer new opportunities! Textile industrialists in two northern cities in India -Ludhiana in the state of Punjab and Bhilwara in Rajasthan - have proved the dictum true once again.

• Weighed down by debt burden: The winds of new fortune now blowing over the Indian textile sector cannot necessarily blow off all problems of all players in the sector. Some are saddled with huge debts rising partly from plant modernisation they embarked upon just before world economy went into recession.

• Call to ban cotton exports: The president of the Federation of Indian Export Organisations, A Sakthivel, wants to see export of raw cotton banned immediately or limited to a ceiling of 68,000 tons per month or 850,000 tons a year.

Thailand

From R.H. Leary, Bangkok

• The Birla world: Aditya Birla Group has been operating in Thailand for 40 years. Indo Thai Synthetics Co., established in 1969 as Birla's first overseas venture, spins viscose rayon, polyester and their blends on open-end frames (105,000 positions); it is the largest producer of OE viscose yarn in Thailand. Awards received include ISO 9001 (QMS) and ISO 14001, as well as Oeko-Tex 100. The firm's products are used in such industries as apparel, upholstery, sportswear, chenille, tyre cord, canvas and fishing net.

• Wage adjustment: On Xmas Day (which has little significance in Buddhist Thailand) the Central Wage Committee (officials, employers, employees) agreed to raise the minimum daily wage rate for Bangkok and adjoining Samut Prakan province from 203 to 206 Baht.

• PET shop: Looking at the possibility of investing US$900 million (roughly Baht 3 billion) to produce polyester in Europe, IndoRama Polymers PLC (IRP) has first to decide in the next few months whether to erect a new plant or purchase an existing one.

• Air pollution: As predicted in this column in November, the Thai Supreme Administrative Court upheld the ruling of the lower Administrative Court regarding the failure of many operators of potentially hazardous industries to comply with a clause in the Constitution requiring projects considered harmful to health and the environment to pass the scrutiny of an independent organisation composed of medical experts, environmentalists and academics (Section 67).

• New design centre: A completely new multi-brand women's boutique opened in Bangkok on Christmas Day in premises of a thousand square metres in the downtown Siam Centre Shopping Complex, complete with plans to stock goods carrying more than 40 different labels.

• Plant death: It appears that, on Friday, December 18, a gas gauge in the viscose line at the Saraburi plant of Thai Rayon PLC malfunctioned and released hydrogen sulphide. One of the five technicians attempted to sort the problem out inhaled so much of the gas that he passed out and later died. The outcome is that the plant was ordered by the department of industrial works in the Ministry of Industry to cease operations for 30 days.

  This is undoubtedly a black mark for Thai Rayon since 2004 when two youths hired by a sub-contractor to clean a tank truck that had been used to transport waste from Thai Rayon's wastewater-treatment ponds fell into the tank and died through inhaling the hydrogen sulphide (see Textile Asia May 2004, page 77 and July 2004, page 62). The Senate committee on interior administration found that the waste-disposal system failed to meet the national standard.

  It appears that that incident failed to be a warning to senior staff at Thai Rayon. Now someone should look very closely at the current mode of operation; it may be in need of an overhaul.

• Share offer: Back in August, as part of a reorganisation of its overseas businesses, the Belgian group Solvay SA transferred its holding of 49.99% of the Thai producer of PVC Vinythai PLC to its Dutch subsidiary Solvay Chemicals and Plastics Holding B.V. That company is currently offering to buy on the Stock Exchange of Thailand those Vinythai shares that it does not already own at 6.15 baht each, slightly greater than the immediate pre-offer quote of 6.10 baht. The price rose to 6.25 baht upon the announcement.

Vietnam

From Baari La Inggi, Jakarta

• A Vietnam-based strategy: A leading South Korean manufacturer of terry towelling products, Songwol Co, has built a new plant in Vietnam as part of its expansion strategy aimed at becoming a major international supplier with its newly created Terry Gallery brand. Songwol's investment in Vietnam, known as Songwol Vina, represents an important part of the company's strategy to enhance the international appeal of its products and realise its global ambition.

Bangladesh

From Kazi Azizul Islam, Dhaka

• Leather goods exports surge: Bangladesh exports of personal leather goods like belts, wallets, etc., to the United States made a remarkably huge jump while the country's total garment exports declined. According to an official of the US Trade Centre quoted in local media, the United States took 107,000 pieces of personal leather goods from Bangladesh during January-October 2009 compared with only 1,900 pieces in the corresponding period of 2008. Total garment exports to all markets, on the other hand, declined by more than 7% during the first five months (July-Nov 09) of the current fiscal year, from the year-ago level, to US$4.7 billion, according to the country's Export Promotion Bureau.

Pakistan

From K.K. Suri, Karachi

• A bitter pill for all: The controversy between cotton spinners and exporters of value-added apparel and home textiles continues unabated since October causing worrisome uncertainties in the market. Throughout December, strident protests from both sides dominated the textile scene. After several meetings that the Textile Ministry held with contentious parties the government decided not to ban export of cotton yarn or impose regulatory duty on exports as demanded by apparel and home textile exporters. Instead, it chose to monitor cotton yarn exports. Neither exporters of cotton yarn nor manufacturers of apparel and home textiles are happy with the path the government has chosen. Spinners of course want to gain the best from rising price of yarn in the international market. At the same time, apparel and home textile exporters facing stiff competition in the international market cannot pass on the high cost of raw material to buyers of finished products.

• Plant upgrades for increased output: One of the leading manufacturers of quality socks in South Asia, Interloop Limited based in Faisalabad, Pakistan, has embarked recently on a modernisation and expansion plan aimed at increasing its annual production of socks to 27 million dozens and dyed yarn to 1,500 tons.

Sri Lanka

From A.H.H. Saheed, Colombo

• New Projects in garment sector: Sri Lanka's garment industry sector seems to be getting perked up with new export-oriented investment activities. A garments manufacturing project backed by investors from Germany and Hong Kong is in the making while a local company is planning a home textile manufacturing plant, Besides, an India-backed warehouse aimed at helping Sri Lanka's garment industry reduce cost and shipping lead time is also being talked about.

Australia

• A tax benefit on the way out: The wind-up of a duty concession scheme in June 2010 will result in the double-taxing of garments made overseas from Australian-made fabrics, according to the Council for Textiles and Fashion Industries of Australia (TFIA), the peak body representing more than 4,000 textiles, clothing and footwear businesses employing about 10% of all manufacturing workers in Australia.

European Markets

• EU-China summit issues a call for early accord: Concluding their twelfth summit on Nov 30, the leaders of the European Union and China stressed the need for early conclusion of the partnership cooperation agreement between the two trading partners. They have pledged to speed up the ongoing negotiations for an early conclusion of the EU-China partnership cooperation agreement.

• Industry groups conclude MoU as EU-Korea FTA enters final stage: The European Union and South Korea have finalised for ratification what is said to be the most important free trade agreement ever negotiated by the EU. It promises tremendous opportunities for European traders, service providers and investors.

• India's textile minister visits Rieter: The executive chairman of the Rieter Group, Erwin Stoller, and the CEO of Rieter Textile Systems Peter Gnägi received the textile minister of India Dayanidhi Maran at Rieter's headquarters in Winterthur during the Indian leader's visit to Switzerland and other European countries in September to establish contact with European industries and attract them to invest in India. Mr Maran was accompanied by a delegation of Indian politicians, textile industrialists - among them many Rieter customers - and members of various associations.

• A strategic partnership: Germany's 3D body scanning and ergonomics simulation company, Human Solutions GmbH, has acquired a 45% stake in the Italian company, assyst Sistemi. Human Solutions had taken over the German operation of assyst earlier this year and put it back on course for success. The partnership now forged with assyst in Italy has even greater significance

American Markets

• One step forward…and miles to go: Washington's dispute with Beijing over state subsidy supporting China's exports has been settled amicably. Serious disagreements however exist in many other areas which the US Trade Representative says will be pursued vigorously. The agreement now concluded represents, according to US Trade Representative Ron Kirk, "a victory for the full spectrum of US manufacturers and their workers," given the reach of Chinese industrial policy initiatives. He also said that will at the same time continue to pursue "vigorous and expanded bilateral engagement to resolve the serious disagreements that remain over China's various industrial policy measures."

• Irritated about Vietnam: When Barack Obama made his first trip to Asia as the 44th president of the United States last November, he announced Washington's intention to shape a regional agreement with Trans-Pacific Partnership (TPP) countries. That now seems to be causing some level of consternation in US textile circles. Mr Obama's announcement signalled that the US was ready to move quickly to forge this new partnership and the US Trade Representative's office soon started consultations with various groups including countries that have expressed interest in potentially joining the negotiations. Among those countries is Vietnam, the second largest apparel supplier to the US. That raised many eyebrows in the US textile sector. For example, opposing Vietnam's participation in the partnership talks, the president of the National Council of Textile Organizations (NCTO), Cass Johnson, points out that US manufacturing trade deficit with Vietnam has increased by 48% since permanent normal trade relations were granted to Vietnam in 2006. The imbalance now is $8 billion in Vietnam's favour.

Fashion Trends

• Fostering creativity as driving force for success: As the year 2009 drew to its close, Hong Kong hosted the Business of Design Week. The forum held on this occasion added credence to Hong Kong's well recognised initiatives in design and innovation, complementing the exhibition featuring displays which, in the words of officiating guest Victor Lo served to foster creativity as a driving force for Hong Kong's success.

  France was at the forefront on this occasion, and French designers offered insights into the most pressing issues of the day, in both fashion and other areas of design. On site were representatives from Hermes, Prada, Jean-Paul Gaultier, and many other design houses and businesses to exchange ideas on both design and economic development.

  By Gail Taylor

New Products

• Nanofibre gloves for firm grip on the club: The ployester nanofibre called Nanofront has found a new application. Used in the palm of golf gloves it helps a firm grip on the club and promises substantial sales revenue for its produdcer Teijin Fibers. Golf glove using nanofibre material-a world's first-is manufactured by Acushnet Japan under the FootJoy brand called Nanolock. It went on sale in Japan recently.

• Invista's PET plays a critical role to encase Titanic coal: Performa film and sheet produced by Invista has found application in cherishing a historically significant item. It is being used to encase coal from the famous Titanic, which is now available to the general public for purchase. The clear APET sheet creates a durable package that, when combined with the glossy paperboard mounting base embellished with metallic ink, resembles a miniature version of the display cases used in museums and galleries.

• A diffusion agent for super dyeing effect: A new diffusion agent that can reduce dyeing temperature, shorten the dyeing cycle, improve dye yield and reach the final tone quicker has been developed by Huntsman Textile Effects for polyester and its blends. Named Univadine DFM, this product, according to Hutsman which is a global manufacturer and marketer of differentiated chemicals, actively supports high dye migration which is essential for perfectly level dyeing across the whole batch.

• High-performance twistless flax materials: A new family of materials - Biotex Commingled Flax/PP, Biotex Commingled Flax/PLA and Biotex Flax yarns, fabrics and preconsolidated sheets - which use a unique twistless technology to provide high levels of performance and processability normally associated with glass reinforced materials, was launched recently by the UK-based Composites Evolution Ltd.

New Equipment

• Fastest 4-bar raschel machine: A new raschel machine which Karl Mayer will release in April is said to be the world's fastest four-bar raschel machine, and it will set new speed standards. According to Karl Mayer, this piece of equipment, RSE 4-1, will set new speed standards and operate with precision accuracy - completely independently of the climatic conditions.

• Making the final cut with CutPlan: OptiTex that develops innovative, user-friendly 2D and 3D CAD solutions for all cut-fabric and fashion-related industries has unveiled the latest module, CutPlan that will allow OptiTex users in the fashion industry to control their costs by offering a global solution to dramatically reducing material waste, the amount the remnant pieces and control production costs when handling smaller order sizes.

• Drought tolerance technology for cotton: Bayer CropScience, a subsidiary of Bayer AG, has obtained exclusive worldwide rights from Britain's FuturaGene PLC, a leader in plant genetic research, to utilise a FuturaGene drought tolerance technology in cotton. This technology is intended to protect the yield of cotton plants when they are subjected to drought.

Company Reports

• Rising on the wings of recovery: Hardly anyone operating in the global market arena was able to escape the impact of the global economic crisis; but all were not hit at the same time. As an upward turn is now emerging tentatively, Trevira - a Germany-based global supplier of polyester products needed at the start of the supply chain - is looking ahead for stability and steady growth.

  The company did not feel the impact of the global recession until relatively late, says a statement issued with the press kit for Heimtextil, the international trade fair for home and contract textiles scheduled to take place in Frankfurt/Main from January 13 to 16, 2010. But when the global economic tsunami finally did hit the company, it was really hard. Not only was the automotive sector affected, in apparel and home textiles, too, orders have slumped sharply since the end of 2008, with hygiene and nonwoven business as the only exception, remaining relatively stable.

• With better than forecast Q3 earnings, Lanxess expects even brighter future: The growing China market played a critical role in pushing up Laxness AG's sales growth in the Asia-Pacific region from 7% to 11%. The region accounts for a quarter of the company's global sales. On the whole, EBITDA pre exceptionals for the period was 143 million euros against the expectation that it would be around the level of second quarter earnings of 112 million euros.

• Li & Fung seals another partnership: Hong Kong-based global consumer goods exporter Li & Fung and a leading North American company, Hudson's Bay Trading that operates retail chains in Canada and the United States, have concluded a global sourcing strategic partnership agreement.

• Esprit gains new spirit from China deal: It's said to be a win-win deal-the major partner wanted to vacate the textile sector and the minority partner liked to beef up its strategic position in a highly potential market. Both found happiness as the Hong Kong-based China Resources Enterprise agreed to sell its 51% equity in the joint venture Esprit China to the minority partner Esprit Holdings for 3.88 billion Hong Kong dollars (nearly US$500 million). This transaction which is expected to be completed in the second half of 2010 frees China Resources from the loss-making textile sector to concentrate on core interest areas while enabling Esprit to gain full management control to continue its expansion in China and integrate China-based activities into its global system and consolidate sales in China into the Esprit group.

Executive Desk

• Dornier gives virtual factory network a boost: The German textile machine manufacturer Lindauer Dornier has joined the cooperation network, Virtual Factory Baden-Württemberg (VFBW) as a corporate member.

  Welcoming this manufacturer of high-quality weaving machines and specialty machinery to the network, VFBW chairman Edmund Dehnel said: "We are very pleased that with Lindauer Dornier we now have a renowned machine constructor within our ranks." He called it an important milestone in the development of the VFBW, which is a cooperation network of small and medium-sized companies located in the Lake Constance area.

• Rieter Award for textile professionals: Four textile engineering students from Bangladesh, Brazil, India and Kazakhstan have won the 2009 Rieter Award for supporting textile education and creating global communication among students, institutes and Rieter Textile Systems. Rieter has been offering this award annually since 1989.

• BASF names Asia-Pacific head of legal and tax: Dirk Elvermann, who has been working with BASF since 2003, has been appointed director of legal and tax affairs in the Asia-Pacific region effective January 1, 2010.

• Positive rating for Core Solutions: Core Solutions, a leading provider of Product Lifecycle Management (PLM) Global Sourcing and Vendor Collaboration solutions in the retail industry, has been granted positive rating in Gartner's Market-Scope for PLM for Apparel, Footwear and Accessories.

• Mazhar Yusuf (1925 - 2009): The founder of the Pakistan Textile Journal, Mazhar Yusuf, passed away on last November 12. He was 84 and has been suffering from Parkinson's disease.

• Rieter sells nonwovens activities: The Rieter Group that develops and produces sophisticated system solutions for the textile and automotive industries worldwide is selling its wholly owned subsidiary in France, Rieter Perfojet SAS, to the Austria-based international technology group Andritz. Completion of the transaction is subject to the consent of the anti-trust authorities.

• New chairman for PolyU council: The chairman of the Esquel Group, Marjorie Yang Mun-tak, has been appointed chairman of the Hong Kong Polytechnic University (PolyU) council, effective January 1, 2010.

Events Calendar

Major textile and clothing exhibitions, conferences and seminars for January-October 2010.

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