Textile Sustainability is Really a Thing. Are You Ready for It?

OekoPic2Sponsored by OEKO-TEX®

It all started with food. First people became concerned about the pesticides and pharmaceuticals they were unwittingly ingesting. Then they started worrying about the impact of their food purchases on the environment, animals, and farmers. Today, grocery shelves are stocked with foods that are certified organic, GMO-free, hormone free, cage free, preservative and dye free, free range, dolphin safe, fair trade, and a wide variety of monikers for foods that are free from harmful substances and responsibly produced. Why wouldn’t they feel the same way about their textiles? Well, it turns out that they do.

According to “The Key To Confidence: Consumers and Textile Sustainability—Mindsets, Changing Behaviors, and Outlooks” conducted with 11,000 global consumers by Anerca for the OEKO-TEX® Association, 40% of consumers are concerned about harmful substances in their apparel and 39% are concerned about their home textiles. Those numbers are not far behind the 59% of people who are concerned about harmful substances in their food.

The numbers indicate that consumers are not yet as well informed about the hazards in their closets and drawers as they are about the ones in their kitchens. However, that is changing. Information about the textile industry’s environmental and social shortcomings is rapidly reaching consumers. News stories about lead and formaldehyde in baby clothes are making headlines. NGOs with environmental and social agenda are becoming more numerous and vocal. Documentaries about factory disasters, rivers polluted by textile mills, and exploited employees are making the favorites lists on Netflix. Brands and retailers who are thought-leaders in sustainability are actively promoting their environmental and social programs. Data from “The Key To Confidence” study indicates that when consumers learn the facts, they think differently about the textiles they buy.

Consumers want their clothes to be safe from harmful substances. In fact, 60% of respondents in “The Key To Confidence” study rated it as an 8, 9 or 10 on a 10-point importance scale. Clothes and home textiles that are made with respect for the environment and textile workers also ranked high with 53% and 54% respectively rating it an 8, 9, or 10. That combination of concerns paints the scope of textile sustainability.

OekoPic1My Family And The Global Family

Textile sustainability touches consumers in two ways. First is the close-to-home aspect. Consumers want safe products for their families. Most people take the safety of textile products for granted, as evidenced in “The Key To Confidence” study. However, when they learned about the possibility of harmful substances like pesticides, carcinogenic dyes, and heavy metals to name a few, consumers began to think about their textiles differently. “I had no idea clothing contained harmful substances. When I learned certain foods and packaging contained harmful substances, I changed what I purchased and I would probably do the same for clothing,” said one consumer after learning more.

The second piece of textile sustainability has to do with the effect a textile purchase can have on the environment and on people who make textile products. The topics of pollution, child labor, sweat shops, and fair wages resonate with consumers. And, once they make the connection back to that new shirt they just bought, these concerns have them thinking differently about choices they will make in the future. “I’ve seen documentaries and articles but it’s really sinking in. Now I’m upset and I want to make a difference when I shop for clothes,” one study respondent stated.

Lifestage and generation can influence whether a consumer places more emphasis on the close-in aspects of textile sustainability or the global implications. In general, people with children tend to be a little more concerned about harmful substances. This is especially true for those with concerns about allergies, asthma, and autism. Millennials as a rule are the generation most concerned about the environmental and social implications of textile sustainability.

Doing the Right Thing — The Sustainability Mantra

With regards to sustainability, consumers around the world state that they want “to do the right thing.” They want to buy textiles that are safe. They want to make purchases that don’t cause harm to the planet or support unfair labor practices. Of course, people who live in textile producing regions are much more aware of the sustainability issues the industry faces. Now, thanks to the internet and social media, which give environmental and social advocates a global voice, the concerns in textile producing regions are no longer isolated. As people in other parts of the world learn more, they make the connections and are motivated to make more responsible decisions.

But people want help to do the right thing. People are busy. People don’t have the time to investigate every purchase they make despite how committed they are to making responsible decisions. That’s where brands and retailers can play a crucial role for their consumers. Four in ten (42%) consumers like to know the values and principles of the brands of clothing they buy. And 38% like to know what small steps brands have taken to be more sustainable, even if they are not yet fully “green.”1

Many consumers (64%) in “The Key To Confidence” study who are already thinking about textile sustainability reported that they do check claims when shopping.  A certification label from an objective, independent organization like OEKO-TEX® ranks first with more than half. Forty-nine percent say they check the fabric contents. About a third also claim to check a brand’s sustainability practices.  Of those who say they do not check claims regularly, most say that it is because they trust the brand or retailer or there is a certification label that reassures them.

Short Cuts to Trust

Consumers view brands, retailers, and certifications as short cuts to trust. Trust them, trust in their products. Shoppers count on these parties to do the right thing so that they can be confident that they are also doing the right thing. This makes purchase decisions easier and more efficient and enables consumers to take small steps toward living a more responsible, sustainable textile life.

In “The Key To Confidences” study, OEKO-TEX® explored textile certification in depth. Again, they found that consumer interest in certified clothes and home textiles was quickly approaching interest in certified food. Sixty percent of consumers say they are interested in certified clothing and 56% are interested in certified home textiles compared to the 80% who are interested in certified food. With food leading the way, textiles will follow, and on a much shorter learning curve.

So, what can brands and retailers do now to prepare? The answer is to provide the information that consumers want and make it easy for them to find it. If products are certified by an independent third party like OEKO-TEX®, call it out on labels and hang tags. If factories are implementing new resource conservation actions or programs to benefit workers and their communities, put those stories on websites, in advertising, and on social media. Share sustainability plans and corporate responsibility programs. Be open and honest about the current state and chart a reasonable path to one that is even more sustainable.  Consumers are learning that there are problems. Now they are looking for the companies that provide the better options.

The Age of Millennials

Why the sense of urgency about textile sustainability? OEKO-TEX’s “The Key To Confidence” study clearly indicates that consumer interest is growing. The most important point for brands and retailers to consider is that millennials are the ones driving that interest.

Millennials, born between 1981 and 2000, are the largest generation and represent about a third of the world’s population. They have come of age under the shadow of climate change. They are the most media savvy age cohort so their access to news and their ability to engage with and share information is immense. They have been raised in a certified world, particularly in terms of food, and understand the value. The generation, whose oldest member is 36, is poised now to move into leadership positions in families, industries, and government.

With regards to textile sustainability, millennials in “The Key To Confidence” study were much more aware of the industry’s shortcomings than Boomers with 26% of millennials citing the textile industry as a major polluter as opposed to 16% of Boomers. As a result of their greater knowledge, millennials are much more likely to be worried about harmful substances in their clothes—43%— and home textiles—41%—than Boomers at 31% for both. And when millennial parents were asked, their levels of concern were even higher. More than half of this group (51%) were worried about harmful substances in clothing and 48% about home textiles. . “As a mother, I’m very interested in making sure that our clothes and home textiles are safe from harmful substances and environmentally and socially sustainable,” explained a millennial Parent.

The other important characteristic of this generation is that that their connectedness to global information can sometimes be overwhelming and often leads to skepticism. millennials, almost more than any other generation, want information to be certified, third party, and independent or they listen to information from sources they trust like friends, like-minded organizations, and their favorite brands, certifiers, and retailers. Therefore, brands and retailers who can offer millennials that short cut to trust, will be well positioned to gain favor with this critical segment.

The Key to Confidence

When researchers asked consumers more about textile certification, half of consumers who had purchased certified clothing said that they did so out of concern for harmful substances. Consumers saw purchasing certified textiles as an easy way to do the right thing, to take responsibility, and to feel better about the clothes they buy

When exposed to OEKO-TEX®, consumers gave it high marks for being ethical, trustworthy, expert, and committed. Nine in ten consumers in the study said that an OEKO-TEX® label would give them confidence in the textile products they purchase. The attributes of OEKO-TEX® certification that generated the most confidence were testing for harmful substances, environmental and social monitoring, and objectivity and independence.

The STANDARD 100 by OEKO-TEX® and the LEATHER STANDARD by OEKO-TEX® ensure that products are tested for harmful substances in accordance with the strictest consumer product safety guidelines in the world. The MADE IN GREEN by OEKO-TEX® denotes products that are both tested for harmful substances and responsibly made in OEKO-TEX® certified factories. In addition, OEKO-TEX® offers other certifications for textile products companies to help align the global supply chain, from textile chemicals to finished products, with the emerging consumer demands for safe, sustainable textiles.

For more information about “The Key To Confidence: Consumers and Textile Sustainability,” visit www.OEKO-TEX.com/webinars.

1Source: “The Key To Confidence: Consumers and Textile Sustainability.” OEKO-TEX® and Anerca, 2017.

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Sponsored by OEKO-TEX®

Kraig Biocraft Laboratories Accelerates Its Spider Silk Production Ramp Up, the Result Of Recent Meetings With Senior Vietnamese, U.S. Embassy Officials

ANN ARBOR, Mich. — July 24, 2018 — Kraig Biocraft Laboratories Inc., the developer of spider silk based fibers, announced today that Jon Rice, the company’s COO, held meetings with senior Vietnamese officials in Quang Nam, and U.S. government officials at the U.S. Embassy in Hanoi, Vietnam, to advance its production ramp-up plan for Prodigy Textiles Co. Ltd.

The company has already received its business license for Prodigy Textiles and its investment authorization for up to $2.2 million to fund the first phase of its spider silk commercialization scale up efforts in Quang Nam. This approved first phase includes the importation of the company’s hybrid silkworms and production of Prodigy Textiles’ unique high performance silk.

During the meeting with officials in Quang Nam, the company requested an acceleration of the project schedule, including authorization and the investment license for the second phase of operations, with a total investment cap of up to $50 million. The second phase of the company’s investment plan includes the development of a 50 hectare parcel of land and the construction of a new dedicated factory, designed to support the company’s five year expected recombinant spider silk production output needs. The company has already begun to work with a local architectural firm to develop the plans for this unprecedented facility and spider silk production complex.

“Our meetings in Vietnam were highly productive. Working with officials in Quang Nam, our team of consultants, and US government staff in Hanoi, we have established a clear plan and roadmap to accelerating our efforts to bring affordable spider silk to the global market,” stated Jon Rice, COO. “The first phase of this effort is underway now and, based on our recent meeting, we hope to have authorization for the expanded phase two effort well ahead of our initial schedule.”

Posted July 24, 2018

Source: Kraig Biocraft Laboratories

Columbus McKinnon Continues To Advance Board Of Directors’ Succession Plan

BUFFALO, N.Y. — July 24, 2018 — Columbus McKinnon Corp. — a designer, manufacturer and marketer of motion control products, technologies and services for material handling — today announced its Board of Directors further advanced its long-term succession plan with the appointment of Richard H. Fleming as chairman of the Board of Directors. Ernest R. Verebelyi, who was re-elected for another term at the company’s Annual Meeting on July 23, 2018, will continue to serve as a director and has been named Chairman Emeritus.

Ernest R. Verebelyi, chairman emeritus, said, “It has been my honor to serve Columbus McKinnon as chairman over these last 13 years and to participate in the company’s growth and improved performance during that period. We have been systematically implementing the Board’s long-term succession plan to provide for continuity and to enable a composition best suited not only for now, but also well into the future. Ricks’ history with the company and strong leadership and governance skills enable us to advance our plan while also affording the company stability through change.”

Richard H. Fleming, chairman of the Board, commented, “Ernie has made substantial contributions to the company during his 13 years as chairman. On behalf of the Board, I want to thank him for his leadership, which has been instrumental in defining the future potential of Columbus McKinnon. We believe management has created a clear roadmap with the Blueprint 2021 strategy to strengthen earnings power and is executing to plan. Concurrently, the Board is driving continuous improvement of our governance practices. In addition to the change in chairmanship, we have brought on two new directors, appointed new Audit and Compensation Committee chairs last year and are now rotating our Governance Committee chair in July as well.”

“Ernie and I also want to thank and congratulate Stephen Rabinowitz on his retirement as a Columbus McKinnon Director at the Annual Meeting. He has been a great contributor over the 14 years he has served on our Board and we appreciate the wisdom and experience he has provided.”

Verebelyi has been a member of Columbus McKinnon’s Board of Directors since January 2003 and Chairman of the Board since August 2005. Fleming joined the Board in March 1999.

Posted July 24, 2018

Source: Columbus McKinnon

4M Carbon Fiber Makes Strategic Addition To The Board Of Directors By Appointing Garo Artinian

KNOXVILLE, Tenn. — July 24, 2018 — 4M Carbon Fiber Corp. (4M) announced today that Garo Artinian, president and CEO of Artinian Holding, a global business advisory, has been appointed to the company’s Board of Directors.

Prior to his appointment, Artinian served as the chairman and CEO of Draka Holding NV, a publicly traded company, from 2003 to 2006. There, he helped grow revenues to more than three billion euros by restructuring the company’s debt, reorganizing its operations into a leaner and more focused structure, and expanding sales in key international markets. He also completed a joint venture with Alcatel, creating the second largest communications wire and cable company in fiber and copper worldwide. Guided by Mr. Artinian’s strategic vision, the venture successfully integrated several acquisitions. Together, these actions drove positive cash flows, improved collaboration between divisions and management, and in effect, turned the business around.

In 2006, Artinian retired from Draka and launched Artinian Holding, which specializes in supporting CEOs as they expand and integrate their businesses. Since then, he has served on the boards for Domaille Engineering, TPC Group, and Dura-Line, which was acquired by Mexichem in 2014. “Carbon fiber and composite materials are the future for many of the industries I have been involved with,” Artinian said. “I believe that 4M’s technology will revolutionize the manufacturing of carbon fiber, and I am proud to be part of the team.”

4M’s President Josh Kimmel commented: “Mr. Artinian’s years of experience in growing and running a multi-billion-dollar global public company in a similar sector is a perfect strategic fit for 4M. I am excited for the opportunity to learn from Garo’s wealth of knowledge and unique out of the box strategic thinking. We are confident that Garo’s addition will advance our near and long-term goals to accelerate 4M and establish the company as the leader in rapidly growing carbon fiber market.”

Posted July 24, 2018

Source: 4M Carbon Fiber Corp.

Twinery™ Open Challenge Asks Innovators: How Can We Enhance Life Through Textiles?

SAN FRANCISCO — July 24, 2018 — Imagine smart clothing that collects data on your movements while you exercise and provides coaching through an earpiece to improve performance in real-time. Or a revolutionary fabric that sculpts your body while remaining soft and comfortable.

These aren’t just concepts any longer, but real, tangible and successful technologies that Twinery™ has created with collaborators. Lumo Run is the first wearable sensor and app that acts as a portable running coach, created in collaboration with Lumo Bodytech. Silsoft, a silicone fabric designed to combine functionality, aesthetics and comfort, was developed in collaboration with a lone inventor. And now the company is seeking new concepts to bring to life with new collaborators.

The innovation arm of MAS Holdings, South Asia’s largest apparel manufacturer, Twinery is well-positioned to take the next step in the textile industry: smarter soft goods. MAS Holdings has been on the frontlines of manufacturing active, sports and intimate wear with the intent of maximizing human performance and comfort for the past thirty years. Twinery intends to take this further by integrating intelligence into the interface human bodies are in constant contact with – fabrics – in order to enhance efficiency and ease in day-to-day life.

Today, Twinery announced the launch of a program that invites inventors from any discipline or industry to step forward with innovative concepts: the Twinery Open Challenge. Twinery believes in humanizing technology by integrating it seamlessly into our lives through the medium of textiles. Human skin is always next to soft goods and Twinery is driving towards equipping these fabrics with the potential to enhance the human experience, pushing the functionality of fabrics further. The program is designed to connect the company with partners who have ideas to bring revolutionary new textile innovations to life.

The Twinery Open Challenge is open to individual inventors, startups, established companies, academic teams and others who have product concepts from any industry that can be applied in the soft goods and fabric sector. Twinery believes that the best innovations are born when different disciplines and industries share ideas to solve problems and create novel products.

“We don’t want to reinvent the wheel but rather use the entire world as a resource pool to identify the best talent and inventions,” says Twinery Director of Technology Sithila Dassanayake. “For innovators, this program is a great way to turn knowledge and ideas into cash. It’s also an excellent way for academics, engineers, inventors, research labs, and others with breakthrough ideas to join the community of innovators and get the resources they need to improve people’s lives with smart soft goods products.”

“We’ve got the lab facilities, relationships and expertise to take innovations to market. We’re convinced that solutions to problems and great new inventions are out there. The Twinery Open Challenge crowd-sources innovation to bring problem-solving products to the market faster.”

It’s easy to participate — innovators can browse the open challenges Twinery regularly posts online, and if they have a solution — whether a seed concept, existing startup or developing product — they can submit an idea using a sample online form. Participants can also share ideas that aren’t related to specific challenges — any concept that utilizes technology to enhance efficiency and ease in day-to-day life is welcome.

The Challenges

  • Wetness indicator for underwear;
  • Eco-friendly quick-dry material;
  • Comfortable labels for lace panties;
  • Low – grade cotton with the feel of Platinum cotton; and
  • Swimwear for menstruation.

To find out more about Twinery Open Challenge or submit an idea, visit https://openchallenge.twinery.co/

Posted July 24, 2018

Source: Twinery™

Vidalia Denim To Supply Sustainably-Made Denim Fabrics From State-of-Art Facility In Louisiana

VIDALIA, La. — July 24, 2018 — A new textile maker, Vidalia Denim, has secured its initial funding to produce yarns and fabrics for the North American market.

Housed at a 900,000 square foot facility in Vidalia, La., the heart of the cotton-producing region of the Mississippi Delta, Vidalia Denim will employ more than 300 full-time workers, and is designed to set the standard for sustainability, quality, and range flexibility in North America.

Utilizing next generation indigo dye technology, Vidalia Denim boasts an ability to use less water and manage its power usage more efficiently than any other denim mill in North America. This environmentally friendly chemistry and technology allows for filtration and reuse of process water reducing total water usage by more than 60 percent of a legacy mill. Discharge water will exceed U.S. and EU standards for clean water discharge. Additionally, more than half of the mill’s energy needs will be met from renewable sources.

In making the announcement, Dan Feibus, CEO, Vidalia Denim, said he greatly “appreciated the help and support of the US Department of Agriculture and the Small Business Administration in helping to make the facility a reality.” He went on to thank the valuable contributions of “the City of Vidalia, Natchez Inc., our partners at Killebrew Cotton, our lead lenders at Jefferson Financial Federal Credit Union and Greater Nevada Credit Union, and especially Donny Wooley and his team at Ark La Tex Financial.”

Feibus continued: “We are also excited to be part of the Vidalia/Natchez community. We know that we will be able to draw from a pool of highly motivated associates and look forward to creating an excellent work environment and being part of this great community.”

Vidalia Denim will use e3 sustainable cotton exclusively in its operations, the first such operation in the world. The company will source its cotton from across the U.S. farm belt from various farmers enrolled in the e3 sustainable cotton program. Additionally, iconic denim brand, Wrangler, is in discussion with Vidalia Denim about the development of fabrics for their 2019 product collection.

“This is a significant development for e3 and marks a watershed moment for our program as for the first time a textile mill will use our program as its exclusive source of cotton,” said Malin Westfall, U.S. Cotton business lead of FiberMax and Stoneville Brands. “By utilizing e3 cotton, Vidalia will offer its customers complete transparency of leading grower sustainability practices,” he added.

These sentiments were also echoed by Roian Atwood, director of Sustainability for Wrangler, an initial customer of Vidalia. “This mill is pushing the standards for sustainability denim fabric in North America. At Wrangler, we are excited about the opportunity to work with Dan and his team and the e3 cotton growers committed to sustainable agriculture practices to produce good-looking denim that utilizes innovative manufacturing methods.”

Vidalia Denim Mills will begin full commercial operations during the first quarter of 2019, following an immediate ramp up in its operations during the remainder of 2018.

“We are excited about this project,” said Dan Thompson, executive vice president of Operations, “especially the unique and innovative technology that we will be introducing to North America.”

Posted July 24, 2018

Source: Vidalia Denim

Unifi Unveils PROFIBER™, New Branding At 2018 Outdoor Retailer Summer Market

GREENSBORO, N.C. — July 24, 2018 — Unifi Inc., a global textile solutions provider and one of the world’s leading innovators in manufacturing synthetic and recycled performance fibers, announced the launch of the company’s new “True Innovation Starts in the Fiber” branding, which highlights Unifi’s commitment to the development of innovative and sustainable performance fibers backed by a flexible, global supply chain. Unifi is also introducing its new PROFIBER™ brand that provides options to integrate multiple performance Tru-technologies into polyester and nylon yarns that deliver increased fabric comfort, performance and functionality. Unifi unveiled its new branding and positioning while  showcasing its focus on performance apparel and activewear through innovative combinations of functional benefits at the 2018 Outdoor Retailer Summer Market (booth 1022-LL), which takes place July 23-26 in Denver, Colo.

“We are excited to show outdoor brands and retailers ways in which they can combine a wide range of Unifi Tru-technologies with our leading PROFIBER™ virgin and REPREVE® recycled yarns that offer multiple performance benefits,” said Richard Gerstein, executive vice president of global branded premium value-added products and chief marketing and innovation officer for Unifi. “Meaningful innovation happens when you can integrate garment design and functionality with unique combinations of technologies that are embedded in the fiber. Our goal is to help inspire those who design and develop new products to innovate at the fiber level to achieve differentiated performance, comfort and style.”

As part of the new branding, Unifi has repositioned its performance technologies to be benefit focused making it easier for customers to select the properties that are most important to their consumers. Unifi’s proprietary Tru-technologies offer a wide range of performance properties such as wicking, thermal comfort, full coverage, bounce, stretch, sun protection and water resistance. Examples of the new Tru-technologies and benefits featured in various fabric constructions at the 2018 Outdoor Retailer Summer Market include:

  • TruTemp365™ — High-tech fibers for fabric that performs, providing year-round comfort in warm or cool weather.
  • TruDry™ — Breathable, moisture-wicking fiber technology helps keep fabrics cool, dry and comfortable.
  • TruCover™ — Fibers with an increased surface area deliver flexible, lightweight stretch and coverage without show through.
  • TruFlexx™ — Fibers that allow fabrics to move freely and stretch without binding or sagging.
  • TruCool™ — Performance fibers create fabrics that feel cool to the touch.
  • TruTouch™ — Fibers with cotton-like softness provide a natural touch and feel.

“Consumers want reliable performance that lasts the life of the garment, and that’s why we strive to deliver options with our high-quality fiber and technology platforms,” said Jay Hertwig, group vice president of global brand sales. “By offering a wide range of products focused on benefits, we can help our customers create innovative fabrics that solve everyday problems and meet and exceed their consumers’ expectations.”

Unifi is also leading the way in sustainable performance with REPREVE, the global leader in branded recycled fiber. Through its proprietary U TRUST™ verification program, REPREVE is one of the most trusted and certified earth-friendly fibers in the world. High-quality, recycled yarns are made from 100% recycled materials, including post-consumer plastic bottles, pre-consumer waste or a hybrid blend of both. Products made with REPREVE also help conserve energy and natural resources.

The REPREVE #TurnItGreen National Mobile Tour is also on-site at the Outdoor Retailer Summer Market (booth 54143-UL), where attendees have the opportunity to experience firsthand how recycled bottles are transformed into performance fibers.  To date, Unifi has transformed more than 12 billion recycled plastic bottles into REPREVE products, and has a goal to recycle 30 billion bottles by 2022.

Posted July 24, 2018

Source: Unifi

Jim Briggs Joins Adele Knits

WINSTON-SALEM, N.C. — July 23, 2018 — Adele Knits Inc. Winston-Salem, N.C., has appointed Jim Briggs as national sales manager responsible for North American sales and business development. Briggs joins Adele Knits after spending more than 30 years in industrial fabrics, coated fabrics and various converted product roles.

Founded in 1970, Adele Knits is a manufacturer of high-quality circular-knit products.  Operating from its 200,000 square foot ISO 9001 registered facility based in North Carolina, Adele Knits is a provider of circular knits for industrial and automotive applications, as well as sports performance fabrics.

Posted July 24, 2018

Source: Adele Knits

America’s Oldest Tailor-Made Clothing Maker Calls For Tariffs

CLEVELAND, Tenn. — July 23, 2018 — Hardwick Clothes, on the eve of celebrating their 138th anniversary, calls for tariffs, especially on clothing imported from Mexico and Canada. Allan Jones, chairman of Jones Capitalcorp, LLC, rescued Hardwick from bankruptcy in 2014, pumping millions of his own money into the venture in an attempt to salvage the company, maintain employment for the company’s 300-plus employees, and keep America’s oldest tailor-made clothing manufacturer in business.

“When the Tariff of 1824 was instituted, the goal was admirable: protect woolen mills in America,” Jones said. He explained that a century later in 1930, Hardwick Woolen Mills in Cleveland, Tenn., was the largest clothing manufacturer and mill in the world. When the company leadership saw the decline of mills, Hardwick sold the milling business to Burlington Fabrics to concentrate on their tailored clothing.

Unfortunately, Jones said, “While fine woolen fabric mills in America have since ceased to exist, the tariffs have not. Today, manufacturers based on both of America’s borders — Canada and Mexico — pay no tariffs on imported fabrics (which come primarily from Europe), whereas American manufacturers pay a twenty-five percent tariff on the same goods, only to see Canadian and Mexican manufacturers ship their tailored clothing tariff-free to America.”

Though there is a rebate program through the Farm Bill, the construction of the rebate is based on historical purchases — not actual purchases — and goes disproportionately to two manufacturers that receive much more rebate than they have paid in tariffs.

“This isn’t a rebate,” Jones insisted. “It’s a subsidy that places other American clothing manufacturers at a distinct disadvantage.”

One of these disadvantaged is Hardwick, America’s oldest tailor-made clothing company that was founded on July 28, 1880. Jones explained, “The company has survived a mountain of obstacles during its 138-year history, including two major fires, two World Wars, the Great Depression, and even leisure suits! Today, the company is penalized by tariffs on raw materials necessary to manufacture clothing and an unfair, disproportionate rebate subsidizing the company’s competitors.”

In an effort to level the playing field for all, Jones is requesting that during NAFTA negotiations, a tariff of twenty-five percent be placed on all imported tailored clothing — menswear in particular — especially clothing that is imported from Canada and Mexico, and any rebate be based on actual, not historical, purchases. This will allow Hardwick to pay higher wages and allow the company to grow its market.

“After NAFTA, there was a giant sucking sound, with tailored clothing manufacturing moving to Canada and Mexico,” Jones said, “while Hardwick remained an American company. Now, we’re seeking a level playing field. The future of the tailored clothing industry in America depends on it.”

“Trump needs a substantial negotiating tool,” Jones concluded, “and we need to get out of the way and let Trump be Trump. He’ll manhandle these tariffs and bring about a level playing field for all American manufacturers.”

Posted July 23, 2018

Source: Hardwick Clothes

Proposed Acquisition Of LCY Chemical Corp. By KKR Consortium

TAIPEI, Taiwan — July 22, 2018 — LCY Chemical Corp. and global investment firm KKR today announced the signing of a share exchange agreement for a consortium led by KKR to acquire all of the issued and outstanding shares of LCY for TWD 56 ($1.83) per share in cash, adjusted to include a TWD 2.90 ($0.10) per share dividend (rounded to the nearest TWD 0.01) (ex-dividend offer price is TWD 53.10 per share). The transaction, which has been unanimously approved by the board of directors of LCY upon the recommendation of its Audit Committee comprising independent directors, represents a total market capitalization of approximately TWD 47.8 billion (USD 1.56 billion).

The offer price represents a premium of 17.28% to LCY’s closing price on July 20, 2018, the last trading day prior to the transaction announcement. It also represents a premium of 19.2%, 23.0% and 24.3% over the 30-day, 90-day and 180-day average closing prices, respectively.1

TH Hong, chairman of LCY, said: “The proposed transaction delivers meaningful and immediate value to our shareholders, while also providing greater access to capital, operational resources and the time horizon needed to execute a strategy to drive long-term, sustainable value creation. KKR is the ideal partner to help us build on our 50-year track record of producing high-quality chemical products for customers worldwide and take LCY to its next level of growth given KKR’s focus on responsible business and operational excellence. KKR’s decision to partner with us is a testament to the innovative and talented team we have built in Taiwan — and around the world — and we look forward to working with them to build an even stronger company.”

Paul Yang, member and Head of KKR Greater China, said, “LCY is a global leader in the specialty chemical industry and has earned its place as one of Taiwan’s leading global companies. We believe that KKR’s partnership approach will enable LCY to make the necessary investments in R&D and other growth initiatives to maintain the technological capabilities, capacity and product differentiation needed to further the Company’s leadership position going forward. This is an exciting opportunity to work alongside LCY’s exceptional management and dedicated employees to help the Company take full advantage of the opportunities that lie ahead.”

Founded in 1965, LCY is a producer of specialty chemicals with a concentration on thermoplastic elastomers and performance plastics used in infrastructure, health care, household, automotive, textile and electronic products, among other diverse applications. LCY will maintain its corporate headquarters in Taipei, its existing global distribution and sales networks and its production plants in Taiwan, mainland China and the United States.

KKR is a global investment firm with over 42 years of experience partnering with management teams and helping them to create value as a long-term, patient investor. Following completion of the transaction, KKR intends to work closely with LCY’s existing management team and employees to strengthen the Company’s business platform by exploring expansion opportunities in new and existing international markets as well as penetrating new verticals, with a goal to grow and support employment in Taiwan and overseas. KKR also looks to enhance the Company’s approach to environmental, social and governance management to responsibly and sustainably grow LCY’s corporate value.

Immediately following consummation of the share swap, KKR will hold a majority and controlling interest in LCY. The KKR consortium includes participation by the Company’s current employees and certain members of the Founding Family.

KKR makes its proposed investment from its Asian Fund III. The transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions and regulatory approvals. Upon the completion of the transaction, LCY will become a private company, and its shares will no longer be traded on the Taiwan Stock Exchange. KKR and its partners are committed to supporting LCY’s global expansion and will evaluate a range of options to support the Company’s strategy, including capital market activities in Taiwan.

Baker & McKenzie is acting as legal advisor to the Company. Simpson Thacher & Bartlett and Lee & Li are acting as legal advisors to KKR and the consortium. Goldman Sachs (Asia) L.L.C. is acting as financial advisor to KKR. Goldman Sachs Bank USA has agreed to underwrite and arrange debt financing to the consortium for the share exchange transaction, subject to certain customary conditions.

Posted July 23, 2018

Source: KKR

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