Business & Financial: Improved Bottom Lines

By Robert S. Reichard, Economics Editor

More good news on the profit and margins front. To be sure, significant demand gains still are a bit hard to come by. And import totals remain at or even slightly above year-ago levels. But despite these less than ebullient trends, textile mill bottom lines are still moving higher — a continuation of the increases that started nearly two years ago. Newly released government numbers provide the details. During the latest available three-month period (Q2 2014), mill after-tax profits jumped to near $750 million. That’s about a 50-percent improvement over the year-earlier reading. Profits per dollar of sales show equally upbeat gains, with domestic mills at last report making about 7 cents on every dollar of sales. Again, that’s well above the 5-cent figure reported only a year ago. Another widely monitored margin yardstick — profits per dollar of stockholders equity — is similarly encouraging, with the latest 17-cent-plus estimate again running well above the near 12 cent figure of 12 months earlier. What makes this last number especially impressive is the fact that the domestic mill return on equity is now actually above the some 15 cent estimated return for all U.S. manufacturing activity. Indeed, this could be the key reason why mill executives are continuing to invest more than a billion dollars per year for modernization and expansion. True, profit estimates for downstream apparel manufacturers are not quite as bullish. Nevertheless, the numbers in this sector, as in the case of textile mills, are still running above levels prevailing just a few years back when many domestic firms were hard put to just break even.

Behind The Improvement
A series of factors — most notably continuing cost containment — are behind this increasingly rosy profit and margin picture. For one, cotton fiber costs, as noted in a recent column, have been dropping significantly — leaving them at last count, better than 10 percent under levels prevailing just one year ago. And man-made fiber averages have barely moved over the same period. Add in the combination of steady-to-slightly-lower labor costs — thanks to the combination of relatively small pay hikes and continuing productivity gains — and it’s easy to see why the overall cost share of the average mill and apparel shipment dollar has actually been declining. Industry prices, meantime, also appear to be another industry profit contributor. They’ve held up well and in some cases, have actually inched up. For mill shipments, this can be best appreciated by looking at the accompanying chart. It’s pretty much the same when it comes to apparel quotes. Finally, two other pluses for bottom line performance also deserve mention. First, there’s today’s intensifying producer emphasis on more profitable niche products and less on highly competitive commodity lines. And last, but not least, there’s the role played by increasingly savvy supply-chain-management strategies. More and more companies are becoming increasingly active in this area. Indeed, one recent study finds that some 90 percent of today’s firms have supply chain management teams aimed at lowering operating costs, improving quality, and speeding up responses to customer demand changes.

More Gains Ahead
With all these positive factors expected to continue, the profit outlook for the next few years looks to remain equally encouraging. Indeed, IHS, one of the nation’s prestigious economic forecasting firms, is anticipating further increases well into the future. Its estimates, based on projections of dollar shipments less material and labor costs, suggest the following: Mills making basic textile products like fibers and fabrics should post better than a 20-percent earnings increase for 2014, with smaller 2.5-percent annual advances projected for 2015 through 2017. As for mills making more highly fabricated products like carpets and home furnishings, projections call for 3- to 5-percent gains for both 2014 and the following few years. And for apparel manufacturers, IHS forecasts suggest a rather impressive 35 percent profit jump this year, followed by around 5- to 15-percent increases over the 2015-17 period. Going out another three years to 2020, IHS sees small average annual gains of 2 to 3 percent for both basic and fabricated mill products, with apparel makers ending up with slightly higher 5-percent increases. If nothing else, these numbers would pretty much seem to confirm recent TW forecasts pointing to continued industry strengthening — not only over the current year, but also well into the foreseeable future.

October 2014

Harper Hygienics Begins Wipes Production Using Teknoweb’s Arvell Technology

CREMONA, Italy — October 14, 2014 — Harper Hygienics S.A., Warsaw, Poland has commenced production on a new range of wet wipes. The company selected Arvell converting technology from Cremona, Italy-based Teknoweb for the new production.

“After a very intensive and professional work together with our machine supplier Teknoweb, Italy, we can officially confirm the launch of a regular supply of products using Teknoweb’s Arvell,” said Robert Neymann, president, Harper Hygienics S.A.

“All work related to the development, testing and implementation of the new technology has been completed and we have commenced serial production of wet wipes using the Arvell substrate. From now on, all of our consumers will be able to discover the qualities of our innovative material themselves. Analysing the positive feedback from consumer tests, as well as the very positive reactions of our current and potential customers to Arvell, I am confident that the globally unique technology of manufacturing non-woven substrates developed in collaboration with Teknoweb, will bring a new and unique proposition to the market.

“I believe that the quantum leap which we have made with this project, in conjunction with the clear benefits on the cost side, will contribute to a rapid increase in the scale of Harper’s operations and soon will be clearly and positively reflected in the financial results of the company,” Neymann added.


Harper Hygiene manufactures a variety of nonwoven wet wipes products.

Posted October 14, 2014

Source: Teknoweb
 

Invista Announces New Lycra® Brand Campaign

WICHITA, Kan. — October 14, 2014 — INVISTA, owner of the LYCRA® fiber brand and one of the world’s largest integrated producers of fibers and polymers, launches its new consumer campaign today. This visually exciting initiative and associated co-branding and merchandising opportunities are now available to trade partners at a new business-to-business website—www.connect.lycra.com.
 
The new consumer campaign is the outcome of a two-year, multi-market research program. Its LYCRA MOVES YOU™ theme reinforces the emotional link millions of consumers have developed with the brand and its association with comfort and personal freedom across a wide range of garments.
 
A world-class campaign created and produced by the Sapient Nitro agency includes dynamic visuals shot by internationally acclaimed photographer Rankin, who likens the freedom and energy his models depict to the unique characteristics of Lycra fiber, as well as stylish TV and digital channel commercial from award-winning film director Philippe André.
 
Denise Sakuma, Lycra brand global director said: “We are excited to cause a Lycra brand movement at both trade and consumer levels globally. The Lycra Moves You campaign is the perfect message platform to communicate for the first time to consumers that Lycra is a brand of a fiber and THE magic component that gives wearers fit, comfort and the freedom to move. We are making the Lycra brand and fiber to be visible to consumers physically, emotionally and creatively.”
 
The added value and benefits of Lycra fiber will be signaled to consumers through new hang-tags and brand imagery. The iconic Lycra brand logo is supported by vibrant, versatile new imagery and designs in a range of stylish retail merchandising and advertising materials articulated through the campaign Lycra Moves You.
         
Bob Kirkwood executive vice president of Invista Apparel & Advanced Textiles, said, “The research showed that although awareness and respect for Lycra fibers is consistently high, consumers were sometimes confused about the multiple benefits it brings. The new brand architecture and positioning simplify and communicate the benefit propositions in ways that we believe will also increase levels of emotional engagement. “The new Lycra brand positioning and architecture should enable downstream partners from yarn spinners to retailers to better leverage its differentiating value. They can view all the elements of the new Lycra Moves You consumer campaign at www.connect.lycra.com where our new business-to-business website provides full information on the technology platforms and joint marketing opportunities that accompany it.”
 
From October onward, consumer communications will take the form of a collection of TV and online commercials, a distinctive new print campaign, a major digital and social platform, as well as new merchandising initiatives at point of sale. The campaign will roll-out progressively in the months ahead to enable trade partners in each region to take full advantage through co-branding initiatives, hang-tags, and joint merchandising programs.

Posted October 14, 2014

Source: Invista
 

TencCate Acquires Smart Body Armor® Technology From Newport Sensors

NEWARK, Ohio — October 13, 2014 — TenCate Advanced Armor USA has acquired from Newport Sensors, Inc., an industry leader in sensor technology innovation, the groundbreaking sensor technology that provides body armor users the ability to inspect, in real-time, the ballistic integrity of hard body armor inserts. The TenCate Smart Body Armor® technology, a network of sensors integrated onto the surface of the hard body armor insert, has been validated through extensive testing conducted in cooperation with the U.S. Army.

The testing determined that the TenCate Smart Body Armor technology is not only fast and convenient to use, it is also more effective than all other methods used to detect damage to hard body armor inserts. Furthermore, TenCate Smart Body Armor was found to be durable in the most extreme environments. The quick and reliable TenCate Smart Body Armor provides military and law enforcement personnel an easy to use, anywhere anytime ability to inspect their body armor, which enhances their safety and survivability.

Hard Body Armor Insert Inspection
Very high levels of personnel protection can be achieved utilizing hard body armor inserts made with various advanced materials. While these advanced materials are very effective at stopping ballistic threats, they can also be damaged while in use, especially in the typically very harsh combat and law enforcement environments.

The consequential damage can result in seriously degraded ballistic protection. Such damage can be very difficult to detect requiring the user to remove his or her personal protection from use and return the hard armor insert to a testing facility for non-destructive testing such as x-ray, to validate the hard body armor insert is still approved for use. Such testing is typically not readily available, expensive, time consuming and not as reliable as TenCate Smart Body Armor® inspection results. Utilizing the newly acquired TenCate Smart Body Armor®, a soldier or law enforcement officer will be able to inspect their body armor routinely especially when they suspect it may have been damaged and obtain results instantaneously.

Lifesaving Smart Wearable Technology
Mark Bajko, Vice President of TenCate Advanced Armor USA states: “The growing demand by military and global law enforcement for lightweight systems that provide protection against the full spectrum of rifle threats requires continuous innovation. TenCate is committed to staying in the market leadership position by utilizing advanced materials, smart wearable sensors, and proprietary manufacturing processes to produce our full range of tactical hard body armor inserts. TenCate is committed to innovating and incorporating high performance protection technologies that insure our products provide the best protection at the best value. Our innovative composite armor solutions continue to grow as does our smart protection technology product portfolio such as our underbody vehicle IED protection system, TenCate ABDS™ active blast countermeasure system.”

Posted October 14, 2014

Source: TenCate Advanced Armor USA

Screen Printing: Changing The Rules Of The Game

For decades, traditional plastisol inks containing polyvinyl chloride (PVC) have been the inks of choice for screen printing on pre-cut textile applications. The major advantages of plastisol inks are their ease-of-use for textile printers and high productivity rates, combined with good color opacity and attractive pricing.

Previous environmental concerns about the presence of heavy metals and phthalates in these inks have been overcome through the substitution with other pigments and non-toxic plasticisers. What remains is the growing concern about PVC, the base resin of all conventional plastisol inks, especially when in direct contact with infants. Pressure from textile brand-owners, retailers and non-governmental organizations to remove PVC from textile products has, therefore, been increasing.

In most cases, water-based inks have been the preferred option when choosing environmental-friendly inks. The major technical benefit of water-based inks is the property of penetrating the fabric and creating a soft touch to the finished product. The advent of high-solid acrylic water- and polyurethane-based systems has led to improvements in printing efficiency. However, both these ink types also have their limitations. Water-based inks tend to dry rapidly on the screens, frequent manual intervention is necessary, and consequently, the productivity rates of these systems are significantly lower. Another limitation is that their performance is strongly influenced by the printing environment, in particular, temperature and humidity levels.
With the rapid increase in the use of synthetic fabrics, particularly for sportswear, but also in fashion clothing, silicon-based inks have found a market, thanks to their excellent elasticity and durability. From an industrial point of view however, silicon-based inks are not an ideal choice as they are bi-component systems that need to be used within a limited time span (pot life) after mixing and require intermediate curing between colour applications. Productivity rates are therefore low and, combined with their high cost, their overall cost-effectiveness is poor.
 

Plastisols without PVC?
Although the common belief is that plastisol inks are by definition based on PVC resin, this is conceptually not quite correct. Plastisols are, in fact, defined as a dispersion of a polymer resin in a plasticiser emulsion, forming a liquid or paste that gels and fuses when heated. The key parameters of textile plastisol inks are: 100-percent solid systems without either solvents or water, and they form a solid coating after curing for 2-3 minutes at temperatures in the 150 to 170°C range.

This has made the invention of PVC-free plastisol inks that combine the performance benefits of conventional plastisols with an ecologically-friendly composition the ‘Holy Grail’ for textile ink manufacturers. Resin manufacturers and ink formulators have been working on this challenge for a number of years, and significant progress has been made, typically based on acrylic resin systems.

However, the industrial products that have been introduced to the market have demonstrated significant shortcomings that have resulted in a low market penetration so far. These defects include a lack of stability and reduced shelf life, as well as the inability to formulate white inks that dry promptly after exposure to rapid infrared (IR) flash curing.

Achieving The Breakthrough
Following a multi-year development programme at Kiian Specialty Inks, it has now finally been possible to formulate and commercially manufacture a PVC-free plastisol ink that has overcome the limits of earlier iterations. FREE inks feature a combination of high quality ingredients, a perfectly balanced formulation and discrete manufacturing process, enabling Kiian Specialty Inks to introduce a complete range of inks which, in terms of quality and process performance, are a true match to the best conventional plastisols on the market.

White inks in this range are engineered for IR flash drying, making it possible to print on dark fabrics. All inks show good viscosity stability on the screen, typically better than most conventional plastisols. This stability allows the use of fine mesh sizes, resulting in a reduction of initial production run losses by getting the first print right. The standard colors offer good wet-on-wet printing characteristics with up to eight printed layers possible without intermediate drying.

The shelf life of these inks is similar to traditional plastisols, and as the inks are mono-component, they are easy to handle and without pot life limitations. Being plastisols, they remain perfectly plastic after hours or days of storage on screen and printers can therefore resume printing without loss of time or materials due to screen cleaning. The inks are wholly compatible with commonly used screen emulsions as well as with screen cleaning agents. With screen printing and furnace curing parameters remaining basically the same, the switch from traditional plastisols to the FREE inks is really hassle free.

The durability of this new generation of plastisols conforms to the most stringent requirements in the industry today, withstanding more than five washing cycles at 60°C with intermediate drying. With the right combination of printed layers of ink, it is possible to achieve very good elasticity to avoid cracking and damage on even highly stretchable fabrics. In extreme cases like professional clothing, the use of specific additives can help to overcome any durability concerns.

These inks are universal in the sense that they can be employed on virtually all types of fabric used today in textile printing, from organic fibers to mixed fabrics, and fully synthetic fabrics such as polyester and Lycra®. Thanks to the use of a specifically formulated anti-bleeding ink, the risk of colorant sublimation through the ink layer is prohibited. Moreover, their performance is unaffected by different climatic environments, whether hot or cold, dry or humid.

The final surface appearance of these PVC-free inks is similar to conventional plastisol inks. There are however some advantages due to the inherent characteristics of the resin system used. The feel tends to be softer, the tackiness is lower and the colours are less glossy than conventional plastisol inks.

Benefits Beyond Print
The ecological and health impact of all chemicals used in the textile industry are a major concern to stakeholders in the industry, and printing inks are no exception. PVC-free plastisol inks fully respond to the demand for green products. The chemical compounds deployed in the formulations present no health or environmental concerns, and as the system is based on 100 percent solids there are no volatile organic compounds generated. The high performance and extended screen-life possible mean that the amount of ink waste for disposal is minimised. The quantity of water and chemicals required for cleaning the screens is also reduced.

FREE inks conform to the major international textile norms like Oeko-Tex Standard 100. Their use on organic fibers is certified by Global Organic Textile Standard. The inks also pass specifications from leading industry brand owners like Nike (RSL) and Inditex Group (Clear to Wear).

In conclusion, the overall ecological footprint in terms of health concerns related to the composition, waste reduction and reduced energy consumption, is extremely positive. These new PVC-free plastisol inks demonstrate that combining quality and ecology is possible with multiple benefits for textile printers, brand owners, retailers, and consumers.
 

Editor’s Note: Dr Daniele Uboldi, is the research & development manager, and Flavio Ronchini is the technical marketing manager, Italy-based Kiian Specialty Inks .

October 13, 2014
 

India, The Next Big Influence In Global Textiles

PCI Xylenes & Polyesters, together with its India-based joint venture partner Wazir Advisors, recently completed an extensive research study on India.
 
Officially, in terms of both volume and value, India is now the second largest textile manufacturer in the world behind China. Therefore, India now deserves serious attention from other leading apparel based textile nations operating out of East Asia, as well as in the advanced performance textile arenas of Japan, Europe and North America.
 
With other parts of the world struggling to achieve sustained growth, the study concludes that now is the time to set up textile operations in India. Any company coming in early will take advantage of a wide range of incentives and also be in a stronger position lying behind relatively high import duties for fabrics. It can readily capture significant growth in domestic textile demand, which is being driven by the extraordinary demographic dividend that could accelerate India’s standing as a potential global powerhouse in man-made textiles. 
 
The Indian textile and apparel industry was estimated at $108 billion in 2013. It has grown at a compound annual growth rate (CAGR) of 13 percent from 2008-2013 and is projected to continue to grow at a CAGR of 12 percent and attain a size of $440 billion by 2025.  With an estimated domestic consumption of approximately $68 billion and an export value of roughly $40 billion, it contributes to about 6 percent of the $1.8 trillion Indian economy and nearly 13 percent of the country’s total exports basket.  It is also the second largest provider of employment after agriculture, providing jobs and an income for around 45 million people directly and indirectly.
 
Chart 4: Indian Textile and Apparel Market Size (In $ billion)


Click chart to view larger

 
The domestic market for textiles, apparel and technical textiles — the new generation of performance textiles — is estimated at approximately $68 billion, out of which apparel retail, technical textiles and home textiles contribute $50 billion,  $13 billion and $5 billion respectively. The total market has grown at a yearly growth rate of 13 percent over the past five years. The overall apparel market is expected to grow at a CAGR of 12 percent and reach a size of $200 billion by 2025. With growing numbers of working women demonstrating their economic independence, it is expected that by 2025 the womenswear segment will gain a majority share of 45 percent.
 
Indian consumers’ affinity towards brands and organised retailing is increasing, and this is fuelling consumption growth for all commercial products, including textiles and apparel. Organized retailing in India currently stands at only 8 percent of the overall retail market of $550 billion. Within this, apparel is the single largest category with a share of 35 percent. The vast population base and growing economy has attracted global retailers and brands into the Indian market, either on their own, or in partnership with a local player. Many new textile investments are already progressing, and there is room for a great deal more besides.
 
Per capita consumption in the urban areas always is higher than that in the rural areas, and India is witnessing fast growth and urbanization. By 2030, it is estimated that 40 percent of India’s population will live in urban areas, and India, by then, will have 68 cities with population of more than 1 million. This migration away from rural areas into cities will clearly accelerate consumption growth, including of course textile and apparel.
 
 
Chart 4-1-0: Economic shift of India’s population 2005-2025


Click chart to view larger
 
Despite the complexities of the many political, economic, social and commercial pressures raised and discussed within the study, there is nevertheless marked progress being made, especially within India’s polyester sector. There certainly is a renewed national commitment to increase textile production under the guidance of India’s new political regime and with strengthening industrial support from a very committed polyester fiber sector.
 
The study identifies a significant window of opportunity over the next 10 to 15 years for Indian companies especially to take a very serious leap forwards in the man-made domestic and export textile and apparel segments. This builds on the assumption that China will start to turn in on itself and fill local demand rather continuing to focus textile and apparel exports.
 
India has a very powerful and impressive cotton yarn and fabric business sector that now will be looking at what it can achieve in the non-cotton and cotton/manmade blends and 100-percent man-made areas. The sector appears to have the confidence and capability to shift emphasis towards India’s growing man-made textile industry. The study questions whether it can do this alone or whether a whole series of new international Foreign Direct Investment led joint ventures are required to reshape India’s textile industry.  India’s man-made fabric industry requires significant strengthening in terms of scale and integration, with fresh investment and a more sophisticated and focussed approach required at the textile level to truly compete on the world stage.
 
In this regard, India is well behind China, although future potential looks extremely bright with tremendous growth prospects seen for the right blend of textile companies. This trend certainly applies in the key woven sector, but also increasingly evident in knitted and nonwoven applications, where growth rates are expected to be very significant over the next 10 years.
 
The study sets out to explain that far from being a mature market, fundamental consumption growth in polyester based textiles is about to accelerate not only in India but also in China and Southeast Asia, followed by steady growth in emerging markets such as Africa and South America; Africa becoming a major production centre for apparel, fed, it is assumed, by fabrics from China and potentially India if investments allow.
 
Worldwide, man-made textiles, which make up around 70% of total textile output, are growing at more than 5-percent-per-annum.  However, the total global textile system including all natural and manmade products — totalling around 90 million metric tons of equivalent fibrers — is only growing at an average rate of just below 4 percent demonstrating the slow growth, in comparison, to the cotton/viscose natural fibres sectors. This optimistic scenario for man-made textiles is occurring despite the economic uncertainty that pervades most regions, and largely is because of rapid technological developments seen within the polyester chain, especially within the performance apparel and home textile segments, but also is because of a strong surge of consumption within the fast moving nonwovens area. All of this is examined within the study.
 
Within the global textile system, the study demonstrates that polyester is now by far the dominant textile constituent in most end use sectors requiring manmades, including predominantly, apparel, but also home textiles and technical textiles. Polyester is claiming more than 75 percent of the estimated 60 million metric tons of fibers consumed in man-made textiles as of 2013. This share is set to increase over time.
 

 

Editor’s note: This article was provided by PCI Xylenes & Polyesters, Guilford, United Kingdom

October 13, 2014
 

T.E.A.M. Inc. Expands Capacity And Capabilities

WOONSOCKET, R.I. — October 9, 2014 — T.E.A.M., Inc., an innovative weaver of 2-D and 3-D fabrics and net shape preforms primarily for composites applications, announced today that it has broken ground on an expansion to its current manufacturing facility in Woonsocket, RI.  “This expansion will effectively double the size of our Woonsocket facility allowing us to better meet the growing needs of current programs while also giving us the added space to pursue additional opportunities,” said Steve Clarke, T.E.A.M.’s President and co-founder.
 
The anticipated completion of the addition is planned for March 2015.  “We’re in the process of evaluating and acquiring new equipment, which will increase our 2-D and 3-D weaving capacity and expand our product capabilities,” said Jerry Moore T.E.A.M.’s co-founder and Vice President. 
 
Earlier this year, T.E.A.M. also expanded the manufacturing capabilities of its West Coast Division in Vacaville, CA.  “We relocated the company to a larger manufacturing space which allowed us to add additional equipment and improve upon current capabilities,” added Mr. Moore.  T.E.A.M.’s Vacaville operation continues to focus on high quality 2-D woven roll goods.  “The relocation enables us to expand our capacity and better support our West Coast customers,” offered Mr. Clarke.
 
 Posted October 10, 2014

Source: T.E.A.M.
 
 

 

The Rupp Report: ITMA 2015 On Track?

As everybody probably knows, the most important textile machinery exhibition in the world, ITMA — commonly referred to as ITMA Europe to differentiate it from the show in held in Asia — will be held from November 12-19, 2015, at Fiera Milano Rho in Milan, Italy. For the first time in its history, ITMA will take place in November, because from May 1-October 31, 2015, the Expo Milano 2015 will take place at the same newly built fairground. By the way, the last world expo in Italy took place in 1906. One must say that the Italians are very happy and proud that after such a long time — the last ITMA in Italy took place in 1995 — the show is returning to the land of fashion (sorry French readers).
 
Almost Sold Out
In the last press release from July 2014, ITMA organizers Singapore-based MP Expositions Pte. Ltd. claim that more than 95 percent of all floor space already is booked: “Global textile and garment technology suppliers have snapped up space at next year’s ITMA exhibition in Milan. ITMA 2015, the world’s most established textile and garment machinery exhibition, has attracted over 1,300 applicants from 43 countries by the application deadline of 4 July. As a result, over 95 percent of the 200,000 square meters of space has been taken up.”
 
Since this press release was issued, possibly the remaining 5 percent of floor space also has been booked. This means ITMA 2015 is sold out, in spite of rumors over recent years that an ITMA in Europe doesn’t make sense anymore.
 
Novelty Show
Among textile professionals, it is well known that an ITMA in Europe still plays a very important role in the global textile machinery industry. Many exhibitors take the chance in Europe to show their true novelties. And interest in IMTA from the European Association of Textile Machinery Manufacturers (CEMATEX) countries is very high. ITMA organizers report that several CEMATEX countries have increased their space booked for the 2015 show compared with the 2011 event, including: Italy, up 30 percent; the Netherlands, up 20 percent; France, up 13 percent; and Germany, up 4 percent. These increases definitely highlight the strength and positive market feeling for European textile machinery manufacturers.
 
The top five countries in terms of space booked are Italy with 34 percent, Germany with 25 percent, Turkey with 7 percent, Switzerland with 7 percent and India with 6 percent. The top five countries in terms of number of applicants are Italy with 31 percent, Germany with 20 percent, India with 13 percent, China with 10 percent and Turkey with 9 percent.
 
It is interesting to note that two Asian textile manufacturing giants also are sending a large number of exhibitors to ITMA 2015. As one can see, this is an astonishing breakdown of countries and applicants. Turkey was known until now as a textile manufacturing country, but not as a machinery producer. Over the past decade, this has changed a lot. Today, not only are Turkish textile products playing in the top league, but machinery production also is growing.
 
The top five sectors participating at ITMA are finishing with 24 percent, spinning with 16 percent, weaving with 14 percent, knitting with 14 percent and printing with 10 percent. However, since ITMA 1999, emphasis has grown in the nonwovens, fibers and yarns, and garment making chapters. Technical textile solutions, which have formed an integral part of the offerings by technology providers at ITMA, will be further highlighted with displays of new applications.
 
“Mafia free” Certificates
Fifteen months before the opening of ITMA at the new fairground, some new problems have arisen.
 
Organized crime is overshadowing the construction of the buildings for the world expo. To avoid any closeness, corruption or even infiltration with the organized crime, the exhibition company developed a plan in a typically Italian way: With the construction companies involved, it arranged a legality agreement and provided “Mafia free” certificates. Prosecutors from Milan had previously and repeatedly pointed out warnings about the high risk of organized crime involvement in the fairground’s construction. The construction sites were inspected, and not a single irregularity was found — of course. All construction companies involved have been declared as certified mafia free. For fear that the construction work would not be completed on time, and given the negative headlines about a backlog of construction work already in the news, the government now was forced “to facilitate and simplify” the methods of control against organized crime.
 
Corruption Roundup
At the beginning of May 2014, one year before the opening of the Expo Milano 2015, a corruption ring between an ex-Berlusconi senator and a former socialist was discovered. A total of seven managers and politicians were arrested for corruption associated with Expo Milano 2015. The people arrested were accused of forming a mafia like connection for personal exploitation and manipulation of the multi-billion-dollar procurement. On top of that, former Minister Scajola was arrested for aiding the escape of a mafia-politician. Other people brought into custody included the EXPO 2015 manager responsible for commissioning, as well as the former head of the of the Lombardy region, who is responsible for all infrastructure projects.
 
Hope Of Deliverance
But let’s get back to ITMA 2015. In the official message from July 2014, show organizers said: “With more than 15 months to go before the exhibition opens in Milan, the organizing team is confident that the ITMA 2015 exhibition will see more participation from the industry. It is also expected to be a more exciting showcase as the world moves towards sustainability, spawning cutting-edge research and development, technological innovations and a host of enhanced and new machinery, and other product offerings.” Let’s hope the best for the exhibitors, many of them have already spent a lot of money for this event.
 
October 7, 2014

 

Polytech Fibers To Create 114 Jobs In Murray County

ATLANTA — October 6, 2014 — Gov. Nathan Deal announced today that PolyTech Fibers LLC, a Georgia-based polyester fiber manufacturer, will create 114 jobs and invest more than $12 million into its first manufacturing facility over the next three years in Murray County. 

“PolyTech Fibers is an excellent addition to our state’s manufacturing sector, an industry that employs more than 360,000 Georgians,” said Deal. “Our No. 1 business climate, which includes a top-ranked technical workforce and solid logistics system, makes Georgia an ideal location for this company. I am confident that our state will continue to foster growth in manufacturing firms across Georgia.”   

The new 80,000-square-foot facility will be located at 2017 Highway 411 North in Chatsworth. With this new facility, the company plans to manufacture and distribute several kinds of regenerated/recycled polyester staple fibers for the automotive industry, as well as the filter sector, nonwoven sector and commercial/residential and high-end furnishing fillers. The jobs created will be in the areas of textile manufacturing and extrusion. Hiring will be done through TiDra staffing.

“We are excited to launch our first plant in Murray County,” said PolyTech Fibers President J.Y. Choi. “Our team is made of experienced engineers and businessmen with years of production and sales expertise. For several years, we have been planning to produce top-quality polyester fibers at competitive prices. PolyTech Fibers is an employee-owned company and we have designed our operation and production to be efficient, cost effective and most importantly, safe. Within three years, our annual production capacity will reach 80 million pounds.”

PolyTech Fibers LLC, founded January 2014, supplies polyester technical fibers to the manufacturing industry. With this new facility, the company will meet the demands brought about by a growing population, a booming automotive industry and innovative product applications.

Yoonie Kim, senior project manager at the Georgia Department of Economic Development (GDEcD), managed this project on behalf of the state of Georgia, along with Brittany Pittman, sole commissioner of Murray County.

“We are delighted to welcome PolyTech Fibers to our community and we are thankful that they have chosen Murray County to invest $12 million and create 114 new jobs,” said Murray County Sole Commissioner Brittany Pittman. “This project will be a tremendous boost to our local economy. This announcement is a result of the continued efforts to create a competitive and business-friendly climate, which makes us more optimistic about the future. When projects like these take place, those in our community are afforded the opportunity to get back to work. We look forward to our ongoing partnership with PolyTech Fibers.”

“Projects like this highlight the vitality of our advanced manufacturing sector,” said GDEcD Commissioner Chris Carr. “We anticipate that the establishment of PolyTech Fibers new facility will attract additional manufacturers, both domestic and international, and will further strengthen this growing industry, one which consists of more than 9,000 facilities.”

Posted October 7, 2014

Source: Georgia Office of the Governor
 

Interface Announces Expansion Of Credit Facility, Planned Bond Redemption, Share Repurchase Program And Preliminary Third Quarter Results

ATLANTA — October 7, 2014 — Interface, Inc. a worldwide carpet tile company and global leader in sustainability, today announced the consummation of an amendment of its existing syndicated facility agreement, effective October 3, 2014.  The amendment expands the aggregate borrowing availability for revolving loans under the credit facility from $200 million to $250 million, and provides new borrowing availability for a $200 million Term Loan A which may be used to repurchase or redeem, before December 31, 2014, the Company’s existing 7.625% Senior Notes due 2018 (the “Notes”).  The amendment also extends the maturity of the facility until October 3, 2019.  All other terms of the facility, including covenants, interest rates and fees, remain substantially unchanged from the existing facility agreement.

Planned Bond Redemption
The Company also announced its intention to redeem the currently outstanding $247.5 million aggregate principal amount of the Notes.  While the Company has not yet commenced the redemption, it expects to do so shortly and complete the redemption before the end of 2014.  The planned redemption is expected to require $266 million to $268 million, depending on the date of redemption, and to be funded through a combination of Term Loan A and revolving borrowings under the expanded credit facility, and cash on hand. It is estimated that the redemption would result in $12 million to $13 million in annualized interest savings, based on current interest rates.

Share Repurchase Plan
In furtherance of its capital allocation strategy, the Company also announced that its Board of Directors has authorized a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year.  It is anticipated that the share repurchase program will be funded through the Company’s cash on hand.  Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program does not require the Company to repurchase any specific number or amount of shares and may be amended, suspended or discontinued at any time in the Company’s discretion and without notice.

Preliminary Third Quarter Results
The Company also announced preliminary results for the third quarter ended September 28, 2014.  Based on preliminary data, the Company expects third quarter revenue to be in the range of $250 million to $255 million, compared with $255 million in the third quarter last year.  In addition, the previously announced pre-tax restructuring charge in the third quarter of 2014 has been increased to an aggregate amount of $12.5 million.  The charge is now comprised of approximately $9.5 million of cash expenditures, primarily for severance expenses, and approximately $3.0 million of non-cash charges for the write-down of the carrying value of impaired assets.  This restructuring plan is anticipated to be substantially completed by the end of 2014, and is expected to yield annual cost savings of approximately $14 million beginning in fiscal year 2015.  Excluding the restructuring and asset impairment charge, third quarter net income is expected to be between $8 million and $9 million, or $0.12 to $0.14 per diluted share.  In the third quarter last year, net income was $15.0 million, or $0.23 per diluted share.  Including the restructuring and asset impairment charge, the third quarter of 2014 bottom line result is expected to be between a net loss of $0.7 million and net income of $0.3 million, or $(0.01) to $0.01 per diluted share.  Orders received during the third quarter of 2014 were $262 million, compared with $255 million in the third quarter last year, and backlog at the end of the third quarter was up $33 million (or 33%) compared with the beginning of the year.

“We’re pleased with the amendment to our syndicated credit agreement, which gives us the opportunity to refinance our existing debt at a substantially lower interest rate,” said Daniel T. Hendrix, Chairman and Chief Executive Officer of the Company.  “These arrangements also will allow us to improve our capital structure by repurchasing shares of our common stock and thereby enhancing our earnings per share.”

Mr. Hendrix continued, “Unfortunately, our preliminary results in the third quarter have not shaped up to our expectations, starting with lighter than expected revenues primarily due to customer deferrals of order delivery dates, disruptions in yarn supply and lower order intake levels at the beginning of the quarter.  These factors brought about lower manufacturing throughput and increased margin pressure, prompting us to look for deeper cost cutting as part of our restructuring efforts and resulting in a charge that is larger than our previously announced estimate.  Most of the restructuring activities are within the SG&A line item, and have a payback period of less than a year, so we are currently targeting 2015 SG&A expenses to be in the neighborhood of $250 million.  Our restructuring and refinancing plans, along with our healthy backlog, should put us in a much improved operating and capital structure going forward.”

Third Quarter Conference Call
Interface intends to release its definitive third quarter 2014 results on Wednesday, October 22, 2014, after the close of the market.  Interface will host a conference call the next day, Thursday, October 23, 2014, that will be simultaneously broadcast live over the Internet.  Detailed information regarding the third quarter conference call will be announced by the Company at a later date.

Posted October 7, 2014

Source: Interface
 

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