Effective March 1, or as contracts allow, Switzerland-based Huntsman Textile Effects will raise
prices of a range of products by up to 15 percent. The company cited continued labor, raw material,
transportation and utility costs as reasons for the increase.
February 19, 2008
Last week, we asked for more good news from the industry.
Successful Year For Dornier
The year 2007 was again successful for Lindauer Dornier GmbH, the well-known Germany-based
air-jet and rapier weaving and finishing machines as well as special machinery manufacturer. In
2007, Lindauer Dornier increased its turnover to 221 million euros (US$322 million), compared to
212 million euros (US$309 million) in 2006. Dipl. Ing. (FH) Peter Dornier, shareholder of Dornier
Holding and CEO of Lindauer Dornier GmbH, expects a positive company result at about the same level
as for the previous year.
ITMA 07 And K07 Perfect Platforms
Dornier reports that “the leading international trade fairs ‘ITMA’ in Munich (textile
machinery) and ‘K07’ in Düsseldorf (plastics machines) served as perfect platforms to demonstrate
the high engineering level of Dornier machines and production plants to customers and other
interested persons.”
The production capacity of the Special Machinery Division is already covered by firm orders
extending into the year 2009, whereas the Weaving Machine Division expects the year 2008 to end
with a similar output as in 2007. Considerable investments, financed by the company’s own
resources, are planned for 2008 and involve new buildings and new machinery at the three German
production facilities in Lindau, Esseratsweiler and Pfronten. Today, 1,240 people are working in
those facilities.
New Business Unit Organization
In order to effectively meet the challenges and changes imposed by the increasingly global
market, the areas of responsibility within the management have been reorganized:
CEO, Dipl. Ing. (FH) Peter D. Dornier is also a shareholder of Lindauer Dornier GmbH. The
responsible people for the new business unit organization are: Dipl. Ing. (FH) Michael Ebeling for
the Weaving Machinery Division, Dr. Ing. Andreas Rutz for the Special Machinery Division, and Dipl.
Oec. Hans-Jürgen Schmidt for the commercial sector as well as the subsidiaries in the United
States, China, India and Turkey.
New Subsidiary In Turkey
The new subsidiary Dornier Makina Ltd. Sti., established in Istanbul, started operation on
Jan. 1, 2008, and serves the important Turkish weaving machinery market with sales, spare parts and
customer service.
With this package of measures, and thanks to its solid capital base and 100-percent
family-owned shareholder structure, Lindauer Dornier said that it is well-prepared for the upcoming
tasks in the future.
Send news to:
jrupp@textileworld.com
February 12, 2008
Omniflex LLC, a Greenfield, Mass.-based manufacturer of flexible films and composites, has added
Natural Elements™ odor- and infection-control technology to its Transport® line of waterproof,
breathable films for bedding applications.
The combination enables a single film-to-fabric lamination to provide all of the benefits of
each technology to such products as the top fabric layers of mattresses for consumer as well as
institutional markets. The single lamination provides the advantage of reduced weight and mass in
the finished textile composite.
When specified, fire resistance properties also can be incorporated into the Transport film,
which is made from copolyester, ether-amide and polyurethane polymers, and can be laminated to
fabrics using any available commercial lamination technique for two- to three-layer fabrics. The
copolyester versions of the film are recyclable.
The patent-pending Natural Elements technology — developed by joint-venture partner Etcetera
LLC, Northampton, Mass., and available exclusively on Omniflex products — uses various
antimicrobial additives including silver, copper, blends of each or proprietary non-metallic
additives according to the requirements of the targeted application. The formulation of the film,
available in thicknesses ranging from 0.2 to 2.0 mils, can be customized to provide a range of
activation and duration rates within the same layer.
February 12, 2008
If nothing else, buyer confidence has taken a hit. Nevertheless,
Textile World
continues to remain cautiously optimistic that a full-blown business correction can be
avoided. The Fed, for example, has already taken steps to brake any slide by continuing to lower
interest rates. Washington lawmakers, fretting about the impact of a business slowdown on the
upcoming November elections, also are taking action, in the form of new fiscal simulae, to
jump-start our shaky economy. That’s not to say, of course, that these current problems won’t
result in somewhat lower-than-hoped-for first- and second-quarter textile shipments. But despite
this,
TW
still sees only a modest overall decline in mill activity for the year as a whole – something
only in the 4-5 percent range, and actually a bit less than the slippage noted over the past year.
Also on a reassuring note: While overall retail clothing sales slipped during the latest reported
month, December, they still managed to stay some 2-percent ahead of year-earlier levels.
Implication: Big-ticket consumer items – rather than apparel – are bearing the brunt of the current
consumer slowdown.
Changing Import Trends
Still another potentially positive sign: decelerating textile and apparel import gains.
Indeed, the latest monthly government report shows incoming totals on a square-meter-equivalents
basis actually running fractionally under year-earlier levels. If nothing else, it represents a
refreshing change from the steady tattoo of increases recorded over the past few years. To be sure,
one month doesn’t make a trend. And
TW
certainly does not expect negative numbers to become the norm. On the other hand, it does
seem to suggest that 2008 incoming textile and apparel shipments may not turn out to be all that
much above last year’s total. Part of this import deceleration reflects the fact that overseas
producers have already captured the lion’s share of these industries’ vulnerable commodity markets
– making further import penetration considerably more difficult. Another part of the import
slowdown can be attributed to the growing success of domestic mills and manufacturers in
establishing niche markets that are a lot less sensitive to cutthroat overseas competition.
Finally, today’s somewhat smaller import gains may also be a reflection of an improving
international exchange rate situation – one where a generally weaker dollar is making it somewhat
more expensive for Americans to buy overseas textile and apparel items. Indeed, there is already
some evidence of this kind of price effect – with Uncle Sam’s import price index for basic textile
products now running some 4 percent above year-ago levels.
A Closer Look At Exchange Rates
The fact that currency rate swings have tended to show significant country-by-country
differences can’t be ignored either. Indeed, in many cases, such changes are forcing major shifts
in global procurement strategies. One case in point: India, whose currency – the rupee – has jumped
11 percent vis-à-vis the dollar over the past year. This rupee runup, by driving up the cost of
Indian apparel, has been forcing US buyers to shift procurement over to neighboring countries like
Pakistan, Bangladesh and Sri Lanka – nations whose currencies are now a lot cheaper.
One JCPenney buyer perhaps best sums it all up: “If we don’t get the right price in India,
we will move elsewhere.” Nor is India the only glaring example of sizable exchange rate swings –
shifts that are making for significant changes in buying patterns. Thus, the better-than 10-percent
and 7-percent appreciations of the euro and the yuan, respectively, over the past year are having
some impact on trade flows from these countries as well.
Perhaps the most important change may now be occurring in China – the United States’ major
source of textile and apparel imports. Note, for example, that Beijing’s currency jumped a
surprisingly large 2.3 percent during the final two months of 2007. Add that onto earlier 2007
gains, and the yuan’s value has advanced some 7 percent in just one year. Moreover, go back to July
2005, when the yuan was first unpegged from the dollar, and the yuan is up a sizeable 13 percent.
All this may already be having some impact on imports from that nation. Incoming Chinese textile
and apparel shipment gains are now running well below the double-digit levels of the previous few
years.
Germany-based Protechna Herbst GmbH & Co. KG has selected Karl Mayer North America as the new
sales agency for its weaving and warp preparation equipment. Greensboro, N.C.-based Karl Mayer has
successfully represented Protechna’s knitting products for some time.
Karl Mayer will handle sales, service and spare parts sales for Protechna’s Laserstop,
Procam, Warpstop, Camscan and Tensoscan knitting, weaving and yarn preparation equipment. Scott
Hartzell will handle sales for knitting related equipment, while Ken Overly will handle sales of
weaving and yarn preparation equipment.
February 12, 2008
Cleveland-based Lubrizol Advanced Materials Inc. — a subsidiary of The Lubrizol Corp, Wickliffe,
Ohio — has completed the installation of a new production line at its Avon Lake, Ohio,
manufacturing facility increasing capacity for Lubrizol’s Estane® thermoplastic polyurethane (TPU)
products by approximately 30 percent.
“A key part of the global growth strategy for Estane TPU is to ensure that our manufacturing
facility at Avon Lake, as well as our global facilities in Oevel, Belgium, and Songjiang, Shanghai,
have the capacity to supply our customer base well into the future,” said Mike Vaughn, vice
president and general manager, Estane Engineered Polymers.
“Business throughout the Americas is growing. We have already sold material produced on the
new line, and we expect that the added capacity will complement all of the product development
efforts underway,” added Dale Willis, business director – Americas, Estane Engineered Polymers.
February 12, 2008
Effective February 15, the Textile Chemicals business of Fairlawn, Ohio-based Omnova Solutions will
raise the price for glyoxal-based resins by up to 12 percent. The price increase is due to
continuing cost increases related to glyoxal, chemical raw materials, energy and freight.
February 12, 2008
As Congress continues to move forward with legislation to do something about the US/China trade
deficit, a top Department of Commerce trade official has outlined how the Bush administration plans
to deal with Chinese trade issues.
While administration trade officials up to this point have for the most part dealt in
generalities about “engagement” with China, Undersecretary of Commerce for International Trade
Christopher Padilla, in a speech before the Center for Strategic and International Studies in
Washington, D.C., put some meat on the “engagement” bones.
Noting that the United States and China find themselves at a “critical junction,” Padilla
said powerful groups in both nations are questioning the benefits of China’s integration into world
trade circles and are calling for barriers to be erected. “Economic nationalists in the United
States will play on America’s anxiety about the competitive challenge of China and the global
impact of its actions on everything from the safety of our children’s toys to the air that we
breathe,” Padilla said.
He noted that China has been developing policies that favor “national champion” firms over
foreign competitors and that this trend worries American business leaders. He said that while China
has acted recently to address problems of product safety, “China’s response to date had not
inspired confidence.” He conceded that given China’s economic nationalism, it is not surprising
that many Americans are concerned and that this concern is reflected in the legislation pending in
Congress.
The House Ways and Means Committee currently is working on comprehensive legislation to deal
with a number of aspects of trade with China.
Padilla said, however, that legislation is not the way to go, warning, “The blunt instrument
of punitive legislation will not work.”
Instead, he said the administration’s approach will be to continue a three-pronged engagement
strategy that combines dialogue with “intelligent use of leverage.” Those steps would include
continuation of “intensive” dialogue with China through the Joint Commission on Commerce and Trade,
use of the World Trade Organization’s dispute mechanism and effective application of current US
trade remedy laws, although he is opposed to legislation supported by US textile manufacturers and
others that would define currency manipulation as an unfair trade practice that should be dealt
with under US anti-dumping and countervailing duty laws.
Padilla said the administration’s three-pronged approach offers a comprehensive strategy to
influence Chinese behavior on everything from specific market access problems to broad
macroeconomic concerns. He added that it “combines dialogue with tough enforcement and can be
calibrated to respond to Chinese actions.
February 5, 2008
After the overall pessimistic messages of the last few weeks and months, this is good news: The
Rieter Group recorded record sales and orders received in 2007. The order volume rose to CHF
4,066.4 million (US$3,698 million), which is a 7-percent plus compared to the previous year. Also,
sales rose to a new all-time high of CHF 3,930.1 million (US$3,574.3 million), this is 12-percent
higher than 2006. The performance is solely based on organic growth in both divisions. Exchange
rate movements had a slightly positive impact too on the group sales. Based on the trend in
operating results at the Textile Systems Division, Rieter expects an improvement in the operating
result and a further increase in net profit and earnings per share for 2007.
Rieter says the global economy developed positively in 2007. Growth was a characteristic
feature in all major industrialized countries as well as in the emerging markets in Asia and Latin
America. Both divisions of the Rieter Group — Textile Systems and Automotive Systems — recorded
significant growth.
Textile Systems
For textile machinery producers, the investment climate on the world market was generally
favorable in 2007. The strongest demand for spinning machinery came from Turkey and from the Asian
countries India and China. Demand was especially strong in the first six months. According to
Rieter, major reasons for this success are a systematic renewal of the product offering, an
efficient global sales and service organization, and increasing value-added in India and China.
Compared with 2006, orders received were 6-percent higher, reaching a record level of CHF
1,703.1 million (US$1,548.8 million), compared with CHF 1,614.3 million (US$1,468.1 million) in
2006. Demand declined in the second half of the year. However, the intake of CHF 619 million
(US$563 million) still exceeded the average six-month figure for the years 2004 to 2006. Sales
increased by 18 percent to the historic record level of CHF 1,566.8 million (US$1,424.9 million).
Sales revenues lost as a result of the divestiture of the man-made fiber machinery business at the
end of 2006 were more than offset. By orders received, Turkey, India and China also headed the
sales rankings: Including Turkey, the division generated 71 percent of sales in Asia in the year
under review, compared with 67 percent in 2006.
All product segments contributed to the high order intake, spinning machinery as well as
technology components. Furthermore, Rieter secured large orders in the United States and Brazil,
where rotor spinning lines are traditionally in use.
The growing importance of the nonwovens sector is also reflected in the Rieter results: the
company received more orders for nonwovens production and pelletizing machinery than ever before.
Automotive Systems
Vehicle output increased worldwide. The production in 2007 rose by 5.3 percent to 69.6
million vehicles. Trends diverged in Rieter Automotive Systems’ two main markets, Western Europe
and North America. While vehicle production declined slightly in North America, it increased by 2.4
percent in Western Europe. The countries in Eastern Europe, Asia and Latin America recorded
significantly stronger growth in production.
Rieter Automotive Systems grew faster than vehicle production, especially in Western Europe
and North America. The division also posted a substantial increase in sales in South America.
Business with the Japanese manufacturers developed positively, especially in the United States.
Rieter Automotive Systems received major new orders for carpet systems in the United States and
deliveries started for various new car models. Therefore, Rieter is expecting further sustained
growth.
The division’s sales of CHF 2,363.3 million (US$2,149 million) were 8-percent higher. Growth
was just as strong in the second half as in the first six months of 2007. According to Rieter
comments, this organic growth was due to its “leading position as a supplier of acoustic and
thermal management systems. Rieter Automotive continued to support the automotive manufacturers’
goals of weight and CO2 reduction in 2007 with its weight-saving acoustic packages and aerodynamic
underfloor modules.”
More positive news is welcome. Please send to
jrupp@textileworld.com.
February 5, 2008
According to the most recent State of Trade Report released by the Switzerland-based International
Textile Manufacturers Federation, global yarn and fabric production and inventories, and yarn and
fabric orders in selected regions grew in the second quarter (Q2) of 2007, compared to the previous
quarter.
Q2 2007 yarn output rose by 1.7 percent over the previous quarter, with regional increases of
10.2 percent in North America, 2.6 percent in Europe and 0.9 percent in Asia; and a drop of 4.6
percent in South America. Compared with Q2 2006, output declined by 1.5 percent, reflecting
reductions of 20.7, 11.2 and 0.7 percent, respectively, in South America, North America and Europe;
and 2.7-percent increase in Asia.
Fabric production rose by 2.6 percent globally over the previous quarter’s output and fell by
2.6 percent year-on-year. Quarterly increases of 0.1, 1.9 and 11.4 percent were reported in Europe,
Asia and South America, respectively; while North American output declined by 1.3 percent.
Year-on-year, Europe, South America and North America registered respective decreases of 3.1, 6.6
and 20.7 percent; and Asian output grew by 1.7 percent.
Q2 2007 global yarn inventories reached a three-year high, rising 2.4 percent over Q1 2007.
Asia’s 5.6-percent increase and Europe’s 3.9-percent hike more than offset the 27-percent drop
reported for South America. Compared with Q2 2006, yarn stocks registered respective gains of 8.0
and 23.3 percent in Europe and Asia, and a 17.7-percent drop in South America.
Fabric stocks rose by 0.8 percent for the quarter, with increases in Asia and South America
of 0.7 and 21.7 percent, respectively; and decreases in North America and Europe of 3.2 and 7.2
percent, respectively. Compared with year-earlier levels, inventories were 21.3-percent lower, with
stocks in Europe dropping precipitously by 42.4 percent, and in Asia and North America by 15.6 and
10.5 percent, respectively; and in South America increasing by 9.8 percent.
Europe and Brazil registered quarterly yarn order gains of 1.1 and 4.0 percent, respectively,
and year-on-year reductions of 1.2 and 18 percent, respectively. Fabric orders also rose for the
quarter, by 2.6 percent in Europe and 8.5 percent in Brazil; and showed mixed year-on-year results,
with a 1.7-percent gain in Europe and an 11.9-percent drop in Brazil.
February 5, 2008
