UK firms ride intelligent wear wave

British firms are leading the way in smart fabrics and interactive textiles for wearable electronics. A new report from Textiles Intelligence has showed that at least seven UK-based companies have integrated smart technical textile technology into clothing and consumer goods. Three of these companies – which include Auxetix, Eleksen, Fibretronic and Peratech – have designed their products to interface with software from Microsoft and iPods. Many of the products are being sold under well-known brand names like Burton , Ermenegildo Zegna, Levi's, Nike, O'Neill, The North Face and Tommy Hilfiger.

Intelligent fabrics are most commonly used in wearable electronic control systems, with success driven by growth in the market for iPods and other portable electronics. Smart fabrics are also used in high performance sportswear, such as protective skiwear and motorcycle gloves.

According to Textiles Intelligence, the one challenge facing the more successful players is the rate at which they are able to raise additional capital to meet production demands, although many are able to secure the necessary fund due to increased demand for smart fabrics.

www.textilesintelligence.com
2 May 2007

Dawson likely to split

Dawson International could be split up, with various parts of the cashmere group to be sold to the highest bidder. The Scottish textile group said last week that it had entered takeover talks “with a number of parties which may or may not lead to an acquisition of a substantial shareholding of existing shares in the company or an offer for the entire issued share capital”. The company emphasized that talks were at “a very preliminary stage and there can be no certainty that any offers will be made or as to the terms in which any offer might be made.” Analysts believe that a sale of parts of the business is imminent and that the individual brands are worth more than the sum of their parts. Although the identity of the interested parties is unknown, some have speculated that a consortium of Italian investors, including former deputy chairman Giovanni Ghione, may be potential buyers.

In August, the group reported a drop in earnings due to poor market pricing and investments in its Todd & Duncan brand. Pre-tax losses added up to £3.2 million, down from a profit of £500,000 the year before.

www.dawson-international.co.uk
27 November 2006

Brazil could be major textile market

Brazil could become a major player on the international textile marke. Already taking advantage of a fully-integrated cotton industry, Brazil is also investing in a huge polyester project to develop its man-made fiber textile and apparel industries. The country also has very large textile groups that are ready to make further progress on the global denim market. Taking into account its size (1.5 million workers) and supply chain potential, the presence of Brazil 's textile and clothing industry on the international market is not very impressive. In 2005, total production of the sector amounted to $26 billion, of which $2,2 billion were exported.

However, the country is ready for a bigger international role. Until now, Brazil –a self-sufficient cotton fiber producer- was internationally pretty competitive in cotton products, but not in synthetic articles. Thanks to the Suape investment, Brazil will be able producing polyester fibers and yarns at Asian prices, argues Mr Dieter Albrecht, president of both Polyenka and Abrafas, the Brazilian Association of Man-Made Fibre Producers.

Brazil 's international competitiveness in synthetic textile products will be strongly enhanced. And eventually one million new jobs will be created across the whole Brazilian textile chain, according to Mr Albrecht. There are a few world players among the roughly 30,000 Brazilian textile and clothing companies. Especially two of them deserve full attention: Coteminas and Vicunha. By the end of 2005, Coteminas combined its home textile business in a joint venture with Springs Industries, USA , to form ‘Springs Global', the largest vertically integrated textile home furnishings company in the world.

Brazil produces on average 1 million tons of cotton yarn per year, mostly from local cotton fibere. Brazilian cotton industry leaders feel confident they are internationally competitive. A 2003 ITMF cost comparison with China and other countries, indicated that, except for textured yarn and fabrics, Brazil can produce cotton yarns and fabrics at a lower cost than China .

22 February 2006

French fair with British twist

The textile trade fair Tissu Premier will be putting Great Britain in the spotlight this year. The French fair will take place on 7 and 8 September in the expositioncomplex Grand Palais in Lille, France. This year the fair resumes the old tradition of honouring a guest and 2005 is Great Britain's turn. British designer Zandra Rhodes has been invited to run the designers' exhibition. The founder of the London Fashion and Textile Museum, Rhodes is a well-established name in fashion. Together with her a number of young British designers will present their collections at Tissu Premier.

Currently, 371 participants have signed up for the fair. Together they will be presenting 390 collections. 69 per cent of them are European, of which 35 per cent French, 17 per cent Mediterranean, and 14 per cent are from Asia and Russia.

Tissu Premier will feature knitted textiles, prints, dyed materials and sportswear. Furthermore the fair will offer a variety of services in order to provide a complete range of solutions for the visitor: tendering confection, reseach facilities, prototypes, a textile library, quality control and logistics, to name but a few.

7 July 2005

Dawson reveals reduction losses

Dawson International, the Scottish textiles group, revealed this week that it has reduced its pre-tax losses by GBP17.1 million. The company also said that its core Barrie and Todd & Duncan divisions had made a profit.

The company reduced its losses for the year ended 1 January 2005 to GBP 2 million from GBP 19.1 million the year before. Dawson's turnover climbed from GBP 68.3 million last year toGBP 70.2 million.

The Barrie cashmere knitwear business, based at Hatwick in Scotland, increased its turnover, as did the Todd & Duncan cashmere yarn business, based in Kinross in Scotland. Customer service improved "as a result of better production planning". The US-based Dawon Forte cashmere knitwear business more than doubled its profits in 2004.

"Substantial progress has been made during 2004 to stabilise the financial position of the group and restore all remaining businesses to profit," chairman Mike Hartley said in a statement. "The strategic review is now complete and we have embarked upon a new growth phase of the planned turnaround of the group. This is evidenced by the acquisition of Dorma earlier this year, which almost doubles the size of the group. We expect that our newly developed strategic position coupled with a strong operational results focus will deliver further improvements in profit and cash generation from the enlarged group."

Dawson International is one of the world's leading cashmere companies. Since its acquisition of Dorma in February 2005, it is now also one of the leading manufacturer of fine bedlinens.

www.dawson-international.co.uk
12 May 2005

Serbia to join EU textile trading

The European Union will sign with Serbia on Thursday an agreement for the trading of textile products. With this agreement, the Serbian industry will have the possibility to increase its placement of textile products several times over on the EU market, an industry which brought in about 156 million dollars last year.

The agreement should take effect on May 1 and will be the first agreement that Serbia has made with the EU following the framework of the two-way track plan for European integration. The agreement calls for the cancellation of all customs taxes and limits on the amount of products that can be exported and imported, although Serbia will keep a customs charge on the import of goods for three years, which will periodically be decreased before it is fully abolished.

31 March 2005

Trade Barriers Still In Place

The textile and manufacturing industry may appear to be open to all since trade barriers were banned last January, however many barriers remain despite years of consultations and diplomatic pressure. According to WWD, in a recent US report on foreign trade barriers it stated that China, India and Egypt still maintain some of the highest barriers on imported clothes and textile products, as well as upholding tricky laws concerning retailing and distribution.

As part of its WTO commitments, China changed its laws in December to allow foreign companies to open wholly owned retail operations within the country, but foreign firms still face a plethora of regulations from local governments that can slow their entry into the market.

Counterfeiting in China is another issue that has reached "epidemic levels and caused serious economic harm to European and US businesses. The U.S. has been pressing the Chinese government to improve intellectual property rights enforcement and Vice Premier Wu Yi presented an "action plan" in April 2004 calling for improved legal measures and increased criminal prosecution of IPR violations, as well as increased enforcement.

In India, trading tariffs have not come down and are remarkable high, according to the report. For many companies, India continues to maintain numerous textile trade barriers, and remains one of the most heavily protected textile markets in the world," the report noted. While the US has been a difficult market for European collections to penetrate, there are no sanctions or penalties for EU companies wanted to expand to the US. It is those companies with a solid knowledge of the foreign market that tend to succeed in hitting the jackpot abroad.

30 March 2005

Italy protection from cheap imports

The Italian fashion industry is seeking protection from cheap imports from China. A recent signature campaign carrying 100,000 signatures is to be presented to government representatives today in an effort to stem the abundance of free trade and unfair competition, particularly from China. The textile-clothing petition is being promoted by the Association for Italian Fashion, the Association for Italian Textiles and Tessilvari.

Monday was "texile day" in Italy. In addition to the presentation of the petition to government officials, activities in support of the sector are being held in 18 Italian towns. It follows on the heels of the muli-fibre agreement and opening up the market to the importation of textiles, and requests measures to prevent unfair competition.

According to the textile associations, Chinese imports have tripled in quantity. Meanwhile, prices have dropped by 75 per cent in a number of textiles sectors, namely in sweaters and t-shirts.

The Italian fashion market consists of three parts: high fashion, which consists mainly of Italian clothes, comprises 10 per cent of the market; medium fashion comprises 30 per cent of the market and in this category more than half of the clothes are Italian; the low end, which makes up the remaining 60 per cent, gets supplemented from abroad.

The textiles associations claim that in order to maintain the better-quality fashion market, it is becoming increasingly necessary to invest in the label and the higher added value to the clothes. The textiles sector provided direct employment to approximately 570,000 people working at 68,000 companies. Over a third of Italian commercial income comes from the textiles sector.

21 February 2005

Ulster Weaver closes two plants

The Northern Ireland textile company Ulster Weavers will close two of its four production plants, resulting in a loss of almost 80 jobs. The restructuring plan for the company will cause 38 jobs to go when the Armagh factory shuts, and another 39 jobcuts at the closing of the plant at Castlewellan in County Down. More jobs will be lost at the company's head office near Banbridge in County Down.

According to managing director Declan Gormley, tough competition from low-cost manufacturers as well as increasing costs in Northern Ireland are at the root of the decision to close the plants. Ulster Weavers produce Irish Linen products for retailers such as Marks & Spencer. The company will continue to employ over 150 people in the province.

www.ulster-weavers.com
15 February 2005

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