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Archive for July, 2008

Jul 10 2008

Non-compliant children’s nightwear recalled by ACCC

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The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Lincraft Australia Pty Ltd and Cotton Dreams Pty Ltd after certain bath robes imported by Cotton Dreams and sold in Lincraft stores failed to comply with the mandatory safety standards for children’s nightwear.

Section 65C of the Trade Practices Act 1974 prohibits a business from supplying consumer goods that do not comply with mandatory product safety standards. The standard requires children’s nightwear, including bath robes, to meet rigorous safety requirements. The bath robes failed to qualify for any of the four fire hazard categories and as such should not have been sold. Further the bath robes did not meet certain requisite labelling requirements.

As soon as approached by the ACCC, Lincraft and Cotton Dreams took corrective action. The companies withdrew the garments from sale and carried out a voluntary product recall, advertising the recall in daily newspapers throughout Australia. Lincraft displayed in-store signage on store windows, at the point of sale and on its website notifying customers of the recall and offered customers a refund.

The companies have also undertaken to:

- refrain from selling any children’s nightwear products that are not compliant
- destroy all non-compliant garments returned by consumers and in stock
- Cotton Dreams will implement a trade practices law compliance program, and
- Lincraft will conduct an independent review of its existing trade practices compliance program and upgrade it accordingly.

“Consumer safety remains a high priority for the ACCC, particularly the safety of children,” ACCC Chairman, Mr Graeme Samuel, said today. “The ACCC will not hesitate to take vigorous action when businesses put children’s safety at risk.”

http://www.appareltextile-china.com/news/fn/

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Jul 10 2008

High cotton prices may trip up garment cos

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It’s a double whammy for garment manufacturers. First, a strong rupee had hurt exports. And now, when export prospects have brightened, due to a weak local currency, rising cotton prices have come in the way of the garment industry’s efforts to claw back into the overseas markets.

“The domestic garment industry has maintained a 15% overall growth rate in 2007-08, but surging cotton prices will lower the growth to 10% in 2008-09,” said Clothing Manufacturers Association of India’s president & vice-president of the Asian Apparel Federation, Rahul Mehta.

Garment exports aggregated $9.1-billion in FY08, down 10% in rupee and marginally up at 2% in dollar terms. The garment industry has now put the blame for the current crisis, which it is now undergoing, on unchecked cotton export from the country. According to industry insider, prices have shot up more than 60% from the previous year. In the first six months of the current year, prices have surged nearly 40%, giving a hard time to the industry, said Mr Mehta.

Exporters are feeling the pinch more because the soaring cotton prices have reduced their margins. However, a section of garment makers feel that export prospects have improved as the rupee has weakened against the dollar. Apart from high cotton price, other ingredients like fabric, petro have also gone up substantially, laments Mr Mehta.

India exports garments mainly to the US and European nations, but the US share has slipped 6% due to a slowdown in the economy, Mr Mehta said. To improve export margins “exporters are eyeing on non-dollar countries, alongwith offering high-value products and increasing the range of services to overseas buyers,” he said.

The prices of cotton touched Rs 28,000 per candy in the last month, up from Rs 21,000 per candy about a month-and-half ago and about Rs 18,000 per candy in 2007, making it difficult for the industry to compete in the global market.

However, if the textile ministry’s recent statement is an indicator, then the government is unlikely to ban cotton exports in near future. Recently, JN Singh, joint secretary in the textile ministry, had said that the government would rather consider cutting import duty to boost supplies and soothe prices, instead ban.

It is a problem of mismatch between supply and demand, a textile industry source said. In fact, Indian cotton is in demand as global production has pegged lower at 25.4 million tonnes from 26.6 million tonnes, while demand has already crossed 27 million tonnes, he added.

India expects to produce 325 lakh bales (a bales equals 140 kg) in 2008-09 and domestic industry requires about 241 lakh bales annually. For export, industry requires close to 95 lakh bales.

Putting behind all these obstacles for now, the Clothing Manufacturers Association of India (CMAI) is organising the forty-ninth national garment fair from July 9-11 at the Bombay Exhibition Centre at Goregaon (E) in Mumbai. More than 250 companies representing more than 400 brands are expected to participate in the event.

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Jul 10 2008

Alcotexa sells tons of Giza cotton for exports

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Alexandria Cotton Exporters’ Association (Alcotexa) affirmed on July 6 about its commitment to sell 40 tons of cotton for export in the week that ended July 5.

 

Official sources confirmed Fibre2fashion that the cotton to be sold for exports is essentially the Giza 70 variety which is well known for its superior quality.

http://www.appareltextile-china.com/

 

With this new contract, Alcotexa’s overall export commitments for the season, which began in September, totaled 13,102.78 tons of cotton worth US $282.166 million.

 

Egyptian cottons are used to create bedding of all types from sheets to pillowcases to comforters. The long staple or long fiber of Egyptian-grown cotton means that there is more continuous fiber to use when creating threads or yarns.

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Jul 10 2008

CSB petitions for extending anti-dumping duty on silk imports

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Cheap silk yarn imports from China have not only flooded the Indian markets but have nearly crippled the business of domestic silk producers and exporters.

 

Official sources from the state-owned Central Silk Board (CSB) informed Fibre2fashion, that in a bid to retaliate against this illicit trade practice, CSB has filed a petition with the Union Government to extend anti-dumping duty on silk yarn imported from China for another four years from January 2009.

 

Since Chinese silk yarn is cheaper in comparison to the India raw material, producers in India are finding it difficult to hook buyers.

 

A case filed by the CSB earlier led to the implementation of anti-dumping duty on silk yarn imports from China in 2002-03. Thereafter, domestic manufacturers witnessed a considerable increase in their profits while exports from India also experienced a substantial growth. The duties were extended again for a period of five years which ended in January 2008 and yet again for a year till January 2009.

 

Now, based on the newly filed petition of the CSB, the central committee would make a visit to the silk producing areas from next month to survey the charges for extending the anti-dumping duties.

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Jul 10 2008

Textile mills stopped production today

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Around 4,500 small, medium and large textile mills in the organised sector and SSI sector stopped production at all India level demanding suspension of cotton export till 31st December 2008, zero duty on cotton import, withdrawal of export incentive on cotton, channelising and restricting the quantity of cotton export, reducing the margin money for working capital from 25% to 10% at 7% interest rate on par with agricultural loan.

http://www.appareltextile-china.com/

 

In addition, the textile mills in Tamil Nadu had demanded from the State Government to ensure uninterrupted power supply, distribute the shortage of power uniformly across the State, reduce the shortage by adopting Pune model and providing suitable fuel subsidy to enable the mills having captive power plant to operate the gensets. The mills in Tamil Nadu had also demanded flexible labour policy.

 

The Chairmen of all Textile Mills’ Associations in Tamil Nadu, in a press release issued, have stated that the Indian textile industry which has been undergoing recession during last two years is now facing severe problem due to the abnormal cotton prices and shortage of power.

 

Inspite of a record bumper crop of 315 lakh bales during the current season, the domestic industry seriously suffered due to liberal export of cotton, around 100 lakh bales as against 65 lakh bales, the estimate made by Cotton Advisory Board during the beginning of the cotton season. This has depleted the stock-to-use ratio to below 20% as against over 40% maintained by other competing countries like China, thus soaring up of cotton prices.

 

The Chairmen of all Textile Mills’ Associations in Tamil Nadu have further said that though the industry has been pleading from the beginning of the cotton season to take necessary steps so that the second largest employment provider in the country is protected, the Government did not take any step to control cotton prices.

 

The multinational cotton traders who are able to get unlimited funds at 2 to 3% interest rates hoarded large volume of cotton and speculated the prices resulting in over 45% hike in the price when compared to last year. This has made even the best mills to incur heavy cash losses.

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Jul 04 2008

MPG North America wins Jones Apparel account

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NEW YORK, June 30 (Reuters) - Media buying agency MPG North America said on Monday it has won Jones Apparel Group Inc’s (JNY.N: Quote, Profile, Research, Stock Buzz) media planning and buying account.

MPG did not disclose how much it anticipates Jones will spend, but said the clothing, footwear and accessories designer and marketer spent about $30 million on media last year, citing data from TNS Media Intelligence.

Its brands include Nine West, Anne Klein, Bandolino and Joan & David.

MPG is owned by France’s Havas (EURC.PA: Quote, Profile, Research, Stock Buzz).

(Reporting by Robert MacMillan)

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Jul 04 2008

Blocking Rays with Sun-Protective Clothing

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The most effective method of avoiding undue sun exposure is to stay indoors, but most of us love the sun too much. Does chemical sunscreen or sunblock provide a solution? Not likely, says Harvey Schakowsky, owner of Solar Protective Factory, a Madison, Wisconsin-based manufacturer of Solarweave sun-protective fabrics and garments. For one thing, not all of these chemical products are designed to block both UVA and UVB radiation. Further, says this 18-year industry veteran, many of these lotions and creams are “insufficiently tested and very seldom perform up to the level of the claims that are made for them.” And there are plenty of consumers who shun sun protection altogether—leading to conditions from cataracts to rosacea to premature aging. Melinda Damico, co-owner of the New Jersey company PAZ, which makes sun hats, says some 70 percent of the American public does not use any form of sun protection.

Sun-protective clothing—from wide-brimmed hats to long-sleeved bathing suits and hoodies—takes UV blocking to new heights. The clothes provide a barrier against rays (and resulting skin conditions). There’s no forgetting to reapply sunscreen, and there’s significantly less waste and cost than buying bottle after bottle of lotion. Also, many of those lotions contain petrochemicals that organic-minded consumers would rather avoid.

Chemical Blockers?

Marta Phillips, owner of SunGrubbies.com, acknowledges that sun-protective clothes may be derived from petroleum and contain chemicals, but they won’t be absorbed by the skin. Polyester, nylon and Lycra are three popular materials used for these specialized garments. Polyester fibers not only absorb UV, they can be shaped to help wick moisture, thus keeping skin cooler. She says that dark-colored, heavy denim may be the best choice. She does not sell denim, but carries a wide selection of pants, jackets and hats, as well as unusual items such as cover-ups, sun gloves, sun sleeves (for truckers and other professional drivers whose left arms are often exposed to UV rays), and nose scarves, which, Phillips says, are often more comfortable than prostheses for customers who have lost their noses to cancer.

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Jul 04 2008

The future for the wool industry is positive

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Australian Wool Innovation (AWI) has recently wrapped up another round of its “Road to 2010 Forums”, bringing the informative road shows to woolgrowers in a total of five key wool producing areas across New South Wales.

The forums allow industry to report back to woolgrowers, updating them on progress in relation to the mulesing phase out.

“We will be covering the big picture, with up-to-date feedback and facts on what our customers are saying and industry’s response to them, marketing information from the supply chain down, as well as what the phase-out means on farm with updates on flystrike management and alternatives to the practice of mulesing,” said AWI Product Market Manager Stuart McCullough prior to one of the events.

The joint initiative was brought to woolgrowers by AWI and the NSW Farmers’ Association, with the support of government and other groups throughout the wool industry.

Industry experts lead discussions on flystrike prevention alternatives – clips, intradermals and genetic breeding of bare-breech sheep – pain relief, and mapping of the blowfly genome. In particular, the clips are providing very favourable trial results.

“I’ve looked closely at welfare studies that have demonstrated that when you compare clips to mulesing, the clips have an outcome that is far more welfare friendly when compared to mulesing,” said Dr Norm Blackman, manager of the Australian Wool and Sheep Industry Taskforce.

“Animals are back to normal in a couple of hours. In the case of mulesing it takes a few weeks. The clips are shaping up as an effective alternative to mulesing and are a major step forward from an animal welfare perspective” he said.

Research and development into biodegradable clips is currently underway. A portion of the AWI website has also been converted into a dedicated information portal on updates on the Road to 2010.

Mr McCullough concluded: “The future for the wool industry is positive and we are taking the right steps to achieve the phase out. Australian Merino wool is a great natural fibre with plenty to offer, however, we must change and adapt to meet our customers’ needs.”

http://www.appareltextile-china.com/

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Jul 04 2008

Clearance rates of wool again good

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The Australian wool market finished 0.5% lower, on average, at sales in Sydney, Melbourne and Fremantle this week in the first sale of the 2008/09 season.

The AWEX EMI was unchanged, ending the week at 874¢/kg. This reflected a rise of 2¢ (+0.2%) in the North and a decrease of 5¢ (-0.6%) in the South, with their corresponding Regional Indicators finishing the week at 912¢ and 840¢ clean, respectively. The Western Indicator fell by 9¢ (-1.1%), finishing the week at 845¢.

In a two day sale in Sydney and Melbourne, the AWEX EMI rose by 2¢ on Wednesday and fell by 2¢ on Thursday. The Western Indicator rose by 1¢ on Wednesday and fell by 10¢ on Thursday in a two day sale in Fremantle.

Looking at the situation over the last twelve months, it was one of two halves, with rising prices in the first half followed by a falling market in the second half, before steadying over the last three sales. The EMI was 929¢ in Week 01, rising to 1,045¢ in Week 30 compared with 874¢ this week.

45,544 bales were on offer, compared with 40,292 bales at the last sale, of which 7.9% were passed in, comprised of 5.4% in Sydney, 8.6% in Melbourne and 9.6% in Fremantle. Pass-in rates for Merino fleece and skirtings were 7.9% and 5.8%, respectively. 1,431 bales (3.0%) were withdrawn prior to sale and re-offered bales made up 7.2% of this week’s offering.

The US exchange rate (source RBA) was 0.59¢ higher on Monday when compared with Thursday of the last sale. It was then down by 0.73¢ on Tuesday, up by 0.46¢ on Wednesday and by 0.25¢ on Thursday to close at 96.24¢, up 0.57¢ (+0.6%) since the last sale.

The exchange rate against the Euro fell by 0.78 Euro cents (-1.3%) to close at 60.65 Euro cents on Thursday night. When looked at in other currencies, the AWEX EMI moved up by 5¢ (+0.6%) in US terms and was down by 7¢ (-1.3%) in Euro terms when compared with the previous sale.

The market remained firm this week against a United States exchange rate which again broke the 96¢ barrier. Clearance rates were again good and competition continued to be strong for the better types of wool. Superfine average Micron Indicators (MPGs) all moved up, apart from 18.5 microns, whereas the medium and broad Merino MPGs all eased.

Average AWEX Micron Price Guides (MPGs) were up by 2¢ for 17.0 microns, by 5¢ for 17.5 microns, by 7¢ for 18.0 microns, down by 9¢ for 18.5 microns, up by 10¢ for 19.0 microns and by 5¢ for 19.5 microns. The 20.0 micron wool average MPG was down by 9¢ clean, 21.0 microns by 11¢, 22.0 microns by 9¢, 23.0 microns by 10¢, and 24.0 microns by 3¢.

Skirtings continued to be strong demand, finishing the week on a firm note. Oddments again eased slightly with a 6¢ fall in the average Merino Cardings MPG. Crossbreds were generally unchanged among the fine and medium types and up at the coarse end, where their average MPGs were up by around 3¢.
http://www.appareltextile-china.com/

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Jul 04 2008

Non-compliant children’s nightwear recalled by ACCC

Published by blogtootoo under Uncategorized Edit This

The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Lincraft Australia Pty Ltd and Cotton Dreams Pty Ltd after certain bath robes imported by Cotton Dreams and sold in Lincraft stores failed to comply with the mandatory safety standards for children’s nightwear.

Section 65C of the Trade Practices Act 1974 prohibits a business from supplying consumer goods that do not comply with mandatory product safety standards. The standard requires children’s nightwear, including bath robes, to meet rigorous safety requirements. The bath robes failed to qualify for any of the four fire hazard categories and as such should not have been sold. Further the bath robes did not meet certain requisite labelling requirements.

As soon as approached by the ACCC, Lincraft and Cotton Dreams took corrective action. The companies withdrew the garments from sale and carried out a voluntary product recall, advertising the recall in daily newspapers throughout Australia. Lincraft displayed in-store signage on store windows, at the point of sale and on its website notifying customers of the recall and offered customers a refund.

The companies have also undertaken to:

- refrain from selling any children’s nightwear products that are not compliant
- destroy all non-compliant garments returned by consumers and in stock
- Cotton Dreams will implement a trade practices law compliance program, and
- Lincraft will conduct an independent review of its existing trade practices compliance program and upgrade it accordingly.

“Consumer safety remains a high priority for the ACCC, particularly the safety of children,” ACCC Chairman, Mr Graeme Samuel, said today. “The ACCC will not hesitate to take vigorous action when businesses put children’s safety at risk.”

http://www.appareltextile-china.com/

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