TI 05 - September 19 by T Digital

PAULO AUGUSTO DE OLIVEIRA

THE BILL, PLEASE

THE MACHINE THAT CHANGED THE LIFE OF JORGE PEREIRA

Paulo de Oliveira's Administrator

“WE DON'T COMPETE FOR PRICE”

N U M B E R 5 S E PT E M B E R 2 01 9

P 12/13

I N T E R N AT I O N A L DIRETOR: MANUEL SERRÃO

BREAKING THROUGH

CARLA LOBO, THE TIME MANAGER WHO ALWAYS HAS A PLAN B P 19 THAT IS THE QUESTION

DO INNOVATION AWARDS IMPACT THE COMPANIES' BUSINESS?

PHOTO: RUI APOLINÁRIO

P4/5 WORKWEAR

EXPANSION

TORFAL DRESSES EUROPEAN COMMISSION EMPLOYEES

BALLET ROSA ON TAOBAO TO QUINTUPLICATE SALES

P 10

September 2019

[CASSIANO FERRAZ] www.cassianoferraz.com

PHOTOGRAPHY FASHION / ADVERTISING

September 2019

TAILORING&SEWING

EDITORIAL By: Manuel Serrão

By: Manuel Serrão

Luís Moura 47 years old The AICEP delegate in Madrid is a Bachelor in Economics (Universidade Nova de Lisboa), Masters in Economics (Université catholique de Louvain) and European Studies (College d'Europe, Bruges). He has worked for over 22 years at ICEP/AICEP, having been a delegate to Canada, United States and Angola. He has been in Madrid since 2016

AICEP delegations are really spreading the movement of internationalization of the Portuguese companies… AICEP’s physical presence in the markets is a plus that should be availed by all companies and associations involved in internationalization processes. It allows not only to accompany trends, innovations and competition, but also the market’s variants and nuances, as well as multiply contacts with decision-makers, influencers and buyers, which leads to identifying opportunities and generate business.

Regarding fashion and textiles, how do you see the evolution of the Portuguese product’s image in Spain? In the private label production, the change of perception has been very clear, and the Spanish brands, which have almost completely abandoned the industrial activity, have found in Portugal a close and natural partner that completes them. Much harder, though, has been the experience of the Portuguese fashion brands, which find Spain one of the most competitive markets in the world. Nevertheless, there are stories of success worth mentioning, such as Salsa, Parfois and Loja do Gato Preto.

The ‘Portugal’ brand adds, subtracts or is it neutral? Over the last 20 years we have witnessed a total paradigm shift of the perception of Portugal as a producer and exporter of quality products, flexible and close, and with very competitive value within the “Made in EU” space. At the AICEP delegation in Spain, we acknowledge a very significant evolution under this domain: in the past, we received requests of factory listings based on lowest price. Nowadays companies contact us because they know that the quality of the Portuguese products is higher.

Spain is the champion of our textile exports. Is there room to grow? In some subsectors it will most likely decrease because when consumption plummets, the big brands will turn towards lower prices in Asia, Northern Africa or Turkey. However, there is a new group of Spanish brands, entrepreneurs and companies that are growing online and are looking for industrial partners in Portugal. Also, in the technical textile and sustainable eco fashion segments, Portugal's proximity and industrial capacity are a tremendous asset. t

WOOL NEVER FOOLS If there was one thing that T was lacking, was a cover with the leader of the biggest Portuguese industrial group and one of the largest wool manufacturers in Europe and the world. Paulo Augusto Oliveira is the face of this edition’s cover, but he is so much more than that. Every one of his answers is meant to be read thoroughly and in between the lines. This interview, although scheduled for a while now, took some time to happen, but as you may certainly concur during its reading, it was worth the wait. After the lengthy visit that T paid to Paulo de Oliveira, with Luís Oliveira going with us through every detail and every great transformation of the past years, and combining that knowledge with what his brother Paulo shared with Jorge Fiel, I just now that this Group hasn’t got to where it is as a matter of chance. Competence, allied with serious work, also never fools.

Property: ATP - Associação Têxtil e de Vestuário de Portugal NIF: 501070745 Editor: Paulo Vaz Director: Manuel Serrão Adress: Rua Fernando Mesquita, 2785, Ed. CITEVE 4760-034 Vila Nova de Famalicão Telephone number: +351 252 303 030 Email: tdetextil@atp.pt Subscription e Advertising: Cláudia Azevedo Lopes Telephone number: +351 969 658 043 - mail: cl.tdetextil@gmail.com ERC Provisional Registration: 126725 Circulation: 1000 copies Print Shop: Grafedisport Adress: Estrada Consiglieri Pedroso, 90 - Casal Santa Leopoldina - 2730-053 Barcarena Legal Deposit Number: 451405/19 Editorial Status: Available in: http://tjornalinternational. com/editorial-statute/

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n THAT IS THE QUESTION By: António Freitas de Sousa Illustration: Cristina Sampaio

September 2019

“They motivate companies with the acknowledgement, but does it translate in terms of business? In many cases yes, in others it’s collateral” MIGUEL PACHECO HELIOTÊXTIL

DO INNOVATION AWARDS IMPACT THE COMPANIES' BUSINESS? The multiple awards that the Portuguese companies and researchers have been stacking up leads to business, and leverages the reputation of the whole rank. However, the message from the entrepreneurs is clear: it’s necessary for communication to be effective, so that the final customer, namely the foreigner one, has the perception that the Portuguese textile and clothing industry is, at a larger scale, the avant-garde of what best is made in the world

September 2019

“The margins are always strict, but more innovative products allow the company better margins”

“Communication is essential: we must make the client perceive our real value and that’s why our average selling prices have been rising”

“Awards are not all the same. The ones focused on the companies bring the most immediate results”

“They are a great reputational stimulus, which is very good, collectively, for the sector’s image”

“Awards are an asset, no doubt, but I don’t find it easy to make a direct correlation between prizes and margins”

AGOSTINHO AFONSO TÊXTEIS PENEDO

MÁRIO JORGE SILVA TINTEX

BRAZ COSTA CITEVE

PAULO VAZ ATP

RUI CASTELAR SIT

search in the areas of nanotechnology and smart materials (associated to CITEVE), of which Braz Costa is also a manager, “is the entity in Portugal that holds the highest number of patent requests: 110 since 2010, 16 granted and 40 at an advanced phase, which is remarkable because it is a painstaking process” and extremely thorough. Paulo Vaz, general manager of Portugal's Textile Association (ATP), has no doubts regarding the efficiency that innovation awards have in terms of producing an outstanding general image of the sector at an international level, leaving the competition far behind. “Awards are a great reputational stimulus – straight off from a communication standpoint – which is very good, collectively, for the sector’s image”. If these awards are, in some way, a differentiating drive, they also imply a continuous investment – not on the awards itself, but in what the awards point to: a company’s direction. The impact on revenue and even on business margins, “if not immediately, it will certainly be felt in the long term. It should not be pure pride, they have an economic purpose in mind”, added Paulo Vaz, highlighting that “the awards that companies have been accruing are not a part of that ‘prize industry’”. As for the possibility to make a direct alignment between innovation prizes and business margins, each company is a case of its own. Let’s look at two opposite examples. For Agostinho Ribeiro, Têxteis Penedo’s executive director, “innovation

prizes give visibility to the company, which enables the access to certain business niches that otherwise would be out of reach. The margins are always controlled, but more innovative products allow the company better margins”. In the matter of reputation, there are no doubts: “it is extremely important for the sector and for Portuguese textiles, especially at an international level”. On the other hand, Rui Castelar, head of SIT, states that “awards are an asset, no doubt, but I don’t find it easy to make a direct correlation between prizes and margins”. An idea shared by Mi-

guel Pacheco, of Heliotêxtil: “If an innovation award isn’t artificial, I believe it motivates companies with the acknowledgement given, but does it translate in terms of business? In many cases yes, in others it’s collateral”. At any rate, the importance stands, also because “they are a way of consolidating the image of the sector in the international markets, for the visibility they carry”. However, Miguel Pacheco finds that the sector is exposed to what one could call the ‘prize industry’, and highlights the need to ascertain “those that are really worth from those that are worth al-

most nothing”. Paulo Augusto de Oliveira understands, however, that “in terms of visibility, awards are always positive, but the business practise might not correspond since there are prizes awarded to products with no commercial interest. However, that might end up generating synergies that help to sell other items. I don’t see a direct relation between prizes and awards, but the reputation that spreads is very positive”, enhances the CEO of Paulo de Oliveira. Mário Jorge Silva, of Tintex, turns the attention to a subject that his peers have paid very little attention: “companies’ difficulty to make their awards known” and, moreover, having difficulties to draw their utmost importance. “Tintex, at the same time it wins awards, it also holds a very well-structured marketing and communication campaign, letting the client realize our strongest assets: our development efforts. This is the reason why our average prices have been rising. Communication is fundamental: we must make the client perceive our real value. I don’t understand nor accept that, if we have a better product, it should be sold for less than those in other countries”. “Innovation must be transformed into results. It must be an investment rather than a cost”, concludes. The entrepreneur’s verdict, besides a valid opinion, it’s a statement for the whole industry: closing the virtuous cycle of innovation is only possible when the investment undertaken is transformed in revenue, and on the rise of margins and profits. t

he accumulation of prizes that highlights the Portuguese textile and fashion innovation – one outstanding characteristics of their DNA, which turned them into success cases, both inside and outside Portugal’s borders – is, simultaneously, cause and consequence of the industry’s reputation and credibility. A clear symptom of the virtuous matrimony between companies, universities and advanced research centres, the awards are also capable to contribute directly to the rise of business margins, closing of the development cycle which is, ultimately, its very reason of existence. “Awards are not all the same. Those that focus on the companies are the ones that bring the most immediate results. When, for example, in a contest associated with a foreign trade fair, a company is awarded, and the products exhibited, that has an impact on the international market”, explains Braz Costa, general manager of CITEVE, one of the top research centres in Europe. “Then there’s another type of awards, maybe more technological, that have no direct influence on the company’s business, but has consequences in the medium and long terms”, reputation wise. “The Portuguese textile cluster highlighted position amongst other innovative countries may not have an immediate effect on sales, but has an extremely positive effect”, underlines Braz Costa. Precisely to boost this effect, CeNTI, the institute that undertakes re-

“I don’t see a direct correlation between prizes and sales, but the reputable image that spreads is a very positive aspect” PAULO AUGUSTO OLIVEIRA PAULO DE OLIVEIRA

September 2019

BUREL GROWS 38% AND SUPPLIES OLX, GOOGLE AND KPMG Burel Mountain Originals has closed last year with a recorded business volume of three million euro, a 38% growth compared to 2017, partly boosted by their performance in the decoration/architecture segment, namely for the offices of Google, KPMG and the Portuguese classifieds website OLX. Deloitte, Cidade do Futebol (Oeiras) and Museu do Dundo (Angola) were the projects that Burel followed in this area, whose significance led to the opening of a specialised store for the segment at Ferragial street, in Lisbon.

50%

of Lameirinho’s sales are made in the US. France and the UK are, respectively, second and third best markets of the Coelho Lima family's home textile company

TORFAL DRESSES EUROPEAN COMMISSION EMPLOYEES

VALERIUS TEAMS UP WITH BRITISH BLOGGERS

AXFILIA SUPPLIES KNITWEAR TO THE BASEL POLICE

Valerius has established a partnership with a British company to produce clothes for the brands of six English bloggers, each one of them with its own legion of followers ranging between two and three million people. “Everybody is out looking for price, but when you’re working with a market niche the margin is even greater”, explains José Manuel Vilas Boas Ferreira, president of the Valerius group.

All the knitwear from the French Civil Protection uniforms, the Swiss police in Basel or the staff of the German ADAC (the largest automobile club in Europe, with more than 15 million members) is provided by Axfilia, the Barcelos company created by Maria José Machado. Ready to work is Axfilia's two-way signature, a company that closed 2018 with more than a half million euros in sales, mostly made with exports.

"Our plans include presenting the customer with a product that is 100% recycled and 100% sustainable, that incorporates the waste from the cutting process along with other raw materials" Founded in 1975, Torre Confecções' main focus is to manufacture clothes for special events, such as weddings, baptisms and galas

The European Comission and European Parliament employees wear tailor-made clothes made in Belmonte by Torfal, a subsidiary of Torre Confecções group, which specialises in work and protective clothing. Other companies in Torfal’s portfolio include the public transportation of Paris (RATP- Régie Autonome des Transports Parisiens, counting 60 thousand workers), the Valencia railways, the airline TAP, the national railway CP and Banco CTT. The corporative contracts for the clothing supply differ according to the companies. In the case of the European Union, the clothing delivered is not only custom-made but also allows every worker to choose the style (slim-fit or over-size), fabric and even the colour, with a

personalized delivery in Brussels. Founded in 1975, Torre Confecções employs over 300 workers, in Belmonte, and its main focus is the manufacture of ceremonial (for special events such as weddings, baptisms and galas) and classic suits, with the overwhelming majority being sold under its own brand. Roberto Vicente and Thomas Pina are Torre’s own brands, the latter featuring a more Italian cut to appease that market, spread through a network of agents across Italy. A small part of its production is made under a private label regime for Massimo Dutti. Manuel Luís Goucha is one of the celebrities dressed by Torre, present in Spain, France and Italy through its branch stores. t

José Costa R. Lobo's Administrator

A FERREIRA & FILHOS MAKES UPPERS FOR VEGAN SHOES An upper made from organic cotton is the contribution of A. Ferreira & Filhos for the first 100% vegan shoe in the world. The order was placed by the Canadian brand Native Shoes, which is presenting it as Earth-friendly shoeware, entirely made from biodegradable ingredients, free of any animal byproducts. "It was the brand's agent who contacted us. We developed a structure with the adequate stiffness for the shoe, and within two weeks we delivered the final prototype”, relays the company's CEO, Noel Ferreira.

September 2019

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September 2019

A THE BILL, PLEASE Piazza

Hall 4.1.7 Messe Frankfurt Ludwig Erhard Anlage 1 Frankfurt am Main

Main course Four-cheese pizza Drinks Coke, Becks Beer and a coffee

JORGE PEREIRA

He dreamt of becoming an air traffic controller, but failed the exam. He then wanted to become a pilot, and passed all the exams, but gave up at the last minute, pressured by his mother, who kept telling him it was a bad profession –flying from one place to another wouldn’t allow him to raise a family. He set his feet on the ground and enrolled in the Management degree in Porto’s Universidade Católica, where he was when his father, Adélio, purchased a sewing thread machine. In 1987, Lipaco was founded. Jorge Pereira was born in 1964, back when Maputo was still called Lourenço Marques, and came to Portugal just two and a half years later. At first, the family lived in Trofa (where his mother owned a grocery store and where he learned the trade secrets from his grandmother), before laying down roots in Esposende. Married to a physiotherapist, they have a 21-year-old daughter, who graduated in Management from Porto’s Universidade Católica

THE MACHINE THAT CHANGED HIS LIFE

PHOTO:RUI APOLINÁRIO

55 YEARS OLD LIPACO'S CEO

God forbid if an idea gets in his head! His family, who knows him better than anyone, is always warning everybody, urbi et orbi, so they don’t get caught off-guard. If an idea gets stuck in his head, it’s certain that Jorge Pereira will stop for nothing before he makes it a reality. The fault for getting Lipaco into his head was his father, Adélio (from whom he inherited the restless and entrepreneurial spirit), who bought, in a fair, a machine in that he found most interesting and installed it in the warehouse next to their home, in Esposende. Restless as a willow in a windstorm, Jorge didn’t rest until he managed to get the thread maker working. That was 32 years ago. The first 18 years went by smoothly, with nothing to point out. Lipaco sold sewing thread in the internal market, to a manufacturing industry that prospered without any concerns until, already in the 21st century, it was shaken by two violent cataclysms – China’s accession to the WTO and the sovereign debt crisis that

brought the Troika to Portugal. “Back then it was very clear to me that we had to search for alternatives, to modify our offer and to find new markets”, recalls Jorge Pereira, who had lunch with us during his hour-long break of exhibiting at Techtextil, choosing Coke over beer in order to stay well awake during the afternoon – and dispensing the usual coffee, as not disturb a good night’s sleep after an exhausting day at the fair. To go through the crisis that hit Lipaco early in its adulthood, he began purchasing thread making equipment (broadening his offer), grabbed his suitcase and went around the world, from trade fair to trade fair, discovering new destinations that would replace the perishing internal market – and to understand which type of products were in demand. “I learned that the way was to bet on exports, and on increasingly technical products”, sums up Lipaco’s CEO, who next month is completing an investment of 1.8 million euro to double the factory’s installed capacity.

Sustainability, the magic word for anybody looking to have a future in the textile industry, is on the top of Lipaco’s priorities, with a success that is made evident by the fact that Messe Frankfurt included the company in the exclusive board of honour (that features 41 companies out of 1.818 attending Techtextil) of good practises in the field. To depend less on others is another concern, which led Lipaco to invest on dyeing sections and laboratories. “We realized that, in order to reduce delivery times and to guarantee the quality of our products, we couldn’t resort to outsourcing”, he explains. Lipaco is on the right track. It exports 45% of its 2.6-million-euro sales, and 30% of its production is technical threads. Nevertheless, the short-term goals are to raise exports to 50% of the business volume and to grow the share of technical threads. “We’re interested in having more value-added products and fewer commodities”, sentences Jorge Pereira, an entrepreneur with a lot of ideas in his head. t

September 2019

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Main Office Oporto Travessa do Covêlo, 203 Salas 2 e 3 4200-243 Porto t. +351 225 089 532

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September 2019

BALLET ROSA ON TAOBAO TO QUINTUPLICATE SALES

OLD TRADING’S ECOLOGY SEDUCES BELLA BODIES Oldtrading’s commitment to ecological fibres was music to the ears of Australian Bella Bodies, who decided to develop with the company from Famalicão its new line of women’s intimate apparel, Bella Eco. Biodegradable polyamide and recycled elastane are some of the sustainable raw materials that the Famalicão company has been investing on, in a strategy directed towards more mature markets. “In Australia and the Nordic countries, clients are very sensitive to environmental issues and don’t mind paying an extra 5% or 10% for a more responsible solution”, discloses an Oldtrading representative.

7,2 billion

euros was the Portuguese Textile and Clothing Industry's turnover in 2018, of which more than 70% corresponded to exports (5.2 billion)

CONFEÇÕES LANÇA GROWS 30% AND INVESTS HALF A MILLION

In addition to the photo-op with the National Ballet of China, Ballet Rosa was selected to have an outlet at Alibaba's marketplace Taobao

To increase their sales fivefold in the Chinese market, in a four year time period, is the bar set by Ballet Rosa, a Guimarães-based company specialised in designing and manufacturing ballet garments. To reach that goal, the Portuguese brand is sparing no efforts on promotion. In addition to the photo-op with the National Ballet of China, it was selected to have an outlet at Taobao, an Alibaba marketplace for high-range products. Founded in 2010 by Luís Guimarães and Adão Coelho, Ballet Rosa exports 95% of its production, to a total of 23 countries. The United States (with a commercial base in Chicago) is their strongest market, yet China is already surging as the fourth most important destination for their ballet garments and accessories.

China, in particular, and the East in general (they are present in Japan, South Korea and Hong Kong), is the geography where Ballet Rosa is determined to grow. “The European taste is more conservative”, reveals Luís Guimarães, 50, of which 32 were dedicated to textiles. "Portugal could be a more important market for us. The problem is that historically and culturally the Portuguese consumer tends not to value what is manufactured in Portugal", adds Luís Guimarães. The Spanish Lucia Lacarra (director of Bayerisches Staatballet) and the Argentinian Marianela Nuñez (prima-ballerina of The Royal Ballet, London) are some of the top international ballerinas that use made in Portugal suits, designed and made by Ballet Rosa. t

CORDEX GROWS 12% AND REACHES 220 MILLION EURO TURNOVER The Cordex group continued its two-digit growth in 2018, presenting a 12% increase in consolidated sales, which translates into a 220 million euro turnover. “Despite being technologically very well equipped, we never stop investing. We like to be known for the quality of our products”, details Nuno Vitó, sales manager of the group. On average, Cordex invests between three to five million annually, and it’s studying an increase of installed capacity, to meet the growing demand. Based in Esmoriz, where the

factory that produces all the string and synthetic threads is located, the Cordex group also owns two other industrial units, one in Ovar (Flex 2000), and another in S. Salvador da Baía (Cordebras) that, essentially, produces sisal rope. The company, which describes itself in all modesty as a “small global company”, complements this industrial triad with a commercial network that spans onto North America (with offices in Philadelphia and Toronto), UK, France, Germany and the Ne-

therlands. The United States is their main market, weighing 75% of the group’s turnover in the agricultural segment, albeit demand has skyrocketed for fibres used in concrete reinforcement and monofilaments for geotextile fabrics. "Since the beginning of the century, we have been betting on partnerships with our customers, making products tailored to their specific needs, and we have been very successful", says the Sales Manager of the company, which employs 800 people, including 550 in the rope division.t

Life is looking up for Confecções Lança, which recorded a 30% growth in sales and is now estimating a turnover above seven million euro, until the end of the year – a prudent prediction, since in 2018 the figure was set at 6,3 million euro, more than 95% of which were exports. Men’s suits are the main product of this manufacturer from Covilhã, commanded by Paulo Ferreira and founded in 1973 by his parents, Maria e Firmino Gaudêncio, as a jeans factory, sold for the internal market under the brand Lança.

"We respond to samples requests in 48 hours and often in as little as eight days. The client enters our factory and walks out with the sample" José Manuel Vilas Boas Ferreira Valerius Group CEO

FARFETCH WILL HAN OUT CASH, BUT ONLY WHEN THEY WANT TO International expansion is the strategic priority of Farfetch, aiming to the Chinese and Middle Eastern markets, and for the moment it is not concerned with obtaining profit. “We have a great deal to grow, still", says José Neves. “We will be lucrative when we want to be lucrative. Right now we have registered a 50% growth, there aren’t a lot of companies – maybe one or two in the world – with 2 billion in sales, over 500 million in revenue expected for this year, growing 50% by the year”.

NO PLASTIC ON UNIFARDAS WAY TO SUSTAINABILITY A symbolical gesture was the way chosen by Unifardas to announce its path to environmental sustainability. Determined to become eco-friendly, the company from Maia specialized in workwear began by reducing the use of plastics within its ranks. With that in mind, it offered reusable water bottles to the entire crew and installed water fountains accessible to all, employees and customers.

September 2019

n INTERVIEW Paulo Augusto de Oliveira Born 55 years ago, he was raised in Covilhã, where he still lives. He’s the eldest of Maria Hermínia and Paulo Nina de Oliveira’s four children. Graduated in Corporate Management from the Universidade Católica, in 1986 he started working in the commercial department of the company founded by his grandfather José Paulo and that his father turned into one of the largest wool factories in Europe. Married with three children: Miguel, 24 years old, completing a master’s degree in Finance at Universidade Católica; Joana, 21, studying Architecture at Universidade de Lisboa; and Francisca, 16, who is “the joy in our home”

"WE WANT TO BE THE GREENEST WOOL MAKERS IN THE WORLD"

n 2018, the Paulo de Oliveira group recorded an 80-million-euro sales volume. Based in Covilhã with a commercial division in Biella (Italy), the group encompasses three industrial companies – Paulo de Oliveira, Penteadora and Tessimax –, with an industrial area of 130 thousand m2, where roughly 1.200 workers make 12 million metres of fabric each year. What was Paulo de Oliveira’s secret for surviving the hecatomb that took its toll on the overwhelming majority of wool making companies?

Dedication is the first word that comes to mind. It was that dedication that led us to never back down and never stop investing on keeping the company up-to-date. The will to always do better, of never conforming to what we have achieved, is the watermark that my father imprinted in this company. That was how you resisted the resulting crisis of China’s admission to the WTO...

It was a very tough period. Of our five largest clients, three vanished – they went to Asia. We understood that structural changes to our business model were required. In which sense?

We were middle range and produced tremendous volumes. We felt that, in order to stay competitive, we would have to change the type of product and diversify our client portfolio. Was the change painful?

In times of great turbulence, such as that, there is an enormous pressure to keep the structure working. On the commercial front, the main concern was to replace the clients that had left and to progressively reduce the quota of the ones we had no interest in, from a strategic point of view. Did you have a significant exposure to a reduced number of clients?

We have never been a single-client company. The largest one, which was Marks&Spencer, represented 20% of our sales. They were one of those who left...

PHOTO: RUI APOLINÁRIO

Was there ever panic, or just an alarm?

Paulo de Oliveira has always been a very solid company. In its 83 years of history it seldom presented negative results. All of our investments are financed by our own means. Were you ever caught off-guard?

Every year we run a strategic analysis and now, in retrospect, we see we did well in the essential points.

September 2019

The importance of doing your homework…

The predictions that came out of our strategic considerations were very bold. We were ready for the change, to invest in innovation and new products. What we sold back in 2005 pales in comparison to our sales nowadays... The change started in 2005, but the grand investment programme only began in 2013. In those eight years, were you measuring up the terrain?

In a context marked by the failure of Lehman, the sovereign debt crises, the intervention of Troika, the “announced death of textiles” and of internal transformations, we were conservative and invested less. Although, as a matter of fact, our shift started before 2005. Change is not only about purchasing new machines. In the past five years, you invested 20 million euro. What was the strategic direction intended with that investment?

Adapting the group to the new business model. The investment policy stood on three essential pillars – quality, flexibility and sustainability. However, we’re already redefining concepts. We invest in equipment that allows us to become more flexible, to produce smaller collections, to customize the product, to provide a better service and, most of all, to be more sustainable. When is the investment on solar panels due?

It’s a project split in several phases. At Paulo de Oliveira we’re on the fourth and last stage and soon we will be generating enough clean energy to become self-sufficient at the solar peak, thus reaching the legal limit for self-consumption. As we work 24 hours a day, this means that 1/3 of our energy will be photovoltaic. At Penteadora and Tessimax we’re replicating the process. The current stage will take a couple more months, and we will end up with 16 thousand solar panels. However, our effort in this domain isn’t limited to solar energy. We have improved immensely our energy efficiency and water savings. How do you save water?

All the water we consume is used twice. We collect it cold and firstly we use it in the cooling, and then reuse it in our producing line. Furthermore, we are programming an even more efficient reuse. We want to be able to say we’re the greenest wool makers in the world. Which is this year’s investment plan?

When it rains, one must drive carefully. The conjuncture, internal and external, associated with structural adjustments, recommends caution.

Even so, we intend to invest between one and two million euro on renovating the dyeing section and probably on the finishing section as well, in order to achieve a few of our new ideas. In 2018, you hired 120 people. What

led to this impressive 10% staff renovation?

Are you pleased with the geography of your exports?

It was imposed on us. The staff rotation in our company had always been low. People started working very young and kept that same job. What happened was, we had several people over 60 with 40 years of work that availed of the new legislation for early retirements. Now, the average age has dropped, but we lost excellent associates to whom we said farewell with sadness and gratitude.

Directly and indirectly we export over 95%. About 75% of our production goes to Europe, a matured market where growing doesn’t come easy. We have been improving our sales in Asia, our second largest market, representing 15% of our sales, which is where the biggest consumption growth lies as well. We are also going to work on improving our stance in America, North and South, where our presence is weak.

Was it owning to the fact that men’s suits were on the brink of extinction that you started a women’s collection?

After a three-year period in which it almost doubled, the price of wool has become more stable, at a level close to the historical record. Yet, production has been dropping, and demand has been led by China, which controls about 76% of the market.

The Women line is an alternative?

Does the alternative to reducing raw material entail using recycled wool fibres?

It’s more of a complement, just like the Informal collection that we presented a few years ago. We already sold women’s fabrics. Last year, we created a specific concept and the brand Pink, and we presented Pink’s first collection at the Première Vision in September. There are structural transformations to our way of dressing, and we adapt to them, with new mixtures, such as wool and linen, and more casual proposals like fabric for sports jackets or more modern suits. How do context costs affect your competitiveness?

Fiscal burden, training, energy, fees... although energy represents almost 20% of our transformation cost, it’s extremely important! I usually say that we are in the Champions League, because we compete among the best, but we play with lead shoes... We try to mitigate the impact of the energy price with solar and continuous investments on improving energetic efficiency. To be located in the country’s inland isn’t much of a help…

We bear the cost of distance, measured in gas, time and tolls. It makes no sense that tolls on the A23 are more expensive than on the A1. Public policies should fix asymmetries, but all the signs say otherwise. Public spending is directed towards subsidizing monthly bus tickets in Lisbon and Porto, and I don’t question the fairness of that. However, why not do the same with the tolls on the highways of inland Portugal? It would be a small step, but a step nevertheless. People aren’t dumb. They’re not heading to Lisbon or Porto because they want to – but because it pays off. There are no more delegations of anything, here. Everything’s concentrated in the coastland. People leave for the cities where life is better and where they subsidize public transport passes... This affect us.

the questions of Paulo Melo ATP's Director

Is the price of wool still rising?

The reports of the death of men’s suits were greatly exaggerated :-) There is a drop in consumption, but it’s still our main product, weighing-in at 60% of our sales at Paulo de Oliveira, and a little below when it comes to the entire company.

How do you fight the inland exodus? A year to consolidate the investments made over the past five years?

Last year, at Penteadora, we launched Re.born, a concept of recycled wool fabrics, made from the whole group’s waste. For now, it is still a relatively thick yarn. We also released fabrics made from recycled polyester, and we’ve many more news coming. How does the price of raw material impact the final price of the product?

In the future, natural fibres such as wool, will become premium and destined to increasingly exclusive market niches?

Wool is a natural, renewable, recyclable, carbon-friendly and easily biodegraded. It holds properties that make it special, its resilience enables a quick recovery of the original look, it has a natural elasticity, it’s breathable and absorbs humidity, making it a thermoregulating fibre, able to keep us warm when it’s cold and to keep us fresh when it’s hot. In practice, wool is already a niche product since it represents less than 2% of the global market of textile fibres, and dropping.

It’s a very heavy component that might even reach 40%. When the price of wool rises 30% in a year, reflecting it on the final price isn’t easy... Does the price still count?

The price counts in all things business. We don’t compete in price. However, our negotiating skills can’t take us past what the client is willing to pay :-)

José Robalo ANIL'S President

Has your average price been increasing?

Yes, for two reasons: the rising prices of raw material and the growing sophistication of our product lines. You usually say that looking back is nice, but the real challenge is to look straight ahead. How do you see the future?

The exponential growth of online sales is forcing a paradigm shift from top to bottom. Digital will demand objectivity, transparency, and immediate reviews, and this requires a deep revision, even in more peaceful topics such as the company’s work culture. We focus on investing in technology, yet paradoxically that is not our biggest challenge. How do you see the current conjuncture?

Since the end of last year that the general atmosphere has been negative. There is a big uncertainty that demands prudence. Surprisingly, Paulo de Oliveira’s grew in the first semester at a rate of 7%, contrary to our competitors and our estimations, which means either we were well-prepared or we were wrong – at least for the time being... t

What is the future of our Textile and clothing industry?

We have to adapt to sudden changes and that means paying attention and being more flexible. The textile industry managed to consolidate skills in areas like innovation and sustainability, that boosted its competitiveness, but there is room for improvement. For example, change requires agility: if the demand isn’t stable then it’s vital for structures to be elastic. I wonder: if this is a determining factor, are public policies aligned with this goal of greater flexibility? I wonder still: if we want a stronger industry, isn’t it basic to debate the context costs, such as energy, fiscal burden, abusive fees or training deficiencies?

September 2019

FAIRS

airs schedule

SHOWUP September 1 and 2 – Amsterdam Laboratório D’Estórias, Little Nothing by Paula Castro, Vicara MUNICH FABRIC START From September 3 to 5 – Munich A.Sampaio & Filhos, Albano Morgado, BW Fashion, Crafil fios e Linhas Têxteis, Carvema Têxtil Fashion Details, Irmãos M. Marques, J. Areal - Artigos Têxteis, José de Abreu & Filhos, La Estampa, Lurdes Sampaio, M.M.R.A., Magma Têxtil, Modelmalhas - Indústria de Malhas, Paulo de Oliveira, Penteadora, RDD – Textiles, Riopele, Sanmartin - Sociedade Têxtil, Satinskin Têxteis, Sidónios Malhas, Somelos Tecidos, Tessimax Lanificio, Tintex Textiles, Trimalhas Munich Fabric Start Sourcing António Manuel de Sousa, Gulbena, Orfama, Top Trends, Valérius CPM From September 3 to 6 – Moscow Blackspider, Cristina Barros, Litel MAISON & OBJECT From September 6 to 10 – Paris Amanda Dias, 3DCork, Burel Factory, Carapau Portuguese Products, Devilla, Jinja, Laboratório d’Estórias, Maria Portugal Terracota, Patrícia Lobo, Sugo Cork Rugs, Têxteis Iris, Vicara

LOTS OF AWARDS AT TECHTEXTIL, IN FRANKFURT

By winning three of the seven iTechSyle Awards in competition at Techtextil – the world's largest trade fair for technical textiles – the Portuguese textile and clothing industry has shown to be at the top of the world in terms of innovation. The Penedo/Sedacor consortium won in the New Material category with cork-a-tex, a thread made with cork waste. The Picasso eco-dyeing process, developed by Tintex and CITEVE, was also distinguished in Frankfurt. The international jury awarded the New Application category prize to the E-caption protective coat developed by UBI– Universidade da Beira Interior. t

LMA IS THE BEST FRIEND OF BEDRIDDEN CONVALESCENTS

WHO’S NEXT From September 6 to 9 – Paris Blackspider, Concreto, Faroma / Paul Brial, Flor da Moda, Givec, Gonçalo Peixoto, Lion Of Porches, Luis Buchinho, Monarte, Mr Mood, My Shirt, Nycole INTERGIFT From September 11 to 15 – Madrid Dilina, Dolcecasa, DKT Representações, Planitoi, Rio Sul, Texteis Evaristo Sampaio, Texteis Iris MOMAD From September 12 to 14 – Madrid Blackspider, Carlos Alberto Nicolau Marcos, Cotton Brothers, Concreto, DuneBleue, Faroma, Givec, Kitess, Lion Of Porches, Marita Moreno, Milagrus, Pé de Chumbo, Scusi HOMI MILANO From September 13 to 16 – Milan Little Nothing by Paula Castro, Sorema / Graccioza, Texteis Iris COTERIE From September 15 to 17 – New York Blackspider by Cristina Barros, Cristina Barros, Kleed Kimonos, Luizas & Co PREMIÈRE VISION From September 17 to 19 – Paris Fabrics: A Sampaio & Filhos, Acatel, Adalberto Estampados, Albano Morgado, Avelana – Fabrica de Malhas, Burel Factory, Familitex, Gierlings Velpor, Joaps – Malhas, Lemar, LMA, Luis Azevedo & FilhosLurdes Sampaio, NGS Malhas, Otojal, Paulo de Oliveira, Penteadora, RDD, Riopele, Satinskin, Sidónios Knitwear, Somelos Tecidos, Tessimax Lanifício, Texser - Têxtil Serzedelo Tintex, TMG Textiles, Trimalhas, Troficolor Denim Makers, Forum From Portugal Yarns: Fivitex by SMBM, JFA, MAF/Filasa Accessories: Idepa, Solinhas Manufacturing – Knitwear: Malhas Carjor, Montagut Industries – Orfama Manufacturing – Proximity: Faria da Costa, Lima & Companhia, R.Lobo, Raith, Siena - Comércio Internaciona, Soeiro, Temasa, Triwool, WAT KIND + JUGEND From September 19 to 22 – Cologne FS confecções / FS Baby, Bluemedley / Blue Kids, Pinkwave

Manuel Barros, LMA's Executive Director, explaining to the Portuguese State Secretary for Economics, João Neves, all the cover's properties

A mattress cover that is simultaneously breathable, thermoregulating and waterproof was LMA’s big hit at Techtextil. Thermic is the name of the mattress cover, developed in partnership with an English laboratory, after a challenge set to LMA by a Nordic medicinal bed supplier. “The cover ensures both a strong air circulation, which is essential for the comfort of bedridden people, and a high degree of impermeability which protects the mattress from incontinence, which, initially, were mutually exclusive factors. It also has thermal regulation. Some engineering is required to join these three factors at the same level”, describes Manuel Barros, LMA’s CEO. Despite the outstanding reception that

Thermic is getting, Manuel Barros confesses a desire to add new functions, such as healing properties, antibacterial or mite resistant. Another innovative product presented by LMA in Frankfurt was the mobile phone radiation protector, developed by request of a Nordic company that challenged the Portuguese company to create a fabric that would oppose the effects of carrying a phone in the trousers’ pocket, which reduces male fertility up to 40%. “We developed a fabric with a barrier against radiation, a protection that reaches 95% of the electromagnetic spectrum, which can be used not only in the pockets of trousers but also on jackets, for those wearing a pacemaker”, demonstrates Manuel Barros. t

September 2019

ASSOCIAÇÃO NACIONAL DOS INDUSTRIAIS DE LANIFÍCIOS

September 2019

SIT’S SUIT HEATS THE BODY AND DISPELS HUMIDITY The Sports Suit that promises to be the delight of the fans of snow and outdoor sports. Made by Seamless Industrial Technologies, the suit is able to maintain the body’s temperature and to keep away humidity, even under extreme conditions. The prize of “Best Product”, awarded to the Sports Suit at the iTechStyle Awards 2018, was just the launch pad for even higher flights. The technological suit of former Sonicarla, now known as Seamless Industrial Technologies or SIT, is starting its first steps in the market and is a promising ally for every lover of snow and outdoor sports. Through the combination of three fibres: viscose, wool and coolmax polyester, the Sports Suit is able to maintain a steady body temperature while dispelling humidity, keeping the athlete dry and protected from the cold during the practise of extreme sports, under the harshest situations. Light

and breathable, the fabric acts as a second skin and also boosts the performance. “The idea came from a necessity that spotted in the market, especially in the ski practise”, explain Rui Castelar, marketing and commercial director of SIT. Back then, still in 2016, the verticality of the company proved to be a competitive advantage. “The fact that we’re a vertical company, ranging from conception to the final product, taught us which yarn and manufacturing techniques to use in the development of this suit.” The technical and sports clothing is a strategic segment for SIT, which made innovation one of its main competitive arguments. Working with seamless technology since 2002, when they still went by the name of Sonicarla, the Famalicão-based company that employs 150 people wants to keep innovating. “Since 2016 that we’ve been partnering with CITEVE, CeNTI and Universidade do Minho, and currently we have two new projects, aimed at the area of performance and sustainability”, says the marketing and commercial director of SIT. t

SAK GATHERS FUNDS TO CONQUER THE UNITED STATES SAK is completing an operation to raise capital with its investors, in order to gain the financial muscle needed to set-up shops in the U.S.A., whereas the strategic plan for the company’s great leap forward is already in the making by two North American universities. “The US is the ideal market for the next step of our international expansion, not only due to their sensitivity on the issue of sports injuries, but also because football as a practise is growing, namely women and children”, declares Filipe Simões, founder and CEO of SAK. The jump to the United States by this start-up based in Viseu, whose specialty is the production of high-quality custom shin guards, requires a capital raise in the order of the two or three million euro, an operation that has been successful so far, inasmuch as the initial investors have already shown themselves willing to reinforce their commitment, in a clear demonstration of trust. SAK – Safety Against Kic-

MARTIN BERASATEGUI PROMOTES PROCHEF GROWTH IN SPAIN Prochef, the company that specializes in personalized kitchen garments, is now supplying the uniforms for the restaurant of Chef Martín Berasategui, the Lasarte-Oria, adding yet another famous name to its already extensive list of clients. José Avillez, Henrique Sá Pessoa and Vítor Matos are a part of that list.

LIPACO WILL SAVE 35% ON WATER AND 75% ON THE ENERGY BILL Lipaco concluded a 1.8-million-euro investment on increasing the company’s installed capacity, I&D, sustainability and process automation, which is predicted to double its sales (2.6 million euro in 2018) in four years. This investment will also achieve water savings of around 35%. Regarding sustainability and good environmental practises – field for which the company received an award in the last Techtextil –, Lipaco intends to raise its solar power production capacity, in order to meet 75% of its energy requirements through this renewable source.

3,2 million

euro was how much Sampedro invested in 2018, not only in equipment but also in industrial and administrative software

INEGY DEVELOPS CARBON THREAD TEXTILES Textiles that combine carbon thread with thermoplastic thread, and that incorporate sensory threads in textile structures are the innovative goals under development by INEGI - Institute of Science and Innovation in Mechanical and Industrial Engineering, in the context of TexBoost from Cluster Têxtil, encompassing 43 partners. “We hope the use of this new material, in the form of a homogeneous thread, will reduce the risk of defects in the final product, thus reducing production costs”, explains Marta Martins, responsible for the project.

"The brands have already realized that it is not a fashion issue: if they are not in the sustainability market, they are out of the future" Filipe Simões, SAK's founder and CEO tells all about his plans to Paulo Melo, ATP's president

king – developed a unique process, already patented in the United States (and submitted in the European Union, where it is patent pending), of shin guard production, custom-made and personalised, with materials that dissipates the energy of impact, and which is both lighter and more flexible than the traditional shin pads. “Despite standing as the only protective gear that footballers use in the field, shin

guards have been neglected for decades. This subject has been disregarded until we arrived on the market”, comments the CEO of SAK. Portugal, Spain, France, Italy and the United Kingdom are the markets where SAK is present, supplying the national teams of Portugal and France, as well as several clubs (FC Porto, Fiorentina, Atalanta, Wolverhampton, amongst others) and individual footballers. t

Albertino Oliveira Sedacor’s commercial and marketing director

MONUMENTAL PALACE CHOOSE LAMEIRINHO PREMIUM The guests of the Monumental Palace, in Porto, are sleeping in 100% cotton satin sheets made by Lameirinho, alongside the robes and towels for the shower, spa or indoor pool. The luxurious hotel, inaugurated this year in Porto, is joined by other exclusive hotels around the world, like the Parisian Plaza Athenee or the chain establishments of Anantara, InterContinental, Porto Bay, Marriot, Tivoli or Douro Azul, who also use the premium line of home-textile products from Guimarães.

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September 2019

CMY

Rua do Cruzeiro, 170 R/C | 4620-404 Nespereira - Lousada - PORTUGAL | T. 255 815 384 / 385 | F. 255 815 386 | E. geral@qualityimpact.pt

September 2019

X MY PRODUCT by António Gonçalves

E-Caption 2.0 - Smart and Safe Coat

Developed by the Universidade da Beira Interior, Instituto de Telecomunicações de Aveiro and Instituto Superior de Engenharia de Lisboa, in cooperation with Borgstena Responsible team: Caroline Loss, Daniel Belo, Pedro Pinho and Rita Salvado

What is it? A smart personal protection jacket for the maintenance crew of telecommunication antennas What is it for? To protect the technicians from harmful radiation, warning the user in case of high levels of radiation Project Status? Currently under testing and with patent pending

INNOVATIVE VEST BY PAFIL HEATS UP BMW It’s one of the most innovative products in BMW’s line of clothing and it’s completely manufactured in Portugal. Specialist in smart clothing, Pafil Confecções has developed a motorcycling vest for the German brand, with a brand-new electronic heating system. The vest incorporates a system made of five heating plates, laid out across the chest, back and lumbar areas, which is regulated by the driver, who is able to adjust the temperature at any moment.

"In textiles, we can never rest. never take anything for granted" Mário Jorge Machado Adalberto Estampados CEO

MEHLER BRACES ITSELF TO SUPPLY U.S. DEFENSE INDUSTRY Mehler has laid out an investment project that will enable its factory located in Virginia (U.S.A.), to supply the aerospace and Defence industries of the country. The final decision will be made this month, according to Alberto Tavares, CEO of the company, the Engineering products division of the German group KAP. If the expansion of Mehler’s North American factory gets the green light, it shall manufacture technical equipment for aerial vigilance, military tents, fireproof vests or even tank treads.

FOOT BY FOOT SETS EYES ON THE AUTO INDUSTRY

A lightning rod jacket that saves lives It’s yet another proof of the happy marriage between technical textiles and electronics. Developed having in mind the risks that base antenna technicians face, the E-Caption 2.0 coat is a unique safety equipment, which monitors and protects its users from the effect of radiation. It became one of the main protagonists at Techtextil, when it swooped the Innovation Award in the New Application category, but the creators wish to take this technological jacket even further. “As a matter of fact, it works as a protective shield for the user, reflecting radiation and informing when it exceeds safe levels”, describes Caroline Loss, the Universidade da Beira Interior (UBI) researcher responsible for the development of the project. The technology was first developed in 2014, when Caroline was finishing her PhD in Textile Engineering. On a previous initiative, entitled Proenergy, UBI had already developed a wireless sensor network formed by nodes with energy scavenging capabilities, applied to textiles. However, a product that implemented the idea was lacking. Therefore, came the E-Caption coat. In its first version, 1.0, the equipment still carried an unpractical integrated rigid plate. “After making that first version, as a prototype, the next step was industrialization, a jacket with a real life use”, explains Caroline. For the version 2.0, the one that was presented and awarded at Techtextil, the project

counted with the collaboration of Borgstena, a factory that specializes in textiles for the auto industry. “We simultaneously created a smart jacket and a protective equipment”, claims the researcher. In order to achieve this, two different fabrics were used: a small polyamide rectangle coated in copper, which is the antenna, and a special knit with two different sides: on the outside 100% polyester, which makes it look like a regular jacket, and on the inside 100% silver, which gives the fabric its conducting capabilities. “It’s this internal layer that reflects the radiation off the jacket – even absorbing a part of it – preventing it from coming into contact with the body”, explains Caroline Loss. Aside from insulating the user from radiation, the jacket also has an LED that emits a luminous warning if the levels of radiation become too high. This makes life far easier for technicians, who no longer need to carry measuring equipment. After the laboratory tests and the presentation at Techtextil, the E-Caption 2.0 coat is currently under testing and has a patent pending. Meanwhile, ideas have come up for a 3.0 version. “The fashion area, with a more commercial concept. The same system – that lights up an LED – could also be used to absorb the surrounding energy of small devices, such as an iPod or a smartwatch”, predicts Caroline Loss. t

While throwing its weight towards the auto industry and kicking off exports to the US, Foot by Foot is set on becoming more vertical by investing in weaving. “Nowadays we buy the thread, subcontract the knitting or weaving, and then internally we work the fabrics, providing them with the coating or making the lamination and selling by the piece”, discloses António Oliveira Pereira, administrator of Foot by Foot, specialized on textile structures.

1,5 million

euros is the budget of the investment that Somelos will complete in 2019, which includes the renovation of the company finishes area and machinery park

SAIL TO THE DOURO ON CITEVE’S 30TH

A visit to the Douro's wine cellars was the destination chosen by CITEVE to celebrate 30 years of existence. The whole team – around 130 people – embarked early in the morning towards the town of Régua in a cruise, and just before lunch (served aboard) the mood was great. This is the way, very youthful, team oriented, dynamic, creative and irreverent, that CITEVE has presented itself over the course of these three decades and established itself as an avant-garde reference in textile and clothing innovation.

September 2019

M BREAKING THROUGH Carla Lobo R. Lobo Manager Family Married to a mechanical engineer (met at college), they have two children, Leonor, 16, who likes Biology, and Clara, 12 Education Graduated in Public Administration (U. Minho), Master in Management Accounting and is a specialist in Accounting and Auditing Home Apartment near the city park, in Guimarães Car BMW 350 van Laptop Asus (“I rarely use it”) Cell phone iPhone 6 Hobbies “The basic: having fun with the family, having dinner out with friends” Holidays Last year they went to Aix-en-Provence, in the south of France Golden rule “To always have a plan B (and when I don’t, I get angry…)”

PHOTO: RUI APOLINÁRIO

The manager of time always has a plan B It was an idea stuck in her head since she was a child – to become the manager of a company. “I’ve never thought of myself doing anything else”, confesses Carla Lobo, 44, 23 in the textile business, an adventure entirely lived at R. Lobo, the Guimarães-based company that specializes in circular jerseys, which her father, the former commercial director of a factory in Felgueiras, founded in 1991. She did not need to deviate much from the path previously set. Just a few adjustments, in response to the unforeseeable situations that come plentiful in life, but of never too big an importance for her, a prepared woman, usually equipped with a plan B – and it would not be out of character to have a plan C, just in case. As her entry to FEP – Economy School of Universidade do Porto – failed by just a few decimal points (at the end of a path that went through the schools João Meira, Martins Sarmento and Francisco de Holanda), she activated her plan B and studied Public Administration at Universidade do Minho. She was 23 when, at the end of her degree, she received her first paycheck, as an auxiliary teacher in the Management Accounting course, and initiated an academic career – which passed by Católica before finally landing at the Instituto Politécnico do Cávado do Ave –, interrupted last year while she was already Assistant Teacher. “It was too much – the classes, my daughters, the factory...” she explains. But at first, when textiles were less demanding, and she did not have in her hands all the responsibilities of the company, Carla managed multitasking, in a staggering end of the century when besides teaching, she made her debut as an intern at R. Lobo, started a family and still found the time to complete her Masters and progress in her academic career. “I’m very efficient at managing time. And very focused in all that is quantitative and economical – ratios and numbers”, says the manager, staring at herself in the mirror. It was not spoken, but written in invisible ink, implied between father and daughter (the only one, for that matter) that sooner or later she would achieve at R. Lobo her dream of becoming the manager of the company. It was inevitable. “I don’t regret a thing. With all things considered, you just adjust the plan”, she recalls. “I started – very patiently since working with your father is never easy :) – to learn the several areas of business. First the purchases, then the commercial part, and finally the financial area, which is what lures me the most. I’ve adapted well, I like what I do”, she guarantees. 1996 was the year she started her internship at R. Lobo. Focusing on the numbers, as she does, it is not hard to realize that she has been working in textiles for 23 years, or in other words, more than half of her life. “I’ve learned a lot: but I still have a whole lot more to learn”, she cautions. 2003 was the year that, for health reasons, her father had to step down – and she suddenly had to adjust to this bump in life and undertake the leadership of a small company that was gearing up to face the storm triggered by China’s admission to the WTO. The investment on exports and the constant rise in the value chain were the guns that she used to stay afloat. In 1998, R. Lobo exported 40% of its business volume. Ten years after, in 2008, that percentage had gone up to 70%. This year it stands well above 90%. “To focus on exports was the right decision. We have reinforced the commercial team, and we are now attending the big international trade fairs, looking for new customers. We would no longer be here if it weren’t for that decision”, mentions Carla, adding that the Textile and Clothing Industry has changed a lot in the past 22 years: “If the sector hadn’t evolved the way it did, we would have no more textile companies over here. We would have been swept away”. “When I started, our work was incomparably less demanding. There was time to produce. Now it’s very stressful. We need to be much more focused. There’s no room for mistakes, and if the clients feel that we are no longer trustworthy, they will leave”, concludes Carla Lobo, a manager that insists on running her time efficiently – because she knows that time is the only capital of the people whose fortune is their intelligence. t

September 2019

X MY COMPANY Trifitrofa

Rua Teófilo Braga, 115 Gandra, S.Martinho do Bougado 4786-909 Trofa

Who is it? “The biggest warehouse of dyed yarn in the world” Stock 2.500 tons of yarn Covered area 10 thousand square metres Clients Over 500 customers Certifications GOTS, Oeko-Tex and BCi Workers 28 Turnover 30 million euro

TEXLA PORTUGAL HAS NEW ABILITIES Swedish-owned Texla will invest, once again, in its Portuguese factory, endowing it with new abilities that will allow the production of engraved laminated fabrics for the auto industry – namely for car seats. With headquarters in Gothenburg, Texla holds its Portuguese unit in high regard, which doubled its business volume from nine to 18 million euro in the last two years. This boom in sales is the outcome of a series of investments that increased the number of workers from 16 to 50 and the covered area of its facilities from 2000 m² to 3200 m².

"North coastal Portugal is currently the largest textile region in Europe" Carla Lobo R. Lobo's Administrator

HR GROUP CENTRES PRODUCTION AND UPGRADES TECHNOLOGY The HR Group will concentrate its whole operation – currently scattered in two building (HR Industry and HR Protection) in the Salgueiro Industrial Park, Mangualde – in a new factory that should be finished early this autumn. Amongst equipment and construction, the total investment is estimated at three million euro. The factory is equipped to reuse rainwater, and 120 solar panels will generate electric energy, making the factory nearly self-sufficient from an energetic standpoint.

Trifitrofa has everything you can imagine The possibility of making samples from one day to the next (or even on the same day), which is one of the greatest competitive edges of our Textile and Clothing Industry, exists thanks to Trifitrofa. “We provide a service to the textile industry. I believe everyone that uses dyed yarn is our customer”, explains Jaime Azevedo, 44, son of the Jaime Azevedo, who, at the age of 75, is still in charge of the financial department of the company that he founded in 1982. As the name suggests, Trifitrofa was created by three partners (JaimeAzevedo father, Gabriel Silva, andAlfredo Azevedo, who left the business in the meantime) – Tri –, sells yarn (fios, in Portuguese) – fi – and it’s based in Trofa. The company was born in a small space (50 m2), dedicated to recover and reuse yarn waste, which was cleaned, finished, packaged and sold to knitters and sock manufacturers. Today, it owns a 10 thousand m2 space and holds a yarn stock appraised in ten million euro, which is one of the secret weapons of the success of the Portuguese textile industry. Curiously, the great leap forward for Trifitrofa is connected to an event that usually carries a negative connotation – the young Jaime Azevedo, who so far had been a good student with a special knack for drawing, dropped out of school instead of applying for a Fine Arts degree (perhaps frightened with how early the train that was supposed to take him from Trofa to his classes in Porto left the station...) “I’ll give you one week to think it over”, replied Jaime father when Jaime son announced he did not want to study any more. Since he did not change his mind

in seven days (a decision he does not regret), the young Jaime began to work in the company, cleaning the small warehouse, and learning a trade that he would later transform with an unexpected Midas touch. “When I started taking the yarn to customers, I realized that what the market really needed was a proper customer service. If, from one moment to another, they needed a bag of royal blue, they had nowhere to turn”, explains the CEO of Trifitrofa. The first steps of this great leap were made during the turn of the century, at the 2-bedroom flat where Jaime and Ângela (married since the year 2000) lived and made, by hand, the first poster with 20 colours stapled to it. Nowadays Trifitrofa has a department that makes hundreds of catalogues every month, with a palette of over 200 colours – and different blends. The results of this strategy came soon enough. Sales doubled every year (from three to six, from six to 12 million...), and the magazine Exame acknowledged Trifitrofa as the best textile SMB. Partnerships are the other secret of this success. “We have a partnership with dye shops, to which we guarantee a certain volume of work. We don’t meddle with the industry part, and they don’t meddle with the commercial part. We also have partnerships with suppliers of raw yarn, from Pakistan, India or Turkey. They give me the exclusive for Europe and I give them the comfort of production”, shares Jaime Azevedo, the entrepreneur that has the gift of guessing the clients’ need – and the pride that all the added value of the yarn that they sell is made in Portugal. t

MCS INVESTS THREE MILLION ON FACTORY AND WATER SAVING MCS Muns Py will invest three million euro on building a new factory in Valongo, which will enable reusing up to 90% of the 100 thousand litres of water consumed by its dyeing section per day. “We will optimize processes and reduce costs, whilst preparing to become more competitive”, reveals Vítor Castro, CEO and founder of MCS. With 84 workers, MCS Muns Py has in the auto industry its main customer, which absorbs about 35% of the annual sales, over five million euro. VW, Volvo, Daimler, Renault and BMW are the final customers of their accessories.

33 millions

euros was Impetus' turnover in 2018, a growth of more than 15% when compared to 2017

PENEDO’S PILLOW BED MADE SOME HEADS TURN The cork-a-tex awarded thread stole the show at Penedo’s stand at Techtextil, but two other products also made some heads turn: the Pillow2Bed and Photofabric. Pillow2Bed is a pillow that turns into a couch, solving the domestic emergency of having a friend sleeping over. Photofabric is a process of printing in fabric that is the delight of architects and designers, and is poised to completely replace wallpaper soon. “It’s more resistant and durable than wallpaper and we can work from a picture resolution as low as 300 dpi”, explains the CEO of Penedo.

September 2019

OPINION REVIEWING THE MANDATE Paulo Melo ATP's Former President

THE FASHION INDUSTRY IS DWINDLING Paulo Vaz ATP General Director and T's Editor

I have had the highest honour and responsibility of presiding over ATP’s board over the last three years. The elections at the end of July initiated a new cycle in the life of this institution, that we all wish to be strong and more dynamic in the future, benefiting all the companies represented by it. It is also time to review the mandate that now ends and that, without a doubt, I consider very positive. The sector has grown in business volume, employment, investment and exports, completing a long period of expansion, which brought back to its full strength the Portuguese textile and clothing industry, providing a promising future for which we are all working. We have shown society that traditional industries can modernize and conquer markets on a global scale, differentiated by value, innovation, creativity and service intensity. It was a central pledge during this mandate to recover the sector’s image, which hasn’t always been under due consideration by the governing bodies, the media or even society in general. A difficulty that was overcome by the international promotion of the “Made in Portugal” as a label of quality and prestige. In addition, the sector became attractive for young talents, looking to regenerate the corporate fabric with new and more qualified professionals, and with new entrepreneurs, in several domains, including in the industry’s support services. It is with an enormous satisfaction that I state, unequivocally, that our central pledge was delivered and all the goals fully accomplished: the

The signs that the global fashion market has sent, in the final trimester of last year and that have been intensifying during the first months of 2019, compel us to make a deep reflection about what is happening, but most of all, what may be yet to come. The brands are confronted with stagnation in consumption. Stores accumulate stocks and seem to be off-sync with the seasons, resorting to promotions and anticipating the sales period, compromising the business margins. Something is changing in the fashion business and, in a broader sense, there is no straightforward explanation for it. The brands themselves, in particular those with a global reach and that implemented “fast fashion” business models, seem to be drifting in this mutation process, although they have the notion that they are threatened and that changes are in order, not only to conti-

sector is nowadays acknowledged as a role model, in the country and abroad; a true case study of the success of a traditional activity that kept modern and even avant-garde, validated by ATP’s membership on the most important representative organizations, both European and worldwide. Even though we face difficulties in attracting labour, something that is transversal to all industries in Portugal, it is with great satisfaction that I see new companies being led by well-prepared young people with broad horizons. The arrival of new generations to the leadership of traditional companies, with decades of existence, ensures their continuity. The return en masse of students to the textile engineering and fashion design degrees is another encouraging signal. This means the future is being prepared and it is underway. In conclusion, one must say that, despite every effort, it is yet to come the day when the long-awaited dream of creating a single representative association for the sector, as it was consecrated in this mandate’s programme as well as in the previous ones. However, I am certain that the mandate that follows and those after will never stop pursuing, persistently and tenaciously, until we reach it, for we know only united, thinking strategically and speaking as a single voice, can we amplify the sector’s influence, recognition and results. It’s with this message of accomplished duty, in the passing of testimony, that I encourage all those that will undertake the following mandate, wishing them all the best for the challenges they will face, and that I am confident will surpass most successfully.

nue growing, but merely to survive. There is something structural in all of this, and it must be faced. The Portuguese textile and clothing industry is already being affected by the phenomenon, and it must keep up with change and make the most of it. It is important to remember that we came late to globalization and to the opening of international markets, underestimating the impact that China would have on the fashion business worldwide. Many Portuguese companies paid the price for that distraction or inability to react and adapt. Today something similar is happening. The fashion industry will shrink, especially in the developed markets to which Portugal sells. The younger generations, more sensitive and committed to sustainability and social responsibility, will give priority to the broad use of clothing items, its reuse and recycling, undermining the foundations of

what is today the driver of the fashion industry, the so-called fast fashion. We are beginning a period of deceleration of fast cycles, production and consumption, a slowing down that will have everlasting impact in the productive systems created to serve models that are no longer sustainable. The fashion industry is slowing down and it shall continue to do so. We do not know what will happen next, but we do know that, in ten or fifteen years, none of the companies that reached success by creating disposable fashion will be relevant in the world that is upon us. The Portuguese textile and clothing industry elected “fast fashion” as their reason of survival and development over the past decade, but it will have to shape itself for the world where “slow fashion”, digitalization, technology, circularity and sustainability are the reigning principles. Firstly, one needs to be aware of it and then work for it.

Ana Roncha Head of the Strategic Fashion Marketing Masters Degree at the London College of Fashion

THE SYSTEMIC CHANGES IN THE FASHION INDUSTRY The fashion industry is guided, nowadays, by an openness to new markets and segments and, most of all, by the existence of ecosystems that spawn new ways to manage, to create value and to dialogue. Globally we are witnessing a growingly competitive universe, with new players surfacing every day and where power is given to a ‘new consumer’ with very particular traits, different from the previous generations. The big game-changer of the times we live in is, perhaps, the notion that this consumer is, above all, an entity that generates value for the companies it interacts with. The big drivers of this change are based upon three key factors: behavioural changes, growing technological innovation and social changes. These changes gave way to disruptive business models, and “future proof” most of all – ready for new contexts and realities. In regard to the behavioural changes, we can highlight growing expectations as well as a deepening interaction in the various processes, from conception to brand advertisement and preferred products. We live a culture of immediacy, where the consumer is more impatient, which implies that brands work with shorter timings (be it design, production or distribution). If, in 1995, the average consumer considered waiting roughly nine days for the delivery of an Amazon product, in 2018 that time has been brought down to a measly 24 hours. These soaring expectations of quality and service speed are transmitted down to every sector and segment of business. This impatience is also manifested in the novelty and anticipation culture, rooted in new ways of distributing and communicating – case of the “drop” culture, ranging from street wear to luxury brands. The growing rate of technological innovations and the adoption of disruptive tools have been changing the fashion industry dynamics. It’s necessary to understand the changes that these technologies bring forth, and what they enable us to achieve. Technology opens countless possibilities to customize the shopping experience and accelerates the ability to provide a more personalized service and communication. Within social changes, we can include aspects related to environmental concerns, such as social responsibility and sustainability, the increasingly unstable political situation worldwide, and also issues connected with human resources and new ways of working. However, the most prominent factors are the ethical concerns and sustainability. The growing transparency is a decisive factor in this change. In an industry that always insisted on being secretive, it is refreshing to see brands advertising the margins reflected in the final price, as well as publishing information about its suppliers. Ethics and sustainability are an essential part of the new consumer mindset. The respect for the people and the planet is as important as the brand’s aesthetics. We need innovative and groundbreaking solutions and business models that focus not only on financial sustainability, but also for a social purpose. The brands that carry the most potential are the ones that aren’t afraid to innovate, to become disruptive, to question. That is, those who adopt new skills in order to be ready for a new era of consumption where transparency is king. t

September 2019

Rui Abreu Kortex's Co-founder and General Manager

HOW CAN WE MAKE THE PORTUGUESE TEXTILE SEXIER? We were headed to the end of the 2019 edition of the iTechStyle Summit, and I was enjoying that last insights into the trends that join fashion and technology, weaved by Robin Caudwell from the Fédération de la Haute Couture et de la Mode, when a question from the audience, together with an outlandish response, brought me to think about the Portuguese textile sector. When questioned about why had the project Levi’s Commuter X Jacquard By Google, a smart jacket with multiple functions, not succeeded astoundingly as many expected, his answer was basically that Google engineers aren’t designers. They’re very good, everything worked, but simply put, they weren’t able to make the jacket sexy enough. As an engineer, I felt taunted. These connections between the worlds of technology and textile are not always peaceful. Some blood must flow, as usual, but in the case of wearables I had always thought the joint efforts of two giants from each world would make a spark. However, it didn’t... And the ones blamed were the hardware and software guys. Allow me to apologize for the class since there is one thing I know: the Google guys learn fast. They will come back strong, and they will succeed, you can be sure of that. I ask myself if the Portuguese textile sector will be agile and visionary enough to market itself to the world in a sexier way. I recognize plenty of qualities pointed in the specialty forums. Still, it’s missing that je ne sais quoi. Well, by joining transparency, innovation and storytelling, that absolutely irresistible touch comes to life. Transparency - Consumers, especially Millennials, have become more concerned about health and well-being. They demand more information and responsibility from the brands. Governments have answered with tighter regulations, forcing the disclosure of more information about products and suppliers. Managing the transparency of the supply chain becomes, therefore, fundamental. Innovation - There is an old saying that goes “Don't be afraid to take a big step if one is indicated. You can't cross a chasm in two small jumps”. Well, I see several respectable organizations, with vast experience, hesitate on this matter, taking little steps, somewhat dispersed and erratic. I’m tempted to say that these hesitations will come at a high price. Storytelling - It’s known that people nourish a special care for what or whom they believe or defend. We acknowledge, in some Portuguese companies, the genuine interest respecting the resources. Others, however, still approach Sustainability and Circular Economy in a superficial and shallow way. At Kortex, we believe that technology will have a primordial role in the reputation of a sector that shouldn’t be afraid of being on the catwalk. Transparency, innovation and communication are key elements of a masterpiece we’ve been painstakingly warping, and that deserves to be appreciated and touched by the world. t

September 2019

MY RESTAURANTS

LOVE ME, LOVE ME NOT

by: Manuel Serrão

Copo a Copo Praça do Município, 7 4700-435 Braga

STEP BY STEP

Step by step, that’s how life is done. In a restaurant, things are no different. At ‘Copo a Copo’ they work for their success. Step by step, tapa by tapa, dish by dish, while we watch the wine disappear from the bottle, glass by glass, in a triumphant tasting that can only end well. This is a house of famous people in Braga, who never rest on their laurels – after all, they come from the textile industry. It started as a curious and promising partnership between Nuno Cunha e Silva –from the textile company NGS – his daughter Filipa, her boyfriend, and chef Ricardo, who Braga already knew, though certainly not the way they know him these days. I made my debut at ‘Copo a Copo’ with family and friends, which made it possible for me to taste almost the entire menu, which I highly recommend. Gather a group and clear the day – no rush and no schedules. Book a table, though, because they’re always on short demand. Once there, surrender to the chef. I must say that, amongst the more than ten things I have tasted, there was not a single one that I would not like to try again, and there were many surprises, both for the eye and the palate. ‘Copo a Copo’ is a restaurant like no other in Braga. It is not about being better, but about being different. Perhaps ‘Copo a Copo’ has drunk its inspiration from the post-crisis Textile and Clothing Industry, which also made its journey step by step, making differentiation the path towards competitiveness!

Susana Costa, 46 years old, is the marketing director of Lectra Portugal, where she has been working for 21 years. Born in Porto, she traded the Invicta city for the coastline of Aguda, but the traffic jams pushed her back North. Now she is living in Maia, very close to the Porto’s airport and 10 minutes away from work. Graduated in Marketing Management from IPAM, she is married with three children – Márcia, 17; Tiago, 9; and Alexandre, 7 –, has a dog (Happy) and a cat (Crazy) who live up to their names. In her free time she likes the sun, music and barbecue parties with her friends

Likes

Dislikes

Looking out for my own Honesty Accessories Douro DOC red wine Spicy gizzards Soul, jazz & blues To be offered flowers “Love Actually” Shopping malls Black Long Sunday dinners Cheese Coffee Terraces Poached eggs Persimmons Port Wine Jeans and heels Celebrations Talking to the wee-hours Make amends Ovos moles, chocolate mousse and whipped cream Walking hand in hand Cycling to the bakery Olives and bread in olive oil Corn Churros Gardens Babies WhatsApp Expression wrinkles Crème brûlée Tight hugs Chicken broth soup and caldo verde Caipirinha Second chances Tanned skin Smell of Nivea Kimonos

Two-faced people Mince words Cowards Games Earphones and tampons Injustices Cold feet Cold wind Moustaches Rain and wind Going to sleep angry Sulking Ostentation Hours in the hairdresser Traffic Gym Petty politics Disagreements Diminutives Cheap talk Snails Crumbs on the floor Insects Losing control Insecurity Gossip Brussels sprout False modesty Folding socks Chopping onion and garlic Slow Wi-Fi Passwords Sensationalism Beetroot Tattoos High seas Whistles Speed Destructive criticism Failing Make-up Sweeping things “under the rug” Smell of mould Excesses

September 2019

AUDITS DENOTE RIOPELE’S EXCELLENCE Since the beginning of this year, Riopele has been carrying out a series of audits aimed at evaluating the social, environmental and ethical performance of the company, having received the top score of ten points, in ten possible, awarded by an independent organization. At the same time, the APCER audit analysing the systems of quality, environmental, work health and safety management concluded that Riopele also complies with every one of those segments.

31%

was the growth of JF Almeida's yarn sales in 2018, a business segment worth 12% (6.5 million) of the group's overall turnover

SONIX INVESTS 2 MILLION IN FACTORY EXPANSION

JACKET BY SCOOP AT MS WORLD EXPLORER

Prime-minister António Costa was the occasion model for the presentation of the innovative Musgo jacket, by Scoop, that will be part of the MS World Explorer equipment, the new vessel of Douro Azul, for cruises on ice waters. Besides being “sealed”, which means that it’s waterproof and also a thermal insulator, the jacket that will be given to all passengers incorporates technologies that allow it to light up, monitor its location constantly and even has an alarm button. The Musgo jacket will also be able to open the doors of the cabins, deeming any keys or the usual cards irrelevant. t

MEXICO AND CHINA ON ERT’S ROUTE Mexico and China are the destinations that the ERT group is charting for its course. The final decision over these investments depends on the outcome of negotiations to establish strategic partnerships with local companies. The ERT group has factories that supply the auto industry in the Czech Republic, Romania, Portugal and Morocco – the most recent destination, where the Tangier unit (inaugurated last September) has Lear, Faurecia and Antolin as direct customers and the French PSA and Renault as final customers. “Negotiationg with Mexico are more ad-

vanced than the ones with China”, shares Fernando Merino, innovation director of the ERT group, which employs 1100 people and presented a turnover of 120 million euro in 2018. With an exclusively European industrial base (Morocco is included as Europe for all intended purposes), the investment on factories in China and Mexico would be a great leap forward for the group from São João da Madeira, which would turn it into a global player, spread throughout the three major continents – Europe, America and Asia– where the biggest car makers are. t

Sonix is completing an investment of two million euro, which will endow its factory with an added three thousand square metres of covered area. The cutting section will be moved to the new area. Sonix represents over 45% of the 60-million-euro turnover of the DiasTêxtil/Sonix group, counting approximately 500 workers in their ranks, both in Portugal and Tunisia.

"The economic growth that will come from the growing automation and digitalization will bring about the creation of new jobs" Isabel Furtado TMG Automotive’s CEO e COTEC Portugal president

TÊXTIL ANTÓNIO FALCÃO WANTS TO SELL 15 MILLION IN 2019 Têxtil António Falcão is expecting to reach the end of this year registering 15 million euro in sales, with the hike in sales of coated yarn and the relaunch of its own brand, Maggiolly. With over 50 years of experience, acknowledged as one of the main producers of socks and tights, as well as of polyester and polyamide yarn, the company from Barcelos presented a sales volume of 13 million euro in 2018.

PORTUGUESES OLYMPIC ATHLETES WEAR DECENIO

CORK-A-TEX FACTORY IS ABOUT TO TAKE OFF The cork-a-tex thread, awarded at Techtextil 2019, will begin industrial production this fall, and the new enterprise, whose ownership is shared by Penedo and Sedacor, is expected to present a turnover in the order of two million euro by 2020. “The outcome of this project has exceeded our expecta-

tions. The award increased the demand even more. We have been contacted by all the big global brands in sports as well as the most prestige fashion labels”, confides Xavier Leite, CEO of Têxteis Penedo. Equipped with machines purposefully made for the production of cork thread

and built by Portuguese metalworking companies, the Cork-a-Tex factory, located in Guimarães, will manufacture the cork thread, whereas the following phase will be divided by several companies – JF Almeida will do the weaving for terrycloth and Penedo for jacquard fabrics.t

Decenio is Portugal’s Olympic Committee official partner for the 2020 Tokyo Olympics. The Portuguese brand was picked for its sustainable vision, an ever-growing concern of the Olympic mind-set. The clothing line includes navy-blue trousers, a white hoodie with a red and green interior, a t-shirt and a white polo shirt with a Christ Cross pattern. White trainers with navy-blue details and a small Portugal flag complete the look.