European textile makers urge a €10 handling fee on fashion imports. The call seeks stronger EU action against ultra‑cheap products, especially from China.

Euratex, the federation representing European textile and clothing associations, said the proposed fee would provide customs authorities with additional resources to identify unsafe and non-compliant goods entering the EU market.

The proposal follows the EU’s introduction of a €3 duty on low-value parcels entering the bloc in July. France has also introduced a levy on ultra-fast-fashion products, with the charge expected to eventually reach nearly €20 per garment.

Euratex President Mario Jorge Machado welcomed the EU’s new charge but said additional measures were needed to protect European textile and apparel manufacturers.

The federation also called on authorities to close potential loopholes involving bulk shipments and products routed through warehouses within the EU.

According to Euratex, stronger controls and additional fees are necessary to ensure a level playing field for Europe’s textile and apparel industry, which comprises around 200,000 companies and employs 1.3 million people.

The call comes amid increasing scrutiny of Chinese ultra-fast-fashion platforms such as Shein, as European authorities tighten controls on low-value imports.

Shein recorded an average monthly European user base of around 156 million in 2025, compared with 193 million for AliExpress and around 180 million for Amazon, according to the figures cited in the report.

China has warned that the new import fees could lead to retaliatory measures, adding to tensions over trade and the regulation of low-cost e-commerce shipments.

European textile manufacturers stress the need for stronger customs enforcement and measures against ultra‑cheap imports. They argue this is vital to protect local producers, ensure consumer safety, and uphold EU standards.

Textile engineer and business strategist Ismail Hossain Tushar has joined The Woolmark Company as Business Development and Technical Representative for Bangladesh.

The Woolmark Company operates as a global authority on wool and functions as a subsidiary of Australian Wool Innovation. It drives research, technical development, and quality assurance for Australian Merino wool across international supply chains. The organization connects woolgrowers, apparel manufacturers, and global fashion brands through quality certification, technical education, and supply chain optimization.

Ismail Hossain Tushar brings more than 13 years of experience across the textile value chain to his new position. He holds a degree in Textile Engineering from Ahsanullah University of Science and Technology (AUST). He also earned an MBA from BRAC University and a Postgraduate Diploma in Textile Management from the Bangladesh University of Textiles (BUTEX). His professional background includes commercial and technical positions at Shore to Shore, Groz-Beckert, Dysin Group, and Sieger Spintech.

In his new role, Tushar focuses on connecting Bangladesh's manufacturing base with global wool supply chains. His work centers on providing technical support to local factories, facilitating knowledge transfer, and assisting manufacturers in developing wool and wool-blend products for export markets.

As Bangladesh pushes toward its 10,000 MW solar target, one question keeps coming up: should the country keep importing panels, or build the capacity to manufacture them at home? Few companies are better placed to answer that than Omera Solar, a brand under East Coast Group that has been manufacturing solar panels domestically since 2010 — scaling from small 50-watt modules to 635-watt panels produced on a fully robotic line today. In this conversation with Textile Today, Masudur Rahim, CEO of Omera Solar, makes the case for why local manufacturing isn't just a policy talking point but a genuine business advantage — cutting import lead times, ensuring real after-sales service, saving on foreign currency, and opening the door to a much larger investment opportunity in the sector.

Textile Today: Could you tell us about Omera Solar's journey and where it fits within East Coast Group?

Masudur Rahim: Omera Solar is a brand of East Coast Group, and our renewable energy contribution is essentially divided into two parts. One is Omera Renewable Energy Limited, which is an EPC company. The other is our manufacturing concern, Radiant Alliance Limited, which has been manufacturing solar panels since 2010.

When we started, we were assembling solar panels in Bangladesh in the range of 50-watt peak to 300-watt peak. Fast forward to 2025, and we are now manufacturing solar panels up to 635-watt peak at our own plant. That's a significant jump in both scale and technology over the years.

Textile Today: How has your manufacturing process evolved, and what certifications support your panels?

Masudur Rahim: Our manufacturing process is now a fully robotic system. The idea is to produce certified panels that we can confidently put into the market — both locally and internationally. To support that, we've set up labs, and we export to the USA and Abu Dhabi. For the US market, US certification is mandatory. For Europe and other countries, CE certification, IEC certifications, and ISO are required, and we have all of these for our panels.

On top of that, our panels are BSTI certified, tested, and enlisted, which means they are net metering compliant here in Bangladesh. So, whether it's international export requirements or local regulatory compliance, we've built our certification process to cover both.

Textile Today: There has been considerable discussion around Bangladesh's 10,000 MW solar target. How do you view that opportunity?

Masudur Rahim: The government's plan to install 10,000 megawatts of solar capacity covers both ground-mounted and rooftop solar. Our renewable energy sector also has a target tied to the 2030 SDG goals. But to meet those goals purely through solar installation, we run into a practical constraint — many facilities simply don't have sufficient rooftop space available.

That means the sector will need to move toward ground-mounted solar as well. If a factory or building has solar, it gets a competitive advantage on pricing. And when you look at the full picture — building owners, factory owners, importers, traders, EPC companies — everyone is part of this supply ecosystem. If we can rightly address the challenges each of these players in the ecosystem is facing, then I'd say even a target as large as 100,000 megawatts could be achieved fairly easily.

Textile Today: You have spoken about the benefits of local manufacturing. Could you elaborate on that?

Masudur Rahim: First, if we can source domestically, there's a foreign currency saving — we're not spending forex on imports. Second, import lead time comes down significantly. Third, and this is important, after-sales service becomes something, you can actually ensure. When you import panels from a company abroad, and a few panels get damaged or need replacement, it's simply not practical to send those panels back and forth. That's where local manufacturing offers a real after-sales advantage — the local market gets that support directly.

There's also the pricing angle. The more local manufacturers there are, the more competitive the pricing becomes. And when you import, you have to hold inventory — which means warehousing expenses, inventory management, bank charges, and the interest expense tied up in that fund as a financial cost. If you source locally, you can procure on an as-and-when-required basis from the market or directly from the manufacturer. That's a real cost-saving opportunity.

Textile Today: From an investment standpoint, why do you consider this sector attractive at present?

Masudur Rahim: Solar requirements are only going to grow going forward. Consider this — a system implemented five years ago may need to be replaced in the next five years because of higher efficiency panels or modifications in panel technology. It means the market has to meet current demand plus future or upcoming replacement demand. That opens the door for more manufacturing concerns to set up in Bangladesh.

There's also a policy advantage already in place. Duty exemption on capital machinery already exists. And for raw materials that need to be imported — silicon, glass, frame, junction box, EVA sheets — the government has already waived duty on these. Given all that, I honestly don't see any remaining barrier to manufacturing here, at least on the government project side.

On the private project side, if there's an inclusion requirement for locally manufactured solar panels — something that would need to come from government policy — manufacturing in this sector would grow even further, and it would become even more attractive to investors.

Textile Today: Finally, warranty is a matter of considerable importance to buyers. Could you explain Omera Solar's approach to it?

Masudur Rahim: There are two types of warranty in solar panels — product warranty and efficiency warranty.

For panels manufactured in our country, we offer a 12-year product warranty. If there's any mechanical fault, or any kind of fault affecting generation, we provide a replacement warranty within 48 hours.

Our efficiency warranty runs for 30 years. In practice, that means about 1% degradation in the first year, and then a smaller, incremental percentage of degradation each year after that. These are the same terms and conditions that other panels are offered internationally — we're matching that standard.

The real advantage, though, is that we're a local company. That warranty isn't just something written on paper — it's something the customer actually receives in practice when they need it. That's what we're focused on delivering.

Bangladesh’s garment industry has long maintained a competitive edge by leveraging high production volumes, competitive pricing, and robust manufacturing capacity. However, the global market is evolving. Energy and wage costs are rising, buyer expectations are shifting, and the importance of product diversification, speed, design, and value addition is growing.

In this context, mere high-volume production is no longer sufficient; there is a need for superior products, rapid development, and the capacity to generate greater value.

The story of Auko-Tex Group exemplifies this transformation. Since its inception in 2009, the company has evolved from a standard apparel manufacturer into a capability-driven organization that integrates design, product development, R&D, and global market intelligence.

Currently, the group boasts an annual turnover of approximately $60 million. This success is underpinned by a clear strategy: balancing basic products with value-added offerings, diversifying the product range, and proactively addressing future market demands.

Anticipating future demands

Engr. Abdus Sobhan, Managing Director of Auko-Tex group, believes that the future of the business should not be confined to meeting current demands alone. Instead, the company must anticipate which products and markets will grow in the future and invest in building the necessary capabilities ahead of time.

He said, "We have always believed in thinking 'out of the box.' It is not enough to rely solely on a demand-based approach; we must strategically consider products that will see rising global demand well in advance."

As part of this vision, Auko-Tex group established its own design studio in 2009. The objective was to build internal design capabilities and add value to products, rather than simply replicating designs provided by buyers.

From design studio to business engine

Auko-Tex maintains a design team of approximately 14 members, comprising personnel from both Bangladesh and the UK. To streamline operations, the team is divided into Men’s, Women’s, and Kids’ segments, supported by 2D and 3D design capabilities.

According to Safiul Alam Rasel, the Design Team Leader, the design department is no longer merely a creative function; a crucial part of business growth.

Safiul Alam Rasel said, “Our design department plays a significant role in driving business growth. We are building strong collaborations with buyers through constant video conferencing, regular correspondence, and seasonal meetings.”

This direct communication allows for an understanding of market requirements right at the start of product development. Simultaneously, buyers visit Auko-Tex’s facilities, while the design team travels to European markets to work on seasonal developments and sample programs.

Rapid product showcasing via 3D technology

Time and cost are both critical factors in product development. Consequently, Auko-Tex utilizes virtual product presentations and 3D technology. Virtual samples created using 3D software are presented to buyers before any physical samples are produced. This facilitates rapid feedback and makes the development process more efficient.

Additionally, the design team regularly visits European markets, ensuring that physical collaboration is maintained alongside virtual communication. This hybrid approach brings Auko-Tex’s design process closer to the buyer.

From sketch to market-ready product

According to Monzurul Hasan Tanim, another Design Team Leader at Auko-Tex, product development is an integrated process. Upon receiving a buyer's inspiration or sketch, the internal design team reviews it first. Subsequently, the fabric development, R&D, wash, styling, embroidery, and stitching teams collaborate on the project.

Monzurul Hasan Tanim said, “A product yields the best results when we can effectively sell it to the market. The merchandiser understands the buyer's demands, the R&D team is aware of new market techniques, and the designer grasps the buyer's core brand DNA.”

This coordination is a key strength of Auko-Tex’s product development model. A product cannot simply look good; it must align with the buyer's DNA, market demands, and commercial viability.

Value addition beyond the basics

Auko-Tex is currently focusing heavily on high-SMV and value-added products. Beyond styling, fashion, and detailing, multiple techniques are being incorporated into a single garment. The complexity and perceived value of products are being enhanced through techniques such as hand-stitching, sequin work, special prints, pigment prints, and the use of diverse fabrics.

This represents a crucial direction for Bangladesh's apparel industry, as rising energy and wage costs make it increasingly difficult to remain competitive solely by producing high volumes at low prices. In this context, value-added products can create a new competitive advantage.

Market intelligence from London

Auko-Tex’s UK hub is further strengthening the Group’s design, development and sourcing strategy. Md. Hossain serves as Head of Department of the Design & Development Department at Auko-Tex’s London office, where he has been working for the past four and a half years. The London operation functions through Equi-Tex Sourcing (UK) Ltd., a sister concern of Auko-Tex Group.

Being based in a global fashion hub like London enables the direct observation of fashion trends, consumer preferences, and market movements.

Md. Hossain said, “I can easily pick up on what is happening in the London market and what is changing rapidly. Understanding customer preferences firsthand is crucial for our product development.”

Observations ranging from major fashion brands on Oxford Street to consumer behavior are relayed to the design team in Bangladesh as market intelligence. Consequently, the UK office serves not merely as a sourcing or business hub but also as a center for trend and design intelligence for Auko-Tex.

Investing in youth

Investing in young talent has been crucial to building this design capability. Engr. Abdus Sobhan believes it is time to move beyond the model where Bangladesh simply copies foreign fashion trends.

To this end, initiatives have been taken to recruit young fashion designers, send them to fashion fairs, provide opportunities to work with international designers and buyers, and familiarize them with the global fashion environment.

As a result, these designers have not only learned the craft of design but have also gained practical experience in market analysis, understanding "fashion DNA," and seasonal product development.

On the path to becoming a global brand

Auko-Tex’s ambitions now extend far beyond the confines of manufacturing. By establishing offices in the UK and Japan, the company is striving for more direct engagement with the global market.

"We have taken steps to create a global brand. We are establishing offices in Japan and the UK. Our goal is to create a brand of our own."— Engr. Abdus Sobhan

This is an ambitious move for a Bangladeshi manufacturer. Transitioning from private-label manufacturing to building its own brand entails more than just production; it involves acquiring new capabilities such as brand identity, consumer insight, design language, marketing, and brand retention.

Textile companies are facing a compliance landscape that is changing faster than traditional reference guides can keep up with. New rules now cover not only chemicals and labor, but also environmental claims, product information, due diligence, waste and circularity.

MCL News & Media has released the 10th edition of its Textile Standards & Legislation guide to help the industry navigate this growing complexity. The 128-page edition brings together more than 80 textile-related standards and legislative frameworks.

The bigger development is its digital counterpart. The accompanying platform provides continuously updated information as standards, regulations, and policy requirements change. It also links users to primary sources for further research.

This matters because compliance is becoming a moving target for global supply chains. A textile product can face different requirements depending on its material, manufacturing process, claims, and destination market.

The guide covers voluntary certification systems alongside mandatory regulations. Its scope includes environmental, social and product-related requirements across raw materials, intermediate products, and finished goods. It also tracks regulatory developments in major markets, including the European Union, the United States and China.

For apparel exporters, this creates a practical challenge. Compliance teams must increasingly monitor several requirements at once, rather than treating sustainability, chemicals, product information, and traceability as separate issues.

This is particularly relevant as European regulation moves deeper into product-level requirements. Rules linked to sustainability claims, product information, circularity, and chemical management are creating additional data and documentation needs across supply chains.

Karl Mayer has developed a range of three-dimensional warp-knitted fabrics featuring ruffled stripes, crepe effects and transparent grounds on its HKS 4-M EL ECO machine

3D designs with a wow factor made on HKS 4-M EL ECO: When crepe, ruffles, and sheer fabrics redefine fashion

Seersucker, flip-flap items, Fırfır, or crepe materials: structured fabrics have long been more than just a passing trend. They lend timeless looks depth, dynamism, and an exciting tactile dimension. Whether classic striped patterns or modern solid-color interpretations, these versatile pieces pair perfectly with casual and business-casual outfits and effortlessly create a modern look.

KARL MAYER’s textile product development team demonstrates just how exciting it can be to rethink structure with a collection of innovative Advanced Bubble fabrics. With their original and striking 3D effects, these extraordinary fabrics are sure to turn heads and transform even simple silhouettes into true statement pieces.

A defining feature is the vertical ruffled stripes that seem to float above a delicate, transparent background. The unique look is created by the sophisticated interplay of different structures: an airy, lightweight ground with a subtle ribbed texture sets the stage for textile stripes in a trendy crinkled look, which appear on the surface like artfully appliquéd ribbons. The result is an exciting interplay of transparency, texture, and movement.

These trendy outerwear fabrics can be produced on an HKS 4-M EL ECO. The ground bars GB 3 and GB 4 create separate wide and narrow fabric strips using a special yarn threading and targeted lappings – GB 3 pillar stitch and GB 4 inlay lap under three needles. GB 2 connects these segments using a zigzag pattern created with a polyamide-elastane corespun yarn.

In this process, part of the narrow fabric strip is folded over to the loop head side, creating the characteristic ruffle effect. GB 1 decorates the wide fabric strip with flexible designs. This ground bar uses the same yarn as GB 2 to create three-dimensional effects and the same thread count to minimize warping efforts.

A particular highlight was the presentation of these innovative bubble fabrics at ITM 2026 in Istanbul. There, the HKS 4-M EL ECO impressively demonstrated how creative crepe-on-crepe effects and transparent lightness can be combined to achieve fabrics with genuine runway potential.

Lenzing Group, a global leader in regenerated cellulosic fibers, is strengthening its integrated production process with a new debarking and chipping line at its pulp mill in Lenzing, Austria.

The new line replaces the existing wood processing system and is designed to improve operational efficiency, ensure consistent output and strengthen the reliability of production operations.

As the first stage of the production process, efficient debarking plays a key role in maintaining consistent quality throughout pulp and fiber production. High-quality wood chips provide the foundation for producing high-quality pulp and fibers while supporting the efficient use of wood as a renewable raw material.

According to Lenzing, the investment will help establish a stable and efficient production process from the initial stage of wood processing.

The new debarking and chipping line strengthens the company’s integrated production system. It ensures reliable use of renewable wood resources in pulp and fiber manufacturing.

The government has withdrawn the zero‑duty import facility for 10–30 count cotton yarn under the bonded warehouse system. The move aims to protect local textile and spinning mills.

Garment manufacturers may now import these yarn counts against a bank guarantee instead of enjoying zero duty. The National Board of Revenue (NBR) issued the gazette notification on September 7.

The decision has been welcomed by textile millers, who say it will strengthen the domestic spinning sector and reduce the leakage of bonded yarn into the local market. However, garment exporters have urged the government to reconsider the move, warning that higher yarn costs could undermine Bangladesh’s competitiveness in the global apparel market.

Industry insiders said nearly 80% of Bangladesh’s annual yarn consumption falls within the 10-30 count range, with demand concentrated mainly in knitwear fabric production. Local spinners currently have the capacity to supply more than 90% of the yarn required by the export-oriented knitwear sector.

Textile millers have long complained that low-priced imported yarn, along with yarn entering through informal channels from neighboring countries, has weakened the domestic textile industry.

According to millers, local spinners supplied fabrics worth around $13 billion to the domestic market four to five years ago. The figure has since declined to about $9 billion, while around $4 billion worth of fabrics imported under bonded facilities is now being sold in the local market.

In a statement, the Bangladesh Textile Mills Association (BTMA) said the decision would help local mills utilize their production capacity more effectively as demand for domestic yarn rises. It said the move could encourage new investment, support mills in repaying bank loans and save foreign currency.

Also, greater use of locally produced yarn would help raise the value-addition rate to around 60% in the post-LDC graduation period, while offering garment exporters shorter lead times.

BTMA President Showkat Aziz Russell has previously said yarn imports from India through Chattogram port doubled to around Tk 30,000 crore in FY2026 from Tk 14,000 crore a year earlier.

Garment exporters, however, have raised concerns over the new policy.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) wrote to the commerce minister on September 7, seeking revision of the decision.

They also proposed a meeting among the three trade bodies to reach a consensus on the issue.

The exporters said the decision had not been discussed at the first coordination meeting of the textile and garment sector held on August 20 as part of the government’s initiative to address challenges facing the industry.

They warned that removing the bond facility for yarn imports could increase production costs for export-oriented garment manufacturers and weaken their competitiveness in the international market.

Mohammad Abdur Razzaque, Chairman, Research and Policy Integration for Development (RAPID), said the potential impact on garment exporters should be carefully considered.

He suggested that the decision should not be made permanent and could instead be reviewed after a specified period based on its impact on both the textile and apparel sectors.

The latest decision comes amid a series of measures aimed at restricting yarn imports, particularly from India, to support Bangladesh’s domestic textile and spinning industry.

In March 2025, the commerce ministry asked the NBR to take measures to restrict yarn imports through land ports. The NBR subsequently restricted yarn imports from India through land ports, allowing such imports only through Chattogram port.

The move followed India’s decision in early April 2025 to suspend a transshipment facility that Bangladesh had used to send garments to third countries through Indian airports.

The latest policy has therefore brought renewed debate over how Bangladesh can balance the interests of its primary textile sector with the cost and competitiveness concerns of export-oriented garment manufacturers.

Zalando is adding recycled cotton made from textile waste to its latest T-shirt collections. The move shows that recycled fibers are moving closer to mainstream fashion production.

The European fashion retailer has partnered with Netherlands-based recycling company RE&UP Recycling Technologies. The companies are using RE&UP’s Next-Gen Cotton in five T-shirts under Zalando’s YOURTURN and Even&Odd labels.

The T-shirts are made with 80% organic cotton and 20% RE&UP Next-Gen Cotton. The recycled fiber comes from used textiles and is made for use in new textile products.

This is an important step for textile-to-textile recycling. The industry has been developing technologies that can turn old clothes into new fibers.

RE&UP says its technology can process cotton, polyester and polycotton textile waste. The company also aims to make its recycled fibers suitable for existing textile production systems. This can make adoption easier for manufacturers.

The development also comes as brands face growing pressure to reduce textile waste and increase recycled content. Europe’s circularity rules are expected to further increase demand for recycled textile materials in the coming years.

For textile manufacturers, the Zalando collection is a signal to watch the recycled fiber market closely. Demand will depend not only on sustainability claims but also on fiber quality, supply, traceability and cost.

The bigger opportunity is to build a stronger textile-to-textile supply chain. More commercial orders can help connect textile collectors, recyclers, spinners, fabric makers and brands.

Key insights:

• ESPR turns unsold apparel from an inventory problem into a traceability and circularity challenge
• Bangladesh’s EU apparel exports fell 16.43% as lower volumes and prices increased competitive pressure
• European online clothing returns average 20%, increasing pressure on brands to manage products beyond the first sale
• Bangladesh’s import framework makes access to some post-consumer textile feedstock difficult for recyclers
• Nearly 600,000 tons of annual textile waste creates a major domestic opportunity for circular fiber production

The European Union’s push to stop the destruction of unsold apparel is changing how fashion companies manage products after production. The focus is rapidly shifting from simply manufacturing garments to tracking their materials, reuse, and end-of-life pathways.

Effective July 19, 2026, the Ecodesign for Sustainable Products Regulation (ESPR) prohibits large EU companies from destroying unsold apparel, clothing accessories, and footwear, with specific exemptions. Medium-sized companies will face the same mandate starting in 2030. The European Commission estimates that 4% to 9% of textile products placed on the European market are destroyed before use, equaling 264,000 to 594,000 tons annually.

These regulations immediately ripple through global supply chains. Bangladesh already faces a tougher market environment in the EU, where export values are falling. In this landscape, traceability is becoming a core operational requirement rather than a secondary sustainability goal. Digital Product Passport (DPP) systems now connect critical product data across fiber, yarn, fabric, and garment production.

Post-sale supply chains face equal pressure. The European Environment Agency estimates that one in five garments bought online in Europe is returned. Between 22% and 43% of returned clothing is ultimately destroyed, with an average of about one-third. The new EU framework prioritizes resale, reuse, repair, and recycling over disposal. Factory responsibility for Bangladeshi manufacturers now extends far beyond shipment.

Bangladesh is taking initial steps to address this shift. On August 17, Bangladesh and the Netherlands signed a memorandum of understanding to strengthen cooperation in the circular economy. The agreement covers resource efficiency, waste reduction, recycling, and sustainable production across the textile value chain.

However, one major bottleneck remains access to textile waste. Bangladesh’s import framework restricts the import of waste and regulates the import of old or used clothing. The Import Policy Order 2021–24 lists “all kinds of waste” as prohibited unless otherwise specified, while separate government notices regulate old-clothing imports. This creates a policy challenge for recyclers that need consistent access to post-consumer textile feedstock.

Addressing this restriction is vital because Bangladesh already possesses significant domestic potential. The country generates approximately 600,000 tons of textile waste annually, primarily garment production scrap known as jhut. A UN assessment highlighted this waste stream as a key driver for import substitution and product diversification. Effective collection, sorting, and processing would allow Bangladesh to retain material value locally instead of down cycling scrap into low-value products.

EU circularity rules challenge Bangladesh at a delicate juncture, but the transition also offers a competitive edge. Connecting DPP-ready traceability with domestic jhut collection, textile-to-textile recycling, and streamlined customs procedures can turn compliance costs into industrial advantage. Bangladesh must now determine whether it can convert waste and traceability into strategic assets before they become mandatory conditions for market entry.

Read more:

https://www.textiletoday.com.bd/eu-introduces-new-rules-for-unsold-clothing-and-footwear

https://www.textiletoday.com.bd/eu-ppwr-implications-for-bangladeshs-rmg-exporters

https://www.textiletoday.com.bd/recycling-europe-urges-eu-textile-labeling-reform-to-support-circularity

https://www.textiletoday.com.bd/gfa-and-rehubs-launch-2030-blueprint-to-scale-eu-textile-recycling

https://www.textiletoday.com.bd/new-eu-packaging-rules-put-pfas-recycling-and-packaging-waste-in-focus

Two Gold Awards and a Jury’s Special Award recognize progress in ESG strategy, Women’s leadership and Workforce development

 When SQ Group began its journey in 1993, ESG was not yet part of the vocabulary of Bangladesh’s apparel industry. More than three decades later, both the business and the industry around it have been transformed.

Today, SQ Group is the Bangladesh manufacturing arm of Singapore-headquartered Q Collection, with operations spanning knitwear through SQ Celsius, lingerie and activewear through SQ Birichina, and vertically integrated capabilities through SQ Hues.

That evolution was recognized at Bangladesh’s inaugural ESG Excellence Awards, where SQ Group received three honors across three distinct areas: Two Gold Awards as Sector Leader - for ESG Strategy & Policy Implementation and Gender Equity & Women Leadership Advancement - and the Jury’s Special Award for Skills Development & Workforce Upskilling.

The breadth of the recognition matters. Global customers increasingly expect their manufacturing partners to deliver not only price, quality, and speed, but also stronger environmental performance, responsible workplaces, greater transparency, and a workforce equipped for a more technology-driven industry. SQ Group’s three awards touch each of these priorities.

ESG beyond compliance

The Gold Award for Excellence in ESG Strategy & Policy Implementation recognised the Group’s work to strengthen ESG governance and implement its Environmental and Social Management System across its operations, alongside investments in energy efficiency and renewable energy.

The objective is to make ESG part of how factories are run and investment decisions are made - not an exercise that begins when reporting is due.

For SQ Group, responsible manufacturing and competitive manufacturing increasingly must mean the same thing.

Creating the next generation of women leaders

The second Gold Award, for Excellence in Gender Equity & Women Leadership Advancement, recognized an issue particularly relevant to Bangladesh’s apparel industry.

Women have been fundamental to the industry’s success but remain underrepresented in supervisory and management positions.

SQ Group’s Female Supervisor Program focuses on that gap - identifying women with potential and creating pathways for them to move from factory-floor roles into supervision and leadership.

The ambition is simple: not only more women in manufacturing, but more women leading manufacturing.

Skills for what comes next

SQ Group’s third recognition - the Jury’s Special Award - Outstanding Story for Excellence in Skills Development & Workforce Upskilling - looks towards the changing nature of manufacturing itself.

Automation, digitalization, data, and AI are changing factories. SQ Group believes its people must develop at the same pace.

Its Integrated Digital Academy, an in-house digital learning platform, provides structured technical, digital and leadership development across the organization.

New technology can be bought. The capability to use it well must be built. That makes workforce development not simply a social investment, but a competitive one.

 From SQ Group to Q Collection

Behind the three awards is a larger evolution.

SQ Group has spent more than three decades building manufacturing capability in Bangladesh. Today, that foundation sits within Q Collection, a Singapore-headquartered global apparel platform bringing manufacturing together with design, innovation, technology, and sustainability.

The ambition is not to leave SQ Group’s manufacturing heritage behind, but to build on it.

Bangladesh has already established itself as one of the world’s leading apparel manufacturing centres. Its next competitive advantage will increasingly come from how it manufactures - the technology it adopts, the resources it consumes, the people it develops and the value it creates beyond production capacity.

For SQ Group and Q Collection, the three awards are recognition of progress in precisely those areas.

Key global recycled fiber market projections

• Global production: Reached 132 million tons in 2024, with recycled fiber holding a 7.6% market share.
• Textile-to-Textile bottleneck: Less than 1% of global fiber comes from recycled textiles, as 98% of recycled polyester relies on plastic bottles.
• China market growth: Projected to grow from $3.32 billion to $5.87 billion by 2030.
• United States market growth: Projected to grow from $2.41 billion to $4.13 billion by 2030.
• India waste recovery: Recovers over 95% of its 7.07 million tons of annual pre-consumer textile waste, targeting a $3.5 billion market by 2030.

The global recycled fiber market is moving into a strategic phase. Brands are increasing recycled-content sourcing, governments are tightening circularity rules, and textile manufacturers are investing in recycling capacity. However, the demand for recycled fiber is soaring, while the supply of high-quality textile waste remains severely limited.

According to the Materials Market Report by Textile Exchange, global fiber production reached a record high of 132 million tons in 2024. Recycled fibers accounted for only 7.6% of overall output. Recycled polyester remained the dominant recycled material, making up roughly 6.9% of the total fiber market.

About 98% of recycled polyester was still sourced from plastic bottles. Recent 2026 data from Textile Exchange emphasizes that breaking this bottleneck requires shifting away from open-loop bottle recycling toward localized, renewable-powered textile-to-textile processing.

Market drivers across key regions

China sits at the center of this market shift. Research from Grand View Research estimates the recycled polyester market in China at $3.32 billion, projecting it to reach $5.87 billion by 2030. Chinese mills supply recycled yarn and fiber to apparel supply chains worldwide. The country maintains the necessary industrial infrastructure to collect, process, and convert high volumes of polyester feedstock at a commercial scale.

Meanwhile, the United States is emerging as a primary demand driver. According to Grand View Research, the US recycled polyester market stood at $2.41 billion and is projected to reach $4.13 billion by 2030. Apparel accounts for over half of this market segment. Corporate procurement is the main catalyst, as major US retailers commit to long-term recycled material contracts. Mandatory circularity frameworks and Extended Producer Responsibility regulations in Western markets are turning recycled fiber from a voluntary goal into a commercial requirement.

India brings a distinct advantage through its manufacturing base and recycling network. According to data from the Ministry of Textiles, India generates around 7.07 million tons of textile waste each year, recovering over 95% of its pre-consumer textile waste. Projected to reach $3.5 billion by 2030, the textile recycling sector in India is pivoting toward high-value production through advanced chemical and mechanical technologies.

Strategic Implications for Manufacturing Hubs

The global competition is rapidly shifting upstream. Future growth will not be determined by processing capacity alone, but by access to reliable, high-quality feedstock. For apparel manufacturers in producing powerhouses like Bangladesh, recycled fiber is no longer an optional add-on. It has become a strategic raw material. The next sustainable competitive advantage belongs to businesses that successfully link three core elements, which are waste collection networks, modern recycling facilities, and verified brand demand.

Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden) are becoming an important testing ground for Europe’s textile transition. Traceability is moving from a sustainability goal to a sourcing requirement.

The EU launched its Digital Product Passport (DPP) Registry on 20 July 2026. Textile-specific requirements are expected to follow under the EU’s Ecodesign for Sustainable Products Regulation. The rules are expected to require data on fiber content, recycled materials, material origin, chemicals, durability and end-of-life options, according to the European Commission.

Nordic brands are already preparing. H&M Group sourced from nearly 800 apparel factories in 23 countries and about 550 raw-material factories in 15 countries as of February 2026. In 2025, 91% of its materials were recycled or sustainably sourced. Recycled materials reached 32%, above its 30% target, according to H&M Group.

Supplier certification is also growing. Almost 50% of H&M’s contracted apparel factories had Recycled Claim Standard certification. Another 39% had Global Recycled Standard certification. About 38.5% had Organic Content Standard certification, according to Shenglu Fashion.

The focus is also moving deeper into the supply chain. Danish brand GANNI plans to cover all Tier 1, Tier 1+ and Tier 2 suppliers through social audits or assessments by 2028, according to GANNI’s 2026 sustainability strategy.

This creates a clear message for global suppliers. Traceability will increasingly influence market access and sourcing decisions. Factories will need reliable data across their supply chains, not only compliance certificates.

The challenge is large. Global fiber production reached 132 million tons in 2024. Less than 1% came from pre- and post-consumer textile recycling.

For Bangladesh, this creates both pressure and opportunity. Suppliers that can prove fiber origin, recycled content, and supply-chain data could gain an advantage as European buyers prepare for tighter DPP requirements.

Brent T. Christensen, US Ambassador to Bangladesh, called for greater transparency and open competition in Bangladesh’s major infrastructure projects on September 7. He made the remarks during a meeting with Khandakar Abdul Muktadir, Commerce Minister, at the FBCCI office in Dhaka. Christensen noted that a predictable procurement system will boost investor confidence and attract more US companies to the country.

The meeting covered bilateral trade, US investment, energy cooperation, and policy reforms. The proposed floating storage and regasification unit project was a key topic according to the commerce ministry.

Bangladesh operates two terminals with a combined capacity of 1,100 million cubic feet per day and needs additional LNG infrastructure to address domestic gas shortages. A steady gas supply remains critical to keep apparel manufacturing running and preserve export growth.

Speed of project execution remains a government priority. Khandakar Abdul Muktadir said US companies will receive high priority if they can deliver an FSRU quickly with an effective supply plan.

He noted that the government removed the requirement for foreign companies to appoint local agents when procuring strategic equipment. Direct procurement from manufacturers will increase transparency and reduce the role of intermediaries.

Bilateral energy cooperation continues to grow through strategic agreements. In May, the US Department of Energy and Bangladesh signed a memorandum of understanding on long-term energy security. Bangladesh also approved a long-term supply deal with Gunvor USA LLC for 117 LNG cargoes between 2026 and 2038. Clear evaluation criteria and open competition will help convert US interest into actual investment across energy and infrastructure sectors.

The Bangladesh Power Development Board (BPDB) has launched a Tk 2,498.99 crore project to build a 442 MW solar power plant on 685 acres beside the Rampal thermal plant in Bagerhat. The initiative aims to expand renewable energy capacity alongside existing infrastructure.

The project aims to increase the country’s renewable energy generation capacity. BPDB has already prepared a Development Project Proposal (DPP) and submitted it to the Planning Commission for evaluation.

According to BPDB sources, the land earmarked for the solar project was originally acquired for the second phase of the Rampal coal-fired power plant.

However, following a government policy decision against new coal-fired power projects, the 685 acres remained unused for an extended period. BPDB has now proposed developing a 442 MW (DC) solar power plant on the site.

The project is scheduled to be implemented from September of the current fiscal year through June 2029.

Of the estimated Tk 2,498.99 crore project cost, BPDB plans to finance Tk 374.85 crore from its own funds, while Tk 2,124 crore would come from the Power Sector Development Fund. The cost estimates were prepared using an exchange rate of Tk 123 per US dollar.

The proposed solar plant will be built beside the 1,320 MW Rampal coal‑fired power plant, operated by Bangladesh‑India Friendship Power Company Ltd. (BIFPCL). The joint venture is a 50:50 partnership between BPDB and India’s NTPC.

The Industry and Energy Division of the Planning Commission had sought approval from Finance and Planning Minister Amir Khasru Mahmud Chowdhury to undertake the large-scale solar project at the Rampal site. Planning Ministry sources said policy approval was subsequently granted at a ministry meeting.

Notably, BPDB has submitted the DPP and the proposal is now under processing. They said permission was sought because of previous controversies surrounding the Rampal power plant, while the Project Evaluation Committee (PEC) meeting has yet to be held.

The project's financing is expected to face particular scrutiny during the PEC process, as BPDB is currently a loss-making entity and relies heavily on government subsidies to purchase electricity.

Planning Commission officials said BPDB would be asked during the PEC meeting to explain how the project would be financed and how its cost estimates were prepared. They added that recent experience with solar power projects and electricity purchase arrangements would help assess whether the proposed expenditure is reasonable.

According to the project proposal, the estimated power generation cost of the solar plant is Tk 2.94 per kilowatt-hour.

The proposed viable tariff is Tk 6.33 per kWh, while the Bangladesh Energy Regulatory Commission (BERC) has fixed the selling rate at Tk 8.39 per kWh.

Also, the 442 MW solar project would be developed using BPDB’s own financing on the land originally acquired for the second phase of the Rampal thermal power plant.

Meanwhile, the government has set a target of reaching 10,000 MW of total solar power generation capacity by 2030 as part of its efforts to expand renewable energy.

To encourage investment in the sector, customs duty, regulatory duty, supplementary duty and advance tax on imports of essential solar power equipment, components and batteries have been exempted until 2031.

India’s apparel trade with Europe is entering a turning point. Its exports to the European Union reached a record $4.66 billion in FY2025–26, up from $4.55 billion a year earlier. The number is still modest compared with the scale of the EU market, but the direction is changing fast.

The European market is becoming strategically important for India because the country is about to remove one of its biggest growth barriers. India and the EU concluded their Free Trade Agreement negotiations in January 2026. According to the Government of India, zero-duty access across textile and clothing tariff lines will eliminate EU duties that currently reach 12% on an import market valued at $263.5 billion.

This matters because India is not entering Europe from a standing start. It already has a large manufacturing base, domestic fiber availability, and an integrated supply chain covering cotton, man-made fibers, and home textiles.

The shift is already visible in corporate strategy. India's textile exports to Europe increased 9% in FY2025–26, while exports to the US declined 7%. Raymond Lifestyle expects Europe to contribute 20–25% of its exports within two years, up from 17%. According to Reuters, European inquiries have increased, and around 30% have converted into orders.

The impact will be felt directly in sourcing competition. The EU imported about €90 billion of apparel in 2025, with Bangladesh remaining a major supplier. In January–April 2026, Bangladesh's apparel exports to the EU fell 19.33% to €6.09 billion.

Bangladesh still has duty-free access under the Everything but Arms arrangement during its LDC transition. India will not gain an immediate tariff advantage over Bangladesh. Instead, India will remove the 9–12% tariff gap that made its products less competitive.

However, the long-term dynamic will change when Bangladesh graduates from LDC status and loses automatic EBA access. India will also face the EU's strict Rules of Origin requirements, which typically demand double transformation from yarn to garment. Integrated Indian mills will qualify easily, but non-integrated garment converters importing foreign fabric will face challenges.

Non-tariff barriers will also test Indian exporters. The EU is implementing the Carbon Border Adjustment Mechanism and strict supply chain compliance rules. Indian manufacturers relying on coal-heavy power grids must address energy sustainability to capture market share.

Tariff removal alone will not decide the winners. The competition will depend on scale, speed, quality, compliance, and supply chain reliability. India’s success will depend on how quickly manufacturers convert tariff savings into competitive pricing and secure long-term European buyer programs.