with  global competition having reduced exports by over a third. But one firm  has received a boost from a surprising source: coffee.
The S.  Cafe fabric, made by small firm Singtex Industrial, incorporates  recycled coffee grounds from Starbucks and 7-Eleven, and has proved a  hit with heavyweight international brands including Nike and North Face.
Industry  figures say the fibre -- more than three years in development, and sold  under the slogan 'Drink it, wear it' -- shows how the sector might  reinvent itself as green, savvy, and even cool.
"S. Cafe fibre  marks a technological breakthrough in the company's research and  development," said Jason Chen, the company's 50-year-old chairman, who  drinks four cups of coffee a day.
Taiwan's textile exports peaked  in 1997 with a value of $16.7 billion, but since then, overseas  shipments have been declining, as the island's wages have gone up while  tough and nimble rivals have emerged in China.
Partly due to the  global crisis, exports hit a nadir of $9.4 billion in 2009, according to  figures compiled by Taiwan Textile Research Institute, a semi-official  industry research unit.
Yet Frank Hsu, deputy secretary-general of the Taiwan Textile Federation, insists this is not the end of the story.
"The textile industry is by no means a 'sunset industry'," he said. "Rather, the sun is right above our heads."
The  island's textile sector, in which 4,000 companies now employ some  190,000 workers, needs a renaissance, but it may not be easy -- and it  definitely will not be cheap.
Singtex spent Tw$50 million ($1.7  million), or around one third of its capital, to develop its new fabric,  which contains about two percent coffee extracts, with the rest  polyester or nylon. But the investment has paid off.
S. Cafe  revenues came in at around Tw$100 million in 2010, and sales from  fibre-related businesses have hit Tw$170 million in the five months to  May, accounting for 20 percent of the company's revenues.
The  addition of coffee grounds helps to control odours and protect against  UV rays, as well as enabling the fabric to dry faster. But too much  would make the fibres snap easily -- meaning the process had to be  finely calibrated.
The results have created a buzz. US outdoor  footwear and apparel giant Timberland describes a jacket using the  fabric as "our most environmentally conscious performance jacket ever".
Altogether, Singtex supplies fabric to nearly 70 globally noted brands, from Germany's Puma to Japan's Mizuno.
Its secret was to help those firms make environmental concerns part of their corporate image.
"This  is a smart marketing strategy. It speaks directly to the hearts of  environmentally conscious consumers," said Yin Cheng-ta, an official  from the Taiwan Textile Research Institute.
As the industry seeks  fresh vitality, Singtex's success is remarkable, but not unique.  Inventiveness has become a necessity for companies who have not moved  their production to low-cost areas in China and Southeast Asia.
Several  firms have branched out into creating fine fibres, with companies  including Nan Ya Plastic Co., Zig Sheng Ind Co and Chain Yarn Co  producing yarns with less than five deniers -- compared with a normal 75  deniers.
"Cloth made of such yarns is so fine that it is usually  described as 'second skin' -- it's almost like the skin of babies," Yin  said.
Cloth made of such fine yarns sells for around five US dollars a yard, compared with 1.0-2.0 US dollars for normal cloth.
But  the dyeing and manufacturing processes are so demanding that only a few  countries, such as Italy and Taiwan, produce the cloth, he added.
Hsu,  of the Textile Federation, said he was optimistic about the outlook for  the industry despite the drop in volumes. Profit margins are currently a  healthy 20 percent, he said.
Still, Singtex's Chen said that  innovation is a challenge for small textile businesses on the island,  which spend an average 1.7 to 2.0 percent of their yearly revenues on  research compared with Singtex's 3.5 percent spend.
"Maintaining the niche isn't easy," he said.
    Copyright ©  2011   AFP. All rights reserved. More »
   Taiwan's textile firms wake up and smell the coffee
 By Benjamin Yeh (AFP) – 1 day ago
 TAIPEI — Taiwan's once-booming textile industry entered this decade  in need of a wake-up call, with global competition having reduced  exports by over a third. But one firm has received a boost from a  surprising source: coffee.
The S. Cafe fabric, made by small firm  Singtex Industrial, incorporates recycled coffee grounds from Starbucks  and 7-Eleven, and has proved a hit with heavyweight international brands  including Nike and North Face.
Industry figures say the fibre --  more than three years in development, and sold under the slogan 'Drink  it, wear it' -- shows how the sector might reinvent itself as green,  savvy, and even cool.
"S. Cafe fibre marks a technological  breakthrough in the company's research and development," said Jason  Chen, the company's 50-year-old chairman, who drinks four cups of coffee  a day.
Taiwan's textile exports peaked in 1997 with a value of  $16.7 billion, but since then, overseas shipments have been declining,  as the island's wages have gone up while tough and nimble rivals have  emerged in China.
Partly due to the global crisis, exports hit a  nadir of $9.4 billion in 2009, according to figures compiled by Taiwan  Textile Research Institute, a semi-official industry research unit.
Yet Frank Hsu, deputy secretary-general of the Taiwan Textile Federation, insists this is not the end of the story.
"The textile industry is by no means a 'sunset industry'," he said. "Rather, the sun is right above our heads."
The  island's textile sector, in which 4,000 companies now employ some  190,000 workers, needs a renaissance, but it may not be easy -- and it  definitely will not be cheap.
Singtex spent Tw$50 million ($1.7  million), or around one third of its capital, to develop its new fabric,  which contains about two percent coffee extracts, with the rest  polyester or nylon. But the investment has paid off.
S. Cafe  revenues came in at around Tw$100 million in 2010, and sales from  fibre-related businesses have hit Tw$170 million in the five months to  May, accounting for 20 percent of the company's revenues.
The  addition of coffee grounds helps to control odours and protect against  UV rays, as well as enabling the fabric to dry faster. But too much  would make the fibres snap easily -- meaning the process had to be  finely calibrated.
The results have created a buzz. US outdoor  footwear and apparel giant Timberland describes a jacket using the  fabric as "our most environmentally conscious performance jacket ever".
Altogether, Singtex supplies fabric to nearly 70 globally noted brands, from Germany's Puma to Japan's Mizuno.
Its secret was to help those firms make environmental concerns part of their corporate image.
"This  is a smart marketing strategy. It speaks directly to the hearts of  environmentally conscious consumers," said Yin Cheng-ta, an official  from the Taiwan Textile Research Institute.
As the industry seeks  fresh vitality, Singtex's success is remarkable, but not unique.  Inventiveness has become a necessity for companies who have not moved  their production to low-cost areas in China and Southeast Asia.
Several  firms have branched out into creating fine fibres, with companies  including Nan Ya Plastic Co., Zig Sheng Ind Co and Chain Yarn Co  producing yarns with less than five deniers -- compared with a normal 75  deniers.
"Cloth made of such yarns is so fine that it is usually  described as 'second skin' -- it's almost like the skin of babies," Yin  said.
Cloth made of such fine yarns sells for around five US dollars a yard, compared with 1.0-2.0 US dollars for normal cloth.
But  the dyeing and manufacturing processes are so demanding that only a few  countries, such as Italy and Taiwan, produce the cloth, he added.
Hsu,  of the Textile Federation, said he was optimistic about the outlook for  the industry despite the drop in volumes. Profit margins are currently a  healthy 20 percent, he said.
Still, Singtex's Chen said that  innovation is a challenge for small textile businesses on the island,  which spend an average 1.7 to 2.0 percent of their yearly revenues on  research compared with Singtex's 3.5 percent spend.
"Maintaining the niche isn't easy," he said.