Company Profile & Sustainability Efforts 2018/2019 - www.sharabati-denim.com
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Index 1. About us ............................................ 4 A message from our Chairman .............. 4 What we do ............................................ 5 Milestones .............................................. 6 Company structure ................................. 7 Markets ................................................... 7 2. Delivering optimal performance...... 8 Products .................................................. 8 Processes ................................................ 9 Customer service .................................... 10 Delivery .................................................. 10 3. Sustainability ..................................... 12 Our commitment to the environment .... 12 TADWEER: closing the loop on production waste ... 16 Compliance ............................................ 18 4. Social responsibility .......................... 19 Caring for our employees and communities............................................ 19 3
1. About us 1.1. A message from our 1.2. What we do Year Location Total Capacity Chairman Sharabati Denim is one of the largest integrated textile manufacturers in the 1978 Syria 1 million metres Heritage, innovation and transformation are the core values that lay at the heart of Middle East, Egypt and Turkey, producing Sharabati Denim, which was established in 100 million running meters of fabric annually. 1984 Syria 2.5 million metres 1978 in Aleppo, the industrial city of Syria. We oversee the entire process of denim and 1989 Syria 5 million metres I owe the company’s success and flat fabric production, from sourcing high international presence to our performance quality raw materials to producing yarn, infrastructure and dedicated team. Our finished denim and flat fabrics. As a family- 1992 Syria 10 million metres development and transformation plan have owned business, we promote a supportive, enabled us to become a world leader in the inclusive working environment and prioritize Syria 1998 18 million metres production of denim and gabardine. our 3,790 employees’ health and safety. Egypt Syria The robust tracking and reporting systems We have successfully expanded over the 2004 33 million metres Egypt at Sharabati Denim continue to achieve years, nearly doubling our production every unfaltering commitment to quality and seven years, and now operate factories in 2017 Egypt 55 million metres customer service. Sadat City, Egypt, and Kadirli, Turkey. With sales offices in Germany, Italy, Turkey, Egypt, Egypt Tunisia and Morocco, we serve customers 2018 100 million metres At Sharabati Denim, we take social and Turkey environmental sustainability seriously. We worldwide. strive to maintain a high level of corporate responsibility, which enables the longevity of 100Million our business for future generations. Sincerely, Mohammed Sabbagh Sharabati, Chairman meters of running fabric/year 4 5
1. About us 1.3. Milestone 1.4. Company structure Year Milestone Product Egypt Turkey Headquarters and factory - export sales Factory Sabbagh Sharabati founded by 1978 Flat fabric - Corduroy Mohamad Sabbagh Sharabati in Aleppo Syria Alroubaia Textile Co. Fourtex JNR Mensucat Tekstil 1984 First denim line in Syria Denim - Flat fabric - Corduroy Sales Offices 1989 Expansions in Syria Denim - Flat fabric - Corduroy With warehouses - Egypt (Cairo) 1992 Expansions in Syria Denim - Flat fabric - Corduroy - Turkey (Istanbul) - Morocco (Casablanca/Tanja) - Tunisia (Sousse) 1998 Foundation of Alroubaia Textile Co. Fourtex Egypt Denim - Flat fabric - Corduroy 2004 First flat fabric line in Egypt Denim - Flat fabric - Corduroy Without warehouses - Italy - Germany 2005 First international sales office in Turkey Denim - Flat fabric - Corduroy 2011 Major expansion in Egypt Denim - Flat fabric 1.5. Markets Sales office in Tunisia 2014 Denim - Flat fabric Sharabati Denim is strategically located Sales office in Germany at both the south and north of the Mediterranean. This means we are uniquely 2014 Creation of Sharabati Denim Brand Denim - Flat fabric placed to serve local and international textiles and apparel markets. Today, from 2015 Sales office in Morocco Denim - Flat fabric Egypt headquarters and our base in Turkey, we export our products to more than 100 top 2016 Foundation of JNR Mensucat in Turkey Denim - Flat fabric fashion brands in 27 countries, in particular to Europe, North Africa and the Far East. 2017 Sales office in Italy Denim - Flat fabric 2018 Expansions in Egypt Denim - Flat fabric 27 Sharabati Denim exports fabrics to 127 top fashion brands in 27 countries. 6 7
2. Delivering Optimal Performance Delivering optimal product and sustainability 2.1. Products 2.2. Processes performance is in Sharabati Denim’s DNA. We offer outstanding reliability and flexibility to our customers from start to finish. We 2.1.1 High quality raw materials 2.2.1 State-of-the-art technology continue to respond rapidly to evolving Our strategic location allows us to source We harness the latest technology and best customer requirements, offering efficient and high quality raw cotton from Africa, Greece practices to ensure flexibility, high levels timely delivery. and the United States. In particular, we have of accuracy and quality at every level of achieved the Egyptian Cotton Trade Mark production: spinning, weaving, dyeing and Certification, which enables us to produce finishing. We continuously evaluate our superior fabrics made of 100% Egyptian progress, optimize our processes and invest cotton - the highest quality cotton in in state-of-the-art technology. the world. Products made from Egyptian Cotton1 are known to be softer, finer and 2.2.2 Quality control more durable than any other cotton products We use world-leading fiber quality control worldwide. technologies in our spinning mills, such as USTER systems. We also use the American 2.1.2 A wide range of fabrics Society for Testing and Materials (ASTM) and In 2018, our production was divided into 60% American Association of Textile Chemists denim and 40% flat fabric. Our fabric weights and Colorists (AATCC) standard methods range from 3.5 oz./y² to 14.5 oz./y². of testing fibers and fabrics to measure and evaluate performance characteristics The beginning of 2019 brought a new life to our product range. At the Munich Fabric Start 2019 fair, we introduced for the first time a set 2.2.3 Research and development of concepts for our fabrics. These concepts Our expert R&D and sales teams work with gave our denim and flat fabrics meaning and leading brands to keep pace with evolving provided a fresh and integrated platform to fashion and style trends, holding regular market our fabrics to our customers. customer meetings and participating in joint product development projects. We also stay Fabric types by informed of the latest trends by participating Materials in key international fairs such as the Kingpins appearance* Show Amsterdam, Kingpins Show New York, Denim 100% cotton, stretch Selvedge, vintage, fabrics (comfort, power, su- blended, strip, fancy, Premier Vision Istanbul, Munich Fabric Start, per and hyper stretch) crossage and printed. Bangladesh Denim Expo and Maroc in Mode. and bi-stretch. Our collections are designed twice a year and Flat 100% cotton, stretch Dyed, bull denim, showcased worldwide. fabrics (comfort, power, su- blended, strip, fancy per and hyper stretch) and printed. Our flat and bi-stretch. fabrics are deliv- ered either dyed or prepared for dyeing (PFD). * Selvedge, printed, blend and strip are produced soon 1 Cotton Egypt Association (CEA) https://www.cottonegyptassociation.com 8 9
2. Delivering Optimal Performance 2.2.4 In-house innovation lab Sharabati Denim is an early adopter of State-of- Through this platform hosted in our factories in Egypt, we create incubators for future product development collaborations with leading denim brands. Our laboratory the-art comprises a stitching unit, laundry unit, showroom and working booths (dedicated workspaces for each partner brand). Working with experienced washing experts from the world, we develop wash concepts that reflect our customer’s overall desired look and feel technology for the upcoming season. 2.3. Customer Service Our flexible system allows us to manipulate the order of production to create new fabrics when handling special requests with rapid delivery dates. Moreover, we offer an in- house laundry service. 2.4. Delivery With a large supply of diverse raw materials, a significant production capacity and 40 years of experience, we offer timely repeated fabric delivery from both production sites (Egypt, Turkey). Additionally, we can serve our customers with warehouses strategically located in Morocco and Tunisia. Moreover, by providing Movement Certificates, our customers can benefit from trade terms such as COMESA agreement, Agadir agreement, Euro-Med, EUR.1, Form A and an Arab League Certificate of Origin. Additionally, we offer air freight delivery options. 10 11
3. Sustainability 3.1. Our commitment to the means we produce zero effluents during the 3.1.2 Optimizing our use of environment process and save water. electricity In 2019, we began trials for a denim dyeing At Sharabati Denim, we have a We use electricity through our production chemical that is used in multiple dyeing longstanding commitment to environmental facilities. We are making energy savings by processes. This chemical can have the effect sustainability, and are among the leaders adding modern energy-saving machines of waterless dyeing in one process, and zero of the sustainability movement in the and taking steps to save energy in our office water discharge in another. Our trials have Mediterranean region. We focus on the buildings. been successful and the chemical is under areas where we stand to make the greatest development to be extended to most of our difference: conserving water and improving Energy saving at our headquarters and production. wastewater quality, optimizing our use of factory offices energy, and managing chemicals responsibly. We have modified the air conditioning Treating wastewater effectively We also place an increasing focus on system at our head offices in Egypt to At our flagship factory in Egypt, we conduct sustainable raw materials, recycling and operate more efficiently and provide effluent purification in wastewater treatment closed loop manufacturing. We adhere to good quality, sufficiently humid indoor air, plants through a biological process. In 2011, international standards on health and safety, promoting a healthy working environment. we established a biological treatment plant quality, chemicals and sustainable materials Additionally, we have replaced conventional for our expanding production sites with a (please see Compliance). Additionally, we air conditioning systems with evaporative daily capacity of 1,000 cubic meters per day. comply with national and local environmental coolers (desert coolers). Evaporative coolers The characteristics of the biologically treated regulations. use less energy while operating when water discharged into the public wastewater compared to typical air conditioning units system are within legal limits. The resulting 3.1.1 Conserving water and and produce very low CO2 emissions. sludge (biological effluent treatment) is improving water quality Saving electricity in spinning mills, we select delivered to a specialized government our spinning machines primarily based on Saving water in denim dyeing and finishing agency for further treatment. Similarly, solid energy-saving criteria. Over the past two We have steadily decreased the volume and liquid wastes are pre-treated before years in Egypt, we have made the following of water we use in denim dyeing, nearly being delivered to the government for savings, while extending our spinning mills: halving our water consumption between further treatment. In addition to our internal 2010 and 2018. To achieve this, we added daily monitoring, regular measurements are Saving electricity in spinning mills multiple rope dyeing lines that use less also conducted in independent laboratories. We select our spinning machines primarily water for washing. In 2018, we also reached based on energy-saving criteria. Over the a considerable saving of water in our Caustic Recovery Plant (CRP) past two years in Egypt, we have made denim finishing processes by updating and Our CRP recovers up to 75% of the extensive energy savings, while extending automating our existing dyeing lines. used caustic soda from the mercerizing our spinning mills. wastewaters. This unit allows us to reuse Innovations in waterless dyeing and zero the caustic soda in our production, instead Reducing heating requirements in denim water discharge of discharging it (and treating it with dyeing To conserve water and reduce our use of chemicals) and reduces the waste load on We used cold dyes (with a dyeing chemicals, we are exploring best practice in our wastewater treatment plant. Additionally, temperature of between 40 and 50°C) to waterless dyeing. In 2017, we began using we use the heat released through the save electricity and water in the laundry dyes based on the chemistry of solubilized exchangers to heat industrial water. We also washing process. To save energy in the sulphur dyes. This new range of sustainable recapture the water evaporated from the CRP denim dyeing process, we reuse condensate dyes is affinity-free and sulphide-free, and and reuse it in the mercerizing machine. return water and opt for cold dyes that suitable for the Global Organic Textile require less heating in the dyeing process. Standard and BLUESIGN certification (obtained by our supplier). Importantly, this 12 13
3. Sustainability 45% Saving electricity in denim finishing Improving wastewater quality through In 2017, we added a continuous finishing efficient sizing We have steadily decreased the line for denim to our existing lines. This By adopting an innovative sizing method eco-line offers a more controllable process, volume of water we use in denim in our factories, we saved 22% of sizing less steam, less electricity, lower water dyeing, nearly halving our water materials in 2018. Sizing solutions can be run use between 2010 and 2018 consumption and lower costs. reduction in water use at lower temperatures, saving electricity as in denim dyeing well as creating a safer and more comfortable 3.1.3 Managing chemicals work environment for the machine operator. responsibly This method also allows us to reduce the chemicals and water needed in the desizing Chemicals are used throughout garment process, which in turn improves the quality of and textile production to dye fabrics and our wastewater. give them performance characteristics. In addition to complying with regulations and Switching to safer substances for desizing producing OEKO-TEX certified fabrics, we Since 2017, and until today, we further are reducing our use of chemicals by using improved the sustainability of this process by more sustainable dyes and re-engineering completely switching from enzymatic (non- dyeing processes and installing chemicals soluble starch) to non-enzymatic (soluble recovery and water treatment units. starch) desizing. We also modified our desizing method, achieving considerable Reducing chemical use with pre-reduced savings in desizing materials in 2017 - 2018. liquid indigo We were among the early adopters of the Reusing yarn carriers pre-reduced liquid indigo in 2005. This Our integrated production allows us to reuse dyeing method reduces our direct chemical durable yarn carriers for spun yarns. Cones use and is safer for our employees, who and separators used in the transportation of avoid handling the chemicals previously our spun yarns to our weaving department used in the powder indigo dyeing. Using are reused several hundred times. By using pre-reduced liquid indigo in 2017 - 2018, carriers made of durable materials instead of we avoided using considerable amounts of paper, we save 580 tonnes of paper annually chemicals, compared to powder indigo: in our spinning mills in Egypt: • 550 tonnes of paper are saved per year for • 58.8% less sodium hydrosulphite using durable cones. • 54% less sodium hydroxide • 30 tonnes of paper are saved per year for • 19.4% fewer wetting agents using durable separators. • 62.5% less dispersing agent • 22.5% less sequestering agent Recycling e-waste and promoting rechargeable batteries Opting for more sustainable sulphur dyes We collaborated with RecycloBekia to recycle In 2016, we started replacing the reducing our electronic waste and remove any data agent within the sulphur dyeing process from end-of-live machines in a safe and with a more sustainable reducing agent. In sustainable way. To protect the environment 2018, we decreased the consumption of the and save costs, we also use rechargeable reducing agent by 50% by replacing it with batteries to replace all types of single-use dextrose. batteries. 14 15
3. Sustainability 3.2.4 Sustainable knowledge and manage energy. We used multiple transfer techniques including wind catchers, solar screens, self-shading, a solar chimney and Building on our 40 years of experience 3.2. TADWEER: Closing the in continuous innovation for quality and multiple alterations to move light deeper into loop on production waste sustainability, we will leverage the knowledge the workplace and control natural ventilation. Future sustainable building initiatives at Our strategic business unit, TADWEER, we develop through TADWEER to promote TADWEER will encompass the installation of established in 2018, is among the first of its further circular and sustainable practices solar water heaters and the use of recycled kind in the region. At TADWEER, we primarily across our business. grey water for toilet flushing and irrigation. recycle fabric and cotton waste generated through the spinning, weaving, finishing 3.2.5 Towards sustainable building and sampling processes, closing the loop certification on fabric waste. We are also planning to TADWEER’s main office building was integrate post-consumer waster as secondary designed to stimulate natural ventilation raw material. Our state-of-the-art recycling and promote daylight in order to save plant has the capacity to recycle 8,000 tonnes of waste material annually to produce yarns and non-wovens. 3.2.1 Vertically integrated production TADWEER is vertically integrated with our production lines providing Sharabati Denim with an ongoing supply of recycled fibers for our fabrics, and allowing us to create our own raw materials from waste. 3.2.2 Closing the loop Sharabati Denim will direct all waste from spinning, weaving, finishing and sampling processes to TADWEER, closing the loop on our own production process. 3.2.3 Quality without compromise Our pioneering closed loop initiative will further support our goal to provide customers with high quality products that comply with international standards for quality and sustainability. We can adapt the recycling process to produce diverse types of raw materials, depending on our customers’ fabric requirements, continuing to deliver on our commitment to be a reliable and flexible partner. 16 17
3. Sustainability 4. Social Responsibility 3.3. Compliance Cotton is grown in 23 countries worldwide. By 4.1.2 Promoting employee 2030, BCI aims to have reached 5m farmers wellbeing producing 8.2m metric tonnes of Better 3.3.1 Quality We have created high quality Cotton annually. accommodation for workers comprising 27 ISO 9001:2015 This international quality GOTS: Gaining GOTS certification apartment buildings. The 376 housing units management system confirms that we provide demonstrates the organic status of textiles cover approximately 34,000 m2. We provide products that meet customer and applicable to consumers. It considers everything from accommodation suitable for families, couples statutory and regulatory requirements, and we raw materials to manufacturing (such as and singles, offering affordable payment take steps to enhance customer satisfaction wastewater treatment and labour standards) plans over the long term. Additionally, through managing our system effectively and to labelling. This is very important in light of residents have access to multiple services, continuously improving our practices. the growing importance of transparency in including a three-story shopping mall the garment industry. The Standard can be totaling 2,400 m2, enabling them to adopt applied to textiles made from at least 70% a low carbon emission, sustainable lifestyle 3.3.2 Health and safety certified organic natural fibres. by purchasing fresh food and drink without BS OHSAS 18001 This BSI Group GRS: We have achieved Global Recycled travelling long distances by car. Occupational Health and Safety Management Standard certification for our Egypt plants, Certification is an international standard 4.1.3 Workplace health, well-being which can be applied to fabrics that are at a providing a framework to manage workplace minimum of 20% recycled yarn. Our Tadweer and safety health and safety risks. Implementing this plant regenerates recycled fibers and yarns Workplace health, wellbeing and safety our standard further confirms our commitment to from pre-consumer and post-consumer hard mills are equipped with advanced systems our employee’s health and safety. waste, which are then re-used in our fabric for air filtration and conditioning. These production. systems serve a dual function in terms of COTTON MADE IN AFRICA: This initiative guaranteeing a clean and healthy working 3.3.3 Chemical management environment for the workforce in addition to has set itself the goal since 2005 to STANDARD 100 by OEKO-TEX®: The sustainably improve the living conditions of improving the performance of the machines STANDARD 100 by OEKO-TEX® is a globally cotton farmers in Sub-Saharan Africa. The and therefore the quality of the product. recognised, independent textiles testing and initiative is based on the principle of helping Our head office employees and factory certification system. The fabrics we produce people to help themselves through trade: 4.1. Caring for our workers in Egypt enjoy free, nutritious with OEKO-TEX® labelling confirm to our meals prepared daily on-site from a variety African smallholders learn about efficient and employees and communities customers that we have tested our fabrics for environmentally friendly cultivation methods of locally purchased fresh ingredients. harmful chemicals. through agricultural training provided by The menus include a variety of recipes to experts. At the same time, the initiative promote healthy diets. Our central kitchen 4.1.1 Employee training establishes an international alliance of textile and bakery distribute around 1,500 meals a 3.3.4 Sustainable materials companies which purchase the Cotton made We are committed to providing our day in our factories in Egypt. All meals are employees with the highest standards of prepared in accordance with international BETTER COTTON INITIATIVE (BCI): in Africa raw material and pay a licensing fee training in multiple fields, in order to help hygiene rules and served in 11 canteens in Through the Better Cotton Standard to use the seal. The proceeds from licensing them stay up to date with the latest spinning, Fourtex, Egypt. System, BCI aims to take sustainable cotton fees, in following with the workings of a social weaving and dyeing/finishing knowledge, We have well-equipped medical offices mainstream by helping farmers to cultivate business, are reinvested in the project regions and further promote their language and providing first aid and pharmacy services cotton in a way that is better for people, the of Sub-Saharan Africa. computer skills. In 2017 and 2018, more than to our employees. Our employees in Egypt environment and their livelihoods. Better one hundred employees in our factories in also have access to a subsidized, fully Egypt benefited from English classes given functional, on-site gym and we support our by a professor from the American University local communities both economically and via of Cairo. educational and health initiatives. 18 19
4. Social Responsibility 4.1.4 Promoting textile education We collaborate with higher local educational institutions specialized in textile education. This cooperation includes welcoming students to visit our factories and discover our running machines. In 2016 and 2017, we hosted 88 students. We also offer in-mill internships for university students specializing in textiles. In 2017, we received 10 students. Additionally, we provide key institutions with educational tools. For example, in 2016, Sharabati Denim donated one loom to the University of Menoufia in order to establish a new textile department. 4.1.5 Sharing safety best practice We offer free training for neighboring factories in work safety standards. In 2016, 95 workers benefited from this activity, in cooperation with local and national authorities and the International Labour Organization. 4.1.6 Supporting our employees’ families We support our employees’ families by facilitating access to healthy food, health clubs, and scholarships and educational financial aid. Contributing to our local economy In Egypt, we run an initiative called ‘Proudly made in Egypt’, which aims to introduce consumers to Egyptian products that adhere to high quality standards, replacing imported goods. 20 21
Egypt Headquarters & Factory (Export Sales) Alroubaia Textile Co. Fourtex 3rd Industrial Zone Extension El-Sadat City P.O. Box: 148 t: +20 482659023/24 Sales Office 19 Dr El Mahroky St. Salah Salem St. – after Air Force House Heliopolis Cairo t: +20 222901530 Turkey Factory JNR Mensucat Tekstil Sanayi Ve Ticareet A.Ş. Yusuf İzzettin Köyü Mahallesi Kadirli Organize Sanayi Bölgesi 2.Etap 2.Kisim Kadirli t: +90 328 717 00 04 Sales Office JNR Mensucat Tekstil Sanayi Ve Ticareet A.Ş. Merkez Mah. Sanayi Cad. No.5 Bahcelievler - Yenibosna Istanbul t: +90 212 637 64 21 Germany Sales Office Tunisia SGS Textilhandels GmbH Sales Office and Warehouse Adolf-Kolping – Strasse 39 Zi Sidi Abdelhamid Holzkirchen Sousse Bavaria P.O. Box: 4003 P.O. Box: 83607 Morocco Italy Sales Office and Warehouse Sales Office Bd AL Qods, N° 115 Via Pasubio, N° 5 Etg 1 Appartement 12, San Lazzaro di Savena (BO) Casablanca Bologna P.O. Box: 20460 P.O. Box: 40068
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