From the Sector

Indorama Ventures Public Company Limited (IVL) reported a strong 3Q 2021 performance amid record production volumes. The company maintained its positive outlook for the rest of the year and 2022, noting caution as headwinds including higher energy prices and supply chain disruptions weigh against resurgent consumer demand.

IVL reported EBITDA of US$478 million in Q3 versus US$552 million in the previous quarter and US$240 million a year earlier. Production volumes reached 3.73 million metric tons, a record, as the global recovery drove consumer demand for IVL’s products.

As the global economy recovers from the pandemic, consumer appetite and increasing Brent crude oil prices are testing supply chains and driving a commodity boom, with manufacturers running at full capacity. This has driven increases in freight prices and a shortage of materials.

Still, IVL posted a solid YTD performance, ending the first nine months of 2021 with EBITDA of US$ 1,512 million, up 123% YoY. The Integrated Oxides & Derivatives (IOD) segment will start to reap the full benefits of the hot commissioning of the Lake Charles gas cracker (IVOL) in Q4 and beyond, as well as continued advantaged shale gas economics.

In Q3, Project Olympus, the company’s cost saving and business transformation project, achieved US$63 million in efficiency gains, and is on track to achieve a total US$610 million of savings by 2023. IVL also implemented enhanced disclosures in governance, strategy, risk management, and metrics and targets, and launched a comprehensive financial policy and governance structure to accelerate environmentally driven projects.

IVL strengthened its Indorama Management Council (IMC) – the company’s highest operational management committee – by rotating experienced executives and adding the COOs of the Fibers and Integrated Oxides & Derivatives (IOD) segments. The appointments will help build the segments into self-sustaining organizations while also rotating expertise across the IMC.

3Q 2021 Performance Summary

• Consolidated Revenue of US$ 3,867M, an increase of 9% QoQ and 50% YoY
• EBITDA of US$ 478M in Q3 versus US$552 million, a decrease of 13% QoQ and an increase of 99% YoY
• Reported annualized EPS of THB 4.53 and core annualized EPS of THB 4.09

Members of TMAS – the Swedish textile machinery association – are proving instrumental in pioneering new sustainable processes for the dyeing, finishing and decoration of textiles.

The wasteful processes involved in these manufacturing stages are only one component in the development of viable circular supply chains for textiles that are now being established in Sweden.

At the recent Conference on Sustainable Finishing of Textiles, held across three separate afternoons on September 30^th, October 1^st and October 7^th, delegates heard that Sweden will introduce extended producer responsibility (EPR) for waste textiles and clothing at the beginning of 2022, ahead of the adoption of a similar European Union-wide EPR system in 2025.

New fibers
Swedish companies are also active in the development of new fibers derived from waste clothing, building on the country’s legacy leadership in pulp and paper production.

At the Sustainable Finishing of Textiles Conference, however, it was said that all of the environmental gains made by such sustainable new fibers can potentially be cancelled out in the further processing they are subjected to – and especially in resource-intensive conventional dyeing, finishing and decoration.

TMAS members Baldwin Technology and Coloreel have both developed solutions to address this issue.

TexCoat G4
During the conference, Baldwin’s VP of Global Business Development Rick Stanford explained that his company’s TexCoat G4 non-contact spray technology significantly reduces water, chemistry and energy consumption in the finishing process. It consistently and uniformly sprays chemistry across a fabric surface and applies it only where needed, on one or both sides.

Instant coloring
Coloreel’s CEO Mattias Nordin outlined the benefits of his company’s technology which enables the high-quality and instant coloring of a textile thread on-demand and can be paired with any existing embroidery machine without modification. This enables unique effects like shades and gradient to be achieved in an embroidery for the first time.

• Order intake of CHF 698.6 million in third quarter 2021
• Order intake of CHF 1 673.9 million after nine months
• Acquisition of the three Saurer businesses on schedule
• Credit lines renewed early
• Outlook 2021

The positive market dynamics, which Rieter has already reported on several occasions, continued in the third quarter of the current year. Rieter recorded an order intake of CHF 698.6 million in the third quarter of 2021 (2020: CHF 174.4 million).

The order intake of CHF 1 673.9 million after nine months corresponds to an increase of 294% compared to the prior year period (2020: CHF 425.1 million).
 
The market development is broadly supported at the global level and is based on a catch-up effect from 2019 and 2020 in combination with a regional shift in demand. Rieter believes that a major reason for this regional shift in demand is the development of costs in China. This is leading to increased investments outside the Chinese market. The orders came primarily from Turkey, Latin America, India, Pakistan and China. Overall, Rieter is benefitting from its innovative product range and the global positioning of the company.

The Business Group Machines & Systems achieved an order intake totaling CHF 1 281.6 million in the first nine months of 2021 (+447%).*

In the first nine months of 2021, the Business Group Components recorded an increase of 95% to CHF 227.0 million, while the Business Group After Sales posted an order intake of CHF 165.3 million, an increase of 123% compared to the prior year period.*

Acquisition of the three Saurer businesses on schedule
The acquisition of the three businesses from Saurer, which Rieter announced on August 16, 2021, is proceeding according to plan. The incoming orders for these businesses are not taken into account in this trading update.
 
Credit lines renewed early
The Rieter Group arranged the early renewal of the existing committed credit lines (five-year term, totaling CHF 250 million).
 
Outlook 2021*
The first nine months of 2021 were characterized by a rapid market recovery combined with a regional shift in demand. Rieter expects the demand for new systems to gradually return to normal in the coming months.  
 
For the full year 2021, Rieter anticipates sales of around CHF 900 million.

* See attached document for more information.

Avgol®, an Indorama Ventures company and manufacturer of high performance nonwoven fabric solutions, will be showcasing its latest work in biotransformation technology for polyolefin fibers and nonwoven fabrics at this year’s IndexTM 20 exhibition.
Avgol will be discussing the global challenge of eliminating incineration, landfill, dumping and, in particular, fugitive material pollution from non-woven products.

natureFIT™ is the newest innovation in the Avgol technology platform designed to imbue nonwoven fabrics with additional qualities and benefits that anticipate the shifting demands of the consumer-led retail space. The suite of fabric solutions is focused on replacing elements of spun melt fabric design, where possible, with natural alternatives. The advanced technology affords product designers a significant reduction in polymer consumption to reduce environmental impact while simultaneously enhancing softness and conformability.

The Index 20 expo will be held on 19 – 22nd October 2021 at Palexpo Geneva.

Electronics For Imaging, Inc. announces its newest digital front end (DFE) server solution for digital printing – the EFI™ Fiery® FS500 Pro platform. Fiery FS500 Pro will help print providers meet the challenges of shorter runs, faster turnaround times, less experienced staff, increased security standards and the need to reduce cost. The new Fiery DFE platform brings innovation to an extensive line-up of new digital printers coming for office, commercial, in-plant, packaging, and textile printing.  

The Fiery FS500 Pro platform features five key areas:

• Faster job processing. Print providers will benefit from faster job processing time and up to 40% faster application launch time to produce more jobs per shift.
• Faster turnaround time for short runs. Advanced Fiery features speed up administration and production of print jobs in fast moving print shops.
• More sellable print, less waste. Fiery FS500 Pro has more tools available for detecting potential errors in files, reducing both production time and waste.
• More-accurate brand colors. A new Fiery TrueBrand solution for corporate users makes it easy to ensure accurate printing of brand colors from Microsoft Word or PowerPoint.
• Advanced security. Fiery FS500 Pro provides new features for high security environments, ensuring compliance with customer security requirements and industry standards.

• Composites in the construction industry - The lightweight construction material of the future

Building with fibre-reinforced materials opens up completely new possibilities. In terms of engineering, design, and organisation. This is due, on the one hand, to the excellent properties of fibre-reinforced materials (FRM) and, on the other hand, to the fact that the material – unlike wood or brick, for example – is not machined or processed for its use, but custom-produced.

Excellent properties – in terms of engineering, design, and organisation
Fibre-composite materials offer a whole range of technical properties for innovative and sustainable building:
•    High mechanical rigidity
•    Low weight
•    High corrosion resistance
•    Low material fatigue
•    Low heat transfer coefficient of the plastic matrix
•    Resistance to frost and de-icing salt
•    Good draping capability

In addition, fibre composites offer numerous design options for novel and exceptional new building and maintenance projects:
•    Unique variety of shapes
•    Different structures of the textiles
•    Large spectrum of colours and colour combinations
•    Translucency of the plastic matrix
Thanks to these properties, composites can be used to produce coloured, phosphorescent, thermochromic or – through the use of LEDs or light-conducting fibres permanently integrated into the matrix – luminescent components.

In addition, there are organisational benefits for planning, construction and maintenance work with fibre-reinforced materials:
•    Easier handling and assembly of the far lighter and more flexible components – compared with steel, concrete or wood
•    Faster installation
•    Shorter construction site times in road and bridge maintenance
•    Shorter delivery times
•    Ability to integrate electronic monitoring systems

Individual composite textiles – for every lightweight engineering project
The composites experts at vombaur develop and manufacture woven tapes and seamless round or shaped woven textiles from carbon, glass, flax or other high-performance fibres on special weaving lines for individually specified round and shaped woven textiles – and can therefore offer you the best possible fibre base for every lightweight construction project.

"Regardless of whether it's a new construction or a renovation project, a façade design, a bridge or a staircase – as your development partner for composite textiles, we have plenty of experience with composites for demanding tasks," emphasises Dr.-Ing. Sven Schöfer, Head of Development and Innovation at vombaur. "We develop, create samples and manufacture woven tapes and seamless round or shaped woven textiles – in collaboration with the customer enterprise development teams and individually for the respective projects." This is how novel and unique lightweight components made of high-performance textiles are created for visionary projects.

ISKO introduces ISKO RHEACT™ – a patented, cutting-edge garment manufacturing solution designed to improve everyday living and physical wellness for everyone, through the proven benefits of woven compression.

Building on the exponentially growing trend for wellbeing products in many consumer sectors, ISKO has leveraged its expertise in developing innovative technologies to create ISKO RHEACT, its own wellbeing product for the apparel industry. Available exclusively to ISKO’s trade partners, ISKO RHEACT is extremely versatile and suitable for use in a variety of consumer sectors, from lifestyle, to fitness and workwear.

ISKO RHEACT stands out for its woven, gradual compression technology that helps boost the energy of the wearer through improved blood flow. It also provides a micro massaging effect by varying pressure in different areas of a garment. ISKO RHEACT is superior to knit compression as it works for up to 12 hours (compared to 3 hours) for any type of lifestyle – whether it’s taking a long-haul flight, lounging at home or during or after a workout where it helps with warming up before exercise and improves post-workout recovery. From a consumer standpoint, this translates to a garment that wears like a second skin, is durable, works to focus the mind, sharpens the senses, and energizes the body.

ISKO RHEACT products are certified by the independent Hohenstein Institute (Bönnigheim, Germany) and have received the endorsement of many physicians for their health and wellbeing benefits. They are also acknowledged by the US Food and Drug Administration (FDA) as general wellness products as per section 513(g) of the FD&C Act.

• At this year’s INDEX from October 19th to October 22nd, Truetzschler Nonwovens, Truetzschler Card Clothing and Voith introduce new solutions for manufacturing a broad range of sustainable nonwovens for wipes, hygiene or medical textiles at booth 2327.

Plastic-free initiatives worldwide affect everyone: consumers, product developers, nonwoven producers and finally nonwoven machinery suppliers.

Truetzschler Nonwovens and Voith address the quest for more sustainable and affordable nonwovens in the wipes segment by two proven technologies for manufacturing pulp-based nonwovens. Firstly, WLS (Wet-Laid/Spunlaced) lines. More than a handful are in service worldwide and mainly target the flushable wipes market. At INDEX we’ll introduce our latest nextLevel/WLS baby and body wipes, a joint development by Voith and Truetzschler.

The second focus is on carded/pulp (CP) products. A CP line – including a TWF-NCT card placed between the HydroFormer and the AquaJet is already running to full capacity at customer site. Various CP materials, including innovative nextLevel/CP wipes, will be on display at the booth and invite visitors to discuss characteristics, benefits, line concepts and equipment.

When talking sustainable nonwovens, solutions for efficiently manufacturing biodegradable nonwovens from virgin cotton fibers, comber noils and viscose/lyocell fibers must not be missing. Visitors can look forward to directly comparing cotton nonwovens to a broad range of cellulose-based material.

Truetzschler Card Clothing, our in-house competence center with respect to card clothings and comprehensive service, presents its latest development, the Z wire for high-speed roller cards. A new geometry minimizes fiber fly and allows for better carding and more stable web forming.

Originally conceived as a low-cost, high-volume alternative to knitting and weaving, nonwovens was already expanding its market boundaries by the 1970s with new applications in ‘disposables’ such as diapers, hygiene and teabags.

In the past five decades, the nonwovens business has exploded in all directions, reaching a global market worth USD 40.5 billion in 2020, projected to grow to USD 53.5 billion by 2025. This annual growth rate of 5.7% (MarketsandMarkets, Nonwoven Fabric Market Report) is based on countless new applications and expansion into durable, as well as additional disposable, products.

Major growth drivers include the hygiene sector, and filtration media for power plants and air conditioning systems. Especially during the peak of the COVID pandemic in 2020 and 2021, demand in the hygiene sector multiplied. Worldwide capacities for both meltblown and spunlace production rocketed compared to a normal business year. Swiss Autefa Solutions, for example, significantly benefited from this trend, notably with the launch of a fully-automatic machine for producing face masks.

The automotive industry is the second big growth area, with many new applications being pioneered. The trend to electric and hybrid vehicles has helped this, as nonwovens reinforced with carbon fibres are widely used as battery housings.

Swiss nonwovens competence
Innovative applications across all sectors have driven the rapid evolution of sophisticated nonwovens machinery. Today’s trends demand higher productivity, sustainability and Industry 4.0 compatibility – demonstrated by the full equipment portfolio of Swiss Textile Machinery member Autefa Solutions. With V-Jet Futura, the company recently sealed the link in its product range between web forming and drying technology. This latest Hydroentanglement Machine, together with the SQ-V Square Drum Dryer, embodies advanced technology combined with significant reductions in energy consumption compared to other process solutions.

A vital contribution to nonwovens production is offered by Rieter subsidiary Graf, a leading supplier of clothing and combs for carding and combing processes in spinning and nonwovens. Graf's Hipro card clothings – suitable for any man-made fibres in the nonwovens sector – are focussing on higher productivity. Their superior performance delivers up to 10% higher throughput and greater carding efficiency compared to conventional clothings. These reliable card clothing elements also ensure a consistently reproducible high web quality, as well as 20% fewer failures in the web, thanks to the precise fibre transfer to and from the cylinder.

Another constant trend in nonwovens today is the drive for better quality. Manufacturers want to take charge of contamination levels in their processes, as well as eradicating defects which may arise during production. Uster Technologies, a leading provider of quality management solutions from fibre to fabric, offers a combined solution to achieve both these required quality standards. At the fibre preparation stage, Uster Jossi Vision Shield N ensures the best possible initial inspection and removal of contamination. Then, at the end of the production sequence, Uster EVS Fabriq Vision N handles automated detection and marking of all the main defects caused during production. This combined solution avoids material waste and takes full advantage of the potential for process optimization.

There has been a sharp rise in demand for organic cotton products. Compared to conventionally grown cotton, the cultivation of organic cotton requires the renunciation of genetically modified seeds, chemical pesticides or fertilisers. Nevertheless, genetic modifications are repeatedly found in textiles that are falsely labelled with organic claims. Often, available certification systems are not backed up by lab testing. At best, they only take random seed samples. Textile testing specialist, Hohenstein, has developed an assessment method specifically for cotton. This new DNA analysis method makes it possible to ascertain the amount of genetically modified cotton contained in products. This is good news for textile industry stakeholders who will be on the safe side in terms of quality control and labelling of organic cotton products.

First step: qualitative screening and identification. Second step: quantification of genetically modified cotton.
For qualitative screening, Hohenstein experts had developed molecular biological detection systems to make clear yes/no statements about genetically modified cotton. Testing can be applied to all kinds of materials, from raw cotton to chemically untreated yarns and fabrics. In addition, Hohenstein is one of only a few laboratories in the world accredited to test for GMOs in accordance with the ISO/IWA 32:2019 protocol. Its method provides reliable evidence of the presence or exclusion of genetic modification in cotton textile precursors.

Once qualitative proof of genetic modification is obtained, Hohenstein experts begin quantifying the type and extent of the genetic modifications. To do this, they use DNA analysis to search for different cotton lines known to contain genetic alterations and quantify the proportion. Only by pinpointing individual genetic modifications and quantifying the extent of modification is it possible to provide precise information on whether there is an extremely small proportion of contamination, or whether larger proportions of GMOs have been mixed in. This offers clear benefits to manufacturers, brand owners and retailers when it comes to supply chain transparency and fraud prevention.