From the Sector

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber, yarn and fabrics to finished sewn products, issued the following statements from NCTO President and CEO Kim Glas and several U.S. textile executives in support of President Trump’s order closing de minimis for China, effective May 2.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas

“We are grateful to President Trump and his administration for closing the destructive de minimis loophole that has allowed unsafe and illegal Chinese goods—including goods made with forced labor—to flood the U.S. market duty-free and largely unchecked for years.

“This loophole, largely exploited by Chinese e-commerce giants and others to skirt U.S. tariffs, regulations and laws, has contributed to the closure of 28 textile mills in the past 22 months.

“The U.S. textile industry is a critical and strategic sector, supplying more than 8,000 products to the U.S. military, as well as industrial and commercial markets, while supporting local communities across country, and employing 471,000 workers nationwide.

“Today’s action by the administration is an important step forward to help rebalance the playing field for American manufacturers, preserve good-paying American manufacturing jobs, spur more investment and innovation in manufacturing facilities here at home, and close the backdoor to China once and for all.

“We urge the administration and Congress to move swiftly to end de minimis for commercial shipments from all countries to prevent circumvention and to make sure Made in China products cannot enter the United States through third countries. The U.S. textile industry stands ready to assist the administration as it continues its work to end the de minimis exemption and implement this critical provision.”

Anderson Warlick, Chairman and CEO of Parkdale Mills
“The de minimis loophole has impacted our businesses and our workforce significantly. Roughly half of de minimis shipments contain textile and apparel products which get an unfair competitive advantage at our expense. Illegal products like fentanyl and products made with Uyghur forced labor come into the United States under the de minimis exemption, causing economic damage and impacting the lives of many Americans.

“I am pleased to see President Trump take action to eliminate de minimis for products from China, and I encourage the administration to end de minimis for imports from all countries so we textile manufacturers can compete on a more level playing field.”

Amy Bircher Bruyn, CEO & Founder of MMI Textiles
“The de minimis loophole has wreaked havoc on the U.S. textile industry by enabling duty-free access for massive volumes of fast fashion imports, largely from China. This policy undermines American manufacturers who play a critical role in our national security and industrial resilience.

“At MMI Textiles, we employ 39 direct team members and support an additional 21 indirect workers — including a printer of camouflage patterns who operates exclusively within our NC facility, summer interns who represent the next generation of textile leaders, and specialized industry consultants. More broadly, through our robust contract manufacturing network, we directly support hundreds of jobs across the U.S. supply chain. Our company is a catalyst for employment and innovation in domestic textiles, producing essential components for U.S. military and law enforcement applications.

“The U.S. textile industry is vital to our nation’s industrial base. We supply the U.S. military, and during the COVID-19 pandemic, our industry pivoted rapidly to manufacture lifesaving PPE for frontline workers. Despite these contributions, the current de minimis threshold has created an unfair advantage for foreign competitors, particularly China, by allowing them to bypass duties and flood the market with underpriced goods — at the direct expense of American jobs.

“I am encouraged by President Trump’s commitment to ending de minimis eligibility for Chinese imports. I urge the administration to move swiftly to eliminate this loophole for all imports and restore a level playing field that protects U.S. manufacturing, jobs, and national security.”

Ron Sytz, CEO of Beverly Knits
“I am truly thankful to President Trump for closing the de minimis loophole for Chinese imports. This loophole has been devastating to my family’s 44-year-old textile manufacturing business in Gastonia, North Carolina, forcing us to lay off 175 workers and significantly reduce capacity in our plants. We can’t compete against subsidized imports from China that enter the U.S. duty free through the de minimis loophole. With the administration’s action, our company which provides hundreds of jobs and supports our community and the U.S. economy, will once again have a level playing field that will allow us to expand, invest and hire more associates here in the United States.”

The European Chemicals Agency brings forward a proposal for an EU-wide restriction on certain hexavalent chromium, Cr(VI), substances. The aim is to reduce the harmful effects of these carcinogenic chemicals for both workers and the public.

At the request of the European Commission, ECHA has assessed the risks posed by certain Cr(VI) substances to workers and the public as well as the socio-economic impacts of potential restrictions.

The Agency concluded that an EU-wide restriction is justified as Cr(VI) substances are among the most potent workplace carcinogens and pose a serious risk to workers’ health. People living near industrial sites that release these substances into the environment are also at risk of lung and intestinal cancers.

ECHA proposes to introduce a ban on Cr(VI) substances, except in the following use categories when they meet defined limits for worker exposure and environmental emissions:

1. Formulation of mixtures
2. Electroplating on plastic substrate
3. Electroplating on metal substrate
4. Use of primers and other slurries
5. Other surface treatment
6. Functional additives/process aids

Such a restriction could replace the current authorisation requirements under REACH, ensuring that the risks associated with Cr(VI) substances are effectively controlled once they are no longer subject to REACH authorisation. Additionally, barium chromate is included in the scope of the restriction to avoid regrettable substitution.

The restriction could prevent up to 17 tonnes of Cr(VI) from being released into the environment and avoid up to 195 cancer cases each year. Over 20 years, the total monetised benefits are estimated to be €331 million or €1.07 billion, depending on the restriction option chosen. The total cost to European society is estimated at either €314 million or €3.23 billion. These costs include investments in measures to reduce environmental releases and worker exposure, cost of closures and relocations, and replacing Cr(VI) substances with safer alternatives.

All stakeholders have the opportunity to provide information backed by robust evidence during a six-month consultation, which is expected to start on 18 June 2025. ECHA is planning to organise an online information session to explain the restriction process and help stakeholders take part in the consultation.

Next steps
ECHA’s scientific Committees for Risk Assessment and Socio-Economic Analysis will evaluate the restriction proposal. In their evaluation, they will consider the scientific evidence received during the consultations.
The European Commission, together with the 27 EU Member States, will take the decision on the restriction and its conditions – based on ECHA’s proposal and the committees’ opinion.

ECHA is the EU’s chemicals agency responsible for implementing EU chemical regulations.

Archroma, a global leader in specialty chemicals, has successfully implemented a state-of-the-art Zero Liquid Discharge (ZLD) technology at its Mahachai plant in Thailand. The ZLD solution was designed and built by Gradiant, a global leader in advanced water and wastewater treatment. This milestone project marks a major leap forward in water circularity, enabling the recovery of 90-95% of wastewater for reuse and the extraction of valuable minerals for industrial applications.

Archroma partnered with Gradiant to deploy a high-efficiency, membrane- and oxidation-based ZLD solution, reinforcing its commitment to responsible water management in the textile industry. Located in a water-stressed region near Bangkok, the Mahachai plant now serves as a model for sustainable textile dye production, significantly reducing reliance on local water supplies while improving environmental resilience.

As part of its broader sustainability endeavor, Archroma addresses critical challenges within the apparel and textile industry, particularly water consumption. “We believe in reducing water use in production and home laundering. We innovate to remove toxins and contaminants from our products, making wastewater treatment easier for our plants and customers,” said Dhirendra Gautam, VP Global Marketing and Strategy, Archroma. “Our goal is to require our plants to have effective water conservation facilities with special focus on water stressed areas, contributing to water conservation and helping to combat acute water scarcity worldwide.”

Since 2019, Archroma has evaluated various ZLD solutions to address growing water challenges in Thailand. Gradiant’s Counterflow Reverse Osmosis (CFRO) was selected as the preferred technology for its ability to treat diverse wastewater compositions with superior efficiency and minimal energy consumption. The modular system seamlessly integrates with the plant’s existing wastewater treatment infrastructure, maximizing desalination capacity and water recovery while reducing the plant’s environmental footprint.

In addition to CFRO, Gradiant’s Free Radical Oxidation (FRO) technology has been deployed to remove color and organics from the RO concentrate, ensuring safe discharge and meeting stringent environmental regulations. The system also enables the recovery of concentrated brine, which Archroma repurposes within the dyeing process or supplies to industry partners for applications such as resin regeneration and chlorine production, further promoting a circular economy in water and resource management.
Thailand faces mounting water stress due to climate change, extreme droughts, and aging infrastructure, making sustainable water management an urgent priority. By implementing Gradiant’s ZLD solution, Archroma significantly reduces its dependence on freshwater sources, ensuring long-term operational resilience in a resource-constrained environment.

This multi-million-dollar investment underscores Archroma’s dedication to water conservation and its broader mission to transform the textile industry through sustainable innovation. Beyond Thailand, Archroma continues to expand its ZLD initiatives globally, including its Sustainable Effluent Treatment (SET) plant in Jamshoro, Pakistan, which has been providing irrigation water to surrounding communities.

The National Council of Textile Organizations (NCTO), National Chamber of the Textile Industry (CANAINTEX), and Canadian Textile Industry Association (CTIA) issued a joint statement urging President Donald Trump to reach a deal with Mexico and Canada to avoid imposing 25 percent tariffs on imports from these countries and to close the de minimis loophole immediately.

“All three of our countries are partners in a vital textile and apparel coproduction chain that generates $20 billion in two-way trade and helps support over 1.6 million jobs under the United States-Mexico-Canada Agreement (USMCA) — a trade deal that was negotiated during President Trump’s first term in office,” the associations said.

The U.S. textile industry ships $12.3 billion, or 53 percent, of its total global textile exports to Mexico and Canada. Those inputs come back as finished products to the United States under the USMCA.

Mexico exports $9 billion in textile and apparel to the United States. Mexico is the 4th largest exporter of textiles and the 6th largest exporter of apparel to the United States.

Canada exports approximately $1.8 billion in textiles and apparel to the United States and Mexico, with the United States being the destination for 64 percent of its total global textile export, including high-quality flame-resistant materials and medical equipment including PPE.

“While we fully support President Trump’s efforts to stem illegal migration and to address the fentanyl crisis as quickly as possible, we urge the administration to refrain from imposing penalty tariffs on imports from USMCA partners. We are focused on ensuring a normalized trading relationship between our countries,” said NCTO President and CEO Kim Glas. “Imposing penalty tariffs on imports from critical U.S. free trade agreement (FTA) partners will only serve to benefit China and other Asian countries that don’t play by the rules and to harm the U.S. textile industry and manufacturers in our Western Hemisphere supply chains.”

“As part of any deal with Mexico, Canada—and China—we also call on the Trump administration to end the de minimis tariff exemption immediately for imports from all countries. This loophole in U.S. trade law, which allows imports valued at $800 or less to enter the United States duty-free hurts our textile and apparel industries, rewards countries like China, and helps facilitate the flow of illegal and toxic products, such as fentanyl and fentanyl precursors into the U.S. market,” Glas added.

“Despite steps taken by our countries to prevent the importation of goods that are undervalued, made with forced labor or transshipped, we have seen firsthand how the Asian market has gained an unfair advantage through predatory trade practices, displacing companies and workers in our industries and undermining our critical coproduction chain,” said Rafael Zaga Saba President of CANAINTEX.

“Canada is seeking to preserve our strong coproduction chain with Mexico and the United States which spurs investment, trade and employment in our three countries,” said Jeff Ayoub, Chairman of the Board of CTIA. “These additional tariffs would harm our industries and workers, and we urge President Trump stop these expected tariffs from being imposed.”

“We look forward to working closely with the Trump administration and continuing to educate officials about the adverse impact of penalty tariffs on imports from Western Hemisphere countries and de minimis on our industries and workers, while highlighting the critical nature of our strong coproduction chain, which contributes to our overall investment, job growth, and economic stability,” the associations jointly added.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile and apparel supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

CANAINTEX is a Mexico City-based trade association representing Mexican textile producers.

• The textile industry in Mexico provides over 1.1 million jobs.
• Mexican textile exports are projected to reach 9 billion USD in 2024.
• Mexico is the 4th largest exporter of textiles and the 6th largest exporter of apparel to the United States.
• One out of every three pairs of pants sold in the U.S. is made in Mexico.
• With 36% domestic content in its exports, the textile industry generates the highest value-added of any manufacturing sector in the country.

CTIA represents domestic textile manufacturers across Canada, advocating for policies that support innovation, sustainability, and growth in the sector.

• The Canadian textile industry employs approximately 30,000 textile and apparel workers.
• The total value of shipments for Canadian textiles and apparel was approximately C$7.5 billion in 2023.
• Canada exported approximately US$2.66 billion in textiles in 2023, with 64% (US$1.71 billion) going to the United States.

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, welcomes the European Commission’s Clean Industrial Deal, which aims to pave the way for a sustainable, climate-neutral and competitive industry. Commission President Ursula von der Leyen discussed the initiative on Wednesday, February 26, 2025, together with 400 business leaders, including the CEO of the Lenzing Group, Rohit Aggarwal, in Antwerp (Belgium). The industry is calling on EU heads of state and government to take urgent measures in all EU member states without delay ahead of the upcoming European Council meeting in March.

“International trade tensions, volatile energy markets, and the need to decarbonise industries demand urgent collective action. We must continue to support Europe’s green leadership and ensure that those investing in sustainability are incentivised. We must act now, work together and translate ambition into tangible results”, emphasizes Rohit Aggarwal, CEO of Lenzing Group. “The Clean Industrial Deal is an important initiative for Europe’s industrial and sustainable future. It will strengthen Europe’s net-zero industry, expand green technology manufacturing, and enhance industrial competitiveness.”

One important aspect is access to affordable and clean energy, which is crucial for the global position and competitiveness of the industry.

“We appreciate the Commission President taking the time to join us today in Antwerp to present the Clean Industrial Deal. Nine out of ten calls of the Antwerp Declaration have been addressed. We need to transform Europe’s ambition ‘to be’, into a determination ‘to do’. Every day, Europe is falling behind its goals, and is losing quality jobs for our current and future generations of workers. In the turbulent times we are in we need bold action from the European Leadership,” said Ilham Kadri, President of the European Chemical Industry Council, Cefic.

Europe’s industries are facing historical challenges: declining demand, stalled investments, reduced capacity, and EU gas prices at 4 to 5 times higher than its competitors. Between 2023 and 2024, Europe’s manufacturing output – a sector employing over 31 million people – dropped another 2.6 percent. While for the chemicals industry – the industry of industries – Cefic’s recent study emphasised the severity, with over 11 million tons of capacity announced to be closed between 2023 and 2024, affecting 21 major sites.

To overcome these challenges, back in February 2024, 73 business leaders presented the Antwerp Declaration to Commission President, Ursula von der Leyen and former Belgian Prime Minister Alexander De Croo. The Antwerp Declaration lays out 10 concrete actions to restore the business case for investments, to implement Europe’s sustainability ambitions and safeguard quality jobs in Europe. It is now signed by over 1,300 signatories.

“Reading the Clean Industrial Deal, we need the Commission to focus, prioritise the three key actions that improve our situation already this year and put all power, boldness and bravery in the European Commission behind these. And give us a realistic planning for the remaining actions. When we say actions, we mean action, not strategies, policies or plans. Leave no stone unturned and break all taboos. We need the situation to change.” Marco Mensink, Cefic Director General.

“Cefic calls on all new EU initiatives to be evaluated against the following criteria: Do they keep Europe safe and independent, reduce energy prices, ease the administrative burden on companies, attract investments to Europe, create markets for sustainable products, and safeguard quality jobs in Europe? If the answer to any of these questions is no, EU policymakers should reconsider and revise the proposal accordingly.”

As the global demand for technical textiles surges, India is emerging as a key hub for innovation and growth. Recognizing the vast potential of this evolving market, Messe Frankfurt Trade Fairs India announced a collaboration for ‘Techtextil India - the country’s premier platform for the technical textiles industry with Austrian Fibers Institute. This strategic alliance between the two-leading platforms in technical textiles will bring the Asia edition of the renowned Dornbirn GFC at a part of Techtextil India Symposium in 2025.

The 10th edition of Techtextil India 2025 which is scheduled from 19 – 21 November 2025, at the Bombay Exhibition Centre, Mumbai, will open its doors for the Dornbirn Global fiber congress Asia on 18th November 2025 to be held under Techtextil India Symposium.

The Dornbirn GFC Asia in India 2025 will spotlight on theme titled as ‘Shaping the future: Sustainable Growth in Fiber Solutions and Innovations’. The conference will be led by globally acclaimed subject matter experts, researchers, manufacturers and thought leaders.

The GFC Asia – India Conference will host a diverse line-up of speakers from India and around the world, showcasing cutting-edge innovations and expertise in the fiber and textile industry. The discussions will spotlight ground-breaking advances in spinning technology.

Driven by intensive research and development, the upcoming edition of the Techtextil India will present the innovative strides made by the industry players. From various stages of production of man-made fibre, non-woven and others, to the evolving applications and maintenance methods, the expo will be a source of upgrading knowledge and expanding the network.

Techtextil India 2025 edition is already sold out and has witnessed a strong interest from leading global brands who have signed up to exhibit. Indian government is aiming for the technical textile market to reach USD 40 billion by 2030 and total exports targeted are USD 10 billion by 2030. The Indian government and the industry players are confident that India will soon become the world leader in manufacturing of technical textiles. Schemes like National Technical textiles Mission (NTTM) and Technology Upgradation Fund Scheme (TUFS) are offering the benefits to industry stakeholders. Under NTTM, the government is focusing on 156 R&D projects for driving innovations. The government is also encouraging Foreign Direct Investments (FDIs) to boost the segment.

The growing focus on sustainability and circularity in textiles is opening up new avenues encouraging reuse, repairing, refurbishing and recycling of the products. Indian government and technical textile educational programmes are witnessing a growth to impart knowledge and skills across categories like medical textiles, mobile textiles, geotextiles, geosynthetics and etc., which represent an attractive future. Applications ranging from medical textiles to sportswear, automotive to construction and environmental sustainability are driving the demand for high-performance materials.

Amidst this backdrop, the collaboration of Dornbirn GFC and Techtextil India 2025 marks a pivotal step in positioning India as a global hub for technical textile innovation and strengthening cross-border knowledge exchange. With the technical textiles market poised to redefine industries, Techtextil Symposium India will also present Meditex Conference during the event.

INDA, the Association of the Nonwoven Fabrics Industry, and EDANA, the Voice of Nonwovens released the Global Nonwoven Markets Report, A Comprehensive Survey and Outlook, 2023–2028, it is now available for purchase through both INDA’s and EDANA’s websites.

This latest edition offers a comprehensive analysis of global nonwoven macro drivers, supply and demand trends, and an expanded regional trade section. The report forecasts a steady growth in demand for nonwovens across key sectors over the next five years.

Key Insights from the Report Include:

• Production Growth
  From 2013 to 2023, nonwoven production increased at an annual rate of 5.4%, with significant growth driven by the spunlaid and needlepunch processes.
• Regional Production
  China led global production growth, contributing an additional 4.5 million tonnes from 2013 to 2023—a remarkable 9.4% annual growth rate.
• End-Use Expansion
  Wipes, medical, and transportation segments experienced the fastest expansion among nonwoven end-use applications.

“The global nonwovens industry is changing in a positive way with moves toward innovation and sustainable products,” said the report’s co-authors Jacques Prigneaux, Market Analysis & Economic Affairs Director at EDANA and Mark Snider, Chief Market and Industry Analyst at INDA.

This report offers a detailed breakdown of regional demographics, production forecasts, technological advancements, and investment outlooks for North America, Greater Europe, Asia, and South America. Additionally, it includes an economic trade analysis, end-use segmentation, and insights into future industry trends.

“As strategic partners, INDA and EDANA are committed to sustained growth and innovation within the entire nonwovens supply chain. This report presents our collective best estimate on future demand, predicated on sound macro-economic analysis,” said INDA President Tony Fragnito. “This Global Nonwoven Markets Report is an essential planning resource for all those involved in strategic planning within the nonwovens supply chain.”

“The demand for reliable market information and forward-looking data is a vital ingredient for thriving a successful business. This new report, developed by our two leading nonwovens industry associations, draws on decades of experience, close observation, and direct data collection from hundreds of companies," stated EDANA General Manager Murat Dogru. "Created by the industry for the industry, it stands as a unique, authoritative, and reliable resource on nonwovens data than any other report.”

Fabtex Georgia 2024 International Textile Industry Fair has concluded with remarkable success, bringing together over 1,050 professional visitors from 11 countries, including Georgia, Russia, Armenia, India, China, Ukraine, Germany, Iran, Turkey, Poland, and Pakistan.

This year’s exhibition featured 52 exhibitors from Georgia, Turkey, Azerbaijan, the UAE, Uzbekistan, and China, underscoring the event's international significance.

The exhibition's exhibitor profile primarily focuses on knitted fabrics, woven fabrics, fabrics for workwear and uniforms, various accessories, garment and sewing machinery, and ready-to-wear items.

Georgia has a long-standing tradition in the textile sector, dating back to Soviet times, and is currently home to production for international brands such as Tommy Hilfiger, Zara, Moncler, and Puma.

Georgia’s strategic location at the crossroads of Western Asia and Eastern Europe, coupled with its rich textile history, makes it an ideal hub for textile manufacturing and investment. The country boasts several Free Trade Agreements (FTAs) with Turkey and CIS nations, as well as a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, providing access to a market of approximately 900 million people without customs duties.

Global Fashion Agenda (GFA), supported by its Insight Partner, Maersk, has released a new report, Reverse Logistics for Circular Fashion Systems. The report expands on how fashion brands, retailers, value chain partners, and logistics providers can leverage reverse logistics to cultivate an effective and holistic circular fashion system.

The publication is the culmination of extensive research, including consultations with and input from eight experts from eight brands and organisations - Maersk, Nike, H&M Group, Target, PUMA Group, Ellen MacArthur Foundation, VF Corporation, and Circle Economy Foundation. It highlights the critical role of logistics in supporting fashion companies to adopt more circular systems by managing the reverse flow of materials and products from end-users, and returning them back into the system for resale, remaking or recycling, extending their lifecycle, maximising value, and minimising waste.

Over 520 global regulations are currently in place, urging companies to rethink their sourcing and design strategies, emphasising regionalisation and circularity. Moreover 45% of brands surveyed by Global Fashion Agenda and the United Nations Environment Programme earlier this year reported that they have set targets to derive at least 10% of their revenue from circular business models by 2040. However, despite the potential, the fashion industry lacks a comprehensive system for circularity, with current fragmented approaches failing to achieve commercial viability. Deeper collaboration with logistics partners can support more streamlined operations, while aiding compliance with tightening regulatory requirements and in demonstrating positive environmental impacts.

To guide stakeholders, the publication outlines essential elements for implementing effective reverse logistics, including:

• Network design: Expanding reverse logistics beyond consumer returns to capture and valorise post-industrial textile waste flows and unsold goods.
• Financial ownership: Establishing clear financial models to define roles, responsibilities, and profit-sharing, enhancing collaboration and investment.
• Boosting collection volumes: Developing infrastructure for efficient collection and processing of textile waste, essential for scaling solutions and reducing recycled fibre costs.

Indorama Ventures Public Company Limited (IVL) reported a slight rise in quarterly performance, supported by a gradual recovery in sales volumes and as management executes the company’s IVL 2.0 strategy to optimize its manufacturing model, reduce costs, and enhance competitiveness.

Indorama Ventures’ reported Adjusted EBITDA  of $370 million in 2Q24, a 1% rise QoQ and a decline of 11% YoY. The company’s sales volumes increased 1% YoY due to subdued economic activity, but also signaling the end of a prolonged period of destocking that began in late 2022. Operating rates for the group increased from 74% to 76% in 1H24, although still at lower-than-average levels, signifying the weak global economic conditions. On a proforma basis, considering asset optimization actions, operating rates increase to 81%.

The Indovinya segment posted a robust performance on improved margins and rebounding demand for its high value-add downstream products. The packaging business, newly renamed ‘Indovida’, also performed well due to its leading footprint in emerging markets.

Looking ahead, Indorama Ventures is encouraged by the gradual improvement in the operating environment as customer inventory levels normalize, which is expected to spur further growth in volumes across all segments in 2H24. The company also expects to benefit in 2H24 from its shale gas advantage in the U.S, reflected in ethylene crack margins, positively impacting its integrated MEG business. Continued higher import prices in Western markets will enhance the company’s competitiveness as a leading local operator.

While the polyester industry manages the downcycle, Indorama Ventures’ experienced management team is working hard to deleverage and optimize the business under the company’s IVL 2.0 strategy to emerge stronger and drive enhanced earnings quality in an era of higher interest rates and a substantially changed industry landscape. As flagged at its Capital Markets Day on 6 March this year and reaffirmed in its Mid year strategic update on 24 July, the company is making substantial progress with IVL 2.0. In 2Q24, it recorded an impairment and expense provision of $666 million ($543 million is non cash) under its asset optimization program to improve manufacturing efficiency and reduce fixed costs. The cost benefits will start from 3Q24 and amount to about $170 million in savings in 2025. The company expects that the remaining asset optimizations will not have material impairments.

Management is continuing its intense focus on managing costs and extracting efficiencies, including its Olympus 2.0 program. These efforts achieved $47 million in savings in 1H24 ($29 million in 2Q24). The company is continually optimizing its capital expenditure, with capex supporting investments in sustainability—such as recycling in India—and automation and digital technology, as well as ongoing projects.

A key part of Indorama Ventures’ transformation journey is the implementation of new digital and AI tools to drive operational excellence in key areas, including manufacturing, commercial, procurement, sales, supply chain, and finance excellence. A significant portion of operations now have the new SAP S/4HANA ERP platform as a digital core, while rollouts of other world-leading solutions are ongoing in a phased approach through to 2026.

Segment Performances
The Combined PET (CPET) with Intermediate Chemicals segment posted an Adjusted EBITDA of $234 million in 2Q24, a 6% decline QoQ and a 25% decrease YoY, due to a one-time upside impact from a campaign run of NDC campaign in 1Q24 and as reduced industry spreads weighed on the Integrated PET business. A cracker outage at Lake Charles in the U.S also resulted in a $17-18 million impact to EBITDA. The cracker is gradually up and running in 3Q24.

The Indovinya segment recorded a strong Adjusted EBITDA of $98 million, a 41% gain QoQ and 85% YoY on increased volumes as destocking eased, supported by demand for downstream chemical surfactants amid the U.S crops season.

The Fibers segment recorded Adjusted EBITDA of $39 million, a 2% rise QoQ and a 19% gain YoY amid improved sales strategies and a robust focus on cost management, even as volumes declined, particularly in the Lifestyle business.