From the Sector

At the "International Conference on Cellulose Fibers 2024" in Cologne, Germany, the Nova Institute for Ecology and Innovation awarded first place in the Innovation Prize to the project partners of the EU-funded HEREWEAR project. They presented a dress made of cellulose fibers, which is entirely made of straw pulp.

HEREWEAR is an EU-wide research project that brings together partners from research and industry. They are working to establish a European circular economy for locally produced textiles and clothing made from bio-based raw materials.
The HEREWEAR consortium consists of small and medium-sized enterprises and research institutions. HEREWEAR covers all the necessary expertise and infrastructure from academic and applied research and industry from nine EU countries.

The HEREWEAR approach includes technical and ecological innovations in the production of fibers, yarns, fabrics, knitwear and garments, as well as the use of regional value chains and the circular development of fashion items.

New technologies for wet and melt spinning of cellulose and bio-based polyesters, e.g. PLA, from which yarns and fabrics are produced, form the technical basis. Coating and dyeing processes have been developed and tested as part of the project. In addition to reducing the carbon footprint of the product, another environmental goal is to reduce the release of microfibers throughout the textile manufacturing process and life cycle.

Improving the sustainability and recyclability of the developed garments is ensured by design for circularity and digitally networked production means. On-demand production is realized in so-called "microfactories", which are individualized and produce only for actual demand. This production method can be achieved through regional, networked value chains and enables the traceability of materials and manufacturing processes.

The dress presented at the award ceremony is an example of the cooperation and the different qualifications of the project partners: TNO (Netherlands Organization for Applied Scientific Research) provided sustainably produced pulp. The HighPerCell fibers were produced in DITF's spinning facilities. At the same time, designers from the fashion label Vretena created the design for the flexible, two-piece dress, which can be knitted without cutting waste. DITF textile experts worked with the designers to develop the knitting pattern. DITF textile engineers and technicians produced the knitted fabric and assembled the dress at the institutes’ technical center. DITF computer scientists and engineers created the "value chain" and "digital twins" for digital traceability of the production processes.

The innovation prize was awarded to the HEREWEAR consortiu for their joint achievement. Representatives of DITF Denkendorf and Vretena accepted the award on behalf of the EU project partners.

• Solvay’s FY 2023 financial statements reflect the Partial Demerger completed on December 9, 2023, with the Specialty businesses transferred to Syensqo classified as discontinued operations for 2023.
• New Solvay leadership team committed to drive the transformation of the company.
• Net sales for the full year 2023 at €4,880 million were down -12.6% organically versus 2022, driven primarily by volume declines. In Q4, net sales decreased organically by -18.9% from both lower volumes and prices.
• Underlying EBITDA of €1,246 million for the full year 2023 was stable (+0.2%) on an organic basis compared to a record 2022, with positive Net Pricing and lower fixed costs offsetting the drop in volumes. EBITDA in the fourth quarter was down -24.5% organically vs Q4 2022, fully driven by lower volumes, with variable costs reduction offsetting price erosion, while fixed costs decreased slightly.
• Underlying net profit from continuing operations was €588 million in 2023 compared to €740 million in 2022.
• Free Cash Flow of €561 million in 2023 (+17.3% vs. €479 million in 2022) resulting in a record FCF conversion ratio of 45.4%, thanks to the strong EBITDA performance and to the positive impact from working capital variation.
• ROCE was 20.4% in 2023, -2.5pp compared to 2022 as a result of lower profit.
• Solid balance sheet at the end of December 2023, in line with the target capital structure announced in November 2023, with an underlying net debt of €1.5 billion, which translates into a leverage ratio of 1.2x.
• Total proposed gross dividend of €2.43 per share, subject to shareholders’ approval during the next Ordinary General Meeting of May 28, 2024.
• Solvay continues to reduce its GHG emissions (-19% vs 2021, scope 1 and 2).
• 2024 Outlook: Organic growth of the underlying EBITDA of -10% to -20% compared to restated 2023; Free cash flow of minimum €260 million

2024 outlook
Across its product portfolio, Solvay expects current demand levels to continue over the next few months and, as such, expects H1 2024 volumes to be broadly in line with H2 2023. At this point, there is little visibility on the second half of the year, however there are signs that the trend in the second half could improve. Solvay expects Soda Ash prices over FY 2024 to be lower than FY 2023, consistent with the current market environment, which will affect the business margin in 2024. Pricing trends across Solvay’s other businesses are forecasted to be more resilient year on year.

Lower energy and raw materials prices should offset some of the negative pressure on the topline. More importantly, Solvay has started to implement cost savings initiatives that will start to deliver results in 2024.

For full year 2024, Solvay expects an organic growth of the underlying EBITDA by -10% to -20% versus a high comparison base in 2023, especially in H1. This translates into a range of €925 million to €1,040 million at a 1.10 EUR/USD exchange rate.

The organic growth of the underlying EBITDA is calculated from a 2023 restated figure of €1,154 million (vs a reported figure of €1,246 million).

Free cash flow to Solvay shareholders from continuing operations is expected to be greater than €260 million, in line with the cash usage prioritization presented during the Capital Market Day in November 2023. It is supported by Solvay’s ability to manage its capex and working capital to ensure the financing of its businesses and the payment of dividends while keeping the strength of its balance sheet intact.

Solvay remains committed to implement its strategic roadmap and reconfirms its 2028 targets as communicated at the Capital Markets Day of November 2023.

Together with Cotton made in Africa (CmiA) and the cotton company MMP Agro, the GoodTextiles Foundation is realising a project to improve the drinking water supply in Uganda, Africa. Bio-sand-waterfilters are being installed to gently purify the water from existing sources. In addition, the partners are training the community's farmers and craftsmen in how to operate the water filters. They then learn how to build new water filters.

In 2016, the textile company Dibella established the GoodTextiles Foundation with the aim of making textile value chains more sustainable. It raises donations and implements its own funding projects to benefit people at all stages of the textile industry.

As part of a joint project between the GoodTextiles Foundation, the Aid by Trade Foundation (AbTF) (owner of the CmiA standard) and MMP Agro, farmers who grow CmiA cotton in the districts of Abim, Kaplebyong, Dokolo and Kaberamaido in north-east Uganda are now receiving a total of around 1,000 bio-sand-waterfilters. Around 1,000 CmiA farmers, mainly women and the members of their households (an estimated 10,000 community members) benefit from this.

Global Fashion Agenda (GFA) has collaborated with PDS Ventures to launch a new Trailblazer Programme. The new initiative seeks to identify early-stage innovators and support them on their journey to scale.

As part of the Trailblazer Programme, PDS Ventures will award one innovator a significant investment of up to USD 200,000* to accelerate the company’s growth and positive impact in the fashion industry. The winner will also receive commercial and operational support from PDS Group’s Positive Materials - a textile company and strategic research partner supporting the development and acceleration of low impact textile innovation through collaboration between early-stage start-ups, supply chain partners and brands. Further scaling opportunities will be gained through access to PDS Limited’s extensive global supply chain.
 
GFA and PDS Ventures are presenting an open call for solution providers addressing different challenges across the fashion value chain to apply for the programme. Applicants will be reviewed and shortlisted by an esteemed Jury including representatives from GFA, PDS Ventures, Massachusetts Institute of Technology (MIT), Ralph Lauren Corporation, Fashion For Good and H&M Group. Eight shortlisted innovations will be enrolled in a group of Trailblazers, receiving feedback and investment pitch training from industry experts and PDS representatives.     
 
Each shortlisted innovator will then pitch for a potential investment, with the winning Trailblazer being revealed at GFA’s Global Fashion Summit: Copenhagen Edition 2024 - an international forum for sustainability in fashion, on 22-23 May at the Copenhagen Concert Hall. All shortlisted Trailblazers will also have the opportunity to showcase their businesses within an exhibit at the Summit to connect with other key industry stakeholders and potential investors.
 
The Trailblazer Programme corresponds with the theme of the upcoming Global Fashion Summit - ‘Unlocking The Next Level’. Inspired by a significant milestone, 2024 marks 15 years since the inaugural Global Fashion Summit was hosted in 2009. This pivotal anniversary offers a special moment to not only take stock of the evolution of the sector and the progress made so far, but, most importantly, look ahead at what actions must urgently be implemented in the near term, and the gaps that must be filled to accelerate industry transformation.

Infinited Fiber Company has successfully completed a two-part development financing round totaling 40 million euros, with significant investments from new investors Inditex, TTY Management, Youngone and Goldwin, in addition to existing ones.

The new investors are Inditex Group, the parent company of Zara and other brands, and TTY Management B.V., an asset management company privately owned by Tadashi Yanai, Chairman, President and CEO of Fast Retailing. Outdoor clothing manufacturer Youngone (YOH CVC Fund 1 Limited Partnership) and Japanese sportswear manufacturer Goldwin (GOLDWIN Play Earth Fund Investment Limited Partnership) are also among the new investors who joined in the recent second closing of EUR 27 million.

The first part of the development financing round, closed in summer 2023, included investments from existing investors. Apparel companies H&M Group, adidas, BESTSELLER, and Zalando further reinforced their long-term commitment to Infinited Fiber. Also investment company VTT Ventures participated in the first closing, and investment companies Security Trading and Nidoco AB in both closings of the round.

After the development financing round, Inditex, TTY Management and H&M Group are the largest shareholders of Infinited Fiber Company.

• Autoneum is expanding its production capacities in Asia with two new plants in Changchun in the Chinese province of Jilin and Pune in Western India.

The world's largest automotive market Asia is one of the most important sales regions for vehicle manufacturers and suppliers as well as a pioneer for new forms of e-mobility. Autoneum already supplies both international and local vehicle manufacturers in Asia with multifunctional lightweight components for noise and heat protection, supporting them in their commitment to sustainable mobility. Autoneum is expanding its production capacities in the key automotive hubs of China and India to increase its presence and thus its proximity to customers in these important production centers.

Autoneum’s new plant in China, which will be operated as a joint venture, will be located in Changchun in the northern Chinese Jilin province, which is one of Asia’s largest car production centers. The proximity to key local and international vehicle manufacturers makes Changchun a strategically important and attractive location for Autoneum. The plant will help to increase market share with European, Japanese and Chinese car manufacturers with products for light vehicles and also support the expansion of the Company’s business with components for commercial vehicles in this region. The project is supported by the local authorities in China. From the end of 2024, the plant will ramp up production with first samples for already awarded business for inner dashes, interior floor insulators and other NVH (noise, vibration, harshness) components for cars of all drive types.

Autoneum is furthermore expanding its local presence in Western India with a fully owned production facility in Pune in the state of Maharashtra. The Company already operates two locations in India: one in Behror near New Delhi in the north and a joint venture plant in Chennai in the south. Thanks to the new Pune plant, Autoneum will now be present in the north, west and south of the country and gain access to the third of four major automobile production centers in India. Orders have already been received and the plant in Pune will start manufacturing carpet systems, interior trim, wheelhouse outer liners, e-motor covers and other noise protection components as of the second quarter of 2024. From the 7 500 square meter building, Autoneum will supply international as well as local car manufacturers with a particular focus on Indian and Korean vehicle manufacturers.

Archroma and Browzwear, a company of 3D digital solutions for the fashion industry, have expanded their partnership to bring the complete Color Atlas by Archroma® library of colors to Browzwear’s VSticher, Lotta and Stylezone platforms.

Designers will now have access to a total of 5,760 color references, with 1,440 colors for polyester added to Browzwear’s existing color library of 4,320 Color Atlas colors for cotton poplin. This will support them to collaborate across the entire supply chain, ensuring color consistency from digital design to production for cotton, polyester and blends.

Crucially, the color references in the Color Atlas by Archroma® have been formulated to comply with leading international eco-standards, allowing designers to select dyes and finishes that meet their desired sustainability profile. Each color is available as a physical color standard that includes precise dyeing recipes and compliance data, as well as access to expert technical support from Archroma around the world.

Highlights Q4 2023 (compared with Q4 2022)

• Revenue in constant currencies up 4% on higher volumes and pricing (reported revenue -3%)
• Operating income improved to €214 million (2022: €103 million)
• Adjusted operating income at €221 million (2022: €126 million); ROS at 8.7% (2022: 4.8%); €244 million before €23 million negative impact from hyperinflation accounting
• Net cash from operating activities positive €574 million (2022: €291 million)

Highlights full-year 2023 (compared with full-year 2022)

• Revenue in constant currencies up 5% driven by pricing (reported revenue -2%)
• Operating income improved to €1,029 million (2022: €708 million)
• Adjusted operating income at €1,074 million (2022: €789 million), despite €77 million adverse
• currency effects from translation; ROS at 10.1% (2022: 7.3%)
• Adjusted EBITDA at €1,429 million (2022: €1,157 million), despite €92 million adverse currency
• effects from translation
• Net cash from operating activities positive €1,126 million (2022: €263 million)
• Net debt to EBITDA leverage ratio improved to 2.7 (2022: 3.8)
• Final dividend proposed of €1.54 per share (2022: €1.54)

Outlook mid-term
For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence. The company aims to lower its leverage to around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.

Messe Frankfurt will extend its footprint in the Central Asian market by establishing seven brand events in Tashkent, Uzbekistan. The country’s strategic location as a crossroads of Europe and Asia positions it as a promising trade gateway and transportation hub, facilitating the economic development of neighbouring countries and access to the wider region. The company’s stronger presence in the market will promote business opportunities and foster the sustainable development of pillar industries, including cosmetics, textiles and clothing, automotive, logistics and transportation.

Uzbekistan has a promising consumer market with significant potential. It is the largest in Central Asia and is expected to increase due to population growth, rising incomes and the modernisation of economic and industry sectors.
 
The nation has actively sought to diversify its economy in recent years, undertaking reforms for greater entrepreneurial freedom and opening up to more international and regional cooperation. The country already exports precious metals, textiles and agricultural produce. It imports machinery, equipment, means of transportation, and vehicle components from foreign trading partners. Attracting overseas investment is also apparent through incentives such as tax benefits, reduced import duties and simplified procedures for overseas investors.
 
In addition, shifting global supply chains and trading patterns could also drive opportunities in the region. The nation benefits from its geographical location owing to its position between Asia and Europe, to which the Uzbek Government recognises the prospects of investing in infrastructure, such as transportation and logistics, to create an efficient transit hub. Against this backdrop, China acknowledges the importance of developing routes along the Belt and Road while Europe has expressed a readiness to support Uzbekistan’s efforts to diversify transport corridors.

Line-up of shows include:

• Automechanika Tashkent; Futuroad Expo Tashkent; and, Scalex Tashkent: 23 – 25 October 2024
• Heimtextil Uzbekistan; Texworld Tashkent; and, Apparel Sourcing Tashkent: 6 – 8 November 2024
• Beautyworld Central Asia: 21 – 23 November 2024

The European Chemicals Agency (ECHA) has published its Strategy Statement 2024-2028. The strategy details the agency’s goals and priorities over the next five years to protect health and the environment through its work for chemical safety.

Main elements of the Strategy – Goals and Priorities

Be a trusted chemicals agency – ECHA aims to achieve this by delivering its legal mandate using independent expertise and robust data. The Agency, to support this, will:

• Deliver transparent, independent, and high-quality scientific advice, opinions, and decisions;
• Enhance decision and policy making through optimal use of data, knowledge, and competence; and
• Facilitate the prioritisation and co-ordination of regulatory actions on substances and groups of substances with the European Commission (EC), EU agencies and Member State Authorities.

 
Respond to emerging challenges and changes in their legal landscape – ECHA will prepare for new tasks and inform EU chemical and environmental policy. To support this goal, it will focus on the following priorities:

• Implement new legal requirements using existing and new synergies and experience;
• Work with relevant EU agencies and bodies to deliver Chemical Strategy for Sustainability (CSS) actions and objectives; and
• Provide scientific and technical advice on chemicals to EU policy makers.

 
Communicate and Engage – by collaborating with stakeholders and partners, ECHA will strengthen public confidence in chemicals regulation. In support of this goal, the Agency will:

• Deepen their network of engagement with EU institutions and agencies and Member States;
• Collaborate and provide tools, advice, and support to industry; and
• Promote awareness and understanding of ECHA's work to stakeholders representing workers, the public and the environment.

 
Lead on chemical knowledge and expertise – the Agency will advance knowledge and understanding on chemical safety. To achieve this, it will:

• Contribute proactively to expanding scientific and technical competence and knowledge on chemical safety;
• Promote the development and use of alternative methods for the assessment of hazards and risks of chemicals; and
• Support the EC to enhance engagement and synergies at international level.

 
Invest in people and organisational excellence – ECHA is committed to working together to achieve their vision. In order to achieve this they will:

• Develop and empower their people for success;
• Create optimal ways of working for the Agency, its bodies, its people, and the environment; and
• Adopt an IT delivery model that is cost-effective, streamlined, modular, interoperable, cloud based and centralised.