From the Sector

• Strategic collaboration in a prominent location on Orchard Road
• TENCEL™ Studio will host showroom featuring fashion from TENCEL™ fibers
• Cooperation underpins new branding strategy to reach out to consumers
• Chain of innovation and application centers in Asia completed

Lenzing/Singapore – The Lenzing Group, world market leader in specialty fibers from wood, will partner with the Textile and Fashion Federation Singapore (TaFF) to offer Singapore’s designers a hub to present themselves and make the TENCEL™ brand more accessible to consumers. The collaboration was announced last week at the opening ceremony of Design Orchard attended by Chan Chun Sing, Minister for Trade and Industry of Singapore.

“Lenzing is excited to work with TaFF on The Cocoon Space and its programs. Our cooperation with fashion designers is an important element in showcasing the sustainability promise of our flagship brand TENCEL™ to consumers. It comprises an integral part of Lenzing’s commitment to green-up the fashion industry”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “Singapore is a strategic hub for Lenzing in Asia, and we are proud to contribute towards taking Singapore’s fashion scene to greater heights.”

• Innovative BCF S8 platform technology opens up new carpet yarn industry markets for Oerlikon Neumag customers

World premiere at the DOMOTEX World Trade Fair for Carpets and Floor Coverings in Hanover: between January 11 bis 14, 2019‎, Oerlikon Neumag will be showcasing its innovative new development, the BCF S8, to a wide audience for the very first time in Hall 11, Stand B36. Whether commodities or niche products – the new BCF S8 platform technology offers manufacturers of BCF carpet yarns decisive arguments for responding to constantly rising cost pressures and the trend for greater efficiency and quality in fiercely-competitive markets. World record: the system achieves never-seen-before spinning speeds and is able to simultaneously spin up to 700 filaments and produce fine titers of up to 2.5 dpf. This superlative performance is guaranteed by numerous individual innovations in the new platform and, for the first time, also in a new human-machine interface (HMI)-based control system, which opens the door to the digital age of smart carpet yarn manufacturing wide. At the ITMA ASIA 2018, the Oerlikon Manmade Fibers segment had already announced that it would be presenting revolutionary solutions in 2019 – both in hardware and software. And the DOMOTEX marks only the start.

According to manufacturer information, the new BCF S8 is the most efficient Oerlikon Neumag BCF system of all times. “We have succeeded in achieving a new level of greater productivity and even broader product diversity. These allow our clientèle to better cater to changing market requirements and achieve a competitive edge in tough market conditions”, explains Martin Rademacher, Vice President Sales Oerlikon Neumag. As a pre-taste, the machine specialists from Neumünster are serving up performance figures and results from comprehensive trials conducted at their own BCF technology center as well as from two pilot systems which have been tried and tested within the market for months now.

BCF S8 performance in numbers
With up to 700 potential filaments per yarn end, the BCF S8 is raising the benchmark considerably compared to the Oerlikon Neumag S+ BCF system (400 filaments) that has dominated the global market to date. Oerlikon Neumag guarantees fine titers of up to 2.5 dpf. Furthermore, the process speed is higher than ever before – 3,700 m/min (winder speed). This permits throughputs of up to 15 percent greater compared to predecessor technologies. Overall, system efficiency is 99 percent – almost unbeatable. True to the Oerlikon Segments Manmade Fibers segment e-save philosophy, energy savings of up to 5 percent per kilogram of yarn are achievable.

BCF S8 innovations – from straight yarn paths to large cooling drums

This comprehensive progress has been achieved with numerous smart innovations. To this end, one key element above all has been optimized. The yarn path from the spinning system to the new, large cooling drum has now been almost completely straightened. This yarn path, unique to the BCF market to date, ensures that the individual filaments are subjected to minimum friction, hence once again considerably reducing yarn breaks and optimizing the overall production process. Especially noteworthy here are the, for the first time, straight yarn inlet in the texturing head – guaranteeing superior yarn quality.

And the considerably reduced distance between the heating godet duo and the texturing head also has a positive impact on the texturing process. It ensures a more even twist to the yarn and reduces the compressed air consumption. Furthermore, the texturing chambers can be removed individually, which additionally shortens servicing times. The now closed units also provide the best possible protection for the texturing jets and lamellar chambers.

The 800-mm diameter cooling drum optimally and gently cools the filaments. And this has a positive influence on the yarn quality. The new cooling drum is now equipped with a V groove for all polymers (PET, PA6 and PP) as standard.

The RoTac3 tangling unit, already established within the market, once again reduces the compressed air consumption by around 50%, while the newly-developed Witras III-37 winder achieves production process speeds of 3,700 m/min.

First intuitively-operable human-machine interface (HMI)
The new BCF S8 is the first Oerlikon Manmade Fibers segment system equipped with the innovative human-machine interface (HMI) for intelligent controlling and monitoring. In this case, the interface between man and machine has been oriented on the daily requirements of users in BCF production. With its new ‘look and feel’, it supports intuitive operation and offers direct access to important information as well as actual and target values at each take-up position by means of a touch screen. A completely new ‘alarm philosophy’ also simplifies troubleshooting and malfunction analysis. “This smart HMI system is a logical step in the digitalization of our products”, explains Dr. Friedrich Lennemann, Vice President R&D Oerlikon Neumag.

• The Packnatur® reusable cellulose bag wins State Prize in the B2C category
• Bags are made from wood-based fibers of Lenzing AG, which are biodegradeable
• Bags were developed together with VPZ Verpackungszentrum GmbH and are utilized by Coop and REWE for fruits and vegetables

Lenzing/ Vienna – Lenzing AG was granted the Austrian State Prize 2018 for Smart Packaging this year together with its partners. The Federal Ministry of Digital and Economic Affairs and the Federal Ministry of Sustainability and Tourism bestowed the Austrian State Prize this week in the B2C category on the Packnatur® reusable wood-based bag. This reusable bag is made with fibers produced by Lenzing AG and was developed by Lenzing and its partner VPZ Verpackungszentrum GmbH. The bags are utilized in the supermarkets of the Swiss food retailer Coop and the Austrian firm REWE International AG.

The Packnatur® reusable cellulose bag is particularly suited for the packaging of fruit and vegetables and serves as an ideal replacement for plastic bags. The jury provided the following reasons to justify the selection of the winner: The Packnatur® reusable cellulose bag comprises a long-lasting, reusable packaging solution made of a renewable raw material but not at the expense of food. It has very pleasant haptics and supports longer shelf life of food.

LENZING™ fibers are made from the natural and renewable raw material wood. For this reason, they are biodegradable. Moreover, they pollute neither rivers nor seas with microparticles washed out in the process of washing.

The Austrian State Prize for Smart Packaging was granted on the occasion of the 3rd Austrian Packaging Day. This year for the 58th time, the objective of this award is to highlight modern packaging solutions and excellent projects as best practice examples and thus put the national packaging industry in the international limelight.

Decline in revenue due to lower prices for standard viscose, less favorable currencies and lower production volume

• Pressure on prices for key raw materials remains high
• Positive impact due to focus on specialty fibers and further optimization of the product mix
• Expansion project in Mobile temporarily mothballed
• Acquisition of the remaining 30 percent of Lenzing (Nanjing) Fibers Co. Ltd.

The Lenzing Group recorded a solid business development in the first three quarters of 2018. The decline in revenue and earnings compared with the same period of the previous year was essentially based on a mix of lower prices for standard viscose, more unfavorable exchange rates and price increases for key raw materials. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment.

Revenue decreased by 5.2 percent to EUR 1,636.2 mn over the comparative period of the previous year. Apart from the high starting base, this was primarily attributable to the expected challenging market environment for standard viscose, less favorable exchange rates and lower production volume. EBITDA (earnings before interest, tax, depreciation and amortization) recorded a decline by 26.8 percent to EUR 290.6 mn due to price increases for key raw materials and higher energy and dissolving wood pulp prices. The EBITDA margin dropped from 23 percent in the first three quarters of the previous year to 17.8 percent. EBIT (earnings before interest and tax) fell by 36.2 percent to EUR 190.3 mn, leading to a lower EBIT margin of 11.6 percent (01-09/2017: 17.3 percent). Net profit for the period dropped by 39 percent from EUR 219.3 mn in the previous year to EUR 133.8 mn. Earnings per share equaled EUR 5.06 (01-09/2017: EUR 8.12).

“The Lenzing Group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development and the corporate strategy sCore TEN has a positive impact. The new production line in Heiligenkreuz started up successfully and customers’ feedback has been positive,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “While many viscose producers are faced with a very tense profit situation, we are well positioned due to our specialty strategy and still expect a satisfactory full year”, Doboczky adds.

Key strategic measures were implemented during the first three quarters of 2018 in line with the sCore TEN strategy. The start-up of new capacities for lyocell fibers in Heiligenkreuz, the production start of LENZING™ ECOVERO™ fibers at the Nanjing site and the investment in another pilot line for TENCEL™ Luxe filaments are important steps to accomplish the goal of increasing the share of specialty fibers in total revenue.

Project in Mobile temporarily mothballed
Due to the decision to temporarily mothball the lyocell expansion project in Mobile, Alabama (USA), in view of the buoyant US labor market and trade tensions between the major trading blocks, the implementation of the expansion plan for specialty staple fibers will be slowed down. The Lenzing Group will put all its effort to readjust the execution of its growth plan to meet strong market demand for its lyocell fibers. This includes an increased focus on the lyocell expansion project in Prachinburi (Thailand).

Advancing forward solutions
Regarding the capacity expansion for specialty products such as TENCEL™ Luxe filaments and LENZING™ ECOVERO™ viscose fibers, Lenzing is still on track. After the introduction of TENCEL™ Luxe branded lyocell filament yarns in the previous year, Lenzing continues to drive innovations in the area of the value chain. In September, the company also announced the successful development of the LENZING™ Web Technology, a new technology platform focusing on sustainable nonwoven products, which will lead to new market opportunities for the industry. Following several years of research and development work and investments totaling EUR 26 mn, the pilot plant at the headquarters in Lenzing has been successfully put into operation.

Largest dissolving wood pulp line worldwide
At the end of June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp plant in the state of Minas Gerais (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers. The joint venture is investigating the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decisionto build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Acquisition of Chinese operation
At the beginning of November the takeover by the Lenzing Group of the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC was completed. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The acquisition will have a negative impact on net profit of approx. EUR 21 mn for the fiscal year 2018. The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

Expansion of capacities
CAPEX (investments in intangible assets and property, plant and equipment) rose by 35.5 percent year-on-year to EUR 174.1 mn in the first three quarters of 2018. This is primarily attributable to capacity expansions in Heiligenkreuz and the expansion of the existing dissolving wood pulp plant in Lenzing as well as the investments made so far in Mobile.

Outlook
Demand development on the global fiber market remains positive. Lenzing expects wood-based cellulosic fibers to continue to grow at a higher rate than the overall fiber market. In a challenging market environment the Lenzing Group expects solid results for 2018, albeit lower than in the outstanding last two years.

For 2019, Lenzing expects standard viscose markets to remain under pressure because of an ongoing oversupply and very high raw material prices. Lenzing’s specialty fiber business is expected to continue the very positive development.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. Lenzing is very well positioned in this market environment and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group intends to acquire the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The underlying structured selling process was initiated by the joint venture partner in a state controlled bidding process and today the Lenzing Group received the Share Purchase Agreement draft. The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of approx. EUR 21 mn for the fiscal year 2018.

The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

November 6th through 8th at MarediModa, gain insight into ROICA™ premium partners as they showcase their latest collections. A wide-range of offerings that include innovations using ROICA™ Eco-Smart™ family, the responsible choice. The premium stretch fiber, produced by Asahi Kasei, innovations that meet contemporary business needs and consumer desires for garments in the modern wardrobe; fashion, athleisure, sportswear, intimates and swimwear.

Asahi Kasei, recognized for responsible smart innovations offers the ROICA Eco Smart™ family, the range of the world's first responsibly made premium stretch fibers which includes ROICA™ smart yarns that offer sustainable solutions with impressive certifications: Global Recycled Standard (GRS) certified by Textile Exchange - ROICA™ EF constructed with more than 50% pre-consumer recycled content. Cradle to Cradle Certified™ Gold Level for Material Health product and ingredients - ROICA™ V550 yarn evaluated throughout the supply chain for lower impacts on human and environmental health. Striving toward eliminating all toxic and unidentified chemicals for a safe continuous cycle. Hohenstein Environment Compatibility Certificate - ROICA™ proudly breaks down without releasing harmful substances.

Oerlikons business unit Nonwoven will cooperate with the Chinese machine and plant manufacturer Shaoyang Textile Machinery for nonwoven solutions in the hygiene market. This was announced by the Manmade Fibers segment at ITMA ASIA + CITME 2018.

The aim of both cooperation partners is to jointly advance the international sales of Spunmelt lines for hygiene applications in the field of disposable nonwovens outside China.
Oerlikons business unit Nonwoven will be responsible for the entire project in the future. To this end, the Neumünster-based company will contribute its know-how in plant engineering to the partnership. Additionally, Oerlikon acquires the CE certifications of all exported Shaoyang Spunmelt lines. Oerlikon will also be responsible for product and process guarantees and will provide worldwide customer services outside China. Shaoyang Textile Machinery, on the other hand, supplies the Spunmelt plant technologies.
"With Shaoyang Textile Machinery, we have found a renowned Chinese plant manufacturer with extensive know-how in the construction of Spunmelt plants for hygiene applications, which achieves international standards with its nonwoven qualities," explains Oerlikon Manmade Fiber Segment CEO Georg Stausberg.
Rainer Straub, Head of Oerlikons Nonwoven Business Unit, adds: "The partnership with Shaoyang Textile Machinery enables us to gain a foothold in the highly competitive hygiene market. Our many years of engineering experience guarantee our customers production lines according to international
standards for high-quality nonwovens".

• Huntsman Textile Effects and The Chemours Company FC, LLC (‘Chemours’) have agreed to expand their long-term alliance in the area of durable water repellence (DWR).

Singapore – By combining the strengths of both companies in innovation, technical support and marketing, the expanded co-operation unlocks the full potential of the alliance to develop and deliver new, sustainable DWR solutions and chemistry.  This historical alliance that was established in the early 1990s has been at the forefront of delivering state-of-the-art solutions to the textile industry for durable water repellent effects. In addition to
fluorinated solutions, the expanded alliance will now be able to offer non-fluorinated alternatives as well. The alliance will cover different aspects of the value chain including research, marketing, technical support and manufacturing.

“Strengthening the partnership between Huntsman Textile Effects and Chemours unlocks the full potential of both companies to shape technology and product offerings in sustainable durable water repellency. Our cooperation, which has stood the test of time, has clearly demonstrated that strong environmental credentials and performance can co-exist in equal measure. We are excited to move forward with a broader alliance as we strengthen our position as the industry leader in DWR textile solutions,” said Jay Naidu, Vice President, Strategic Marketing and Planning, Huntsman Textile Effects.

“Chemours is excited to expand our partnership with Huntsman Textile Effects. This partnership reinforces our commitment to take a leadership role in the innovation and development of more sustainable and high performing products that address the rapidly evolving needs of the textile industry and the consumers that use these products,” said Jesal Chopra, Vice President, Chemours Fluoropolymers.

Together, Huntsman Textile Effects and Chemours have worked to lead the textile industry’s transition  from long-chain water repellent products to more environmentally friendly short-chain chemistry and, more recently, non-fluorinated chemistry. The collaboration has resulted in new, market-leading DWR solutions that deliver on performance and sustainability. Chemours introduced Teflon EcoElite™ with Zelan™ R3 technology in 2015, a renewably sourced, non-fluorinated water repellent finish. Containing 60% plant-based materials* and complying with all key industry standards, Zelan™ R3 repellent offers excellent water repellency and durability while preserving fabric breathability. It meets or exceeds performance levels possible with fluorinated technologies. Teflon™ Eco Dry with Zelan™ R2 PLUS technology, which compliments Teflon EcoElite™, was recently introduced. Zelan™ R2 PLUS contains 30% renewably sourced plant-based raw materials* and is focused on delivering a high level of durable water repellency for all substrates.

In 2017, Huntsman Textile Effects introduced PHOBOTEX® RSY non-fluorinated durable water repellent, which was developed to specifically meet extreme protection, comfort and durability requirements for both synthetic and cellulosic fibers, delivering an enhanced environmental profile for brands. PHOBOTEX® RSY durable water repellent raises the bar in performance on synthetics, allowing brands to offer high-performance weather protection with an assurance of eco-friendly sustainability. Providing effective protection in extreme environments together with breathable comfort, PHOBOTEX® RSY durable water repellent repulses rain, sleet, and snow, ideal for highperformance outerwear fabrics.

Both companies bring a rich and established heritage firmly centered on research and innovation. Through their expanded alliance, joint research and development efforts in DWR enable Huntsman and Chemours to stay at the forefront of industry trends and regulatory changes for a more sustainable textile industry.

The fourth edition of the ICNF - International Conference on Natural Fibers – Smart Sustainable Solutions will be taking place from 1-3 July 2019 in Porto, Portugal, is accepting extended abstracts of two full pages until 31st January 2019.
The Conference, focused on the latest scientific and technical advances in natural fibers will bring together more than 300 participants from universities, research and technological centers and companies.

Program topics
Following up the success of ICNF2017 held in Braga, Portugal, focusing on the topic ‘Advanced Materials for a Greener World’, next year’s ICNF is devoted to the topic ‘Smart Sustainable Solutions’.
The conference topics include:

•    New processes for natural fiber agriculture extraction and processing;
•    Natural fiber reinforced biopolymers;
•    Innovative natural fibers & structures;
•    Functional natural fibers;
•    Natural fiber modification techniques;
•    Advanced fibrous structures based on natural fibers;
•    Nanodimensional natural fibers;
•    Natural fiber based polymeric composites;
•    Green composites;
•    Natural fiber based cementitious composites;
•    Applications of natural fibers in high end sectors;
•    Analytics, modeling and prediction of properties and behavior;
•    Biomimetics;
•    Product development based on natural fibers;
•    Markets for natural fibers;
•    Sustainability of natural fibers: life cycle assessment studies;
•    Textile processing of natural fibers;
•    Properties & characterization of natural fibers & structures.

Natural Fibrenamics Award 2019
After the success of last editions, the Natural Fibrenamics Award is again included in the ICNF2019 program to award the best innovative products in the field of natural fibers. The innovative product applications will be shown during the Conference in a special showroom and evaluated by a selected jury in terms of innovation, design and functionality. The contest intends to be a showcase of the latest innovations in the field of natural fibers, both for the scientific and industrial communities.

The online abstract submission is open until January 31, 2019 at the official ICNF2019 website: www.icnf2019.fibrenamics.com

• Huntsman Textile effects redefines dyeing of polyester including microfiber and blends with UNIVADINE® E3-3D diffusion accelerant
• Eco-friendly diffusion accelerant provides reproducible, high-speed polyester dyeing

Singapore – Huntsman Textile Effects introduces UNIVADINE® E3-3D next-generation diffusion accelerant to help mills achieve high-performance dyeing of polyester, microfibers and blends in an environment-friendly way that complies with current and anticipated industry sustainability standards.

The demand for polyester and man-made fibers is booming as sports and athleisure apparel markets expand rapidly around the world. At the same time, big-name brands that set trends in the sector continue to increase focus on sustainability and performance. As such, this is putting pressure on mills since the current industry standard involves chemically active diffusion accelerants that contain unwanted chemicals and require additional leveling agents and anti-foaming products that may be hazardous to people and the environment.

Developed by Huntsman Textile Effects specifically to meet these challenges, UNIVADINE® E3-3D diffusion accelerant is low-odor, free of benzyl benzoate and other hazardous substances. Part of Huntsman’s range of innovative dyEvolution™ dyeing auxiliaries, it uses Huntsman’s Active Diffusion Technology to enable high-speed dyeing with best-in-class leveling, retarding and migration properties.

“UNIVADINE® E3-3D diffusion accelerant delivers across three key dimensions – diffusion, leveling and migration – for exceptional performance and environmental and economic sustainability. Its environmental credentials offer mills greater processing flexibility and an optimum price-performance ratio,” said Kerim Oner, Global Marketing Manager for Dyeing Auxiliaries at Huntsman Textile Effects. “We expect this latest offering to change the way that the industry dyes polyester and blends while meeting stringent environmental standards.”

UNIVADINE® E3-3D diffusion accelerant has a high affinity to polyester, causing the fiber to swell and increasing the diffusion of the disperse dye, even at lower temperatures. Multiple leveling mechanisms then slow down the exhaustion rate to ensure safe, defect-free dyeing. Finally, as the dye bath heats up, the product’s strong support for disperse dye migration ensures the dye molecules are evenly absorbed.

As a result of this cutting-edge diffusion technology, UNIVADINE® E3-3D diffusion accelerant can be used to successfully dye polyester fibers in tightly wound or high-density yarn/beam dyeing and is suitable for jet applications without the need for anti-foaming products. Reducing exposure to high heat, its Active Diffusion Technology minimizes the potential to damage the elastane in polyester-elastane blends and provides for on-tone dyeing of microfibers. The superior migration support of UNIVADINE® E3-3D diffusion accelerant also increases reproducibility, allowing mills to dispense with additional leveling agents. Polyester, microfibers and blends treated with UNIVADINE® E3-3D diffusion accelerant comply with the requirements of bluesign®, in addition to being suitable for Standard 100 by OEKO-TEX® and an approved input dyeing auxiliary chemical for GOTS (Global Organic Textile Standard) certified textile products*.