From the Sector

• Construction progress of world’s first PET enzymatic biorecycling plant in France: in line with production targets in 2026
• Commercial development: several Letters of Intent signed in view of licensing agreements
• Consolidated cash position of €120.7 million on 30 June 2024, plus €23.4 million in term deposits classified as financial assets. In addition, €42.5 million in public funding is expected.

CARBIOS, a pioneer in the development and industrialization of biological technologies to reinvent the life cycle of plastic and textiles, reported its operating and financial results for the first half of 2024.
The financial statements as of 30 June 2024 were approved by CARBIOS' Board of Directors.

The improvement in the financial results is mainly due to the increase in the Company’s financial income from interest on money market investments and term deposits of its cash and cash equivalents. Cash is systematically invested in risk-free, highly liquid money market products.

The decrease in financial expenses is mainly due to the capitalization of borrowing costs for the Longlaville plant.

The Group’s operating income (loss) shows a loss of €18.1 million at 30 June 2024 (€13.7 million loss at 30 June 2023).

The Group’s cash position stands at €120.7 million at 30 June 2024, plus
€23.4 million in term deposits classified as financial assets (for a total cash of €144 million after incorporation of term deposits) (€192 million at 31 December 2023).

On the basis of cashflow position to date, and the Company’s forecast operating expenses, CARBIOS considers to be able to cover its needs beyond the next 12 months. In addition, €42.5 million euros in public funding is expected.

In the first six months of 2024:

• The Group incurred €11,771 thousand in R&D expenses. The rise in R&D costs is mainly due to increased staff costs in line with the development of the Group’s various activities.
• The Group reported €1,952 thousand of Subsidies and other business income, which partially offset these R&D expenses. This item mainly consists of €1,379 thousand in tax credit for first-half 2024, of which €1,043 thousand relates to CARBIOS and €336 thousand to Carbiolice.

Finally, the Group continued to capitalize the Development expenses of its PET biorecycling project, booking a total €1,618 thousand in the first half of 2024, in accordance with IAS 38 capitalization criteria.

During this first period of the 2024 financial year, CARBIOS forged several international strategic partnerships with a view to deploying its licensing model for its technology and know-how in the field of PET plastic and textile enzymatic biorecycling.

Gerard Fres Ltd (GFL), a sweater manufacturer founded in France and based in Dhaka, Bangladesh, has adopted Pivot88, a TradeBeyond company, to optimize its quality inspection processes.

Established in 1997 and known for its focus on sustainability and ethical production, Gerard Fres has been a pioneer in the knitwear industry, specializing in pullovers and exporting around six million pieces annually to various countries including France, Germany, Belgium, Italy, Canada, Brazil, and Australia.

By incorporating Pivot88's technology, Gerard Fres aims to further its mission of ensuring supply chain efficiency from product design to end-consumer satisfaction, while maintaining quality and ethical and sustainable production principles.

Pivot88, known for its robust compliance, quality testing, and traceability solutions, will provide Gerard Fres with a platform that offers real-time oversight and comprehensive data analytics. This will enable Gerard Fres to conduct more effective and efficient quality inspections.

CARBIOS and FCC Environment UK, a recycling and waste management companies in the UK, have signed a Letter of Intent (LOI) to jointly study the implementation of a UK-based plant using CARBIOS’ PET biorecycling licensed technology.  CARBIOS’ biorecycling technology is key to supporting FCC’s continuing goal of contributing to the circular economy by exploring new processes and technologies to produce recycled PET (r-PET) from PET plastic and textiles. For CARBIOS, this LOI confirms interest from the waste management sector, in addition to plastic producers, and would mean a foothold for its technology in the UK.

FCC’s continuing contribution to the UK circular economy
Recycling has plateaued in the UK in recent years, but UK Government policy very much supports a continual move to a more circular economy which FCC Environment supports. Achieving a circular economy however requires innovation and investment to deliver real environmental change. Exploring biorecycling is one way of doing this, so FCC is keen to understand this technology better by seeking an evidence based view on the advantages of using enzymes for the treatment of PET such as lower energy consumption and better circularity of the polymers back into the PET production lines. The depolymerization process developed by CARBIOS also facilitates the recycling of all kinds of PET waste, including problematic fractions such as polyester textiles, into high-quality recycled PET.

UK PET biorecycling plant would process hard-to-recycle waste
In order to tackle the plastic waste crisis, CARBIOS has developed a enzymatic depolymerization technology that enables efficient and solvent-free recycling of PET plastic and textile waste into virgin-like products. CARBIOS has ambitious plans to become a leading technology provider in the recycling of PET by 2035. In addition to the world’s first industrial-scale enzymatic PET recycling plant which is currently under construction in Longlaville, France, this UK-based plant would process PET waste that is currently not recyclable using conventional recycling technologies, such as colored, multilayered or textile waste.

CARBIOS and Nouvelles Fibres Textiles, a French company specializing in the recovery of end-of-life textiles, announce the signing of a Memorandum of Understanding to establish a contract for the supply of polyester textiles to the world's first PET biorecycling plant currently under construction in Longlaville, France. The polyester textiles supplied will come from used or end-of-life textiles prepared in France by Nouvelles Fibres Textiles for recycling using CARBIOS' enzymatic depolymerization technology. This contract will enable 5,000 tons a year of these textiles to be redirected towards biorecycling from 2026 onwards, over an initial 5-year period, demonstrating the commitment of industrial players all along the value chain to achieving textile circularity for a more sustainable textile sector.

Nouvelles Fibres Textiles and its various partners opened a semi-industrial site with an annual capacity of 1,000 tons in November 2023, the first step towards building a 20,000-to-30,000-ton unit in 2026. This first site, a research center for textile recycling, combines the know-how of Andritz Laroche (a leader in textile recycling), Pellenc ST (French leader in intelligent sorting solutions), Synergie TLC (a French player in collection and first sorting for solidarity) and the Tissages de Charlieu group (a French player in weaving, garment manufacturing and textile recycling). This unit transforms used textiles into high-quality raw materials, supplying the various industries that use textile fibers (non-wovens, insulation, plastic, textiles, etc.) by automatically sorting them by composition, while eliminating hard points (buttons, zips, patches, etc.).

CARBIOS' biorecycling technology uses enzymes to break down polyester fibers into their basic components. These components are then used to produce high-quality recycled PET materials, such as fibers for the textile industry. This “fiber-to-fiber” solution will enable polyester to become a truly circular fiber on a large scale.

The summer edition of Texworld Apparel Sourcing Paris welcomed nearly 1,200 exhibitors from 26 countries. This season event was characterised by a number of new features and the dynamics remained satisfactory. Next event: February 10, 2025, in a partially renovated Paris-Le-Bourget exhibition centre for a session rich in initiatives.

The latest edition of Texworld Apparel Sourcing Paris, offered in its full version with the Avantex and Leatherworld sectors, ended on July 3 with attendance levels down on the July 2023 session. Over and above a possible "Olympic Games effect" and its consequences on transport and accommodation costs in the capital, the current economic situation is prompting the show's organizers to explore all alternatives to adapt the offer to market demand. However, these results do not seem to have had any impact on the flow of business between visitors and exhibitors, who reported a fairly positive overall climate.

The dynamic on the booths remained steady and the exchanges satisfactory, as shown by several manufacturers particularly well established on the European market. Indian shirt manufacturer Sheraton Apparel, for example, made around thirty solid contacts over 3 days, and reported several serious approaches to African distributors. The same goes for SMIT, a Turkish company specialising in Made in Turkey sourcing, which was able to see its main European customers and open up new contacts with Canadian and Brazilian buyers.

An expanded offering
At the Near Sourcing Hub, the phygital sourcing space connected by QR Code to the B2B digital platform of Messe Frankfurt France partner FourSource, inquiries to exhibiting companies remained much the same as in 2023. The visitor profile, on the other hand, focused on buyers from networks of small multi-specialist boutiques looking for an original mid-to-top-range offering. It was in response to this market demand for differentiation that the show organizers decided to extend Apparel Sourcing's range to include new categories in the fashion accessories sector, such as jewelry and bags.

High-profile initiatives
Other innovations were also on show this summer. The yarn pavilion - a first conceived in collaboration with Yarn Expo, originally a Shanghai show run by Messe Frankfurt - showcased the expertise of Chinese, Indian, Pakistani and Taiwanese companies, while at the same time highlighting upstream products and services. At Avantex, where some twenty suppliers of solutions for more sustainable fashion were grouped together, the new Designer Hub enabled designers and buyers to discover some original initiatives, such as that of stylist Jean-Luc François' association, supported by Messe Frankfurt's Texpertise network, which trains people who are far from employment, or the 3D design studio Scotomalab.

Materra wins 2024 Avantex Fashion Pitch award
The Avantex Fashion Pitch jury has awarded the 2024 prize to Materra. This British start-up, founded in 2019, designs solutions to support the cotton cultivation adapted to climate change. At the other end of the chain, it offers brands a service designed on a Cotton-As-A-Service model that encourages them to source from the producers it supports. Materra will benefit from a €2,800 stand at Avantex Paris 2025 donated by Messe Frankfurt France, plus €2,000 from Texpertise Network, the textile sector network of the Messe Frankfurt Group, and 1 year's incubation at Foundry donated by IFA Paris, official partner of the competition.

A trendy area at Leatherworld
New for 2024, the Leatherworld sector inaugurated its Leather Trend area, developed in collaboration with publisher Edizioni AF and the Arsutoria School design centre. Designed around the expertise of Italian companies specialising in the manufacture of leather shoes and bags, this inspirational space presented the autumn-winter 25-26 trends through 4 creative axis built around the expression of simplicity, nature, dynamism (sportswear collections) and finally romanticism. Leather Trend was also an opportunity to discover the new leather tanning technology developed by Ecotan, which avoids the use of metals (Chrome) and chemicals in the leather preparation stages thanks to the use of vegetable tannins.

CARBIOS and Zhink Group, specializing in two global industries, PET and textiles, announce the signing of a joint Letter of Intent to build a biorecycling plant in China using CARBIOS’ revolutionary enzymatic depolymerization technology to serve the global market. This agreement officializes collaboration towards a long-term partnership in view of a first licensing contract to build a plant with a minimum annual processing capacity of 50k tons of prepared PET waste and would contribute to accelerating a circular economy for plastic and textiles. China is a key market for CARBIOS, and this agreement would establish a presence in this dominant market.

With 67 million tons of PET produced annually, representing 61% of global production^[1], China is the world's largest PET producer. With regional and global demand for recycled PET growing, China also has the potential to take the lead in recycled PET (r-PET) production. In 2021, 58% of the world’s r-PET was consumed in Asia (with 38% in China^[2]) underscoring this region’s importance both as a major producer and consumer.

Furthermore, China is a key transformer of PET into resins and fibers used in numerous applications in the packaging and textile industries.  Most notably, China is the primary country for transforming PET into fiber, representing 78% of all PET fiber transformation in the world^[3].

For Zhink, the strategic focus is on the development of two global industries, PET and textiles, and to be a leader with sustainable competitiveness. Zhink is a major actor within the PET market with an annual production of 3 million tons of PET, serving domestic and global markets. CARBIOS has developed a enzymatic depolymerization technology that enables efficient and solvent-free recycling of PET plastic and textile waste into virgin-like products. The initial agreement between the two groups would allow Zhink to increase its recycled PET capacities and meet its sustainable competitiveness objectives by offering r-PET from enzymatic recycling: a circular recycling solution that can process all types of PET waste including hard-to-recycle waste (such as opaque and colored bottles, multilayer food trays and textile waste) while reducing CO2 emissions by 57%^[4] compared with virgin PET production. For CARBIOS, this agreement marks a significant step in the deployment of its technology worldwide and roll-out of its licensing model to achieve its ambition to become a leading technology provider in the recycling of PET by 2035. This Asia-based plant under license by Zhink would come in addition to the world’s first industrial-scale enzymatic PET recycling plant which is currently under construction in Longlaville, France.

^[1] HIS Markit 2021, Market Research Future 2021
^[2] HIS Markit 2021, Market Research Future 2021
^[3] HIS Markit 2021, Market Research Future 2021
^[4] Database ecoinvent 3.8; French scenario, taking into account the detour of 50% of PET waste from conventional end-of-life. Virgin PET: 2.53 kg CO2/kg (cradle to gate)

The German Institutes of Textile and Fiber Research Denkendorf (DITF) are coordinating the research project, which is funded as part of the European Union's Horizon Europe research and innovation program. The aim of BioFibreLoop is to develop recyclable outdoor and work clothing made from renewable bio-based materials. The kick-off event took place in Denkendorf on June 26 and 27, 2024.

The textile industry is facing two challenges: on the one hand, production must become more sustainable and environmentally friendly and, on the other, consumers are expecting more and more smart functions from clothing.

In addition, the production of functional textiles often involves the use of chemicals that are harmful to the environment and health and make subsequent recycling more difficult.

Intelligent innovations must therefore ensure that harmful chemicals are replaced, water is saved and more durable, recyclable bio-based materials are used, thereby reducing the usually considerable carbon footprint of textile products. Digitalized processes are intended to ensure greater efficiency and a closed cycle.

For example, the BioFibreLoop project uses laser technology to imitate natural structures in order to produce garments with water and oil-repellent, self-cleaning and antibacterial properties. At the end result of the research work will be affordable, resource and environmentally friendly, yet high-performance and durable fibers and textiles made from renewable sources such as lignin, cellulose and polylactic acid will be available. All processes are aimed at a circular economy with comprehensive recycling and virtually waste-free functionalization based on nature's example. In this way, greenhouse gas emissions could be reduced by 20 percent by 2035.

The technology for the functionalization and recycling of bio-based materials is being developed in three industrial demonstration projects in Austria, the Czech Republic and Germany. At the end of the project, a patented circular, sustainable and reliable process for the production of recyclable functional textiles will be established.

The BioFibreLoop project has a duration of 42 months and a total budget of almost 7 million euros, with 1.5 million going to the coordinator DITF.

The consortium consists of 13 partners from nine countries who contribute expertise and resources from science and industry:

• German Institutes of Textile and Fiber Research Denkendorf (DITF), Coordinator, Germany
• Next Technology Tecnotessile Società nazionale di ricerca R. L., Italy
• Centre Technologique ALPhANOV, France
• G. Knopf’s Sohn GmbH & Co. KG, Germany
• FreyZein Urban Outdoor GmbH, Austria
• BEES - BE Engineers for Society, Italy
• BAT Graphics Vernitech, France
• Interuniversitair Micro-Electronica Centrum, Belgium
• Idener Research & Development Agrupacion de Interes Economico, Spain
• Teknologian tutkimuskeskus VTT Oy, Finland
• Det Nationale Forskningscenter for Arbejdsmiljø, Denmark
• Steinbeis Innovation gGmbH, Germany
• NIL Textile SRO, Czech Republic

CARBIOS and TOMRA Textiles, a tech venture set up by the sorting technology company TOMRA, announce the signing of an agreement to collaborate on establishing an efficient stream in Northern Europe from textile waste collection, sorting and preparation to recycling using CARBIOS’ enzymatic depolymerization technology at its first commercial plant currently under construction in Longlaville, France

The monomers obtained will be used to produce recycled polyester (r-PET) fiber, closing the loop for polyester textile circularity.

The innovations from both TOMRA Textiles and CARBIOS contribute to addressing critical gaps in the value chain and significantly increase textile-to-textile recycling from its current rate of 1%¹. By accelerating a circular economy for polyester, a sustainable alternative to incineration or landfill is made available.

TOMRA Textiles is on a mission to close the gap in textile circularity, by contributing to designing and scaling textile sorting plants. Under this partnership agreement, TOMRA Textiles will explore specific, tangible measures to enable the preparation of post-consumer polyester waste for biorecycling according to CARBIOS’ specifications.

CARBIOS' biorecycling technology involves breaking down polyester fibers into their basic components using enzymes, which are then used to produce high-quality recycled PET materials such as fibers for the textile industry. The breakthrough collaboration with TOMRA will redirect the challenging PET fraction of polyester textile waste towards biorecycling, showcasing a mutual dedication to pioneering recycling solutions for a circular economy.

¹ Ellen MacArthur Foundation, 2017

Beaulieu International Group is investing €5 million to transition the fossil based energy supply of its Cushion Vinyl production plant in Wielsbeke, Belgium, to bio mass generated steam supply. A transition to renewable energy. To this end, B.I.G. is collaborating with A&U Energie, a company that converts non-recyclable wood waste into green energy and heat. This strategic move aligns with B.I.G.'s commitment to reach ‘net zero’ for their operations by 2030.

The transition from fossil energy to green steam and the switch to waste gas treatment without direct fossil energy brings significant benefits. First, the switch in technology will lead to 88% reduction in their Belgian Cushion Vinyl carbon footprint related to heat supply and waste gas treatment, compared to the current emissions. Second, the use of steam heating and electric energy provides improved energy efficiency. In addition, the use of steam systems is known for its safety and reliability, providing a safer and more stable heating solution for the Belgian Cushion Vinyl facility. Moreover, the switch to steam and electric energy allows for the use of green electricity in the future, if available.

In addition to transitioning to 100% green energy, Beaulieu International Group is also dedicated to advancing the circular economy. These efforts encompass various initiatives, including increasing the use of recycled and reused materials. For example, 50% of B.I.G.'s PVC floor coverings are already fully recyclable. Additionally, they are actively working to reduce the environmental impact of their solutions by 42% at the end of their life cycle, striving to minimize product emissions to nearly zero, and eliminating pollutants. Recently at the Belgian Flanders Flooring Days, Beauflor launched its Twilight collection, a cushion vinyl floor created with PVC from 100% bio and circular sources resulting in a 40% reduced CO₂ footprint compared to their conventional heterogeneous CV flooring for residential applications

Furthermore, their cushion vinyl brand Beauflor launched the ReLive concept, a specialized program designed for a circular future, ensuring the collection, sorting, and recycling of PVC flooring cutting waste. Currently, this program focuses on post-installation waste and is exclusively available in France, with the goal of expanding its reach to other EU countries.

Through the establishment of strategic partnerships dedicated to finding innovative ways to repurpose waste materials previously slated for incineration, B.I.G. underscores its commitment to sustainable solutions and collaboration with like-minded organizations. 75% of B.I.G.'s post-industrial waste is now being successfully recycled.

Source Fashion, which takes place at Olympia London from 14th - 16th July 2024, continues to grow its presence of international exhibitors from new sourcing regions, including representation from southeast Asia and Africa.

The first Malaysian manufacturer to be represented at the trade fair is Kualesa Apparel. Kualesa started as a small seed of an idea, with a big ambition and an even bigger purpose. The brand has evolved from a simple set of values to a producer of great-looking and comfortable bamboo apparel that’s challenging fast fashion. Kualesa offer flexible MOQ’s ranging from 250 pieces to high production capacity of 50,000 pieces a month.

Fairs and More Inc from the Philippines returns to the show for a third time, bringing a pavilion of Filipino manufacturers and makers.

The show also welcomes its first ever Nigerian manufacturer, Beyond Clothing. Beyond Clothing is a garment factory, that specialises in crafting premium custom clothing, branded uniforms, corporate uniforms, and sublimated t-shirts. The range also includes promotional apparel, workwear, and PPE personal protective apparel for hospitals.

Returning to Source Fashion, Texpro Corp (a branch of Kassab Group) from Tunisia has grown rapidly to become a fully integrated apparel manufacturer certified with GOTS, BSCI, BCI, and OCS covering the complete production cycle focusing on sustainability through the process from fabrics to manufacturing, washing and dying. The company specialises in denim and flat garment manufacturing and the product portfolio includes casual dresses, shirts, jackets, pants and coats for men, women and kids. Texpro Corp are increasingly partnering with customers to ensure high consistent quality on the products and invest in innovation to help improve the environmental impact by consistently delivering responsibly produced products.

Visitors will also discover International Trade Center (ITC), who is returning with a pavilion that includes a debut area for Ghanian producers. With manufacturing in Ethiopia, Shints Co Ltd. is a global producer of high-performance outdoor clothing and camping equipment.

A strong contingency from Europe includes over 25 UK exhibitors, representation from France, Italy and Spain, and a selection of Portuguese exhibitors including Ttantos Textiles, FLM Textil, SMSenra and Lagofra.

Nearly 30 countries, including Peru, Cambodia, Pakistan, Hong Kong, Italy, and Greece will be represented. Large pavilions from China, India and Turkey have also been confirmed, as well as Tanzania, Madagascar and Nepal.