From the Sector

On the occasion of EURATEX’ General Assembly held in Milan on 7 June, the European textile industry  discussed the relationship between innovation, sustainability and people in the industry of tomorrow. EURATEX members welcomed the Textiles Transition Pathway, released on 6 June by the Commission, as a valuable roadmap to ensure a successful green and digital transition. The meeting in Milan was also the occasion to strengthen links with textile machine manufacturers, gathering at ITMA 2023.

Hosted by Sistema Moda Italia (SMI), EURATEX meetings addressed the crucial issue of how to develop new competitive business models for the future, following the Industry 5.0 concept. In 2021, the European Commission launched “Industry 5.0”, which puts the wellbeing of the worker at the centre of the production process and the use of new technologies to provide prosperity beyond jobs and growth, while respecting the production limits of the planet.

The keynote speakers, Francesco Pinto (Chairman, Yamamay) and Claudio Cavacini (Director of Retail Industry Solutions & Strategy, Salesforce), presented how the digital transformation is affecting companies in the retail industry and how they should adapt to maintain their competitive edge. A panel session of textile machinery manufacturers debated how their companies can help delivering this transformation through state of the art machineries. They all agreed that it requires common efforts by all actors and stakeholders along the textile value chain and public support to make the necessary investments. According to Enzo Maurer, ITMA President, ITMA 2023 in Milan will exactly showcase excellence in innovation and new available technologies to make a leap forward in sustainability.

According to Sergio Tamborini, "we are particularly honored to host this event organized by Euratex, the association which is the voice of the European textile industry and its demands, especially those concerning the circular economy. Sistema Moda Italia wants to play its part and there are priorities, from legislation on extended producer responsibility (EPR) in Italy to eco-design, where textiles and clothing will act as a testing ground. SMI's goal will be to continue to encourage the debate on circularity  promoting it in all institutional settings aiming to a growing sustainable  supply chain.”

Alberto Paccanelli, EURATEX President added: “Today’s discussions showed that we are ready to take up new challenges. Nevertheless, this  transition towards a textiles 5.0 can only happen with the support of all actors, from policy makers to retailers. Today’s meeting was also the occasion to review the EU transition pathway for the textiles ecosystem, published yesterday by the European Commission. The pathway is the perfect example of a co-creation process between the European institutions and the stakeholders. We hope that other EU initiatives or legislative proposals will follow the same co-creative process.”

Carbios will receive grants totaling €54 million from French State via France 2030 and Grand-Est Region to finance construction of world’s first PET biorecycling plant and accelerate R&D activities

Carbios announces that its project has been selected by the French State for funding of €30 million from the French State as part of the investment plan France 2030, and €12.5 million from the Grand-Est Region.  The implementation of this funding is conditional to the European Commission’s approval of the corresponding state aid scheme, followed by the conclusion of national aid agreements. As part of the national call for projects on “Plastics Recycling” operated by ADEME^[1], Carbios’ project to finalize the industrialization of its unique PET biorecycling process has been selected. The reference plant in Longlaville in the Grand-Est region will be the world’s first PET biorecycling plant and is due for commissioning in 2025. This plant will make it possible to relocate to France the production of the two basic components of PET, PTA and MEG^[2], both derived from the Carbios process.

Carbios also announces that it has been granted total funding of €11.4 million from the French State as part of France 2030, of which €8.2 million directly for Carbios (€5 million in repayable advances) and €3.2 million for its academic partners INRAE^[3], INSA^[4] and CNRS^[5] via the TWB^[6] and TBI^[7] joint service and research units. This funding will enable to continue its research into the optimization and continuous improvement of Carbios’ enzymatic technologies.

The plant will secure the sales of the first volumes of recycled PET produced with Carbios’ technology, and to offer its partners recycled PET of the same quality as virgin PET. Once the necessary permits have been obtained, which should be granted by the end of 2023, in line with the announced start of construction before the end of the year, the plant is scheduled to be commissioned in 2025. This will be followed by a period of ramp-up to full capacity. The plant will have a nominal processing capacity of 50,000 tonnes of PET waste per year, equivalent to 2 billion bottles or 2.5 billion food trays.

Selection for funding by the French State through France 2030 and the Grand-Est Region complements the recent announcement of an exclusive, long-term partnership with Novozymes^[8], a leader in enzyme production, one of the main aims is to ensure the supply of enzymes to Carbios’ Longlaville plant and future licensed plants. In addition, Carbios recently secured a first supply source for its future plant by winning part of the CITEO tender for the biorecycling of multilayer trays^[9].

^[1] The French Agency for Ecological Transition
^[2] PTA = purified terephthalic acid; MEG = monoethylene glycol
^[3] French National Research Institute for Agriculture, Food and the Environment
^[4] French National Institute of Applied Sciences
^[5] French National Center for Scientific Research
^[6] Toulouse White Biotechnology – UMS INRAE 1337 / UAR CNRS 3582
^[7] Toulouse Biotechnology Institute – UMR INSA/CNRS 5504 / UMR INSA/INRAE 792
^[8] Cf. press release dated 12 January 2023
^[9] Cf. press release published by Citeo dated 26 April 2023

The shareholders of SGL Carbon SE approved all agenda items at the Annual General Meeting on May 9, 2023. The Annual General Meeting, which was held virtually, was attended by up to 114 electronically connected shareholders who, together with the postal votes submitted, represented 64.64% of the share capital.

CEO Dr. Torsten Derr began his speech with a review of SGL Carbon's two-year transformation phase. "In two years, we have been able to increase our sales by 23.5% and adjusted EBITDA by as much as 86.2%. In parallel, we reduced our debt by 40.4%," Dr. Derr elaborated. He also reported on the past financial year and the expectations for the future economic development of the company. In doing so, he also addressed SGL Carbon's growth markets in detail. "Over the past two years, we have made SGL fit for the future. With our products, we serve industries that significantly reflect the trends for the future: climate-friendly mobility, renewable energies and digitalization," he explained.

After 14 years on the Supervisory Board of SGL Carbon, this was Dr. h.c. Susanne Klatten's last Annual General Meeting as Chairwoman of the Supervisory Board. She had already informed the Company on February 14, 2023, that she would be leaving the Board at the end of this Annual General Meeting. As the largest shareholder, Dr. h.c. Klatten will remain associated with SGL Carbon through SKion GmbH.

As proposed, the Annual General Meeting elected Prof. Dr. Frank Richter as a shareholder representative on the Supervisory Board to succeed Dr. h.c. Susanne Klatten. Following the Annual General Meeting, the constituent meeting of the Supervisory Board elected Prof. Dr. Richter as Chairman of the Supervisory Board. Prof. Dr. Richter is Managing Director of SKion GmbH, Bad Homburg, which holds a stake of approximately 28.55% in SGL Carbon SE. Furthermore, Ingeborg Neumann, Managing Partner of Peppermint Holding GmbH, Berlin, was elected to the Supervisory Board of SGL Carbon SE for a further term of office.

adidas announced it will begin selling some of the remaining inventory of adidas YEEZY products, with an initial release end of May 2023. A significant amount will be donated to selected organizations working to combat discrimination and hate, including racism and antisemitism. These include but are not limited to the Anti-Defamation League (ADL) and the Philonise & Keeta Floyd Institute for Social Change.  

The release will mark the first time that products have been available to consumers since adidas terminated the YEEZY partnership in October 2022. The products will be existing designs and designs initiated in 2022 for sale in 2023.  Additional releases of existing inventory are currently under consideration, but timing is yet to be determined. Today’s announcement has no immediate impact on the company’s current financial guidance for 2023.

Since terminating the YEEZY partnership in October, adidas has been exploring multiple scenarios for the potential use of the existing YEEZY inventory. The process involved seeking feedback and listening to a diverse group of employees, organizations, communities, and consumers for how to responsibly manage the existing product. The company went ahead with already committed production orders after the partnership was terminated. This was done to help protect its supply chain partners from being negatively affected by cancellations.

A total of 20 European fashion and design schools took part in the 2nd “Fashioning Sustainability” competition organized by Freudenberg Performance Materials together with Macpi and Bemberg™ by Asahi Kasei, two co-branding partners in the textile industry.

Freudenberg invited talented young designers to create and submit their ideas for sustainable clothing. The initiative aims to show that sustainability is a key factor in the fashion industry.

Two of the most innovative outfits from each school were selected for the final round and presented to an international jury at the “Bagni Misteriosi” event location in Milan in May. Fashion design experts and opinion leaders as well as journalists were invited to select the most sustainable designs in the categories of “Technology” and “Design”.

The winners
First place in the “Technology” category went to Judith Marquant while the second to Jagoda Sokolowska, both students of the fashion school Esmod in Paris. Ilaria De Martino, from the fashion institute Modartech, Italy, and Xiaodan Liao from Polimoda, Italy, were awarded first and second place in the “Design” category. The first-place winners received €2,000, while the second places won €1,000.

All participants benefited from the platform to network with leading players in the garment industry and learn more about concrete steps for embracing sustainability. Creating true sustainability in the fashion industry means reducing the material flow of clothing, addressing both sustainable production and consumption.

Members of the Jury:
Cristiano Zanetti, Sales Director Italy, Freudenberg Performance Materials
Maurizio Cazzin, Male Modeller, Maison Giorgio Armani
Riccardo Bullio, Apparel Industrial Division Director, Dolce & Gabbana
Caterina Cuoghi, Industrial Director, Area NYC
Simone Bigi, Style and Product Office Manager FAY line, Gruppo TOD’S
Roberto Cibin, Model and Pattern Development Manager, Caruso
Bruno Landi, Sales Director, Vitale Barberis Canonico
Luisella Allegretti, Pattern Designer Boss MW Business Specialist, Hugo Boss
Eugenio Balordi, Product Manager, Maison Margiela
Ettore Pellegrini, Sales and Marketing Manager, Asahi Kasei Fibers Italia

Die CHT Group, a worldwide company for chemical specialties, has built a new production facility in Meghna Industrial Economic Zone (MIEZ), Narayanganj which was inaugurated on May 9th, 2023.

Martin Stangs, Regional Sales Manager APAC Auxiliaries at CHT says: “The long-term success story with RH Corporation now comes to an even higher level. In addition to the decade-long service provided by motivated colleagues of RH Corporation and constant visits by well-experienced CHT application field colleagues, CHT products will now be made available locally by our new production facility at CHT Bangladesh. This will further enhance our current high-end offer with in-time deliveries which are now possible. The well-known services provided by our up-to-date laboratory facility in Dhaka will continue to prevail. This is all supported by the profound analytical and technical equipment at CHT Germany as well as CHT Switzerland. Less water, less energy, less time, but still “fit-for-purpose performance”: these requirements are no strangers to us. In alignment with our CHT Group policy ‘We take care’, we will solve these problems, too”.

Sustainability is anchored at CHT Group and plays an important role in Bangladesh, too. The new facility of the CHT Group in Bangladesh contributes to sustainability in more ways: The roofs of two buildings are fully covered with solar photovoltaic modules. For a proper use of natural light all the other buildings have periphery glass and transparent roofs There are additionally a ground water tank to harvest rainwater as well as a biological effluent treatment plant to reuse treated water as process water in the plant.

NDA, the Association of the Nonwoven Fabrics Industry, announced four recipients for the Lifetime Service Award and Lifetime Technical Achievement Awards. Jan O’Regan, Seshadri Ramkumar, Jim Robinson, and Ed Thomas are being recognized for their key contributions to the growth of the nonwovens industry and INDA.

Jan O’Regan: INDA Lifetime Service Award
Jan O’Regan was the Director, Strategic Initiatives and Nonwovens Marketing, for Cotton Incorporated and retired in 2022. In this capacity, she uncovered new opportunities for cotton to bring value into the nonwovens industry. Her work included leading efforts in strategic planning, technical and market project management, and sharing new ideas and results with the global supply chain.
O’Regan spent over four decades in the nonwovens industry in various roles, including sales, marketing, strategic planning and business management. Market responsibilities included consumer and industrial markets on regional, national, and global teams. Over the most recent years, she applied these broad experiences to new markets for cotton in nontraditional applications.
Serving and volunteering with INDA for decades, O’Regan most recently chaired the World of Wipes® committee, which she efficiently organized to produce innovative conferences for the wipes industry.  She was a frequent speaker at INDA, INSIGHT, EDANA, and other events, and for nearly two decades was a go to source of information for cotton fibers in nonwovens and hygiene. O’Regan earned a BS in Textiles and Business, summa cum laude, from Penn State University and an MBA from New York University’s Stern School of Business.

Seshadri Ramkumar: INDA Lifetime Technical Achievement Award
Seshadri Ramkumar has over twenty-five years of experience within the technical nonwovens space, conducting industry leading research and educating nonwovens professionals at Texas Tech University (TTU).  At TTU, he established the Nonwovens Laboratory. Many of Ramkumar’s students have gone on to become technical leaders within their organizations and the nonwovens industry.
Ramkumar has numerous patent and invention disclosures, including Fibertect® toxic chemical decontamination wipes which have been recognized by the American Chemical Society as a notable success of federally supported innovation, endorsed by Lawrence Livermore National Laboratory, and adopted by multiple branches of the military.
In addition to many peer-reviewed publications, articles, and columns collectively over 500, including one on nanofibers that has been cited over 2,100 times, Ramkumar has contributed his expertise on the editorial boards of multiple fiber, nonwoven, and textile journals. Ramkumar has also organized conferences for nonwovens and textiles and actively promoted INDA and its technical training offerings for over 20 years.
He is a longtime member of the INDA Technical Advisory Board, been recognized by TAPPI, Society of Dyers and Colorists (UK), the Textile Institute (UK), and the Textile Association (INDIA), and received numerous awards from TTU.
Ramkumar holds a Bachelors of Technology (Textiles), Graduated with Distinction, and a Masters of Technology (Textiles), University First Rank in the Discipline, Anna University, and a Ph.D. (Textile Materials) from the University of Leeds, UK.

Jim Robinson: INDA Lifetime Technical Achievement Award
Jim Robinson has 33 years in the absorbent hygiene industry, including 28 years as a Technical Service Manager at BASF. He led technical teams that focused on the application of superabsorbent polymers (SAP) in hygiene products. Robinson has extensive knowledge of SAP applications, absorbent core formation, and hygiene article design, performance and testing. While with BASF, Robinson led efforts with multiple external companies to provide co-supplier solutions to hygiene converters.
Robinson’s extensive understanding of test methods and test method development led to his coordinating the establishment of fitness for use standards of adult incontinent products with the National Association for Continence and involvement in development and review of absorbent product test methods with INDA/EDANA. He is also an active contributor to INDA’s Technical Advisory Board and Hygienix organizing committee and was a contributing developer in establishing the INDA Absorbent Hygiene Training Course. Robinson has provided numerous presentations at INSIGHT, Hygienix, and RISE on performance and interactions of absorbent system components.
Recently, Robinson has been consulting and contributing to the success of multiple start-ups including those having been nominated for INDA product awards. Robinson has a BS in Chemistry from Hampden-Sydney College and an MS in Chemistry from Duke University.

Ed Thomas: INDA Lifetime Technical Achievement Award
Ed Thomas retired after 39 years, with 32 years in the nonwovens industry, and has remained active teaching the Intermediate Nonwovens Training Course for INDA and The Nonwovens Institute at North Carolina State University, as well as providing consulting services to the industry.
Thomas’ experience includes Process Engineering Manager and Plant Management, DuPont; Technical Director, Reemay; VP of Research and Operations, VP of Operations and Technology, and Global VP of Research and Development for Fiberweb/BBA Nonwovens; and Head of Research and Product Development, First Quality Nonwovens.
Thomas holds 10 U.S. nonwoven patents and he and his teams have been awarded more than 250 patents for numerous and diverse innovations that have played significant roles in the success of the nonwovens industry. These include applications for the global hygiene market, industrial nonwovens, and filtration media.
During his career, Thomas has presented several keynote addresses and papers to industry conferences, participated in North Carolina State University’s Nonwovens Cooperative Research Center (NCRC) prior to it becoming The Nonwovens Institute (NWI), INDA’s Technical Advisory Board, INDA’s Sustainability Committee, and was Vice Chair of NWI’s Industrial Advisory Board prior to retirement and remains an Emeritus member.
Thomas received his mechanical engineering degree from SUNY Buffalo.

Indorama Ventures at the Obernburg site (Germany) will focus on the core markets of tires and automotive safety/airbags and specialties, as well as drive selected product innovations for application in new market segments. Accordingly, the company plans to adjust its capacity at the Obernburg site and cut around 80 of the current 620 total jobs by the end of the year in production and supporting functions.

Stefan Braun, Managing Director of Indorama Ventures at Industrie Center Obernburg, said, “Global competitive pressure in the man-made fibers industry continues. While our customers value us as one of their leading technology partners, particularly in the development and production of nylon yarns, the cost pressure in the production of individual polyester-based yarns has increased continuously in recent years. We are therefore convinced that we have made the right decision to focus on our core competencies to remain successful in the long term.”

The jobs cuts affect both production and administration and sales positions. Representatives of the company and the Works Council together informed employees about the situation on May 4.

The aim is to make the adjustments as acceptable as possible. Braun added, “We are prepared to talk to employees who will reach retirement age soon and who wish to leave the company early.” The company and employee representatives will agree on suitable measures in the coming weeks.

Since 1 April 2023 sales and service of Mayer & Cie. circular knitting machines in Bangladesh have been under new management. A new dynamic team “Mayer Bangladesh” has been formed. Mayer & Cie.’s longstanding Indian representative Batliboi has joined business activities in Bangladesh since the beginning of the month, supported by the team of Brady Services and by Almani Biz.

In Batliboi, Mayer & Cie. has set up a business partner of many decades standing as its representative in Bangladesh. For around 40 years Mumbai-based Batliboi has overseen sales and service of Mayer & Cie. circular knitting machines in India. Abhay Sidham heads Batliboi’s Textile and Machinery Group. He and his team have many years of experience in strategic marketing, and a focus on sustainability and processing recycled raw materials is part of Batliboi’s expertise.

These competences are of relevance in the Bangladesh market because “we face strong competition from Asian manufacturers here,” as Wolfgang Müller, Mayer & Cie.’s sales director, explains. The premium market was growing smaller, and the trend was toward specialities – value-added fabrics, spacer fabrics and athleisure with a high proportion of elastic. Mayer & Cie. sees in these requirements significant potential for its machines – and in Batliboi a partner able in view of its experience to put them to optimal use.

One building block in the set-up of Mayer & Cie. representatives is unchanged. Brady Services will continue with Batliboi to contribute its close ties with the local market. A significant number of existing companies will continue to be looked after by Brady Services.

The new member in Mayer Bangladesh team is Dhaka-based Almani Biz. A lubricants specialist for circular knitting machines Almani Biz has a wide network with Bangladesh knitting industry.

Mayer & Cie. feels well positioned by this new set-up. “We,” Wolfgang Müller says, “are of the opinion that the market for textile machinery in Bangladesh will continue to grow and we are confident that by strengthening our sales, service and marketing team we will be able to make good use of this opportunity.”

Customers in Bangladesh have placed large orders in the past. The latest, placed in January, was for several dozen machines to be delivered this autumn. Further orders from Apex and BEXIMCO (Bangladesh Export Import Company) are also scheduled for delivery in the second half of 2023.

While reorganising the set-up of its representatives in Bangladesh Batliboi has also taken over as Mayer & Cie.’s representative in Nepal, where the company had previously had no local representative. There is a demand for machines for interlock, 8-lock and single jersey, but sales are still in single figures.

• Revenue grows to EUR 623.1 mn – fiber sales recovered over the course of the quarter
• EBITDA and net result for the period down compared with the first quarter of 2022
• Cost reduction program of more than EUR 70 mn being implemented according to plan
• Production of TENCEL™ brand modal fibers successfully launched in China
• Lenzing confirms guidance for 2023

The business performance of the Lenzing Group during the first quarter of 2023 largely reflected market trends. However, after the market environment had deteriorated significantly in the third and fourth quarters of the previous year, signs of recovery emerged during the first quarter in terms of demand as well as raw material and energy costs. Textile fibers recorded moderate but steadily improving demand. Business with fibers for nonwovens and with dissolving wood pulp performed better than expected. Raw material and energy costs were still at an elevated albeit decreasing level.

Outlook
The war in Ukraine and the more restrictive monetary policy pursued by many central banks in order to combat inflation are expected to continue to influence global economic activity. The IMF warns that risks remain elevated overall and forecasts growth of 2.8 and 3 percent for 2023 and 2024 respectively. The currency environment is expected to remain volatile in the regions relevant to Lenzing.

This market environment continues to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing. However, the outlook has brightened somewhat recently.

Demand picked up tangibly after the Chinese New Year. As a consequence, capacity utilization improved and stocks were further reduced both at viscose producers and at downstream stages of the value chain.

In the trend-setting market for cotton, signs are emerging of a further buildup of stocks in the current 2022/23 crop season. Initial forecasts for 2023/24 anticipate a more balanced relationship between supply and demand.

However, despite signs of recovery in both demand and raw material and energy costs, earnings visibility remains limited overall.

Lenzing is fully on track with the implementation of the reorganization and cost reduction program. These and other measures are aimed at positioning Lenzing in the best possible way for the expected market recovery.

Structurally, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

The successful implementation of the key projects in Thailand and Brazil as well as the investment projects in China and Indonesia will further strengthen Lenzing’s positioning in this respect.

Taking into account the aforementioned factors and assuming a further market recovery in the current financial year, the Lenzing Group continues to expect EBITDA in a range between EUR 320 mn and EUR 420 mn for 2023.