From the Sector

The transition towards safer and more sustainable chemicals is progressing in some areas, while in others, it is just beginning. This is the finding of a first, joint Europe-wide assessment of the drivers and impact of chemical pollution by the European Environment Agency (EEA) and the European Chemicals Agency (ECHA). The benchmarking found that more work is still needed to reduce the impact of harmful substances on human health and the environment.

The number of industrial chemicals scrutinised under the EU’s chemicals legislation to determine their safety has increased substantially. Authorities now have much better knowledge about the hazardous properties of chemicals that are used across the EU, resulting in many actions to minimise and control the risks of several groups of substances.

According to the joint EEA-ECHA synthesis report on the EU indicator framework for chemicals, the overall use of the most harmful chemicals (in particular those that are carcinogenic, mutagenic and reprotoxic) is still growing but more slowly than the overall chemicals market growth. Pressure is increasing to avoid the use of so-called substances of concern and to implement the principles of the safe and sustainable by design framework.

There is a need to more effectively ensure that consumer products do not contain the most harmful substances, for example chemicals that are endocrine disrupting, that negatively affect the hormone system, or substances that are persistent, bioaccumulative and toxic, which present a risk for years to come even after their use has ceased.

More data and information are needed to better understand human and environmental exposure to those most harmful chemicals and their impacts. Still, the indicators show clearly that the shift to safe and sustainable chemicals must continue and should even be accelerated.

The report is based on a set of 25 key indicators, which monitor the drivers and impacts of chemical pollution in Europe.

Key findings

• Transition towards safer and more sustainable chemicals is progressing in some areas while in others it is just getting started.
• Action by authorities and industry has supported minimising and controlling the risks from several groups of hazardous chemicals. Efforts are ongoing to increase knowledge on chemical hazards and support risk management action where needed.
• Available data suggest that there is little evidence of progress towards eliminating substances of concern from waste and secondary materials. This is a barrier to the transition towards a more circular economy.
• Emissions of certain chemicals to water and air have fallen following specific EU regulations (e.g., on industrial emissions) and international actions, but further measures are needed to reach concentration levels that are not harmful for human health and the environment.
• Emissions from industry still lead to major costs in terms of damages to human and ecosystem health.
• Human biomonitoring offers the opportunity to understand human exposure to chemicals from multiple sources and thus health risks associated with chemical pollution. As such, biomonitoring forms a key tool to measure the effectiveness of chemicals legislation in protecting human health and the environment.

Freudenberg Performance Materials Apparel Europe (Freudenberg) has reached a further sustainability milestone: The new Freudenberg Apparel Competence Center in Sant’Omero, Italy, successfully completed the 4sustainability® Chemical Management protocol (4s CHEM) recently and reached the Advanced Level. The aim of the protocol is to progressively eliminate toxic and hazardous chemicals and related risks throughout the production process.

Competence center for interlinings
Freudenberg opened its Apparel Competence Center in Sant’Omero in May 2023. The factory in Italy is an innovative competence center that coats and finishes nonwoven, woven and weft interlinings for apparel customers in Europe.
Freudenberg has now taken the next logical step: as part of a comprehensive audit, the Apparel Competence Center has implemented ZDHC guidelines in its production process. To achieve this, Freudenberg called in the experts from Process Factory, a consultancy that specializes in sustainability topics. With their support, Freudenberg’s Sant’Omero site has reached the Advanced level of the 4sustainability® Chemical Management protocol (4s CHEM), in line with the ZDHC Roadmap to Zero Program.
Implementation is controlled annually based on this protocol and offers companies in the fashion industry a degree of reliability. It guarantees structured, fully transparent procedures, regular monitoring, and continuous control of Freudenberg’s production processes.  

ZDHC
By demonstrating its rejection of environmentally harmful chemicals and substances, the Apparel Competence Center shows that Freudenberg gives top priority to taking responsibility for people and the environment.
The aim of the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation and its globally recognized Roadmap to Zero Program is to eliminate the release of toxic chemicals in the textile and fashion industry’s supply chain based on the ZDHC Manufacturing Restricted Substances List (ZDHC MRSL).
By applying the 4s CHEM protocol, the production site in Sant’Omero is sending a clear signal to the fashion industry that Freudenberg products meet the highest quality standards and are also safe and environmentally friendly.

The “Cellulose Fibres Conference 2024” held in Cologne on 13-14 March demonstrated the innovative power of the cellulose fibre industry. Several projects and scale-ups for textiles, hygiene products, construction and packaging showed the growth and bright future of this industry, supported by the policy framework to reduce single-use plastic products, such as the Single Use Plastics Directive (SUPD) in Europe.

40 international speakers presented the latest market trends in their industry and illustrated the innovation potential of cellulose fibres. Leading experts introduced new technologies for the recycling of cellulose-rich raw materials and gave insights into circular economy practices in the fields of textiles, hygiene, construction and packaging. All presentations were followed by exciting panel discussions with active audience participation including numerous questions and comments from the audience in Cologne and online. Once again, the Cellulose Fibres Conference proved to be an excellent networking opportunity to the 214 participants and 23 exhibitors from 27 countries. The annual conference is a unique meeting point for the global cellulose fibre industry.  

For the fourth time, nova-Institute has awarded the “Cellulose Fibre Innovation of the Year” Award at the Cellulose Fibres Conference. The Innovation Award recognises applications and innovations that will lead the way in the industry’s transition to sustainable fibres. Close race between the nominees – “The Straw Flexi-Dress” by DITF & VRETENA (Germany), cellulose textile fibre from unbleached straw pulp, is the winning cellulose fibre innovation 2024, followed by HONEXT (Spain) with the “HONEXT® Board FR-B (B-s1, d0)” from fibre waste from the paper industry, while TreeToTextile (Sweden) with their “New Generation of Bio-based and Resource-efficient Fibre” won third place.

Prior to the event, the conference advisory board had nominated six remarkable innovations for the award. The nominees were neck and neck, when the winners were elected in a live vote by the audience on the first day of the conference.

First place
DITF & VRETENA (Germany): The Straw Flexi-Dress – Design Meets Sustainability
The Flexi-Dress design was inspired by the natural golden colour and silky touch of HighPerCell® (HPC) filaments based on unbleached straw pulp. These cellulose filaments are produced using environmentally friendly spinning technology in a closed-loop production process. The design decisions focused on the emotional connection and attachment to the HPC material to create a local and circular fashion product. The Flexi-Dress is designed as a versatile knitted garment – from work to street – that can be worn as a dress, but can also be split into two pieces – used separately as a top and a straight skirt. The top can also be worn with the V-neck front or back. The HPC textile knit structure was considered important for comfort and emotional properties.

Second place
Honext Material (Spain): HONEXT® Board FR-B (B-s1, d0) – Flame-retardant Board made From Upcycled Fibre Waste From the Paper Industry
HONEXT® FR-B board (B-s1, d0) is a flame-retardant board made from 100 % upcycled industrial waste fibres from the paper industry. Thanks to innovations in biotechnology, paper sludge is upcycled – the previously “worthless” residue from paper making – to create a fully recyclable material, all without the use of resins. This lightweight and easy-to-handle board boasts high mechanical performance and stability, along with low thermal conductivity, making it perfect for various applications in all interior environments where fire safety is a priority. The material is non-toxic, with no added VOCs, ensuring safety for both people and the planet. A sustainable and healthy material for the built environment, it achieves Cradle-to-Cradle Certified GOLD, and Material Health CertificateTM Gold Level version 4.0 with a carbon-negative footprint. Additionally, the product is verified in the Product Environmental Footprint.

Third Place
TreeToTextile (Sweden): A New Generation of Bio-based and Resource-efficient Fibre
TreeToTextile has developed a unique, sustainable and resource efficient fibre that doesn’t exist on the market today. It has a natural dry feel similar to cotton and a semi-dull sheen and high drape like viscose. It is based on cellulose and has the potential to complement or replace cotton, viscose and polyester as a single fibre or in blends, depending on the application.
TreeToTextile Technology™ has a low demand for chemicals, energy and water. According to a third party verified LCA, the TreeToTextile fibre has a climate impact of 0.6 kg CO2 eq/kilo fibre. The fibre is made from bio-based and traceable resources and is biodegradable.

The next conference will be held on 12-13 March 2025.

• 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.

The European Chemicals Agency (ECHA), between 2009 and 2023, has performed compliance checks of approximately 15 000 registrations, representing 21 % of full registrations.  The Agency has met its legal target for dossier evaluation, which was increased from 5 % to 20 % in 2019. While, for substances registered at quantities of 100 tonnes or more per year, ECHA has checked compliance for around 30% of them.  

In 2023, the Agency conducted 301 compliance checks, covering more than 1 750 registrations and addressing 274 individual substances. These checks focused on registration dossiers that may have data gaps and aim to enhance the safety data of these substances. As a result, 251 adopted decisions were sent to companies, requesting additional data to clarify long-term effects of chemicals on human health or the environment.

ECHA will now put more focus on following up the requests sent to companies. In the follow-up evaluation process, the Agency assesses the incoming information for compliance. The outcome of the incoming data is shared with the Member States and European Commission to enable prioritisation of substances. ECHA will work closer together with the Member States for enforcement of non-compliant dossiers.  

Compliance of registration dossiers will remain a priority for ECHA for the coming years. This year, the Agency will review the impact of the Joint Evaluation Action Plan, aimed at improving REACH registrations compliance, and, together with stakeholders, develop new priority areas to work on.

In January 2024, ERCA Textile Chemical Solutions TCS was launched as an independent entity within the ERCA Group.

The decision to make ERCA TCS a separate company stems from the desire to focus exclusively on solutions for the textile industry and to build an agile entity oriented towards responsible research and production, while continuing to leverage a solid productive and financial background from ERCA S.p.A.

ERCA TCS aims to be the unique and innovative point of reference for textile companies in terms of products and services specifically designed for the needs of a sector that is currently facing challenges and opportunities related to sustainability and responsible production.

ERCA TCS bases its activity on the principles of "green chemistry" to offer the textile industry chemical solutions that make concrete the concepts of safety, performance, and circularity. Its flagship product - REVECOL® - is born from critical waste materials (used vegetable oils) and present in abundance, which through a process attentive to environmental compatibility and safety, are transformed into a line of innovative, certified, high-performance chemical auxiliaries usable by the entire textile industry.

ERCA Group has six plants in three macro-regions: Europe, Latin America, and Asia and produces chemical specialties and auxiliaries with an approach of responsible innovation. Its production covers several markets: textile, cosmetics, polyurethanes, concrete. It has a turnover of 150 million euros and employs 350 people worldwide, 100 of whom are in the sole Grassobbio plant.

ECHA CHEM is a new solution for publishing information on chemicals. The first release, available now, includes information from all REACH registrations.

ECHA’s current Information on chemicals platform, launched in 2016, grew rapidly and contains today information on over 360 000 chemicals. In 2022, ECHA announced that it would create a new system for publishing chemicals data. ECHA CHEM allows the Agency to better handle the growing diversity and quantity of data, while taking advantage of technological advancements.

ECHA maintains the largest chemicals database in the European Union (EU), combining industry-submitted data with information generated in the EU’s regulatory processes. ECHA CHEM is the new solution to share with the public the growing amount of information hosted by the Agency.

In the first version of ECHA CHEM, the information from all the over 100 000 REACH registrations are included that companies have submitted to ECHA. Later this year, the database will be expanded with the redesigned Classification and Labelling Inventory, followed by the first set of regulatory lists.

Celanese Corporation, a specialty materials and chemical company, and Under Armour, Inc., a company in athletic apparel and footwear, have collaborated to develop a new fiber for performance stretch fabrics called NEOLAST™. The innovative material will offer the apparel industry a high-performing alternative to elastane – an elastic fiber that gives apparel stretch, commonly called spandex. This new alternative could unlock the potential for end users to recycle performance stretch fabrics, a legacy aspect that has yet to be solved in the pursuit of circular manufacturing with respect to stretch fabrics.

NEOLAST™ fibers feature the powerful stretch, durability, comfort, and improved wicking expected from elite performance fabrics yet are also designed to begin addressing sustainability challenges associated with elastane, including recyclability. The fibers are produced using a proprietary solvent-free melt-extrusion process, eliminating potentially hazardous chemicals typically used to create stretch fabrics made with elastane.

NEOLAST™ fibers will be produced using recyclable elastoester polymers. As end users transition to a more circular economy, Celanese and Under Armour are exploring the potential of the fibers to improve the compatibility of stretch fabrics with future recycling systems and infrastructure.

In addition to the sustainability benefits, the new NEOLAST™ fibers deliver increased production precision, allowing spinners to dial power-stretch levels up or down and engineer fibers to meet a broader array of fabric specifications.

The kick-off meeting for the "Trends and Design Factors for Hydrogen Pressure Vessels" project, recently held at AZL Aachen GmbH, was a successful event, bringing together more than 37 experts in the field of composite technologies. This event laid a solid foundation for the Joint Partner Project, which currently comprises a consortium of 20 renowned companies from across the composite pressure vessel value chain: Ascend Performance Materials, C evotec GmbH, Chongqing Polycomp International Corp. (CPIC), Conbility GmbH, Elkamet Kunststofftechnik GmbH, F.A. Kümpers GmbH & Co. KG, f loteks plastik sanayi ticaret a.s., Formosa Plastics Corporation, Heraeus Noblelight GmbH, Huntsman Advanced Materials, Kaneka Belgium NV, Laserline GmbH, Mitsui Chemicals Europe GmbH, Plastik Omnium, Rassini Europe GmbH, Robert Bosch GmbH, Swancor Holding Co. Ltd. Ltd., TECNALIA, Toyota Motor Europe NV/SA, Tünkers do Brasil Ltda.

The project follows AZL´s well proven approach of a Joint Partner Project, aiming to provide technology and market insights as well as benchmarking of different material and production setups in combination with connecting experts along the value chain.

The kick-off meeting not only served as a platform to foster new contacts and get informed about the expertise and interests of the consortium members in the field of hydrogen pressure vessels, but also laid the groundwork for steering the focus of the upc oming project's ambitious phases. As a basis for the interactive discussion session, AZL outlined the background, motivation and detailed work plan. The central issues of the dialogue were the primary objectives, the most pressing challenges, the contribut ion to competitiveness, and
the priorities that would best meet the expectations of the project partners.

Discussions covered regulatory issues, the evolving value chain and the supply and properties of key materials such as carbon and glass fibres and resins. The consortium defined investigations into different manufacturing technologies, assessing their matu rity and potential benefits. Design layouts, including liners, boss designs and winding patterns, were thoroughly considered, taking into account their implications for mobile and stationary storage. The group is also interested in cost effective testing m ethods and certification processes, as well as the prospects for recycling into continuous fibres and the use of sustainable materials. Insight was requested into future demand for hydrogen tanks, OEM needs and strategies, and technological developments to produce more economical tanks.

The meeting highlighted the importance of CAE designs for fibre patterns, software suitability and the application dependent use of thermoset and thermoplastic designs.

The first report meeting will also set the stage of the next project phase, which will be the creation of reference designs by AZL's engineering team. These designs will cover a range of pressure vessel configurations using a variety of materials and production concepts. The aim is to develop models that not only re flect current technological capabilities, but also provide deep insight into the cost analysis of different production technologies, their CO₂ footprint, recycling aspects and scalability.

AZL's project remains open to additional participants. Companies interested in joining this initiative are invited to contact Philipp Fröhlig.

Syensqo announces the successful listing of its shares on Euronext Brussels and Euronext Paris under ticker SYENS. After the completion of the spin-off from Solvay, the listing marks a historical milestone as the company embarks on a journey focused on delivering superior growth and value creation.

Syensqo’s portfolio of market leading solutions addresses environmental and social challenges, through electrification, lightweighting, connectivity and resource efficiency. In addition, Syensqo is at the heart of the transition towards a net-zero economy, which is expected to drive new sources of value and support the company’s long-term growth.

With more than 13,000 employees and activities spread across the world (with 41% of FY2022 net sales in the Americas, 36% in Asia-Pacific and 23% Europe), Syensqo’s long-term ambition is to be the prime innovation partner for its customers, growing on average at around two times the rate of its main end markets, while further improving its best-in-class margin and returns.

Upon listing, Syensqo has 105,876,417 ordinary shares in issue, each carrying one voting right. The Syensqo share price started its journey at a value of € 90 at market open (9.00 am CET), which corresponds to a market capitalization of € 9.53 billion.