From the Sector

Since April 2023, the testing service provider Hohenstein has been testing and certifying in two new areas in the field of protective clothing: protective suits and gloves against chemicals and infectious agents. These are covered by Regulation (EU) 2016/425 and are therefore personal protective equipment (PPE).

Protective clothing against infectious agents is used in many types of work: for example, work at sewage plants, waste disposal, animal care, disposal of hazardous waste from hospitals, etc. Workers are exposed to unknown infectious agents (microorganisms, parasites). The protective clothing should protect wearers from the mediums in which the microorganisms are contained, such as liquids, aerosols or solid dust particles.

Hohenstein tests and certifies the following types:

• EN 14605: Protective clothing against liquid chemicals: Liquid-tight (type 3) or spray-tight (type 4) as well as partial protection types PB[3] and PB[4]
• EN 13982-1: Protective clothing against airborne solid particulates: Type 5
• EN 13034: Protective clothing against liquid chemicals: Type 6 and PB[6]

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.

• 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.

The international nonwovens community came together once again in Geneva this week for INDEX™23, with with 12,017 attendees from over 100 countries and 610 exhibitors from 43 countries joining the event.

Exhibitors made the most of the four intensive days to meet potential new customers and extend business with existing clients. As one of the world’s leading nonwovens exhibitions, INDEX™ demonstrated the latest breakthroughs and innovative developments across all nonwovens’ applications.

The INDEX™ Lab, an exchange hub displaying samples from innovations and new developments, also showcased the winners and runners up from each of the five categories of the INDEX™ Innovation Award. Open to any EDANA member company or exhibitor at INDEX™23, the winners were announced on the first day of the exhibition during a dedicated ceremony at the EDANA stand.

The winners (more infomation):

1. Nonwoven roll goods
   Winner: Suominen – HYDRASPUN® Circula Nonwoven
2. Finished products made from, or incorporating nonwovens
   Winner: Henkel – Smart Adult Care
3. Raw materials or components (e.g., fibre, binder, polymer, tape), of special relevance to the nonwovens industry and related converted products
   Winner: Fiberpartner – BicoBio
4. Innovation in machinery of special relevance to the nonwovens industry
   Winner: Curt G. Joa, Inc. – ESC-8™
5. Sustainable Product
   Winner: Sparkle Innovations – SugaFluff™

The "Nonwovens Journey", an immersive experience that takes a look at the innovative role of nonwovens, as well as how innovation has progressed in time around both sustainability, and how nonwovens are used in everyday life, also allowed visitors to discover the versatility of nonwovens.

Running alongside the exhibition itself, there was also a full programme of side events that were enjoyed by participants: Exhibitor Product Presentations from 33 exhibitors; a series of informative seminars covering a myriad of topics including medical nonwovens, sustainability, circular economy, geosynthetics, textiles, mobility, fair trade, gender equity, innovation, and market trends; country-specific briefings offering insights into the nonwovens market in various regions around the world; and a nonwovens tutorial intended as an induction to nonwovens for those new to the industry. These topics were all presented by leading industry experts and guest speakers, including among others, the World Trade Organization (WTO).

Concern for the environment has in recent years become increasingly important, and once again remained a key topic at INDEX™23, with companies pushing to achieve further CO₂ reductions and circularity across the supply chain.

Continuing on from its success during COVID-19, the INDEX™23 Mobile App and Virtual Platform was back. This tool offered participants – both in Geneva and those following from home – the chance to watch presentations live and interact with speakers, exhibitors, and other participants. Attendees were able to plan their visit and organize meetings, which was highly appreciated. Video recordings from the sessions will remain available online in the app and platform for the coming weeks.

The next INDEX™ will take place in three years from 21-24 April 2026.

On 30 March 2022, the European Commission presented its vision for the future of the textile industry. The strategy mainly focuses on reducing the environmental footprint and promote sustainability and transparency in the value chain.

EURATEX has welcomed the publication of the strategy, as it recognises the strategic importance of the European textile industry, and its core competitive values of quality and creativity. At the same time, the association has warned that translating that vision into reality is a delicate process, as the industry needs to reconcile sustainability with competitiveness. Making the green (and digital) transition should make companies stronger; the benefits should outweigh the costs.

This premise had a serious blow by the Russian war in Ukraine, which erupted at almost the same time when the strategy was launched, and has dramatically changed the economic context. Energy prices increased by a factor of 10 (!), putting the European industry at a significant disadvantage with its global competitors, leading to company shutdowns or relocations. Extended lock downs in China and defensive trade policies in the US and elsewhere have further generated uncertainty on the market and disrupted supply chains.

Today, one year after its publication, EURATEX remains carefully optimistic about the implementation of the strategy, but needs to warn against some important pitfalls on the road ahead.

1. Despite these turbulent times, the Commission is moving ahead “swiftly” in translating their EU Textile Strategy into (draft) legislation. At present, at least 16 pieces of legislation are on the table, which will turn the textile industry into a strictly regulated sector. The quality of this new regulatory framework is critical to the success of the strategy: upcoming rules need to be coherent, technically feasible and enforceable, and have a minimal cost for SMEs. EURATEX calls for a realistic timetable and “competitiveness test” for each piece of legislation before it is adopted.
2. Textile companies need to be informed and supported to comply with this new framework. This requires substantial funding which should be earmarked exclusively to the sector, covering areas of innovation and digitalisation, skills development, support to start ups and internationalisation, as well as access to affordable energy. In this regard, EURATEX calls on the Commission to translate the current “good intentions” into concrete decisions.
3. The EU strategy will not work if there is no demand for sustainable textiles, both from individual consumers and public authorities (procurement). Concrete measures need to be taken to offer a competitive advantage to sustainable and high quality textile products, e.g. through a different VAT rate, strict procurement rules, closer cooperation between the brands/retailers, producers and consumers.
4. The EU strategy could also fail, if the global dimension of the textile industry is ignored. Up to 80% of clothing products are produced outside the EU; these products need to comply with the new framework, but it remains unclear how to ensure that level playing field. Market surveillance needs to be stepped up massively – also targeting on line sales – but this would require significant efforts from member states, which are not available as of today.

Despite these important challenges, EURATEX remains committed to the successful implementation of the EU Textile Strategy. Director General Dirk Vantyghem commented: “We want to be a global leader in sustainable textiles, building on the entrepreneurship, quality and creativity of nearly 150,000 European textile companies. Creating this new framework is an incredible challenge, requiring a close dialogue between the industry and the regulator. But if well designed and carefully implemented, it can set a new era for the European textile industry”.

Major developments FY 2022

• Currency-neutral revenues up 1% reflecting growth in all markets except Greater China
• Double-digit increases in North America and Latin America, EMEA up high single digits
• Gross margin declines to 47.3% due to strong increase in supply chain costs and discounting  
• Operating profit at € 669 million, including one-off costs of € 312 million
• Operating margin decreases to 3.0%  
• Net income (continuing operations) of € 254 million includes € 350 million one-off costs
• Executive and Supervisory Boards propose dividend of € 0.70 per share

Major developments Q4 2022

• Currency-neutral revenues decline 1% impacted by termination of Yeezy partnership
• Gross margin at 39.1% reflecting increased supply chain costs and higher discounting
• Operating loss of € 724 million
• Net loss from continuing operations of € 482 million

Outlook for 2023
Underlying operating profit expected to be around break-even level
In 2023, adidas expects currency-neutral revenues to decline at a high-single-digit rate as macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in Europe and North America as well as uncertainty around the recovery in Greater China continue to exist. The company’s revenue development will also be impacted by the initiatives to significantly reduce high inventory levels. In addition, while the company continues to review future options for the utilization of its Yeezy inventory, the guidance already reflects the revenue loss of around € 1.2 billion from potentially not selling the existing stock. Accounting for the corresponding negative operating profit impact of around € 500 million, the company’s underlying operating profit is projected to be around the break-even level in 2023.

Reported operating loss of € 700 million projected
Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the potential write-off of the existing Yeezy inventory and would lower the company’s operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024. If all these effects were to materialize, the company expects to report an operating loss of € 700 million in 2023.

• Harmful PFAS chemicals, used in thousands of consumer products, are shaping up to be the big environmental and health threat of our time. The EU is now the first in the world to propose a broad ban on these chemicals.
• Consumer brands worth more than €130 billion support the ban on PFAS.  
• Investors with assets in PFAS-producing companies are calling for an end to production.

Many companies are taking a stand against PFAS chemicals as the EU invites the public to give its opinions on the proposed ban on these harmful chemicals.

108 companies dedicated to phasing out PFAS chemicals from products and processes have joined the PFAS Movement, an advocacy campaign initiated by environmental NGO ChemSec that calls for comprehensive regulation of PFAS in the EU. The members comprise many well-known brands, such as Inditex, Urbanears and the Cookware Company, representing various industries— fashion, home goods, food, and personal care. The members are worth more than €130 billion in total revenue.

“A European ban on PFAS chemicals will have huge repercussions for all manufacturing industries and require much work for companies in the global supply chain. However, some parts of the industry oppose this ban, claiming that the change is too big to be justified. That’s why the support for a ban from such influential consumer brands as those in the PFAS Movement is so important. It’s a strong sign that businesses want to eliminate PFAS chemicals in products and processes”, says Anne-Sofie Bäckar, Executive Director at ChemSec.

A Hollywood Helping Hand
ChemSec’s PFAS Movement is not only supported by the brands but also by Hollywood actor Mark Ruffalo who became a PFAS activist after his involvement in the film Dark Waters. The film depicts the real-life events following the massive uncovering of PFAS contamination in the USA. As a result, several PFAS producers in the USA are now involved in multimillion-dollar lawsuits.

The health and environmental threats of PFAS, along with all the lawsuits, have also created attention among another influential group: institutional investors. Last year, 47 institutional investors with US$8 trillion in assets sent a letter to 54 chemical companies named by ChemSec, calling for them to halt the production of persistent “forever chemicals”.

The EU ban on PFAS
The proposed EU ban on PFAS is extensive and the first of its kind worldwide. The idea was initially initiated by Sweden, Denmark, the Netherlands, Germany and Norway, who have spent almost three years mapping the implications of a ban on PFAS chemicals in a dossier that expands over nearly 2000 pages. The proposal shows, among other things, that the emissions of PFAS were 75 000 tonnes in 2020. If this continues, the emissions are expected to sit at 4.4 million tonnes in 30 years. The emissions originate from the production and use of the many products that contain PFAS; furniture, cosmetics, electronics and many more.

The Institut für Textiltechnik (ITA) of RWTH Aachen University, as part of the Mittelstandzentrum 4.0 Kompetenzzentrum Textil vernetzt, has supported numerous small and medium-sized enterprises (SMEs) on their way to digitalisation over the last five years. At the Digital Capability Center (DCC) in Aachen, for example, SMEs were able to experience digitised production from yarn to smart bracelets and thus test the feasibility of Industry 4.0 solutions in their working environment.

New supply chain laws and social sustainability now pose current challenges for SMEs. In the follow-up project Mittelstand-Digital Zentrum Smarte Kreisläufe (SME Digital Centre Smart Cycles), ITA will be supporting SMEs from 1 March in implementing ideas for digitalisation and sustainability in concrete terms.

This means finding sustainable solutions and processes for the circular economy together with companies and developing new digital business models. The ITA's solutions cover the areas of awareness-raising, qualification, implementation and networking. These offers are free of charge for SMEs - follow-up projects often lead to the funding programme "Central Innovation Programme for SMEs - ZIM" of the Federal Ministry of Economics and Climate Protection (BMWK) or to research and development projects.

Questions concerning the funding conditions can be sent to the following e-mail address: rosario.othen@ita.rwth-aachen.de.

AkzoNobel has published its digital Report 2022, which gives details of the company’s ongoing transformation during a challenging year of persistent worldwide uncertainty.

The Report 2022 website includes coverage of AkzoNobel’s financial results and key business developments, while the company’s progress on its sustainability ambitions is highlighted throughout.

The online report offers a wide range of interactive content and infographics. Visitors can also make use of various tools to compare key data and download tables.

Meanwhile, the Sustainability statements – traditionally one of the most visited sections – has been revamped and is themed around the key areas of climate change, circularity, and health and well-being. Several case studies also feature prominently.