From the Sector

With global consumers becoming more conscious about personal hygiene and environmental protection, exhibitors at Cinte Techtexil China will spotlight materials and technologies for products that respond to these trends. The fair will probe into the associated growth opportunities as the country is one of the leading markets for nonwovens and technical textiles. The event will be held from 6 – 8 September at the Shanghai New International Expo Centre.

The technical textiles and nonwovens industries, the latter notably, are significantly expanding amid the pandemic. A recent forecast[1] predicts that the global polypropylene nonwoven fabric market will continue to rise at a CAGR of 6.7%, reaching USD 39.23 billion by 2028. The anticipated growth is bolstered by demands in end-use industries such as sanitation, medical, automotive and more. In 2020, Asia Pacific was named the largest regional market in the world and is expected to grow significantly over the forecasted period.

The prediction reaffirms the growth prospects of nonwovens. In this regard, industry players expressed much optimism about associated future opportunities during Cinte Techtextil China last year. “The field of nonwovens is poised for a positive growth as the awareness of personal hygiene and pandemic prevention sustains in the domestic market,” commented Mr James Gao, Head of Marketing and Textile Technologies, Uster Technologies (China) Co Ltd. He added: “We decided to join the fair and showcase our new launches as we remain confident in the future development of the industry, especially since China is dominating the global scene.”

Going green is the way forward
Turning to yarns and fibres, the sector is shifting to greener and smarter production that echoes the trend towards sustainability that is gaining considerable traction across the globe. Meanwhile in China, this movement was observed by many exhibitors at the 2021 edition, including Mr Roberto Galante, Plant Manager of FMMG Technical Textiles (Suzhou) Co Ltd, the Chinese subsidiary of the Fil Man Made Group. He mentioned: “The market is paying more attention to environmental protection, and we receive enquiries about special yarns for this every day. We focus on technical yarns for filtration as well as anti-bacterial properties, which are very important for the environment. The potential here in China is incredible and this is a big opportunity for everybody.”

Cinte Techtextil China’s product categories cover 12 application areas, which comprehensively span across a full range of potential uses in modern technical textiles and nonwovens. These categories also cover the entire industry, from upstream technology and raw material providers to finished fabrics, chemicals and other solutions. This scope of product groups and application areas ensures that the fair is an effective business platform for the entire industry.

The Spanish recycling company Anviplas has been involved in plastics recycling for more than 30 years, during which time it has built up extensive know-how that now benefits customers throughout Europe, in Africa and in Asia. Their cooperation with EREMA is almost as long. Since 1991, Anviplas has relied on the technology and service provided by the Austrian recycling machine manufacturer.

Employing 64 people, Anviplas recycles post-industrial and post-consumer plastic waste, especially HD and LD-PE as well as PP, to make recycled pellets in all colour variations. The production capacity is 1,800 tonnes per month. An EREMA type INTAREMA® 1716 TVEplus® recycling machine with screen changer is in operation at the site in Navarcles (Barcelona) for processing the PP material stream. This patented extruder system was developed for handling difficult-to-process materials, such as heavily printed films as well as very moist waste. This machine is characterised by its optimised 3-stage degassing system; firstly by preheating and predrying the material in the preconditioning unit, secondly because the screw design allows reverse degassing, and thirdly in the degassing zone of the extruder.

Anviplas customers manufacture a huge bandwidth of products made using their recycled pellets. They range from various film products, such as stretch, shrink, mulch and silage films, to irrigation, corrugated and high-pressure pipes, as well as containers such as tubs, bottles, barrels and crates.

In February 2022 the Repeats Group, a pan-European platform for LDPE recycling, and Anviplas announced, that Repeats has made an investment in the Spanish recycling company. For Repeats this investment in Anviplas represents an important step in building a pan-European plastics recycling platform.

Global Organic Textile Standard (GOTS), the Organic Cotton Accelerator (OCA) and Textile Exchange are delighted to announce the renewal of the global ISO IWA 32:2019 proficiency test for a second year in a row, under technical support from Wageningen Food Safety Research.

The initiative aims to provide the sector with an up-to-date overview of global laboratories that can currently conduct GMO testing as per the ISO IWA 32:2019 protocol – a common language among laboratories worldwide to screen for the potential presence of genetically modified (GM) cotton along the organic cotton value chain.

The joint project involving three global NGOs in the textile sector, announces that it has reached a new milestone with an expanded list of twenty-one laboratories from Europe, Asia and North America who have successfully passed a new round of the proficiency test in 2021.

As qualitative GM cotton screening using the ISO IWA 32:2019 protocol is mandatory within the GOTS and OCS (Organic Content Standard) supply chain and OCA’s Farm programme, the expanded list will provide many stakeholders in Organic Cotton with the clarity they need for taking all reasonable precautions to prevent GM cotton in their organic cotton produce while supporting the rapid sector growth seen globally.

The updated overview of the laboratories that successfully passed the proficiency test in 2021 has now been jointly published by GOTS, OCA and Textile Exchange.

The initiative now in its second year, will drive greater transparency along the organic cotton supply chain in a move that the partners hope will become a fixed bi-annual initiative stemming from the positive feedback from the initial launch in 2020.

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, has been recognized as an “Achiever” in the Global Children's Rights and Business 2021 benchmark by the Global Child Forum. The company has been ranked 7th out of 28 global chemical companies and is the only Southeast Asia-based company included in the Basic Materials category this year.

This recognition demonstrates IVL's commitment to supporting children's rights and child-friendly business practices in the workplace, marketplace, and community and environment by adopting Children's Rights and Business Principles (CRBP) of UNICEF. The company has a wide range of initiatives that ensure children’s rights, in line with the UN Sustainable Development Goals (SDGs) of good health and well-being, quality education, gender equality, clean water and sanitation, and decent work and economic growth.

Chief among IVL’s contributions to children’s rights is the Recycling Education program for the younger generation. The program aims at creating awareness and providing knowledge about recycling and waste separation, in which everyone can take part. By supporting youth as a priority, the program aims to educate future business and community leaders how to lead their organizations, communities, and other consumers in doing the right thing to protect our environment. During the past few years, the program has educated almost 50,000 people of which are students from more than 100 schools. Initiated in Thailand, IVL is now expanding the Recycling Education where it operates globally.

The State of Children's Rights and Business 2021 benchmark report is produced by the Global Child Forum, a leading children’s rights organization, and the Boston Consulting Group by surveying 832 large global companies in nine industries and assessing 27 standardized metrics from its Code of Conduct. This report focuses on the rights of children along with sustainability supervision based on publicly available information.

• ADNOC and Borealis confirm final investment agreement to build Borouge 4 in Ruwais, United Arab Emirates (UAE), which will produce 1.4 million tons of polyethylene per annum
• Expansion project includes construction of a 1.5 million tonnes ethane cracker, two state-of-the-art Borstar® polyethylene plants and a cross-linked polyethylene plant
• Borouge 4 will meet growing customer demand across the Middle East, Africa and Asia with differentiated polyolefin solutions in energy, infrastructure, and advanced packaging
• New facility will benefit from industry-leading technologies to significantly improve energy efficiency and lower emissions, with carbon capture study underway
• Upon expansion, Borouge will be the world's largest single-site polyolefin complex and will supply feedstock to TA'ZIZ Industrial Chemicals Zone Body

ADNOC and Borealis AG signed an USD 6.2 billion investment agreement to build the fourth Borouge facility – Borouge 4 – at the polyolefin manufacturing complex in Ruwais, United Arab Emirates (UAE).

The world-scale expansion confirms both partners’ commitment to the growth of Borouge and to support chemical production, and advanced manufacturing and industry in Ruwais, a key pillar of Abu Dhabi and the UAE’s technology, innovation and industrial development strategy. Borouge produces crucial industrial raw materials, which are exported to customers globally and used by local companies, boosting local industrial supply chains and enhancing In-Country Value.

Borouge 4 will capitalize on the projected growth in customer demand for polyolefins, driven by their use in manufactured products in the Middle East, Africa and Asia. The facility will also enable the next phase of growth at the Ruwais Industrial Complex by supplying feedstock to the TA’ZIZ Industrial Chemicals Zone.

Borouge 4 will have an industry-leading focus on sustainability leveraging the capabilities of both shareholders. The facility will utilize Borealis’ proprietary Borstar technology, to produce a product portfolio focused on durable applications for energy, infrastructure, advanced packaging, and agriculture sectors. This unique technology, in combination with hexene co-monomer, will enable the production of advanced packaging grades with up to 50% recycled polyethylene content.

Subject to an in-depth study, a Carbon Capture unit that would reduce CO2 emissions by 80% could also be operational in time for Borouge 4’s start-up. The facility is also designed to capitalize on ADNOC’s recent initiatives on clean energy, decarbonizing its power supply through access to Abu Dhabi’s clean power sources. These initiatives are aligned with the UAE Net Zero by 2050 Strategic Initiative.

The first Borouge facility, producing 450,000 tons of polyethylene per annum was commissioned in 2001. Borouge 2 and Borouge 3 took capacity to 2 million tons and 4.5 million tons of polyethylene and polypropylene per annum in 2010 and 2014 respectively.  Borouge 4 will boost the company’s annual polyolefin production to 6.4 million tons, making Borouge one of the world’s largest single-site polyolefin facilities.

The new Borouge 4 facility will comprise:

• An ethane cracker, with 1.5 million tons ethylene output per annum, which will be the fourth cracker in Borouge’s integrated petrochemical complex in Ruwais
• Two additional Borstar® polyethylene (PE) plants, each with 700 thousand tons per annum capacity, using state-of-the-art Borealis Borstar third generation (3G) technology
• A cross-linked PE (XLPE) plant of 100 thousand tons per annum capacity.
• A hexene-1 unit, which will produce co-monomers for certain grades of polyethylene.

Indorama Ventures Public Company Limited issued a THB 10 billion triple-tranche Sustainability-Linked Bond, showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The bond is part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability Linked Loan Principles.

The SLB is linked to IVL’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.

On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.

Under the terms, all tranches must purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets in the event of failure to meet the sustainability performance targets (SPT). The testing dates for tenors with a maturity of 5 and 7 years are 31 December 2025, and 31 December 2030 for the 10.5-year tenor. SPT performance will be independently verified upon the testing dates.Proceeds for the issuance will be used to finance IVL’s corporate working capital and refinance existing debt.

In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.

• Instant access to ecotoxicological and regulatory information and certificates for Archroma specialty chemical products
• Faster decision-making and time-to-market for manufacturers, brands and retailers in the textile, paper, packaging, paint, and construction industries

Archroma, a global leader in specialty chemicals towards sustainable solutions, announced the launch of The Safe Edge, an online platform for instant access to product related regulatory & compliance certificates and information.

With continuously growing public awareness around the social, health and ecological impacts of human and business activities, the need for transparency and traceability in supply chains has become essential.

Time to market is equally critical, and manufacturers, brands and retailers need access to reliable information in real time.

The Safe Edge platform has been designed with that in mind: It allows brands, retailers and manufacturers of textile, fashion, packaging, paper, paints, to verify with just a few clicks the regulatory & compliance status of Archroma products, including regulations, ecotoxicological information & certifications, and brand requirements.

The Safe Edge covers standards, regulations and information such as air emission factors, animal origin, halal, kosher, plant origin, food contact, Blue Angel, bluesign®, Cradle-to-Cradle, chemical inventories, Composability EN 13432, conflict minerals, EU Flower/Ecolabel, GOTS, CONEG, ISEGA, Nordic Swan, Oekotex® Standard 100, California Prop 65, REACH, RoHS (Restriction of Hazardous Substance), Screened Chemistry, SDS, SVHC (Substance of Very High Concern), VOC (US), ZDHC (Zero Discharge Hazardous Chemicals), and brand standards (like Coats A&F MRSL, Decathlon RSL 2020, Jack Wolfskin RSL and The List IV by Inditex.

With the launch of The Safe Edge, Archroma continues to assert its leading role in driving sustainability in its industries, in line with its commitment to the principles of “The Archroma Way to a Sustainable World: safe, efficient, enhanced, it’s our nature”. The “Safe” principle in particular is at the core of the Archroma approach to sustainability, with the deeply rooted goal to protect people and the planet with products that are safe to use, and safe to wear.

The Safe Edge is already accessible for manufacturers, brands and retailers in Europe and Asia, and will be launched in North America in September 2021, and in Latin America by the end of the year.

A sector alliance that was formed to tackle issues relating to microplastics has completed the next phase of its project to develop a harmonised industry standard for the supply chain. The Cross Industry Agreement (CIA) has revealed the results of a fibre fragmentation trial that has been carried out in advance of establishing a CEN Standard (from the European Committee for Standardization). Once confirmed, the standard will also become an ISO standard under the Vienna Agreement, providing apparel manufacturers and policy makers with a vital tool as part of wider work to reduce microfibre shedding into the environment.

In 2018, five industry organisations agreed to join forces to proactively tackle the issue of microplastics, and signed the Cross Industry Agreement. The initial signatories were European industry associations that represent the European and global value chains of garments and their associated maintenance – the International Association for Soaps, Detergents and Maintenance Products (A.I.S.E.), European Man-Made Fibres Association (CIRFS), European Outdoor Group (EOG), EURATEX the European apparel and textile industry confederation, and the Federation of the European Sporting goods Industry (FESI). Together, the five organisations understood that the very first step to enable global action around the topic, was to agree a harmonised test method which would allow the collection and comparison of globally generated data, to aid the identification of solutions.

The microfibre shedding test method was developed thanks to the joint efforts and cooperation of experts from 28 European, American and Asian organisations; the result was handed over to CEN in 2020. Since then, representatives from the CIA have been working with CEN to fine tune details in order to meet the requirements for a CEN Standard. To verify the reproducibility of the method, the partners have carried out a round robin trial (RRT) to determine if the method could be replicated in different laboratories and produce similar results. 10 organisations participated in the RRT, which was co-ordinated by the CIA, sending fabric samples to all of the laboratories involved and then collecting and analysing the data.

The results from the RRT show statistically significant consistency, both within and between participating laboratories, which demonstrates that the method is both repeatable in the same setting and reproducible in other laboratories.

The CIA has submitted the results of the RRT to CEN, with the intention that the CEN Standard is confirmed in the near future. Once that has happened, it will be promoted throughout the apparel industry and will become a key tool for researchers, businesses and governments as they accelerate efforts to reduce microfibre shedding associated with garment production.

• Strong operating result: EBITDA at EUR 217.8 mn, cash flow from operating activities at EUR 199.8 mn
• Major strategic projects continue fully on track – production start of the lyocell plant in Thailand in the fourth quarter of 2021
• Start of strategic cooperation agreement for textile recycling with Södra
• New milestones in the implementation of group-wide carbon neutrality: EUR 200 mn investment in existing locations in Asia
• Guidance 2021: Lenzing expects EBITDA of at least EUR 360 mn

The Lenzing Group reported a significant improvement in revenue and earnings in the first half of the year. Growing optimism in the textile and apparel industry and the ongoing recovery in retail caused a substantial increase in demand and prices on the global fiber market, in particular at the beginning of the current financial year.

Revenue rose by 27.5 percent to EUR 1.03 bn in the first half of 2021. This increase is primarily attributable to higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibers, especially in Asia. The focus on wood-based specialty fibers such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on the revenue development; the share of specialty fibers in fiber revenue rose to 72.8 percent in the reporting period. The negative impact of more unfavorable currency effects was consequently more than offset.

The earnings development essentially reflects the positive market development and was additionally reinforced by measures to improve efficiency. Energy and logistics costs increased significantly throughout the entire reporting period. EBITDA (earnings before interest, tax, depreciation and amortization) more than doubled and amounted to EUR 217.8 mn in the first half of 2021 (compared to EUR 95.6 mn in the first half of 2020). The EBITDA margin rose from 11.8 percent to 21.1 percent. Net profit for the period amounted to EUR 96.1 mn (compared to a net loss of EUR minus 14.4 mn in the first half of 2020) and earnings per share to EUR 3.06 (compared to EUR 0.06 in the first half of 2020).

“Lenzing had a very strong first half-year. The demand for our sustainably produced specialty fibers once again developed excellently,” says Stefan Doboczky, CEO of the Lenzing Group.

Tata Communications, a global digital ecosystem enabler, has been recognised by global environmental non-profit organisation, Carbon Disclosure Project (CDP) with the distinguished ‘A-’ leadership score for implementing current best practices in sustainability for climate change. Tata Communications score is higher than the global average of ‘C’ and higher than the Asia region average of ‘D’. The Company scores the highest global score for playing a leading role in Climate Change governance, value chain management, energy efficiency, risk and opportunity disclosures in CDP 2020 reporting.

Tata Communications is among the top 34% companies globally to have received the leadership score for best practices out of 9,600+ companies that reported environmental disclosures this year. The scores are attributed basis a comprehensive peer benchmarking and sustainability performance.

The company made some strategic shifts in implementing several energy efficiency measures and this recognition reaffirms its focus on sustainability. In fiscal 2020, Tata Communications sourced approximately 15 million units of renewable energy and implemented emission reduction initiatives resulting in energy savings to the tune of 0.8 million units.

Tata Communications Sustainability strategy is based on the three facets of environment, social and governance (ESG) principles. The Company’s objective is to drive value creation for its stakeholders and drive sustainable business growth by managing risks and embracing opportunities, implementing robust governance practices and optimising the economic, environmental and social performance.