From the Sector

• Sales Volume rose 3% QoQ and 2% YoY to 3.55MT
• Adjusted EBITDA of $366M, a rise of 32% QoQ and a decline of 2% YoY
• Operating cash flows of $184M
• Net Operating Debt to Equity of 1.12
• Reported EPS of THB0.17

Indorama Ventures Public Company Limited (IVL) reported an improved quarterly performance as the prolonged destocking trend showed further signs of easing. During the quarter, the company progressed its IVL 2.0 evolved strategy to enhance earnings quality and transform its business to emerge stronger from the downturn in global chemical markets.

Indorama Ventures’ reported Adjusted EBITDA1  of $366 million in 1Q24, a 32% increase QoQ and a 2% decline YoY. Sales volume grew 3% QoQ as the widespread customer destocking that sapped demand through 2023 shows signs of a gradual recovery across all sectors, partially offset by a winter freeze in the U.S. The result was supported by lower utilities costs in Europe, Red Sea-related supply chain disruptions that benefited the company’s import parity advantages, and favorable shale gas economics that bolstered profitability in the U.S.

Indorama Ventures expects the recovery in volumes to continue through 2024, albeit at a gradual pace as destocking normalizes and the approaching summer supports demand. However, the overall landscape for the global chemical industry remains challenging due to excess capacity builds, as well due to persistent inflation and high interest rates which weigh on industry spreads and continue to impair profitability, especially across the polyester value chain. Our HVA segment ‘Indovinya’ is progressing well into the second quarter post the easing of destocking and anticipating a healthy 2024.

The company’s experienced management remains intensely focused on managing costs, optimizing competitiveness, and maintaining high liquidity. Indorama Ventures’ diverse geographical footprint is a key advantage in the current low-margin environment, allowing its businesses to maintain their strong market premium, supported by protection from trade and non-trade barriers.

In 1Q, the company made headway with its IVL 2.0 three-year plan to leverage its global leadership position and forge a new era of opportunity amid significant structural changes in chemical markets. Under the evolved strategy, which the company outlined at its annual Capital Markets Day in March, Indorama Ventures is optimizing assets, reducing debt, and focusing on generating free cash flow to deliver enhanced shareholder returns. Today, 70% of the company's revenue has deployed the SAPS/4HANA ERP and is using the infrastructure to enhance digital procurement, sales excellence, and integration of supply chains across the business. The company believes these AI tools will improve productivity and costs, as well as release working capital in line with its modernization strategy.

As part of IVL 2.0, the company is optimizing 7 sites, including the ongoing evaluation of its PTA/PET operation in the Netherlands. It has also made significant progress in its program to refinance $1.1 billion of debt within the first half of 2024 to ensure ample liquidity. Recent capital raisings include a $255 million ‘Ninja loan’, a THB 10 billion debenture, a $100M bi-lateral loan, and this week’s successful close of a $500 million syndicated loan – achieved at lower-than-average spreads compared to previous issuances.

To unlock value, Indorama Ventures is preparing its packaging and surfactants businesses for IPOs. From 1Q24, the Indovinya segment (previously named ‘Integrated Oxides and Derivatives’) is focused on developing its attractive downstream surfactants operations as a separate segment. The segment’s Intermediate Chemicals business, consisting of shale base integrated Ethylene MEG, MTBE and merchant Purified EO assets, have been moved under the Combined PET (CPET) segment where they are a natural fit.

Segment Performances
In 1Q24, CPET segment (including Intermediate Chemicals) posted Adjusted EBITDA of $249 million, a 34% gain QoQ and 4% YoY as supply chain disruptions and a consequent spike in global ocean freight rates supported high prices and margins, and as Western markets benefited from lower energy costs. The Indovinya segment reported a stable Adjusted EBITDA of $70 million, impacted by the winter freeze in the U.S and a mini turnaround at a PO/PG plant. The Fibers segment achieved a remarkable 73% increase in Adjusted EBITDA to $39 million QoQ, and 2% YoY, as destocking waned across all three business verticals and drove an 8% QoQ increase in volume.

Flat knitting technologist SHIMA SEIKI MFG., LTD. of Wakayama, Japan, together with its Argentinian representative TEMCO ARGENTINA S.A., will participate in the SIMATEX exhibition in Buenos Aires, Argentina (21st - 23rd May 2024).

SHIMA SEIKI will exhibit a wide range of products, including proposals in seam-free WHOLEGARMENT® knitting technology as an alternative to labor-intensive manufacturing in the South American market. Three MACH2®VS machines, capable of knitting WHOLEGARMENT® knitwear using every other needle, will be shown in 12, 16 and 18 gauge. N.SVR®122, shown in 5 gauge, is the industry benchmark for shaped knitting, featuring such innovations as the R2CARRIAGE®, WideGauge® knitting, spring-type moveable sinkers, DSCS® Digital Stitch Control System, stitch presser, yarn gripper and cutter, and takedown comb.

Demonstrations will be performed on SHIMA SEIKI's SDS®-ONE APEX4 design system. SDS®-ONE APEX4 provides support throughout the supply chain, integrating production into one smooth and efficient workflow from yarn development, product planning and design, to machine programming, production and even sales promotion. Especially effective is the way SDS®-ONE APEX4 improves on the product planning and design evaluation process by replacing physical samples with digital prototypes based on photo-realistic simulations. These virtual samples realize significant savings in time, cost and material, contributing to sustainable manufacturing.

Mit dem SureColor F11000 und dem SC-F11000H stellt Epson zwei neue 76-Zoll-Dye-Sublimationsdrucker vor, die auf den beiden aktuellen Druckern SC-F10000 und SC-F10000H basieren. Der SureColor F11000 und der SC-F11000H finden ihre Einsatzgebiete in den Bereichen Mode, Sportbekleidung, Heimtextilien und Soft Signage.

Dank einer Jumborolle (bis zu 300 kg) eignet sich der SC-F11000H für besonders lange, ununterbrochene Produktionszeiten und eine möglichst unterbrechungsfreie Produktion.Es sind weniger Medienwechsel nötig, was die Stillstandszeiten der Maschine verringert.

Die SC-F11000-Serie verfügt über ein CMYK-Tintenset und kann optional mit drei Varianten zusätzlicher Tinten verwendet werden: entweder mit Orange und einem Violett oder einem fluoreszierenden Gelb mit einem fluoreszierenden Pink oder mit einem hellen Cyan und einem hellen Magenta.

Thorsten Kapp ist neuer Marketingleiter bei der Epson Deutschland GmbH. Er tritt die Nachfolge von Sascha Surbach an, der die Abteilung zusätzlich zu seiner Funktion als Head of E-Marketing EMEAR interimsweise geführt hat. In seiner neuen Position entwickelt, koordiniert und realisiert Kapp die Marketingaktionen von Epson für die Region DACH.

Ihn unterstützen bei seiner Tätigkeit die Teams Channelmarketing B2B, Channelmarketing B2C sowie PR & Social Media. Er selbst berichtet an Maria Eagling, Marketing Communications Director bei Epson Europa. Der 56-jährige kommt von der Ubisoft GmbH, bei der er 25 Jahre lang das Brandmarketing DACH sowie die Gamescom-Messen geleitet hat.

Mitte April feierte das Bündnis für nachhaltige Textilien (kurz: Textilbündnis) sein 10-jähriges Bestehen. Die Multi-Akteurs-Partnerschaft besteht aktuell aus rund 120 Unternehmen, Verbänden, Nichtregierungsorganisationen, Gewerkschaften und Standardorganisationen sowie der deutschen Bundesregierung, die das Textilbündnis in Person des damaligen Entwicklungsministers Müller maßgeblich mit initiiert hatte. Ziel des Textilbündnisses ist die Verbesserungen entlang globaler Wertschöpfungsketten in der Textilbranche.
 
Der BTE engagiert sich seit Gründung im Textilbündnis in verschiedenen Arbeitskreisen. Wegen des veränderten regulativen Umfelds kam es Ende 2022 zu einer strategische Neuausrichtung. So wurden neue Anforderungen an die Bündnismitglieder gestellt, z.B. zur erweiterten Transparenz in der Lieferkette. Mit der Umsetzung definierter Fokusthemen entlang der Lieferkette leistet das Textilbündnis einen positiven Beitrag zu zentralen Problemen der weltweiten Textilindustrie, wie z.B. geringe Löhne, hoher Ressourcenverbrauch und Treibhausgas-Emissionen, geschlechterspezifische Gewalt und Diskriminierung sowie bislang oft fehlende Möglichkeiten, auf Missstände am Arbeitsplatz hinzuweisen.
 
Aktuell ist der BTE im Kreislaufwirtschaftsprojekt “Daunen- und Federn-Recycling" eingebunden. Ziel dieses Fokusthemas ist die Erhöhung der Menge an neuen Bettwaren, die mit recycelten Daunen und Federn gefüllt ist.
 
Hinweis: Auf der Webseite des Textilbündnis www.textilbuendnis.com steht eine größere Zahl grundlegender Dokumente als Download zur Verfügung, die in den letzten 10 Jahren das gemeinsame Engagement der Branche verdeutlichen, u.a. Risiken ermitteln und priorisieren, Infopapier Beschwerde- und Abhilfemechanismen, Leitfaden existenzsichernde Löhne, Informationsblätter zu einzelnen Fasern und Textil-Abwassermanagement.

Indorama Ventures Public Company Limited, a global sustainable chemical company, announced that MSCI awarded the company an upgraded ‘AA’ from ‘A’ rating, ranking it in the ‘Leader’ category for its Environmental, Social, and Governance (ESG) performance towards achieving its ongoing sustainability goals and commitments.

Morgan Stanley Capital International (MSCI), a provider of research-driven indices and analytics, ranked Indorama Ventures among the top 12% of 57 global companies in the commodity chemicals sector. This upgraded rating illustrates Indorama Ventures’ performance to exceed industry peers while minimizing its environmental footprint.

Intertextile Shanghai Home Textiles will mark its 30-year milestone at the National Exhibition and Convention Center (Shanghai) this autumn, from 14 – 16 August 2024. With industry players from around the world gearing up to join this year’s anniversary edition, the showcase will feature returning pavilions, a new product zone, and exhibitors with a wide range of fabrics and more.

30th anniversary celebration
With the ‘Intertextile’ brand present in the Chinese textile market since 1995, increasing market demand, both domestically and internationally, has contributed to the consistent upward trajectory of Intertextile Shanghai Home Textiles – Autumn Edition.

By utilising advanced technologies and abundant resources, China has earned its global reputation as one of the major manufacturing hubs for home textile products. Chinese home textile exports reached over USD 4.8 billion in the first two months of 2024, a year-on-year increase of 13.7%[1], demonstrating a welcome recovery. On the other hand, the country’s huge population, coupled with its increasing per capita textile consumption and home renovation projects, is providing a plethora of business opportunities for international suppliers to discover.

Featured zones and country pavilions
At this special edition, a new product zone will be unrolled for the first time–the Carpets & Rugs Zone. Set to feature various related products, the rising demand for these floor coverings has prompted the birth of this new featured zone. Meanwhile, the sought-after Designer Studio will return to help buyers achieve product-specific sourcing goals. Furthermore, with carpets, curtains, sun protection, leather, and many more home textiles all zoned accordingly under one roof, buyers will be able to source from a full range of products.

The Belgium and Türkiye Pavilions will once again showcase various product series from premium brands, alongside a comprehensive list of domestic exhibitors and multiple standalone international suppliers set to present their latest innovations and designs.

Beyond exhibitors’ booths, the fair’s anticipated fringe programme will showcase innovations and discuss market trends, such as broadly discussed AI and sustainability topics, to help fairgoers stay ahead of the curve. Simultaneously, the Danish trend agency SPOTT, founded by Ms Anja Bisgaard Gaede, also the leading trend agency for Heimtextil 2024, will be collaborating with the fair for the first time this year. The organisation will present an innovative trend area, set to illustrate design inspiration and industry direction for the upcoming season, through a series of creative displays. In addition, Mr Shen Lei, Founder and Design Director of Interior Architects Design, and the Chinese representative of the Intertextile International Lifestyle Trend Committee, will be returning this year to delve into design topics via his seminar.

^[1] Tnc.com.cn：Analysis of China’s home textile exports from January to February 2024. https://www.tnc.com.cn/info/c-001001-d-3742104.html

London Marathon Events (LME) partnered with the Salvation Army Trading Company (SATCoL), the trading arm of The Salvation Army, to collect discarded participant clothing at its event in London. On 21st April The Salvation Army collected a record 18.9 tonnes of clothing from the mass participation event.

Salvation Army volunteers and helpers supported to collect clothing discarded by participants prior to the Start line. The clothing was transported to The Salvation Army’s processing centre in the East Midlands for sorting and distribution to be resold, reused or recycled.

The profits that the Salvation Army Trading Company raise, is donated to The Salvation Army to continue to support the work they do across the UK.

The scheme is one of LME’s new sustainability initiatives for 2024 aimed at reducing the environmental impact of its events, with a particular focus on lowering carbon emissions, cutting waste and improving circularity.

The Salvation Army team will continue with the clothing collections at the following events this year:

• Ford RideLondon on Sunday 26 May
• The Big Half on 1 September
• The Vitality London 10,000 on 22 September
• The Royal Parks Half on 13 October

• Revenue up 5.7 percent year-on-year to EUR 658.4 million
• EBITDA more than doubles year-on-year to EUR 71.4 million
• Free cash flow of EUR 87.3 million (compared with minus EUR 132.3 million in the first quarter of 2023) and thereby positive for the third consecutive quarter
• Performance program shows positive effect on revenue, EDITDA, and free cash flow
• Lenzing confirms EBITDA guidance for 2024

The Lenzing Group, a leading supplier of regenerated cellulose for the textile and nonwovens industries, recorded a further improvement in fiber sales volumes in the first quarter of 2024. An expected recovery in markets relevant for Lenzing has to date failed to materialize. Fiber prices remained at a low level. Although the costs of raw materials and energy continued to decrease, they remained higher than in the pre-crisis 2019 year.

Outlook
Even though the IMF has upgraded its growth forecast for 2024 from 3.1 percent to 3.2 percent, a number of risks remain for the global economy: potential geopolitical shocks, persistently higher inflation and key interest rates, as well as market risks emanating from the Chinese real estate market are currently considered to be the most relevant.

General inflation and falling incomes in real terms are continuing to exert a negative impact on consumer sentiment. A recovery in the consumer clothing market, which is important for Lenzing, will also depend on a further normalization of stock levels.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, a stable price trend is expected for the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first quarter exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. By appointing a separate Managing Board member, the projects identified to date are to be implemented even more rapidly, and new potentials are to be leveraged. Lenzing expects that these measures will increasingly contribute to further earnings improvement over the coming quarters compared to the first quarter of 2024.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is 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.

Die Recruiting- und Innovationsmesse für Textil- und Bekleidungsunternehmen „MG ZIEHT AN - GO TEXTILE!“ findet vom 15. bis 16. Mai an der Hochschule Niederrhein (HSNR) in Mönchengladbach statt.

Am Fachbereich Textil- und Bekleidungstechnik der HSNR und in der Textilakademie NRW präsentieren sich weltweit agierende Unternehmen entlang der textilen Wertschöpfungskette - von Textilmaschinenbau über technische Textilien, Bekleidung und Mode bis hin zum Handel.

An zwei Tagen (Mittwoch, 15. Mai, 10 bis 18 Uhr und Donnerstag, 16. Mai, 9 bis 16 Uhr) können Studierende, Schüler:innen und alle anderen Interessierten mehr über die 32 Aussteller wie adidas, Hugo Boss, Peek & Cloppenburg Düsseldorf oder Monforts Textilmaschinen erfahren.

Eine Modenschau, ein Masterkongress zu aktuellen Nachhaltigkeits-Themen, Unternehmensvorträge, offene Labore mit Demonstrationen, Ausstellungen, Workshops sowie Schnuppervorlesung machen das Angebot komplett. Dazu gehören auch Rundgänge für Schulklassen und Unternehmensgruppen durch den Fachbereich Textil- und Bekleidungstechnik sowie die Textilakademie NRW. Zudem lernen Besucher:innen die Studiengänge im Bereich Textil, Bekleidung und Design kennen und erfahren über die Projekt- und Abschlussarbeiten aus erster Hand von Studierenden, wie groß der Praxisbezug an der HSNR ist.

Neben der HSNR und der Textilakademie NRW ist auch die Wirtschaftsförderung Mönchengladbach als Veranstaltungspartnerin dabei.