From the Sector

Indorama Ventures Public Company Limited (IVL) reported a strong 3Q 2021 performance amid record production volumes. The company maintained its positive outlook for the rest of the year and 2022, noting caution as headwinds including higher energy prices and supply chain disruptions weigh against resurgent consumer demand.

IVL reported EBITDA of US$478 million in Q3 versus US$552 million in the previous quarter and US$240 million a year earlier. Production volumes reached 3.73 million metric tons, a record, as the global recovery drove consumer demand for IVL’s products.

As the global economy recovers from the pandemic, consumer appetite and increasing Brent crude oil prices are testing supply chains and driving a commodity boom, with manufacturers running at full capacity. This has driven increases in freight prices and a shortage of materials.

Still, IVL posted a solid YTD performance, ending the first nine months of 2021 with EBITDA of US$ 1,512 million, up 123% YoY. The Integrated Oxides & Derivatives (IOD) segment will start to reap the full benefits of the hot commissioning of the Lake Charles gas cracker (IVOL) in Q4 and beyond, as well as continued advantaged shale gas economics.

In Q3, Project Olympus, the company’s cost saving and business transformation project, achieved US$63 million in efficiency gains, and is on track to achieve a total US$610 million of savings by 2023. IVL also implemented enhanced disclosures in governance, strategy, risk management, and metrics and targets, and launched a comprehensive financial policy and governance structure to accelerate environmentally driven projects.

IVL strengthened its Indorama Management Council (IMC) – the company’s highest operational management committee – by rotating experienced executives and adding the COOs of the Fibers and Integrated Oxides & Derivatives (IOD) segments. The appointments will help build the segments into self-sustaining organizations while also rotating expertise across the IMC.

3Q 2021 Performance Summary

• Consolidated Revenue of US$ 3,867M, an increase of 9% QoQ and 50% YoY
• EBITDA of US$ 478M in Q3 versus US$552 million, a decrease of 13% QoQ and an increase of 99% YoY
• Reported annualized EPS of THB 4.53 and core annualized EPS of THB 4.09

Indorama Ventures Public Company Limited announced it has strengthened its Indorama Management Council (IMC) – the company’s highest operational management committee – by rotating experienced executives and adding the COOs of the Fibers and Integrated Oxides & Derivatives (IOD) segments.

The elevation of Mr Christopher Kenneally, COO of Fibers, and Mr Alastair Port, COO of IOD, to the IMC – will enable more agile decision making as they build their high-growth segments into self-sustaining organizations that maximize value for IVL stakeholders. The appointments are effective immediately.

In a rotation of roles, Mr Sanjay Ahuja, the current CFO of IVL, will switch to Interim COO of Combined PET (CPET) for a period of 2 years, effective January 2022, as part of a rotation of senior expertise across the IMC. He will report to Mr D K Agarwal as CEO, who will take on additional broader responsibilities as CFO. The CPET role rotation will enable new dynamism in this largest segment of IVL and establish a self-sustaining organization for the permanent successor that IMC selects over this period. Mr Agarwal will be supported by Mr Ashok Jain in an enhanced role as Controller, covering Banking & Finance, Global Consolidation, Taxation and M&A.

Further, Mr Klaus Holz will join the IMC as Chief Human Resources Officer, effective 1 January 2022. He replaces Mr Roberto Bettini who will retire at the end of 2021.

The Crypton Companies (Crypton LLC and Nanotex LLC), leaders in high-performance fabrics for contract and residential interiors, has partnered with Hologenix®, LLC, whose CELLIANT® infrared technology is an ingredient in world-class brands across many categories. The two have collaborated to create a new textile innovation, Crypton® CELLIANT®, the first woven upholstery fabric with CELLIANT.

CELLIANT, ethically sourced minerals embedded into fibers, reflects natural body heat back to us as infrared energy. It has been clinically tested and proven to increase cellular oxygenation for improved energy, stronger performance, faster recovery, better sleep and overall enhanced wellbeing. With the tagline “easy care meets self-care,” the new Crypton CELLIANT fabric additionally offers Crypton’s performance characteristics. These include moisture-resistance, stain-resistance, spill-repellence, odor-resistance and cleanability. Both Crypton’s contract fabrics and its Crypton Home lines will offer collections of this innovative blend of Crypton performance along with CELLIANT’s energy-enhancing properties.

Crypton CELLIANT is exclusively woven at The Crypton Mills at Broad River, the firm’s own mill in Cliffside, North Carolina, and enhanced with performance technology in its research and manufacturing facility in Kings Mountain, North Carolina, to the highest environmental standards. Like all Crypton products, Crypton CELLIANT is GREENGUARD® Gold Certified. Crypton CELLIANT will be introduced to market through distributors in early 2022.

• Order intake of CHF 698.6 million in third quarter 2021
• Order intake of CHF 1 673.9 million after nine months
• Acquisition of the three Saurer businesses on schedule
• Credit lines renewed early
• Outlook 2021

The positive market dynamics, which Rieter has already reported on several occasions, continued in the third quarter of the current year. Rieter recorded an order intake of CHF 698.6 million in the third quarter of 2021 (2020: CHF 174.4 million).

The order intake of CHF 1 673.9 million after nine months corresponds to an increase of 294% compared to the prior year period (2020: CHF 425.1 million).
 
The market development is broadly supported at the global level and is based on a catch-up effect from 2019 and 2020 in combination with a regional shift in demand. Rieter believes that a major reason for this regional shift in demand is the development of costs in China. This is leading to increased investments outside the Chinese market. The orders came primarily from Turkey, Latin America, India, Pakistan and China. Overall, Rieter is benefitting from its innovative product range and the global positioning of the company.

The Business Group Machines & Systems achieved an order intake totaling CHF 1 281.6 million in the first nine months of 2021 (+447%).*

In the first nine months of 2021, the Business Group Components recorded an increase of 95% to CHF 227.0 million, while the Business Group After Sales posted an order intake of CHF 165.3 million, an increase of 123% compared to the prior year period.*

Acquisition of the three Saurer businesses on schedule
The acquisition of the three businesses from Saurer, which Rieter announced on August 16, 2021, is proceeding according to plan. The incoming orders for these businesses are not taken into account in this trading update.
 
Credit lines renewed early
The Rieter Group arranged the early renewal of the existing committed credit lines (five-year term, totaling CHF 250 million).
 
Outlook 2021*
The first nine months of 2021 were characterized by a rapid market recovery combined with a regional shift in demand. Rieter expects the demand for new systems to gradually return to normal in the coming months.  
 
For the full year 2021, Rieter anticipates sales of around CHF 900 million.

* See attached document for more information.

10 years after the installation of the photovoltaic plant in the production units in the Biellese region, the Marchi & Fildi Group takes stock of the operation and publishes the data on energy produced, consumed, and fed back into the grid.

The photovoltaic plant owned by the Group is made up of 11,385 modules divided between the three facilities in Biella (Production), Cerrione (Dyeing mill) and Verrone (Logistics), which in total cover a surface of 16,515 sq.m.

The balance to be drawn from these 10 years is a positive one: in total 22,974,828 kWh have been produced, of which 7,292,027 kWh have been used in company activities, with a saving in energy costs of approximately €1m over 10 years.  

The energy kWh produced and not used by the company was fed back into the grid and corresponds to the average annual consumption of around 4630 families.*

The Marchi & Fildi Group has always been committed to rationalising electric energy consumption with the aim of contributing towards an eco-sustainable development without compromising the rate of production and the ability to grow. In addition to producing its own electric energy, over the years, the company has also achieved an increasing number of Energy Efficiency Titles (TEE), otherwise known as white certificates. In 2021, 138 TEEs have been awarded as a result of such interventions as the introduction of LED lighting and the optimisation of the production processes which, while still as efficient as before, permit the company to reduce the electric energy consumption of the machinery.

*In the meter class for the range of 3kW to 4.5 kW, the average consumption for residential properties is the equivalent of 3,382 kWh (source: Arera Relazione annual state of services for the year 2020). The calculations are the results of an internal study conducted by the Marchi & Fildi Group.

European Textiles and Clothing (T&C) industry coming out of the Covid19-crisis, but facing new challenges ahead. This recovery may however be disrupted by the current supply chain and energy problems. Latest economic data on the European T&C industry confirm further recovery from the corona pandemic. The textile activity has now surpassed its pre-pandemic level from Q4 2019 (+3.6%); the clothing sector still remains 11.5% below, but continues to improve.

In quarter-on-quarter terms, the EU turnover showed signs of improvements across the sector. The textile turnover increased by +3.3% in Q2 2021, after slightly contracting in Q1 2021. Similarly, the business activity in the clothing sector expanded by +7% in Q2 2021, after increasing by +1% in the previous quarter.
 
In the 2nd quarter 2021, the EU-27 trade balance for T&C improved, resulting mostly from an increase of export sales across third markets and a drop of textile imports. T&C Extra-EU exports boomed by +49% as compared with the same quarter of the previous year. T&C Extra-EU imports went down by -26% as compared with the same quarter of the previous year, following a decrease of imports from some main supplier countries. EU imports from China and the UK collapsed due to a combination of Brexit and weaker demand in Europe.
 
During the second quarter of 2021, job creation was slowly stabilising in the textile industry (-0.2% q-o-q), while employment in the clothing sector continued to be affected by lower levels of production activity in industry during the first part of the year (-1.2%). When compared to its pre-pandemic level in Q4 2019, EU employment in Q2 2021 was still 4.4% down in textiles and 11.8% down in clothing.

However, this fragile recovery is hampered by higher shipping costs and prices’ increase in raw materials and energy. The cost of energy, in particular gas, has increased more than 3 times since the beginning of this year. Since the announcement of the EU’s “Fit for 55” package, we have seen CO2 prices rising above €60. This inevitably has an impact on the industry’s competitiveness, especially in a global context. The future recovery is also threatened by some factors limiting production, such as shortage of labour force and equipment, which are putting additional pressure on T&C industries.

Director General Dirk Vantyghem commented on these latest figures: “Our companies have shown great resilience during the pandemic, and their latest export performance is an encouraging sign of recovery. This recovery may however be disrupted by the current supply chain and energy problems. Once again, recent developments show that this transition towards more sustainable production can only work if organised in a global context, avoiding carbon leakage and with an effective level playing field. This must be considered in the upcoming EU Textiles Strategy.”

• HIGHER, FASTER, FURTHER ! During the first physical Frankfurt Fashion Week in January 2022, PREMIUM GROUP will show more novelties than ever.

The anticipation is rising! With the actual move to Frankfurt in January 2022, Anita Tillmann, Jörg Arntz and the teams will not only present further developed versions of the PREMIUM and SEEK fashion fairs, but will also celebrate a major B2C festival for the first time with THE GROUND.

More than ever, the Berliners‘ passion for people and fashion, but also for business and trading, is at the heart of all their events. And where better to combine all this than in the power metropolis of Frankfurt am Main.

„No city in Germany - no city in Europe - stands for business relevance and trading power as much as Frankfurt am Main,“ explains Tillmann. „We now have a unique opportunity to actively shape the future together. PREMIUM GROUP provides the industry with the platform, the brands with the creative content. In addition, we do what we do best, introduce the right players to each other and connect them. We bring together the movers and shakers who have the same drive as we do. With this new mix of location, entertainment, creative industry and trading focus, we are creating a unique momentum after the pandemic - January is when the big deals are made and the c ourse is set for the future.“

To achieve this goal, the PREMIUM GROUP teams have also given the proven successful formats PREMIUM and SEEK a new coat of paint. More space, new areas and shorter distances provide visitors with a completely new trade event experience. Trends, brands and events can be discovered together with new and well-known partners - for the first time all in one place!

And PREMIUM, which is already entering its 19th year in January, is also showing a new side in Frankfurt. Instead of being spread out like in Station-Berlin, in Frankfurt all brands show their collections in one big hall. „We are so excited to finally unite all exhibitors in one hall. This way we create a universe with many different worlds - colorful and exciting,“ says Wiebus. „We are in close exchange with all the protagonists throughout the year and continue to develop the concepts together. The entire industry is positive about coming together in Frankfurt. Everyone is keen to experience and create something completely new! We offer the framework for this - that is our strength.“

And the Berliners have another surprise in store for the Frankfurt debut: With THE GROUND, they are organizing a large fashion festival for young end consumers for the first time. Responsible for the event concept, in addition to Tillmann, Arntz and the PREMIUM GROUP- team, is B2C expert Kai Zollhöfer, who already made the Bread & Butter by Zalando a crowd puller. “THE GROUND is a B2C festival aimed at a young, purpose-driven generation. This new generation has a strong stance on current social and environmental challenges and expects brands to reflect them. The overriding themes at THE GROUND are therefore sustainability, diversity and equality”, said Zollhöfer.

The 3-day event offers brands the opportunity to interactively exhibit purpose-driven stories and products. In addition to the thematic focus on fashion, brands from the fields of wellbeing, beauty, mobility and technology will also present innovative products and solutions.

• 10–12 May 2022, Cologne, Germany (hybrid)
• The unique concept of presenting all renewable material solutions at one event hits the mark: bio-based, CO2-based and recycled are the only alternatives to fossil-based chemicals and materials

Ready-to-use fossil-free sustainable material solutions with a low carbon footprint are in fast-growing demand. Innovative brand owners are keeping an eye out for such solutions, in particular those that will soon reach the mainstream.

For the second time, nova-Institute presents numerous market highlights from bio- and CO2-based chemicals and materials as well as from chemical recycling: All material solutions based on renewable carbon. Together, there is sufficient potential to completely replace petrochemicals by 2050. To tackle climate change at its roots, all additional fossil carbon from the ground must be substituted with renewable alternatives. Over the course of three days, participants will get a comprehensive overview of the latest developments in the renewable material sector, with a focus on industry-ready solutions from a wide spectrum of sustainable raw materials and technologies.

In 2021, the new concept of the Renewable Materials Conference generated an outstanding response, which exceeded all expectations: 420 online participants witnessed a firework of innovations of non-fossil material. 60 speakers, 11 panel discussions, 500 public posts and 1,500 networking activities were proof of the lively exchange during the three conference days.

In 2022, nova-Institute plans to host the conference physically in the heart of Germany's fourth largest city, Cologne, just a few hours away from France, Belgium and the Netherlands. Expected are 400 participants on-site and many more online. On-site, the conference will be accompanied by a large exhibition where companies and institutes can showcase their recent developments. The supporting program, networking activities and many secluded spots at the location offers excellent opportunities to make new business contacts and refresh old ones.

The focus of the conference: All material solutions based on renewable carbon – avoiding the use of additional fossil carbon. The entire spectrum of renewable materials is covered: bio-based, CO2- based and recycled.

The program includes a diverse range of bio-based materials such as bio-based polymers, plastics and biocomposites (first and second generation, biowaste), CO2-based materials (from fossil and biogenic point sources, atmosphere) as well as mechanically and chemically recycled materials.

• 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.

As the role of lingerie in fashion and athleisure continues to augment, the desire for garments that will meet a new set of values for contemporary consumer lifestyles will flourish. Iluna Group comes back to Interfilière Paris with an important goal: to relaunch the qualities and dimensions of sustainability.

Iluna’s new path begins with the investment in the renewal of machines, which allow it to fly higher in terms of high-tech developments, quality, definition, effects of yarns and patterns. The journey into the new dimension of responsible quality continues with ad hoc developments in the field of GRS (Global Recycled Standard) certified recycled yarns, aimed at unprecedented effects both in look, in performance and in the hands of fabrics. The cord yarn is a precious yarn with a ROICA™ EF premium stretch yarn core, GRS certified and developed with 50% of pre-consumer waste materials content - double, covered with an equally recycled shiny thread; the bright and translucent is instead to add brilliant effects so far not possible with a GRS yarn.

The printing processes are also born from this constant search for innovation towards new materials and new techniques, becoming more and more sustainable: Global Recycle Standard (GRS)-certified sublimation printing and register printing carrying Global Organic Textile Standard (GOTS) certification.