From the Sector

Making outdoor sports accessible to as many people as possible since 1976 through quality, innovative gear, powerhouse sporting goods brand Decathlon has launched the first product of its long-term partnership with CELLIANT® infrared technology from Hologenix® – Adult Ski Socks. They are introduced in its Wedze range of ski and snowboarding socks (“wed’ze” means ‘“a small turn on the snow” in the Savoyard dialect in the Alps where this brand is headquartered).  

Decathlon was attracted to CELLIANT’s ability to convert body heat into infrared energy, improving local circulation and cellular oxygenation to support stronger performance and faster recovery. Skiers who often suffer from muscle fatigue in the calf area will appreciate the infrared infusion and light compression attributes that were specifically chosen with this in mind. The sock was also thoughtfully designed for minimum thickness, allowing for a comfortable fit within the ski boot, without sacrificing warmth or durability. Anti-friction thread on the sole and toes helps limit irritation, and seams are intentionally positioned to eliminate discomfort. The socks are offered in a Asphalt Blue color in a variety of sizes, both online and in retail stores worldwide.

Highlights

• Net sales in the third quarter of 2023 were down by -20.3% organically versus a record Q3 2022 as expected due to -15% lower volumes (€-512 million) in a weaker macro environment and -5% lower prices (€-188 million) in a context of lower raw material costs and energy prices. On a sequential basis, net sales were down -11% versus Q2. The volume reduction was broad based across regions and businesses.
• Structural cost savings for the first nine months of 2023 amounted to €63 million, bringing the total savings since 2019 to €530 million.
• Underlying EBITDA of €702 million in Q3 2023 was down by -18.5% organically compared to a record Q3 2022 driven by lower volumes, partly offset by €36 million in positive net pricing and €41 million in lower fixed costs. Nine months EBITDA at €2,331 million is only down -1% organically versus 2022, a clear indication that strong historic pricing and cost discipline momentum is being maintained.
• The underlying EBITDA margin of 25.6% in Q3 2023 was sustained relative to Q3 2022 despite lower volumes, while nine months EBITDA margin of 25.9% is +1.3pp higher, mainly as a result of positive net pricing and cost discipline.
• Underlying Net Profit was €340 million in Q3 2023 compared to €509 million in Q3 2022.
• Free Cash Flow of €346 million in Q3 2023 resulted in a nine-month 2023 total of €1,027 million and a FCF conversion ratio of 39.4%.
• ROCE was 15.2%, broadly in line with Q3 2022.
• Continued strengthening of the balance sheet with underlying net debt at €2.8 billion, which translated to a historic low leverage of 0.9x.
• As explained on page 2, an interim dividend of €1.62 gross per share has been validated by the Board of Directors, in line with historical interim dividend policy to be paid by Solvay SA on January 17, 2024.

2023 Outlook
Given the current volume momentum, Solvay reconfirm their full year guidance, at the lower end of the prior EBITDA guidance range.

Solvay announced the future Board of Directors of SYENSQO, effective upon completion of the planned separation of Solvay into two companies – SOLVAY and SYENSQO – which is on track to be completed in December 2023.

SYENSQO’s Board will be composed of 10 members, including 6 independent members, 3 members representing the reference shareholder, Solvac, and the company CEO. They have deep expertise in specialty industries, international business operations, risk management, corporate governance, finance and clean technology.

The following individuals will serve on the SYENSQO Board of Directors:
Rosemary Thorne will serve as independent Director and Chair of the SYENSQO Board, as well as Chair of the Board’s Finance Committee. She is currently an Independent Director on the Solvay Board of Directors, appointed in 2014, and Chair of the Board’s Audit Committee. She is also an Independent Director on the Board of Merrill Lynch International (UK), a wholly-owned subsidiary of Bank of America, serving as Chair of the Audit Committee. Ms. Thorne has decades of financial leadership experience across a wide range of industries. She previously served as Chief Financial Officer at J. Sainsbury, the UK’s largest supermarket chain at the time; Bradford & Bingley; and Ladbrokes. Ms. Thorne previously sat as an Independent Director on the Boards of Royal Mail Group, Cadbury Schweppes, Santander UK, First Global Trust Bank and Smurfit Kappa Group.

Dr. Ilham Kadri will serve as Chief Executive Officer and member of the Board of Directors of SYENSQO. She is currently CEO and President of the Executive Committee at Solvay. Ms. Kadri has successfully led the turnaround of Solvay, delivering double-digit EBITDA growth and 18 consecutive quarters of positive free cash flow, deleveraging the balance sheet and promoting superior people engagement. She is an independent Board member at A.O. Smith and L’Oréal. She is active in non-profit organizations, as Chair of the World Business Council for Sustainable Development (WBCSD), member of the steering committee of the European Round Table of Industrialists (ERT) as well as a permanent member of the World Economic Forum’s International Business Council (WEF). Ms. Kadri has extensive leadership experience across a variety of industries in four continents and with leading industrial multinationals, including Shell, UCB, Huntsman, Dow, Sealed Air. Prior to Solvay, she was CEO and President of Diversey in the USA, led the company’s return to profitability and resulting spin off and divestiture to Bain Capital. She founded two non-Profit foundations: the Solvay Solidarity Fund in Belgium in 2020 which supported more than 7000 families affected by Covid-19 and natural disasters; and founded the ISSA Hygieia Network in 2015 in the USA, to help women in the cleaning industry. She received two Doctor Honoris Clausa from EWHA University in Korea and Université de Namur in Belgium.

Julian Waldron will serve as independent Director and Chair of the Audit Committee. He currently serves as Deputy Executive Chairman of privately-held Albea Group, a global beauty and personal care packaging company which operates 35 facilities in Europe, Asia and the Americas. Mr. Waldron has held senior leadership roles at several leading listed companies in the industrial, technology and services sectors and brings a wealth of expertise in finance and business operations. Prior to joining Albea in 2022, he was Chief Financial Officer of Suez for three years after serving as Chief Financial Officer and subsequently Chief Operating Officer of Technip. He started his career at UBS Warburg where he spent 14 years. Mr. Waldron also served as an independent Board member and Chairman of finance, risk and investments at Carbon Clean, a privately-owned carbon capture company dedicated to achieving net zero.

Heike Van de Kerkhof will serve as independent Director and Chair of the Nomination Committee. She currently sits on the Board of OCI N.V.. Ms. Van de Kerkhof brings more than 30 years of experience in the chemicals, oil & gas and materials industries, having served in numerous leadership roles around the globe. From 2020 to 2023, she was Chief Executive Officer of Archroma Management, a global specialty chemicals company. During her tenure, she successfully completed the transformational acquisition of Huntsman’s Textile Effects business. Prior to her role at Archroma, Ms. Van de Kerkhof served as Vice President of Lubricants, Western Hemisphere at BP, and held positions at Castrol, The Chemours Company, and Neste Corporation. She also held many leading roles within DuPont over 18 years.

Matti Lievonen will serve as independent Director and Chair of the Compensation Committee. He is currently an independent director on the Solvay Board, appointed in 2017. Mr. Lievonen is a proven executive in the energy, forestry, power and automation industries with an extensive track record of leading businesses through climate transition. For over ten years until 2018, he served as Chairman and Chief Executive Officer of Neste Corporation, a global leader in next-generation renewable fuels and chemicals. During his time at Neste, Mr. Lievonen successfully promoted the development of clean fuels as well as Finland’s bioeconomy strategy in advancing renewable transportation fuels. He has also been involved with organizations such as Fortum Board, SSAB, Nynäs AB, Ilmarinen, and the HE Finnish Fair Foundation. Until 2021, Mr. Lievonen was also Chairman of the Board of Directors at Fortum. He has been recognized for his admirable leadership and expertise, and in 2016 was awarded an Honorary Doctorate of Technology by the Aalto University Schools of Technology.

Dr. Françoise de Viron will serve as non-independent Director, Chair of the ESG Committee and Vice-Chair of the Board. She is currently a director of the Solvay Board, appointed in 2013. Ms. de Viron is a regarded academic leader and has extensive experience in innovation, R&D and qualitative research. She is a Professor Emeritus at the Faculty of Psychology and Education Sciences and Louvain School of Management at UCLouvain in Belgium where she has been an Academic Member of various groups at UCLouvain. Ms. de Viron previously served as the president of AISBL EUCEN – the European Universities Continuing Education Network. Prior to her university position, from 1985 to 2000, she was in charge of developing Artificial Intelligence applications at Tractebel S.A. (now Tractebel-Engie).

Roeland Baan will serve as independent Director. He currently serves as President and Chief Executive Officer of Topsoe, a privately-held leading provider of clean energy and petrochemical technologies. He is also Chairman of the Supervisory Board of SBM Offshore NV. Roeland Baan has extensive experience in supply chain management, M&A, business development and operations management. Prior to joining Topsoe in 2020, he was President and CEO of Outokumpu and has held several executive roles at global organizations such as Aleris International, ArcelorMittal and SHV NV. He spent over 16 years in various roles across the globe at Shell, living in South America, in Africa and in the United Kingdom.

Edouard Janssen will serve as non-independent Director. He is currently a Director on the Solvay Board, appointed in 2021. Earlier this year, he was appointed Chief Financial Officer of D’Ieteren Group, a European leader in automotive distribution services. Mr. Janssen is also a Board member of privately-held Financière de Tubize and Union Financière Boël, as well as Co-Founder and Chair of Trusted Family. Mr. Janssen is active in academics, as Vice-Chair of the International Advisory Board of the Solvay Brussels School of Economics and Management and on the advisory board of the INSEAD HGIBS. He brings expertise in finance, strategy, entrepreneurship, business management, planning and marketing. He has served as Solvay’s Vice President in strategy and M&A between 2019 and 2021, and prior to that, he was the US-based General Manager for North- and Latin America at Solvay’s Aroma Performance Global Business Unit.
 
Dr. Mary Meaney will serve as non-independent Director. She is currently a member of the Board of Directors and of the Audit Committee of Groupe Bruxelles Lambert SA. She also sits on the Board of Directors and the Remuneration Committee of Beamery, the privately-held talent management company. She is a member of the Board of Directors and of the Finance Committee of Imperial College, London.Dr. Meaney will bring expertise in Strategy, M&A, and change management, which she acquired over a 24-year career at McKinsey. She was a Senior Partner, served on the McKinsey Shareholders Council and led McKinsey’s global Organization practice.

Nadine Leslie will serve as independent Director and is based in the United States of America. She is currently a member of the Board of Directors of Provident Financial Services , as well as a Non-Executive Director of Seven Seas Water Corporation, a water and wastewater treatment multinational company. She also sits on the Board of Trustees of Hackensack Meridian Health Network and is active as strategic consultant for civil engineering firm T&M Associates. Over a 22-year career at Suez, Ms. Leslie held several leadership positions, the last one being Chief Executive Officer of Suez North America, until 2022. Previously she served as Executive Vice President Health & Safety.

Carbios  has been granted the building permit and operating authorization for the world’s first PET[1] biorecycling plant, allowing construction to start. The plant will be built in Longlaville in the Grand-Est Region on a 13.7-hectare site adjacent to the existing PET production plant of Indorama Ventures, its strategic partner.

This state-of-the-art facility, scheduled for commissioning in 2025, will play a crucial role in the fight against plastic pollution by providing an industrial-scale enzymatic recycling solution for PET waste. Carbios’ technology enables PET circularity and offers an alternative raw material to virgin fossil-based monomers, allowing PET producers, chemical companies, waste management firms, public entities, and brands to have an effective solution to meet regulatory requirements and fulfill their sustainability commitments. The plant will have a processing capacity of 50,000 tons of post-consumer PET waste per year (mostly waste that is non-recyclable mechanically, equivalent to 2 billion colored PET bottles or 2.5 billion PET food trays) and will generate 150 direct and indirect jobs in the region.
 
The plant will be built on a 13.7-hectare site acquired by Carbios on Indorama Ventures’ existing PET plant site without suspensive conditions. The land area gives the possibility to double the facility’s capacity.
 
A plant designed to minimize its carbon footprint
The plant is designed to maximize circularity, with high-quality output products, and minimize its environmental footprint, especially with regards to energy consumption. Optimizations are underway to further increase the recycling of water required for the process.

Located near the borders with Belgium, Germany, and Luxembourg, the plant’s location is strategic for nearby waste supply. Moreover, Carbios’ biorecycling technology can process complex waste that conventional technologies cannot recycle and produce food-grade products, enhancing the plant’s flexibility for waste supply. Carbios and Indorama Ventures will collaborate to ensure the feedstock supply of the Longlaville plant, located in a geographical area where the supply potential could reach 400,000 tons in 2023, and up to 500,000 tons in 2030 with improved selective collection.

Carbios has already secured an initial supply source by winning part of the CITEO tender for the biorecycling of multilayer food trays. The consortium composed of Carbios, Wellman (a subsidiary of Indorama Ventures), and Valorplast has been selected to handle 30% of the tonnage proposed by CITEO. Carbios will handle the portion of the flow consisting of multilayer food trays at its Longlaville plant starting in 2025.
 
Plant funding secured
In July 2023, Carbios successfully completed its capital increase for approximately €141 million, the largest capital increase on Euronext Growth since 2015. This amount is mainly intended to finance the construction of this plant, for which the total investment is estimated at around €230 million. The portion of the investment not funded by the proceeds from the July 2023 capital increase is expected to be covered by Indorama Ventures, which plans to mobilize approximately €110 million for this project, French state subsidies of €30 million, and €12.5 million from the Grand-Est Region, as well as a portion of Carbios Group’s available cash, which amounted to €78 million as of 30 June 2023.

Hologenix is teaming up with lifestyle brand Duluth Trading Company on two Duluth Trading product collections this fall that are infused with CELLIANT® infrared technology.
 
CELLIANT is an all-natural bioceramic blend of minerals that converts body heat to full-spectrum infrared energy, then reflects it back to the body – increasing local blood circulation and improving cellular oxygenation.
 
Known for their problem-solution products, Duluth Trading launched two collections this fall that feature the CELLIANT technology: Men’s Redwood Recovery Underwear and the recovIR Sleepwear Collection (available in men’s and women’s). With the help of CELLIANT, the collections aim to provide the wearer with faster recovery and more restful sleep.

Toray Industries, Inc. will expand the French subsidiary Toray Carbon Fibers Europe S.A.’s production facilities for regular tow medium- and high-modulus carbon fibers (up to 24,000 filaments). This move will increase annual capacity at the Abidos plant (South-West France) from 5,000 metric tons annually, to 6,000 metric tons. Production is expected to start in 2025.

Demand for medium- and high-modulus carbon fibers is rising in Europe, driven by a push to move towards a net-zero society. This growth is mainly due to higher build rates for commercial aircrafts (secondary structures and engines), as well as centrifuge for energy production, satellites, and high-end automobiles. By boosting carbon fiber production capacity in Europe, Toray is responding to its customers’ demand for medium and high-modulus carbon fibers, as befits the market leader.

The European Union (EU) has upgraded the requirements for the Class 1 Medical Device designation and Hologenix®, creators of CELLIANT®, has met the stricter requirements for this important market. This means that compliant manufacturers can continue to use the CE mark on their EU products containing CELLIANT.

Brand partners simply need to comply with the requirements that Hologenix provides, and do not have to pursue regulations on their own. Regulatory status validates the science and technology behind CELLIANT, a natural blend of bioceramic minerals that absorb body heat and reflect it back as therapeutic infrared energy.

The list of products that are now registered in the EU as Class 1 Medical Devices has grown considerably since 2014 when Hologenix first sought registration and now includes bed blankets, bed sheets, duvets, duvet covers, mattresses, mattress covers, pillows, heat-reflective upper and lower torso garments, therapeutic diabetic socks, compression socks/stockings, support bandages, wraps and limb mobilization/support skin adhesive tape.  

The transition to the Medical Device Regulations in the EU for CELLIANT Class 1 medical devices includes more stringent requirements to demonstrate medical device safety for users, a refined quality management system and detailed technical documents.

The combination of high strength and rigidity with sustainability and a neutral carbon footprint makes flax the ideal raw material for natural fibre-reinforced plastics. vombaur offers composite textiles made of this natural fibre for the automotive, wind power, construction or sports industries and many other sectors.

Flax fibres are rigid and tear-proof. They have natural bactericidal properties, are virtually antistatic, stain resistant and easy to spin. Humans have taken advantage of these properties to manufacture robust, stain-resistant and lint-free textiles. Between the late 19^th and late 20^th centuries, cotton largely replaced natural fibres. Because flax can be grown in Europe and consumes less energy and water than cotton production, the material's importance is currently growing again, for both clothing and composites. Regional textile value added chains in Europe – flax makes them possible.

Ideal mechanical properties
vombaur makes the mechanical properties of flax usable for lightweight design. Because flax fibres are particularly rigid and tear-resistant, they ensure great stability in natural fibre-reinforced plastics (NFRPs). And thanks to their low density of 1.50 g/cm3, the fibres weigh virtually nothing. On top of this, fibre-reinforced plastics are less prone to splintering than glass fibre-reinforced plastics.

Excellent carbon footprint
The cultivation of flax binds CO₂ and the production of natural fibre-reinforced plastics (NFRPs) generates approximately one third less CO₂ emissions compared with conventional fibre-reinforced plastics. Energy consumption is substantially lower. This saves resources. The use of flax fibre tapes by vombaur in lightweight design applications also improves the product's carbon footprint and contributes to a secure, regional supply chain.

Recycling without impacting on quality
Flax offers another sustainability benefit: more recycling cycles than glass- or carbon fibre-reinforced plastics – without impacting on quality. Thermoplastic fibre-matrix prepregs are melted and reused in the recycling process. The natural fibres can be used in other products such as natural fibre-reinforced injection moulded parts.

Sustainable product developments for many industries
"Orthoses for high-performance sports, high-tech skis, wind turbines, components for the automotive industry or aerospace, but also modern window profiles – the application scope for our lightweight design flax tapes is amazingly diverse", as Carl Mrusek, Chief Sales Officer at vombaur explains. "After all, wherever flax tapes are used, three key properties come together: light weight, strength and sustainability".

Rudolf GmbH, a provider of chemicals to the textile industry, can now offer side-by-side performance tests of the age-old “dip and squeeze” pad versus precision spray finishing with the delivery of Baldwin Technology Inc.’s TexCoat ™ G4 lab-scale unit.

The new TexCoat lab-scale unit at Rudolf’s Geretsried, Germany-based Customer Solution Center, tests the sprayability of chemicals on fabrics as an additional tool to help the market transition to precision spray with confidence in the performance and sustainability of the end result.
 
With Baldwin’s innovative system, the chemistry is precisely distributed across the textile surface and is applied only where it is required, on one or both sides of the fabric. The non-contact technology eliminates chemistry dilution in wet-on-wet processes, allowing full control of maintaining consistent chemistry coverage rates.
 
Plus, pad bath contamination is eliminated, and changeovers are only required when there is a change of finish chemistry. On wet-on-dry processes, the finish is applied with 50% of the amount of water required for pad finishing. Dryer fabric entering the stenter means less water to evaporate resulting in less energy and higher production speeds.
 
More specifically, with Baldwin’s TexCoat G4, textile finishers can track and control the finishing process. Changeovers are quickly performed thanks to recipe management, including automated chemistry and coverage selection. Furthermore, the system takes speed information from the drying process to insure exact coverage regardless of any change in speed. TexCoat G4 measures every drop of chemical usage ensuring that the amount of chemical add-on is precise.
 
In addition, the TexCoat G4 system can process a wide range of low-viscosity water-based chemicals, such as durable water-repellants including PFAS-free, softeners, anti-microbials, easy care resins, flame retardants and more. Baldwin’s technology utilizes the same chemicals used in the traditional pad bath, with no special auxiliaries required.

Die AZL Aachen GmbH, bekannter Innovationspartner für Industriekooperationen auf dem Gebiet der Leichtbautechnologieforschung, startet eines neuen Projekts mit dem Titel "Trends und Designfaktoren für Wasserstoffdruckbehälter". Das Projekt wird Fragestellungen der Industrie in Bezug auf die Wasserstoffspeicherung adressieren.

AZL Aachen GmbH, a recognized innovator in lightweight technologies research and industry collaboration, announces the initiation of a new project titled "Trends and Design Factors for Hydrogen Pressure Vessels". The project aims to address industry needs surrounding hydrogen storage.

Hydrogen has gained significant attention as a key technological solution for decarbonization, with high pressure storage and transportation emerging as vital components. Its applications extend from stationary storage solutions to mobile pressure vessels employed in sectors such as transportation and energy systems.

The AZL team, renowned for its high reputation in providing market and technology insights as well as developing component and production concepts in the format of Joint Partner Projects seeks for companies along the whole composite value chain interested in further developing their application know how in this economically highly relevant field.

The project will provide an in depth exploration of market insights, regulatory standards, and intellectual property landscapes. Beyond this, there is a dedicated focus on staying updated with state of the art and advancements in design, materials, and man ufacturing techniques.

An integral component of the project involves the creation of reference designs by AZL´s engineering team. The reference designs will encompass a variety of pressure vessel configurations and will consider a diverse range of materials and production concep ts.

With the scheduled project start in October 2023, and a project timeline of approximately nine months, AZL encourages companies active across the composite value chain to participate. Companies interested in participating or seeking further information should reach out directly to the AZL expert team.