From the Sector

As the demand for recycled plastics grows, so does the size of the machines. This applies to the processing of polyolefins as well as to PET recycling. With its unique dimensions and production capacity, this new size of plant features a screw diameter of 280 mm, implemented for the first time in a VACUREMA® Basic 2628 T large-scale project for producing rPET pellets. EREMA has just shipped the plant to a customer in Brazil.

Up to 40,000 tonnes per year of rPET meeting the highest quality standards can now be produced. "For this purpose, we installed a screw with a length of ten meters, a diameter of 280 millimetres and a weight of 3.5 tonnes, which is the largest ever used in one of our recycling machines," explains Managing Director Michael Heitzinger. The screw was manufactured by 3S, a subsidiary of EREMA GmbH. No less impressive is the reactor of this recycling system, which, with a height of around 10 metres, is also unique and almost reaches the roof of the new production hall. 500 tonnes of input material were recycled during the test phase, which was subject to strict quality control. "The entire project was a great team effort," Heitzinger said, thanking everyone involved.

EREMA as a partner for large-scale projects
Just four years ago, the largest extrusion line supplied by EREMA was designed for a throughput of 15,000 tonnes per year. This size of plant was ordered by customers once or twice a year. In the meantime, machines like this leave the production site in Ansfelden every month. As early as 2020, EREMA proved to be a pioneer and reliable partner for implementing unique large-scale projects. That was when the food and beverage packaging manufacturer Envases Universales Mexico commissioned two VACUREMA® Basic 2625 T machines, each with a screw diameter of 250 mm and a capacity of 30,000 tonnes per year.

• Goal: Creating a unique portfolio in high-value surfactants

Indorama Ventures Public Company Limited (IVL), a global chemicals producer, today announced it agreed to acquire Brazil-based Oxiteno S.A. Indústria e Comércio, a subsidiary of Ultrapar Participações S.A. The acquisition gives IVL a unique portfolio in high-value surfactants and significantly extends its existing Integrated Oxides and Derivatives (IOD) business.

IVL will purchase Oxiteno for US$1.3 billion (subject to adjustments at closing), with a deferred payment of $150 million in 2024. The transaction is subject to customary conditions to closing, including approval of relevant regulatory authorities. The transaction is expected to close in Q1 2022 and will be earnings accretive immediately. Financing is secured through deferred payment, using existing extra cash on our balance sheet, free cash flow generated from existing businesses, short term loans against working capital and the balance as long-term debt.

Oxiteno is a leading integrated surfactants producer, catering to highly attractive end-use markets in LATAM. The acquisition brings an excellent management team, world-class expertise in green chemistry innovation, strong customer relationships in Brazil, Uruguay and Mexico, and substantial growth potential in attractive end markets, including the U.S. through a new facility in Pasadena, Texas. Oxiteno has a strong commitment to environmental governance, and its focus on lowering greenhouse gas emissions will also enhance IVL’s ESG credentials.

Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, announced that, together with armor manufacturing partner, MKU Ltd, has provided next generation armor technology with Dyneema® unidirectional (UD) material to support the Sao Paulo police.

The Sao Paulo police, which is comprised of more than 100,000 officers, is the first law enforcement agency in Brazil to initiate a tender for personal protective equipment based on the latest National Institute of Justice (NIJ) .06 standards for body armor, which provide comprehensive and rigorous compliance for the performance and testing of ballistic materials. In addition to NIJ .06 certification, the tender set extremely lightweight requirements for level IIIA soft armor vests.

The hybrid vest solution developed MKU, a global leader in defense and homeland security solutions, for the Sao Paulo police utilizes predominantly Dyneema® UD material to reach new levels of performance and protection while simultaneously enhancing user comfort and mobility. Dyneema®, a strong and light fiber, is the one of leading global brands for ultra-high molecular weight polyethylene (UHMwPE) fiber, UD and fabrics, offering ballistic solutions for personal and vehicle armor that combine maximum strength with minimum weight.

In soft armor applications, Dyneema® offers up to 35 percent weight reduction when compared to competitive materials, while still protecting against both legacy and emerging threats.

In addition to the lightweight armor requirement, the vests were also thoroughly tested to ensure performance with NIJ ballistic reports, NIJ certification and in-house ballistic testing both during the tender process and after the vests were received.

In line with DSM’s commitment to protect people and the environment they live in, one of the world’s first ever bio-based HMPE fibers was introduced in 2020.

• Successful implementation of measures to fight the COVID-19 pandemic with a focus on the safety and health of employees, customers and partners and securing sustainable business development
• Implementation of strategic investment projects progressing on schedule – financing contracts for the construction of the pulp plant in Brazil concluded according to plan
• Lenzing expands its lead in sustainability and circular economy – first TENCEL™ branded carbon-zero fibers launched
• Successful issuance of a EUR 500 mn hybrid bond further strengthens balance sheet structure
• Lenzing expects recovery of the fiber market to continue in 2021 and an operating result on pre-crisis level

Lenzing – In 2020, the Lenzing Group successfully responded to the extremely difficult market environment due to the COVID-19 crisis by implementing a broad package of measures and remains fully on track in terms of its strategy. The measures focused on protecting Lenzing’s employees and partners and on safeguarding its operations. Lenzing flexibly adjusted production volumes and was able to offer its customers the usual delivery service at any time. In addition, Lenzing also intensified measures for structural earnings improvement to mitigate the effect of the pressure on fiber prices and demand for fibers, and reduced its operating costs.

Please read the attached document for more information.

The Lenzing Group scored a total of 30.5 points (4 points more compared to last year) and received for the first time a leading dark green shirt, the highest Hot Button ranking category. Lenzing once again convinced the non-profit organization Canopy with its innovative vision with regard to circular economy and REFIBRA™ technology, its high level of transparency in wood and pulp sourcing, as well as its active contribution towards protecting forests and preserving biodiversity.

In this widely recognized ranking, Canopy grades the world’s 31 largest producers of wood-based fibers with respect to their sustainable wood and pulp sourcing, their efforts with regard to using alternative non-wood feedstock and their achievements for lasting conservation in critical forests round the globe.

Leading in sustainable sourcing with a decade-long clean record
Wood and pulp are the most important raw materials for Lenzing’s sustainable production of cellulosic fibers. The Lenzing Group is particularly proud of its decade-long clean record of sustainable wood sourcing, evidenced by its long-standing credible commitment to wood certification, which Lenzing pioneered already in the 1990s. Lenzing’s commercial wood sources are  100 percent either certified by FSC® or PEFC™, or controlled in line with FSC® standards.

Social impact and afforestation project in Albania
At the backdrop of Lenzing’s long history of clean sourcing, the company is even more aware that the global forests are seriously threatened by illegal logging and deforestation but also by the consequences of climate change. This is why Lenzing – in addition to supporting a number of Canopy’s conservation projects – has set up a social impact and afforestation project in Albania (Southern Europe).*

Special focus on sustainable plantations in Brazil
For its latest investment in a pulp mill in Brazil, Lenzing actively collaborates with Canopy to ensure that the wood sourcing is in line with sustainable practices. The plant will be among the highest productive and energy-efficient facilities in the world and will feed the 40 percent excess bioelectricity generated on site as “green energy” into the public grid.*

REFIBRA™ technology: Commercially available since 2017
As a long-standing player in the industry, Lenzing has undertaken extensive research into many different alternative non-wood cellulose sources such as annual plants, like hemp, straw, and bamboo. Until now, textile waste has turned out to be the most promising alternative feedstock for scaled commercial use.
Lenzing’s lyocell fiber produced with the breakthrough REFIBRA™ technology (Eco Cycle technology for nonwoven applications) uses textile waste as part of the feedstock and is an important step towards a circular economy.*

50 percent recycled content by 2024
It is Lenzing’s vision to make textile waste recycling a common standard process like paper recycling and to offer fibers produced with REFIBRA™ technology with up to 50 percent recycled content from post-consumer waste by 2024.

*Please read attached document for more information

During the Innovate Textile & Apparel (ITA) virtual textile machinery show which will run from October 15th-30th 2020, Monforts will be emphasising its leadership position in three key fields – advanced coating, denim finishing and fabric sanforizing.

With its multi-head capability, the latest Monforts texCoat coating system provides flexibility with an unprecedented range of options and a wide range of modules available.

Refinements
“Since we acquired the coating technology that our systems are based on we have made a lot of refinements and all of them are reflected in higher coating accuracy and the resulting quality of the treated fabrics,” says Monforts Head of Technical Textiles, Jürgen Hanel.
“Our systems have the shortest fabric path from the coating unit into the stenter and we have all variations of coating application systems too – and all of these options are available in wider widths, with the engineering and manufacturing from a single source here in Europe.”

CYD
Denim finishing is meanwhile a field in which Monforts has an undisputed lead and it has been working closely with its many partners in the key denim manufacturing countries of Bangladesh, Brazil, China, India, Mexico Pakistan and Turkey to develop advanced solutions. The latest of these is the CYD yarn dyeing system.
“CYD is based on the proven Econtrol® dyeing system for fabrics*,” explains Monforts Head of Denim Hans Wroblowski. “It integrates new functions and processes into the weaving preparatory processes – spinning, direct beaming, warping and assembly beaming, followed by sizing and dyeing – in order to increase quality, flexibility, economic viability and productivity. The CYD system has been developed in response to a very strong market demand.”

Pre-shrinking
Monforts has also recently delivered a significant number of its latest Monfortex sanforizing lines to customers around the world.
Sanforizing is vital to final fabric quality, pre-shrinking it by compressing prior to washing, to limit any residual or further shrinkage in a made-up finished garment to less than 1%, for perfect comfort and fit over an extended lifetime.

As with industry-leading Montex stenters, Monfortex lines benefit from the latest Qualitex 800 control system which allows all parameters to be easily automated via the 24-inch colour touchscreen, including production speed, control of all fabric feed devices, rotation spray or steaming cylinder options, the width of the stretching field and the rubber belt pressure. Up to 10,000 separate process parameter records can be generated and stored by the data manager.

*Econtrol® is a registered mark of DyStar Colours Distribution GmbH, Germany.

As part of its active engagement in the fight against COVID-19, Archroma, a global leader in color and specialty chemicals towards sustainable solutions, started bulk production of a new range of hand sanitizers at its Landhi site in Pakistan in May 2020. The new Kieralon® HS range was developed by the R&D team at the Archroma Center of Excellence in Karachi, in line with the World Health Organization (WHO) recommendations.

Sanitizers are currently in high demand in Pakistan in hospitals, isolation centers, medical institutes and other health care environments, due to the COVID-19 outbreak. The use of sanitizers has also been made mandatory in all factories, offices and public places, driving the demand even higher.

The Kieralon® HS range is being produced in different grades and concentrations to eliminate a broad range of germs, bacteria and viruses, to cater for various healthcare and hygiene requirements. They also include emollients and display non-stick and quick drying effect, for skin comfort.

In April 2020, Archroma announced the introduction in Brazil of Mowiplus® HPC 9600, a new thickener for sanitizing gels, developed to address the global shortage in the thickener traditionally used for sanitizing gels.

Archroma is also actively supporting manufacturers in the production of face masks and medical protective equipment. Its antimicrobial and barrier products in particular are in high demand, and Archroma is making every effort to assist existing and new customers entering this sector by providing technical know-how and support.

The company is supporting producers of packaging & paper who are facing high demand for food packaging as many restaurants have switched to delivery or take-away, as well as for parcels and boxes supporting online shopping.

Mujtaba Rahim, CEO of Archroma Pakistan comments, “Within Archroma we are cognizant of the acute community need for high quality hygiene products that are also comfortable for users, as hand sanitizers tend to be harsh on the skin, so we took on the challenge to develop and start production in record time. The Archroma team in Pakistan won’t rest in fighting the COVID-19 pandemic, and hopes this new product will help to stop the spread of the virus and the suffering that it causes.”

The Management Board of Lenzing AG, a leading manufacturer of specialty fibers made from the renewable raw material wood, has resolved to propose to the Annual General Meeting a dividend of EUR 1.00 for the 2019 financial year. This dividend proposal reflects the large investments in the growth projects in Thailand and Brazil.

The total dividend payout to shareholders will amount to about EUR 26.6 mn, subject to the acceptance of the proposal by the Supervisory Board at its meeting scheduled for March 11, 2020 for the purpose of approving the consolidated financial statements as well as the approval granted by Lenzing AG shareholders at the Annual General Meeting on April 16, 2020.

Retailers invest in emotionalisation and digitalisation +++ Top theme: linking online with offline shopping +++ Focus on sustainability +++ Accompanying Stages and Specials received very well

The World’s No.1 Retail Trade Fair, EuroShop 2020, drew to a close on Thursday (20 February 2020) after five successful days in Düsseldorf: 2,300 exhibitors from 57 nations reported of very good leads and concluded business deals. Furthermore, lively follow-up business is expected. 94,000 visitors travelled to the Rhine to gather information on the line-up of products, trends and concepts for retailers and their partners featured in 16 exhibition halls.  

“We are delighted that EuroShop once again successfully proved to be the most relevant platform for the global retail community when it comes to trends, inspirations and networking. Our exhibitors deserve the highest praise for their loyalty. With their innovative power they again proved the major attraction for an entire industry,” said Erhard Wienkamp, Managing Director at Messe Düsseldorf, voicing his great satisfaction with EuroShop 2020 results.

Exhibitors especially applauded the high international attendance at EuroShop. 70% of the EuroShop audience travelled to Düsseldorf from abroad. Large delegations came for example from Brazil, Australia and New Zealand. Trade visitors from a total of 142 countries attended EuroShop 2020.

“This high level of international interest clearly documents the dynamism of the global retail world and the exceptional position EuroShop enjoys as its economic engine,” said Michael Gerling, Chairman of the EuroShop Advisory Board and CEO of the EHI Retail Institute Cologne.

“The success of eCommerce is a real encouragement for retailers: they have understood they have to give their shoppers good reasons beyond the ranges to enter their stores. This competition has taken retail as a whole to the next quality level. Investment is being made in shop fitting so as to create customer journeys,” explains Gerling who adds: “Beyond this, retail digitalisation is booming. It enables retailers to offer their shoppers even more services and link online and offline channels, on the one hand, while simplifying process flows, logistics and lots more, on the other.” At EuroShop 2020 digital transformation was therefore a key focus, also in terms of achieving the highest energy efficiency and sustainability possible.

Exhibitors underlined the high level of expertise among visitors at the event, especially their pronounced decision-making powers, because 70% of the trade fair guests were in international top management. Many of them also used their visit to EuroShop to learn about best practice cases and forward-looking trends in retail at the in total eight Stages. The varied programme of lectures held on the individual Stages on such topics as Retail Technology, Architecture and Store Design or Expo & Event was well attended across the board. Meeting with the same high level of approval were the numerous Specials at EuroShop, including the Start-up Hub, the Designer Village and Premium City.

Numbers speak for themselves here: 96% of trade fair visitors were satisfied with their visit to the trade fair. Just as many confirmed the outstanding position of EuroShop as a trend barometer, networking platform and largest event for the retail sectors.

Due to the current situation associated with the Coronavirus 19.000 visitors less attended this time than at the record event 2017.

The next EuroShop will be held in Düsseldorf from 26 February to 2 March 2023.  

• Investment of approx. USD 1.3 bn in 500,000 t dissolving wood pulp plant
• Key milestone to structurally strengthen cost leadership position
• Significant step towards carbon neutrality

The Lenzing Group and Duratex announced that they will build a 500,000 t dissolving wood pulp plant in the State of Minas Gerais, near Sao Paulo (Brazil). The start-up is planned for the first half of 2022. In the joint venture, Lenzing holds a 51 percent, Duratex a 49 percent stake. The expected industrial CAPEX will be approx. USD 1.3 bn. The project is financed through long-term debt. The corresponding financing contracts are expected to be concluded at the end of the first quarter of 2020.

Key milestone to structurally strengthen cost leadership position
The new dissolving wood pulp plant strengthens the Lenzing Group’s backward integration and cost position as well as its specialty fiber growth in line with its sCore TEN corporate strategy. The single-line dissolving wood pulp plant with an annual nameplate capacity of 500,000 tons will be the largest and most competitive production facility of its kind. Dissolving wood pulp is a key raw material required for manufacturing Lenzing’s biobased fibers. The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group.

“Wood-based cellulosic fibers offer an important contribution to enhance sustainability in the textile industry. In line with its corporate strategy sCore TEN, Lenzing is committed to drive organic growth in this market. With this investment, we will become more competitive, act more independently and subsequently strengthen our market position. The trust and support of the main shareholders of Lenzing and Duratex were of great importance for this key project”, states Stefan Doboczky, CEO of the Lenzing Group.

Strong focus on sustainability
In planning the new production facility, particular importance was given to sustainability aspects. The joint venture secured FSC®-certified plantations1 covering an area of over 44,000 hectares to provide the necessary biomass. These plantations operate completely in accordance with the guidelines and high standards of the Lenzing Group for sourcing wood and pulp. The plant will operate among the highest productive and energy-efficient in the world and will feed the 40 percent of excess bioelectricity generated on site as “green energy” into the public grid. With this project, Lenzing sets a milestone in its strategy to carbon neutrality.