From the Sector

The antitrust authorities in Germany, Austria and Poland have approved the acquisition of Heytex core business by Freudenberg Performance Materials Holding GmbH, the parent company of Mehler Texnologies. Heytex core business with three production locations (in Germany and China) and all headquarter-related functions will therefore become part of the newly-formed specialist for coated technical textiles.

With this merger, Mehler Texnologies and Heytex are expanding their technology platform and their global market presence, and increasing their R&D capacities. This will generate additional leverage for the development of innovative solutions for their joint customers.

Heytex operates worldwide; the Bramsche, Neugersdorf and Zhangjiagang sites will play a key role in the future direction of the technical textiles business at Freudenberg Performance Materials due to their good investment status and the expected synergies.

“We are delighted that Heytex has become part of Freudenberg Performance Materials. This lays the foundation for the two strong brands Mehler Texnologies and Heytex to grow together for the benefit of customers,” Dr. Andreas Raps, CEO of Freudenberg Performance Materials and Member of the Freudenberg Group Executive Council, commented. He went on to say: “Mehler Texnologies and Heytex will make up the newly-formed Coated Technical Textiles Division at Freudenberg Performance Materials. Hans-Dieter Kohake, former CEO of the Heytex Group, will contribute Heytex’s expertise to the management team. As Senior Vice President, Dr. Henk R. Randau will lead the business going forward.”

The European LIFE ANHIDRA project marks a milestone in sustainability with the unveiling of its innovative closed-loop system for treating and reusing textile wastewater. During the event held at the Pizarro facility in Guimarães (Portugal), ANHIDRA was introduced as a revolutionary solution transforming water management in the textile industry. The event brought together the project’s key partners: Jeanologia, the Spanish company responsible for designing and building ANHIDRA and a global leader in sustainable technologies for the textile sector; AITEX, the Textile Industry Research Association; and Portuguese textile company Pizarro, accompanied by representatives from the European Commission.

A solution to reduce the textile industry’s water footprint
The textile industry consumes an estimated 93 billion m³ of water annually, accounting for 4% of global water use. ANHIDRA addresses this critical challenge by regenerating up to 95% of the water used in textile washing and finishing processes, returning it in optimal conditions for reuse.
With zero discharges, zero contamination, and no complex treatments, ANHIDRA stands out with exceptional results:

• 92% reduction in water consumption
• 98% reduction in wastewater generation
• Up to 15% reduction in energy consumption

ANHIDRA not only minimizes environmental impact but also reduces the operational costs associated with traditional water management, making it a competitive and eco-friendly solution.

Innovation and circular economy
Beyond water regeneration, ANHIDRA focuses on reusing textile waste. In collaboration with AITEX, the project is exploring how to transform fibrous fragments collected during water treatment into new textile products, reinforcing the project’s commitment to the circular economy.

"ANHIDRA not only transforms water management in the textile industry but also proves that sustainability and competitiveness can go hand in hand. This system sets a new global benchmark," said Vicent Albert, Jeanologia’s Product and Technology Director.

During the event, attendees observed the various stages of the system in action at the Pizarro pilot plant. The project plans to implement ANHIDRA in at least 36 industrial facilities over the next three years, aiming to expand to 100 systems internationally within five years. This is expected to save up to 12.34 million m³ of water annually.

Funded by the European Union's LIFE program, LIFE ANHIDRA demonstrates how business cooperation and technological innovation can provide effective solutions to major environmental challenges. "Our goal is to make this technology accessible to the entire textile industry, contributing to a more sustainable future for fashion and the planet," concluded Vicent Albert, project coordinator.

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This project has received funding from the European Union's LIFE program (grant agreement no. 101074372). The content of this document is the sole responsibility of the authors and does not necessarily reflect the position of the European Union, CINEA, or the corresponding funding program.

With the publication of the half-yearly figures for 2024, SGL Carbon already announced that the company expects to achieve its adjusted EBITDA guidance for fiscal year 2024 at the lower end of the range of €160 to 170 million. Based on the preliminary figures for the first nine months of the fiscal year 2024, SGL Carbon confirms this statement.

According to preliminary figures, Group sales of SGL Carbon for the first nine months of fiscal year 2024 decreased by 4.8% year on year to €781.9 million (9M 2023: €821.7 million). Preliminary adjusted EBITDA, on the other hand, remained at a comparable level to the prior-year period, at €127.6 million (9M 2023: €130.0 million). Despite the slight sales decline, the adjusted EBITDA margin improved to 16.3% after nine months in 2024 (9M 2023: 15.8%). The reasons for the improved adjusted EBITDA margin are, in particular, product mix effects in the Graphite Solutions and Process Technology business units. By contrast, the ongoing weakness in demand for carbon and textile fiber products in the Carbon Fibers business unit and the early termination of a customer contract at Composite Solutions weighed on the Group's sales and earnings development.

The business unit Carbon Fibers manufactures carbon and textile fibers for the wind and automotive industries as well as various industrial applications. As expected by the Company for the fiscal year 2024, demand for carbon fibers from the wind and automotive industries remains weak. In addition, there is increasing competitive and price pressure due to global overcapacity for both carbon fibers and textile fibers. The company does not expect demand to recover in the coming months and the realizable prices for these products will remain at a low level beyond 2025. Furthermore, SGL Carbon expects that the anticipated improvement in sales and earnings for the Carbon Fibers business unit will be delayed and is revising its existing medium-term planning for Carbon Fibers.

Due to the associated expected deviation an event-driven impairment test is currently being carried out. This indicates a non-cash impairment charge of €60–80 million, which will be recorded in the fourth quarter of 2024. The impairment relates exclusively to Carbon Fibers; the operating business of the other business units is not affected.

SGL Carbon's equity ratio after the impairment is approx. 40% (September 30, 2024: 43.3% according to preliminary figures).

The review of all strategic options for the Carbon Fibers business unit, which was announced by SGL Carbon on February 23, 2024, and has already begun, remains unaffected by the impairment and is currently continuing.

A digital twin supply chain has recently been established by Swedish start-up PaperTale for Sail Racing – a brand well known for its durable and long-lasting performance garments for the marine industry.

The PaperTale system for Sail Racing fully maps a complex network, beginning with farmers in Australia, moving to garment workers in Pakistan and finally reaching consumers in Scandinavia. It incorporates data collection from the three countries using NFC tags and blockchain technology to provide detailed supply chain insights and ensure regulatory compliance for the brand.

Introducing the usually anonymous factory workers responsible for each individual garment to the person buying it is what sets PaperTale apart from other tracking systems – a next level of personalisation that will make a valuable contribution to raising the debate on the true cost of textiles.

“Our system captures the supply chain of a product from cradle to grave, in real-time,” says company founder Bilal Bhatti. “By integrating it into existing planning and management systems, factories and brands can gather and verify the flow of material and their social and environmental data in real-time. Data is added to a public blockchain so it is extremely hard to tamper with, further increasing trust. When a product is finalised, consumers can scan an NFC tag or QR-code to view the entire journey a product has travelled, which craftsmen were involved in the production, and if they have been paid fairly.”

“This technology is a game-changer in that we provide verified information about the social aspects of the manufacturing process and not just information about the components of the garment,” says Bilal. “We need products and processes to be much more connected with people, especially in such a complex supply chain where a high percentage of the work is carried out by contract workers who are unregistered and often exploited.

“When the entire product journey is visible using real-time and verified data, higher trust is created all the way from factories to consumers. Our system makes it possible to start the dialogue on the cost of sustainability, paving the way to increase incentives that result in proper wages, contracts and workplace safety. In respect of environmental sustainability, real-time data makes real-time measurement possible, which will also stimulate brands and factories to reduce emissions, water usage and pollution.”

The collaboration is further highlighted as the primary case study in a just-released white paper prepared by Deloitte, as a guide to how companies could most effectively prepare for the European Commission’s upcoming Digital Product Passport (DPP) and other related legislation.

AZL Aachen GmbH announces the launch of a new Joint Partner Project focusing on the further growth potential and technology developments for composite propellers in the field of air mobility and for composite rotors for small to medium-sized wind energy systems.

The nine-month consortial industry project will investigate current and future composite applications for propellers and rotors and their requirements, provide technological insights and develop new product concepts and evaluate them in terms of economic efficiency.

The project aims to address the growing demand for efficient, powerful and compact composite propellers and rotors for the growing markets of air mobility and decentralised power generation. Although the application, manufacturing and material technologies for propellers and rotors made of composite materials have proven to be technically mature, they have so far mainly been used in the high-performance sector for large propeller aircrafts and large wind turbines. Due to the increasing interest in efficient electric propulsion system in the field of air mobility, e.g. air taxis or parcel delivery drones, as well as for decentralised energy generation with the help of small/medium-sized wind energy systems, a rising demand for these components and their production volumes are expected.

AZL will bring together experts along the entire value chain in the project to analyse current and future product concepts. During the project, the participating companies will gain a comprehensive understanding of composite propeller and rotor technology. The project team will carry out a detailed screening of current and future technologies, investigate different materials and processes for the production of propellers and rotors and elaborate design options as well as analyse and evaluate them in terms of technological and cost-effective criteria.

Interested companies can join the project consortium until the Kick-Off on September 18th, 2024.

Indorama Ventures Public Company Limited (IVL) reported a slight rise in quarterly performance, supported by a gradual recovery in sales volumes and as management executes the company’s IVL 2.0 strategy to optimize its manufacturing model, reduce costs, and enhance competitiveness.

Indorama Ventures’ reported Adjusted EBITDA  of $370 million in 2Q24, a 1% rise QoQ and a decline of 11% YoY. The company’s sales volumes increased 1% YoY due to subdued economic activity, but also signaling the end of a prolonged period of destocking that began in late 2022. Operating rates for the group increased from 74% to 76% in 1H24, although still at lower-than-average levels, signifying the weak global economic conditions. On a proforma basis, considering asset optimization actions, operating rates increase to 81%.

The Indovinya segment posted a robust performance on improved margins and rebounding demand for its high value-add downstream products. The packaging business, newly renamed ‘Indovida’, also performed well due to its leading footprint in emerging markets.

Looking ahead, Indorama Ventures is encouraged by the gradual improvement in the operating environment as customer inventory levels normalize, which is expected to spur further growth in volumes across all segments in 2H24. The company also expects to benefit in 2H24 from its shale gas advantage in the U.S, reflected in ethylene crack margins, positively impacting its integrated MEG business. Continued higher import prices in Western markets will enhance the company’s competitiveness as a leading local operator.

While the polyester industry manages the downcycle, Indorama Ventures’ experienced management team is working hard to deleverage and optimize the business under the company’s IVL 2.0 strategy to emerge stronger and drive enhanced earnings quality in an era of higher interest rates and a substantially changed industry landscape. As flagged at its Capital Markets Day on 6 March this year and reaffirmed in its Mid year strategic update on 24 July, the company is making substantial progress with IVL 2.0. In 2Q24, it recorded an impairment and expense provision of $666 million ($543 million is non cash) under its asset optimization program to improve manufacturing efficiency and reduce fixed costs. The cost benefits will start from 3Q24 and amount to about $170 million in savings in 2025. The company expects that the remaining asset optimizations will not have material impairments.

Management is continuing its intense focus on managing costs and extracting efficiencies, including its Olympus 2.0 program. These efforts achieved $47 million in savings in 1H24 ($29 million in 2Q24). The company is continually optimizing its capital expenditure, with capex supporting investments in sustainability—such as recycling in India—and automation and digital technology, as well as ongoing projects.

A key part of Indorama Ventures’ transformation journey is the implementation of new digital and AI tools to drive operational excellence in key areas, including manufacturing, commercial, procurement, sales, supply chain, and finance excellence. A significant portion of operations now have the new SAP S/4HANA ERP platform as a digital core, while rollouts of other world-leading solutions are ongoing in a phased approach through to 2026.

Segment Performances
The Combined PET (CPET) with Intermediate Chemicals segment posted an Adjusted EBITDA of $234 million in 2Q24, a 6% decline QoQ and a 25% decrease YoY, due to a one-time upside impact from a campaign run of NDC campaign in 1Q24 and as reduced industry spreads weighed on the Integrated PET business. A cracker outage at Lake Charles in the U.S also resulted in a $17-18 million impact to EBITDA. The cracker is gradually up and running in 3Q24.

The Indovinya segment recorded a strong Adjusted EBITDA of $98 million, a 41% gain QoQ and 85% YoY on increased volumes as destocking eased, supported by demand for downstream chemical surfactants amid the U.S crops season.

The Fibers segment recorded Adjusted EBITDA of $39 million, a 2% rise QoQ and a 19% gain YoY amid improved sales strategies and a robust focus on cost management, even as volumes declined, particularly in the Lifestyle business.

Stratasys announced its plans to move its U.S.-based headquarters from Eden Prairie, Minn. to a new Minnetonka campus. With the move, Stratasys will consolidate most Minnesota-based offices into one larger, more dynamic corporate campus.

The new corporate campus, comprised of two leased buildings on the current United Health Care campus site, is expected to open its doors on January 6, 2025. It will feature the latest technology, amenities, and designed work areas to inspire innovation and creativity.

The company expects the move to increase collaboration and productivity. It is also an opportunity to take advantage of the current real estate environment.

Stratasys will maintain a presence in Eden Prairie with its Stratasys Direct Manufacturing facility. Stratasys intends to list the current Edenvale headquarters building and its Wallace Road buildings for sale as staff transition to the Minnetonka site.

Stratasys Inc. was founded in Eden Prairie in 1989 by former CEO and current board member, Scott Crump.

CARBIOS and Nouvelles Fibres Textiles, a French company specializing in the recovery of end-of-life textiles, announce the signing of a Memorandum of Understanding to establish a contract for the supply of polyester textiles to the world's first PET biorecycling plant currently under construction in Longlaville, France. The polyester textiles supplied will come from used or end-of-life textiles prepared in France by Nouvelles Fibres Textiles for recycling using CARBIOS' enzymatic depolymerization technology. This contract will enable 5,000 tons a year of these textiles to be redirected towards biorecycling from 2026 onwards, over an initial 5-year period, demonstrating the commitment of industrial players all along the value chain to achieving textile circularity for a more sustainable textile sector.

Nouvelles Fibres Textiles and its various partners opened a semi-industrial site with an annual capacity of 1,000 tons in November 2023, the first step towards building a 20,000-to-30,000-ton unit in 2026. This first site, a research center for textile recycling, combines the know-how of Andritz Laroche (a leader in textile recycling), Pellenc ST (French leader in intelligent sorting solutions), Synergie TLC (a French player in collection and first sorting for solidarity) and the Tissages de Charlieu group (a French player in weaving, garment manufacturing and textile recycling). This unit transforms used textiles into high-quality raw materials, supplying the various industries that use textile fibers (non-wovens, insulation, plastic, textiles, etc.) by automatically sorting them by composition, while eliminating hard points (buttons, zips, patches, etc.).

CARBIOS' biorecycling technology uses enzymes to break down polyester fibers into their basic components. These components are then used to produce high-quality recycled PET materials, such as fibers for the textile industry. This “fiber-to-fiber” solution will enable polyester to become a truly circular fiber on a large scale.

The summer edition of Texworld Apparel Sourcing Paris welcomed nearly 1,200 exhibitors from 26 countries. This season event was characterised by a number of new features and the dynamics remained satisfactory. Next event: February 10, 2025, in a partially renovated Paris-Le-Bourget exhibition centre for a session rich in initiatives.

The latest edition of Texworld Apparel Sourcing Paris, offered in its full version with the Avantex and Leatherworld sectors, ended on July 3 with attendance levels down on the July 2023 session. Over and above a possible "Olympic Games effect" and its consequences on transport and accommodation costs in the capital, the current economic situation is prompting the show's organizers to explore all alternatives to adapt the offer to market demand. However, these results do not seem to have had any impact on the flow of business between visitors and exhibitors, who reported a fairly positive overall climate.

The dynamic on the booths remained steady and the exchanges satisfactory, as shown by several manufacturers particularly well established on the European market. Indian shirt manufacturer Sheraton Apparel, for example, made around thirty solid contacts over 3 days, and reported several serious approaches to African distributors. The same goes for SMIT, a Turkish company specialising in Made in Turkey sourcing, which was able to see its main European customers and open up new contacts with Canadian and Brazilian buyers.

An expanded offering
At the Near Sourcing Hub, the phygital sourcing space connected by QR Code to the B2B digital platform of Messe Frankfurt France partner FourSource, inquiries to exhibiting companies remained much the same as in 2023. The visitor profile, on the other hand, focused on buyers from networks of small multi-specialist boutiques looking for an original mid-to-top-range offering. It was in response to this market demand for differentiation that the show organizers decided to extend Apparel Sourcing's range to include new categories in the fashion accessories sector, such as jewelry and bags.

High-profile initiatives
Other innovations were also on show this summer. The yarn pavilion - a first conceived in collaboration with Yarn Expo, originally a Shanghai show run by Messe Frankfurt - showcased the expertise of Chinese, Indian, Pakistani and Taiwanese companies, while at the same time highlighting upstream products and services. At Avantex, where some twenty suppliers of solutions for more sustainable fashion were grouped together, the new Designer Hub enabled designers and buyers to discover some original initiatives, such as that of stylist Jean-Luc François' association, supported by Messe Frankfurt's Texpertise network, which trains people who are far from employment, or the 3D design studio Scotomalab.

Materra wins 2024 Avantex Fashion Pitch award
The Avantex Fashion Pitch jury has awarded the 2024 prize to Materra. This British start-up, founded in 2019, designs solutions to support the cotton cultivation adapted to climate change. At the other end of the chain, it offers brands a service designed on a Cotton-As-A-Service model that encourages them to source from the producers it supports. Materra will benefit from a €2,800 stand at Avantex Paris 2025 donated by Messe Frankfurt France, plus €2,000 from Texpertise Network, the textile sector network of the Messe Frankfurt Group, and 1 year's incubation at Foundry donated by IFA Paris, official partner of the competition.

A trendy area at Leatherworld
New for 2024, the Leatherworld sector inaugurated its Leather Trend area, developed in collaboration with publisher Edizioni AF and the Arsutoria School design centre. Designed around the expertise of Italian companies specialising in the manufacture of leather shoes and bags, this inspirational space presented the autumn-winter 25-26 trends through 4 creative axis built around the expression of simplicity, nature, dynamism (sportswear collections) and finally romanticism. Leather Trend was also an opportunity to discover the new leather tanning technology developed by Ecotan, which avoids the use of metals (Chrome) and chemicals in the leather preparation stages thanks to the use of vegetable tannins.

The Circular Valley Convention is a new trade fair format organised by Messe Düsseldorf in cooperation with the non-profit Circular Valley Foundation and with scientific support from the renowned Fraunhofer Institute for Environmental, Safety, and Energy Technology called UMSICHT.

The convention looks at the circular economy from a holistic perspective: across industries and materials – and all phases of the circular economy, from smart circular design to the reuse and further utilisation of products.

As a central global platform for the circular economy, it brings together decision-makers and experts from business, academia, politics, and society in one place. Under the motto "Uniting Industries for a Circular Tomorrow", it promotes their networking in order to present and jointly develop circular solutions and processes and drive forward the transformation towards a circular economy.

Messe Düsseldorf is contributing its many years of expertise to the Circular Valley Convention stemming from a wide range of trade fairs such as K, interpack and drupa, which are closely related to the circular economy. The non-profit Circular Valley Foundation, the cooperation partner of the convention, has a comprehensive understanding of the circular economy and a large network. The scientific support provided by the Fraunhofer Institute for Environmental, Safety, and Energy Technology UMSICHT and the associated expertise round off the extensive professional support.

The Circular Valley Convention covers all phases of the circular economy: from the use of renewable raw materials to product design, manufacturing, logistics, and operations all the way through to collection, sorting, and recycling, featuring solutions for different material classes and value chains. The convention combines applied research and practice and is a content hub for top decision-makers and experts. With the guiding theme "Enabling Circular Economy", the focus is on three central topics that enable the transformation towards a circular economy:

• Enabling Value Chains: the implementation of efficient, sustainable, and cross-industry circular solution strategies to maximise the use of resources and make business models fit for the future.
• Enabling Technologies: the transfer of circular competencies such as redesign, refurbish, remanufacture & recycle. The goal is to optimise products and processes using technologies that comply with the principles of the circular economy.
• Enabling Materials: the promotion of the efficient use and recycling of various materials, aiming for the extension of product lifespans and the integration of cross-material circular strategies for the sustainable use of resources.

the Circular Valley Convention offers a three-part event format consisting of a conference, an expo, and a networking event on the evening of 12 March 2024. Over 100 high-calibre speakers are scheduled to attend the conference. More than 130 exhibitors and partners are expected to attend the expo, the marketplace for future-oriented circular solutions, which offers insights into new trends, innovations, and best practice examples.