From the Sector

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global Fashion Summit: Copenhagen Edition 2024 will take place on 22-23 May in the Copenhagen Concert Hall. Presented by Global Fashion Agenda (GFA), a non-profit organisation that is accelerating the transition to a net positive fashion industry, the 2024 edition with mark the Summit’s 15th anniversary and will bring together  leaders to drive urgent social and environmental progress.
 
Her Majesty The Queen of Denmark will attend the Summit on 22 May and provide Opening Remarks. The Queen first attended the inaugural Summit in 2009 and has since spoken at every edition of the Summit, demonstrating her dedication to a more sustainable future.
 
Under the central theme ‘Unlocking the Next Level’, over 100 other esteemed speakers will take to the Summit’s historic stages to share action-based insights, including executives from: Kering, Patagonia, Maersk, Brioni, Conservation International, The New York Times, Ralph Lauren Corporation, H&M Group, Ganni, WWF, Re&Up, Fair Labor Association, and more.
 
With a 15-year foundation as a leading forum for sustainability in fashion, the event will attract over 1000 stakeholders from the fashion sector, adjacent industries, policymakers, solution providers, and more. The Summit’s programme will be structured around unlocking solutions to fashion’s biggest sustainability barriers, no matter where an organisation is on its sustainability journey. Sessions include: ‘Fragmented Futures: Fashion’s Policy Agenda’, ‘Luxury, Leather, and Land’, ‘Towards a Binding Agreement on Wages, ‘Pathways to Indigenous Partnership’, and ‘Ending Oversupply’.
 
Building on the impact of previous Summits, the 2024 edition will also host more action-oriented roundtable meetings. The closed-door sessions bring together groups of stakeholders to discuss relevant barriers, share learnings, and build collaborations to support the implementation of solutions. Roundtables will address topics such as: ‘Scaling Circular Textile Systems’, ‘Pay Equity Interventions in European Value Chains’, and ‘Impactful Influence’.
 
The Summit will also present the Innovation Forum, a curated exhibition of leading sustainable solutions. Summit attendees can meet with exhibitors covering the entire value chain – from innovative materials to end-of-use solutions.

By establishing touchpoint textile, drupa has created a special forum to showcase pioneering applications in digital textile printing. The highlight will be the Digital Textile Micro Factory – a fully connected, integrated process chain starting with the customer enquiry and design through to large-format digital textile printing.

touchpoint textile represents drupa’s growing expansion into new markets comprising such segments as packaging production, large-format or industrial and functional printing next to packaging production. All of these segments are undergoing the same transformation processes and offer enormous growth potential. The special forum revolves around the opportunities and challenges of digital textile printing, brings together renowned exhibitors, industry partners and brand owners and provides scope for cross-industry cooperation, new projects as well as product and manufacturing ideas. The operational content partners of touchpoint textile include the German Institutes for Textile and Fibre Research Denkendorf (DITF), as Europe’s largest textile research centre, as well as ESMA, the European Specialist Printing Manufacturers Association.

Digital Textile Micro Factory: on-demand and virtual products – on the path towards sustainable production
In cooperation with 12 partners from industry and research the DITF will demonstrate a Digital Textile Micro Factory live at drupa and, hence, a fully connected, integrated process chain from design to finished product. This will present new possibilities for digitalisation and direct customer involvement, for instance in the form of 3D apparel simulations complete with links to design networks for creative input. Digital workflows and virtual products are integrated directly in the manufacturing process. As a special highlight for all trade visitors the technology partners of this Micro Factory will demonstrate an automated on-demand production, textile printing, cutting and sorting – without any manual interaction. Such decentralised and digitally connected design and production chains will enable the textile industry to respond to customers’ requests and trends in a more targeted manner in future. This means, touchpoint textile 2024 technologically points the way to a future without shelf-warmers. In addition, the carbon footprint for the complete process from virtual development to finished product will be modelled and presented at the trade fair.  

2024 will see the design competition “drupa – textile design talents” being held for the first time. This was conceived of by the DITF and will be implemented by the partner Mitwill. This provides up-coming textile designers and newcomers with a unique opportunity to introduce their ideas and visions to a professional audience.

Broad industry support
A project as comprehensive as the Micro Factory requires many strong partners. The companies “on board” here include: Assyst/Germany (3D simulation for digital apparel twins), Mitwill Textiles Europe/France (creative design network), D.G.I. Digital Graphics Incorporation/South Korea, Multi-Plot Europe/Germany (large-format textile printing), LEONHARD KURZ Stiftung/Germany, Zünd/Switzerland (digital cutting), robotfactory/Denmark, Asco/The Netherlands (presenting an innovative buffer solution between digital printing and cutting, automated sorting of cut parts from the cutter by robotfactory) as well as Brother/Japan (for small-format textile printing and bonding technology). Vaude and berger textiles will be sponsoring the touchpoint. Another key partner is the Albstadt-Sigmaringen University that is supporting the project as a conceptual sponsor and which has set itself the clear mission to incorporate these new topics into its curriculum. This means the staff of the future will be geared up to the new challenges ahead.

Another partner of touchpoint textile is the European Specialist Printing Manufacturers Association (ESMA), which is responsible for the lecture programme. ESMA represents industrial, functional and specialist printing and acts as an organiser of educational events in the field of textile printing. At drupa speakers from research, development, and industry will address issues related to printing and finishing techniques, workflows, market developments and sustainability, to name but a few. The focus will also be on trends and applications that unlock ever new potential through the interplay of digital printing and textile printing substrates. The lectures are divided into the categories Research, Finishing, Print Systems & Hardware, Substrates, Inks & Chemistry and Software & Electronics. Assyst, for example, will deliver talks on the virtual development of apparel as well as the research project ECOShoring, which is funded by the “Deutsche Bundesstiftung Umwelt” – DBU (German Federal Environmental Foundation) and focuses on personalised and on-demand sustainable manufacturing. Other speakers represent Adobe, Balta Group, Barbieri Electronic, Brother, Centexbel, CST, DITF, Fujifilm Speciality Ink Systems, HS Albsig, Kornit Digital, Meteor Inkjet, Mimaki, Mitwill, Multiplot, Print-Rite, RWTH Aachen, Seiko Instruments, Tiger Coatings, Xaar, Zünd and the list is updated on regular basis.

drupa will be held at the Düsseldorf Exhibition Centre from 28 May to 7 June 2024.

The demand for water in Germany is increasing and used water is not being utilized sufficiently. Graywater in particular, i.e. wastewater from showers, bathtubs and washbasins, offers great potential for further use. It can be brought to service water quality on site and reused for flushing toilets or watering gardens, for example. Thanks to flexible 3D textiles, it can even be used in almost any building to save space.

Around 50 to 80 percent of all domestic wastewater is graywater. Until now, large containers and tanks have been needed to reprocess it and return it to the cycle, taking up a lot of space in the building. The German Institutes of Textile and Fiber Research Denkendorf (DITF) and their project partner ARIS have developed a biological, textile-based system.

It is based on a 3D spacer fabric made of highly durable polypropylene. Its advantage is that it can be installed flat and is therefore extremely space-saving. Thanks to its special system geometry, it can be installed in places that would otherwise remain unused - for example in a new building under the floor of an underground garage, on a flat roof or in the garden. It can be modularly adapted to the water requirements and structural conditions in the respective buildings. "Even vertical solutions on facades are conceivable," explains DITF scientist Jamal Sarsour. This means that the graywater treatment system could be used in densely built-up cities in particular.

The system developed by the project partners requires little maintenance and is therefore particularly cost-effective. Compared to previous solutions, it is characterized by a long lifespan. It therefore contributes to sustainable water use and makes a valuable contribution to the circular economy.

ARIS plans to launch the new textile-based graywater treatment system on the market in 2024.

The project will be presented on June 13, 2024 at the SME Innovation Day of the Federal Ministry for Economic Affairs and Climate Protection in Berlin.

The research project with the number 16KN080829 of AiF Projekt GmbH, Berlin, was funded by the Federal Ministry of Economics and Climate Protection as part of the Central Innovation Program for SMEs (ZIM) on the basis of a resolution of the German Bundestag.

adidas introduces its 15-piece SS24 Paris Collection ahead of the 2024 clay season. Built to help players adapt to clay court conditions, the collection includes a core 8-piece range of apparel and footwear to help raise awareness of adidas’ annual Move For The Planet activation.

Designed to be played in seasonably warm Parisian temperatures, the collection features HEAT.RDY technology – breathable and lightweight fabrics that maximize airflow, to help keep players feel comfortable on court. Meanwhile increased mobility is unlocked thanks to adidas’ FreeLift Construction – a paneled fabric structure under the armpits – that enables greater freedom of arm movement during play while preventing the hems from riding up.

The pieces have been intentionally paired back, using zero prints to allow other bolder design features to make maximum impact, through striking color blocking, engineered paneling and textured fabrics. White and black panels on the garments emulate classic tennis court lines, highlighted by black bonding seams, meanwhile a stimulating Orange ‘Spark’ is used throughout to foster a sense of joyful energy for players during high-pressure games.

The collection will be worn by athletes including Caroline Wozniacki , Elina Svitolina, Xinyu Wang, Dana Mathewson, Jessica Pegula, Maria Sakkari, Stefanos Tsitsipas , Felix Auger Aliassime, Jason Wu and Martin de la Puente.

At the Techtextil trade fair in Frankfurt, the Chairman of the Walter Reiners Foundation of the VDMA, Peter D. Dornier, presented awards to six successful young engineers. Promotion and sustainability prizes were awarded in the categories bachelor/project theses and diploma/master theses. Academic theses in which, for example, solutions for resource-saving products and technologies are developed are eligible for the sustainability prizes.

The Walter Reiners Foundation awarded Anna Markic a sustainability prize worth 3,000 euros in the Bachelor's category. The topic of her thesis, written at Reutlingen University, was the recycling of carbon fibres.

Mark Zenzinger, Albstadt-Sigmaringen University, received a 3,000 euro promotion award in the Bachelor's category. His topic was the automation of the process chain for the production of welded textile hard goods.
 
Lena Fink from the TU Dresden received another promotion award worth 3,000 euros. Her construction engineering project work focused on a device to simplify the maintenance of braiding machines.

Fabio Bussmann from RWTH Aachen was awarded a promotion prize in the Master's category, worth 3,500 euros. In his thesis, he analysed the life cycle assessments of alternative semi-finished products for geotextiles.

Katharina Maria Ernst, TU Dresden, was honoured with a sustainability prize of 3,500 euros in the Master's category. Her work focused on the development of a suitable process for the treatment of chitosan fibres as an alternative starting product in the production of carbon fibres.

Lennart Hellwig, RWTH Aachen University, was awarded a 3,500 euro prize in the Master's category. He focused on the topic of machine learning using the example of a nonwovens plant.

Archroma is bringing a comprehensive suite of denim solutions to the Bangladesh Denim Expo 2024 at the International Convention Center (ICCB) in Dhaka on May 6 to 7, 2024.

The demand for denim wear is on the rise, accompanied by consumers' heightened expectations for sustainability. Brands looking to meet this demand must not only deliver functional and stylish denim but also minimize environmental impact.

Archroma is presenting a range of planet conscious solutions at the expo, including DENISOL® PURE INDIGO 30, DIRESUL® EVOLUTION BLACK, EARTHCOLORS®, as well as their latest SUPER SYSTEMS+ for Denim and the recently launched DENIM HALO concepts.

Polartec, a Milliken & Company brand, underscores its dedication to building a more sustainable future as it pursues the 2025 People, Product and Planet Goals, including certified science-based net-zero targets.

The Milliken & Company 2023 Sustainability Report discloses performance against the diversified global manufacturer’s 2025 Sustainability Goals and Net-Zero Targets and details the company’s key impacts across its people, product, planet, and net-zero measures. It also includes updates on each of the key impact areas Milliken and Polartec adhere to, including:

• People: The company focused on protecting associates by reducing lost-time incidents, strengthened its commitment to an inclusive supply chain by hosting its inaugural Supplier Diversity Event, and surpassed its goal of serving 100,000 community volunteer hours one year ahead of schedule.
• Product: Milliken used sustainability assessments to analyze all new products and made measurable gains in its multi-year commitment to address end-of-life challenges for plastics.
• Planet: Investments in cogeneration, energy efficiency, and renewable energy procurement are keeping the company ahead of schedule relative to its 2025 Greenhouse Gas (GHG) and Renewable Energy Goal; however, paths to achieve its 2025 Landfill and Water Reduction Goals have proven more challenging.
• Net-Zero: Five years of progress on GHG and renewable goals have helped Milliken progress toward its 2030 scope 1 and 2 net-zero targets, and the company has improved its scope 3 accounting to allow for a more detailed and accurate perspective on value chain emissions.

A joint venture between Salvation Army Trading Company (SATCoL) and Project Plan B, known as Project Re:claim, has begun operations in Kettering, Northamptonshire - the first commercial-scale, post-consumer polyester recycling plant of its kind that provides a solution to the issue of polyester textile waste.

The plant will recycle post-consumer garments and other textiles, and supply the raw material back into the fashion and textiles industries.

The machine was installed in January 2024 and is now fully operational, with polyester pellets being produced from polyester waste. The plant is on track to recycle 2,500 tonnes of unwanted polyester this year, with a further 5,000 tonnes in year 2, and creates polyester pellets which can be spun into yarn for use in textiles along with other industrial applications. The pellets are expected to be integrated into the manufacturing processes of new products later this year.