From the Sector

• Lenzing and Södra – a long-standing partnership for systemic change
• International Textile Manufacturers Federation (ITMF) honored the two companies in the "International Cooperation" category
• EU co-funded recycling project for textiles on an industrial scale

The Lenzing Group, the world’s leading supplier of specialty fibers for the textile and nonwovens industries, and the Swedish pulp producer Södra have received the ITMF Award 2023 in the category “International Cooperation” for their joint achievements in textile recycling and circular economy. The award was presented at the ITMF Annual Conference in Keqiao, China, on November 06, 2023.

The ITMF Award 2023 is given by the International Textile Manufacturers Federation (ITMF) to recognize outstanding achievements and merits in the textile sector in two categories: ”Sustainability & Innovation“ and ”International Cooperation“. Since 2021, the two pioneers have been joining forces in textile recycling, making a decisive contribution to promoting the circular economy in the fashion industry. As part of the cooperation, the companies intend to share their knowledge with each other and jointly develop processes to enable the wider use of cellulose-based used textiles on a commercial scale.

The OnceMore® pulp from Södra, which was jointly developed further by Södra and Lenzing, is subsequently used, among other things, as a raw material for the production of Lenzing fibers with REFIBRA™ technology. The OnceMore® process makes it possible to process and recycle a blend of cotton and polyester.

ITMF paid particular tribute to the joint LIFE TREATS project (Textile Recycling in Europe AT Scale)¹,which was supported by an EU grant of EUR 10m under the LIFE 2022² program and aims to build a large-scale plant at Södra's Mörrum site in Sweden.

For more information on the ITMF Awards 2023, visit the ITMF website.

¹ Project 101113614 — LIFE22-ENV-SE-TREATS
² https://cinea.ec.europa.eu/programmes/life_en

• Revenue of EUR 1.87 bn and EBITDA of EUR 219.1 mn in the first three quarters of 2023
• Positive free cash flow of EUR 27.3 mn in the third quarter
• Implementation of performance program focusing on positive free cash flow, strengthened sales and margin growth and sustainable cost excellence
• Modernization and conversion of Indonesian site successfully completed – EU Ecolabel received

The anticipated recovery in markets relevant for the Lenzing Group has to date failed to materialize. The continued sharp increase in raw material and energy costs on the one hand and very subdued demand on the other had a negative impact on Lenzing’s business trends as well as on industry as a whole during the reporting period.

Revenue in the first three quarters of 2023 decreased by 5.3 percent year-on-year to EUR 1.87 bn. This reduction was primarily due to lower fiber revenues, while pulp revenues were up. The earnings trend was mainly influenced by the market environment. As a consequence, earnings before interest, tax, depreciation and amortization (EBITDA) in the reporting period decreased by 16.7 percent year-on-year to EUR 219.1 mn. The net result after tax amounted to minus EUR 96.7 mn (compared with EUR 74.9 mn in the first three quarters of 2022), while earnings per share amounted to minus EUR 4.90 (compared with EUR 2.16 in the first three quarters of 2022).

Outlook
According to the IMF, a full return of the global economy to pre-pandemic growth rates appears increasingly out of reach in the coming quarters. In addition to the consequences of the pandemic and the ongoing war in Ukraine, growth is also being influenced by restrictive monetary policy and extreme weather events. The consequences of the renewed military confrontation in the Middle East are not yet foreseeable. Overall, the IMF warns of greater risks to global financial stability, and expects the growth rate to decrease to 3 percent this year and to 2.9 percent next year.

The currency environment is expected to remain volatile in the regions of relevance to Lenzing.

The general market environment is continuing to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing.

In the trend-setting market for cotton, the current 2023/24 crop season is emerging as a further 1.7 mn tonnes of inventory build-up, following 1.8 mn tonnes of inventory build-up in the previous season.

Earnings visibility remains severely limited overall.

Lenzing is fully on track with the implementation of the reorganization and cost reduction program and on this basis is implementing a comprehensive performance program focused on positive free cash flow, strengthened sales and margin growth as well as sustainable cost excellence. The overarching goal is to position Lenzing even more strongly and to further increase its crisis resilience.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the trans-formation from a linear to a circular economy model.

The successful implementation of the key projects in Thailand and Brazil as well as the investment projects in China and Indonesia will further strengthen Lenzing’s positioning in this respect.

Taking the aforementioned factors into consideration, the Lenzing Group continues to expect that EBITDA for the 2023 financial year will lie in a range between EUR 270 mn and EUR 330 mn.

In China, the textile industry is forward-looking and resilient – with a healthy appetite for new technologies and a determination to keep its leading position. Sustainability is increasingly coming into focus, so there is a growing demand for recycling technologies, as well as automated solutions and digitalization. Cornelia Buchwalder, Secretary General of the Swiss Textile Machinery Association, is clear: “China is the main market for a large number of our association members.” On top of growing consumer demand and technological capabilities, the latest ambitious five-year plan will drive further development of the Chinese textile industry in world markets, and Swiss companies will work with all stakeholders to enable its success.

Market proximity
Swiss companies realized many years ago that geographical proximity is the key to success. Stäubli has started to set up offices in Chinese cities since 1998 and counts 12 locations today, to serve the whole country. In 2002, Itema established a centralized local branch which today has 160 employees in various functions. Loepfe has expanded its presence by creating an independent local business unit to overcome the 9,000 km distance by air, while Uster Technologies has had a Chinese subsidiary since 1982, with offices and service stations in different provinces. Luwa set up its offices and workshop in Shanghai in 1997. Rieter established a presence in mainland China in 2005, driven by a strong commitment to expanding the country’s know-how and expertise – and ten years later opened an advanced research center. All Swiss companies with serious business goals in China have made similar commitments to connect with customers and maintain strong relationships.

Understanding Chinese customers
Swiss companies also understand that Chinese customers require dedicated attention, and that speed is more essential than ever in delivering both machines and services.
Manufacturers in China are seeking cost-effective solutions to remain competitive, while consumers are looking for value in their purchases. Companies need to develop solutions that provide tangible economic benefits to their clients. Furthermore, energy savings have become paramount in China, due to the government's commitment to environmental sustainability and reduced carbon emissions. “Businesses are adopting more energy-efficient processes and technologies to meet stringent energy conservation and emission reduction targets,” says Peter Schnickmann, Managing Director at Luwa Air Engineering (Shanghai). He notes an investment trend for solutions helping Chinese companies cut operational costs and minimize their carbon footprint.

To enhance the reputation of both companies and products – and boost the image of the entire industry – the environmental impact needs to decrease. Priorities are saving water and waste, as well as reducing, replacing or completely eliminating the use of harmful substances. China has a strong demand for environmental-friendly solutions and sustainable technologies.

Customer-oriented in weaving
The huge number of Chinese fabric producers calls for an immense volume of weaving machinery to be supplied by international and local providers. Swiss machinery manufacturers hold an impressive share of this business.
Chinese weavers require advanced technology, with increasingly higher standards of efficiency. In weaving preparation, latest solutions match the speed, quality and reliability now wanted. Weaving machines too offer the eco-efficiency, performance, and ease of use needed, with innovations that extend the scope of sustainable weaving, and open-platform systems configurable to weavers’ specific operations. A huge increase in demand for technical textiles in recent years has been driven by applications such as carbon fiber, aramid and glass fiber.

Profitable in spinning
China’s competitive advantages come from its large-scale and integrated manufacturing capabilities, along with the use of advanced automation and digitization technologies. Spinners aim to capitalize on extended market opportunities, with more economical production. The latest air-jet spinning machines serve these goals, allowing exceptionally low production costs per kilogram of yarn, coupled with high flexibility and reliability. Sustainable yarns are in great demand.

The automation trend in spinning mills focuses on connecting production processes. Data is used to ensure the highest quality standards, most efficient raw material usage, reduction of waste, and energy savings. To make spinning mills more competitive, latest solutions combine cutting-edge hardware, data-enabled software and renowned textile expertise.

Freudenberg Performance Materials Apparel (Freudenberg) launches two advanced thermal insulation products made from low-level Bisphenol A (BPA) recycled PET fibers (rPET) into the global range of comfortemp®, Freudenberg’s thermal insulation brand.

The additions of DOWN FEEL WA 150LB and FIBERBALL WB 400LB to the comfortemp® global range serve as high-quality and ecologically-minded alternatives to down, enhancing the comfort and sustainability of your garments. DOWN FEEL WA 150LB is an extremely-lightweight, loose fiber thermal insulation with a super-light loft, while FIBERBALL WB 400LB uses clusters of extra-fine fibers to offer optimal breathability, maximum comfort, and minimal clumping after washing and drying.

GRS-certified and OEKO-TEX® STANDARD 100 Class I certifications
Both products utilize 100% GRS-certified rPET fibers, customizable to any desired fill levels. Additionally, these new products not only comply with but significantly surpass the stringent OEKO-TEX® STANDARD 100 Class I certifications. While OEKO-TEX® categorizes low-level BPA as less than 100 parts per million (ppm), these new products contain less than 1 ppm BPA, a testament to Freudenberg’s unyielding standards.

DOWN FEEL WA 150LB and FIBERBALL WB 400LB are available globally and more low-level BPA thermal insulation options are available in Asia.

The appetite for responsible sourcing shows no sign of slowing with Europe's fastest-growing platform, Source Fashion expanding again for its next edition with a 50% increase in exhibitors to over 320 from around the world.

The gateway to the UK fashion industry, Source Fashion takes place on 18th - 20th February at Kensington Olympia London putting international manufacturers and suppliers at the fingertips of UK brands.

Source Fashion offers a unique experience for decision-makers in buying, sourcing and procurement, with the reassurance of knowing that every exhibitor has been audited to ensure sustainability and transparency remains at the heart of their business model. The next show unites manufacturers from the UK, India, Portugal, Turkey Madagascar, China, Sri Lanka, Nepal, Peru, Philippines, Ethiopia and many more. The show will also see the debut of manufacturers from Mongolia, Lithuania, and Tunisia.

Suzanne Ellingham, Director of Sourcing of Source Fashion says; "Visitors will love the quality, diversity and variety of producers, makers and manufacturers from around the world with the best of the best in terms of high-quality knitted apparel, luxury wool knits, leather, denim, and more across our sectors including Fabrics, Accessories, Sportswear, Garment Manufacturers, Packaging, Yarns, Trims and Fixtures, plus Design & Technology."

Connecting global manufacturers and suppliers to buyers who want the security in knowing every conversation is one that could lead to a new range creation, Source Fashion is the gateway to retail for manufacturers and suppliers from across the world. From raw materials, fabrics, trims, and packaging, all the way through to contract manufacturers offering in house design services, the show brings the inspiration and tools together in one exciting destination to bring new ranges to life.

The July 2023 show welcomed some of retail's biggest names. Buyers, sourcing managers, product developers, technologists, and designers from brands and retailers including John Lewis, Mountain Warehouse, Fila, Selfridges, H&M, Lipsy, Lyle & Scott, Joules, FILA, Perry Ellis, JoJo Mamman Bebe, Monsoon, Fatface, Lulu Guinness, Next, Sainsburys, Vivienne Westwood, Stitch Fix, ASOS, Bella Freud, Burberry, Fat Face, Hackett, Harrods, NBrown, Monsoon and many more came to explore and source from Source Fashion's diverse mix of audited exhibitors.

With a content stage dedicated to presenting and discussing the latest trends, innovations, and topics in responsible and sustainable manufacturing from internationally renowned industry professionals, as well the inspirational Source Catwalk shows, Source Fashion is the must-attend event for the fashion community.

The winners of the prestigious Innovation Award for Fibre-Reinforced Plastics of the AVK, the German Federation of Reinforced Plastics, were presented in Salzburg this year. This award always goes to businesses, institutions and their partners for outstanding innovations in composites the three categories Products & Applications, Processes & Methods and Research & Science. Projects are submitted in all three categories and are evaluated by a jury of experts in engineering and science as well as trade journalists, who look at each project in terms of their levels of innovation, implementation and sustainability.

Products & Applications category
First place: “Insulating Coupling Shaft for Rail Vehicles” – Leichtbauzentrum Sachsen GmbH, partner: KWD Kupplungswerk Dresden GmbH

Second place: “Electric Car Battery Housing Components Based on Innovative Continuous Fibre-Reinforced Phenolic Resin Composites” – SGL Carbon

Third place: “High Performance Recycled Carbon Fibre Materials (HiPeR)” – Composites Technology Center GmbH (CTC GmbH), partners: Faserinstitut Bremen e. V, Sächsisches Textilforschungsinstitut e.V., C.A.R. FiberTec GmbH; partners Japan: Faserinstitut Bremen e.V., Sächsisches Textilforschungsinstitut e.V., C.A.R. FiberTec GmbH; Partner Japan: CFRI Carbon Fiber Recycle Industry Co., Ltd., IHI Logistics and Machinery Corporation, ICC Kanazawa Institute of Technology

Innovative Processes & Methods category
First place: “Chopped Fibre Direct Processing (CFP)” – KraussMaffei Technologies GmbH, partner: Wirthwein SE

Second place: “CIRC - Complete Inhouse Recycling of Thermoplastic Compounds” – Fraunhofer Institute for Production Engineering and Automation (IPA), partners: Schindler Handhabetechnik GmbH, Vision & Control GmbH

Third place: “CarboScreen – Sensor-Based Monitoring of Carbon-Fibre Production” – CarboScreen GmbH, partner: Institute of Textile Technology at RWTH Aachen University

Research & Science category
First place: “Development of a Stereocomplex PLA Blend on a Pilot Plant Scale” – Faserinstitut Bremen e. V.

Second place: “Fibre-Reinforced Salt as a Robust Lost Core Material” – Technical University of Munich, Chair of Carbon Composites, partners: Apppex GmbH, Haas Metallguss GmbH

Third place: “VliesSMC – Recycled Carbon Fibres with a Second Life in the SMC Process” – Sächsisches Textilforschungsinstitut e.V. (STFI), partner: Fraunhofer Institute for Chemical Technology (ICT)

Entries for the next Innovation Award 2024 can be submitted from January 2024 onwards.

Archroma and Shima Seiki have expanded their partnership to bring the industry’s largest library of colors for cotton and polyester to the SDS®-ONE APEX design, planning and virtual sampling system and APEXFiz® (hereafter SDS®-ONE APEX series) subscription software.

Now offering a total of 5,760 color references, SDS-ONE APEX series has added all 1,440 colors for polyester from The Color Atlas by Archroma® to its color library of 4,320 Color Atlas colors for cotton poplin. The new polyester collection ranges from neutral earth tones to vibrant jewel tones and on-trend fluorescent colors, with shades suitable for sportswear, fashion, home furnishings, automotive textiles and more.

The extended color library in SDS®-ONE APEX series will help designers and manufacturers to visualize and evaluate their design choices on realistic fabric simulations and then put them into production with dyes and finishes that meet their desired sustainability profile. The Shima Seiki system also offers a smooth transition to machine programming for quick and accurate production, reduced waste and accelerated time to market.

Each of the 5,760 Color Atlas color references in the SDS®-ONE APEX series design software is available as a physical color standard that includes precise dyeing recipes and compliance data, as well as access to expert technical support from Archroma around the world.

“Polyester remains the most popular choice across many textile segments where high performance is a must. Users of Shima Seiki’s advanced SDS®-ONE APEX series platform will now be able to select from the industry’s largest library of colors for both cotton and polyester and, more importantly, trust that their choice can be reliably executed,” Chris Hipps, Head of Strategic Business Development, Archroma Color Management, said.

“Our colors are formulated with dyes that comply with international eco-standards and work with Archroma’s groundbreaking coloration systems, like FAST SPORT,” he continued.

The innovative company RUDOLF has been honoured for its outstanding achievements in the field of sustainability and environmental protection and has won the coveted Responsible Care Federal Competition 2023 in the category SME.

The award was presented as part of a competition organised by the German Chemical Industry Association (VCI). Responsible Care is a voluntary initiative of the chemical industry. Its aim is continuous improvement in the areas of environmental protection, health and safety. Chemical companies and associations in more than 50 countries support the initiative. The award-winning project of the innovative company RUDOLF impressed the jury with its pioneering technology, which reduces CO2 emissions by up to 99.9 % compared to conventional cooling systems. „The project uses near-surface geothermal energy for industrial cooling - according to the motto „Efficiency First“ the most efficient way has been chosen!“ - Jury statement
 
TerraCool‘s winning system uses near-surface geothermal energy as the most natural form of cooling. It utilises the constant temperature of around 10°C at a depth of around 10 metres below ground. A specially developed heat exchanger system takes advantage of this natural cooling effect. In the future, it will be used to cool chemical production processes at RUDOLF. The main advantage of this technology is that it is CO₂ neutral. The technology is highly efficient and consumes only 0.1 % of the electricity used by conventional cooling systems.  By using natural resources, the system reduces CO₂ emissions by up to 99.9 % compared to conventional cooling systems, resulting in a very presentable carbon footprint. Another impressive aspect is its high energy efficiency. With just 1 kW of electrical energy, the system generates up to 600 kW of cooling capacity, thanks to the use of a highly energyefficient circulating pump system. Energy is, and will continue to be, a valuable „raw material“ for our industry and one that we need to manage carefully. The system is self-contained and has no contact with groundwater. No environmentally harmful refrigerants or antifreeze are required. With this technology, RUDOLF has made a pioneering contribution to the climate-neutral transformation of the economy, proving that innovative solutions can go hand in hand with environmental protection and sustainability. The Responsible Care award recognises the company‘s commitment to a greener future.

The Textile & Fashion Forum Helsinki 2023, organized by Finnish Textile & Fashion and EURATEX, highlights the discourse on sustainable practices within the textile and fashion industry. This two-day event, scheduled for 26-27 October at the Little Finlandia event center in Helsinki, will include a day of curated company visits.

Finland’s leading textile and fashion forum will showcase the industry's pioneering companies and their pursuit of a sustainable and resilient future. With insightful discussions, inspiring speakers, and thrilling business cases, the event drives transformation and sets new benchmarks for the textile and fashion sector.

The Textile & Fashion Forum Helsinki 2023 will focus on critical industry themes. The transformation of the textile and fashion industry relies on three key pillars: the creation of different circular business models matching growth with sustainability, a green and digital transition where information technology is necessary to deliver sustainability, and scaling the business, as how start-ups can make a leap and big companies can evolve their growth strategies. These three themes will be discussed in depth during the event.

The speaker lineup, drawn from Finland, Europe and beyond, demonstrates the expertise connecting on this platform. Noteworthy figures include Tiina Alahuhta-Kasko, President & CEO of Marimekko; Kai Mykkänen, Minister of Climate and the Environment of Finland; Marcus Hartmann, Head of Public Affairs & Sustainability at H&M; Liljana K. Forssten, Range Strategist at IKEA; and Virginijus Sinkevičius, European Commissioner (on video).

Digital fashion outlet Otrium announces the launch of a dedicated garment refurbishment and repair programme for damaged returns following a successful pilot scheme. The initiative is being run in partnership with Bleckmann, experts in supply chain management for fashion and lifestyle brands. Working with Bleckmann’s team of circular fashion experts from The Renewal Workshop, Otrium is taking the next step in its strategic journey to help reduce the number of that might ultimately end up in landfills or destroyed.
 
Most of the returns that Otrium currently receives can be easily restored and put back on sale. However, in rare cases, returned items are damaged. “Preventing waste is an important part of Otrium’s DNA, and thanks to our partnership with Bleckmann and their Renewal Workshop team, we can now repair the majority of damaged returns and put them back into circulation,” said Kevin Carolan, Director of Logistics at Otrium. “We are happy that we can use our position in the fashion supply chain to create lasting change and accelerate towards our mission of reducing the volume of garments that go to landfill.”

Since 2020, Otrium is exploring refurbishment and repairs with their third-party logistics provider Bleckmann. In April 2023, both partners started a three-month pilot at Bleckmann’s facility in Almelo, the Netherlands, to expand the programme with a broader range of repairs and optimised processes through data use. During the pilot, the Renewal Workshop team at Bleckmann refurbished more than 1,000 returned garments, shoes and accessories for Otrium each month.

“With hundreds of high-end labels on the platform, we needed an efficient solution tailored to the needs of a wide range of products – from shoes and coats to bags,” explained Marlot Kiveron, Head of Sustainability at Otrium. “The Renewal Workshop team worked closely with us to develop a streamlined and scalable process that could grow in line with our ambitions, delivering like-new repairs at the speed of e-commerce. Their combination of purpose, professionalism, agility and expertise makes them the ideal partner for this kind of project.”
 
Bleckmann’s integrated data capabilities were also crucial to the success of the partnership. “Data collection and analysis can be vital in demonstrating the commercial viability of sustainability initiatives,” said Tamara Zwart, Director of Renewal at Bleckmann. “Using our advanced stock tracking systems, we determined that 70% of the renewed Otrium stock had been sold within seven weeks. We’re all delighted with the results!”
Furthermore, carbon-tracking software Vaayu calculated that on average, a refurbished return sold on Otrium avoids 2.760kg of carbon emissions and 69g of waste proofing that this programme can have a positive impact on both: the planet and the business.

Having established the business case, the team decided to expand the initiative beyond the pilot phase. “This project is a milestone in our sustainability journey,” concluded Marlot. “It’s a key part of our ongoing commitment to finding more ways to reduce our environmental impact while helping to ensure that more clothes get worn. By the end of 2023, we aim to repair at least 25,000 damaged garments. Together with Bleckmann and their renewal experts, we’re well on our way to proving that this circular business model can be a valuable part of our future growth.”