From the Sector

Indorama Ventures Public Company Limited issued a THB 10 billion triple-tranche Sustainability-Linked Bond, showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The bond is part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability Linked Loan Principles.

The SLB is linked to IVL’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.

On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.

Under the terms, all tranches must purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets in the event of failure to meet the sustainability performance targets (SPT). The testing dates for tenors with a maturity of 5 and 7 years are 31 December 2025, and 31 December 2030 for the 10.5-year tenor. SPT performance will be independently verified upon the testing dates.Proceeds for the issuance will be used to finance IVL’s corporate working capital and refinance existing debt.

In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.

Marabu is one of the first ink manufacturers to achieve climate neutrality. All Marabu Business Units will, where possible, make a specific contribution to achieve the 17 United Nations Sustainable Development Goals (SDGs) with PROJECT GREEN and therefore participate in the Green Deal.

"We are safeguarding the future of the next generations and are proud that we have managed to be a climate neutral company from July 2021 with the Tamm and Bietigheim sites. All our products, whether printing inks or creative colours, are climate neutral, too," explains York Boeder, CEO Executive Committee. "Our so-called PROJECT GREEN combines all measures that are taking us on our journey to climate neutrality. Climate protection is a particular concern for us, to which we have made a binding commitment within the scope of an extensive sustainability strategy. In accordance with our Marabu Green Deal, we avoid and reduce emissions wherever possible, e. g. by using green electricity, energy-saving schemes, mobility concepts or environmentally friendly materials. We offset all unavoidable CO2 emissions by supporting internationally certified climate protection projects. We are continually implementing measures to improve our carbon footprint and update them annually to make their success measurable. We have therefore set ourselves the active goal of reducing our CO2 emissions by another 25 % by 2030."

For decades, Marabu has invested in the research and development of safe production processes, environmentally friendly products, and clean technologies with the aim of preserving the natural environment. Marabu has worked with Climate Partner to analyse all the CO2 emissions from the sites in Tamm and Bietigheim and determine its carbon footprint. Including all product-related factors such as raw materials and logistics, Marabu currently generates approx. 18,500 tons of unavoidable CO2 emissions. This value is the positive result of a number of climate-friendly measures pursued by Marabu, such as the early switch to green electricity in 2007.

Marabu's main activities to avoid and reduce CO2 emissions:

• Energy - Switching to green electricity from hydropower
• Mobility - Migration of the company's vehicles to electric and hybrid cars as well as in e-charging stations
• Production - Use of renewable energies and resource-efficient production processes
• Raw materials - Replacing critical substances with environmentally friendly alternatives for new and existing products
• Transporting - Climate-neutral freight carriers and lower-emission transport methods like shipping or road transport replace air freight wherever possible
• Product technology - Modern, low-emission products

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

• Kettelhack GmbH – a German leader in the dyeing and finishing of monochrome fabrics for high-quality and durable workwear and bed linen – has this year retired its existing Monforts sanforizing line after 35 years of daily service, replacing it with a new one.

The first line was installed in 1985 during a decisive time for the company.

Taking the helm in the early 1980s, Jan Kettelhack – the current CEO, owner and great grandson of Heinrich Kettelhack who founded the company back in 1874 – made a number of decisions that have secured its success over the following decades.

In 1982 Kettelhack had to vacate its existing plant in the city of Rheine due to urban development restrictions and despite a general sense of crisis in the European textile industry at that time, opted to relocate and build a new highly automated plant that was not reliant on mechanical and personnel-intensive processes. This was aligned with a greater focus on competitive international sales.

From 1986, the company’s proficiency as a specialist in solid-colour textiles led to workwear textiles becoming a bedrock of the business. Continuous investments in machinery and technical equipment have resulted in a fully integrated and rationalised single source site dedicated solely to what the company does best – the expert dyeing and finishing of textiles.

Crucial process steps

These stages in the textile value-added chain, Jan Kettelhack has observed, are crucial to the quality of a final product in workwear – whether it stands the test in everyday use, how comfortable it is, and how many washes it can withstand.

Central to this is the sanforizing process, which pre-shrinks a fabric by compressing it prior to washing. This limits any residual or further shrinkage in a made-up finished garment to less than 1%, to ensure perfect comfort and fit over an extended lifetime.

“We certainly can’t complain about the performance of the old Monfortex sanforizing line which gave us so many uninterrupted years of service, but certain spare parts for it were becoming increasingly hard to source, the control unit was becoming a little unstable and we couldn’t risk potential interruptions to our production schedule,” says Kettelhack plant manager Hendrik Pleimann. “In many ways, the new Monfortex sanforizer is much the same as the old one in terms of its mechanical reliability and robust construction, but of course today’s drives are much more efficient, and when it comes to the automation features and control units – and the data we can generate and analyse for increasing efficiency – that’s a whole new world.”

Qualitex 800

The two-metres-wide Monfortex line benefits 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.

The integrated Compactomat system allows a continuous indication and control of the shrinkage values and the temperatures of the shrinking cylinder and felt calender. Up to 10,000 separate process parameter records can be generated and stored by the data manager.

Full line management can be optimised via the batch-specific calculation of all process material consumption and water and electricity use, with any standstill times analysed and immediately corrected for the future.

Any further assistance required is available via Monforts Teleservice, with direct connection to technicians and virtual access to machine analysis.

Professional

Commissioning of the new Monfortex line at Kettelhack commenced in January and it was fully operational in a relatively short time.

“This was a very professional installation provided by the Monforts team with whom we have a very good relationship dating back many years, and everyone knew what was required from both sides,” says Mr Pleimann. “Our operators have found the new line very user friendly and we are very pleased with how everything proceeded so smoothly. An unexpected benefit is that the new line is also a lot quieter, of course, which is something our operatives are appreciating.”

Key features of the Monfortex line are the proven fabric preparation, weft straightening and spreading units, prior to the compressive shrinkage machine with a 750mm shrinking cylinder, and a felt calender equipped with 2,000mm diameter drying cylinder. The line also features an integrated automatic grinding unit.

Customer service

Kettelhack is processing primarily cotton and polyester woven fabrics, with lyocell becoming increasingly popular in workwear for its softness and comfort.

As part of its customer service, the company stocks more than a million metres of grey fabric and at least 1.2 million metres of finished and rolled standard fabric in its warehouse at any one time, with a further 750,000 metres permanently in production.

While a significant cost, this commitment ensures Kettelhack customers can be fully flexible and rely on it as a partner.

“As a family-run company with around a hundred employees, Kettelhack operates very differently to bigger businesses which have to constantly consider their immediate quarterly profits,” Mr Pleimann concludes. “The thinking at Kettelhack is in terms of the next twenty years and ensuring that the business will be just as successful for the next generation as it is today. We also have a very flat organisational structure in which everyone is involved and takes an active part, which makes it a very nice place to work.”

• 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.

• Construction of a new air purification and sulfur recovery plant
• Further improvement of the exhaust emission values at the Lenzing site
• Important step in achieving the CO2 targets of the Lenzing Group

Lenzing – The Lenzing Group is a global leader in the climate-friendly and sustainable production of wood-based textile fibers. Lenzing announced its climate targets in August of this year. By 2030, the company aims to reduce its specific CO2 emissions per ton of manufactured pulp and fibers by 50 percent. By the year 2050, the Lenzing Group will no longer generate any net CO2 emissions.

Lenzing‘s Management Board has now resolved to invest EUR 40 mn to expand the production of the raw material sulfuric acid at the Lenzing site. This comprises an important milestone on the path towards climate neutrality. In the future, a new air purification and sulfur recovery plant will not only optimize the company’s self-sufficiency for this raw material and enhance process reliability but improve environmental protection within the context of a clear forward-looking strategy.

Improved exhaust emission performance

The new plant represents an important contribution towards implementing the sustainability strategy of the Lenzing Group, and also helps to ensure an even higher level of environmental compatibility of all production operations at the Lenzing site. The application of state-of-the-art technologies will further improve exhaust emission values. Furthermore, the new facility will help further reduce the use of fossil fuels by generating steam which will, in turn, be converted into electricity. In this way, it will also support the energy self-sufficiency of the company’s operations in Lenzing.

Improved CO2 scorecard

As a result, the production plant in Lenzing will reduce its annual CO2 emissions by 15,000 tons. This is an important step towards further advancing the company’s ambitious plans in the coming years and also strengthen Lenzing’s leadership role as a driver of ecologically sustainable industry. “On the basis of these investments, Lenzing is taking the next step in achieving its climate targets. At the same time, it will also reach a significantly higher level of autonomy with respect to a vital raw material”, states Stefan Doboczky, Chief Executive Officer of Lenzing.

A. Monforts Textilmaschinen GmbH & Co. KG will demonstrate a range of new advances made possible by Industry 4.0 techniques at ITMA 2019 in Barcelona, Spain, from June 20-26.

At stand D101 in Hall 2, visitors will discover the possibilities of ‘digital twin’ capability – now being made available for all Monforts machine systems – and that by exploiting the latest advanced sensor technology, comprehensive technical machine data can now be virtually mapped in the cloud in real time. The data can be easily accessed using the new Monforts Smart Support and Smart Check apps for an instantaneous status overview. All specifications relating to machine performance and the production process can be mapped, to enable vastly simplified and targeted analysis for controlled planning and production. Insights harnessed from such analysis can be used to optimise the actual production process. At the same time, potential sources of error can be anticipated and eliminated, enabling improved machine availability while considerably minimising downtime.

Parts prediction
In addition, the digital twin system provides information on the individual wear parts of a system, such as, for example, converters or gears. “Operators and mill managers are informed by Smart Check sensors when maintenance or the replacement of key components will be required, well ahead of time,” explains Monforts Vice President Klaus A. Heinrichs. “Direct access to the integrated Monforts webshop allows users to instantly order such parts when they are needed, virtually preventing machine downtime.” On request, Monforts can also virtually monitor machine performance and pro-actively alert customers to the need for preventative action. In such cases, however, data is only ever called from the cloud by Monforts when customers have given their full consent, in the interests of data security. Data from Smart Check, for example, can even be used to analyse a system’s energy requirements, allowing machine operation to be optimised by tailoring production runs to the peaks and troughs of electricity costs.

A new important partnership marks the path of Itema towards a greener future for the whole denim production chain. Prosperity Textile, one of the main denim producers worldwide, has chosen for its new facility one of the most interesting and sustainable-oriented Itema technologies, iSAVER™ equipped on the Itema R95002denim. Prosperity Textiles is, in fact, one of the early adopters of this new technology chosen for the new plant that the world-famous indigo fabrics producer will open in Vietnam, and that will be exclusively equipped with the latest Itema weaving machine model, demonstrating once again its green, future-oriented approach.

Thanks to its partnership with Itema, Prosperity Textiles makes again a step forward in terms of sustainable innovation, as one of the first denim producers able to successfully turn - even the weaving production - green. A partnership that is planned to be showcased in some of the most important textiles exhibitions worldwide focusing on Asian and denim markets. A path that starts with KingpinsShow, Amsterdam (October 24-25) where the Chinese denim producer will put into the spotlight this brand-new solution aimed at further increasing the eco-driven approach of the company; an important appointment is also in the Itema calendar: the ITMA Asia + CITME 2018 exhibition, Shanghai (October 15-19) where the Italian company showcased the important green step-forward in denim weaving processes and the full range of its innovations.

iSAVER™: the ideal green tool for denim weaving
This new technology, developed by ItemaLab™, the Itema Advanced Innovation Department, isable to completely eliminate the left-hand weft waste, allowing to insert the weft yarns in the fabric without the need of additional yarns. iSAVER™ significantly reduces raw material waste, leading to tangible benefits in terms of machine’s efficiency, cost reduction and energy saving.

Just consider that the weaver will gain a minimum saving of € 2.000 per year per machine, and our planet will gain even more. In fact, for the first time in the weaving industry, a sustainable approach when choosing the weaving equipment is now possible. Thanks to iSAVER™, 1.000 Kg of cotton per machine per year – the 3% of the total raw materials - will be saved, thus avoiding the waste of 20 million liters of water, equivalent to 400.000 showers.

Numbers are clear: the introduction of iSAVER™ clearly sets a new benchmark in terms of sustainability within denim fabric production. Furthermore, the iSAVER™ is one of the key features of the Itema R95002denim, the rapier weaving machine born and designed to weave denim guaranteeing to weavers superior textile quality, outstanding user-friendliness and tangible energy and raw materials saving.

A joint eco-driven path
Itema, understanding very well the importance of saving resources and energy to drive the textile production in the direction of a more conscious manufacturing, focused its attention to develop breakthrough weaving solutions and in 2018 introduced to the market the iSAVER™, a revolutionary device dedicated specifically to denim fabrics able to eliminate the waste selvedge on the left-hand side of the fabric.

This is one of the reasons-why Prosperity Textiles has chosen to adopt this extraordinary technology for its new facility. Today Prosperity Textiles is one of the main denim producers worldwide, counting 1,300 employees and 20 offices worldwide. Moreover, a second state-of-theart denim mill will be inaugurated in Vietnam by the end of 2018.
What makes Prosperity able to stand out on a global scale, is not simply its products high quality but the ability to conciliate flawless denim fabric production with a sustainability-oriented mindset that permeates every stage of their textile supply chain.

Prosperity, indeed, adopted innovative green manufacturing concepts through all stages of the company’s operations, from product development, raw materials procurement and processing, to natural resources and energy utilization including waste management. Prosperity’s denim production is based on the employment of best quality yarns available on the market, while still targeting the most sustainable sources, from BCI to organic, recycled cotton, and from Tencel™ Lyocell to Sustans™, in 2017, more than 20 million yards fabric sales from Prosperity are with sustainable fibers inside.
The introduction of eco-friendly dyeing and finishing practices allows the company to create beautiful indigo shades and performance denims, with less water and energy consumption compared to the traditional systems. Last year, Prosperity produced 20% more fabrics than 2016, yet the water and electricity use and greenhouse gas emission was down by 11.5%, 7.9% and 5.4% respectively.

In this continuous process of improvement and contribution to a greener industry and planet, plays a central role the recent renewal of the historic partnership and strategic alliance with Itema – the leading manufacturer of cutting-edge weaving solutions – which represents the natural evolution of a constant process of research for partners able to support Prosperity Textiles’ growth as a sustainable company.
Up to now, all innovations and efforts done in this regard addressed the traditionally more polluting steps of the denim production. In fact, if the development of green technologies is nowadays spread in many fabric processing stages, such as finishing and dyeing, weaving was not yet capable to provide sustainable solutions to weavers.

Built on an island right off the Finnish capital Helsinki, the Nolla cabin represents an ecological alternative to cabin life.

This summer, living with minimal emissions will be put to the test. Neste is building a prototype of a cabin that has a minimal environmental impact in terms of both carbon dioxide emissions and concrete impact on nature. The Nolla (= zero) cabin, designed by Finnish designer Robin Falck, is located just outside Helsinki city center, on the Vallisaari island. The cabin has been built from sustainable materials and is designed for a simple lifestyle with minimal to no emissions, taking into account the surrounding nature in every respect.

Located on the idyllic island of Vallisaari in the Helsinki archipelago, the Nolla cabin encourages people to consider how modern solutions and innovations could enable sustainable cabin living. Vallisaari has been in a natural state for decades and is thus the perfect location for an urban cabin experience, located at a 20-minute boat ride away from the Helsinki market square. The ecological and mobile Nolla cabin will be in Vallisaari until the end of September, demonstrating a lifestyle that generates minimal to no emissions.

Placing the compact and mobile cabin on its private lot does not require a construction permit
and it has been designed to use building materials as effectively as possible. The cabin is the size of a small bedroom and can be assembled and transported without heavy machinery, leaving its environment nearly untouched. The Nolla cabin has been designed by Finnish designer Robin Falck, whose earlier design, Nido cabin, has been globally acknowledged.

The Nolla cabin introduces solutions, which enable minimizing cabin life emissions remarkably. The energy supply of the cabin is entirely renewable; electricity is generated by solar panels, whilst the Wallas stove, reserved for cooking and heating, runs entirely on Neste MY Renewable Diesel, made 100% from waste and residue. The Aava Lines raft operating between Helsinki city centre and Vallisaari will also run on Neste MY Renewable diesel that can reduce greenhouse gas emissions by up to 90%.

“With the Nolla cabin, we want to offer visitors the possibility to experience modern cabin life in the realm of nature, with minimal emissions. An ecological lifestyle does not only require giving up unsustainable commodities, but also discovering modern, sustainable solutions that can be used instead. This has been an essential part of the design process”, says Falck.

“Finns are known for spending time at their beloved summer houses. We wanted to explore sustainable solutions that could enable cabin life with minimal emissions. Shared and circular economy, as well as new technologies and innovations have made it possible to enjoy our cabins without harming or burdening the environment. Some of the solutions that have been used at the Nolla cabin are perfectly adaptable at any cabin”, says Sirpa Tuomi, Marketing Director at Neste.

The Nolla cabin is executed in collaboration with Fortum, Wallas and Stockmann and is part of the Journey to Zero project by Neste, which explores new ideas and aims to steer the world towards a cleaner future with fewer emissions.