From the Sector

• Ramping Up Production of American-Made Polyester Tipped Swabs

The Biden Administration has awarded a contract for $6.5 million to U.S. Cotton LLC, the largest manufacturer of cotton swabs in the United States, to increase domestic production capability for polyester tipped swabs for home testing kits and mass testing applications to fight the COVID-19 pandemic.  Since the beginning of the pandemic, U.S. Cotton has retooled operations to produce over 400 million COVID testing kit swabs.

The Department of Defense (DOD), in coordination with the Department of Health and Human Services (HHS), announced the award today as part of the administration’s broader effort to increase domestic production capability for essential medical supplies.

U.S. Cotton, based in Cleveland, Ohio, said the company will increase its production capacity from 92 million polyester swab tips per month to approximately 371 million polyester swab tips per month by May 2022 to support domestic COVID-19 testing. The DOD contract award was funded through the American Rescue Plan Act (ARPA) to support the domestic industry base expansion for critical medical resources.

John Nims, President of U.S. Cotton said, “We are proud to be involved in a national effort to help deploy these testing kit swabs for the American people. These swabs are designed to make it easier for people at home to self-administer coronavirus tests and will also be used for mass testing applications, which is critically important. We greatly appreciate the collaboration with DOD and HHS to ramp up essential capacity of polyester-based synthetic swabs that will help in the fight against the pandemic.

“We continue to step up to meet our nation’s critical need for American-made coronavirus testing kit swabs on a massive scale. It is an honor to work with our government to help fight this pandemic and use our innovative technologies based here in the United States to fill a national and global demand for testing kits. I especially want to thank Senator Brown and Senator Portman for all their incredible support to help us retool and expand our operations in Cleveland. We can’t thank them enough for their tireless work and also want to recognize their hard working staff. As the Delta variant surges across the country, this timely investment will help in the fight against COVID by adding this much-needed, long-term surge capacity.”

Kim Glas, President and CEO of NCTO, said, “We want to sincerely thank President Biden, the Department of Defense, and the Department of Health and Human Services for leading this critical industrial expansion effort. We appreciate the administration’s commitment to expand the U.S. industrial base for these essential products.  We have a once-in-a-generation opportunity to onshore these critical supply chains long-term and we look forward to working with the administration and Congress to advance long-term solutions.”

Swiss dairy company Emmi is partnering with Borealis and Greiner Packaging to produce iced coffed drinking cups using chemically recycled polypropylene.

The cups are produced by Greiner Packaging and the chemically recycled material comes from Borealis, one of the world’s leading providers of advanced and circular polyolefin solutions based in Vienna, Austria.

Emmi, Switzerland’s largest milk processor is committed to climate protection and the circular economy. The dairy company has the stated goal to make all of its packaging 100% recyclable and is committed to various measures to promote circularity such as packaging that contains at least 30% recyclate by 2027.

From September 2021 Emmi will use at least 100 tonnes of plastic based on the recycled material each year. Chemical recycling renews plastic back to plastic creating recycled materials with a level of purity equivalent to fossil-fuel based PP and hence, fit for protective, food-safe and other demanding applications. In this way, Emmi is utilizing difficult to recycle feedstock preventing plastic waste that would be likely landfilled or incinerated. In the future, depending on the availability of suitable material, the amount of recycled plastic in packaging is to be further increased.

The new technology to recover the polypropylene is currently still in its infancy, where Greiner Packaging and Borealis are leading the way. Only limited quantities of chemically recycled polypropylene are currently available, and Emmi is one of only a few food manufacturers to have secured a share of the chemically recycled polypropylene plastic through its early commitment and long-standing collaboration with the development companies.

The chemically recycled material used for the cups consists entirely and solely of ISCC (International Sustainability & Carbon Certification) material, on a mass balance basis. Mass balance is a methodology that makes it possible to track the amount and sustainability characteristics of circular and/or bio-based content in the value chain and through each step of the process. This provides transparency ultimately also to the consumers, enabling them to know that the product they are buying is based on this renewable material.

After a long break, the international nonwovens industry will meet again in Geneva, Switzerland, from October 19 to 22, 2021 on the occasion of INDEX. DiloGroup offers tailormade production systems from one supplier and will inform about its portfolio and the latest equipment developments from fibre opening to the finished felt.

A new, simplified elliptical needle beam drive makes Hyperpunch technology also attractive for standard application. Hyperpunch HαV allows a more uniform stitch distribution in the preneedling process especially in combination with the new needle pattern 6000X. In a complete needling line this felt homogenization process can be improved further by using the new needle pattern 8000X which is a milestone in the needle pattern development process and results in endproduct surfaces with low markings over a wide range of advances/stroke.

The “3D-Lofter” which was first presented during ITMA 2019 in Barcelona offers a wider range of nonwovens applications by exploring the third dimension. A series of single web forming units which work according to the aerodynamic web forming principle deliver defined fibre masses in varied patterns on a base needlefelt. A stress oriented production of technical formed parts resulting in fibre savings or patterned DI-LOUR or DI-LOOP felts are two examples for this technology which explores new application areas for needlefelts The 3D-Lofter technology may also be used “inverted” for filling up bad spots in web mats and thus achieves a better homogeneity of e. g. spunlace, thermobond or airlay products.

The DiloLine 4.0 concept offer I4.0 modules which not only support the user but also facilitate quality control and maintenance by a maximum data transparency in production and control of operation. The Dilo solutions “Smart Start” for a fully automatic start of the production line or “DI-LOWATT” for energy savings are accompanied by Siemens solutions which can be selected via App or Data Cloud “MindSphere”.

Apart from machines for needling technology we offer in cooperation with partner companies also production lines including thermobonding and hydroentangling components.

• Strengthening leather-finishing offering

Stahl announces plans to fully integrate its leather-finishing subsidiary, PielColor, into its core business by the end of 2021. The move will see PielColor’s products and expertise brought entirely in house, strengthening Stahl’s offering to its customers while improving the visibility and reach of the PielColor brand.

Stahl acquired PielColor, a company specializing in the manufacture and marketing of chemical products for leather finishing, in 2004. The subsidiary focuses on specific customer segments within the leather market, such as high-fashion brands, and is known by customers for its support-driven and solutions-oriented approach. PielColor also offers several innovative product lines, including a range of low-impact water-based topcoats, which it is able to tailor to its customers’ requirements.

In late 2020, the decision was taken to fully integrate PielColor, positioning it alongside Stahl as a core brand within the Stahl group. Full integration will strengthen Stahl’s position in the leather-finishing market by leveraging PielColor’s well-established reputation and extensive range of innovative responsible chemistry solutions. Marketing PielColor as a Stahl group brand will also drive the visibility and market reach of PielColor products, including in regions where they are less well established.

The integration program will continue to take place over the remainder of 2021, with all parts of the PielColor business expected to be fully operational under the new structure by the end of the year.

As part of Suominen Corporation’s Half-Year Financial Report for January 1 – June 30, 2021 the company shared their insights and actions defined in their sustainability agenda.
A new Code of Conduct was launched in the beginning of 2021 and a mandatory training program about the Code will be start in the third quarter of this year.

Suominen is committed to continuously improving their production efficiency and the efficient utilization of natural resources. What active measures towards reducing energy consumption, greenhouse gas emissions, water consumption and waste to landfill are concerned, the commitment is to diminish them by 20% per ton of product by 2025 compared to the base year of 2019.
Offering a comprehensive portfolio of sustainable nonwovens and continuously developing new and innovative solutions with a reduced environmental impact, the target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year. During the first half of the year, nine sustainable product launches were made.

OUTLOOK FOR 2021
As announced on August 12, 2021 Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will decrease from 2020 due to the slowdown in the demand for nonwovens in the second half of 2021 as well as some continuing volatility in the raw material and transportation markets. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

• Long-term partnership between the Austrian textile producer FEINJERSEY and the German textile machinery manufacturer BRÜCKNER

The Feinjersey Group is an internationally operating textile company and supplies the "global players" of the textile industry worldwide. The value chain of the company, which is based in Götzis, Austria, ranges from yarn processing to the finished product.

As a fully integrated production company, the internationally active textile company Feinjersey attaches great importance to a high quality standard and guarantees care at every step in the process chain. With approx. 250 employees and annual sales of around 45 million euros, the company knits, dyes and finishes top-quality knitted fabrics as well as elastic woven fabrics for a wide range of applications.

Products are made for the fashion, sports, workwear and technical textiles sectors. Among other things, fabrics for the automotive industry, laminating backings and coating substrate for artificial leather or foils, construction textiles or fabrics for medical technology are all produced.

The Austrian textile manufacturer has been certified with the Bluesign textile seal and ensures efficient use of resources with modern machinery. Water and energy consumption as well as pollutant emissions are to be reduced to a minimum.

In textile finishing in particular, the focus is on minimising energy consumption as this process is the most energy-intensive in the entire process chain. Feinjersey uses its own photovoltaic system for this purpose, as well as the heat recovery and exhaust air purification systems on the stenter frames. By using the waste heat from production, the company's buildings are heated. All six stenter frames at Feinjersey are made by BRÜCKNER and produce with three-stage heat recovery and exhaust air purification systems.

The latest BRÜCKNER line has a working width of 4.20 m and is mainly used for the finishing of high-ly elastic and extremely sensitive knitted fabric. In order to avoid yellowing on the fabric, the stenter is equipped with an indirect gas heating system. The knitting oil vapours coming from the fabric during the heat-setting process are extracted from the dryer and cleaned in a BRÜCK-NER ECO-AIR exhaust air cleaning system before being extracted to atmosphere. The complete exhaust air treat-ment on the newest stenter is carried out by a multistage BRÜCKNER ECO-HEAT and ECO-AIR system.

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

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

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

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

The Turkish company ARIKAN Mensucat Industry and Trade Inc. was founded in 1993 and is located in Kahramanmaraş, one of the southernmost cities of the country. Today, the family-owned company employs around 1,500 people and finishes around 55 tons of knitwear every day. In addition to many well-known Turkish fashion manufacturers, ARIKAN also supplies international manufacturers in Europe, Russia, the Gulf States and other leading international markets.

The German machinery manufacturer BRÜCKNER supported the Turkish company from the very beginning. From the foundation of the dyeing and finishing plant, BRÜCKNER supplied three stenters for the finishing of the high-quality knitted fabric in 2014. Two more lines followed in 2016. For decades, BRÜCKNER has been the market leader for the finishing of knitted fabric. Especially for very fine and elastic fabric, special line configurations and technological know-how are necessary to be able to produce a high-quality end product. During the drying and heat-setting process, for example, extremely accurate and uniform temperature distribution over the entire length and width of the dryer is essential. In the BRÜCKNER stenter this is achieved, among other things, by the alternating arrangement of the thermal zones every 1.5 meters and by the proven split-flow air system.

The machine operators at ARIKAN appreciate the easy control of BRÜCKNER lines. The visualization is intuitively designed and offers many auxiliary systems for an optimized production process. In addition, significant energy savings can be achieved with just a few changes to the machine parameters.

The management at ARIKAN attaches great importance to energy saving, especially in the fabric finishing department. The drying process is one of the most energy-intensive in the entire process chain, therefore the biggest savings can be made here. These have a direct impact on the manufacturing costs of the textiles and thus on competitiveness in the market. In the meantime, talks are already in progress for another BRÜCKNER line which will include a very special feature: a combined heating system for the dryer. For many customers - and so also for ARIKAN in Turkey - e.g. steam energy is available free or very cheap. With the combined heating system developed by BRÜCKNER it is possible to use this steam energy for heating up the dryer and thus to achieve significant savings. If the available steam is not sufficient for a running process, it is automatically switched over to gas heating. This mode of operation does not only have an effect on the energy costs, but also makes a considerable contribution to environmental protection.

• Transformation program and improving order situation show first successes
• Sales up 8.8% to €496.7 million compared with first half of previous year
• Adjusted EBITDA improves by 70.7% to €71.7 million
• Positive business development led to forecast increase on July 13, 2021

While the past fiscal year 2020 was still characterized by a Corona-related slump in orders in many business areas of SGL Carbon, demand picked up again in the first six months of 2021. Accordingly, Group sales increased by 8.8% to €496.7 million in H1 2021 (H1 2020: €456.5 million).

The Carbon Fibers and Composite Solutions Business Units particularly contributed to the €40.2 million increase in sales. Carbon Fibers contributed €166.4 million to Group sales, especially benefiting from increased demand from the automotive market segment. In the Composite Solutions Business Unit, the increase in sales of 52.4% to €60.2 million was also primarily based on the recovering demand from the automotive industry.

With sales of €221.2 million, the Graphite Solutions business area contributed around 44.5% of SGL Group sales. The 3.8% increase in the division's sales was particularly due to the positive development in the important markets of the LED, semiconductor and automotive industries.

Transformation program:
The restructuring and transformation process initiated at SGL Carbon made a significant contribution to the Company's positive sales and earnings performance. In addition to leaner and more efficient structures as well as a reorganization of the business units with responsibility for results, a large number of improvements and cost initiatives in all business units and sites have contributed to the success of the ongoing transformation program.

Forecast increase:
Due to pleasing business development in the first half of the year as well as transformation successes, SGL Carbon raised its forecast for fiscal year 2021 on July 13, 2021. For the financial year 2021, the company now expects consolidated sales of around €1.0 billion (previously: €920 - 970 million). In line with developments in the first half of 2021 and the results from the transformation, adjusted EBITDA for 2021 is expected to be between €130 - 140 million (previously: €100 - 120 million). Accordingly, a slightly positive net profit is now forecasted for fiscal year 2021 (previously: €-20 million to €0).

• Expanding additive manufacturing technology portfolio for next generation of sustainable on-demand textile production

Kornit Digital Ltd. (NASDAQ: KRNT), a worldwide market leader in digital textile production technologies, announced the acquisition of all associated assets of Somerville, Massachusetts-based Voxel8.  

Voxel8’s advanced additive manufacturing technology for textiles allows for digital fabrication of functional features with zonal control of material properties, in addition to utilizing high-performance elastomers adhering to inkjet technology.

"By integrating Voxel8’s technology into Kornit’s product roadmap, we will be able to transform numerous market segments and verticals, accelerating our collective visions and technology advancements," . “Voxel8 offers direct 3D print-on-part capabilities, advanced design software that can be easily integrated with any production floor software workflow, and versatile chemistry enabling on-the-fly formulation of high-performance elastomers to change the material properties of the resulting printed structures by multiple orders of magnitude. This means reflective, high-density, silicone and metallics, as well as compression elements for sports and therapeutics, protection elements like cushioning and impact resistance, and functionality applications like anti-slip, waterproofing, and other qualities combining form and function that are key to Kornit’s vision of digitizing production in every conceivable manner,” explained Kobi Mann, Kornit Digital Chief Technology Officer