From the Sector

The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the textile and nonwovens industries, reports a continued improvement in its business performance in the first quarter of 2025, although the recovery of global textile markets remained very slow and uneven during the reporting period. While the positive trend in volumes sold continued, prices remained constant at a low level. Raw material, energy and logistics costs continued to be high.

Revenue grew by 4.8 percent year-on-year to EUR 690.2 mn in the first quarter of 2025. The operating earnings trend largely reflected the positive effects of the performance program. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 118.8 percent year-on-year to EUR 156.1 mn. This also includes positive special effects from the sale of EUR 25.5 mn surplus EU emission certificates and the change in the fair value of biological assets in the amount of EUR 9.2 mn. The EBITDA margin in-creased from 10.8 percent to 22.6 percent. The operating result (EBIT) amounted to EUR 74.3 mn (compared with EUR 1.5 mn in the first quarter of 2024) and the EBIT margin amounted to 10.8 percent (compared with 0.2 percent in the first quarter of 2024). Earnings before tax (EBT) amounted to EUR 35.1 mn (compared with minus EUR 17.8 mn in the first quarter of 2024). The result after tax also improved significantly and was positive again for the first time since the third quarter of 2022 at EUR 31.7 mn (compared with minus EUR 26.9 mn in the first quarter of 2024).

The Lenzing Group’s performance program is designed holistically with the overarching objective of significantly increasing long-term resilience to crises and greater agility in the face of market changes. The program initiatives are primarily aimed at improving EBITDA and at generating free cash flow through enhanced profitability, as well as sustainable cost excellence. Extensive actions are being undertaken to strengthen sales activities, such as the acquisition of new customers for the most important fiber types as well as expansion in previously smaller markets, which are exerting a positive impact in terms of revenue. The Managing Board also anticipates significant cost savings. Savings of over EUR 130 mn were already realized in the 2024 financial year. From the current financial year onwards, Lenzing is aiming for recurring annual cost savings of over EUR 180 mn.

Outlook
The IMF has significantly downgraded its growth forecasts for both this year and next to 2.8 percent and 3.0 percent respectively. The escalation of international trade conflicts and the risk of inflation returning are seen as major threats to global growth.

In times of uncertainty and high living costs, consumers can be expected to remain cautious and thrifty, with negative effects on consumer sentiment and their willingness to spend.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, analysts expect a slight increase in stocks to around 18.8 mn tonnes in the current 2024/2025 harvest season, according to preliminary estimates.

Lenzing will continue to consistently implement its performance program and expects to leverage further cost potentials and further improve its revenue and margin generation.

Having weighed the aforementioned factors, the Lenzing Group confirms its guidance for the 2025 financial year of year-on-year higher EBITDA.

However, the current tariff dispute and the high level of uncertainty associated with it are dampening expectations and further limiting the visibility of earnings.

In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also the further expansion of its market leadership in the sustainability area.

Every year, millions of tons of PET and polyester waste end up in landfills or are incinerated, yet sustainable recycling solutions remain limited. DePoly - a leading sustainable PET-to-raw-material recycling company – announced the upcoming launch of a 500-tonne-per-year showcase plant in Monthey, Switzerland this summer, representing a critical step in the company's journey from laboratory breakthrough to industrial-scale implementation.

The facility will demonstrate DePoly's proprietary process that converts PET and polyester waste into virgin-quality raw materials without fossil fuels. Imagine a world where discarded items – from polyester shirts to water bottles – are not wasted anymore but resources transformed back into the building blocks for new products. After all, revolutionizing an industry isn't just about creating new technology – it's about proving it works at scale.

DePoly’s technology has already demonstrated its commercial impact through collaborations with some of the world’s leading companies—not only in fashion, like Odlo, but also in cosmetics and the broader consumer goods industry, including innovators such as PTI. Through these partnerships, DePoly has validated the quality of its recycled monomers by transforming PET waste into new bottles, high-performance textile fibers, and cosmetic packaging. This proves that DePoly’s recycled materials can meet, and even exceed, the highest standards of purity and performance across a wide range of industries.

By delivering oil-equivalent monomers, DePoly’s technology sets a new benchmark for circularity, offering a genuine alternative to virgin materials.

DePoly is ramping up with world-class innovators, bold thinkers and cutting-edge know-how—taking their pilot victory to industrial scale demands nothing less than unstoppable ambition. The company is planning to build a commercial plant in 2027 that will process significantly larger volumes of PET and polyester waste – a major leap in redefining recycling and advancing the circular economy, as DePoly strives to become the global leader in sustainable, circular plastics.

To further accelerate this expansion, DePoly has secured a total of $23 million in seed funding with MassMutual Ventures joining a second closing of its round. The expanded investor base positions DePoly as one of the biggest recycling technology companies in Europe, with more than $30 million raised across two rounds and grants. MassMutual Ventures joins existing investors, including Founderful, ACE & Company, Angel Invest, Zürcher Kantonalbank, BASF Venture Capital, Beiersdorf Venture Capital, and Syensqo.

The Aachen-Dresden-Denkendorf International Textile Conference 2025 will take place on November 27-28, 2025 at the Eurogress Aachen.

Interested parties have the opportunity to contribute to the conference program and submit an abstract for a talk or poster presentation. Please note that the extended deadline for oral presentation abstracts is June 2, 2025. The Call for Abstracts for poster contributions is open until July 31, 2025.
The conference program includes plenary lectures and themed sessions in the areas of

• Sustainable Textiles and Circular Textile Economy
• Bio-based Fibers
• Synthetic High-Performance Fibers
• Artificial Intelligence in the Textile Sector
• Textile Production
• Smart Textiles & Applications
• Textiles for Medicine & Health Care
• Technology Transfer & Start-up Pitches
• Fiber Composites and Lightweight Construction
• Best Practices – Examples from Collaboration Projects between Academia and Industry
• Functionalization & Finishing

Further information about the conference and the call for abstracts (including the submission form) can be found on the website.

Rieter has signed a definitive agreement to acquire Barmag from OC Oerlikon for an upfront equity purchase price of CHF 713 million. The acquisition will create a globally leading player in natural and manmade fibers, headquartered in Winterthur, Switzerland, and is highly complementary to Rieter’s short-staple fiber business.

Barmag is a provider of filament spinning systems used for manufacturing manmade fibers, texturing machines, BCF1) systems, staple fiber spinning and nonwovens solutions and – as an engineering services provider – offers solutions along the textile value chain. In the financial year 2024, the company generated sales of CHF 734 million with around 2 600 employees.

Barmag comprises the established product brands Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven. The main markets for the Barmag product portfolio are China, India, Türkiye and the United States of America. The innovative and technologically advanced products are developed in Remscheid and Neumünster (Germany) as well as Suzhou and Wuxi (China).

As fiber consumption is projected to rise, most of the growth is expected to come from manmade fibers. The increase of natural fibers such as cotton and linen is limited due to natural boundaries. Manmade fibers will help to meet expanding demand for clothing, technical and home textiles. The strategic acquisition of Barmag will transform Rieter into a leading supplier for converting natural and manmade fibers into yarn.

The transaction is fully in-line with Rieter’s strategy and follows previous acquisitions, where Rieter complemented its portfolio in short-staple fiber machinery and expanded its footprint in components and machinery for manmade fiber production. The combined platform allows to leverage the recovery of global filament and short staple fiber spinning markets and to reduce cyclicality due to diversification of end-markets. The acquisition will further enhance Rieter’s position in the important Asia-Pacific region and provide access to Barmag’s filament expertise, which will help to further scale Rieter’s own capabilities and improve digitization solutions and product sustainability.

Rieter’s largest shareholder, Peter Spuhler (c. 33% shareholding) is supportive of the transaction and committed to participating in the rights-issue pro-rata by exercising its subscription rights as well as investing additional capital through the non-pre-emptive capital raise. After the capital increase, PCS Holding AG is expected to retain a shareholding of c. 33%.

Additionally, Rieter’s second-largest shareholder, Martin Haefner (c. 10%), also supports the transaction and has committed to participating pro-rata in the rights-issue by exercising its subscription rights and investing additional capital through the non-pre-emptive capital raise.

Dilo Systems GmbH, a Germany-based manufacturer specializing in complete nonwoven lines, and Kansan Group, a Turkish manufacturer specializing in nonwoven converting lines, end-of-line solutions, and Wetlaid Nonwoven machinery, have signed a strategic partnership agreement to supply custom nonwoven lines. As part of this partnership, comprehensive solutions will be offered by integrating fiber preparation and carding equipment, wetlaid, hydroentanglement and needling lines, as well as converting and end-of-line equipment. Engineering work will be carried out by Dilo Systems GmbH as the main contractor.

The collaboration primarily focuses on specialized nonwoven markets, particularly for hygiene, medical, and technical applications. The production of specialized nonwovens consisting of short and long staple fiber layers is the goal. These nonwovens are typically made from cellulose pulp and carded materials. In hygiene and medical applications, short-cut cellulose materials play a critical role in absorbing and retaining liquids. When the fiber length drops below 12 mm, the faster flushability of cellulose material offers a significant advantage in terms of waste management.

Wetlaid pulp can be hydrodynamically shaped using headbox technology (flowlip, inclined wire), which can be designed according to demand.

Wetlaid products can be further processed with carded web layers and hydroentanglement, integrating into different production processes.

Kansan Materials has successfully established a production line capable of processing hybrid raw materials developed based on the latest hydrodynamic simulation calculations. This line is equipped with advanced software technologies that assist operators in managing production processes in a fully automated, computer-supported mode.

As the main contractor, Dilo Systems GmbH aims to enhance the efficiency of nonwoven production for the hygiene and medical sectors by integrating Kansan’s wet wipe converting lines and end-of-line equipment. In this scope, the integration of materials produced with Dilo’s “CycloPunch” and “MicroPunch” needling machines into Kansan’s wet wipe converting lines is planned. Kansan is a strong partner in this field, with its expertise and leading position in the industry.

This joint development process and marketing efforts lay an excellent foundation for offering complete lines that can produce carded and needle-punched, carded and hydroentangled, carded and wetlaid nonwovens, as well as combinations of these techniques.

With a vision of offering innovative and sustainable solutions in the nonwoven sector, this partnership aims to increase production efficiency while minimizing environmental impact. Dilo Systems GmbH and Kansan’s technical expertise provides faster, cost-effective production processes tailored to customer needs. Furthermore, solutions have been developed in line with sustainability goals, such as energy efficiency and the use of recyclable materials. This collaboration is designed to create new opportunities in global markets, particularly in the hygiene, medical, and technical sectors, while expanding our reach to a broader customer base.

The Board of Directors of INDA and EDANA met this week to continue progress toward a vision of broad collaboration for the benefit of the industry detailed in a Letter of Intent signed by both organizations in September 2024.
 
This work has progressed to include a recommendation to incorporate a separate tax-exempt federation, the Global Nonwoven Alliance (GNA), with INDA and EDANA as the founding members. The purpose of this federation is to provide international leadership for the representation and responsible advancement of the global nonwovens industry (“Industry”) while respecting and benefiting its Members.
 
By aligning resources and expanding collaboration GNA will deliver a more unified and coordinated strategy toward the issues and opportunities faced by the Industry. GNA will enable enhanced programs and service value, reach and efficiency. These benefits will translate into increased local and regional benefits as well as drive innovation, operational efficiencies, and long-term industry growth.
 
Under the proposed framework, INDA and EDANA will continue to operate as independent legal entities, maintaining their focus on regional markets and advocacy. They will also serve as founding members of GNA committed to leadership, staff and program coordination designed to enhance collaboration on cross-border industry priorities.
 
While some organizational details, transition provisions and approval timelines are being assessed by the INDA and EDANA Boards, both have expressed their strong support for the vision and purpose of GNA and are committed to responsibly advance this initiative.
 
INDA and EDANA remain committed to a transparent process, both for our members and the industry, and will provide regular updates as this work progresses.

The fine filament nonwoven technology from Freudenberg Performance Materials is made from a wide variety of polymers and blends using mono or bico fibers. The high flexibility and broad customization options provide benefits in a wide range of markets and applications – from roofing membranes to liquid filtration, as well as specific applications such as dehumidification products and artificial turf.

Freudenberg’s innovative fine denier spunbond materials rely on flexible manufacturing capabilities, which enable a high level of customization. They can be made of PET, PE or PP, not only as 100% composition but also in many different combinations, e.g. PET/PE, PET/coPET or PET/mPP, using mono or bico fibers with titer ranging from 2.5 to 3 dtex. The material weight spans 17 to 140gsm. The nonwovens are strongly bonded thanks to thermal bonding provided either by flat calendering or point sealing. The technology enables lightweight solutions with high tensile and tear strength, as well as a smooth and uniform surface.

Advantages for the construction industry
Suited for construction applications such as roofing & facade membranes, vapor barriers and house wrappings, Freudenberg lightweight fine denier nonwovens complement the well-known Terbond®, Texbond® and Colback® solutions for the construction market. They deliver mechanical strength and, in particular, a high nail tear strength as required by the market. Moreover, they have high UV and temperature resistance and stability thanks to the PET composition.

Filtration applications
The fine denier technology is also marketed under the Filtura® brand, specifically suited for liquid filtration, e.g. coolants & lubricants. The technology provides high efficiency and a regular surface, as well as new capabilities with PET-PA and PET-PE nonwovens. Support media applications for glass fiber, nano and activated carbon also benefit from the lightweight fine denier nonwovens as protective layers.

Packaging and coating: Efficient converting and high durability
The fully synthetic PET/PE fine denier materials are ideal for packaging applications such as desiccant bags and other dehumidifier products. They enable the efficient and fast production of such pouches due to their exceptional hot sealing capabilities, with no need for chemical binders or additional treatments. Freudenberg’s technology provides high strength, high abrasion resistance and high durability, allowing for long-lasting desiccant bags.

In the coating industry, too, Freudenberg’s fine denier spunbonds contribute to enhanced process efficiency. The materials are chemically resistant and have good thermal stability. High-quality coating results can be achieved by using these materials as coating substrates, thanks to their smooth and even surface. The material properties can be customized for coating, laminating and concealing applications thanks to different combinations of polymers, fiber types and bonding technologies. For example, a specific very lightweight flat bonded variant of the material is an ideal coating substrate for cold wax depilatory strips, providing the necessary high mechanical strength and material flexibility.

Other applications for Freudenberg’s fine filament technology are crop covers in agriculture, decoration applications and other industrial or consumer applications.