From the Sector

This year, Eastman and its innovative Naia™ cellulosic fibers have earned again the dark green shirt designation in the Canopy Hot Button Ranking and Report, underscoring the steadfast commitment to protecting ancient and endangered forests while driving innovation in Next Generation fiber solutions.

With “buttons” being used in the report as a measure of MMCF producers sustainability performance across seven critical categories, Eastman maintained a score of 30 buttons for the sustainable production of Naia™ cellulosic fibers. This recognition has been consistently reconfirmed since 2022, after Eastman’s first light green designation in 2019, reflecting their ongoing efforts to prioritize sustainable raw material sourcing, low-impact production processes, and fiber innovation that comes with a lighter impact on the planet.
The Naia™ Renew portfolio, including the Naia™ Renew ES, has also been a cornerstone of this success. Already available at scale, Naia™ Renew ES is created from a blend of 40% certified recycled waste materials, 20% certified recycled cellulose, and 40% sustainably sourced wood pulp. This innovative fiber has become a preferred choice for sustainability-driven brands like Reformation which has already launched its 2nd collection and is gaining increasing traction in retail markets worldwide.

By investing in cutting-edge technologies and industry collaboration, Eastman is redefining what is possible in sustainable fiber innovation. The company remains committed to advancing its mission of creating high-quality, eco-conscious solutions that support the well-being of the planet, industry workers, and consumers alike.

International technology group ANDRITZ has received an engineering order from US textile recycling innovator Circ in anticipation of its first large-scale textile recycling plant. The plant will be the first to recover cotton and polyester from blended textile waste.

Circ® is a pioneering company focused on sustainable solutions for the fashion industry. By converting fashion waste into reusable raw materials for fabrics, Circ reduces the need for petroleum and natural resources. The company’s mission is to build a truly circular economy to protect the planet from the cost of clothing.

ANDRITZ has been successfully conducting trials for Circ at the ANDRITZ Fiber R&D Center in Springfield, Ohio, USA, for several years. The successful partnership and recent developments have led to the decision to expand this cooperation.

The majority of fashion waste consists of polyester-cotton blends, which poses a significant challenge to achieving greater circularity. In particular, the separation of cellulosic and synthetic fibers from textile waste has been a major obstacle. Circ’s innovative recycling process can break down polycotton textile waste into its original components – polyester and cotton. The forthcoming plant will process 200 tons of textile waste per day, allowing cotton to be recycled for lyocell production and polyester to be reused for polyester production. This will reduce the need for virgin raw materials.

Conor Hartman, Chief Operating Officer at Circ, says: “We remain excited about this continued collaboration with ANDRITZ. Together, we will commercialize Circ’s innovative recycling process and take another step towards a truly circular fashion industry. With its expertise in engineering and building large-scale process equipment, ANDRITZ is the right partner to help us transform textile waste into recycled fibers on an industrial level.

Michael Waupotitsch, Vice President Textile Recycling at ANDRITZ, comments: “We are eager to support Circ in their vision of circularity because the technology they have developed is uniquely suited to solve one of the biggest challenges in fashion waste and recycling. With our holistic knowledge in resizing, mechanical separation, hydrothermal processing, recovery of cellulosic pulp as well as pulp cleaning and pulp drying, we have the right expertise to help them achieve their goals. Our experience in process development and machinery will help bring their innovative recycling technology to life.”

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, posted a marked improvement in quarterly performance as the chemical industry struggles to recover from a prolonged downturn and the company’s management executes their 3 year IVL 2.0 strategy to enhance competitiveness and drive efficiencies.

Indorama Ventures reported Adjusted EBITDA  of $427 million in 3Q24, a gain of 32% YoY, supported by steady volumes, improving industry spreads, and the company’s unstinting focus on optimizing assets and reducing fixed costs. The quarter marks Indorama Ventures’ first YOY improvement for the year, with all three business segments recording earnings growth, following a prolonged industry downcycle marked by customer destocking and suppressed margins. Volumes remained steady for the Combined PET and Fibers segments, while Indovinya posted a robust performance amid a peak season in the Crop Solutions market.

Fibers reported Adjusted EBITDA of $48 million, a gain of 44% YoY, driven by improved industry spreads in Lifestyle and higher volumes in Mobility and Hygiene. Management is focused on reducing fixed costs and improving profitability across the entire portfolio and taking firm action to restore market share in key verticals.

Looking ahead, the global economic outlook remains uncertain amid continued inflation, geopolitical tension, and supply chain disruptions. However, throughout the downcycle, Indorama Ventures’ experienced management team has worked hard to optimize and deleverage the business under their IVL 2.0 evolved strategy to emerge stronger and drive enhanced earnings quality in a new era of sustainable profit growth. In 3Q24, this unrelenting focus delivered fixed-cost savings of $19 million, which will sequentially increase into next year as the benefits are fully realized. Operating rates for the group increased to 82% in the quarter—from 69% previously—as the company completed its planned optimization program for CPET and Indovinya, with Fibers under implementation.

The company’s digital transformation program is accelerating according to schedule following the implementation of the SAP S/4HANA ERP platform as a digital core. North America is already benefiting from an AI-based procurement solution, while the Connected Worker Platform is driving manufacturing excellence. The first sales and supply chain solutions are expected to go-live early next year.

Weak demand in some of their customer markets is increasingly hindering SGL Carbon's sales growth. After nine months in 2024, SGL Carbon generated sales of €781.9 million, which was slightly below the prior-year level at minus 4.8% (9M 2023: €821.7 million). Adjusted for currency and structural effects, Group sales decreased by 3.6%. Adjusted EBITDA, an important key figure for the Group, remained at a comparable level of €127.6 million in the reporting period (9M 2023: €130.0 million). Despite the slight decrease in sales, the adjusted EBITDA margin improved from 15.4% in Q1 and 16.7% in Q2 to 16.9% in Q3 and amounted to 16.3% after nine months (9M 2023: 15.8%). The reasons for the improved adjusted EBITDA margin are, in particular, product mix effects in the Graphite Solutions and Process Technology business units. By contrast, the ongoing weakness in demand and the associated price pressure for carbon and textile fiber products in the Carbon Fibers business unit continued to weigh on the Group's sales and earnings development.

“Even with our diversified product portfolio, we can no longer completely withdraw from the generally weak economic environment. In addition, there was a decline in demand for specialty graphite products for the semiconductor industry in the third quarter. In particular, our products for the manufacture of silicon carbide-based semiconductors are suffering from the restrained demand for electric vehicles on the customer side,” explains CEO Dr. Torsten Derr. “While the last 18 months were characterized by enormous demand for silicon carbide semiconductors and insufficient production capacities, the market has cooled down significantly. Due to a lack of demand from the automotive industry, our semiconductor customers have significantly reduced order volumes. We do not expect to see a significant upturn in demand for our specialty graphite products until the sales figures for electric vehicles pick up again.”

Based on the adjusted EBITDA of €127.6 million and taking into account depreciation and amortization of €41.0 million (9M 2023: €43.3 million) and one-off effects as well as non-recurring items of minus €18.3 million (9M 2023: minus €47.2 million), EBIT after nine months of 2024 will be €68.3 million (9M 2023: €39.5 million). The one-off effects and non-recurring items result, among other things, from the restructuring measures at Carbon Fibers and the Battery Solutions business line as well as from expenses for a strategy project. When comparing with the previous year, it should be noted that the first nine months of 2023 were disproportionately affected by an impairment loss on the assets of Carbon Fibers (€44.7 million).

Development of the business units
The Carbon Fibers business unit's sales for the first nine months of 2024 amounted to €157.1 million, significantly below the figure of €179.6 million for the prior-year period. The decline is due in particular to the continued weak demand from the wind industry and to the increasing competitive pressure resulting from global overcapacities for carbon and textile fibers.

Idle production capacities and the associated lack of fixed cost absorption as well as declining margins for commodity products led to a further deterioration in the adjusted EBITDA of the Carbon Fibers. The adjusted EBITDA of the Carbon Fibers business unit fell to minus €7.9 million in the first nine months of 2024 (9M 2023: €3.2 million). It should be noted that the adjusted EBITDA of the Carbon Fibers business unit includes an earnings contribution of €11.6 million from the joint venture BSCCB, which is accounted for At-Equity (9M 2023: €14.1 million). Excluding this contribution from the At-Equity accounted BSCCB, the adjusted EBITDA of Carbon Fibers would have been minus €19.6 million (9M 2023: minus €10.5 million).

SGL Carbon assumes that demand for carbon fibers will not recover in the coming months and that the realizable prices for these products will remain at a low level beyond 2025. Therefore, SGL Carbon anticipates that the expected improvement in sales and earnings for the Carbon Fibers segment will be delayed and is revising its existing mid-term planning for this segment. Due to the expected deviation, an ad hoc impairment test is currently being carried out. This indicates a non-cash impairment charge of €60–80 million, which will be recognized in Q4 2024. The structured transaction process initiated for Carbon Fibers is still ongoing.

Sales in the Composite Solutions business unit amounted to €95.8 million in the first nine months of 2024, down 16.2% (9M 2023: €114.3 million). The decline is due in particular to the early termination of a project-related supply contract with an automotive customer. Furthermore, the lower sales figures for electric vehicles are also having an impact on Composite Solutions.

Adjusted EBITDA in Composite Solutions fell from €16.6 million in the prior-year period to €10.7 million (minus 35.5%), due in particular to lower volumes. The adjusted EBITDA margin weakened accordingly to 11.2% (9M 2023: 14.5%).

Outlook
Macroeconomic conditions, lower than expected sales volumes in some customer groups and price pressure for commodity products are increasingly hindering SGL Carbon's growth ambitions. Thomas Dippold, CFO of SGL Carbon, explains: “Due to the diverse and diversified industrial applications of our products and our strict cost management, we continue to expect to achieve our guidance for 2024 at the lower end of the range of €160–170 million. The coming months will not be easier. We need to prepare for a flat demand development in some of our sales markets.”

For the first time, a piece of clothing is made entirely from textile waste – no bottles, no packaging, no virgin plastic. 100% biorecycled fibers. By developing and industrializing CARBIOS’ enzymatic depolymerization technology to achieve 100% “fiber-to-fiber” recycling, the consortium collectively advances the textile industry's shift towards a circular economy.

CARBIOS, a pioneer in the development and industrialization of biological technologies to reinvent the life cycle of plastic and textiles, and its “fiber-to-fiber” consortium partners On, Patagonia, PUMA, Salomon, and PVH Corp., parent company of Calvin Klein, unveil the world’s first enzymatically recycled polyester garment made from 100% textile waste using CARBIOS’ pioneering biorecycling technology.

This technological feat contributes to advancing textile circularity when, today, the majority of recycled polyester is made from PET bottles, and only 1% of fibers are recycled into new fibers.  The collective achievement marks an important milestone for the consortium’s ultimate aim of demonstrating fiber-to-fiber closed loop using CARBIOS’ biorecycling process at an industrial scale, and marks an important step forward for the textile industry’s shift towards a circular economy.

A plain, white T-shirt was a deliberate choice to showcase the technological achievement that made its production possible from mixed and colored textile waste.  By using CARBIOS’ biorecycling technology, polyester is broken down using enzymes into its fundamental building blocks which are reformed to produce biorecycled polyester whose quality is on par with oil-based virgin polyester.  Petroleum can now be replaced by textile waste as a raw material to produce polyester textiles, that will in turn become raw materials again, thus fueling a circular economy, with the added benefit of a lower carbon footprint and avoidance of landfill or incineration.

The t-shirt’s production began with all consortium members (On, Patagonia, PUMA, PVH Corp. and Salomon) supplying rolls and production cutting scraps to CARBIOS in Clermont-Ferrand, France.  This textile waste consisted of some mixed blends with cotton or elastane, as well as various treatments (such as durable water repellent) and dyes which render them complex to recycle using conventional methods. The collected waste was deconstructed into its original monomers, PTA and MEG, using CARBIOS’ biorecycling technology at its pilot facility. The resulting monomers were then repolymerized, spun into yarn and woven into new fabric by external partners, demonstrating the seamless integration into existing manufacturing processes.  The resulting sports t-shirt made from 100% textile waste meets the quality standards and sustainability objectives of the apparel brands present in the “fiber-to-fiber” consortium.

CARBIOS’ demonstration plant in Clermont-Ferrand, France, has been up and running since 2021, and its first commercial plant, the world’s first industrial-scale enzymatic PET recycling plant, is currently under construction in Longlaville, France.  In addition, CARBIOS recently announced several letters of intent with PET producers in Asia and Europe, confirming global interest in its biorecycling technology and advancing the international roll-out of its licensing model.

INDA, the Association of the Nonwoven Fabrics Industry, announces the three finalists competing for the 2024 Hygienix Innovation Award™. Harper Hygienics, Hello Hazel, and HIRO Technologies will present their absorbent hygiene products at Hygienix™, taking place November 18-21 at The Renaissance Nashville Hotel, Nashville, Tennessee.

• Harper Hygienics S.A.: Cleanic Naturals Hemp – Sanitary Pads (Day & Night), Pantyliners
  Cleanic Naturals Hemp by Harper Hygienics S.A. is an innovative femcare line, crafted with sero™ regenerative hemp fibers produced by Bast Fibre Technologies and processed on our unique Hemplace™ technology platform. These sanitary pads and pantyliners are designed for women’s comfort throughout their cycle. Hemp’s antibacterial and hypoallergenic properties make it a natural solution for sensitive skin, ensuring all-day safety and comfort. Plus, sero™ hemp fibers are 100% natural, offering an eco-conscious approach to personal care.
• Hello Hazel, Inc.: Hazel High & Dry Briefs
  Hazel’s High & Dry Briefs – the first and only disposable briefs for leaks designed to look, fit, and feel like real underwear. Engineered with a novel, ultra-thin, highly absorbent core seamlessly integrated beneath a unique elasticated cover that moves naturally with her body, offering unparalleled comfort, discretion, and reliable protection. Purposefully developed to reduce stigma and address both physical and emotional needs, the Briefs successfully attracted many new consumers who previously opted out of the category.
• HIRO Technologies, Inc.: World’s First MycoDigestable™ Diapers
  Introducing the world’s first MycoDigestible™ diapers, powered by HIRO’s frontier fungal technology. HIRO’s MycoDigestible™ solution introduces plastic-eating mushrooms in a safe, user-friendly way that seamlessly integrates into everyday life. The HIRO Diaper combines exceptional absorbency with natural materials like unbleached TruCotton™ and Kraft softwood fluff pulp, offering 12-hour protection while being gentle on both baby and planet.

The 2024 winner will be revealed on Thursday, November 21st at 11:00 am.

The 2023 Hygienix Innovation Award went to Sequel Spiral™ Tampon, which features a unique spiral design engineered for enhanced fluid absorption and leak prevention. This breakthrough product received FDA clearance as a medical device and is available online and in a growing number of retail outlets.

The Lenzing Group, a supplier of regenerated cellulose fibers for the textile and nonwovens industries, acquired of a minority share in TreeToTextile AB, joining the existing shareholders H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest. The group of owners is united by the strong belief that sustainably produced fibers will have the power to change the textile industry to the better.

TreeToTextile was established as a joint venture in 2014 with the objective of developing a more sustainable process for cellulosic fiber production. The company has operated pilot lines since 2015 and invested in a demonstration plant in 2021. The next step in the company's evolution will be to scale up the production and make its fibers available on the market.

Lenzing Group has produced sustainable regenerated cellulosic fibers and dissolving wood pulp for over 85 years. “We are excited about TreeToTextile’s award-winning technology and production process, which further reduces environmental impact, promotes the transition to a more sustainable future and is fully in line with our corporate strategy,” says Rohit Aggarwal, CEO of the Lenzing Group.

Dr. Roxana Barbieru, CEO of TreeToTextile, adds: “Now with the additional expertise and sustainability leadership of our new shareholder Lenzing Group, our speed to market will increase significantly, to reach our ambitious goals and become an important player in the textile industry.”

Indorama Ventures concentrates large parts of its high-performance polyester filament yarn production for the European textile industry around 100km west to Milan, Italy.

By transferring current German production and bundling the company’s spinning, draw texturizing and dyeing expertise in Sandigliano and its neighboring site in Saluzzo, Indorama Ventures executes on its strategy to transform its global asset network into a focused footprint that can serve volatile markets.

European textile filament customers will benefit from efficient, reliable supply of high-quality, colored, spun and package dyed, as well as functional yarns for a vast range of applications in customized quantities. End use applications are, among others, in apparel, home textile, woven label and automotive interior markets.

“While European customers value our expertise and supply capabilities from within the region, they also expect us to be highly cost competitive”, explains Vipin Kumar, Chief Operating Officer of Indorama Ventures’ fibers business. “Consolidating our capabilities will be most efficient moving forward and allow us to continuously serve our European customers with highly specialized and proven quality-products and services competitively.”

The company’s twisting and air texturizing processes will continue to be performed out of Bulgaria.

Haelixa has partnered with Italian fashion brand OVS for the second consecutive year. This collaboration aims to mark and trace cotton grown in Italy, ensuring trust throughout the supply chain.

Haelixa has integrated its DNA markers into the existing operations for OVS's cotton. The cotton is grown in Italy and marked with the DNA markers at the gin, close to the farm. The fibers are tested during the entire manufacturing process, ensuring that the cotton used in this OVS collection is ethically and sustainably sourced. This partnership is a testament to their commitment to promoting responsible and transparent practices in the fashion industry, providing customers with the assurance of the cotton's origin.

Traceability has become crucial in the fashion industry, with consumers demanding more information about the products they purchase. By partnering with Haelixa, OVS continues to meet this demand and set a new standard for cotton in the industry. This alliance will benefit customers and the farmers in Italy, giving them fair recognition for their work.

Simone Colombo, Head of Corporate Sustainability, says, “In 2024, we have continued with Swiss DNA Traceability supplier Haelixa in marking and tracing our OVS Cotone Italiano for the second year. Our goal is to approach 5% of our cotton requirements from cultivation in Italy within a few years.”

The collaboration between Haelixa and OVS has boosted the transparency of their supply chain. With the help of traceability provided by Haelixa, OVS is working towards improving its products' social and environmental impacts. OVS is firmly committed to sustainable and ethical practices and aspires to enhance its operations yearly. The partnership with Haelixa is a testament to their dedication to improving traceability in the fashion industry.

Indorama Ventures Public Company Limited (IVL) has achieved ISCC+ certification for three of its fiber manufacturing sites. In addition to one already ISCC+ certified fiber plant, this marks a significant milestone in the company's ongoing commitment to sustainability and circular economy practices. Across its entire business, a total of nine Indorama Ventures sites are now ISCC+ certified, offering a diverse range of sustainable products, including PTA, PET chips, fibers, and fabrics.

The newly certified high-performance fiber portfolio will serve customers who require technical yarns such as in the Mobility, Tire cords, Airbags, Industrial or Mechanical Rubber Goods sector. The new offerings include:

• Mass balanced (M.B.) polyamides PA6.6 and PA4.6 from the company’s sites in Obernburg (Germany) and Pizzighettone (Italy). Developed in collaboration with key partners, these products match the performance of standard polyamide yarns while reducing GHG emissions by approximately 55% at the polymer level.
• Bio-based high-tenacity PA4.10 (M.B.) yarn made in Obernburg (Germany) for tire and specialties applications. This 100% bio-content polymer, produced from bio-based Sebacic Acid and bio-based Di-Amino Butane (DAB) component via mass balancing, supports significant GHG emissions reduction due to the innovative raw material.
• Recycled PET yarns and tire cord fabric from Indorama Ventures’ site in Kaiping (China). These yarns and fabrics made from 100% recycled PET, represent the company’s efforts to drive the evolution towards circular practices and lower carbon products.

ISCC+ Certification
The ISCC+ (International Sustainability and Carbon Certification) is a globally recognized standard for the sustainable production of biomass, and bio-based products, including recycled content. This certification ensures that materials are sourced and processed responsibly, reducing the environmental impact and promoting a circular economy.