From the Sector

Groz-Beckert offers interested machine builders various cooperation opportunities to jointly develop new products or improve existing ones. In collaboration with Vanguard Pailung, a manufacturer of ultra-high-speed knitting machines for body-size products, Groz-Beckert has developed an innovative slider needle for a new generation of machines. Groz-Beckert's Technology and Development Center (TEZ) provides the appropriate framework for so-called co-development projects.

In June 2022, Vanguard Pailung approached Groz-Beckert with a cooperation request. Together with Groz-Beckert, the company wanted to develop a new needle solution for an innovative ultra-high-speed machine. Together with an innovative slide needle, the new machine was to exceed the speed and productivity of known knitting systems of large circular knitting machines.

Machine and needle development ran in parallel and were closely coordinated. The first field tests took place in the Vanguard Pailung laboratory in Monroe/NC, USA in February 2023. The successful development was presented to a wide audience for the first time at ITMA 2023 in June.

Unlike latch needles, slide needles do not form the stitch via a needle latch, but via a slide that is controlled by its own channel. The advantage of this is that the needle can withstand high speeds, as there is no latch impact, which in turn increases productivity.

The use of the new slide needle in ultra-high-speed machines ensures a particularly high level of process reliability. With the new needle variant, the closer is guided safely and precisely in the groove in the needle shank. At the same time, the base of the needle shank is closed, which ensures maximum stability. The slider needle reliably prevents the so-called latch impact and thus makes a decisive contribution to process reliability. Its use ensures a uniform and speed-independent loop structure, even at maximum speeds.

• Solvay’s FY 2023 financial statements reflect the Partial Demerger completed on December 9, 2023, with the Specialty businesses transferred to Syensqo classified as discontinued operations for 2023.
• New Solvay leadership team committed to drive the transformation of the company.
• Net sales for the full year 2023 at €4,880 million were down -12.6% organically versus 2022, driven primarily by volume declines. In Q4, net sales decreased organically by -18.9% from both lower volumes and prices.
• Underlying EBITDA of €1,246 million for the full year 2023 was stable (+0.2%) on an organic basis compared to a record 2022, with positive Net Pricing and lower fixed costs offsetting the drop in volumes. EBITDA in the fourth quarter was down -24.5% organically vs Q4 2022, fully driven by lower volumes, with variable costs reduction offsetting price erosion, while fixed costs decreased slightly.
• Underlying net profit from continuing operations was €588 million in 2023 compared to €740 million in 2022.
• Free Cash Flow of €561 million in 2023 (+17.3% vs. €479 million in 2022) resulting in a record FCF conversion ratio of 45.4%, thanks to the strong EBITDA performance and to the positive impact from working capital variation.
• ROCE was 20.4% in 2023, -2.5pp compared to 2022 as a result of lower profit.
• Solid balance sheet at the end of December 2023, in line with the target capital structure announced in November 2023, with an underlying net debt of €1.5 billion, which translates into a leverage ratio of 1.2x.
• Total proposed gross dividend of €2.43 per share, subject to shareholders’ approval during the next Ordinary General Meeting of May 28, 2024.
• Solvay continues to reduce its GHG emissions (-19% vs 2021, scope 1 and 2).
• 2024 Outlook: Organic growth of the underlying EBITDA of -10% to -20% compared to restated 2023; Free cash flow of minimum €260 million

2024 outlook
Across its product portfolio, Solvay expects current demand levels to continue over the next few months and, as such, expects H1 2024 volumes to be broadly in line with H2 2023. At this point, there is little visibility on the second half of the year, however there are signs that the trend in the second half could improve. Solvay expects Soda Ash prices over FY 2024 to be lower than FY 2023, consistent with the current market environment, which will affect the business margin in 2024. Pricing trends across Solvay’s other businesses are forecasted to be more resilient year on year.

Lower energy and raw materials prices should offset some of the negative pressure on the topline. More importantly, Solvay has started to implement cost savings initiatives that will start to deliver results in 2024.

For full year 2024, Solvay expects an organic growth of the underlying EBITDA by -10% to -20% versus a high comparison base in 2023, especially in H1. This translates into a range of €925 million to €1,040 million at a 1.10 EUR/USD exchange rate.

The organic growth of the underlying EBITDA is calculated from a 2023 restated figure of €1,154 million (vs a reported figure of €1,246 million).

Free cash flow to Solvay shareholders from continuing operations is expected to be greater than €260 million, in line with the cash usage prioritization presented during the Capital Market Day in November 2023. It is supported by Solvay’s ability to manage its capex and working capital to ensure the financing of its businesses and the payment of dividends while keeping the strength of its balance sheet intact.

Solvay remains committed to implement its strategic roadmap and reconfirms its 2028 targets as communicated at the Capital Markets Day of November 2023.

Together with Cotton made in Africa (CmiA) and the cotton company MMP Agro, the GoodTextiles Foundation is realising a project to improve the drinking water supply in Uganda, Africa. Bio-sand-waterfilters are being installed to gently purify the water from existing sources. In addition, the partners are training the community's farmers and craftsmen in how to operate the water filters. They then learn how to build new water filters.

In 2016, the textile company Dibella established the GoodTextiles Foundation with the aim of making textile value chains more sustainable. It raises donations and implements its own funding projects to benefit people at all stages of the textile industry.

As part of a joint project between the GoodTextiles Foundation, the Aid by Trade Foundation (AbTF) (owner of the CmiA standard) and MMP Agro, farmers who grow CmiA cotton in the districts of Abim, Kaplebyong, Dokolo and Kaberamaido in north-east Uganda are now receiving a total of around 1,000 bio-sand-waterfilters. Around 1,000 CmiA farmers, mainly women and the members of their households (an estimated 10,000 community members) benefit from this.

Mahlo GmbH + Co. KG exhibits its technologies at the upcoming IndoIntertex trade show in Jakarta. The event, scheduled from March 20 to March 23, will serve as a platform for Mahlo and its long-term partner agency Agansa to showcase its solutions tailored to meet the evolving needs of the Indonesian textile sector.

With a rich history in textile manufacturing and a skilled workforce, Indonesia has emerged as a key player in the global textile landscape. The country's strategic location, coupled with favorable government policies, has fueled the growth of its textile sector, attracting investments and fostering technological advancements.

Mahlo's participation in the IndoIntertex trade show underscores its commitment to supporting the Indonesian textile industry with solutions designed to enhance quality, efficiency, and productivity. Visitors to Mahlo's booth can expect to explore a range of offerings, including measurement and control systems, process automation solutions, and expert consultancy services.

Freudenberg Performance Materials (Freudenberg) is showcasing solutions for the automotive, building, apparel, filtration and packaging industries at this year’s Techtextil in Frankfurt am Main from April 23 – 26.

Sustainable nonwoven for car seats
One innovation highlight at Techtextil is a novel Polyester nonwoven material for car seat padding. Also available as a nonwoven composite with PU foam, it is not only easier for car seat manufacturers to handle during the mounting process, but also ensures better dimensional stability as well as providing soft and flexible padding. It has a minimum 25 percent recycled content, for example, by reusing nonwoven clippings and waste, and is fully recyclable. Full supply chain transparency enables customers to trace and verify the content of the nonwoven and thus ensures a responsible production process. The Freudenberg experts will also be presenting several other nonwoven solutions made of up to 80 percent recycled materials that can be used in car seat manufacturing.

Biocarrier for green roofs
Freudenberg is showcasing a sustainable carrier material for green roofs on urban buildings at the trade fair. The carrier is made from polylactide, i.e. from renewable resources. When filled with soil, it provides a strong foothold to root systems, enabling the growth of lightweight sedum blankets that can be rolled out to provide instant green roofs. These roofs not only help counter urban heat, they also improve stormwater management and regulate indoor temperatures.

From textile waste to padding
The company extended its circular thermal wadding product range with the release of comfortemp® HO 80xR circular, a wadding made from 70 percent recycled polyamide from discarded fishing nets, carpet flooring and industrial plastic. Because polyamide 6, also known as nylon, retains its performance characteristics after multiple recycling processes, the fibers can be used again and again to manufacture performance sporting apparel, leisurewear and luxury garments.

Packaging solutions with various sustainability benefits
Freudenberg is also showcasing products for sustainable packaging and filtration solutions. The long-lasting Evolon® technical packaging series is a substitute for disposable packaging used in the transport of sensitive industrial items such as automotive parts. The material is made from up to 85 percent recycled PET. A further highlight at Techtextil are Freudenberg’s fully bio-based solutions for manufacturing dessicant bags. The binder-free material based on bio-fibers is also industrially compostable.
In addition, the experts will be giving trade fair visitors an insight into Freudenberg’s filtration portfolio.

Representatives from all 43 European partners of RegioGreenTex met for the Annual Consortium Meeting, hosted by CITEVE – the Portuguese Centre for textile innovation.

Co-funded by the European Union I3 Instrument Programme, RegioGreenTex is a €13 million project to promote investments in textile circularity. Research centres, regional clusters, regional development agencies and 26 SMEs collaborate to realise unique pilot projects to transform the textile industry business model from linear to circular.
 
The annual consortium meeting is a pivotal point to assess the project’s progress and impact. Presentations and workshops have been an essential part of the meeting, along with  networking opportunities where partners created synergies and discussed common challenges. Furthermore, all SME partners showcased their results through an exhibition with samples of garments, yarns, fabrics and products: the outcome of the project’s innovation so far. New collaborations and partners are expected to flourish as another outcome and the meeting.

EURATEX, as project coordinator, ensures the successful implementation of this ambitious initiative. Dirk Vantyghem, EURATEX Director General, commented: “RegioGreenTex is an essential piece of our wider plan to implement the EU Sustainable Textile Strategy. Offering investment support to our SMEs is critical to make this green transition a success.”

Baldwin Technology Co. will join Elmatex GmbH at Techtexil (April 23-26 in Frankfurt, Germany) to demonstrate its TexCoat™ G4 precision spray finishing system.

With Baldwin’s system, the chemistry is precisely distributed across the textile surface and is applied only where it is required, on one or both sides of the fabric. The non-contact technology eliminates chemistry dilution in wet-on-wet processes, allowing full control of maintaining consistent chemistry coverage rates. Plus, pad bath contamination is eliminated, and changeovers are only required when there is a change of finish chemistry.
 
Furthermore, the system offers automated speed tracking, fabric-width compensation, and real-time monitoring to track system uptime, performance and chemistry usage, as well as active care alerts.
 
In addition, the TexCoat™ G4 system can process a wide range of low-viscosity water-based chemicals, such as durable water repellents, softeners, antimicrobials, flame retardants and more. Baldwin’s technology utilizes the same chemicals used in the traditional pad bath, and no special auxiliaries are required. The recipe is adjusted by increasing the concentration and reducing the pickup by a corresponding amount, so that the same level of solids is applied.
 
Some applications, such as durable water repellents, are only applied on the face of the fabric, instead of the traditional method of saturation through dipping and squeezing. Drier fabric entering the stenter means lower drying temperatures and faster process speeds. Single-side applications also open up the opportunity to process back-coated or laminated fabrics in a single pass of the stenter, instead of two passes.

Global Fashion Agenda (GFA) has collaborated with PDS Ventures to launch a new Trailblazer Programme. The new initiative seeks to identify early-stage innovators and support them on their journey to scale.

As part of the Trailblazer Programme, PDS Ventures will award one innovator a significant investment of up to USD 200,000* to accelerate the company’s growth and positive impact in the fashion industry. The winner will also receive commercial and operational support from PDS Group’s Positive Materials - a textile company and strategic research partner supporting the development and acceleration of low impact textile innovation through collaboration between early-stage start-ups, supply chain partners and brands. Further scaling opportunities will be gained through access to PDS Limited’s extensive global supply chain.
 
GFA and PDS Ventures are presenting an open call for solution providers addressing different challenges across the fashion value chain to apply for the programme. Applicants will be reviewed and shortlisted by an esteemed Jury including representatives from GFA, PDS Ventures, Massachusetts Institute of Technology (MIT), Ralph Lauren Corporation, Fashion For Good and H&M Group. Eight shortlisted innovations will be enrolled in a group of Trailblazers, receiving feedback and investment pitch training from industry experts and PDS representatives.     
 
Each shortlisted innovator will then pitch for a potential investment, with the winning Trailblazer being revealed at GFA’s Global Fashion Summit: Copenhagen Edition 2024 - an international forum for sustainability in fashion, on 22-23 May at the Copenhagen Concert Hall. All shortlisted Trailblazers will also have the opportunity to showcase their businesses within an exhibit at the Summit to connect with other key industry stakeholders and potential investors.
 
The Trailblazer Programme corresponds with the theme of the upcoming Global Fashion Summit - ‘Unlocking The Next Level’. Inspired by a significant milestone, 2024 marks 15 years since the inaugural Global Fashion Summit was hosted in 2009. This pivotal anniversary offers a special moment to not only take stock of the evolution of the sector and the progress made so far, but, most importantly, look ahead at what actions must urgently be implemented in the near term, and the gaps that must be filled to accelerate industry transformation.

Since inventing the first fleece crafted from recycled plastic water bottles more than three decades ago, Polartec®, a Milliken & Company brand, and the creator of innovative and more sustainable textile solutions, has upheld its pledge to protect the environment.

With its new Beyond Begins Today initiative, Polartec aims to raise awareness around the important global themes of sustainability, diversity and positive change.

Polartec is engaged to make the goal of zero waste a reality – from using 100% recycled and plant-based materials, to delivering certified waste reductions and innovative technologies that reduce the impact of its activities.

Beyond Begins Today is a multifaceted campaign featuring static and multimedia content, including short films released throughout the year via multiple touchpoints and channels – the first of which will be released on Earth Day 2024 to underscore the underlying premise that the future is what we make it. Polartec’s commitment to sustainable solutions go beyond the integration of increasingly advanced manufacturing methods or the ongoing exploration of novel fibers, and continued investments in sustainable materials development.

Polartec’s promises that every product launches in 2024 will either reduce the impact on the planet, endure the test of time, or contribute to circularity processes. Beyond Begins Today looks at how Polartec fabrics are made to last, and made to be used and enjoyed from one generation to the next and beyond. It explores the innovative monomaterials, repurposed plastic and plant-based nylon membranes and fabrics that Polartec uses to set new standards for high performance materials and the ambitious climate-related objectives across the entire value chain that exceed existing mandates. This holistic strategy shall allow Polartec to stay at the forefront of its industry by producing top-notch textiles that champion environmental stewardship and pave the way for a more sustainable tomorrow.

Infinited Fiber Company has successfully completed a two-part development financing round totaling 40 million euros, with significant investments from new investors Inditex, TTY Management, Youngone and Goldwin, in addition to existing ones.

The new investors are Inditex Group, the parent company of Zara and other brands, and TTY Management B.V., an asset management company privately owned by Tadashi Yanai, Chairman, President and CEO of Fast Retailing. Outdoor clothing manufacturer Youngone (YOH CVC Fund 1 Limited Partnership) and Japanese sportswear manufacturer Goldwin (GOLDWIN Play Earth Fund Investment Limited Partnership) are also among the new investors who joined in the recent second closing of EUR 27 million.

The first part of the development financing round, closed in summer 2023, included investments from existing investors. Apparel companies H&M Group, adidas, BESTSELLER, and Zalando further reinforced their long-term commitment to Infinited Fiber. Also investment company VTT Ventures participated in the first closing, and investment companies Security Trading and Nidoco AB in both closings of the round.

After the development financing round, Inditex, TTY Management and H&M Group are the largest shareholders of Infinited Fiber Company.