From the Sector

Trevira CS is exhibiting for the first time at CSI Miami (Cruise Ship Interiors Design Expo Americas). Taking place on 6 – 7 June, 2023 at the Miami Beach Convention Center, CSI will bring together buyers and suppliers involved in cruise ship interiors, including interior designers, architects, outfitters, shipyards and suppliers.
 
On the Trevira CS stand, visitors can get an idea of the wide range of flame retardant fabrics suitable for use on board cruise ships. 53 fabrics from 20 Trevira CS customers will be on display that either have IMO certification and/or have been tested to the fire safety standards (FTP Code) required in the marine sector. Trevira CS fabrics are inherently flame retardant, meaning that their flame retardant properties cannot be washed out or lost through aging or use. This is due to the chemical structure of the polyester fiber: the flame retardant properties are firmly anchored in the fiber and cannot be altered by external influences. A surface-applied flame retardant finish is therefore not necessary.

In the marine sector, the demands placed on textiles are not only high in terms of fire protection, but also with regards to light resistance and durability. This is particularly true for textiles used in outdoor applications. These must be extremely robust, as they are exposed to moisture and sunlight. To meet these requirements, Trevira CS has launched a range of 30 new spun-dyed, UV-stable filament yarns. Besides color depth and durability, spun-dyed yarns offer another advantage: They are more sustainable because the fabrics made from them can be produced in a more environmentally friendly way than textiles that are dyed in one piece or consist of brightly colored yarns. In fabric production, a large share of resource consumption goes to the dyeing and finishing of fabrics as well as the use of chemicals and water. However, with spun-dyed yarns, these processing steps are unnecessary – the yarn immediately comes out of the spinneret in the desired color, reducing the products’ environmental impact.

The topic of sustainability is also taken up in other Trevira CS products. For example, Trevira CS fabrics are available in recycled versions. They consist of fiber and filament yarns obtained in different recycling processes. Filament yarns are produced using recycled PET bottles, they contain 50% post-consumer recycled material. Recycled fibers are obtained using an agglomeration plant and in further processing steps from residual pre-consumer waste from production. They consist of 100% recycled material (pre-consumer recycling). All flame retardant recycled Trevira® products are GRS (Global Recycled Standard) certified.
Fabrics made from these yarns are marked with the Trevira CS eco trademark. The prerequisite for this is a recycled content of at least 50%. Among the fabrics presented at the Trevira CS trade fair stand are 8 fabrics bearing the Trevira CS eco brand.

The long-term goal in developing sustainable products is undoubtedly to enter a circular economy. For this new path, an innovative Trevira CS product development was launched, producing flame retardant fibers and filament yarns from chemically recycled raw material. In this case, the basic raw material for the chemical recycling was PET bottles, but essentially it could be most any other PET recyclables, such as packaging material or even textiles. Chemical recycling involves depolymerization, a sequence of chemical reactions in which the polymer chains are broken down again into their original components, i. e. the monomers. In a further processing step, impurities are removed. Before the polymerization process is initiated, a small amount of MEG (mono ethylene glycol) is added.

The same technology used to produce the original (virgin) raw material for Trevira CS is also used here. The flame retardant modification is added during polymerization. In this way, the flame retardant properties are indelibly anchored in the polymer.

By recycling valuable materials such as packaging material, waste can be avoided. The raw material obtained from the recycling process is comparable to the original material can be used again in high-quality products.

• Electromagnetically heatable nanomodified stent for the treatment of hollow organ tumours wins second place at the RWTH Innovation Award

Almost every fourth person who dies of cancer has a hollow organ tumour, for example in the bile duct or in the oesophagus. Such a tumour cannot usually be removed surgically. It is only possible to open the hollow organ for a short time using a stent, i.e. a tubeshaped prosthesis. However, the tumour grows back and penetrates the hollow organ through the stent. Ioana Slabu from the Institute of Applied Medical Technology and Benedict Bauer from the Institut für Textiltechnik of RWTH Aachen University have now developed a novel technology for the therapy of hollow organ tumours, which was awarded second place in the RWTH Innovation Award. This involves a polymerstent that contains magnetic nanoparticles. When electromagnetic fields are applied, these nanoparticles lead to a controlled heating of the stent material and thus of the tumour. Because the tumour reacts much more sensitively to heat than healthy tissue, it is destroyed and the hollow organ remains open. Thus, the stent develops a self-cleaning effect.  

Ioana Slabu of the AME explains: "Not only can we drastically reduce treatment costs, but above all we can provide relief for millions of patients worldwide.
 
A manufacturing process and proof of concept for magnetic hyperthermia are already in place. This novel technology has a very high development potential because it can also be used for tumours in other parts of the body such as the prostate, stomach, intestine or urinary bladder or for cardiovascular diseases.  

The AiF/IGF project started under the project title "ProNano" funded by BMWK. Now the approval for the follow-up project "ProNano2" has also been received. The approved project is called: "Validation of the innovation potential of heatable stents for heat-induced treatment of cavity tumours" and is funded by BMBF in course of the VIP+ program. With the Clinic for General, Visceral and Transplantation Surgery of the University Hospital Aachen and the Institute for Technology and Innovation Management at RWTH Aachen University, the consortium is enriched by clinical and economic expertise. Every year, RWTH Aachen University honours particularly innovative university projects with the Innovation Award. Professor Malte Brettel, Prorector for Business and Industry, presented the certificates to four outstanding projects as part of RWTHtransparent.

• Revenue rose to EUR 2.57 bn, while EBITDA declined to EUR 241.9 mn
• Implementation of EUR 70 mn cost reduction program proceeding according to plan
• Largest investment program in the company’s history including the lyocell plant in Thailand and the pulp mill in Brazil implemented on time and within budget
• Outlook: Lenzing expects EBITDA in 2023 to be in a range of EUR 320 mn to EUR 420 mn

The Lenzing Group was increasingly affected by extreme developments on the global energy and raw material markets in the 2022 financial year, in tandem with most of manufacturing industry in Europe. The market environment also deteriorated significantly in the third and fourth quarters, while worsening consumer sentiment placed an additional burden on Lenzing’s business growth.

In the year under review, revenue increased by 16.9 percent year-on-year to reach EUR 2.57 bn, primarily as a result of higher fiber prices. The quantity of fiber sold decreased, while the quantity of pulp sold rose. In addition to lower demand, the earnings trend particularly reflects the increase in energy and raw material costs. Earnings before interest, tax, depreciation and amortization (EBITDA) decreased by 33.3 percent year-on-year to EUR 241.9 mn in 2022. The net result for the year was minus EUR 37.2 mn (compared with EUR 127.7 mn in the 2021 financial year), while earnings per share stood at minus EUR 2.75 (compared with EUR 4.16 in the 2021 financial year).

Outlook
The war in Ukraine and the tighter monetary policy pursued by many central banks to combat inflation will continue to exert pressure on the global economy. The easing of China’s zero-Covid policy could lead to an unexpectedly rapid recovery. However, the IMF has warned that risks remain high overall and projects growth of 2.9 percent in 2023. Exchange rate volatility looks set to continue in regions that are important to Lenzing.

These challenging market conditions are also continuing to weigh on consumer confidence and sentiment in the sectors relevant to Lenzing. The outlook has improved slightly of late, with inventory levels returning to normal across the value chain. Nonetheless, subdued demand remains a source of concern for market players.

Inventories in the bellwether cotton market have diminished recently, although they remain above pre-pandemic levels. A decline in crops is foreseeable in the current 2022/2023 harvest season. The sharp rise in prices on the energy and raw material markets will continue to pose significant challenges for the market.

Overall, earnings visibility remains restricted.

In structural terms, Lenzing expects a continued rise in demand for environmentally friendly fibers in the textile and clothing industry, as well as in the hygiene and medical sectors. Thus, with its “Better Growth” strategy, Lenzing is very well positioned and will continue to drive growth in specialty products, while pursuing its sustainability targets including the transformation from a linear to a circular economy model.

In light of these factors and assuming a further market recovery in the current financial year, the Lenzing Group expects EBITDA in 2023 to be in a range of EUR 320 mn to EUR 420 mn.

NatureWorks, the manufacturer of low-carbon polylactic acid (PLA) biopolymers made from renewable resources, hosted a cornerstone laying ceremony to celebrate construction of their new Ingeo™️ PLA manufacturing complex in Thailand. The ceremony which took place on February 1st, 2023 commemorated the progress made to date on the new fully integrated biopolymer facility. The day also featured a ceremonial groundbreaking that mirrored the ceremony held in Blair, Nebraska, USA in 2000 when NatureWorks began construction on the world’s first commercial scale PLA manufacturing facility.

The new manufacturing facility located on the Nakhon Sawan Biocomplex (NBC) in Nakhon Sawan Province, Thailand is designed to be fully integrated including production sites for lactic acid, lactide, and polymer. With completion expected in the second half of 2024, the manufacturing site will have an annual capacity of 75,000 tons and will produce the full portfolio of Ingeo biopolymer grades.

The expanded global production of Ingeo biopolymer will support growth in markets including 3D printing and hygiene as well as compostable coffee capsules, tea bags, flexible packaging, and food serviceware that demand sustainable, low-carbon biomaterials and require the high-performance attributes that Ingeo is uniquely suited to deliver.

“This ceremony is a meaningful milestone for the entire NatureWorks team,” said Rich Altice, president and CEO of NatureWorks. “For the last three decades, we have not only been building a company and manufacturing facilities, but also a whole new industry and market for low-carbon, renewable biomaterials that are revolutionizing the sustainability and safety of packaging and product materials used in our everyday lives.”

Techtextil India is scheduled to take place between 12 – 14 September, 2023 in Mumbai. The continued support from the Ministry of Textiles demonstrates the huge emphasis laid for this key sector in boosting the economy of the country given the enormous scope to grow rapidly apart from the remarkable opportunities present to do business in India.
 
Techtextil India is the country’s leading trade fair on technical textiles, non-wovens, fibres, yarns and machinery. With almost eight months to go, the three-day business event has received an overwhelming response from various companies who will be seen showcasing their latest solutions and products for key application areas.
 
Commenting on the developments, Mr Raj Manek, Executive Director and Board Member, Messe Frankfurt Asia Holdings Ltd, shared: “We are elated to have received the support from the Ministry of Textiles, Government of India and believe that it will bring in strong value to the technical textiles segment of our trade fair while opening doors to lucrative business engagements for the industry. We are optimistic that it will gain for us a wider reach and increase our credibility among the industry.”
 
The last edition of Techtextil India in November 2021 emerged as a crucial meeting place for the technical textile players. Even though the show happened to be the first post lockdown edition it garnered an attendance of 4,087 visitors due to live demonstration of latest products and technologies from over 150 technical textile brands.

• Third edition of Texhibition Istanbul will take place from 8-10 March 2023 at the Istanbul Expo Center
• Organizers focus on growth: more than 25,000 international visitors are targeted for March 2023
• More than 400 exhibitors show fabrics, yarns and accessories at the Istanbul Expo Center
• Trend seminars and trend area with special focus on sustainability presents the trends for spring/summer 2024

The third edition of Texhibition Istanbul Fabric, Yarn and Textile Accessories Fair, 8-10 March 2023 builds on the successful editions of the fair last year. The fair is organized by the Istanbul Textile Exporters' Association (ITHIB) and with the support of the Istanbul Chamber of Commerce (ICOC).

More than 400 exhibitors from the areas of knitwear, woven fabrics, denim, yarns and accessories will present their 2024 spring-summer collections on 15,000 square meters in the Istanbul Expo Center. These include well-known names such as Kipaş, Bossa, Yünsa, Btd, Çalık, Hefa, İskur, Universal, Gülle, and Migiboy.

At the last event in September 2022, a total of 20,606 visitors took the opportunity to start business discussions and place orders. Among them international visitors from 97 countries, including the EU, UK, USA, North Africa and the Middle East. Over 25,000 visitors are expected at the upcoming Texhibition in March 2023 such as large clothing manufacturers, purchasing managers of international chain stores and department stores, managers of international brands and chains with their own brand collections, managers of online sales platforms, importers, wholesalers, distributors, designers, etc.

The trend area at Texhibition will show the spring-summer 2024 trends with a focus on sustainable aspects.

Texhibition Istanbul completes the IFCO, Istanbul Fashion Connection, which takes place from 8.-11. February 2023, also for the third time at the Istanbul Expo Center.

Price Trends

• The nearby cotton futures contract on the Intercontinental Exchange was down just 1% in December and closed the year at $1.84 per kilogram. A year earlier, the March contract closed at $2.30 per kilogram.  
  
  Cotton futures have been inverted for nearly three years because of supply chain disruptions that prevented normal on-time deliveries of international shipments. With the easing of container shortages and increased sailings, cotton futures are gradually reverting to the normal pattern in which contracts for forward delivery exceed nearby contracts by the cost of insurance, storage and interest between delivery months. The May and July 2023 contracts also finished 2022 at $1.84 per kilogram. In November, the May and July contracts were each several cents per kilogram lower than the March contract.
• The Eastern Market Indicator of prices for fine wool in Australia rose 9% in December to US$9.06 per kilogram. A year earlier, the EMI was $9.66. Australian analysts note that sheep for meat, cattle, and grain production, are competing alternatives for the use of land, and wool prices must continue upward if production is to be maintained in 2023.
• Prices quoted by the Indian Jute Balers Association (JBA) at the end of December converted to US$ fell 2% from a month earlier to an average of 74 cents per kilogram. The decline occurred entirely because of a weakening exchange rate. Prices in Rupee rose marginally. A year earlier, quoted prices averaged 84 cents per kilogram. The 16-percent decline year-on-year was caused about equally by a decline in quoted prices in Rupee and a weakening of the exchange rate.  
  
  The Indian jute industry is almost entirely focused on domestic demand, while half of total demand in Bangladesh comes from exports. Because of shortages of higher quality jute, export prices in Bangladesh are reportedly rising.
  (https://www.wgc.de/en/produkte/jute)
  
  India extended the anti-dumping duty at the end of December on jute and jute products imported from Bangladesh and Nepal for a period of five years. Bangladesh had urged the Indian government not to accept recommendations for extension, while the Indian industry was lobbying to ensure the duty remained in place. The duty rates range from approximately $6 per tonne at current exchange rates for low-quality fibres to $350 per tonne for finished products. The duty was originally imposed in January 2017 and was to expire at the end of 2022.
• Prices of silk in China rose 2% during December to US$28.0 per kilogram. Prices in yuan fell marginally during the month, but the RMB rose 3% against the USD. Prices of textile-grade silk in China were essentially unchanged at the end of 2022 compared with the end of 2021. However, prices closed 2022 about 40% above the average level pre-Covid. https://www.sunsirs.com/uk/prodetail-322.html and  https://businessanalytiq.com/procurementanalytics/index/raw-silk-price-index/ .
• Coconut coir fibre in India quoted in US$ remained in a narrow range, averaging $0.205 per kilogram in December. Prices in Rupee have been stable, and changes in dollar prices reflect changes in the exchange rate.

 
Production
 
World Natural Fibre Production in 2022 is estimated as of early January at 32 million tonnes, approximately one million below production in 2021 and down 900,000 tonnes compared with the estimate in early December.

World cotton production is estimated at 24.2 million tonnes in 2022/23 (August to July), 700,000 tonnes lower than in 2021/22 (ICAC.org). World cotton production rose from 20 million tonnes to 25 million between 2020/21 and 2005/06, but there has been no growth in the nearly two decades since.  
 
World production of jute is forecast down nearly 400,000 tonnes in 2022 because of inadequate rainfall during the harvest period to permit proper retting. Production in India is estimated up by 100,000 tonnes to 1.7 million tonnes, but production in Bangladesh fell by nearly one-third to just one million tonnes.
 
Production of coir, flax and sisal in 2022 are each estimated based on recent trends. Coir and flax have each been trending upward over the past decade, while world sisal production has been largely stable.

World wool production is forecast up 5% in 2022 to 1.09 million tonnes (clean), the highest since 2018. The Australian Wool Production Forecasting Committee issued its third estimate of 2022/23 production in December, keeping the estimate unchanged from September. Above-average rainfall in Australia, and across most of the Southern Hemisphere, is resulting in better pasture conditions and a rebuilding of sheep numbers. Sheep numbers shorn in Australia are climbing from 67 million in 2020/21 to 72 million in 2021/22 and to an estimated 75 million in 2022/23. https://www.wool.com/market-intelligence/wool-production-forecasts/  
 
According to the International Sericulture Commission (https://www.inserco.org/), silk production in China dropped from 170,000 tonnes in 2015 to 53,000 in 2020, with further declines estimated during Covid. Consequently, world silk production dropped from 202,000 tonnes in 2015 to 92,000 in 2020, and estimates of production during 2022 remain below 100,000 tonnes.

• Lenzing again recognized for sustainable sourcing, innovation and transparency
• Lenzing achieves the highest category for the third time already

The Lenzing Group achieved first place in the “Hot Button Ranking” of the Canadian non-profit organization Canopy, thus confirming its leading role in the areas of sustainability and responsible wood and pulp sourcing. Lenzing can also once again celebrate a dark green shirt, synonymous with the highest category.

In this ranking, which receives a lot of attention in the textile and apparel industry, Canopy evaluates the world’s 34 largest producers of cellulosic fibers in terms of their sustainable wood and pulp sourcing, their efforts with regard to the use of alternative raw materials and their achievements in the protection of ancient and endangered forests. Resource preservation is a key element of Lenzing’s corporate strategy and at the core of its innovation agenda. The sustainable production of TENCEL™, VEOCEL™ and LENZING™ ECOVERO™branded specialty fibers is based on these principles.

Promoting the circular economy
With its REFIBRA™ and Eco Cycle technologies, Lenzing offers solutions for transforming the textile and nonwovens industries towards a circular economy. In line with its vision for the circular economy, “We give waste a new life. Every day.” Lenzing is driving the industry toward a full circular economy by striving to give waste a new life in all aspects of its core business and developing circular solutions together with potential partners inside and outside the current value chain. A milestone on this path is the cooperation with the Swedish pulp producer Södra. The two global market leaders, who have been proactively promoting the circular economy in the fashion industry for many years, are joining forces to give the topic a further boost and make a decisive contribution to solving the global textile waste problem by making fibers from post-consumer textiles.

Today, Lenzing offers lyocell fibers made from 30 percent recycled cotton waste. The company aims to launch lyocell, modal and viscose staple fibers with up to 50 percent recycled post-consumer content on a commercial scale by 2025 and to develop a new circular business model by closing the loops for post-consumer waste. By 2025, the company plans to enter into further partnerships with 25 key supply chain companies.

• Record Revenue of US$5,451M, an increase of 23% QoQ and 53% YoY
• Record Reported EBITDA of US$1,010M, up 29% QoQ and 83% YoY
• Reported Net Profit of THB 20.3B, an increase of 44% QoQ and 143% YoY.
• Reported EPS of THB 3.58 (LTM2Q22: 8.11) and Core EPS of THB 2.32 (LTM2Q22:6.16)

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, reported record 2Q22 earnings as the company’s global integrated model continues to benefit from strong consumer trends and management responded effectively to market disruptions.

IVL posted a record Core EBITDA of US$758 million in the second quarter, up 17% QoQ and 59% YoY. Sales revenue rose by about 11% QoQ on a same-store basis, supporting a Core EBITDA margin of 14%. The combination of strong sales and improved margins helped offset higher energy costs in the U.S. and Europe, while management leveraged the company’s leading position in local and regional markets to ensure uninterrupted customer service levels as higher crude oil prices impacted raw materials costs.

Fibers segment posted Core EBITDA of US$55 million, a decrease of 35% QoQ and 15% YoY, as sales declined 11% QoQ. The segment was impacted by lower demand in the Lifestyle vertical amid the China lockdown while higher freight rates restricted exports. The Hygiene vertical was impacted by volumes at Avgol’s Russia site along with increased polypropylene prices, while strength in the replacement tires market partially offset the ongoing semiconductor shortage, resulting in a stable performance for Mobility.

Genomatica (Geno) alongside longtime collaborator Aquafil [ECNL:IM] successfully completed the first demonstration scale production runs for plant-based nylon-6. The material is intended to reshape the $22B nylon industry, enabling brands to meet demand from consumers for sustainable everyday materials from apparel to automotive parts to carpets. Geno and Aquafil have produced the first several tons of plant-based nylon-6 building block caprolactam, have converted it to nylon-6 polymer, and are now in the process of transforming it for evaluation in nylon applications such as yarns for textile and carpet and engineering plastics as part of pre-commercial quantities from demonstration production taking place in Europe.

The companies have been collaborating to first produce pilot-scale quantities of plant-based nylon-6 and have now advanced to produce pre-commercial quantities at demonstration scale which will help determine the final design of future commercial plants. The material will go to leading global brands and their value chain partners who are eager to explore and develop renewable products, create showcase goods and test feedback with customers.

Plant-based nylon-6 is Geno’s third major product line on a path to commercialization. The company has executed high impact deals with a range of brands to accelerate the global commercialization of sustainable materials, with the potential to reduce greenhouse gas emissions by 100 million tons in upcoming years. Recent milestones advancing the sustainable materials transition include: a collaboration with lululemon (NASDAQ: LULU) to bring plant-based materials into lululemon’s products, a production milestone with partner Covestro (OTCMKTS: COVTY) for plant-based HMD used in sustainable coatings, and a partnership with Asahi Kasei (OTCMKTS: AHKSY) and a newly formed venture with Unilever (NASDAQ: UL) to commercialize and scale plant-based alternatives to feedstocks like palm oil or fossil fuels, to make key ingredients used in everyday cleaning and personal care products.