From the Sector

Stahl has published its 2023 Environmental, Social and Governance (ESG) Report. The report outlines Stahl's recent progress on its ESG Roadmap to 2030 and the steps the company is taking to live its purpose of Touching lives, for a better world.

Stahl’s ESG Roadmap to 2030 includes interim targets for 2023, making this a year in which Stahl reached several important milestones. For example, the company reduced its scope 1 and 2 greenhouse gas (GHG) emissions by 22% versus 2022. Furthermore, in 2023 the Science Based Targets initiative (SBTi) validated Stahl's scope 1, 2 and 3 targets, making it one of the first coatings companies on the SBTi-approved list.

To reduce its GHG emissions, Stahl is actively increasing its use of clean energy. At the end of 2023, renewable energy generation, such as solar panels, had been installed at four Stahl sites, compared to its target of three.

Measuring – and reducing – the impact of products is an important step in the company’s scope 3 emissions. As such, 353 Stahl products now have either life cycle assessment (LCA) or product carbon footprint (PCF) data, far exceeding the 2023 target of 50.
 
New ratings and certifications
In 2023, 2,161 of Stahl's products were certified by Zero Discharge of Hazardous Chemicals (ZDHC), in line with ZDHC MRSL V3.1. These products represented 70% of the company’s sales revenue, demonstrating increased demand for coatings with a lower risk to health and the environment.

Stahl was also proud to achieve a Platinum rating from EcoVadis for the second year in a row, which places it in the top 1% of companies evaluated. Stahl also exceeded its 2023 target of an average EcoVadis rating of at least 60/100 for their top ten suppliers, with an average rating of 68/100 reported in December 2023.
Fostering a safe and welcoming work environment

A core pillar of Stahl’s ESG approach is how it supports its employees’ physical and mental well-being. The 2023 ESG Report outlines several examples of this commitment, such as improvement in its key safety KPIs for the third year in a row.

Besides keeping people safe, Stahl continues to make progress in fostering an open and inclusive workplace. For example, in support of diversity, equity and inclusion (DEI), Stahl appointed its first female leadership team member, trained 98% of its staff in DEI and established DEI committees at all Stahl sites. In addition, to strengthen communication, engagement and collaboration across the workforce, Stahl also established an internal workplace hub, MyStahl.

Stratasys Ltd. published its second Mindful Manufacturing™ ESG and Sustainability Report in accordance with the Global Reporting Initiative (GRI) standards, fulfilling its commitment to transparency. The report includes an extensive overview of activities and advancements in Stratasys’ environmental, social and governance (ESG) programs.

Some highlights of the Mindful Manufacturing ESG and Sustainability report, by category, include:

Environmental

• Stratasys reduced water intensity by 32.5 percent across global operations, leading to an overall reduction in water usage by the company.
• Solar panels installed at Israeli facilities generated 441,339 kWh of renewable energy, which contributed to 207 metric tons of reduced CO2 emissions, or the equivalent of planting 3,423 trees
• Double digit (11.3 percent) increases in the number of spools, cartridges and canisters recycled through a new recycling program.

Social

• More than 38,000 hours of employee training were provided, equaling 18 hours of training per employee.
• Approaching world-class status with employee engagement, with a 78 percent participation rate in the last all-employee survey, with an all-time high engagement score of 73.
• 81 percent of managers participated in management training.
• 4 diversity KPIs were set in 2022, focusing on hiring practices. Targets were:
• 100 percent of candidate slates for manager and above will have a diverse slate
• 35 percent of management hires will be women
• 25 percent of tech hires will be women
• 40 percent of intern/student hires to reflect a range of ethnicity and gender diversity.

Governance

• 100 percent of new suppliers in 2021 and 2022 signed the Supplier Code of Conduct, which includes environmental, social and ethical standards.
• More than 97% of all employees completed compliance training.
• No product-related health and safety incidents of non-compliance occurred in 2021 or 2022.

At the upcoming SaigonTex, taking place from April 10th to 13th in Ho Chi Minh City, the KARL MAYER GROUP will present its innovations.

DThe KARL MAYER exhibition for warp preparation is entirely dedicated to sustainability. With BLUEDYE, an innovative machine is introduced, which ensures more sustainability and lower costs in the process of indigo dyeing. Thanks to innovative technological solutions, the amounts of water and chemicals used are significantly reduced. Additionally, less yarn waste is generated. Another innovation for more sustainability is CASCADE, a steam and condensation system that requires significantly less steam in the drying process of sizing and indigo dyeing plants by using a solution for energy recycling that is protected against imitation.

For the warp knitting sector, the group of companies presents its latest technological developments. Highlights include a digital solution from KM.ON for optimizing production management (DPM), innovations for enhancing performance in the HKS segment, and a double raschel machine that enables unique creative multi-color designs in spacer textiles with more colour and new Jacquard techniques.

"Vietnam is a growing market for textile production, which is gaining importance especially for major international sports brands," says Eddy Ho, Senior Sales Manager at KARL MAYER.
The sales professional expects a large number of visitors, especially from Vietnam, China, Taiwan, and South Korea. SaigonTex is one of the most important textile machinery exhibitions in East Asia, located in close proximity to production centres. Vietnam is, in turn, the second most important market for the KARL MAYER GROUP after China. It benefits from increasing foreign direct investments in textile production from China, Taiwan, and South Korea.

A new €26 million manufacturing plant with its own forest has been opened by AkzoNobel in Faisalabad – the company’s largest investment in Pakistan to date.

The 25-acre site, which has facilities for making decorative paint, wood finishes, automotive and specialty coatings, coil coatings and protective coatings, will help to meet increasing customer demand across a variety of markets.

Also incorporated into the Faisalabad location is a forest spanning an area of 5,450 square feet. More than 1,400 native trees and shrubs – planted using the Japanese Miyawaki gardening technique – are expected to grow into a flourishing self-sustaining ecosystem over the next two years.

The site, which employs nearly 200 people, has been constructed to comply with the company’s strict environmental standards and includes a series of sustainability features, such as renewable energy generation and energy efficient design.

At the PERFORMANCE DAYS Functional Fabric Fair in Munich on 20 and 21 March 2024, CHT will present its latest sustainable textile technologies with a focus on dyeing and effect chemicals.

These products are used to finish textiles with special functions such as water repellency, breathability and efficient moisture transport. Significant amounts of water and energy can be saved during the dyeing and finishing process, resulting in a lower CO2 footprint.

In addition to effect chemicals, CHT will be presenting its dyeing products with a focus on the use of bio-based, biodegradable and recycled materials to support the circular economy.

Eltex of Sweden, a pioneer in the adoption of electronic sensors by the weaving machinery industry, is marking its 60th anniversary this month.

The electronic detection of broken or missing weft yarns during production was the problem Eltex founders Åke Rydborn and Ragnar Henriksson set out to solve with the development of the world’s first electronic weft-stop-motion. Its potential was recognised on its introduction at the 1963 ITMA exhibition in Hannover, Germany, leading to the foundation of the company in a modest 12-square-metre workshop in Älmhult, Sweden, in February 1964.

By 1968 the company was operating from a modern 3,000-square-metre plant and beginning to establish a global presence, introducing the first all-in-one printed circuit board (PCB) for its sensor systems in 1971. As exports increased, further Eltex operations were established in the USA and Ireland and the company expanded its product range including energy control devices, temperature and humidity loggers, food handling safety systems, and military grade battery chargers. Further textile milestones in parallel to advances in weaving technology included optical arrival detectors for air-jet weaving machines at the beginning of the 1980s, and the QTV system for warp preparation, which introduced digital stop-motion control to the industry at the start of the 1990s. In 2009, the company branched out into carpet tufting, first with the CoTS clamp-on tube sensor for tufting machines, followed by the Compact sensor for tufting machines in 2013. In 2019 the Compact II further cemented the company’s position in this sector.

Newly developed Eltex EyETM and ACT-R
Most recently, Eltex has launched the Eltex EyETM system for the monitoring of yarn tension on warp beams. Not only does it eliminate problems when warping, but also in the subsequent weaving or tufting processes. Eltex EyETM monitors the yarn tension on all positions in real-time and a minimum and maximum allowable tension value can be set. If any yarn’s tension falls outside these values the operator can be warned or the machine stopped.

The Eltex ACT and ACT-R units meanwhile go beyond yarn tension monitoring to actually control yarn tension. This extends the application range greatly. The plug and play system automatically compensates for any differences in yarn tension that arise, for example from irregularities in yarn packages.

Eltex has been owned by Brian Hicks, Seamus O’Dwyer and Jonathan Bell since 2007, following a management buy-out and the subsequent formation of Eltex Global Holdings in Ireland. Today, its head office, Eltex of Sweden AB, is in Osby, Sweden where it provides research and development, administration and global sales for the group. Eltex Manufacturing in Ireland is now the group’s primary production facility and Eltex US, Inc. provides sales and service for North America.

Many end-users now expect recycled materials to be in textile products they purchase – and this is driving innovation throughout the industry. However, there are still many technical and economic issues facing yarn and fabric producers using recycled resources. Members of the Swiss Textile Machinery Association offer some effective solutions to these challenges.

Synthetic recycled materials such as PET can usually be treated similarly to new yarn, but there are additional complexities where natural fibres like wool and cotton are involved. Today, there’s a trend towards mechanically recycled wool and cotton fibres.

Spinning recycled cotton
The use of mechanically recycled fibres in spinning brings specific quality considerations: they have higher levels of short fibres and neps – and may often be colored, particularly if post-consumer material is used. It’s also true that recycled yarns have limitations in terms of fineness. The Uster Statistics 2023 edition features an extended range of fibre data, supporting sustainability goals, including benchmarks for blends of virgin and recycled cotton.
In general, short fibres such as those in recycled material can easily be handled by rotor spinning machines. For ring spinning, the shorter the fibres, the more difficult it is to guide them through the drafting zone to integrate them into the yarn body. Still, for wider yarn counts and higher yarn quality, the focus is now shifting to ring spinning. The presence of short fibres is a challenge, but Rieter offers solutions to address this issue.

Knitting recycled wool
For recycling, wool fibres undergo mechanical procedures such as shredding, cutting, and re-spinning, influencing the quality and characteristics of the resulting yarn. These operations remove the natural scales and variations in fibre length of the wool, causing a decrease in the overall strength and durability of the recycled yarn. This makes the yarn more prone to breakage, especially under the tension exerted during knitting.

Adapting to process recycled materials often requires adjustments to existing machinery. Knitting machines must be equipped with positive yarn suppliers to control fibre tension. Steiger engages in continuous testing of new yarns on the market, to check their suitability for processing on knitting machines. For satisfactory quality, the challenges intensify, with natural yarns requiring careful consideration and adaptation in the knitting processes.

From fibres to nonwovens
Nonwovens technology was born partly from the idea of recycling to reduce manufacturing costs and to process textile waste and previously unusable materials into fabric structures. Nonwovens production lines, where fibre webs are bonded mechanically, thermally or chemically, can easily process almost all mechanically and chemically recycled fibres.

Autefa Solutions offers nonwovens lines from a single source, enabling products such as liners, wipes, wadding and insulation to be produced in a true closed loop. Fibres are often used up to four times for one product.

Recycling: total strategy
Great services, technology and machines from members of Swiss Textile Machinery support the efforts of the circular economy to process recycled fibres. The machines incorporate the know-how of several decades, with the innovative power and quality standards in production and materials.
Stäubli’s global ESG (environmental, social & governance) strategy defines KPIs in the context of energy consumption, machine longevity and the recycling capacity in production units worldwide, as well in terms of machinery recyclability. The machine recyclability of automatic drawing in machines, weaving systems and jacquard machines ranges from 96 to 99%.

“From Earth to Earth”: The new plan defines goals and concrete actions in Environmental, Social and Governance (ESG) areas to foster value creation for all stakeholders and put new sustainability regulatory requirements at the centre of attention.

A project, designed to enhance RadiciGroup's transparency and commitment to develop a responsible business along its entire value chain from an economic, social and environmental perspective and focus on the ever more widespread and stringent sustainability regulatory requirements. These are the features and goals of the Sustainability Plan presented by the Group and called "From Earth to Earth", precisely to emphasize the intent to focus on the Earth and future generations.

In the context of a complex and constantly changing scenario, the Group has therefore decided to capitalize on the goals achieved and look beyond them with a plan defining the medium-term targets and the actions to be taken to fulfil them and covering all areas considered to be "material”, i.e., relevant from the point of view of ESG and financial risks, opportunities and impacts. Indeed, the ultimate goal of "From Earth to Earth" is to support business continuity and the growth of the company and all its stakeholders.

The project was the result of a multi-year collaboration with Deloitte, which contributed an external and objective viewpoint on the definition of the material targets and themes. However, it was not an armchair exercise, but the result of an extensive listening process involving internal and external stakeholders, all of whom were sustainability experts who helped define a shortlist of strategic themes for both the Group and its main stakeholders. These issues were then analysed in detail using working tables on the different themes to identify the objectives in Environmental, Social and Governance areas and the related concrete actions needed to achieve them, in line with the European decarbonization and energy transition policies and the
United Nations Sustainable Development Goals, a global blueprint for sustainable growth.

In particular, RadiciGroup’s environmental goals include: a 20% increase and differentiation in renewable source electricity consumption, an 80% reduction in total direct greenhouse gas emissions by 2030 compared to 2011, attention to water consumption to limit the impact on local communities and biodiversity, the extension of Life Cycle Assessment (LCA) methodology to measure the environmental impact of 70% of the products (in terms of weight) manufactured by the entire Group, collaboration among the various actors in the supply chain from an ecodesign perspective and the search for increasingly more sustainable and circular packaging solutions.

Archroma has made its AVITERA® SE technology accessible to more brands and mills with the launch of AVITERA® SE GENERATION NEXT for more cost-effective sustainable dyeing of cellulosic fibers and blends.

With an improved cost-to-performance ratio for new dark and extra-dark shades, the AVITERA® SE GENERATION NEXT range helps mills produce differentiated end articles that comply with the environmental requirements of leading brands and retailers while increasing yield, improving productivity and reducing processing costs.

With high-speed low-temperature wash-off, high process reliability and great reproducibility, AVITERA® SE Generation Next allows mills to achieve water and energy savings of up to 50% and to slash CO₂ emissions and effluent discharge by up to 50% as well. It can also increase mill output by up to 25% or more. The dyes are free from arylamines, including PCA^[1], and offer fastness properties, retaining their colors through repeated home laundering and exposure to light, perspiration and chlorine.

Three new dark colors have been added to the AVITERA® SE range:

• AVITERA® BLACK PEARL SE: A greenish-cast black dye with high color consistency that can be used to correct metamerism.
• AVITERA® BLUE HORIZON SE: A deep blue element with good light fastness in medium to deep shades, as well as high oxidative fastness and high resistance to nitrogen oxides (NOx) in the atmosphere.
• AVITERA® NIGHT STORM SE: A new navy shade with a greenish cast and strong build up. It is recommended for dyeing the deepest navy and combination shades.

^[1] Non-detectable on the garment

• EBITDA of around EUR 300 million expected for 2023
• Non-cash impairment losses of up to EUR 480 million
• Implementation of the performance program fully on track

The annual valuation of assets in accordance with IFRS for the entire Lenzing Group both nationally in Austria and internationally, has resulted in a projected asset impairment of up to EUR 480 million for the 2023 financial year.¹ The reasons for the impairment requirements are, on the one hand, continued uncertainties in the economic environment and, on the other hand, still increased raw material and energy costs as well as a higher interest rate environment.

The impairment losses are non-cash effective and have no impact on the full-year EBITDA for 2023, but do affect EBIT for the 2023 financial year. The Managing Board is specifying the previous earnings forecast for the 2023 financial year (EBITDA: EUR 270 – 330 million) and expects an EBITDA of around EUR 300 million.

Stephan Sielaff, Chief Executive Officer of the Lenzing Group: “In the third quarter of 2023, we responded to the persistently difficult market environment and launched a comprehensive performance program, which we have been consistently implementing since then with a focus on positive free cash flow and stronger sales and margin growth. We can therefore confirm our earnings forecast with an EBITDA of around EUR 300 million. The valuation adjustment in accordance with IFRS does not change the strategic orientation of the Lenzing Group.”

Nico Reiner, Chief Financial Officer, adds: “The implementation of the performance program is going according to plan. In the future, cost measures alone are expected to contribute more than EUR 100 million to earnings annually, of which more than EUR 50 million will already be effective for the 2024 financial year. We are on target, particularly in terms of strengthening free cash flow, and we also achieved positive free cash flow in the fourth quarter. The revaluation of assets is now consistent and the right step for the future direction.”

The 2023 annual results will be presented on March 15, 2024.
 

¹ Subject to potential changes resulting from the ongoing financial audit