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.

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.

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.

Based on preliminary figures, the CHT Group, a global supplier of specialty chemicals based in Tübingen, demonstrated its resilience and strategic foresight in the 2024 financial year. Despite volatile global conditions, the company recorded sales growth to EUR 614.3 million (+2%) and a significant increase in EBIT to EUR 21.1 million - an increase of EUR 13.4 million compared to the previous year. Growth came primarily from the APAC region (+13.7%), while the markets in EMEA (-2.5%) and the Americas (+0.4%) remained stable.

The clear future course is also evident on the investment side: at 44.2 million euros, the CHT Group invested more than ever before - particularly in the further development of digitalization, expansion of the global production sites and increasing sustainability. In Germany alone, investments amounted to 9.2 million euros, which corresponds to an increase of 124%.

Sustainability as a growth driver
Sustainability is not a trend, but has been an integral part of our corporate strategy for many years. The company is currently developing its Strategy 2030+ and continues to systematically pursue the goal of anchoring sustainability along the entire value chain.

The key sustainability targets include:

• Reduction of specific water and energy consumption by 10% by 2025
• Introduction of an energy management system at all production sites
• Increase the proportion of sales accounted for by sustainable ECO Range products to 80%
• Over 90% of the relevant purchasing volume with sustainably-certified suppliers
• Climate neutrality by 2045, with scientifically validated interim targets of the Science Based Targets initiative (SBTi):
  • Reduction of greenhouse gas emissions Scope 1+2 by 42 % by 2030,
  • Scope 3 by 25 % - CHT is aiming for a reduction of 95 % in all areas by 2045.

The sustainability strategy is based on three central pillars:

1. People – social responsibility, safe working conditions and human rights in the supply chain
2. Planet – environmental and climate protection, resource conservation, circular economy
3. Performance – sustainable products, innovation and economic stability

The globally operating company focuses on sustainable specialty chemicals solutions in markets such as textiles, paints and coatings, construction, automotive, electronics and consumer care.  The CHT Group is a foundation company and part of the Reinhold Beitlich Foundation. Its values - responsibility, innovation and sustainability - are firmly anchored in the corporate culture.

Reinforcement of the management team underlines ambitions
With the appointment of Dr. Christian Rink as CFO in October 2024 and Dr. Lorenza Sartorelli as COO on April 1, 2025, the management team was expanded in a targeted manner. Dr. Christian Rink brings extensive experience from the international foundation company Bosch, while Dr. Lorenza Sartorelli has extensive experience from the international chemicals group Evonik. These are ideal prerequisites for driving forward operational excellence, financial strategy and sustainability transformation.

The Lenzing Group, a provider of regenerated cellulose fibers for the textile and nonwoven industries, continued to improve its business performance in 2024 despite the expected slow market recovery. While Lenzing was able to significantly increase its sales volumes, the price level remained below that of the previous year. Logistics costs have risen significantly, and raw material and energy costs also remained high.

Revenue grew by 5.7 percent year-on-year to EUR 2.66 bn in 2024, mainly reflecting a higher level of revenue generated from fibers (+10 percent). The positive effects of the holistic performance program were the main factor driving the operating earnings trend. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 30.4 percent year-on-year to EUR 395.4 mn in 2024. The EBITDA margin increased from 12.0 percent to 14.8 percent. The operating result (EBIT) amounted to EUR 88.5 mn (compared with minus EUR 476.4 mn in 2023) and the EBIT margin stood at 3.3 percent (compared with minus 18.9 percent in 2023). The result before tax (EBT) amounted to minus EUR 42.0 mn (compared with minus EUR 585.6 mn in 2023).

Outlook
The IMF recently slightly upgraded its growth forecast for 2025 to 3.3 percent, but emphasizes the continued high extent of variation between regions as well as the high level of uncertainty. The latter is mainly due to geopolitical tensions, increasing protectionist tendencies, and a potential return of inflation.

In times of uncertainty, consumers are remaining cautious and thrifty, which is exerting a negative impact on consumer sentiment and on their propensity to spend.

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

In the trend-setting market for cotton, analysts anticipate a slight increase of stock levels to around 18.7 mn tonnes in the current 2024/2025 harvest season, following a reduction of 0.9 mn tonnes in the previous season, according to preliminary estimates.
Earnings visibility remains limited overall.

Lenzing is still ahead of schedule with the implementation of the performance program. The company expects that the measures will also contribute to further earnings improvement in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group expects EBITDA to be higher in 2025 than in the previous year.
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.

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, is preparing for a new era of growth under its IVL 2.0 strategy as it outlined a new approach to partnering with major industry peers, positioning the company to capitalize on significant expansion and consolidation opportunities unlocked by fundamental shifts in global chemical markets.

At the company’s annual Capital Markets Day in Bangkok, Mr. Aloke Lohia, Group CEO of Indorama Ventures, outlined the significant potential for Indorama Ventures—now revitalizing itself under its 3-year IVL 2.0 optimization plan—to resume its growth journey as it pivots towards a future that is being re-shaped by macroeconomic forces such as China’s push for self-sufficiency in manufacturing, the uneven impact of Peak Oil across East and West, and India’s rapid economic expansion. A few days ago, on 26 February, the company posted improved full-year 2024 EBITDA as its focused management executed their plan to transform the business through decisive ‘self-help’ actions amid one of the most severe industry downturns in recent years.

Mr. Lohia told an audience of analysts and investors, “Today, Indorama Ventures is a fitter company than we were when we announced our IVL 2.0 strategy a year ago, and we are now able to compete with the best. Our plan is designed not only to help us re-tool and re-skill to navigate the current downturn—which is expected to persist—but also to restore our historical growth trajectory. As an innately entrepreneurial family business with global scale and deep expertise, we have always been able to take advantage of change to grow our unmatched model and generate increasing shareholder returns. I am excited by new opportunities to substantially expand our business as our industry undergoes seismic, generational shifts and consequently unlocks fresh growth potential.”

IVL 2.0 Progress
At the event, senior executives provided updates on their measures under IVL 2.0 to fortify the business against prevailing market headwinds and set a new course for enhanced, sustainable earnings growth. In a year of alignment, mobilization and launch, all segments recorded improved performances in 2024 as they took concerted management steps to refine their organizations, optimize assets, and transform their business processes through modern data-led toolsets and digital enterprise systems.

Still, in light of continued industry pressures, the company fell short on its deleveraging and cash conversion targets in 2024 and has determined that further management actions are necessary to sustain progress toward the company's objectives, building on the significant measures already taken.

Strategic Growth Plan
Indorama Ventures, as a mature company with more than three decades of successful growth, is fundamentally changing its approach to generating increasing returns as it prepares a next generation of leaders to operate in a vastly different environment. In a departure from the company’s previous M&A-led model, Mr. Lohia outlined several expansion projects currently in the pipeline, all involving complementary strategic partnerships with major industry peers. This new growth approach aims to leverage Indorama Ventures’ unmatched organization, platform, processes, and systems—revitalized under IVL 2.0 and the company’s “indispensable chemistry” brand—to consolidate dominant positions and grow scale in attractive growth markets, including India.

In February, the company bought a minority stake of ~24.9% of EPL Limited, an Indian specialty packaging company and the largest global manufacturer of laminated tubes. The transformation that Indorama Ventures is undertaking under IVL 2.0 provides a critical springboard enabling the new partnerships-led growth model, Mr. Lohia explained.

In addition, Indorama Ventures is planning spin-offs of its Indovinya downstream chemicals segment and its Indovida packaging unit—as flagged a year ago—to enable them to achieve their potential as independent high-growth businesses.

On 19-20 February 2025, social partners from the Italian textile and fashion industry met in Rome to deepen their understanding of the upcoming EU legislations and their impact on the Italian textile industry, as well as to further discuss the next step in their effort for a more broad and effective social dialogue. In the context of the EU co-funded StitchTogether project, which aims at promoting social partnerships in the European Textiles and Clothing Industry, the meeting was also the occasion to draft the Rome Declaration: a joint statement to emphasise the social partners’ strong commitment to work together.

The meeting in Rome brought together representatives of the Italian textile industry, including the Italian employer association (Confindustria Moda), national trade unions (Femca-Cisl, Filctem-Cgil and Uiltec-Uil), regional clusters and companies to discuss the future of the industry. Together, they discussed the proposal for a sectoral industrial policy strategy to present to the Italian Government and the EU Commission for the support, consolidation and development of the textile-clothing supply chain.

The Rome Declaration includes a series of priorities, confirming social partners’ commitment in working together for a more competitive and fair Italian textile industry. The Declaration also calls upon the Italian Government and the European Union to support the upcoming transformation of the textile and clothing industries, technology and skills upgrades, regional development and just transition.

Says Judith Kirton-Darling, IndustriAll Europe's general secretary stated that “the Italian textile industry employs around 300,000 workers, or 24% of the European workforce in the textile and clothing sector, making it the largest in Europe. In a context of numerous challenges for the European textile industry, such as unfair globalization, green and digital transition, social dialogue is a real lever for improving working conditions and job security. We are committed alongside our Italian partners to a resilient and attractive textile industry in Italy”.

Dirk Vantyghem, EURATEX Director General, stressed that “Italy represents 36% of the total European textile and fashion industry; it is critically important therefore to maintain a strong Italian textile industry, which can be a benchmark for other countries. Combining quality, creativity and innovation is the recipe for success. This requires a dynamic company spirit, where employers and employees work hand in hand.”

Advancing Compliance, Quality, and Sustainability in India’s Textile and Leather Sectors: OETI, an internationally accredited testing and certification institute and founding member of the OEKO-TEX® Association, announces its participation in Bharat Tex 2025, New Delhi, from February 14 to 17, 2025.

“Our participation in Bharat Tex reflects OETI’s commitment to the Indian market. As a founding member of OEKO-TEX®, we bring extensive experience to support the growing demand for quality, sustainability, and compliance with international standards by providing advanced testing and certification,” said Vignesh Amalraj, OETI’s Country Manager for India.

What Visitors Can Expect
At Bharat Tex 2025, OETI will showcase solutions tailored to the textile and leather sectors’ needs, focusing on sustainability and compliance:

• EU Sustainability Regulations: Guidance on key EU import regulations, including the Corporate Sustainability Due Diligence Directive (CSDDD), Green Claims Directive, Digital Product Passport (DPP), and others.
• Consumer Safety, Sustainability & Transparency: Leveraging the comprehensive OEKOTEX ® product portfolio to ensure trust and traceability.
• Product Safety: Certification of PPE (personal protective equipment) for placing products on the European markets.
• Testing and certifying: Textiles, floor coverings, interior-design materials and emissions.
• Sustainable Chemical Management: ZDHC-approved training to help brands and manufacturers minimise environmental impact.
• TESTEX Academy: Insights into the online learning platform developed by Swiss-based TESTEX AG, OETI’s parent company, in collaboration with FutureWear Group. The platform covers critical topics like the Circular Economy and the EU Waste Framework. “OETI’s strategy for the Indian market focuses on empowering businesses to meet global standards in compliance, quality, and sustainability, enhancing global competitiveness. By participating in Bharat Tex, and as a founding member of the OEKO-TEX® Association, we aim to help Indian industries navigate complex challenges and deliver transparency and due diligence across the supply chain,” added Dr Miriam Scheffelmeier, OETI’s Global Head of Marketing and Sales.

The undersigned PROs and business associations launched the Textile PRO Forum, a unique voluntary initiative designed to harmonise and share best practices for effective and efficient implementation of the Extended Producer Responsibility for textiles and footwear (Textiles EPR) across Europe.

As Europe prepares for the mandatory separate collection of textile waste and with the revision of the Waste Framework Directive entering its final stage, the EPR schemes have become a cornerstone of the European strategy for sustainability and circularity of textiles.

These EPR schemes and the related PROs will operate differently in each EU Member State, reflecting national legislation, market conditions, and infrastructure. While this diversity reflects local features, it also presents a challenge for efficiency and for businesses which will face the complexity of up to 27 different EPR models for textiles.

The Textile PRO Forum addresses this need by bringing together experienced PROs and national business associations engaged in the implementation of the Textile EPRs. Its mission is to foster collaboration, harmonization, and knowledge-sharing among the Textile EPR Producer Responsibility Organizations (PROs).

Initiated by Refashion, the first PRO for textiles, and by EURATEX, the European Textile and Apparel Confederation, the Textile PRO Forum is coordinated by EURATEX. The initial key activities include the Forum set up and the following strategic workstreams:

• Reduce administrative burden
• Harmonize approaches to implement the eco-modulation fees, set by legislation
• Supporting recycling
• Harmonise framework
• Set up, creation and expansion of PROs

List of the participating organizations

1. Asociación para la Gestión del Residuo Textil y Calzado
2. ATOK
3. Cobat Tessile
4. Comeos
5. Creamoda
6. Danish Fashion & Textile
7. Electrao
8. Erion Textiles
9. EURATEX
10. Fedustria
11. Finnish Textile & Fashion
12. Gesamtverband Textil- und Mode
13. Inretail
14. Modint
15. Reconomy / Redress
16. Recydata
17. Refashion
18. RETEX.Green
19. Retur
20. REFABRIK
21. Stichting Producentenorganisatie UPV Textiel
22. TEKO – Swedish Textile and Fashion Industries

Polartec®, a Milliken™ & Company brand and creator of innovative textile solutions for future thinking, introduces Product, the third and final chapter in Polartec’s multifaceted Beyond Begins Today mini-series.

Beyond Begins Today looks at how Polartec fabrics are made to last, and to be used and enjoyed from one generation to the next and beyond. It explores the innovative monomaterials, repurposed plastic and the plant-based nylon membranes that Polartec uses to set new standards for high performance fabrics; the ambitious climate-related objectives across the entire value chain that exceed existing mandates. Such a holistic strategy allows 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.

Within the rich tapestry of Polartec’s legacy, threads of innovation weave together the past, present, and future. From its humble origins as pioneers of synthetic fleece to bold strides into new realms, Polartec represents the promise of harmony between creation and care; touching lives while honoring the earth.

Product, the final installment of Beyond Begins Today, features Paul Cosgrove (Chief Product Officer, Mammut), Sachiye Koide, (Mountaineer & Product Engineer), and Eric Yung (Managing Director of Polartec). Through a discussion that begins with a reverent nod to the iconic designs of brands like Mammut and the pioneers who wore them, Chapter 3 leads into the soul of the great outdoors. From a celebration of the gear that binds lives to landscapes, and passions to purpose, it looks at a legacy that connects Polartec’s promise to enhance lives to the enduring strength of its textile solutions.