From the Sector

• More than 30 leading pioneers of the chemical and material sector welcome the latest political papers from Brussels, Berlin and Düsseldorf

The political situation for renewable carbon from biomass, CO2 and recycling for the defossilisation of the chemical and materials industry has begun to shift fundamentally in Europe. For the first time, important policy papers from Brussels and Germany take into consideration that the term decarbonisation alone is not sufficient, and that there are important industrial sectors with a permanent and even growing carbon demand. Finally, the need for a sustainable coverage of this carbon demand and the realisation of sustainable carbon cycles have been identified on the political stage. They are elemental to the realisation of a sustainable chemical and derived materials industry.

The goal is to create sustainable carbon cycles. This requires comprehensive carbon management of renewable sources, which includes carbon from biomass, carbon from Carbon Capture and Utilisation (CCU) – the industrial use of CO2 as an integral part – as well as mechanical and chemical recycling. And only the use of all alternative carbon streams enables a true decoupling of the chemical and materials sector from additional fossil carbon from the ground. Only in this way can the chemical industry stay the backbone of modern society and transform into a sustainable sector that enables the achievement of global climate goals. The Renewable Carbon Initiative’s (RCI) major aim is to support the smart transition from fossil to renewable carbon: utilising carbon from biomass, CO2 and recycling instead of additional fossil carbon from the ground. This is crucial because 72% of the human-made greenhouse gas emissions are directly linked to additional fossil carbon. The RCI supports all renewable carbon sources available, but the political support is fragmented and differs between carbon from biomass, recycling or carbon capture and utilisation (CCU). Especially CCU has so far not been a strategic objective in the Green Deal and Fit-for-55.

This will change fundamentally with the European Commission's communication paper on “Sustainable Carbon Cycles” published on 15 December. The position in the paper represents an essential step forward that shows embedded carbon has reached the political mainstream – supported by recent opinions from members of the European parliament and also, apparently, by the upcoming IPCC assessment report 6. Now, CCU becomes a recognised and credible solution for sustainable carbon cycles and a potentially sustainable option for the chemical and  material industries. Also, in the political discussions in Brussels, the term “defossilation” is appearing more and more often, complementing or replacing the term decarbonisation in those areas where carbon is indispensable. MEP Maria da Graça Carvahlo is among a number of politicians in Brussels who perceive CCU as an important future industry, putting it on the political map and creating momentum for CCU. This includes the integration of CCU into the new Carbon Removal Regime and the Emission Trading System (ETS).

As the new policy documents are fully in line with the strategy of the RCI, the more than 30 member companies of the initiative are highly supportive of this new development and are ready to support policy-maker with data and detailed suggestions for active support and the realisation of sustainable carbon cycles and a sound carbon management. The recent political papers of relevance are highlighted in the following.

Brussels: Communication paper on “Sustainable Carbon Cycles”
On 15 December, the European Commission has published the communication paper “Sustainable Carbon Cycles” . For the first time, the importance of carbon in different industrial sectors is clearly stated. One of the key statements in the paper is the full recognition of CCU for the first time as a solution for the circular economy, which includes CCU-based fuels as well. The communication paper distinguishes between bio-based CO2, fossil CO2 and CO2 from direct air capture when addressing carbon removal and it also announces detailed monitoring of the different CO2 streams. Not only CCU, but also carbon from the bioeconomy is registered as an important pillar for the future. Here, the term carbon farming has been newly introduced, which refers to improved land management practices that result in an increase of carbon sequestration in living biomass, dead organic matter or soils by enhancing carbon capture or reducing the release of carbon. Even though the list of nature-based carbon storage technologies is non-exhaustive in our view, we strongly support the paper’s idea to deem sustainable land and forest management as a basis for the bioeconomy more important than solely considering land use as a carbon sink. Surprisingly, chemical recycling, which is also an alternative carbon source that substitutes additional fossil carbon from the ground (i.e. carbon from crude oil, natural gas or from coal), is completely absent from the communication paper.

Berlin: Coalition paper of the new German Government: “Dare more progress – alliance for freedom, justice and sustainability”
The whole of Europe is waiting to see how the new German government of Social Democrats, Greens and Liberals will shape the German climate policy. The new reform agenda focuses in particular on solar and wind energy as well as especially hydrogen. Solar energy is to be expanded to 200 GW by 2030 and two percent of the country's land is to be designated for onshore wind energy. A hydrogen grid infrastructure is to be created for green hydrogen, which will form the backbone of the energy system of the future – and is also needed for e-fuels and sustainable chemical industry, a clear commitment to CCU. There is a further focus on the topic of circular economy and recycling. A higher recycling quota and a product-specific minimum quota for the use of recyclates and secondary raw materials should be established at European level. In the coalition paper, there is also a clear commitment to chemical recycling to be found. A significant change for the industry is planned to occur in regards to the so-called “plastic tax” of 80 cents per kilogram of non-recycled plastic packaging. This tax has been implemented by the EU, but most countries are not passing on this tax to the manufacturers and distributors, or only to a limited extent. The new German government now plans to fully transfer this tax over to the industry.

Düsseldorf: Carbon can protect the climate – Carbon Management Strategy North Rhine-Westphalia (NRW)
Lastly, the RCI highly welcomes North Rhine-Westphalia (NRW, Germany) as the first region worldwide to adopt a comprehensive carbon management strategy, a foundation for the transformation from using additional fossil carbon from the ground to the utilisation of renewable carbon from biomass, CO2 and recycling. For all three alternative carbon streams, separate detailed strategies are being developed to achieve the defossilisation of the industry. This is all the more remarkable as North Rhine-Westphalia is the federal state with the strongest industry in Germany, in particular the chemical industry. And it is here, of all places, that a first master plan for the conversion of industry from fossil carbon to biomass, CO2 and recycling is implemented. If successful, NRW could become a global leader in sustainable carbon
management and the region could become a blueprint for many industrial regions.

The new claim “Crafted Elegance” embodies Bemberg™’s values of preciousness, uniqueness, quality and refined aesthetic blended with innovation and responsible values. In 2021 Bemberg™ celebrates nine decades of commitment to deliver true timeless beauty, style and touch thanks to its responsible innovation heritage and soul. And today it relaunches a new gender aesthetics that speaks about contemporary values of transparency, inclusivity and sustainability.
 
Bemberg™ is all about joyful comfort, premium values delivering an unparalleled wellbeing. It’s the one-of-a-kind material that offers design, beauty, innovation and responsibility all at once.

Its heritage talks about premium high-quality lining for formal and sportswear, but the contemporary and worldwide journeys and designers’ cooperation are talking about fashion, outerwear, innerwear dedicated to contemporary consumers.
 
Bemberg™ by Asahi Kasei is the brand name of the regenerated cellulose fiber made from the smart tech transformation of cotton linters - short downy fiber enfolding cotton seeds. It is pre-consumer materials obtained from manufacturing process of cotton oil that are converted through a traceable and transparent closed loop process, taking place in Nobeoka, Japan, the only plant producing Bemberg™ at worldwide level. So, the Bemberg™ DNA is really based on a circular economy approach.

Bemberg™ fiber is the key ingredient of some of the most cutting-edge design innovations on planet Fashion, proving to be a sustainable, responsible and innovative material.

The Bemberg™’s 90th anniversary signs also another important moment for the company. Mr. Koji Hamada is appointed as new CEO of Asahi Kasei Fibers Italia. Mr. Hamada has a strong connection to the Italian market having already spent more than 5 years in the Gallarate’s headquarter working in close contact with all partner of the territory.

US Vice President Kamala Harris announced significant multimillion-dollar investments by Parkdale Mills and six other companies today, as part of the Administration’s Call to Action to the private sector to promote economic opportunity in the region, as her office works to address the root causes of migration.

Vice President Harris, who is overseeing diplomatic efforts with El Salvador, Guatemala, Honduras, and Mexico, announced several private sector commitments to strengthen economic opportunities in the Northern Triangle and made remarks at a White House roundtable, which included Anderson Warlick, Chairman and CEO of Parkdale Mills. The textile and apparel co-production chain is one of the most essential supply chains for employment and economic development in both the United States and the Northern Triangle region, currently supporting over 1 million jobs in the United States and the Central American region. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and its strong rules of origin are the primary reasons this co-production chain exists, which is seeing significant growth this year.

North Carolina-headquartered Parkdale Mills, one of the largest manufacturers of spun yarn and cotton consumer products in the world, will make a multimillion-dollar investment in a new yarn spinning facility in Honduras and make an additional substantial investment to support existing operations in Hillsville, Virginia. This investment will help customers shift 1 million pounds of yarn per week away from supply chains in Asia and China and enhance U.S. and CAFTA-DR co-production resilience and increase regional product offerings. Parkdale’s announced investment will create hundreds of jobs in Honduras and further support hundreds of employees in Parkdale’s Hillsville operations.  

Recently, administration officials from the U.S. Trade Representative’s office and the Vice President’s office met with the U.S. textile industry to reaffirm the importance of rules of origin in nearshoring production chains, helping address labor and environmental challenges and mitigating supply chain risk.

“I would like to sincerely thank Vice President Harris for making this announcement and leading the effort with private industry to create more economic opportunities in northern Central America and the United States,” said Anderson Warlick, Chairman and CEO of Parkdale Mills. “Parkdale’s investments will support good paying jobs in the United States and in the Central American region and significantly increase our extensive product offering and capacity, including the production of sustainable specialty yarns.

Parkdale sees an enormous opportunity for brands and retailers to re-shore and nearshore production supply chains and double the size of U.S.-CAFTA-DR trade, because of the rules of origin in our trade agreement and a shift in sourcing by brands and retailers mitigating their supply chain sourcing risks.  We are excited about what this opportunity means for jobs in the U.S. and the region for this critical production chain and couldn’t be more thrilled to be part of this effort.  We look forward to working with the Vice President and her team on strengthening the textile and apparel production chains in the U.S. and region.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas, said, “This is an exciting and important announcement by Parkdale and Vice President Harris. Our industry has invested billions of dollars in the U.S. and in the region as a result of the investment-based rules of origin in the CAFTA-DR agreement, which ensures the job benefits of the agreement are reserved for the parties to the agreement.  Additional substantial announcements on further investment in textile and apparel production are expected soon.

As brands and retailers are seeking more environmentally sustainable, vertically integrated, transparent, and quick turnaround supply chains, our collective industries stand ready to work with companies that are seeking to mitigate sourcing strategies as Asian supply chains have faced enormous production constraints.  Further verticalization in the industry, like Parkdale’s announcement today, allows broader product diversification and grows jobs across the textile and apparel production chain.

We are thrilled with today’s announcement because it is a win-win for American and Central American workers and our environment and a huge opportunity to further recalibrate supply chains out of China and Asia. This valuable co-production chain between the U.S. and the CAFTA-DR region accounts for $12 billion in two-way trade and billions of dollars of investment. Significant growth is occurring in our sector and is expected to continue as supply chains continue to recalibrate.  We are delighted about this today’s announcement and appreciate the Administration’s strong support.”

Microplastic pollution is a global challenge across many industries and sectors – one of critical importance being textiles.

A 2021 study by the California Ocean Science Trust and a group of interdisciplinary scientists acknowledges that microfibres from textiles are among the most common microplastic materials found in the marine environment. Every time synthetic clothes are manufactured, worn, washed, or disposed of, they release microplastics into terrestrial and marine environments, including human food chains. Synthetic fibres represent over two-thirds (69%) of all materials used in textiles, a proportion that is expected to rise to 73% by 2030. The production of synthetic fibres has fuelled a 40-year trend of increased per capita clothing consumption.

Global textile consumption has become:

• more reliant on non-renewable resources,
• less biodegradable, and
• increasingly prone to releasing microplastics.

The increased consumption is also discretionary, driven by consumer desire and remains unchecked. Thus, the long-term trend in the textile industry parallels the intentional addition of microplastics to products such as cosmetics. The contrast is that the European Chemicals Agency (ECHA) has recommended such intentional additions be restricted, whereas the over-consumption of synthetic fibres continues unchecked. One way for the EU to account for and mitigate microplastic pollution is through an EU-backed methodology measuring and reporting microplastic emissions, so that consumers and procurement officers have the information needed to minimise microplastic pollution resulting from their purchasing decisions.

There is a critical opportunity to address microplastic pollution in the fashion textile industry through the EU Product Environmental Footprint (PEF) methodology. To meet the environmental objectives of the Circular Economy Action Plan, the EU is proposing that companies substantiate their products’ environmental credentials using this harmonised methodology. However, microplastic pollution is not accounted for in the PEF methodology. This omission has the effect of assigning a zero score to microplastic pollution and would undermine the efforts of the European Green Deal, which aim “to address the unintentional release of microplastics in the environment.”

The incorporation of microplastic pollution as an indicator would increase the legitimacy of the PEF method as well as better inform consumer purchasing decisions, especially as the European Green Deal seeks to “further develop and harmonise methods for measuring unintentionally released microplastics, especially from tyres and textiles, and delivering harmonised data on microplastics concentrations in seawater.”

Whilst we continue to learn about the damage of microplastics and there is new knowledge emerging on the toxic impacts along the food chain, there is sufficient information on the rate of microplastic leakage into the environment to implement a basic, inventory level indicator in the PEF now. This is consistent with the recommendations of a review of microplastic pollution originating from the life cycle of apparel and home textiles. There are precedents in PEF for basic level (e.g., ‘resource use, fossils’) and largely untested (e.g. land occupation and toxicity indicators) indicators, and therefore an opportunity for the EU to promote research and development in the measurement and modelling of microplastic pollution by including such emissions in the PEF methodology. For such an indicator, the long and complex supply chains of the apparel and footwear industry would be a test case with high-impact and a global reach.

Black Friday is known as the world's largest shopping event, which is constantly growing in size. Rather than offering highly promoted sales, a Finnish clothing company Pure Waste joined forces with HelsinkiMissio, an NGO battling loneliness in Finland. On Black Friday, instead of buying clothes anyone can donate a friend to people suffering from loneliness.

A Global survey shows that over a third of adults experience feelings of loneliness worldwide. Many who feel lonely try to cope by shopping, which in fact has been proven to aggravate loneliness and can even cause feelings of depression.¹

This is why HelsinkiMissio, a Finnish NGO battling loneliness, and Pure Waste, a Finnish clothing manufacturer, joined forces on Black Friday. All Pure Waste’s products on their webstore have been replaced with a chance to donate for HelsinkiMissio’s important work against loneliness.

“Black Friday is known as the biggest commercial event, but for lonely people it can actually be the darkest day of the year. This is why we wanted to shed light on this issue precisely today. We hope that together with Pure Waste we’re able to raise awareness on the issue and furthermore help lonely people”, says Tuula Colliander, Executive Director from HelsinkiMissio.

Black Friday stunt is executed together with Pure Waste, a Finland-based clothing manufacturer that has never taken part to Black Friday due to their values. The company, also known as a pioneer in textile recycling, makes its clothing from 100% recycled cotton, utilizing cutting waste from the textile industry.

¹ Pieters, Rik: Bidirectional Dynamics of Materialism and Loneliness: Not Just a Vicious Cycle. Journal of Consumer Research Volume 40, Issue 4, 1 December 2013, Pages 615–631.

•  14 million for the Rhenish coal region

Shaping economic change in the Rhenish textile and coal region together with artificial intelligence (AI) - this is the goal of the WIRKsam competence centre launched at the beginning of November. The joint project, funded by the Federal Ministry of Education and Research, is researching innovative forms of work to secure employment, create attractive jobs and strengthen regional companies.
 

With a focus on the strengths of the Rhenish mining area, WIRKsam is to establish itself as a central point of contact and align various scientific institutions and their research specifically to the challenges of the regional working world. Funded by the BMBF with 14 million euros over five years, the project is fundamentally about transferring scientific findings into company practice and into the wider society. After the funding phase, the centre of excellence will continue to work independently.

Prospects: Attractive jobs in the lignite mining region
The region on the left bank of the Rhine is not only a lignite mining area, but also a historically grown textile region where technical textiles are produced today, for example for medical technology or plant and vehicle construction. This offers valuable future prospects for the employees affected by the lignite phase-out.

Against this background, the aim of the WIRKsam centre of excellence is to research the extensive possibilities of artificial intelligence for shaping the future world of work and to transfer them to companies. AI applications are used to develop innovative work and process flows to create attractive workplaces and increase the competitiveness of local companies.

Together: business and science
The special feature: research institutions and companies from the Rhenish textile industry and related sectors work together in the centre of excellence. Research partners are the Institut für Textiltechnik (ITA) of RWTH Aachen University and the Institute for Mobile Autonomous Systems and Cognitive Robotics (MASCOR) of FH Aachen University of Applied Sciences, headed by ifaa - Institut für angewandte Arbeitswissenschaft e.V. (Institute for Applied Work Science).

Nine regional companies are involved so far; more will join. AI applications are being developed and exemplarily implemented for their respective needs. In this way, the diverse potentials of AI for work design are being tested and qualification requirements derived. These results will not only increase the global competitiveness of the textile industry and other sectors; they will also secure jobs and make an important contribution to overcoming structural change in the Rhenish lignite mining area.

WIRKsam is funded by the Federal Ministry of Education and Research as part of the funding measure "Regional Competence Centres for Labour Research" and is supervised by the Karlsruhe Project Management Agency (PTKA) (funding code: 02L19C600). The WIRKsam competence centre will be based in Hürth, Germany, on the edge of the Rhenish mining area as soon as the conversion work on the former TV studios on the Euronova campus is completed.

• Sales increase 8.8% to €743.5 million compared to the same period of the previous year
• EBITDApre improves by 59.1% to €108.5 million
• Despite burdens from higher raw material and energy prices, stable revenue and earnings expected for Q4 2021

Following consolidated sales of €241.5 million in Q1 2021 and €255.2 million in Q2 2021, Q3 2021 confirms SGL Carbon's encouraging sales performance with €246.8 million. Due to increasing demand from almost all market segments, Group sales increased to a total of €743.5 million in the first nine months of the fiscal year (9M 2020: €683.5 million). This corresponds to an increase of 8.8% compared to the same period of the previous year.

Almost all business units contributed to the positive sales development. As largest business unit with a 44.7% share of Group sales, Graphite Solutions (GS) contributed €332.7 million to Group sales in the first nine months of 2021 (9M 2020: €308.0 million). The sales increase of 8.0% is based in particular on the positive development of the important market segments Semiconductor & LED as well as Automotive & Transportation. The business units Carbon Fibers and Composite Solutions contributed €244.7 million (9M 2020: €223.4 million) and €92.1 million (9M 2020: €60.7 million), respectively, to Group sales and benefited primarily from increased demand from the automotive industry. Compared to the previous year, sales increased by 9.5% in Carbon Fibers and by 51.7% in Composite Solutions. Only the Process Technology business unit, with sales down 4.9% to €62.1 million, was not yet able to participate in the general economic upward trend.

See the attached document for more infomation.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement welcoming House passage of a bipartisan infrastructure bill that will provide billions of dollars in new spending to revitalize the nation’s roads, bridges and railways and help reconstitute a domestic supply chain for face masks, isolation gowns and other personal protective equipment (PPE).

“We commend the House for getting the bipartisan infrastructure bill across the finish line today, and we are pleased the legislation will now go to President Biden for his signature. This is the first step in a long-term strategy that is critically needed to permanently onshore PPE production to ensure our nation is prepared for the next health security crisis,” said NCTO President and CEO Kim Glas. “This infrastructure package will help incentivize the reshoring of PPE production by guaranteeing long-term federal contracts and expanding Berry Amendment rules to more federal agencies’ purchases of PPE products, important priorities of the U.S. textile industry.”

NCTO worked with congressional allies to include a version of the Make PPE in America Act, legislation co-sponsored by Senator Rob Portman (R-OH) and Senator Gary Peters (D-MI), in the infrastructure legislative package. The bill ensures all PPE purchased by the Departments of Homeland Security, Health and Human Services and Veterans Affairs are Berry Amendment-compliant (containing 100 percent domestic content); guarantees long-term contracts (a minimum of two years) to U.S. manufacturers; and creates a tiered preference for PPE made in the Western Hemisphere by our free trade partners using U.S. components, after domestic manufacturing capacity has been maximized.

Penn Textile Solutions GmbH is one of the world's leading manufacturers of elastic fabrics for under-wear, corsetry, sportswear and swimwear, as well as highly functional textiles for technical applications. The fully integrated company with its own warping, circular knitting, warp knitting, dyeing and finishing facilities currently employs around 150 people.

Penn has long relied on Mahlo
Penn has relied on the cooperation with Mahlo for years. The manufacturer of measuring, control and automation systems for web-shaped goods has decades of experience in the field of process control. Until the summer of 2020, the textile manufacturer had been using a basis weight measurement system in the stenter frame outlet with beta radiation and manual control. "When the krypton preparations had passed their half-life, we had to make a decision: Exchange or replace the system right away", says operations manager Franz Schütte. They sat down with Mahlo representatives and looked for the best solution. Since the systems had already reached a high operating age and the measurement was limited to the basis weight, a new concept was decided upon. "Mahlo made us the best price-performance offer." The new system should be even more efficient and easier to operate for the special makes..

The compression zones of the functional fabric create corresponding distortions within the textile surface in its raw state, which have to be smoothed out in the fixing process. This work is now taken over by a process control system. The Mahlo Famacont PMC-15 with two measuring points automatically controls the leading of the stenter frame by continuously and contactlessly determining the mesh density. In addition, the Patcontrol PCS-20 process control system ensures that the dimensions of the different zones are recorded and also automatically controlled. "The previous beta-radiation facility was not able to collect this kind of data," explains the Penn operations manager. Another important aspect for the textile manufacturer: the complete and costly radiation protection is no longer necessary with the new systems.

Despite very good experience with Mahlo in the past, every change naturally involves a risk. Penn did not have to rely on theoretical considerations, however, but carried out tests in advance with appropriate sample material in the Mahlo test laboratory. The results convinced the decision-makers.

After its launch on 20 September 2020, the RCI is proud to celebrate its first anniversary this fall. The balance sheet of the first year is impressive: starting from 11 founding members, that number increased to 30 member companies within 12 months. Numerous webinars, press releases, background information, a glossary and a comic allowed to convey the “Renewable Carbon” concept to the public. The RCI is actively working on labelling and policy analysis, and more activities will follow in the next year.

Key for this success: the topic of renewable carbon in chemicals and materials is increasingly becoming a focus of politics and industry. Larger companies will have to report their GHG emissions and also the footprint of their products as part of legislative changes surrounding the European Green Deal. In this context, indirect emissions and the carbon sources of materials will play a much more crucial role. The RCI is actively working on solutions for companies to shift from fossil to renewable carbon, which consists of the use of bio-based feedstock, CO2-based resources and recycling. In the future, reporting on GHG emissions will also include Scope 3 emissions, which are all indirect emissions that occur along the company’s value and supply chain and where the used raw materials account for a large proportion of the footprint. Here is where the carbon source of chemicals and plastics comes into play as an important contributor to the carbon footprint. Without a shift from fossil to renewable carbon feedstocks (combining bio-based, CO2-based and recycled), a sustainable future and the Paris climate targets will be almost impossible to master.

To discuss, promote and realise the shift, 30 innovative companies have already joined forces to support the transition to renewable carbon, considering both technological and economical approaches – and helping to shape the political framework accordingly.

For the second year, RCI plans to focus on a comprehensive understanding of the expected political framework conditions in Europe and across the globe, since they will determine the future of chemistry and materials more than ever. Building on this knowledge, the topic of renewable carbon could then to be systematically integrated into new political directives, which has so far not been effectively managed.

In reality, the political focus lies on the strategy of decarbonising the energy sector, a very central and Herculean task. However, it cannot be applied to the chemical and material world because carbon is usually the central building block that cannot be dispensed with. On the contrary, the demand for carbon in the chemical and materials sectors is expected to more than double by 2050. In order to meet this demand in a sustainable manner, we must move towards quitting fossil carbon. For the first time in industrial history, it is possible to decouple chemistry and materials from petrochemicals and completely cover the demand through the utilisation of biomass, CO2 and recycling.