From the Sector

Archroma launched SAFE EDGE+ to help mills and brands deliver supply chain transparency, accelerate time to market and stay ahead of evolving textile industry regulations.

The Safe Edge by Archroma online platform was launched in 2021 and was designed to allow brands, retailers and manufacturers to verify with just a few clicks the regulatory and compliance status of Archroma products, including regulations, ecotoxicological information, certifications, and expert notes. Foundation+, Archroma’s beyond compliant portfolio, is a curated selection of Archroma products that utilizes innovative technologies that may contain hazardous or regulated substances that have been designed out or reduced by more than 95% as compared to the current industry standard limits. It offers safer and more sustainable alternatives that help manufacturers, brands and retailers stay ahead of evolving regulations.

SAFE EDGE+ sits alongside other specialist tools and technologies from Archroma, including its SUPER SYSTEMS+ suite of fiber-specific solutions and intelligent effects, and ONE WAY+ - Archroma’s ONE WAY Impact Calculator combined with Sustainability Improvement Program.

Indorama Ventures Public Company Limited (IVL) reported a slight rise in quarterly performance, supported by a gradual recovery in sales volumes and as management executes the company’s IVL 2.0 strategy to optimize its manufacturing model, reduce costs, and enhance competitiveness.

Indorama Ventures’ reported Adjusted EBITDA  of $370 million in 2Q24, a 1% rise QoQ and a decline of 11% YoY. The company’s sales volumes increased 1% YoY due to subdued economic activity, but also signaling the end of a prolonged period of destocking that began in late 2022. Operating rates for the group increased from 74% to 76% in 1H24, although still at lower-than-average levels, signifying the weak global economic conditions. On a proforma basis, considering asset optimization actions, operating rates increase to 81%.

The Indovinya segment posted a robust performance on improved margins and rebounding demand for its high value-add downstream products. The packaging business, newly renamed ‘Indovida’, also performed well due to its leading footprint in emerging markets.

Looking ahead, Indorama Ventures is encouraged by the gradual improvement in the operating environment as customer inventory levels normalize, which is expected to spur further growth in volumes across all segments in 2H24. The company also expects to benefit in 2H24 from its shale gas advantage in the U.S, reflected in ethylene crack margins, positively impacting its integrated MEG business. Continued higher import prices in Western markets will enhance the company’s competitiveness as a leading local operator.

While the polyester industry manages the downcycle, Indorama Ventures’ experienced management team is working hard to deleverage and optimize the business under the company’s IVL 2.0 strategy to emerge stronger and drive enhanced earnings quality in an era of higher interest rates and a substantially changed industry landscape. As flagged at its Capital Markets Day on 6 March this year and reaffirmed in its Mid year strategic update on 24 July, the company is making substantial progress with IVL 2.0. In 2Q24, it recorded an impairment and expense provision of $666 million ($543 million is non cash) under its asset optimization program to improve manufacturing efficiency and reduce fixed costs. The cost benefits will start from 3Q24 and amount to about $170 million in savings in 2025. The company expects that the remaining asset optimizations will not have material impairments.

Management is continuing its intense focus on managing costs and extracting efficiencies, including its Olympus 2.0 program. These efforts achieved $47 million in savings in 1H24 ($29 million in 2Q24). The company is continually optimizing its capital expenditure, with capex supporting investments in sustainability—such as recycling in India—and automation and digital technology, as well as ongoing projects.

A key part of Indorama Ventures’ transformation journey is the implementation of new digital and AI tools to drive operational excellence in key areas, including manufacturing, commercial, procurement, sales, supply chain, and finance excellence. A significant portion of operations now have the new SAP S/4HANA ERP platform as a digital core, while rollouts of other world-leading solutions are ongoing in a phased approach through to 2026.

Segment Performances
The Combined PET (CPET) with Intermediate Chemicals segment posted an Adjusted EBITDA of $234 million in 2Q24, a 6% decline QoQ and a 25% decrease YoY, due to a one-time upside impact from a campaign run of NDC campaign in 1Q24 and as reduced industry spreads weighed on the Integrated PET business. A cracker outage at Lake Charles in the U.S also resulted in a $17-18 million impact to EBITDA. The cracker is gradually up and running in 3Q24.

The Indovinya segment recorded a strong Adjusted EBITDA of $98 million, a 41% gain QoQ and 85% YoY on increased volumes as destocking eased, supported by demand for downstream chemical surfactants amid the U.S crops season.

The Fibers segment recorded Adjusted EBITDA of $39 million, a 2% rise QoQ and a 19% gain YoY amid improved sales strategies and a robust focus on cost management, even as volumes declined, particularly in the Lifestyle business.

• Revenue up 4.8 percent year-on-year to EUR 1.31 bn in the first half of 2024
• Performance program shows effect: EBITDA up 20.4 percent year-on-year to EUR 164.4 mn in in the first half of 2024
• Free cash flow of EUR 141.5 mn (compared with minus EUR 165.4 mn in in the first half of 2023)
• Lenzing confirms EBITDA guidance for 2024

The Lenzing Group reports a gradual improvement in its business performance in the first half of 2024. As expected, the recovery of the markets relevant to Lenzing proved to be sluggish. Although fiber sales volumes increased, fiber prices remained at a low level. The cost of raw materials and energy remained high. At the same time, logistics costs rose significantly in the reporting period.

Outlook
The IMF left its growth forecast for 2024 unchanged at 3.2 percent and raised it to 3.3 percent for 2025. Nevertheless, a number of risks for the global economy remain.

Forecasting future economic growth is rendered more difficult by smoldering global conflicts, trade disputes, and the uncertain outcome of elections, including the USA and the EU.

Consumers are holding back on unnecessary purchases in an environment of rising prices, falling real wages in some cases, and concerns about economic growth. This is hampering a revival of the consumer apparel market, which is important for Lenzing.

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

In the trend-setting market for cotton, a reduction in stock levels and a stable price trend at a low level is expected for the remainder of the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first half of the year exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. The company expects that the measures will make a greater contribution to further improving earnings in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

Structurally, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is pushing both profitable growth with specialty fibers and the further expansion of its market leadership in the sustainability area.

The Lenzing Group is working with the non-profit organisation RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments as part of the CELLFIL project. Co-funded by the EU with EUR 6.9 million, the project aims to drive the reformation of the textile industry towards greater sustainability and a circular economy.

The Austrian organisation RTDS has launched the CELLFIL project with great vision. In close cooperation with Lenzing Group, which is at the technical helm of the project, CELLFIL aims to reform the textile industry. The centrepiece of the project is the sustainable and robust production of lyocell filaments. By optimising the entire fabric production process and its intermediate processing steps, the aim is to replace synthetic fibers with environmentally friendly lyocell filaments in recyclable end applications. This approach aims to develop and utilise alternative raw material sources for textiles. The realisation of these goals is crucial for scaling up lyocell filament production and promoting a circular economy that represents an environmentally friendly alternative to the currently dominant fossil-based synthetic filaments.

CELLFIL is part of the EU research and innovation program Horizon Europe and is supported by 15 partners from eight different countries. EUR 6.9 million from the European Union's Horizon Europe program has been made available for the implementation of this initiative. The European Commission has presented a visionary roadmap for the future of textiles, aiming for a circular economy in which all textiles on the EU market are durable, repairable and recyclable. This underlines Europe's commitment to sustainable innovation and a greener future in the textile sector.

In a position paper published, the companies organised in the VDMA Textile Machinery Association comment on the ambitious EU regulations and their national implementation for the sustainable and circular transformation of the textile and clothing industry.

The production of textiles requires a large number of resources, such as water, energy and chemicals. “The members of VDMA Textile Machinery support customers with products worldwide to utilise great potential already at the textile production stage to thereby reduce CO2 emissions“, explained Verena Thies, Deputy Chairwoman of VDMA Textile Machinery.

The position statement emphasises the importance of efficient processes, circular economy and binding rules for all market participants. Besides, the position paper summarises the status of textile-to-textile recycling processes as well as the framework conditions for reprocessing of recyclates. The companies of VDMA Textile Machinery develop processes and technologies for recycling and provide the technical prerequisites for the efficient reuse and recycling of textile raw materials, whether natural or man-made fibres.
The Executive Board of VDMA Textile Machinery stresses additionally, that the new EU regulations for circular economy and their national implementation must be designed with realistic targets, measurable effects and as little bureaucracy as possible. Furthermore, market surveillance is needed to ensure a level playing field for all market participants.

On behalf of the industry, the VDMA Textile Machinery Association calls for creating better location conditions in Germany and EU as a favourable environment for innovation und competitiveness for textile machinery manufacturing to significantly advance the sustainability of the textile industry: The Textile Machinery Association strongly emphasises the need for a wide range of low-cost green energy, which is essential for the implementation and sustainable use of recycling solutions in the manufacturing industry. The association also sees the positive shaping of location conditions (the potential for skilled labour, a reduction in bureaucracy, shorter approval periods, investment security and predictability as well as a reduction in the tax burden) as a decisive factor for supporting sustainable business in the highly competitive textile and clothing industry.

In sync with the fair’s 30th anniversary, the sourcing platform will host around 12 fringe events for fairgoers to stay ahead of the curve, under the following segments: Design Inspiration, Business O2O, Textiles & Technologies, and Industry Empowerment. Intertextile Shanghai Home Textiles has joined forces with Danish trend agency SPOTT trends & business to present the design theme for 2025 – ‘Healing Home’ – together with eight trend directions set to captivate the home textiles market. Set to be a hotspot for in vogue sourcing and industry exchange, the show will take place at the National Exhibition and Convention Center (Shanghai) from 14 – 16 August 2024.

To help home textile industry players set the tone and direction for the upcoming business season, the fair will present Trends 2025 along with leading trend agency SPOTT trends & business, to illustrate the ‘Healing Home– Spaces for Thriving Living’ theme that marks the path ahead for the evolving sector. This concept conveys the idea of a home that promotes a remedial, prosperous lifestyle, improving peoples’ general health and well-being, with several key factors contributing to the overarching theme:

• Eight key directions: Age-Old Crafts, Nature-Tech Synergies, Regenerative Possibilities, Wellbeing Spaces, Colourful Gatherings, Bio-Engineered Innovations, Transitional Practices, and Circular Systems.
• Five key colours: deep burgundy, warm terracotta, light creamy shade, saturated nostalgic green, and vaporous blue.

The founder of SPOTT trends & business, Ms Anja Bisgaard Gaede, will be onsite to share insights related to these new design trends. Fairgoers are invited to join her interactive trend tour, and physically experience the concepts steering the industry's future.

With the intention of sparking further design inspiration for industry players, an expert panel discussion of Chinese interior architects and designers, InterDesign Forum, will be held on the afternoon of Day 1. Focusing on design trend topics related to sustainability, Mr Shen Lei, Founder and Design Director of Interior Architects Design and the Chinese representative of the Intertextile International Lifestyle Trend Committee, will lead the discussion. Adding an international perspective, Ms Anja Bisgaard Gaede will join them for the accompanying round table talk.

In addition to serving as a gateway for efficient sourcing, the show will inspire fairgoers through its fringe programme, with various formats and topics unpacking current talking points.

Highlighted sessions include:    

• Round table discussion: Bridging Borders: A Designer x Producer Talk on Sustainability – a dialogue between designers and manufacturers, exploring how to collaboratively overcome sustainability challenges and reconcile the demands of both sides, from both Eastern and Western perspectives.
• Econogy Talks: selected exhibitors, including 3M, Advansa and many more, as well as a representative from Indorama will showcase their innovative green products, giving attendees in-person insights into some of the market’s latest sustainable developments in the Sustainable Fibre Forum. Additionally, a Messe Frankfurt representative will explain the Texpertise Econogy concept, the combination of economy and ecology that represents the sustainability activities in the company’s Texpertise Network. The discussion will show how crucial sustainability is for the economic success of a business today, and indicate how fairgoers can benefit from such an approach.

Beyond the subject of a greener textile industry, other topics will be explored at various events. With more to be announced in the coming weeks, the following seminars hosted by international experts will provide the latest trends and market updates:

• Bridging Worlds: Design Strategies for Success in Middle Eastern Markets: Ms Esra Lemmens (Day 1)
• How Psychology Impacts the Way We Design Spaces: Ms Pallavi Dean (Day 1)

Moreover, the 10th Home Textiles and Furniture Industry Ecological Integration Forum will bring together home textile and furniture brands to explore cross-industry collaboration and provide one-stop home solutions. The 30th China Home Textiles Design Festival & Designer Recommended Brand Awards will showcase the latest trends and achievements in home design, allowing participating brands to gain recognition from designers. Meanwhile, the 7th China International Fibre Art Exhibition will invite influential artists from home and abroad to present diverse contemporary fibre artworks; and the China Intangible Cultural Heritage of Textile Exhibition will showcase some remarkable displays.  

The 2nd Textiles Innovation Conference held by KARL MAYER North America proved to be a complete success. The trade event took place from June 25 to 27, 2024 at the headquarters of the KARL MAYER GROUP subsidiary in Greensboro, North Carolina. The conference boasted a turnout with over 200 attendees, exhibitors, and keynote speakers. While the majority hailed from many states across the USA, the event also attracted a global audience, including participants from Italy, Canada, Mexico, and other countries. The central theme: the importance of textiles made in the USA, their value and influence on global markets.

The conference brought together leading industry brands and academic institutions to delve into the future of product development and sustainability in textiles. KM.ON, Black Swan, Meta, and Supreme shared a convergence of ideas, challenges, and groundbreaking advancements shaping the textile landscape. NC State and Kent State universities highlighted their efforts in developing local talent and enhancing research capabilities to meet industry demand for regional supply chains. Manufacturing Solutions Center, Southern Textile Association, and AFFOA (Advanced Functional Fabrics of America) explored research capabilities and technology testing to foster funding opportunities and generate ideas for the future.

The recipe for success also included a lecture program. The conference kicked off with a keynote speech from New Balance, a brand that empowers people through sport and craftsmanship. New Balance MADE U.S., their premium collection manufactured domestically, reflects their commitment to quality and community impact. On day two Kenny Wilsey, Sourcing Director at Dillard’s, shared his expertise to ensure adherence to quality standards and social compliance requirements for private label brands. To complete the speaker series, Allison Hicks, Lead Knit Engineer at Under Armour, inspired attendees with her innovative approach to performance footwear, apparel, and accessories.

Important topics at the conference were sustainability and digitalization: Unifi showcased high-performance fibers made from recyclable materials and pre- or post-consumer waste management initiatives. KM.ON, the digital solution company of the KARL MAYER GROUP, displayed artificial intelligence applications for quality control, supply chain optimization, and predictive maintenance for warp knitting and knitwear production.

The Textile Innovation Conference program was rounded out by an exhibition of selected textile supply chain partners. These business partners supplemented the information about innovation presented in the lectures and performance demonstrations of the latest STOLL flat knitting and KARL MAYER warp knitting machines.

INDA, the Association of the Nonwoven Fabrics Industry, announced that wipes leaders across the supply chain convened for new connections, intelligence, sustainability strategies, and business at the World of Wipes® (WOW) International Conference, June 17-20 in Minneapolis, Minnesota.

The winner of the World of Wipes Innovation Award® was Rockline Industries for their Facial Care Wipe with Glycine Amino Acid Complex. This new Skin Care Wipe contains a unique multifunctional complex of two medium chain glycine, a phospholipid and a blend of special glycol ingredients that provides for a multitude of skin care benefits as well as providing a unique preservation system for nonwovens. The Skin Care Wipe provides substantiated improved skin smoothness, elasticity, and hydration alongside an anti-ageing claim. This innovation is amongst the first to use these glycine ingredients in a Skin Care Wipe formulation.

In a special recognition, INDA presented the 2024 Lifetime Service Award to David Powling, Technical Leader, Kimberly-Clark Corporation (retired), and the 2024 Lifetime Technical Achievement Award to Paul Latten, Director of Research & Development & New Business, Southeast Nonwovens, Inc. INDA honors both Powling and Latten for their decades of contributions to the nonwovens industry as well as being strong advocates for INDA.

The 1.5-day WIPES Academy, led by Heidi Beatty, Chief Executive Officer, Crown Abbey, LLC, and Paul Davies, Ph.D., Consultant, Crown Abbey, LLC, preceded the WOW Conference June 17-18. This course focused on the essentials of wet wipes construction and ingredients. Participants learned how to bring nonwovens, lotions, and packaging together to launch a successful product. The next WIPES Academy will be held July 21-22, 2025 at the Hilton Columbus Downtown, Columbus, Ohio in conjunction with WOW 2025.

The WOW conference program featured experts discussing these key topics:

• Sparkle & Shine: How Wipes Became WOW
• Wiping Smart: The Rise of Sustainable Practices in the Institutional and Industrial Wipe Markets
• Transformative Trends in Wet Wipe Formulations: A Dual Focus on Skin Health and Sustainability
• Leading Alternatives to Traditional Plastics Used in Wipes
• Panel Discussion: Leading Alternatives to Traditional Plastics Used in Wipes
• Eclectic Perspectives: Unraveling the Threads of I&I Wipes and Scaling Strategies
• Putting $$ in Your Pocket
• Recycling & Regulations

In addition to the premium content in the conference program, WOW featured four pre-conference webinars (with recordings available for full conference attendees), tabletop exhibits, Lightning Talks, a Skin Care Formulation Workshop 101, and a mentorship program for participants who are new to the wipes industry.

WOW 2025 will be held July 21-25, at the Hilton Columbus Downtown in Columbus, Ohio.

Archroma has won awards in two categories at the Just Style 2024 Excellence Awards. It took home two coveted Innovation Excellence awards for its SUPER SYSTEMS+ solutions and AVICUERO® leather tanning process, as well as a Social Excellence award for its longstanding and holistic commitment to community engagement in Baroda, India.

The awards recognize how Archroma is driving change with innovations that advance sustainability and through initiatives that contribute to the socio-economic progress of communities near to its Baroda manufacturing plant.

Innovation Awards
Archroma was recognized for advancing sustainable manufacturing in two Just Style Excellence Awards for Innovation.

SUPER SYSTEMS+ is a comprehensive suite of solutions that addresses the textile industry's key challenges, including water consumption, greenhouse gas emissions, circularity, chemical management and compliance.

By providing end-to-end, fiber-specific solutions that enhance process efficiency and offer intelligent effects, SUPER SYSTEMS+ enables mills and brands to meet their sustainability targets as well as consumer demand for durable products with enhanced functionality and sustainability. With end-to-end solutions from pre-treatment to finishing, SUPER SYSTEMS+ can be deployed without additional investment. With future compliance in mind, the solutions also go beyond current regulations and industry standards to anticipate upcoming restrictions.

Archroma’s AVICUERO® is a system for sustainable leather tanning and dyeing. Developed in collaboration with UK-based leather technology expert Dr Leather, it is both chrome- and metal-free and yet maintains the quality and performance of traditional tanning methods. Tanners enjoy shorter processing times, eliminate the pickling process and reduce salt usage, leading to lower pollution effluent discharge loads. In addition, AVICUERO® can offer energy savings of up to 25% and CO₂ emissions reductions of up to 23% compared to traditional chrome tanning.

Social Award for Community Engagement
Archroma has also been recognized for the positive impact it is having on communities in the vicinity of Baroda through multifaceted initiatives that span early childhood development, student scholarships, agricultural education and the empowerment of women.

Archroma recently set up an Anganwadi Centre to provide a range of services in the community, including nutrition and health education and pre-school learning. It also runs a scholarship program for students in vocational training, helping to create a skilled talent pool for the region. Archroma is also collaborating with a local NGO to empower farmers with modern agricultural methods and insights.

The building of a Household Biogas Plant in Umraya village is another example of Archroma's sustainable initiatives. The conversion of manure into clean renewable energy by the plant tackles several issues, such as reducing greenhouse gas emissions and enhancing soil health. It also liberates rural women from the burden of sourcing conventional fuel sources and the health risks associated with burning dung cakes for fuel.

Jeanologia has been honored with the title of 'Best Business Project' in the inaugural edition of the Spanish Fashion Academy Awards, aimed at recognizing and highlighting the key players in the Spanish fashion industry.

At a gala celebrating Spanish talent, Jeanologia emerged as a leading authority in sustainability and technology applied to fashion. The accolade from the Spanish Fashion Academy acknowledges Jeanologia's global vision and leadership, as well as its ability to catalyze positive change in the global fashion industry. Chosen from over 400 contenders and endorsed by the votes of 129 distinguished founding academics, the award reflects the recognition of Jeanologia's influence in the sector.

The award ceremony, held on Thursday, June 13, at Madrid's Teatro Fernán Gómez Centro Cultural de la Villa, attracted prominent figures from the Spanish fashion scene and marked a significant moment in Spanish fashion, paying homage to the legacy of Cristóbal Balenciaga, a pivotal figure who would have turned 129 in 2024.

Enrique Silla, CEO and founder of Jeanologia, accepted the award statuette, a design by Helena Rohner inspired by Balenciaga's iconic headdress.