From the Sector

The kick-off meeting for the "Trends and Design Factors for Hydrogen Pressure Vessels" project, recently held at AZL Aachen GmbH, was a successful event, bringing together more than 37 experts in the field of composite technologies. This event laid a solid foundation for the Joint Partner Project, which currently comprises a consortium of 20 renowned companies from across the composite pressure vessel value chain: Ascend Performance Materials, C evotec GmbH, Chongqing Polycomp International Corp. (CPIC), Conbility GmbH, Elkamet Kunststofftechnik GmbH, F.A. Kümpers GmbH & Co. KG, f loteks plastik sanayi ticaret a.s., Formosa Plastics Corporation, Heraeus Noblelight GmbH, Huntsman Advanced Materials, Kaneka Belgium NV, Laserline GmbH, Mitsui Chemicals Europe GmbH, Plastik Omnium, Rassini Europe GmbH, Robert Bosch GmbH, Swancor Holding Co. Ltd. Ltd., TECNALIA, Toyota Motor Europe NV/SA, Tünkers do Brasil Ltda.

The project follows AZL´s well proven approach of a Joint Partner Project, aiming to provide technology and market insights as well as benchmarking of different material and production setups in combination with connecting experts along the value chain.

The kick-off meeting not only served as a platform to foster new contacts and get informed about the expertise and interests of the consortium members in the field of hydrogen pressure vessels, but also laid the groundwork for steering the focus of the upc oming project's ambitious phases. As a basis for the interactive discussion session, AZL outlined the background, motivation and detailed work plan. The central issues of the dialogue were the primary objectives, the most pressing challenges, the contribut ion to competitiveness, and
the priorities that would best meet the expectations of the project partners.

Discussions covered regulatory issues, the evolving value chain and the supply and properties of key materials such as carbon and glass fibres and resins. The consortium defined investigations into different manufacturing technologies, assessing their matu rity and potential benefits. Design layouts, including liners, boss designs and winding patterns, were thoroughly considered, taking into account their implications for mobile and stationary storage. The group is also interested in cost effective testing m ethods and certification processes, as well as the prospects for recycling into continuous fibres and the use of sustainable materials. Insight was requested into future demand for hydrogen tanks, OEM needs and strategies, and technological developments to produce more economical tanks.

The meeting highlighted the importance of CAE designs for fibre patterns, software suitability and the application dependent use of thermoset and thermoplastic designs.

The first report meeting will also set the stage of the next project phase, which will be the creation of reference designs by AZL's engineering team. These designs will cover a range of pressure vessel configurations using a variety of materials and production concepts. The aim is to develop models that not only re flect current technological capabilities, but also provide deep insight into the cost analysis of different production technologies, their CO₂ footprint, recycling aspects and scalability.

AZL's project remains open to additional participants. Companies interested in joining this initiative are invited to contact Philipp Fröhlig.

Leveraging insights from Wealth in Waste, Fashion for Good released a toolkit designed to revalorise textile waste in India.

"The Sorting for Circularity India toolkit is a milestone in our journey towards a waste-free world. We have mapped the textile waste landscape, unpacking the huge potential, as well as the roadblocks and commercial opportunities in India’s textile waste industry. We are excited to move beyond rhetoric with this powerful coalition of partners and translate our findings into a roadmap for concrete actions", said Katrin Ley, Managing Director, Fashion for Good.

In 2021, Fashion for Good launched the Sorting for Circularity India Project to organise the Indian textile waste market in a three-phase approach so as to streamline, strengthen and foster the Indian textile waste market to drive the transition to a more circular economy that recaptures value to its maximum potential.

The project brought together various industry players including Fashion for Good partners adidas, Levi Strauss & Co., PVH Corp., Target, Arvind Limited, Birla Cellulose, and Welspun India, as well as Fashion for Good innovators Reverse Resources, PICVISA, and Matoha; H&M, Primark, and TESCO also joined as external partners. The project is supported through catalytic funding provided by Laudes Foundation and IDH, and knowledge support from Canopy and Circle Economy Foundation.

Drawing upon the invaluable insights gained throughout the project, Fashion for Good unveils a toolkit designed to harness the untapped potential of textile waste in India. Together, these resources provide valuable insights, assessments, and practical guidance to advance recycling in India's textile industry.

On December 7th and 8th, Bangladesh Apparel Exchange (BAE) in partnership with Fashion for Good, facilitated the “Chemical Recycling Technologies: Manufacturing Markets Gateway”, in Bangladesh. Fashion for Good, the Amsterdam based global platform for innovation, along with two disruptive technology start-ups focused on textile-to-textile chemical recycling, Circ and Infinited Fiber Company, were the key stakeholders in this initiative.

The two-day visit leveraged Bangladesh's status as a major garment production hub, exploring the potential of chemical recycling technologies to enhance environmental sustainability. Emphasizing the importance of circularity, the event aimed to spread awareness about current disruptive innovations that could transform the industry's approach to waste and resource management, setting an example for future sustainable practices. It focuses on integrating these technologies within the local manufacturing landscape, securing feedstock partnerships, and developing a value chain for recycled apparel materials.

Denim Asia Limited, Knit Asia Limited, Progress Apparels Limited, Ananta BD, Reverse Resources, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) played pivotal roles in this initiative. Knit Asia Ltd, notably acclaimed for their commitment to sustainable practices, along with Denim Asia, associated with the sustainable brand Noize Jeans, showcased their commitment to sustainable manufacturing processes.
Progress Apparels Limited, a ready-made garment producer and part of PDS Limited demonstrated its advanced sustainable production facilities. Reverse Resources and the BGMEA hosted an intimate “Meet and Greet Networking Session”, to boost awareness about the technologies in the industry.

Mr. Mostafiz Uddin, Founder and CEO of Bangladesh Apparel Exchange, emphasized the significance of this event for the wider Bangladeshi textile industry, " Bangladesh has the biggest manufacturing sector in South Asia and this tour marks a critical step towards a circular fashion ecosystem, also how can the fashion industry become more sustainable in Bangladesh. It's not just an event; it's part of a larger movement to incorporate innovative recycling, Sustainable Fashion technologies and establish global partnerships for a sustainable fashion industry."

Featuring interactive sessions, factory visits, and knowledge sharing, this initiative offered a platform for fostering collaborations between manufacturers and technology innovators.

Bangladesh Apparel Exchange and Fashion for Good are optimistic about a future where Bangladesh leads in sustainable and circular apparel manufacturing.

In an initiative aimed at enhancing accessibility to certification for small operator groups within the organic textile value chain, the Global Organic Textile Standard (GOTS) is pleased to introduce its ongoing Controlled Supply Chain Scheme Pilot Project. The project, launched in 2022, was strategically developed to overcome the obstacles that often deter small-scale operators from pursuing GOTS certification.

Recognising that administrative complexities and financial burdens can impede these operators, the controlled supply chain scheme (CSCS) system was developed to mitigate these challenges. The supply chain requires an internal control and audit system, and small-scale operations benefit from a streamlined ‘group’ certification process, which reduces costs and eases administrative barriers.

Under the CSCS framework, a supply chain comprised of a minimum of eight and a maximum of thirty small-scale facilities, each with twenty or fewer workers, could be considered a single Certified Entity after a comprehensive risk assessment by their Certification Body (CB). SANKEI MERIYASU, a Japanese textile manufacturer, recently received GOTS certification through this project. SANKEI MERIYASU's success showcases the tangible impact of the CSCS system in empowering small-scale operators.

With the pilot due to be reviewed and evaluated next year, GOTS Managing Director Rahul Bhajekar is optimistic about the future of CSCS systems within GOTS. "The controlled supply chain scheme has the potential for substantial impact, empowering small operators in the organic textile supply chain and revolutionising GOTS certification. Our pilot project is proving that the scheme works as intended, overcoming barriers and expanding opportunities. We look forward to refining and validating the CSCS requirements, in hopes of implementing it fully for all markets in the future.”

As part of the Aachen-Dresden-Denkendorf International Textile Conference in Dresden, the Chairman of the Walter Reiners Foundation of the VDMA, Peter D. Dornier, presented awards to four successful young engineers. Two promotion prizes and two sustainability prizes were awarded in the Bachelor and Diploma/Master categories. Academic works in which solutions for resource-saving products and technologies are developed are eligible for the sustainability prizes.

A sustainability prize worth 3,000 euros in the Bachelor's category was awarded to Franziska Jauch, Niederrhein University of Applied Sciences, for her Bachelor's thesis on pigment digital printing in denim production.

The promotion prize in the Bachelor's category, also worth 3,000 euros, went to Annika Datko, RWTH Aachen, for her work on determining the polyester content in used textiles.

Dave Kersevan, TU Dresden, was honoured with a sustainability prize in the Diploma/Master's category, endowed with 3,500 euros. The subject of his thesis was the development of a laboratory system for the production of needled carbon preforms.

This year's promotion award in the Diploma/Master's category, endowed with prize money of 3,500 euros, went to Flávio Diniz from RWTH Aachen. The subject of his Master's thesis was the feasibility of manufacturing ultra-thin carbon fibres.

The award ceremony 2024 will take place in April at the VDMA stand at the Techtextil fair in Frankfurt.

Santoni Shanghai Knitting Machinery Co., Ltd. announces that it has received regulatory approval from Chinese authorities for its proposed acquisition of Terrot GmbH, a manufacturer of circular knitting machines in Germany.

The acquisition represents a pivotal step in Santoni's strategy to advance the circular knitting machine industry. The integration of Terrot into the Santoni ecosystem is projected to increase Santoni's production capacity and boost its market share, and in conjunction with other strategic objectives, firmly solidify Santoni's position as the leading manufacturer in the industry, with unrivaled scale, depth of innovation and expertise.

Seeking to meet rising demand for high-end circular knitting products, Santoni has pursued an Ecosystem Strategy in recent years, aiming to unify a highly fragmented industry and enhance innovation, sustainability and digitalization to more effectively meet market needs. The deployment of both parties' latest innovation practices, textile automation offerings, integrated enterprise services, C2M solutions, and a platform for designers "Materialliance", will allow Santoni Shanghai and Terrot to connect and bridge demand and offer of circular knitted products.

By incorporating Terrot's offerings, particularly in the double jersey and jacquard sector, Santoni stands to gain a competitive edge in offering machines known for their performance, low maintenance, and cost-effectiveness. Highlighting this shift is Terrot's UCC 572-T, a transfer jacquard machine for sports and leisurewear.

Following the acquisition, Terrot will continue to operate under the leadership of managing directors Robert W. Czajkowski and Dirk Lange. Santoni plans to maintain Terrot’s headquarters in Chemnitz, Germany, along with its facilities, brands, and practices.

• Revenue of US$3.9B, a decline of 1% QoQ and 20% YoY
• EBITDA of US$324M, an increase of 1% QoQ and a decrease of 37% YoY
• Operating cash flows of US$410M
• Net Operating Debt to Equity of 0.97x
• EPS of THB 0.00

Indorama Ventures Public Company Limited (IVL) reported stable third-quarter earnings as the company’s management focuses on conserving cash and improving competitiveness to bolster performance in a continued period of weakness in the global chemical industry.

Indorama Ventures achieved EBITDA of $324 million in 3Q23, an increase of 1% QoQ and a decline of 37% YoY, impacted by a weak economic environment, geopolitical tensions, and continued post-pandemic disruptions in global markets. Sales volumes dropped 5% from a year ago to 3.6 million tons as China recovers from the pandemic more slowly than expected and an extended period of destocking in the manufacturing and chemical sectors continues to normalize from unprecedented levels last year.

Management continues to focus on conserving cash, realizing efficiency improvements, and optimizing the company’s operational footprint to boost profitability. These efforts resulted in positive operating cash flow of US$410 million in the quarter, positive free cash flow of $79 million year to date, and room for further reductions in working capital going forward. The company’s AA- rating was maintained by TRIS in the quarter, with a stable outlook. 

The company expects the operating environment to improve in 2024 as customer destocking continues to ease across all three of Indorama Ventures’ segments. The ramp up of PET and fibers expansion projects operations in India and the U.S. will also contribute to increased volumes.  

Combined PET posted EBITDA of $146 million, a 25% decline QoQ, amid historically low benchmark PET margins, increased feedstock prices in Western markets, and lingering effects of destocking. Integrated Oxides and Derivatives (IOD) segment posted a 27% rise in EBITDA to $119 million QoQ, supported by strong MTBE margins in the Integrated Intermediates business. The Integrated Downstream portfolio’s profitability was impacted by destocking, inflationary pressures, and margin pressure from imports. Fibers segment achieved a 140% increase in EBITDA to $48 million QoQ as Lifestyle volumes grew in key markets in Asia, and the Mobility and Hygiene verticals benefited from management’s focus on optimizing operations and refocusing the organization. 
 

Developments:

• Currency-neutral revenues up 1% driven by growth in all regions except North America
• Top-line development reflects focus on conservative sell-in and full-price business
• Gross margin up 0.2pp to 49.3% driven by reduced freight costs, a more favorable business mix, and lower inventory allowances; discounting levels continue to improve  
• Operating profit of € 409 million includes extraordinary expenses of around € 110 million
• Conservative sell-in strategy paying off as inventory position improves substantially versus Q2 level to € 4.8 billion; now down 23% year-over-year

Outlook
adidas expects revenues to decline at a low-single-digit rate
On October 17, adidas had adjusted its full year financial guidance to reflect both the positive impact of the second drop of some of its Yeezy inventory and the better-than-expected development of the underlying business. At the same time, macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in North America and Europe as well as uncertainty around the recovery in Greater China continue to exist. In addition, the company’s revenue development will continue to be impacted by the initiatives to significantly reduce high inventory levels in North America and the company’s focus on full-price sales across its own channels. As a result, adidas now expects currency-neutral revenues to decline at a low-single-digit rate in 2023 (previously: decline at a mid-single-digit rate).

Underlying operating profit anticipated to reach a level of around € 100 million
The company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is now anticipated to reach a level of around € 100 million in 2023 (previously: around break-even level). Including the positive impact from the two Yeezy drops in Q2 and Q3 of around € 300 million (previously: € 150 million), the potential write-off of the remaining Yeezy inventory of now around € 300 million (previously: € 400 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), adidas now expects a reported operating loss of around € 100 million in 2023 (previously: loss of € 450 million).

Trumpler has teamed up with Archroma to offer a leather production process that can be used to produce high-performance leather in a more eco-friendly and cost-efficient way.

The new process DyTan®combines offers an alternative to existing metal-free and chrome-tanned leather. It enables the reliable production of leather with great shavability, color depth and migration and abrasion resistance. Free from metal salts and reactive aldehydes, DyTan® is suitable for a wide range of leather applications, from garment and footwear to automotive and furniture upholstery, for today’s eco-conscious leather producers and consumers.

At the core of the DyTan® process is Archroma’s patented AVICUERO® System, which is based on novel molecules that enable more sustainable leather tanning and dyeing, developed by Archroma in cooperation with leather technology consultant Dr Leather. It enables collagen fibers in the leather to be covalently cross-linked through a simplified process at low temperatures. As a result, the system shows strong potential to save energy and water, while also reducing process time and CO₂ emissions by up to 23%.*

The DyTan® process combines the AVICUERO® System with Trumpler’s bio-based fatliquors and retanning agents based on functional biopolymers produced from hydrolyzed shavings – resource-saving technology that Trumpler has been refining for 15 years.

As a global partner of Archroma, the Trumpler Group is responsible for the distribution of the AVICUERO® System worldwide. Delivering technical support and first-class customer care, Trumpler will help leather manufacturers and brands to implement sustainable tanning and draw on its comprehensive product portfolio and process knowledge of tanning, retanning and fatliquoring processes.
 

* Estimations carried out with the Archroma ONE WAY Impact Calculator show energy savings of up to 25% and reduced process time leading to a reduction in CO₂ emissions of up to 23%, compared to traditional chrome tanning. They also show significant water savings compared to other metal-free tanning systems¹. With the ONE WAY Impact Calculator, customers will be offered personalized calculations for their specific processes.

¹ Trials made at Trumpler GmbH application lab.

• Revenues: 358.3 million euros (-7%)
• EBITDA before non-recurring items: 59.2 million euros (-17%)
• Net income: 24.9 million euros (-30%)
• Free cash flow before non-recurring items: 32.1 million euros
• 2023 outlook: revised revenues – confirmation of EBITDA before non-recurring items

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the third quarter and first nine months of 2023, which have not been reviewed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 6.4 million euros (-5%) and 2.8 million euros (-10%) respectively in Q3, and by 7.3 million euros (-2%) and 3.0 million euros (-5%) respectively in the first nine months of the year, at actual exchange rates compared to like-for-like figures.

Business Trends and Outlook
In its 2022 Financial Report, published February 8, 2023, Lectra presented its new roadmap for 2023-2025. The Group also specified that 2023 remained unpredictable given the degraded macroeconomic and geopolitical environment, which resulted in many uncertainties that could continue to weigh on its customers’ investment decisions.

At the beginning of the year, the Group set itself objectives of achieving, in 2023, revenues in the range of 522 to 576 million euros and EBITDA before non-recurring items in the range of 90 to 113 million euros. It subsequently reported on April 27 that it then anticipated revenues in the range of 485 to 525 million euros and EBITDA before non-recurring items in the range of 78 to 95 million euros.

In what continues to be a highly degraded environment in macroeconomic and geopolitical terms, orders and revenues from new systems in Q3 were lower than anticipated by the Group. Recurring revenues, on the other hand, which should account for over 65% of total revenues in 2023, continued to grow in Q3, and provide good visibility. In addition, the initial measures to reduce overhead costs have begun to bear fruit.

In light of these factors, full-year revenues are now anticipated in the range of 474 to 481 million euros, thus slightly lower than anticipated on April 27, and EBITDA before non-recurring items in the range of 78 to 82 million euros, in the lower part of the range indicated on April 27. These scenarios are based on September 30 exchange rates for Q4, including $1.06 to the euro.

Because the Group's customers operate in a highly competitive environment that demands they continue to improve performance, their investments will pick up as soon as the macroeconomic situation improves. Lectra's roadmap for 2023-2025, which was launched on January 1, 2023, will enable the Group to take full advantage of the upturn and accelerate its growth.