From the Sector

Indorama Ventures Public Company Limited (IVL) reported a strong 1Q22 result, building on its record FY 2021 performance as the pandemic continued to retreat, driving demand across the company’s global integrated portfolio.

IVL achieved 1Q22 Core EBITDA of US$650 million, up 41% QoQ and 77% YoY, and a 4% increase in production volumes to 3.80 MMT. All three of IVL’s business segments grew as the company’s leading global position benefited overall in an environment of higher crude oil prices, increased ocean freight rates and a strengthening US dollar, led by resurging consumer demand and global mobility.

IVL’s Integrated Oxides and Derivatives (IOD) business benefits from a high crude oil price environment, as its shale gas advantage supports MTBE and MEG margins. As ocean freight rates increase, IVL’s PET and Fibers segments gain due to increased import parity pricing in Western markets, where about two thirds of its portfolio is situated. Management’s agile response to hedging and levying surcharges has helped to partially recuperate the surge in energy and utility costs in Europe as a consequence of the Russia-Ukraine conflict.

The re-opening of economies bodes well for demand across IVL’s portfolio. However, China’s ongoing pandemic lockdowns impacted downstream polyester demand resulting in weakened MEG spreads. IVL’s businesses trade in US dollars and a strengthening dollar has positive impact, reducing conversion costs in emerging economies where IVL has a strong local presence.

Combined PET segment reported Core EBITDA of US$435 million, up 63% QoQ and 67% YoY supported by the reset of PTA/PET contracts at the end of 2021. IVL expects the tight supply-demand environment to continue through 2022, boosted by the upcoming peak summer season.

IOD segment achieved Core EBITDA of US$126 million, up 3% QoQ and 258% YoY as MTBE margins benefited from higher crude oil prices, demand remains strong for downstream products, and as the commissioning of the Lake Charles cracker contributes to earnings in 2022. The integration of the Oxiteno acquisition, completed in April, will bring additional upside to IOD from 2Q22.

Fibers segment delivered Core EBITDA of US$85 million, an increase of 4% QoQ and 17% YoY. Demand across the three Fibers verticals is stable with domestic sales yielding better profitability, while higher freight rates weighed on margins on export volumes from Thailand, Indonesia and India, and increased energy and utility costs impacted European operations.

1Q22 Performance Highlights

• Consolidated Revenue of US$4,444M, an increase of 12% QoQ and 37% YoY
• Record Reported EBITDA of US$784M, a YoY growth of 63%, and Core EBITDA of US$650M, a YoY growth of 77%
• Production volumes up 4% YoY to 3.80 MMT
• Reported Net Profit of THB 14,070M, Core Net Profit of THB 10,578M
• Reported EPS of THB 2.47 (LTM1Q22: 5.98) and Core EPS of THB 1.85 (LTM1Q22:4.96)
• Record Core EBITDA Margin at 15%

C.L.A.S.S. has taken another strategic step with Training, an educational offer made of three moments aimed at sharing valuable and practical information concerning three main areas of sustainable development. Training will be adding value to the Smart Academy offer by C.L.A.S.S., a program of events and conferences, lectures or customized training services, united by an important goal: to educate, raise awareness and inspire professionals, students and even consumers with an eye to the values of responsibility.

There are three trainings offered:

1. Introduction to a new generation of fashion
   C.L.A.S.S. team will introduce and explain the new generation of value-driven fashion where the fusion of design, innovation, communication and responsibility shapes an informed and competitive business, able to play both at an economic and social level. Since 2007, at the base of our philosophy is a formula: Virtuous Fashion, the one with the capital F, is the product of an integration of design (D), innovation (I), sustainability (S) and communication (C). In brief: F = D x I x S x C.
    
2. Introduction to Smart Ingredients
   What is a responsible material? How to source responsibly? Which are the latest smart ingredients that can enrich with new generation fashion collections?
   During the session participant will be guided through materials available in the market, and will have the chance to have an “informed background“ of each one of the materials' journey. Conscious Choices can be made ONLY IF we have all the true full information in our hands. This training informd participant to make the best informed choice for their objectives. A simple but facts driven introduction to the key available innovative and sustainable materials: naturals, transformed and innovative where traceability, transparency, innovation, performance, responsible measurements are leading both the storymaking and the storytelling of each one of them.
    
3. Introduction to Sustainability Report
   The preparation of the company's sustainability report is a fundamental moment to define objectives, identify improvement actions, and measure its environmental and social impact. It is a job that involves the entire company team, which can transform the report into an opportunity for growth.
   The package offered by C.L.A.S.S., in collaboration with Silvia Gambi, sustainable fashion journalist and podcaster of Solo Moda Sostenibile, combines training with personalized consulting with a coaching action to guide the company team in the preparation of its sustainability report, offering the necessary support to create a document that tells about the company, its values, its commitment and also its objectives.

Paper Converting Machine Company (PCMC) and Hudson-Sharp, part of Barry-Wehmiller’s Converting Solutions platform, have made significant contributions to Aspen Press & Packaging’s new flexible packaging division. Based in Salt Lake City, the packaging company has installed a 10-color, 52-inch Fusion C flexographic printing press from PCMC and two Ares 400-SUP stand-up pouch machines from Hudson-Sharp.

PCMC’s Fusion C is a central impression (CI) press that combines the features and advantages of both inline and CI presses. It allows for quick setups and efficient runs, and is the only CI press manufactured in North America.

Also incorporated into Aspen Press & Packaging’s new flexible packaging division are two Hudson-Sharp Ares 400-SUP stand-up pouch machines. Recognized as state-of-the-art in quality, speed and accuracy, the Ares 400-SUP has a compact footprint, and offers quick changeovers and the ability to run a variety of substrates with ease, including recycle-ready PE, biodegradable films, laminated films and paper.

• Continued focus on sizeable investments in innovation and sustainability.
• Underway in India, the acquisition of the Engineering Plastics business of Ester Industries Ltd. with the objective of keeping up the Group’s global growth trend

With total sales of EUR 1.508 million generated by over 30 production and sales units in Europe, Asia and America, RadiciGroup closed its 2021 financial year with positive results, despite the difficulties due to the lingering effects of the pandemic and the steep increase in the cost of raw materials and energy, especially during the latter part of the year.

The Group – led by brothers Angelo, Maurizio and Paolo Radici – continued to pursue its strategy of focusing on the core businesses considered to be strategic and synergistic, such as nylon chemicals, engineering polymers and advanced textile solutions, while, at the same time,  introducing new products, such as a line of personal protective equipment for medical and industrial use.

EBITDA reached EUR 268 million, and net income for the year was EUR 150 million.

Despite this situation, RadiciGroup considers it essential to continue making investments.

“In 2021, the Group invested EUR 53 million financed from cash flow,” Alessandro Manzoni, CFO of RadiciGroup, emphasized. “There was no impact on net financial position, which registered an improvement over 2020, as did all our balance sheet ratios."

Furthermore, in spite of the complexity of the period, in 2022 the Group shareholders have kept on with their significant investment plan aimed at strengthening RadiciGroup’s presence in global markets and improving its competitiveness.

Indeed, the Group has moved forward, according to plan, with the acquisition of the Engineering Plastics business of Ester Industries Ltd., an India-based company engaged for decades in the production of engineering polymers and listed on the Bombay Stock Exchange. RadiciGroup’s EUR 35 million investment in this transaction furthers the internationalization strategy of its High Performance Polymers business area.

Following their merger, Freudenberg Performance Materials, Low & Bonar, Mehler Texnologies® and Filc will be presenting their innovative solutions at a joint stand for the first time at this year’s techtextil exhibition in Frankfurt. The focus is on sustainability. Among the highlights are Evolon® RE, a microfilament textile for a wide variety of applications and markets, FILFLEX, a sustainable padding material for car seat covers, and the truck tarpaulin POLYMAR® 8556 ECO CF. Customers will find the world's leading manufacturer of technical textiles at Stand C51 in Hall 12.1.

Evolon® textiles made from recycled PET
With Evolon® RE, Freudenberg Performance Materials is presenting an even more sustainable version of its high-performance microfilament textiles. Evolon® RE is manufactured from an average of 70% recycled polyester, which the company makes by cycling post-consumer PET bottles in-house. Evolon® RE products are available for various applications such as technical packaging, in weights currently ranging from 80g/sqm to 300g/sqm. For high-tech wiping, lightweight Evolon® RE is now available starting from 30g/sqm. The material meets the needs of cleaning specialists for more sustainable wiping solutions. Evolon® RE offers the same high quality and material performance as all other Evolon® textiles.

Tarpaulins made from recycled raw materials presented by Mehler Texnologies®
When it comes to tarpaulins on trucks, both protection of the transport cargo and advertising for the transport company place high demands on the material. Mehler Texnologies® tarpaulin material ranks among the premium products for truck tarpaulins. The company is a pioneer in sustainable development and is showcasing POLYMAR® 8556 ECO CF. This unique material has a 25% share of recycled raw materials in the coating mass. In addition, the material is made with 100% R-PES yarns. The input materials undergo a complex separation and filtering process.

Sustainable padding material for automotive and furniture seat covers presented by FILC
FILFLEX is a soft and flexible padding layer made from nonwovens for automotive and furniture seat covers. It prevents leather from creasing and improves the dimensional stability of the seat covers. In terms of sustainability, its benefit is its 100% PET composition, making FILFLEX easy to recycle. FILFLEX offers customers easier handling during sewing and the seat covering process. End users benefit from the high seating comfort.

• ROICA™ V550 by Asahi Kasei for its responsible RF (Residual Free) line

Innova Fabrics, the Italian manufacturer of knitted fabrics for apparel, underwear and sports, confirms its choice of ROICA™ by Asahi Kasei, the Japanese leader of premium stretch fiber, for its new responsible line RF (Residual Free).

Despite the deep-rooted history of the company's team in the world of textiles, Innova Fabrics is a reality that is not afraid to innovate with a focus on environmental sustainability. As a result of its push for local production and attention to third-party sustainability certifications (including OEKO-TEX Standard 100, one of the world's best-known labels for textiles tested for harmful substances), Innova Fabrics continues its promise of responsibility with an enrichment of its conscious proposals. In the last season, Innova has increased its smart proposition by launching the RF (Residual Free) line, with the aim of reducing the impact of microplastics residues produced by the fashion industry. This is possible thanks to the combination of two responsible ingredients: SENSIL® Biocare by Nilit and ROICA™ V550 by Asahi Kasei.

SENSIL® BioCare is the premium, sustainable nylon 6.6 fiber enriched with a special technology that helps reduce the persistence of textile waste in the ocean and landfills by acting during and after the product's life cycle. Therefore, if the microplastics in SENSIL® BioCare garments are released during washing, they will decompose much faster than conventional Nylon 6.6 fibers, reducing textile waste. ROICA™ V550, part of the ROICA Eco-Smart™ family, is the premium, sustainable stretch yarn that degrades without releasing harmful substances into the environment, according to the Hohenstein's environmental certification. ROICA™ V550 also carries the Gold Level Material Health certificate from the Cradle-to-Cradle Product Innovation Institute, which evaluated the yarn's impact on human and environmental health. The strong relationship established between Innova Fabrics and ROICA™ by Asahi Kasei is a long-standing one: from the very beginning, the textile company chose ROICA™ as its main reference for premium stretch, using ROICA Colour Perfect™ in most of its articles. Having experienced the innovation of the ROICA™ line dedicated to high-quality color, Innova decided to opt for the ROICA Eco-Smart™ line as part of the extension of its environmentally conscious line.

Thanks to the constant synergy with its premium partner in innovative and responsible stretch, Innova continues its path towards a textile and fashion industry that respects the planet, without forgetting profit. And this is just the beginning. Innova Fabrics pieces containing SENSIL® BioCare and ROICA™ V550

• with a ready-to-use swatch book dedicated to its DEEP DIVE sustainable dyeing system for dark, popular color basics

Archroma, a global leader in specialty chemicals towards sustainable solutions, launches its first ever ready-to-use swatch book, dedicated to creating sustainable black and dark color basics for faster time to market, to support its popular DEEP DIVE 2.0 system.

In 2018, Archroma launched its system solutions, a holistic approach aimed at addressing the growing expectations of the public in terms of keeping consumers, and the environment, safe.
Under the umbrella of "The Archroma Way to a Sustainable World: Safe, efficient, enhanced, it's our nature", the Archroma systems are designed to create innovation and performance, whilst reducing the impacts on water, energy and other natural resources. The savings generated by these 70+ system solutions are demonstrated by Archroma's proprietary ONE WAY Impact Calculator, a ground-breaking tool launched in 2012 and continuously upgraded to simulate and optimize the footprint of textile application processes.

One of these systems, DEEP DIVE 2.0, has attracted a lot of interest not just from textile manufacturers but also from major brands and retailers worldwide. This popular system combines Drimaren® Ultimate HD, high-performance reactive dyes, with Blue Magic, an all-in-one pretreatment, Optifix® RUB New liq and Siligen® SIH-S New liq, a finishing treatment improved rub fastness and elegant hand feel, and an effective hydrolyzed dye remover, Cyclanon® XC-W New liq. The result is a shorter dyeing process combining right-first-time productivity, an improved fabric quality for longer lasting end-articles, as well as dramatically reduced water and energy utilization for brands committed to drive more sustainable production. Savings can reach up to 31% water and 34% energy.

The system is ideally suited for medium and dark cottons that have high performing fastness to light, multiple home laundering, saliva – in other words: apparel used for fashion, sports and baby’s wear.
At the same time, interested manufacturers and brands were facing the constant challenge of the fashion industry: time to market.

Often design is separated from execution in the factory and as such often designers initially select color that cannot be met in reality on different fibers or production routes in terms of color flare, metamerism, brightness, depth and now sustainable metrics – leading to lengthy delays and compromises in function, performance and/or color.
Archroma decided to create a dedicated tool aimed at addressing these issues. The company developed a new, unique book with color swatches made with the system that is ready to implement immediately into production thanks to engineered color standards and specifications.

This new tool offers a path to bridge the gap between “art and science” by providing at inspiration phase fully executable deep colors for cotton with controlled color metamerism and at the same time demonstrate water, energy and chemical savings, enhanced color fastness using safe chemistry for the end consumer. As a wardrobe staple, medium to dark shades are very popular with consumers. As a result, most brands and retailers often have and sell up to 60% of medium to dark shades in their seasonal palettes. It’s also the dark shades that use the most water and energy in production, so prioritizing these colors would have the largest ecological positive impact. The 48 colors swatched in the DEEP DIVE 2.0 book have been selected based on market popularity to allow brands and manufacturers to match that very stable market demand. Customers may use these colors as presented, or as inspiration whereby Archroma can create and match new custom colors using the DEEP DIVE 2.0 system.

Christophe Maestripieri, Global Head of the Archroma Brand Studio, the company’s department dedicated to support brands’ projects and innovations, explains: “We wanted to make sure our partners have all the tools they need to convert to more sustainable colors. We had the ideal dyeing system to do that, DEEP DIVE 2.0, with its high performance and reduced impacts on resources. Now, with the new DEEP DIVE 2.0 swatch book, we also offer to brands and manufacturers a way to select sustainable color options that meet the market demand for high quality medium to dark shades which can be implemented into production right away.”

• Innovation packages from STOLL - a company of the KARL MAYER Group

Optimizations, further developments and innovations are an integral part of STOLL's activities. The industry leader in flat knitting technology has recently launched a new offering in the form of defined innovation packages. The aim here is to make STOLL's high innovative strength even clearer and enable customers to benefit from it more quickly. "The demands made on flat knitting technology are changing all the time, whether in the case of technical textiles for transportation and furniture fabrics or medical solutions well as in the fashion sector, where new yarns - such as recycled yarns or innovative technologies, such as smart textiles - have to be taken into account all the time," knows Erhard Vöhringer, Sales Manager of the STOLL Business Unit in the KARL MAYER Group "Our customers always have to keep abreast of the latest developments. We are therefore continuously developing appropriate improvements, and with our innovation packages we are now offering even more detailed demand-oriented solutions."

Detail optimisations for more overall performance
The innovation packages have the benefits for customers in focus and were tailored to the respective target groups. Every optimization contained therein leads to a decisive improvement in production. All of the solutions developed can be easily integrated into existing STOLL machines.  

Innovation package Number One
Innovation package Number One will be launched on the market in a few weeks' time and is aimed explicitly at knitters who focus on technical textiles. The focus is on convenience and process acceleration. Simple network configuration, expansion of the number of NP values, extended functionality when loading and saving the pattern and also improvement of handling in connection with Production Management from PPS are just some of the features of the package. "The corresponding updates for the machine control system are available to our customers for download free of charge on Customer_Net. In the future, there will also be a cloud-based offering," explains Erhard Vöhringer.

Innovation package Number Two
Still in the pipeline, included in the Number Two innovation package, are improvements for the maintenance area – regarding the use of lubricants and the maintenance intervals (predictive maintenance) – as well as optimizations in terms of sustainability, for example when it comes to reducing consumption of oil and increasing reliability. These solutions will be suitable for all machine types and applications.
The focus here is on improvements in belt take-down, the import and export of data and support for additional storage feeders.
A physical improvement in handling is promised by the new lighting including mirror directly on the machine.
In addition, the development teams are currently working on optimizing various knitting qualities and increasing user-friendliness. So you can already be curious!

Concentrated innovative power
The STOLL development team, with several hundred engineers and technicians in the fields of electronics, software, patterning, and design, never runs out of topics. Questions like "What is the market looking for? What do customers want?  Which changes do the machines have to meet and which ones do the software control and design program have to meet?" are first discussed, evaluated and debated together as a team and then go into the development phase. "Our customers can be absolutely sure that all our innovations are meticulously tested before we go to market with them" emphasizes Erhard Vöhringer. This also applies to the solutions in the innovation packages.

Small solutions, big impact
STOLL flat knitting machines impress with their great application and production potential. Almost 150 years of extensive practical experience in flat knitting technology - the STOLL company was founded in 1873 - is unique in the industry. As a Business Unit of the KARL MAYER Group, STOLL continues to do everything in its power to inspire its customers with innovative strength. Productive, flexible and reliable - simply STOLL! This slogan has not lost any of its meaning today. Quite the contrary: With the new innovation packages, customers benefit not only from the latest high-tech flat knitting machines, but also from an always up-to-date performance upgrade of their existing machine park.
With its innovation packages, STOLL has found a flexible and very fast way directly to the customer. Anyone who wants to know more about this is cordially invited to this year's trade fairs. STOLL looks forward to seeing you at the KARL MAYER Group stand at ITM (Istanbul), Techtextil (Frankfurt), Techtextil India (Mumbai) and ITMA ASIA. (Shanghai).

BB Engineering has been shortlisted for the Plastics Recycling Awards Europe 2022 for the category Recycling Machinery Innovation with its PET recycling line VacuFil® Visco+ for fiber-to-fiber inline recycling.

The process presented as part of the award is the combined VacuFil® Visco+ with VarioFil®. This machinery enables the textile industry to perform closed-loop inline recycling of post-consumer polyester (PET) textile waste. The given recycling technology is a thermo-mechanical recycling process optimized for the textile industry. Key component here is the liquid state polycondensation reactor, known as Visco+, to adjust the intrinsic viscosity. Compared to existing fiber recycling processes, which address rather less demanding textile applications and don’t include subsequent spinning, BBE’s solution is a whole-in-one process that enables the textile industry to perform closed-loop inline recycling of post-consumer PET fiber waste even into high-tech textile yarns with low dpf-values.

The Plastics Recycling Awards Europe 2022 winners will be announced on 23 June, during the second day of the Plastics Recycling Show Europe taking place at the RAI Amsterdam.

The orders index for textile machinery for the first quarter of 2022, processed by ACIMIT, the Association of Italian Textile Machinery Manufacturers, shows a slight decrease (-4%) compared to the same period from January to March 2021. In absolute value, the index stood at 117 points (basis: 2015 = 100).

On the domestic front orders shrank by fully 22%, whereas abroad the decline was more contained (-2%). The absolute value of the index in Italy was set at 136 points. On foreign markets, the index scored a value of 114.9 points.

ACIMIT President Alessandro Zucchi commented that: “The global pandemic and Russian-Ukrainian conflict have accentuated the climate of uncertainty for the whole of the textile industry. Criticalities already present in the past year (such as a sharp rise in prices of raw materials and their scarce availability, as well as increased transport costs) are now accentuated more than ever. While orders appear to have settled on foreign markets, domestically, following a strong recovery in 2021, we now have to deal with a general negativity permeating the Italian economy.”

The ongoing conflict in Ukraine, together with successive pandemic lockdowns in the main market for textile machinery manufacturers, namely China, have undermined the confidence of Italian companies in the sector. “I believe 2022 will be a transition year for the industry, as we await a calming international economic scenario. In the meantime,” adds Zucchi, “our association continues to work to strengthen the positioning of Italy’s textile machinery industry worldwide through promotional initiatives in collaboration with Ministry of Foreign Affairs and International Cooperation and Italian Trade Agency.”

The latest of these initiatives was carried out at the end of April, with the opening of an Italian technology training center for textile machinery in Mongolia, a Country that ranks among the world’s leading producers of raw cashmere. ACIMIT’s president concludes that, “With the training center starting its operations, our sector is laying the foundations for further business opportunities in an emerging market. I’m certain the initiative will bear a return in terms of image not only for individual Italian companies who are participating by supplying machinery, but on the entire Italian textile machinery sector as a whole.”