From the Sector

• Exceptional achievement of research work on the use of Nuclear Magnetic Resonance (NMR) spectroscopy for understanding PET depolymerization enzymes

Carbios (Euronext Growth Paris: ALCRB), a pioneer in the development of enzymatic solutions dedicated to the end-of-life of plastic and textile polymers, announces the publication of an article entitled “An NMR look at an engineered PET depolymerase” in the scientific journal Biophysical Journal.

The article describes the use of Nuclear Magnetic Resonance (NMR) spectroscopy to study the thermal stability of PET depolymerization enzymes and the mechanism of adsorption of the enzyme on the polymer. This innovative approach, which required months of development, is a world first and opens up new ways of improving these enzymes. This publication confirms Carbios' international lead in the development of the most efficient enzymes for the depolymerization and recycling of plastics.

Prof. Alain Marty, Chief Scientific Officer of Carbios and co-author of the article, explains: “ Nearly 25 researchers are currently working on our unique enzymatic technology. It is based on academic collaborations with the world's leading experts in their fields..”

Dr. Guy Lippens, CNRS Research Director and co-author of the artcle, adds: “Nuclear Magnetic Resonance (NMR) is an extraordinary biophysical technique for visualizing an enzyme directly in solution. Our study is the first to use NMR as a complementary technique to crystallography and molecular modeling to observe a PETase. This gives new perspectives to better understand the functioning of these enzymes and it makes it possible to imagine new ways of improving these enzymes. ”

• China Penalty Tariffs on Finished Textiles & Apparel Give U.S. Companies a Chance to Compete and are a Powerful Trade-Negotiation Tool, NCTO Tells U.S. International Trade Commission

Section 301 penalty tariffs on finished Chinese textile and apparel imports give American manufacturers a chance to compete and provide trade officials with an essential trade negotiation tool, the National Council of Textile Organizations (NCTO) told a key government panel today in a formal written submission. Removing them, the association said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.

Those were among the key points outlined by NCTO President and CEO Kim Glas in a written testimony submitted to the U.S. International Trade Commission during three days of hearings on the economic impact of Section 301 China tariffs and Section 232 steel tariffs on U.S. industries.

The 301 penalty tariffs should be maintained “absent substantive improvements in China’s pervasive, predatory trade practices,” Glas said in her testimony.  China’s illegal actions “have put U.S. companies at a serious disadvantage, and tariffs give American manufacturers a chance to compete.” Glas noted that U.S. trade officials have “stressed that the penalty tariffs also create leverage and are a ‘significant tool’ in ongoing negotiations with China.”
 
While some advocates for lifting the tariffs point to concerns about inflation, Glas said, “canceling these penalty duties would do little to ease Americans’ inflationary pains.” She also noted that “apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs in place. As detailed in an economic study recently released by Werner International, U.S. import prices for apparel from China have dropped 25 percent since 2019 and 50 percent since 2011.”

Glas also warned that lifting the tariffs would have “a substantial negative ripple effect” on U.S. free-trade agreements, including undermining those with Western Hemisphere partners that have established shorter coproduction supply chains and serve other U.S. and regional interests.

The Section 301 tariffs were first imposed in 2018 in response to China’s persistent violations of intellectual property rules. By law, they are now under review.

Indorama Ventures Public Company Limited (IVL) announced that construction of an integrated PTA-PET plant in Corpus Christi, Texas, will resume in August this year. Corpus Christi Polymers LLC (CCP), a partnership between three companies, is expected to begin production in 2025 and ensure continued cost-competitive production to support the growth of IVL’s global PET operations into the next decade.

CCP was formed in 2018 as a joint venture between Indorama Ventures Corpus Christi Holdings LLC, a subsidiary of Indorama Ventures; DAK Americas LLC, a subsidiary of Alpek S.A.B. de C.V.; and APG Polytech USA Holdings, Inc, a subsidiary of Far Eastern New Century, following the purchase of a partially constructed facility of M&G Resins in Corpus Christi. Each partner will procure its own raw materials and receive one third of the PTA and PET produced at the facility to sell and distribute independently.

Construction of the plant is resuming following a period of pandemic-related disruptions. Through the pandemic, the partners firmly resolved to continue planning amid continued robust demand for PET packaging and the need for shorter supply chains. As the impact of the pandemic eased in 2022, the management team was strengthened in preparation for the resumption in activities.

CCP is expected to be the largest vertically integrated PTA-PET production plant in the Americas, and IVL’s biggest greenfields project in the U.S. since the development of the AlphaPet production facility at Decatur, Alabama in 2009. The new Texas facility is a significant addition to IVL’s leading global footprint, and will expand its coverage to customers across the U.S. The plant’s vertical integration optimizes PTA-PET production and, together with the availability of raw materials Paraxylene and Mono Ethylene Glycol in the U.S., ensures long-term competitive-cost supply for IVL’s locally integrated polyester value chain.

The facility will have nominal annual capacities of 1.1 million metric tons of PET and 1.3 million metric tons of PTA, shared between the partners. It will employ three state-of-the-art technologies: PTA: IntegRex®, PET melt: Invista, and PET solid state: Easy Up (HCIRR – Horizontal Continuous slightly Inclined Rotary Reactor).

CCP is adding to its leadership team to prepare for the new growth opportunities. Mr Russell Wilson will leave his role with IVL as Head of Manufacturing Americas, Combined PET, to take up a new role as Chief Executive Officer of CCP from 18 July. He brings 30 years of Aromatics and PET leadership experience including prior roles with Amoco and BP before joining IVL. Mr Todd Hogue, IVL’s Global Head of EH&S, replaces Mr Wilson as IVL’s representative on CCP’s Board. Mr Michael Day joined CCP as Project Director in June and brings 34 years of construction leadership experience including senior roles with Bilfinger, KBR, and CB&I.  Mr Jeff Shea will assume the role of Chief Operating Officer on 18 July.  Mr Shea has been in the PET industry for the last 22 years and has managed PET sites for the last 17. 

SUPPLY, DEMAND, & TRADE
The latest USDA report featured reductions to figures for both world production and mill-use for both the 2021/22 and 2022/23 crop years.  For 2021/22, the global production estimate was lowered -0.7 million bales (to 116.2 million) and global consumption was lowered -1.9 million bales (to 119.8 million).  For 2022/23, the global production forecast was lowered -1.2 million bales (to 120.7 million) and global consumption was lowered -1.6 million bales (to 119.9 million).

With the decreases in use exceeding the declines in production, figures for global ending stocks increased.  For 2021/22, the projection rose +1.1 million bales (to 84.0 million).  For 2022/23, the forecast increased +1.6 million bales (to 84.3 million).

At the country-level, the largest changes to 2021/22 production were for Brazil (-400,000 bales to 12.3 million) and Uzbekistan (-100,00 bales to 2.7 million).  The largest changes for the 2022/23 harvest were for the U.S. (-1.0 million bales to 15.5 million) and Brazil (-200,000 bales to 13.0 million).

It may be notable that there were no upward country-level revisions for mill-use in either 2021/22 or 2022/23.  The largest revisions for 2021/22 included those for China (-1.0 million to 37.0 million), Vietnam (-400,000 bales to 6.9 million), Bangladesh (-300,000 to 8.0 million), Pakistan (-100,000 bales to 10.9 million), and Uzbekistan (-100,000 bales to 2.7 million).  For 2022/23, consumption estimates were lowered for China (-500,000 bales to 37.5 million), India (-500,000 bales to 25.0 million), Bangladesh (-300,000 bales to 8.6 million), and Vietnam (-300,000 bales to 7.1 million).
The global trade forecast for 2022/23 was lowered -1.1 million bales (to 46.4 million).  The most significant changes on the import side included those for China (-500,000 bales to 10.0 million), Bangladesh (-300,000 bales to 8.5 million), and Vietnam (-300,000 bales to 7.2 million).  On the export side, the largest updates included those for the U.S. (-500,000 bales to 14.0 million) and Australia (+300,000 bales to 6.0 million).
 
PRICE OUTLOOK
Recent volatility was not limited to the cotton market.  A wide range of commodities lost significant value in June.  Between June 9th and July 5th (dates chosen unsystematically to describe the magnitude of declines), cotton fell -25% (NY/ICE December futures), corn fell -19% (Chicago Board of Trade, December contract), soybeans fell -17% (Chicago Board of Trade, November contract), wheat fell -25% (Chicago Board of Trade, December contract), copper fell -20% (London Metal Exchange, nearby), and Brent crude oil fell -12% (ICE, nearby).

The breadth of losses throughout the commodity sector suggests a sea change in investor sentiment for the entire category.  The effects of inflation, the withdrawal of stimulus, rising interest rates, and concerns about a possible recession could all be reasons explaining a reversal of speculative bets, and all could be contributors to the losses.  While the macroeconomic environment can be expected to continue to weigh on prices, there are also supportive forces for the market that are specific to cotton.

The current USDA forecast for U.S. cotton production is 15.5 million bales, and it may get smaller over time because of the severe drought in West Texas.  The current harvest figure is two million bales lower than the 2021/22 number and is equal to the five-year average for U.S. cotton exports (2017/18-2021/22).  On top of exports, the U.S. will need to supply domestic mills with 2.5 million bales.  The last time the U.S. had a severely drought-impacted crop (2020/21), the harvest was only 14.6 million bales.  In that crop year, the U.S. was able to export more than it grew because it had accumulated stocks in the previous year.  The U.S. is coming into the 2022/23 crop year with low stocks.  This suggests U.S. shipments may have been rationed.  Since the U.S. is the world’s largest exporter, this may lend some support to prices internationally.

Exhibiting companies can now register for A+A 2023! The world's leading trade fair and congress event for personal protection, occupational safety and health at work will take place in Düsseldorf from 24 to 27 October 2023.

Under the motto "People count", numerous exhibitors will present innovative solutions and concepts for safe and healthy working at A+A 2023. This time, the thematic umbrella of the international trade fair is formed by the megatrends of digitalisation and sustainability.

Decision-makers and experts will find cross-sector solutions and answers to the important questions surrounding a safe, healthy and sustainable workplace. From personal protective equipment (PPE), operational fire protection, environmental protection or disaster prevention to offers for ergonomic and healthy workplace design.

The focus will be on topics such as sustainability and the circular economy of products, digital services in the provision, care and storage of PPE, mobile working, exoskeletons (wearable robots) and wearables. Forums and side events as well as an innovative Start-up Zone complement the trade fair and set new, future-oriented impulses.

For more information and registration click here.

• The Borvida™ portfolio introduces sustainable base chemicals to Borealis’ range of product offering
• The range will initially be based on non-food waste biomass, and chemically-recycled waste; in the future it will also draw from atmospheric carbon capture
• The traceability of the content will be based on Mass Balance, which is ISCC PLUS certified
• This is the next step in an ambitious sustainability journey, which will see Borealis move away from traditional fossil-based feed

Borealis is strengthening its EverMinds™ circular product offering with Borvida™, a range of sustainable base chemicals.

The Borvida portfolio will offer base chemicals or cracker products (such as ethylene, propylene, butene and phenol) with ISCC Plus-certified sustainable content from Borealis sites in Finland, Sweden and Belgium. The move is part of Borealis’ broader commitment to a Future-Positive Revolution, in which the unrivalled benefits of base chemicals and polymers can be enjoyed at minimal impact to the planet.   

The portfolio will initially comprise Borvida B, from non-food waste biomass, and Borvida C, from chemically-recycled waste. In the future, the range will evolve to include Borvida A, sourced from atmospheric carbon capture. Borvida is complementary and is the building block to Bornewables™, a portfolio of polyolefins based on renewably-sourced second generation feedstocks, and Borcycle™, which offers circular polyolefins produced from mechanically- and chemically-recycled plastic waste.

Borealis produces a wide range of base chemicals for use in numerous industries based on various feedstock, such as naphtha, butane, propane and ethane. Through its olefin units (steam cracker and propane dehydrogenation), it converts these into the building blocks of the chemical industry: ethylene, propylene and C4 hydrocarbons (butylenes, ethyl tertiary-butyl ether (ETBE) and butadiene), and C5-6 hydrocarbons (pygas, phenol) among others.

The basis of the Borvida portfolio is Mass Balance, a Chain of Custody model that enables sustainable content to be tracked, traced, and verified through the entire value chain, offering sustainability-assured products from feedstock to end product. Using this model, circular alternatives can be offered in a cost-effective and environmentally-conscious way, which can be scaled up quickly without compromising on quality or efficiency.

Borvida can be used for a wide range of different polymer and chemical applications, also beyond polyolefins (PO). Non-PO polymers, such as polycarbonates, acrylonitrile butadiene styrene (ABS), super absorbant polymer (SAP) and other chemicals, are utilised for various end applications including coatings, plasticizers, adhesives, automotive, electronics, lubricants, detergents, appliances and sports equipment.

Together with key strategic partners, including Neste and Covestro, Borealis strives to provide a long-term solution in order to allow value-chain partners to meet their sustainability goals. Borvida will enable our customers to increase the sustainability of their products, keeping them ahead of forthcoming legislative changes, and meeting their customers’ demands for climate-conscious products.

Introduced on a smaller scale in early 2020, early renewable base chemicals customers include Covestro. “The use of alternative sustainable raw materials is one important pillar of our strategic ambition to become fully circular”, comments Frank Dörner, Managing Director Covestro Procurement Services GmbH & Co. KG. “The new product line is a good example for joint solutions, another strategic pillar, in order to establish new and reliable supply chains creating benefits for our customers.”

The Management Board of the European Chemicals Agency has selected Dr Sharon McGuinness as ECHA’s next Executive Director. As part of the appointment procedure, she will make a statement before the European Parliament and answer questions from its members. This is tentatively scheduled for 4 July 2022.

Dr Sharon McGuinness, an Irish national, is the Chief Executive Officer of the Health and Safety Authority (HSA) in Ireland since 2018. Prior to this, she was the Assistant Chief Executive for the Chemicals and Prevention Division within the Authority, with responsibility for division management, policy provision, advice and enforcement for a wide range of occupational health and safety, chemical and market surveillance legislation aimed at protecting human health and safety for workers and consumers.

She was a member of ECHA’s Management Board between 2014-2020 and Chair of the Board between 2016-2020. She graduated from the University College Dublin with a B.Sc. (Hons) in pharmacology and chemistry, and she holds a PhD in pharmacology, as well as diplomas in Legal Studies and Company Direction.

Dr McGuinness was one of the candidates preselected by the European Commission after an open competition and interviewed by the Management Board for the post.

Her selection follows that of Bjorn Hansen who retired in March 2022. Since 1 April 2022, Shay O’Malley has been ECHA’s acting Executive Director.

The term of office of the Executive Director is five years. It may be prolonged by the Management Board once, for a further term of five years.

The Reifenhäuser Group will be represented with four booths at the world's leading trade fair for plastics processing, K 2022, from October 19 to 26. Under this year's Reifenhäuser motto "The Time is Now", the extrusion specialists will show producers of films and nonwovens solutions for the three major topics of the industry: sustainability, digitalization and productivity.

The main booth showcases the Reifenhäuser Blown Film, Cast Sheet Coating and Reicofil business units. With the help of machine exhibits, visual presentations and concrete solutions for end products, visitors will learn, among other things, how they can manufacture fully recyclable products economically, process recyclates safely, increase their output and network the entire production without becoming dependent on systems, specialists or manufacturers. To ensure smooth production even after purchase, Reifenhäuser Service shows how customers can get the best out of their Reifenhäuser products and increase their productivity with rework solutions, modifications, training programs and digital services.

The component specialists of the Reifenhäuser Extrusion Systems business unit will additionally present their portfolio at two other exhibition booths. Here, everything revolves around screws, barrels and extruders - and why, especially for processing recycled material, high-performance wear protection is essential for reliability and high economic efficiency. Reifenhäuser Extrusion Systems will also showcase its innovations for flat dies and coextrusion blocks and their coordinated interaction for maximum productivity.

In addition to its own booths, Reifenhäuser will also be present as a partner of the R-Cycle initiative as part of a joint pavilion on the open-air site in the so-called Circular Economy Forum. R-Cycle is a cooperation project of various technology companies and organizations along the entire life cycle of plastic packaging.

Aanother highlight for visitors to the Reifenhäuser trade fair booths is the opportunity to additionally participate in the in-house exhibition on October 20, 21 and 24 at the Reifenhäuser Technology Center.

Textile Groups Urge U.S. to Maintain Penalty Tariffs on Finished Products

The Biden administration should maintain Section 301 penalty tariffs on finished textiles and apparel or risk reversing once-in-a-lifetime nearshoring trends and undermining critical investments and jobs in the U.S. and Western Hemisphere, three key American textile manufacturing groups said today.

In a formal submission to the U.S. Trade Representative’s (USTR) office, which is conducting a four-year statutory review of the tariffs, the associations expressed strong support for the continuation of penalty tariffs on imports from China and warned of the consequences associated with removing the tariffs.

“A key aspect of [the Biden administration’s trade] policy is the need to maintain Section 301 tariffs, absent substantive improvements in China’s pervasive, predatory trade practices,” the groups said. Lifting the tariffs “would also do nothing to achieve the administration’s goal of easing inflationary pressures, as apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs,” they noted.

The submission was filed by the National Council of Textile Organizations (NCTO) and the Narrow Fabrics Institute (NFI) and Industrial Fabrics Institute (USIFI) – both divisions of the Advanced Textiles Association (ATA).  The associations represent the entirety of the U.S. textile production chain.

“For decades, China’s illegal actions have undermined virtually every domestic manufacturing sector and contributed to the direct loss of millions of U.S. jobs. These devastating state-sponsored practices include intellectual property theft as well as pervasive state-ownership of manufacturing, industrial subsidies, and abhorrent labor and human rights abuses in the Xinjiang region,” they noted. “Cancelling these tariffs would create further unhealthy dependence on Chinese supply chains and embolden future systematic trade abuses as bad actors know that the U.S. will not hold them accountable.”

The tariffs were imposed on China beginning in 2018 in response to China’s continuing IP and related trade violations. China has since failed to comply with an agreement it reached with the United States in 2020.

TEXAID as a professional collector and sorter with roots in Switzerland contributes to this ecosystem to enable the textile-to-textile recycling.  The creation of Swiss Textile Recycling Ecosystem marks a key milestone in the upscaling of Worn Again Technologies’ recycling process technology with technology scale-up partner Sulzer Chemtech in Winterthur. It also supports its ambition to create a circular economy where non-reusable, hard-to-recycle textiles can be reintroduced into supply chains to become new fibers.

To cause a paradigm shift in the fashion industry and realize true circularity requires all members of the value chain to be on the same page and working towards the same goals. The Swiss Textile Recycling Ecosystem is a network comprising fabric and textile manufacturers, waste collectors and sorters, as well as retailers, brand owners and technology providers – all coordinated by Swiss Textiles. All these parties will cooperate to make their shared vision of a more sustainable fashion industry a reality, where used textiles can be recycled into new textiles.

TEXAID as a stakeholder in the Swiss Textile Recycling Ecosystem and as leading textile recycling company with over 40 years of experience will support the initiative through collecting, sorting, pre-processing and providing pre- and post-consumer feedstock to the Demonstration Plant. At its headquarters in Schattdorf (CH), TEXAID will investigate possibilities to automate the sorting and pre-processing of textile feedstock for recycling. Currently, TEXAID processes more than 80,000 tons of end-of-use textiles and footwear every year all over Europe and the US.