From the Sector

CHT and Fulgar have collaborated to support the goal of reducing the carbon footprint with an effective and sustainable solution for the textile market.

Combining FULGAR’s circular economy ready yarns with CHT’s resource-saving dyeing techniques significantly reduces the usage of natural resources and leads to lower environmental impact and ultimately a lower carbon footprint. The combined process needs less water, uses less energy, and saves time while meeting the color fastness standards for finished textile products.

The combination of 100 % biobased polyamide EVO® by FULGAR yarns with CHT sustainable dyeing application can save water up to 64 %, energy use up to 50 % and process time up to 50 %, when compared to standard dyeing processes. Sustainable dyeing of EVO® is promoted using CHT’s soy-based dyeing auxiliary SARABID TS 300. SARABID TS 300 has accredited a C2C Certified Material Health Certificate at Gold level and USDA Certified Biobased Product Certification.

EVO® by FULGAR, the totally renewable yarn based on castor plants, does not require high amounts of water - 4 times less compared to cotton. In addition to the sustainable aspect, EVO® by FULGAR offers characteristics like lower fiber weight, particular moisture management and higher stretch often without the need for elastomer fiber. This helps to avoid material mixes for better recycling opportunities. EVO® provides greater user comfort, mainly for performance and casual apparel.

CELLIANT® with REPREVE®, introduced by Hologenix with global textile solutions provider UNIFI®, makers of REPREVE®, has been awarded a Top 5 Selection in the Accelerated Eco category of the Spring/Summer ISPO Textrends 2025 Awards.

Last fall CELLIANT with REPREVE was also awarded a Selection in the Fibers & Insulation Category of the ISPO Textrends Fall/Winter 2024/2025. In addition, in the spring the fiber was shortlisted in the Drapers Sustainable Fashion 2023 Awards in the Sustainable Textile Innovation category.

Twice a year, ISPO recognizes innovative fibers, fabrics and components that are used to manufacture sports apparel. Both companies are excited that this innovation, whereby CELLIANT infrared (IR) technology is embedded into REPREVE, a brand of recycled fiber, has achieved these honors. CELLIANT with REPREVE is a performance fiber made from recycled materials that have been enhanced with IR technology to provide wellness benefits to the consumer.  

CELLIANT is a natural blend of IR-generating bioceramic minerals, which, when embedded into textiles, allows them to convert body heat into infrared energy, returning it to the body and temporarily increasing local circulation and cellular oxygenation. This aids in muscle recovery, increases endurance, and improves overall performance in healthy individuals, among other benefits.
 
REPREVE recycled performance fiber consists of high-quality fibers made from 100% recycled materials, including post-consumer plastic bottles and pre-consumer waste. It is also certified and traceable with UNIFI’s U TRUST® verification and FiberPrint™ technology, which provide assurance that the product comes from recycled materials. Compared to virgin fiber, REPREVE helps to offset the use of petroleum, conserving water and energy and emitting fewer greenhouse gasses.

This award marks the third year in a row that Hologenix has had its CELLIANT technology recognized in the ISPO Textrends Awards. CELLIANT in pure white was a Top Ten Winner in 2022. The prior year, CELLIANT Viscose was a Selection Winner as well. 

B.I.G. Yarns unveils its new “SustainableYarns” platform, with Clerkenwell Design Week visitors the first to be invited to get on board and focus on what matters most for the design and manufacture of sustainable soft floorings.

The expert in polyamide (PA) 1 step 3 ply yarns offers a range of options for manufacturers to introduce sustainable yarns into carpet solutions and reach sustainability targets faster and more efficiently.

The Sustainable Yarns range creates opportunities to design with recycled content yarn (EqoCycle), to work with renewable resources (EqoBalance), and, following the launch of new polyamide 6 (PA6) EqoYarn at Clerkenwell Design Week, to also leverage the low-impact value chain.

New addition EqoYarn is a new low-impact PA6 carpet yarn based on the most recent innovations in polymer production, which enable yarn manufacturers to lower their carbon footprint by nearly 50% and give carpet manufacturers more options to reduce their impact.

For its EqoYarn Bulk Continuous Filament (BCF) production process, B.I.G. Yarns has selected the few best-in-class partners that have made major steps forward in terms of sustainability, and reduced their greenhouse gas emissions thanks to continuous investments in process efficiency, green energy, heat optimization and waste reduction. The result is EqoYarn with a carbon footprint of 4 kg CO2 eq/kg yarns, which is a CO2 reduction of up to 50% compared to conventional PA yarns.

EqoBalance PA6 yarns enable customers to reach an even higher CO2 reduction of up to 75%. Manufactured with polymers made from renewable resources such as organic waste from cooking oil instead of virgin or fossil feedstock, these yarns have a carbon footprint of 1.98 kg CO2 eq./ kg yarns. They help carpet manufacturers to create products with an extremely low carbon footprint.

EqoCycle PA6 yarns are fully recyclable and incorporate 75% recycled content originating from recycled and regenerated PA6 granules. With a carbon footprint of 4.64 kg CO2 eq./ kg yarns, they deliver the same high-quality performance of virgin PA6 yarn with the benefit of 37% CO2 reduction. EqoCycle yarns offer carpet manufacturers a sustainable alternative to help reduce the ecological footprint of their products and move towards a circular economy without jeopardizing the end-product quality.

In addition to the different CO2-reducing options, B.I.G. Yarns’ customers can access an unlimited colour range to elevate their designs. Its BCF technology for polyamide yarns, twisted and heat-set yarns, one-colour to multi-colour, between 650 and 15000 dTex, along with its colour studio, are available to support their creation of customised collections.

After participating in industry trials, Renewcell and TextileGenesis™ have the intention to establish an agreement for full pulp-to-retail traceability for Renewcell’s CIRCULOSE® recycled raw material across the entire textile supply chain, announcing it at Challenge the Fabric (Milan, Italy).

Renewcell uses a patented process to breakdown and recycle cotton and other cellulosic textile waste, such as worn-out jeans and production scraps, to create CIRCULOSE®, a biodegradable raw material that can be used to create viscose, lyocell, modal, acetate and other man-made cellulosic fibers. These regenerated fibers are then spun into yarns, woven or knitted into fabrics before being cut and sewn into new high-quality textile products.
 
With TextileGenesis™, Renewcell will be able to share real-time digital traceability with its customers and supply chain partners.

• The platform uses digital tokens to ensure a secure chain of custody for all supply chain processes from raw materials to retail.
• The company’s “fiber-forwards” traceability captures real-time shipments; its Fibercoins™ digital tokens verify point of origin and eliminate “double counting” of sustainable materials.
• Its AI (augmented intelligence) engine verifies transactions between supply chain partners.  

 
Furthermore, TextileGenesis™ is already partnering with fiber producers including Lenzing AG, Eastman, and Birla Cellulose.

• Revenue grows to EUR 623.1 mn – fiber sales recovered over the course of the quarter
• EBITDA and net result for the period down compared with the first quarter of 2022
• Cost reduction program of more than EUR 70 mn being implemented according to plan
• Production of TENCEL™ brand modal fibers successfully launched in China
• Lenzing confirms guidance for 2023

The business performance of the Lenzing Group during the first quarter of 2023 largely reflected market trends. However, after the market environment had deteriorated significantly in the third and fourth quarters of the previous year, signs of recovery emerged during the first quarter in terms of demand as well as raw material and energy costs. Textile fibers recorded moderate but steadily improving demand. Business with fibers for nonwovens and with dissolving wood pulp performed better than expected. Raw material and energy costs were still at an elevated albeit decreasing level.

Outlook
The war in Ukraine and the more restrictive monetary policy pursued by many central banks in order to combat inflation are expected to continue to influence global economic activity. The IMF warns that risks remain elevated overall and forecasts growth of 2.8 and 3 percent for 2023 and 2024 respectively. The currency environment is expected to remain volatile in the regions relevant to Lenzing.

This market environment continues to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing. However, the outlook has brightened somewhat recently.

Demand picked up tangibly after the Chinese New Year. As a consequence, capacity utilization improved and stocks were further reduced both at viscose producers and at downstream stages of the value chain.

In the trend-setting market for cotton, signs are emerging of a further buildup of stocks in the current 2022/23 crop season. Initial forecasts for 2023/24 anticipate a more balanced relationship between supply and demand.

However, despite signs of recovery in both demand and raw material and energy costs, earnings visibility remains limited overall.

Lenzing is fully on track with the implementation of the reorganization and cost reduction program. These and other measures are aimed at positioning Lenzing in the best possible way for the expected market recovery.

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 “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

The successful implementation of the key projects in Thailand and Brazil as well as the investment projects in China and Indonesia will further strengthen Lenzing’s positioning in this respect.

Taking into account the aforementioned factors and assuming a further market recovery in the current financial year, the Lenzing Group continues to expect EBITDA in a range between EUR 320 mn and EUR 420 mn for 2023.

Viscose speciality fibre manufacturer Kelheim Fibres, nonwoven producer Sandler, and hygiene product manufacturer pelzGROUP have jointly developed a new panty liner that is plastic-free according to the European Single-Use Plastics Directive (SUPD). This innovative solution is a step towards reducing the amount of plastic in hygiene products – and thus also a contribution to tackling the problem of plastic pollution.

According to a UNEP study on marine litter and microplastics, eight million tons of plastic end up in the oceans every year. A significant portion of this pollution comes from single-use plastic products, including conventional period products such as pads or panty liners.

The partnership between the three companies was formed under the Open Innovation principle, which allowed for creative idea exchange and facilitated the development of an innovative product. According to Jessica Zeitler, R&D Specialist at Sandler, “Our collaboration with Kelheim Fibres and pelzGROUP is a great example of how companies can work together to create solutions that benefit both the environment and consumers. We are proud to be part of this project and the opportunities it offers.”

For hygiene product manufacturer pelzGROUP, it is important to combine sustainability and performance to achieve broad acceptance in the market. “Our panty liner meets the strict requirements of the European Single-Use Plastics Directive (SUPD) while also matching the performance of conventional synthetic products. At the same time, our new panty liner has a completely European supply chain. This means short distances and therefore low CO2 emissions, and – especially in times of global disruption – reliability for our customers,” emphasizes Dr. Henning Röttger, Head of Business Development at pelzGROUP.

"Our viscose speciality fibres are an environmentally friendly and high-performance alternative to synthetic materials," says Dominik Mayer, Project Manager Fibre & Application Development at Kelheim Fibres. "They are at the very beginning of the product value chain and yet have an enormous impact on the functionality of the end product. Open innovation allows us to bring all partners in the value chain to the table, to find the best solution together in a very short time and bring it to commercialisation - the collaboration with Sandler and pelzGROUP is an important milestone in our AHP journey."

• Less C0₂ emissions + sustainable + recyclable

Sustainability first - this is the principle of the Institut für Textiltechnik (ITA) of RWTH Aachen University at JEC World 2023. ITA combines various lightweight construction technologies to reduce C0₂ and to use renewable and/or recyclable raw materials.

ITA presents innovations in the production of reinforcing fibres and in the textile processing of high-modulus fibres. It also shows the impregnation of high-modulus fibres with thermosetting and thermoplastic matrix systems.  

ITA will be exhibiting in hall 6 together with Textechno, Mönchengladbach, Germany, textile testing equipment and Maruhachi Fukui, Japan, Thermoplastic Composite Material Systems. The Interreg AACOMA project will also be presented at the stand. 

On the sidelines of the Intertextile Shanghai fair, the Swedish textile-to-textile recycling innovator Renewcell and the leading Chinese viscose manufacturer Tangshan Sanyou announced the next step in their partnership to make fashion circular that stretches back to 2018.

The two companies’ new shared ambition is to offer manufacturers and brands Circulose® viscose fibers made from 100% recycled textiles in commercial quantities starting in 2024. The collaboration has been facilitated by Ekman Group, Renewcell’s exclusive global trading partner.

“I am very happy to announce this acceleration of our long-standing partnership with Tangshan Sanyou. They were the first commercial producer of Circulose®-based fibers in the world, and the first to commit to sourcing significant volumes from us. Now, they aim to also be the first to commercialize 100% Circulose® content fibers” said Patrik Lundström, CEO of Renewcell, adding "I applaud Tangshan Sanyou’s vision and support to scaling next gen raw materials like Circulose®.”

The announcement, which follows the recent start of deliveries of 100% recycled textile Circulose® pulp from Renewcell’s newly opened Renewcell 1 recycling plant, is the result of successful validation of Circulose®’s quality in production at Tangshan Sanyou’s commercial-scale manufacturing lines. Tangshan Sanyou would strive to finish the mission of producing commercial volumes of 50% Circulose® content fibers during 2023 and work towards achieving the delivery of 100% Circulose® content branded viscose fibers to selected fashion brands and manufacturers starting in 2024. The two companies will cooperate to market the fibers globally using Renewcell’s Circulose® ingredient brand name.

Mr. Zhang Dongbin, Executive Vice General Manager of Tangshan Sanyou Chemical Fiber, says, "Through the collaboration with Renewcell, we have achieved to use Circulose® made from recycled cotton in the production of our viscose fibers, which is great beneficial to improving resource utilization efficiency and lowering carbon footprint of the industry. It has brought a huge impact in the sustainable fashion industry. We will continue putting efforts in forming good interaction between consumers, brands and enterprises, convey the concept of circular sustainable fashion, promote the greening of textile industry, and ensure a more sustainable way to ensure the sustainable development of the textile industry. Protecting the global ecological environment by applying sustainable solutions is our common goal."

Freudenberg Performance Materials Apparel is expanding its Super Elastic Interlinings Range with the introduction of the apparel industry’s first 100% recycled thermoplastic elastomers (rTPE) base content interlining series. In recognition of the growing use of elastic interlinings in apparel and building on the principles of Freudenberg Performance Materials´ Apparel’s House of Sustainability, these new products speak for high-quality and sustainable solutions.

The new, 100% rTPE base content interlinings are offered in 40-90 g/m2 weights, with wide applicability – from lightweight knit fabrics with applications in leggings and sports bras to elastic woven fabrics that require medium-to-heavy weights, such as denim, maternity clothes, or casual wear. Sustainable without compromising on quality, the new interlinings offer exceptional elasticity and retain excellent recovery capabilities.

The 100% rTPE base content interlinings reduce the need for virgin materials in apparel while also reducing the demand for the extractive practices necessary to produce such materials. Furthermore, the use of recycled components reduces materials in landfills and oceans, in consideration of full-garment lifecycle management.

• Sales increase of 12.8% to €1,135.9 million
• EBITDApre improves by 23.4% to €172.8 million
• Net financial debt reduced from €206.3 million to €170.8 million
• Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon
The increase in EBITDApre by €32.8 million to €172.8 million was mainly driven by the Graphite Solutions business unit (+€30.6 million). The Composite Solutions (+€7.9 million) and Process Technology (+€5.2 million) business units also contributed to the improvement in profitability. Although the Carbon Fibers business unit was able to offset the loss of a lucrative supply contract with an automotive customer in terms of sales with new orders from the wind energy sector, but these sales showed a significantly lower margin level. Accordingly, EBITDApre of this business unit decreased by €11.2 million to €43.2 million (previous year: €54.5 million).

Taking into account net one-off effects and non-recurring items of €8.9 million (previous year: €30.7 million) and depreciation and amortization of €60.8 million (previous year: €60.3 million), reported EBIT amounted to €120.9 million (2021: €110.4 million). This corresponds to an increase of 9.5%.
As a result of the pleasing business performance, the successes of the transformation and non-operating one-off effects and non-recurring items (€8.9 million), a positive Group’s net profit of €126.9 million (previous year: €75.4 million) was achieved in 2022. It should be noted that consolidated net income includes tax income of €31.3 million (previous year: minus €6.2 million). This development is mainly due to valuation adjustments on deferred tax assets amounting to €41.8 million, based on the good business development combined with positive earnings prospects in the USA. Current tax expenses amounted to €11.4 million in 2022 (previous year: €11.9 million).
 
Net financial debt and equity
In fiscal 2022, net financial debt was reduced significantly by 17.2% to €170.8 million compared with the end of 2021 (€206.3 million). The main reason for the decrease is the repayment of financial liabilities in the amount of €29.0 million. Free cash flow decreased from €111.5 million to €67.8 million in 2022. In this context, it should be taken into account that in the previous year, free cash flow included cash inflows of €30.6 million from the sale of land not required for operations.
After 2021, the equity ratio increased again to 38.5% at the end of 2022 (previous year: 27.0% I 2020: 17.5%). Due to the significantly improved earnings situation, the return on capital employed (ROCE) also rose from 8.0% in the previous year to 11.3% in 2022.
 
Development of the business units
As the largest business unit with a share of Group sales of around 45%, Graphite Solutions contributed €512.2 million to Group sales in 2022 (previous year: €443.6 million). The 15.5% increase in sales is based in particular on the positive development of the important market segments Semiconductor & LED and Industrial Applications. Compared to the previous year, sales to customers in the semiconductor & LED industry increased by 49.6%, driven in particular by increasing demand of materials and components for the production of silicon carbide-based high-performance semiconductors. Combined with the increase in sales, GS EBITDApre improved by 34.8% to €118.5 million (previous year: €87.9 million). Accordingly, the EBITDApre margin increased from 19.8% to 23.1%. Volume effects due to higher sales as well as margin effects from the product and customer mix had a positive impact.  Especially the higher sales with customers from the semiconductor industry should be taken into account.

In fiscal 2022, the Process Technology (PT) business unit benefited from the good order situation in recent months and increased its sales by 21.9% to €106.3 million. The main clients of the PT business unit are customers from the chemical industry. The positive development of PT is also reflected in EBITDApre which rose from €4.7 million in the same period of the previous year to €9.9 million. Higher capacity utilization and the successful passing on of increased raw material costs led to an improvement in the EBITDApre margin from 5.4%  to 9.3% in 2022. Energy costs play only a minor role at PT.

In the reporting year, sales of the Carbon Fibers (CF) business unit increased by 3.0% to €347.2 million (previous year: €337.2 million). It should be noted that CF had to absorb the scheduled expiry of a supply contract with an automotive customer at the end of June 2022. These sales were offset by orders from the wind industry and Industrial Applications. However, EBITDApre in the CF division decreased by 20.7% year-on-year to €43.2 million (previous year: €54.5 million). This earnings development is mainly attributable to the expiry of the high-margin automotive contract. In addition, a special effect from energy derivatives in the amount of minus €9.2 million impacted CF earnings in the 1st quarter of 2022. However, the implemented energy price hedges enabled the business unit to maintain its production capability throughout the entire fiscal year, that the weakening of earnings was mitigated.
The Composite Solutions (CS) business unit confirmed its upward trend in fiscal 2022 with a 25.0% increase in sales to €153.1 million (previous year: €122.5 million). The most important market segment for the CS business unit is the automotive industry. In line with the highly positive business performance, EBITDApre of CS increased by 65.3% to €20.0 million (previous year: €12.1 million). This figure also includes non-recurring positive effects of €3.7 million from compensation payments received from automotive customers for premature project terminations.

The non-operating Corporate segment contributed €17.1 million to Group sales (previous year: €16.5 million). In line with continued strict cost management as part of the transformation, EBITDApre improved slightly to minus €18.8 million (previous year: minus €19.2 million).

Outlook
"If we summarize our expectations for the 2023 financial year, it can be summed up under the guiding principle: -invest and stabilize," CFO Thomas Dippold comments on the forecast for 2023.
For the fiscal year 2023 we continue to expect solid demand for our materials and products. In particular, we expect that the demand for special graphite products for high-temperature processes, e.g. in the semiconductor, solar and LED industries, will continue to increase. On the other hand, the first-time full-year effect from the expiry of a supply contract with an automotive customer in the carbon fiber segment and the sale of our business in Gardena (USA) will burden sales development.

"The increasing demand for high-performance semiconductors for electromobility or renewable forms of energy will also boost the demand of components made of graphite for the production of these semiconductors. To benefit from the related opportunities, we will expand our production capacities in this segment and invest a double-digit million amount in 2023 . Based on existing supply relationships, we will implement this investments partly together with our customers," explains CEO Dr. Torsten Derr.
On the cost side, we expect energy and raw material prices to remain at a high level in 2023, along with significant wage increases. Our forecast implies that higher factor costs can be partially passed on to customers through price initiatives.
Based on the assumptions described, we expect Group sales to be at prior-year level and EBITDApre to be between €160 million and €180 million in the financial year 2023.
In the medium term (until 2027), we anticipate a further improvement in our EBITDApre margin between 18% and 19%.