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12.10.2022

PCG completes acquisition of Perstorp

Perstorp has been acquired by PETRONAS Chemicals Group Berhad (PCG), Malaysia´s leading integrated chemicals provider and part of PETRONAS Group, on 11 October 2022.

In May this year, PCG signed a Securities Purchase Agreement with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm, to acquire the entire equity interest in Perstorp, a leading sustainability-driven global specialty chemicals company based in Sweden. With the completion of the acquisition, Perstorp is now PCG’s wholly-owned subsidiary.

Perstorp has been acquired by PETRONAS Chemicals Group Berhad (PCG), Malaysia´s leading integrated chemicals provider and part of PETRONAS Group, on 11 October 2022.

In May this year, PCG signed a Securities Purchase Agreement with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm, to acquire the entire equity interest in Perstorp, a leading sustainability-driven global specialty chemicals company based in Sweden. With the completion of the acquisition, Perstorp is now PCG’s wholly-owned subsidiary.

PCG will strive to ensure the timely completion of Perstorp’s growth projects in a safe and cost-effective manner. Perstorp has several projects lined up in the near future, including the launch of Project Air which aims to reduce carbon emissions through the production of sustainable methanol. Recently, The European Union Innovation Fund selected Project Air, as one of the 17 large-scale green tech projects, which together will be granted more than EUR 1.8 billion. Project Air is a gamechanger for the chemical industry, moving from fossil raw materials to recycled and bio-based feedstock, thereby enabling sustainable chemical products to a large variety of industries and end products. At full capacity, it will reduce global CO2 emissions with close to 500,000 metric tons per year from today’s levels, corresponding to one percent of current emissions in Sweden.

More information:
Perstorp PCG
Source:

EMG for Perstorp

04.10.2022

Hexcel HexPly® M9.6 Prepregs receive Bureau Veritas Type Approval

Hexcel Corporation has received Type Approval for its HexPly® M9.6GF prepreg products from Bureau Veritas (BV), a leader in testing, inspection, and certification services.

This certification enables carbon fiber-reinforced epoxy prepregs to be used in the production of parts for all BV-approved marine vessels. It also guarantees the quality, performance and consistency of the prepregs for ship and boat builders.

BV-approved HexPly M9.6GF prepregs can be reinforced with unidirectional, non-crimp and twill-weave fabrics. They are particularly suitable for use in the manufacture of masts and other large structural components for wind-assisted ship propulsion (WASP). To reduce reliance on engines and cut fuel usage, WASP vessels harness the power of ocean winds often using large carbon fiber-reinforced masts flying durable composite solid sails.

Hexcel Corporation has received Type Approval for its HexPly® M9.6GF prepreg products from Bureau Veritas (BV), a leader in testing, inspection, and certification services.

This certification enables carbon fiber-reinforced epoxy prepregs to be used in the production of parts for all BV-approved marine vessels. It also guarantees the quality, performance and consistency of the prepregs for ship and boat builders.

BV-approved HexPly M9.6GF prepregs can be reinforced with unidirectional, non-crimp and twill-weave fabrics. They are particularly suitable for use in the manufacture of masts and other large structural components for wind-assisted ship propulsion (WASP). To reduce reliance on engines and cut fuel usage, WASP vessels harness the power of ocean winds often using large carbon fiber-reinforced masts flying durable composite solid sails.

HexPly M9.6 prepregs were recently used to manufacture the mast for the Chantiers de l’Atlantique Silenseas project. The HexPly M9.6 prepregs satisfied all the requirements of the Silenseas consortium’s mast-section manufacturers for quality, mechanical performance, and processing characteristics, while also proving to be cost effective.

Source:

Hexcel Corporation / 100% Marketing

30.09.2022

Carbios published 2022 half-year results

Carbios published its operating and financial results for the first half of 2022. The financial statements as of June 30, 2022 were approved by Carbios' Board of Directors.

Carbios published its operating and financial results for the first half of 2022. The financial statements as of June 30, 2022 were approved by Carbios' Board of Directors.

  • Project to build the world's first PET biorecycling plant, in partnership with Indorama Ventures, the world's largest manufacturer of recycled PET: Establishment in France with strong backing from national government and the Grand-Est Region
  • On track to bring recycled PET from Carbios' proprietary innovation process to market by 2025
  • Fully operational industrial demonstration plant and step-by-step technological validation of the scale-up of the industrial solution designed and developed by Carbios
  • Launch of a textile consortium in partnership with On, Patagonia, PUMA and Salomon
  • Scientific article in the prestigious Biophysical Journal
  • Carbios strengthens its Governance and Management team
  • Carbios enhance its financial structure, banking the €30 million loan from the European Investment Bank (EIB)
  • Carbios Group's net cash position: €121 million at June 30, 2022

See the full report here.

More information:
Carbios financial year 2022
Source:

Carbios

(c) JEC Group
23.09.2022

JEC Forum DACH 2022 announces program

This year’s JEC forum DACH, taking place from November 29 to 30, 2022, is strategically located in a composites « golden triangle », between Munich, Augsburg and Ingelstadt. This dynamic area, at the heart of the Bavarian region is known to be hosting major companies such as Airbus, Faurecia, Kuka, Siemens, Voith Composites, KraussMaffei Technologies, Cevotec, Munich Composites, or Premium Aerotec, thus promising a two-days opportunity to meet with key decision makers.

The digital platform available to all participants prior to the event enables to schedule one to one business meetings between buyers and suppliers from the whole value chain of composites, as well as informal networking during breaks, lunches and evening event.

In total, 500 attendees, suppliers and buyers, from Germany, Austria and Switzerland, are expected to participate to JEC Forum DACH 2022.

Business meetings event*
DAY 1 – November 29, 2022:

This year’s JEC forum DACH, taking place from November 29 to 30, 2022, is strategically located in a composites « golden triangle », between Munich, Augsburg and Ingelstadt. This dynamic area, at the heart of the Bavarian region is known to be hosting major companies such as Airbus, Faurecia, Kuka, Siemens, Voith Composites, KraussMaffei Technologies, Cevotec, Munich Composites, or Premium Aerotec, thus promising a two-days opportunity to meet with key decision makers.

The digital platform available to all participants prior to the event enables to schedule one to one business meetings between buyers and suppliers from the whole value chain of composites, as well as informal networking during breaks, lunches and evening event.

In total, 500 attendees, suppliers and buyers, from Germany, Austria and Switzerland, are expected to participate to JEC Forum DACH 2022.

Business meetings event*
DAY 1 – November 29, 2022:

  • 10.15 – 11.45 am – “Keynote and Plenary Conference Session : Market Developments
  • Moderator: Dr. Michael Effing, AVK
  • 4.0 – 5.30 pm – “Keynote and Plenary Conference Session: Recycling of Composites

DAY 2 – November 30, 2022:

  • 9.00– 10.30 am – “Keynote and Plenary Conference Session: Sustainability of Composites
  • 3.15 – 4.45 pm – “Keynote and Plenary Conference Session: Innovations: Raw Materials, Processes and Applications

Celebrating composites innovation through awards and startup competition

  • The AVK Innovation Awards: Goal is to promote and give prominence to new products/components and applications made from fiber-reinforced plastics (FRP) and promote new processes and methods for manufacturing FRP products.
  • Startup Booster competition: The contest is open to entrepreneurs, SMEs, startups and academic spinoffs building innovative composite and advanced materials projects that are based in Germany, Austria or Switzerland (the DACH region).

*You can view the full program here.

Source:

JEC Group

(c) Texaid
21.09.2022

TEXAID installs intelligent sorting stations from circular.fashion

Digital Product Passports can now be processed at TEXAID’s largest sorting facility, thanks to circular.fashion’s intelligent sorting stations, which use RFID and NFC technology to improve the quality and consistency of manual sorting.

Digital Product Passports (DPP) have been recognised by the EU as an enabler for circular fashion and textiles. Technology company circular.fashion has been a leader in this effort, releasing the circularity.ID in 2018 and developing Intelligent Sorting Stations to bring ID based sorting to the textile reuse and recycling industry.

ID based sorting optimises the manual sorting process for reuse and recycling by giving sorters data to make decisions more accurately and consistently. TEXAID has, by adopting this technology, increased Europe’s capacity to process DPPs.

Digital Product Passports can now be processed at TEXAID’s largest sorting facility, thanks to circular.fashion’s intelligent sorting stations, which use RFID and NFC technology to improve the quality and consistency of manual sorting.

Digital Product Passports (DPP) have been recognised by the EU as an enabler for circular fashion and textiles. Technology company circular.fashion has been a leader in this effort, releasing the circularity.ID in 2018 and developing Intelligent Sorting Stations to bring ID based sorting to the textile reuse and recycling industry.

ID based sorting optimises the manual sorting process for reuse and recycling by giving sorters data to make decisions more accurately and consistently. TEXAID has, by adopting this technology, increased Europe’s capacity to process DPPs.

The installation and testing of TEXAID’s new Intelligent Sorting Stations was completed successfully shortly before the holiday period. Initial test results indicate that ID based sorting can make sorting decisions more reliable and more consistent. The team also sees a potential for ID based sorting to reduce training costs for new employees and maximise the value of their sorting decisions. This advancement was made through the CIRTEX project, funded through the KMU Innovativ funding programme from the German Federal Ministry of Education and Research.

The Intelligent Sorting Stations at TEXAID are now operational, and brands and retailers have the ability to adopt the circularity.ID as a Digital Product Passport and have textile products returned to TEXAID for ID based sorting.

13.09.2022

New technology purifies wastewater from textile dyeing by using graphene

The substance graphene can become increasingly important as a component in textile catalysts when purifying water from textile dyeing as has been shown in a recently completed doctoral project at the University of Borås.

In his project, Milad Asadi, a new doctor in Textile Technology, has modified conventional yarn by encapsulating iron particles in graphene and developed a multifunctional smart e-textile. The focus was on developing a method for purifying wastewater from textile dyeing. The smart e-textile acts as a catalyst that causes the substance hydrogen peroxide to be formed, which is needed in order to break down pollutants in wastewater.

The project has generated a complete textile reactor for the treatment of wastewater through the so-called electro-Fenton technology, which is mainly used industrially to purify wastewater. The novelty of the technology is to use the properties of both graphene and iron, which is the main catalyst.

The substance graphene can become increasingly important as a component in textile catalysts when purifying water from textile dyeing as has been shown in a recently completed doctoral project at the University of Borås.

In his project, Milad Asadi, a new doctor in Textile Technology, has modified conventional yarn by encapsulating iron particles in graphene and developed a multifunctional smart e-textile. The focus was on developing a method for purifying wastewater from textile dyeing. The smart e-textile acts as a catalyst that causes the substance hydrogen peroxide to be formed, which is needed in order to break down pollutants in wastewater.

The project has generated a complete textile reactor for the treatment of wastewater through the so-called electro-Fenton technology, which is mainly used industrially to purify wastewater. The novelty of the technology is to use the properties of both graphene and iron, which is the main catalyst.

“Previous research has mainly been about the treatment of wastewater by using chemicals to break down the textile dyes. My project is the first where graphene, which is electrically conductive, is used to encapsulate iron. The e-textile can also be used several times, unlike when chemicals are used and which are then rinsed off. The challenge in the project was to scale up the technology so that the treated yarn can be fed into automatic knitting machines”, explained Milad Asadi.

The e-textile catalyst can be reused and hydrogen peroxide is formed internally inside the reactor, which reduces the use of biological catalysts, making the technology more sustainable compared to chemical methods.

Source:

University of Borås - The Swedish School of Textiles

(c) Chetna Organic / GoodTextiles Foundation
08.09.2022

GoodTextiles Foundation supports Indian village with cows

The GoodTextiles Foundation, initiated by Dibella, has implemented a new support project in India: Each family of a small village community of organic farmers received a cow from the donations received. The herd of fifty animals helps with farming, gives milk, produces sufficient natural fertilizer and should soon provide higher crop yields and a better income.

In 2016, Dibella established the GoodTextiles Foundation with the aim of making textile value chains more sustainable. It raises funds and implements its own support projects to benefit people at all stages of the textile economy. The most recent project, "One cow for every family," has now taken the first, important intermediate step: Fifty cows arrived in the small village of Aliguda Village (Utnoor Division, Adilabad, Telangana, India) at the beginning of June 2022.

The GoodTextiles Foundation, initiated by Dibella, has implemented a new support project in India: Each family of a small village community of organic farmers received a cow from the donations received. The herd of fifty animals helps with farming, gives milk, produces sufficient natural fertilizer and should soon provide higher crop yields and a better income.

In 2016, Dibella established the GoodTextiles Foundation with the aim of making textile value chains more sustainable. It raises funds and implements its own support projects to benefit people at all stages of the textile economy. The most recent project, "One cow for every family," has now taken the first, important intermediate step: Fifty cows arrived in the small village of Aliguda Village (Utnoor Division, Adilabad, Telangana, India) at the beginning of June 2022.

"Some of our organic cotton is grown on the farms of the village community managed by the smallholder organization Chetna Organic. During the filming of the German documentary "plan b", the farmers told us that they need more natural fertilizer to cultivate their fields ecologically and economically. The biggest wish of each family is therefore a cow. However, they cannot afford this because of the high price of the equivalent of 300 euros. That's how the idea for our next sponsorship project was born," reports Ralf Hellmann, managing director of Dibella and member of the foundation's board of directors.

In addition to the most important reason for purchase - the production of fertilizer - the cows also serve as livestock. They are harnessed in front of the plow and make the strenuous work of tilling the soil easier for the farmers. As draft animals they serve to transport heavier loads, and as milk suppliers they contribute to a family's food supply. Surplus milk that is not needed in the household also provides families with an important additional income through sale.

More information:
GoodTextiles Dibella donations cotton
Source:

GoodTextiles Foundation

(c) BTMA by AWOL Media
08.09.2022

Shelton Vision presents new fabric inspection technique

A new fabric inspection technique for accurately detecting the most subtle of defects on patterned fabrics during high speed production has been developed by BTMA member Shelton Vision, of Leicester, UK.

The patent-pending system has been integrated into the company’s WebSpector platform and validated through factory trials on a purpose-built full scale in-house demonstration system with sophisticated fabric transport capabilities. As a result, a first system has already been ordered by a manufacturer of both plain and patterned fabrics, including camouflage, in Colombia. This follows the successful conclusion of a 21-month Innovate UK project in which techniques for the resolution of complex pattern deformations were developed by machine vision and computer scientists in the company, backed up by the machine vision and robotics department at Loughborough University.

A new fabric inspection technique for accurately detecting the most subtle of defects on patterned fabrics during high speed production has been developed by BTMA member Shelton Vision, of Leicester, UK.

The patent-pending system has been integrated into the company’s WebSpector platform and validated through factory trials on a purpose-built full scale in-house demonstration system with sophisticated fabric transport capabilities. As a result, a first system has already been ordered by a manufacturer of both plain and patterned fabrics, including camouflage, in Colombia. This follows the successful conclusion of a 21-month Innovate UK project in which techniques for the resolution of complex pattern deformations were developed by machine vision and computer scientists in the company, backed up by the machine vision and robotics department at Loughborough University.

Restrictions
Traditional methods for defect detection rely on human inspection which is ineffective, with detection rates under 65%, while the Shelton WebSpector machine vision system offers a sophisticated platform for automated defect detection of over 97%, but until now has been restricted to plain textiles.

While pattern matching and neural network approaches have previously been tried for patterned textiles, they have failed to provide a practical solution due to the extreme complexity associated with pattern matching on deformable substrates like textiles, as well as the time required to train a neural network for each pattern type.

Challenges
The challenge is that fabrics are not rigid and can be creased or stretched and are also subject to local distortion,” says Shelton Vision Managing Director and CEO Mark Shelton. “As a result, inspection without the technique we have developed, would lead to thousands of false positives. Our sophisticated pattern inspection software techniques ensure a clean image, allowing the detection of faults on fabrics running at speeds of up to a hundred metres a minute.”

The full system consists of:

  • A camera and lighting system for optimum image capture at high speed and associated image processing hardware.
  • Self-training software utilising statistical analysis to automate the system configuration for new textile products.
  • An advanced suite of defect detection algorithms for the detection of all textile defect types.
  • An AI-driven defect classification system which learns and automates defect naming in real time, as well as a real time defect grading capability based on client decision rules.
  • A system for recording and retrieving complete roll map images for subsequent review and quality control.

The generation of textile roll maps with complete defect data allows for an optimised textile cut plan, improved downstream processing and quality assurance.

Source:

BTMA by AWOL Media

02.09.2022

RGE: Closed-loop urban-fit textile-to-textile recycling solutions in Singapore

  • Aims to tackle the immense textile waste generated in urban environments, on the back of import bans of waste materials
  • Addresses the shortcomings of current textile recycling technologies, which are unsuitable for urban settings due to the use of heavy chemicals
  • Technologies developed by the newly-formed RGE-NTU Sustainable Textile Research Centre will be test-bedded in RGE’s pilot urban-fit textile recycling plant, projected for completion as early as 2024

Royal Golden Eagle (“RGE”), a global group of resource-based manufacturing companies, which includes a world-leading viscose fibre producers Sateri and Asia Pacific Rayon (APR), is developing urban-fit, closed-loop textile-to-textile recycling solutions, through the newly-formed RGE-NTU Sustainable Textile Research Centre (RGE-NTU SusTex). This is a five-year research collaboration between RGE and Nanyang Technological University, Singapore (“NTU”), to accelerate innovation in textile recycling that can be deployed in urban settings.

  • Aims to tackle the immense textile waste generated in urban environments, on the back of import bans of waste materials
  • Addresses the shortcomings of current textile recycling technologies, which are unsuitable for urban settings due to the use of heavy chemicals
  • Technologies developed by the newly-formed RGE-NTU Sustainable Textile Research Centre will be test-bedded in RGE’s pilot urban-fit textile recycling plant, projected for completion as early as 2024

Royal Golden Eagle (“RGE”), a global group of resource-based manufacturing companies, which includes a world-leading viscose fibre producers Sateri and Asia Pacific Rayon (APR), is developing urban-fit, closed-loop textile-to-textile recycling solutions, through the newly-formed RGE-NTU Sustainable Textile Research Centre (RGE-NTU SusTex). This is a five-year research collaboration between RGE and Nanyang Technological University, Singapore (“NTU”), to accelerate innovation in textile recycling that can be deployed in urban settings. The research centre will develop new technologies to recycle textile waste into fibre and create new, next-generation eco-friendly and sustainable textiles.

This move comes on the back of the tightening of waste import bans in countries such as China, India and Indonesia, which are among the world’s largest waste processors. The stricter import bans have left cities in need of viable local textile recycling solutions to tackle the immense textile waste generated.

RGE Executive Director, Mr Perry Lim, said, “Current textile recycling technologies, which rely primarily on a bleaching and separation process using heavy chemicals, cannot be implemented due to environmental laws. At the same time, there is an urgent need to keep textiles out of the brimming landfills.” He added, “As the world’s largest viscose producer, we aim to catalyse closed-loop, textile-to-textile recycling by developing optimal urban-fit solutions that can bring the world closer to a circular textile economy.”

Globally, an estimated 90 million tonnes of textile waste is generated and disposed of every year, with less than 1% being upcycled into new clothing or other textile materials. By 2030, the amount of global textile waste, which currently accounts for almost 10% of municipal solid waste, is expected to reach more than 134 million tonnes. The textile industry is also responsible for 10% of global greenhouse gas emissions – more than international flights and maritime shipping combined.

At present, most of the available textile recycling technologies are open-loop, where textile waste is typically downcycled to lower-quality products (insulating materials, cleaning cloths, etc.) or be used in waste-to-heat recycling.

“Closed-loop textile-to-textile recycling processes, particularly chemical recycling, are still under development. Scaling up the technologies to industrial scale remains a challenge. A key bottleneck is that refabricating textile waste into fibre needs purity standards for feedstock. However, most of the clothes that we wear are made of a mixture of different synthetic and natural fibres, which makes separating the complex blends of materials challenging for effective recycling.

“Our aim is to address this industry pain point by developing viable solutions that use less energy, fewer chemicals and produces harmless and less effluents, and then potentially scale up across our global operations,” Mr Lim said.

To tackle the key challenges in closed-loop textile recycling, RGE-NTU SusTex is looking into four key research areas, namely cleaner and more energy efficient methods of recycling into new raw materials, automated sorting of textile waste, eco-friendly dye removal, and development of a new class of sustainable textiles that is durable for wear and, at the same time, lends itself to easier recycling.

Technologies developed by RGE-NTU SusTex will be test bedded at RGE’s pilot urban-fit textile recycling plant in Singapore, which is projected for completion as early as 2024. If successful, RGE has plans to replicate the plant in other urban cities within its footprint.

 

Source:

Royal Golden Eagle

(c) Adient
As a symbol for a sustainable cooperation, Michel Berthelin (Executive Vice President EMEA, 2nd from left) and Henrik Henriksson (CEO H2 Green Steel, 1st from right) planted a ginkgo tree together with their teams in front of the Adient EMEA headquarters in Burscheid, Germany.
01.09.2022

Adient: Cooperation with H2 Green Steel to reduce carbon footprint

Adient, a supplier of seating systems for the automotive industry, has entered into a cooperation with Swedish steelmaker H2 Green Steel (H2GS) to reduce the carbon footprint in its value chain.
 
On 1st September Michel Berthelin, Executive Vice President Adient EMEA, and Henrik Henriksson, CEO of H2 Green Steel, have mutually signed an agreement to supply fossil-free steel with low carbon footprint from 2026 on and subsequently use it in Adient's metal products.

Adient, a supplier of seating systems for the automotive industry, has entered into a cooperation with Swedish steelmaker H2 Green Steel (H2GS) to reduce the carbon footprint in its value chain.
 
On 1st September Michel Berthelin, Executive Vice President Adient EMEA, and Henrik Henriksson, CEO of H2 Green Steel, have mutually signed an agreement to supply fossil-free steel with low carbon footprint from 2026 on and subsequently use it in Adient's metal products.

Michel Berthelin explains the background to the cooperation: “As a company, we are committed to the Science Based Targets Initiative, a collaboration between leading global institutions to set a science-based climate target. We also support the Carbon Disclosure Project, which helps companies and cities to understand and disclose their environmental impacts. The decision to shift parts of the steel volume sourced for our production to a steel with low carbon footprint is part of our sustainability strategy. It is our goal to reduce emissions at our production sites that are caused directly by our own sources or indirectly by our energy suppliers by 75% by 2030. In parallel, we aim to reduce emissions along our supply chains by 35% over the same period. In doing so, Adient actively fosters the industry's transformation towards a more responsible use of natural resources.”

Steel from H2 Green Steel is produced with up to 95% less CO2 emissions compared to conventional steel production. The company achieves this by replacing coal with green hydrogen in production and by the use of electricity from non-fossil sources. In this way, mainly water and heat are produced as waste products.

Source:

Adient

22.08.2022

NCTO: U.S. Educational Institutions partner with Honduran University to educate Students for Textile Jobs

North Carolina educational institutions are joining forces with an Honduran university to educate and train thousands of students for the next generation textile workforce to meet a rising tide of nearshoring and onshoring in Honduras, Central America and the United States.

The U.S. Department of State issued a statement of public support for the MOU and the unique collaboration between the U.S. and Honduran institutions.

North Carolina educational institutions are joining forces with an Honduran university to educate and train thousands of students for the next generation textile workforce to meet a rising tide of nearshoring and onshoring in Honduras, Central America and the United States.

The U.S. Department of State issued a statement of public support for the MOU and the unique collaboration between the U.S. and Honduran institutions.

The initiative will launch a series of educational workforce development programs, ranging from training and certificate programs to undergraduate and graduate degrees, in textile-related areas of study.
 
The partnership comes at a defining moment for the U.S., Honduras and Central America, which are seeing historical levels of investment in textile and apparel production stemming from a global supply chain crisis that has driven a significant shift in sourcing out of Asia to the U.S. and the region. Nearly $1 billion of historic textile and apparel investment is anticipated in the U.S. and Central America this year alone. And this partnership also creates an educational pathway to economic opportunity in Honduras and the region that not only creates a skilled and resilient workforce but can also help to address the root causes of irregular migration.

Current growth projections indicate a need for more than 10,000 new skilled workers in the textile industry in Honduras alone over the next five years.

The U.S. and this region are inextricably linked through a textile and apparel co-production chain under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) that has generated $12.6 billion in annual two-way trade in the sector and supports 1 million workers in the U.S. and the region.
 
North Carolina plays a central role in this co-production chain. It is the second largest state for textile employment nationally with over 36,000 workers, and the state’s $2.7 billion in textile-related exports leads the nation. The Northern Triangle, including Honduras, is a major export destination for U.S. yarns and fabrics that come back as finished items under the U.S.-CAFTA-DR trade agreement.

Photo: Mark Stebnicki, pexels
16.08.2022

USDA presents new study of Chinese Cotton Textile Industry

  • Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

  • Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

Their study reviewed the regional patterns of China’s cotton textile industry development and identified growing geographic separation between cotton production and textile manufacturing since the 1990s using data from Chinese sources. The study investigated spatial patterns of demand for imported cotton by analyzing lists of Chinese companies applying for a share of the import quota from 2016 to 2022. Multiple regression analysis was used to control for potentially confounding influences when investigating whether companies in coastal provinces were more likely to use imported cotton than similarly sized companies in other regions.

Textile manufacturers — the main consumers of cotton — are concentrated in coastal and central regions where the share of China’s cotton production fell from over 50 percent to 10 percent during 2011–21. These geographic changes are a factor influencing global trade in cotton and textiles. Additionally, the use of forced labor in Xinjiang attracted more attention to the industry, prompting the United States and other countries to ban products produced in the region.

This study reviews the economic, geographic, and policy factors reshaping the industry and influencing the global trade of cotton and textile products. The study also examines data on Chinese companies applying for a share of China’s cotton import quota to gain insight about the demand for imported cotton.

China became the world’s largest producer, consumer, and importer of cotton soon after joining the World Trade Organization (WTO) in 2001. Despite adopting a tariff-rate quota (TRQ) system for cotton imports and issuing supplemental quotas in most years, the large number of cotton goods manufacturers that request shares of the quota suggests demand for imported cotton exceeds  the quota.

While the TRQ was intended to protect China’s cotton farmers, many farmers abandoned the labor-intensive crop as wages rose rapidly in many other industries and other crops produced higher returns. In response, officials encouraged cotton production in the relatively remote region of Xinjiang to prevent China from becoming reliant on imported cotton. Xinjiang growers receive a subsidy payment for cotton, and subsidies for machinery and seeds. A transportation subsidy induces textile manufacturers in eastern and central regions to purchase cotton from Xinjiang, which is about 2,200 to 2,900 miles from most of the country’s textile manufacturers. Financial support and other incentives encourage manufacturers to shift operations to Xinjiang.

Textile manufacturers in China are highly interested in importing cotton due to its lower price and quality. China imports about 20 percent of its cotton, and the United States is a chief exporter of cotton to China. While imported cotton is used in all provinces, manufacturers near the eastern seaboard show a greater propensity for imports. Nevertheless, in all regions, domestic cotton has the largest share of mill use.

Between 2016 and 2022, 1,581 companies applied for a share of the TRQ, and 265 companies applied in all 7 years. Most of these companies also applied for supplemental quotas issued with slightly higher tariffs. This large number of applicants suggests that imports could be even greater if quotas did not limit them. The operation of the quota application process is not public information, but data submitted by applicants suggests access to imported cotton is uneven. About 14 percent of applicants said imported cotton comprised over half of the cotton they used. Another 20 percent of companies requesting import quota did not use any imported cotton, suggesting that many applicants are unable to import. Textile manufacturers coped with limits on cotton imports by increasing their use of synthetic, chemical-based fibers or by importing cotton yarn. From 2000 to 2020, China’s yarn imports doubled from under 1 million metric tons to around 2 million metric tons with Vietnam supplying about 45 percent of that total in 2020.

The number of textile manufacturers in Xinjiang applying for a share of the cotton import quota rose from 37 to 68 between 2016 and 2022. However, imports constituted less than 2 percent of  the cotton Xinjiang applicants reported using—and 66 percent of them reported using no imported cotton—suggesting that applications from Xinjiang textile companies were often denied.
Analysis found that applicants in coastal provinces used more imported cotton than similarly sized applicants in other regions. Each location of a multi-plant company must apply separately for tariff-rate quotas. Textile manufacturers in Xinjiang that requested a share of the import quota included branches of some of China’s largest textile companies, but the analysis found that Xinjiang applicants used less imported cotton than similar manufacturing plants located in other regions. China’s role as a cotton importer appears to have peaked, while other countries are increasing their share of imports.

USDA baseline projections suggest that by 2030 Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey will together account for 47 percent of the world’s cotton imports while China will only account for 24 percent. The study cam be downloaded from the USDA website.

More information:
cotton Cotton USA China Xinjiang
Photo: Pixabay
15.08.2022

Cotton prices outlook

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Beyond the weakening macroeconomic environment, there also may be factors associated with cotton supply chains that could affect demand during the 2022/23 crop year.  Downstream consumer markets for cotton can be viewed as more discretionary than other spending categories, such as food, energy, and lodging, that experienced some of the sharpest effects of inflation.  Given price increases for necessities, consumers may have less income to devote to apparel and home furnishings.

In the U.S., consumer spending on clothing has been flat for the past year.  However, it has been holding at levels that are 25% higher than they were in 2019.  If U.S. consumers pull back on clothing purchases, it may hit the market just as retailers have caught up with consumer demand after the onset of the shipping crisis.  In weight volume, the cotton contained in U.S. apparel imports was up 22% year-over-year in the first half of 2022.  Relative to 2019 (pre-COVID and pre-shipping crisis), the volume in the first half of 2022 was up 23%.  Given strong import volumes, if there is a dip in consumer demand, inventory could build both at retail and upstream in supply chains.  This could lead to cancelations, potentially all the way back to the fiber level, where contracts signed at prices higher than current values could be particularly susceptible.

Tight U.S. supply is on the other side of price direction arguments.  Cotton is drought tolerant, and that is why it can be viably grown in perennially dry locations like West Texas.  However, cotton requires some moisture to germinate and generate healthy yields.  West Texas has had very little rain over the past year, and drought conditions have been extreme.  As a result, abandonment is forecast to be widespread.  It remains to be seen exactly how small the U.S. crop will be, but the current USDA forecast predicts only 12.6 million bales in 2022/23 (-5.0 million fewer bales than in 2021/22).

Meanwhile, demand for U.S. cotton has been relatively consistent, near 18 million bales over the past five crop years (an average of 15.5 million bales of exports and 2.7 million bales of domestic mill-use).  A harvest of only 12.6 million falls well short of the recent average for exports alone, and U.S. stocks were near multi-decade lows coming into 2022/23.  All these statistics suggest shipments from the world’s largest exporter may have to be rationed in 2022/23.  If cotton is not readily available from other sources, the scarcity of supply from the U.S. could support prices globally.

Simultaneously, there is weakness from the demand side.  The market has struggled to find the balance between the weakened demand environment and limited exportable supply in recent months.  The conflict between these two influences makes it difficult to discern a clear direction for prices and suggests continued volatility.

More information:
Cotton Inc. cotton
Source:

Cotton Inc.

(c) Fraunhofer UMSICHT/Mike Henning
Prof. Christian Doetsch (l.) and Prof. Manfred Renner (r.)
09.08.2022

Fraunhofer UMSICHT: New institute directors

Prof. Manfred Renner and Prof. Christian Doetsch will take joint leadership of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT from August 2022. As renowned scientists, they have most recently shaped the direction of the institute as heads of the Products division and Energy division respectively, and will now follow in the footsteps of Prof. Eckhard Weidner, who has entered retirement.

This is the first time in its history that Fraunhofer UMSICHT is led by two directors. Both institute directors began their professional careers at the institute and from August they will have a joint hand in its future.

Prof. Manfred Renner and Prof. Christian Doetsch will take joint leadership of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT from August 2022. As renowned scientists, they have most recently shaped the direction of the institute as heads of the Products division and Energy division respectively, and will now follow in the footsteps of Prof. Eckhard Weidner, who has entered retirement.

This is the first time in its history that Fraunhofer UMSICHT is led by two directors. Both institute directors began their professional careers at the institute and from August they will have a joint hand in its future.

Prof. Manfred Renner holds a doctorate in mechanical engineering, specializing in process engineering and business development. Since 2006, he has held various roles at Fraunhofer UMSICHT, most recently heading up the Products division and overseeing its 126 employees and its budget of 14.8 million euros. He has set international standards through his award-winning research into a free of water tanning leather tanning process that uses compressed carbon dioxide. With the development of innovative aerogel-based insulation materials for building facades, he has made a significant contribution to environmentally friendly, circular applications in the construction industry and initiated a number of industrial projects. One of the notable technological breakthroughs made by his team was the development of a new type of fire-resistant glass, which can withstand even the most extreme heat. This won his development team the Joseph von Fraunhofer Prize in October 2020.

Alongside becoming institute director, Prof. Renner will also take over the leadership of the Fraunhofer Cluster of Excellence Circular Plastics Economy CCPE in August 2022. In this role, he will represent the Fraunhofer-Gesellschaft on a national and international level with regard to the transformation of industry and society to a circular economy. In addition, he will start his professorship in Responsible Process Engineering at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. Over the course of his professorship, he will shape the systemic development of the circular economy at a corporate, regional and European level.

Prof. Christian Doetsch has worked in energy research for more than 25 years, spending most of this time at Fraunhofer UMSICHT. As head of the Energy division, he managed a team of around 145 employees and was responsible for a budget of approximately 10.4 million euros. His technological focal points are energy storage, Power-to-X technologies including hydrogen electrolysis and chemical conversion, catalysts, and energy system modeling and optimization. His overarching aim is the integration of renewable energies into a cross-sectoral, resilient energy system.

In 2015, Doetsch co-founded the award-winning start-up Volterion GmbH & Co. KG, which develops redox flow batteries. He attained high visibility on a global scale by redesigning stacks, one of the main components of redox flow batteries, an achievement for which he, his team and Volterion representatives were awarded the Joseph von Fraunhofer Prize in May 2021. The energy expert also acts as deputy spokesperson for the Fraunhofer Energy Alliance and task manager for the energy storage group at the International Energy Agency (IEA). He also co-founded the “Open District Hub e. V.,” an association that promotes the energy transition in the sector by means of energy systems integration.

Since January 2020, he has been Professor of Cross Energy Systems at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. In this role, he conducts research into ecological evaluation and resilience of cross-sectoral energy systems.

Source:

Fraunhofer UMSICHT

09.08.2022

Carbios joined WhiteCycle to process and recycle plastic textile waste

  • An innovative European project to process and recycle plastic textile waste
  • A partnership to reach the objectives set by the European Union in reducing CO2 emissions by 2030
  • A unique consortium rallying 16 public and private European organizations working together for more circular economy

Carbios joined WhiteCycle, a project coordinated by Michelin, which was launched in July 2022. Its main goal is to develop a circular solution to convert complex[1] waste containing textile made of plastic into products with high added value. Co-funded by Horizon Europe, the European Union’s research and innovation program, this unprecedented public/private European partnership includes 16 organizations and will run for four years.
 

  • An innovative European project to process and recycle plastic textile waste
  • A partnership to reach the objectives set by the European Union in reducing CO2 emissions by 2030
  • A unique consortium rallying 16 public and private European organizations working together for more circular economy

Carbios joined WhiteCycle, a project coordinated by Michelin, which was launched in July 2022. Its main goal is to develop a circular solution to convert complex[1] waste containing textile made of plastic into products with high added value. Co-funded by Horizon Europe, the European Union’s research and innovation program, this unprecedented public/private European partnership includes 16 organizations and will run for four years.
 
WhiteCycle envisions that by 2030 the uptake and deployment of its circular solution will lead to the annual recycling of more than 2 million tons of the third most widely used plastic in the world, PET[2]. This project should prevent landfilling or incineration of more than 1.8 million tons of that plastic each year. Also, it should enable reduction of CO2 emissions by around 2 million tons.
 
Complex waste containing textile (PET) from end-of-life tyres, hoses and multilayer clothes are currently difficult to recycle, but could soon become recyclable thanks to the project outcomes. Raw material from PET plastic waste could go back into creation of high-performance products, through a circular and viable value chain.
 
Public and private European organizations are combining their scientific and industrial expertises:

  • industrial partners (Michelin, Mandals, KORDSA);
  • cross-sector partnership (Inditex)
  • waste management companies (Synergies TLC, ESTATO);
  • intelligent monitoring systems for sorting (IRIS);
  • biological recycling SME (Carbios);
  • product life cycle analysis company (IPOINT);
  • university, expert in FAIR data management (HVL);
  • universities, research and technology organizations (PPRIME – Université de Poitiers/CNRS, DITF, IFTH, ERASME);
  • industry cluster (Axelera);
  • project management consulting company (Dynergie).

 
The consortium will develop new processes required throughout the industrial value chain:

  • Innovative sorting technologies, to enable significant increase of the PET plastic content of complex waste streams in order to better process them;
  • A pre-treatment for recuperated PET plastic content, followed by a breakthrough recycling enzyme-based process to decompose it into pure monomers in a sustainable way;
  • Repolymerization of the recycled monomers into like new plastic;
  • Fabrication and quality verification of the new products made of recycled plastic materials

 
WhiteCycle has a global budget of nearly 9.6 million euros and receives European funding in the amount of nearly 7.1 million euros. The consortium’s partners are based in five countries (France, Spain, Germany, Norway and Turkey). Coordinated by Michelin, it has an effective governance system involving a steering committee, an advisory board and a technical support committee.

[1] Complex waste: multi materials waste (Rubber goods composites and multi-layer textile)
[2] PET: Polyethylene terephthalate

Source:

Carbios

04.08.2022

adidas with strong growth in Western markets in Q2

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected.

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”

Currency-neutral revenues increase 4% despite macroeconomic constraints
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets. This growth was achieved despite continued challenges on both supply and demand. Supply chain constraints as a result of last year’s lockdowns in Vietnam reduced top-line growth by around € 200 million in Q2 2022. In addition, the company’s decision to suspend its operations in Russia reduced revenues by more than € 100 million during the quarter. Continued covid-19-related lockdowns in Greater China also weighed on the top-line development in Q2. From a channel perspective, the top-line increase was to a similar extent driven by the company’s own direct-to-consumer (DTC) activities as well as increases in wholesale. Within DTC, e-commerce, which now represents more than 20% of the company’s total business, showed double-digit growth reflecting strong product sell-through. From a category perspective, revenue development was strongest in the company’s strategic growth categories Football, Running and Outdoor, which all grew at strong double-digit rates. In euro terms, revenues grew 10% to € 5.596 billion in the second quarter (2021: € 5.077 billion).

Strong demand in Western markets
Revenue growth in the second quarter was driven by Western markets despite last year’s lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by
€ 200 million in total. In addition, the top-line development in EMEA was also impacted by the loss of revenue in Russia/CIS of more than € 100 million. Nevertheless, currency-neutral sales grew 7% in the region. Revenues in North America increased 21% during the quarter driven by growth of more than 20% in both DTC and wholesale. Revenues in Latin America increased 37%, while Asia-Pacific returned to growth. Currency-neutral revenues increased 3% in this market despite still being impacted by limited tourism activity in the region. In contrast, the company continued to face a challenging market environment in Greater China, mainly related to the continued broad-based covid-19-related restrictions. As a result, currency-neutral revenues in the market declined 35% during the three-months period, in line with previous expectations. Excluding Greater China, currency-neutral revenues in the company’s other markets combined grew 14% in Q2.

Operating profit of € 392 million reflects operating margin of 7.0%
The company’s gross margin declined 1.5 percentage points to 50.3% (2021: 51.8%). Significantly higher supply chain costs and a less favorable market mix due to the significant sales decline in Greater China weighed on the gross margin development. This could only be partly offset by a higher share of full price sales, first price increases and the benefits from currency fluctuations. Other operating expenses were up 19% to € 2.501 billion (2021: € 2.107 billion). As a percentage of sales, other operating expenses increased 3.2 percentage points to 44.7% (2021: 41.5%). Marketing and point-of-sale expenses grew 8% to € 663 million (2021: € 616 million). The company continued to prioritize investments into the launch of new products such as adidas’ new Sportswear collection, the next iteration of its successful Supernova running franchise and first drops related to the Gucci collaboration as well as campaigns around major events like ‘Run for the Oceans.’ As a percentage of sales, marketing and point-of-sale expenses were down 0.3 percentage points to 11.8% (2021: 12.1%). Operating overhead expenses increased by 23% to a level of € 1.838 billion (2021:
€ 1.492 billion). This increase was driven by adidas’ continuous investments into DTC, its digital capabilities and the company’s logistics infrastructure as well as by unfavorable currency fluctuations. As a percentage of sales, operating overhead expenses increased 3.5 percentage points to 32.8% (2021: 29.4%). The company’s operating profit reached a level of € 392 million (2021: € 543 million), resulting in an operating margin of 7.0% (2021: 10.7%).

Net income from continuing operations reaches € 360 million
The company’s net income from continuing operations slightly declined to € 360 million (2021: € 387 million). This result was supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision. Consequently, basic EPS from continuing operations reached € 1.88 (2021: € 1.93) during the quarter.

Currency-neutral revenues on prior year level in the first half of 2022
In the first half of 2022, currency-neutral revenues were flat versus the prior year period. In euro terms, revenues grew 5% to € 10.897 billion in the first six months of 2022 (2021:
€ 10.345 billion). The company’s gross margin declined 1.7 percentage points to 50.1% (2021: 51.8%) during the first half of the year. While price increases as well as positive exchange rate effects benefited the gross margin, these developments were more than offset by the less favorable market mix and significantly higher supply chain costs. Other operating expenses increased to € 4.759 billion (2021: € 4.154 billion) in the first half of the year and were up 3.5 percentage points to 43.7% (2021: 40.2%) as a percentage of sales. adidas generated an operating profit of € 828 million (2021: € 1.248 billion) during the first six months of the year, resulting in an operating margin of 7.6% (2021: 12.1%). Net income from continuing operations reached € 671 million, reflecting a decline of € 219 million compared to the prior year level (2021: € 890 million). Accordingly, basic earnings per share from continuing operations declined to € 3.47 (2021: € 4.52).

Average operating working capital as a percentage of sales slightly decreases
Inventories increased 35% to € 5.483 billion (2021: € 4.054 billion) at June 30, 2022 in anticipation of strong revenue growth during the second half of the year. Longer lead times as well as the challenging market environment in Greater China also contributed to the increase. On a currency-neutral basis, inventories were up 28%. Operating working capital increased 23% to € 5.191 billion (2021: € 4.213 billion). On a currency-neutral basis, operating working capital was up 14%. Average operating working capital as a percentage of sales decreased 0.4 percentage points to 21.0% (2021: 21.4%), reflecting an overproportional increase in accounts payable due to higher sourcing volumes and product costs.

Adjusted net borrowings at € 5.301 billion
Adjusted net borrowings amounted to € 5.301 billion at June 30, 2022, representing a year-over-year increase of € 2.155 billion (June 30, 2021: € 3.146 billion). This development was mainly due to the significant decrease in cash and cash equivalents.

FY 2022 outlook reflects double-digit growth during the second half of the year
On July 26, adidas adjusted its guidance for FY 2022 due to the slower-than-expected recovery in Greater China since the start of the third quarter resulting from continued widespread covid-19-related restrictions. adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% to 13% range), reflecting a double-digit decline in Greater China (previously: significant decline). While so far the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any market other than Greater China, the adjusted guidance also accounts for a potential slowdown of consumer spending in those markets during the second half of the year as a result of the more challenging macroeconomic conditions. Therefore, growth in EMEA is now expected to be in the low teens (previously: mid-teens growth), while revenues in Asia-Pacific are projected to grow at a high-single-digit rate (previously: mid-teens growth). Despite the more conservative view on the development of consumer spending in the second half of the year, adidas has increased its forecasts for North America and Latin America reflecting the strong momentum the brand is enjoying in these markets. In North America, currency-neutral revenues are now expected to increase in the high teens. Sales in Latin America are projected to grow between 30% and 40% (both previously: mid- to high-teens growth).   

Due to the less favorable market mix and the impacts from initiatives to clear excess inventories in Greater China until the end of the year, gross margin is now expected to reach a level of around 49.0% (previously: around 50.7%) in 2022. Consequently, the company’s operating margin is now forecast to be around 7.0% (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion to € 1.9 billion range).

More information:
adidas financial year 2022
Source:

adidas

27.07.2022

Autoneum: Half Year Results 2022

Lower volumes due to geopolitical developments and the sharp rise in inflation impacted the result in the first half of 2022. In a slightly declining market, Autoneum increased revenue in local currencies by 0.5%. At CHF 888.7 million, revenue in Swiss francs reached the previous year's level. Despite the challenging environment, Autoneum achieved a positive operating result of CHF 6.4 million (EBIT margin: 0.7%). The net result decreased to CHF –12.8 million. On the other hand, Autoneum was able to generate a solid free cash flow of CHF 45.2 million. A high demand for sustainable products for electric vehicles confirms that Autoneum is well positioned for this growing market of the future.

Lower volumes due to geopolitical developments and the sharp rise in inflation impacted the result in the first half of 2022. In a slightly declining market, Autoneum increased revenue in local currencies by 0.5%. At CHF 888.7 million, revenue in Swiss francs reached the previous year's level. Despite the challenging environment, Autoneum achieved a positive operating result of CHF 6.4 million (EBIT margin: 0.7%). The net result decreased to CHF –12.8 million. On the other hand, Autoneum was able to generate a solid free cash flow of CHF 45.2 million. A high demand for sustainable products for electric vehicles confirms that Autoneum is well positioned for this growing market of the future.

Current geopolitical developments substantially affected business performance in the first half of 2022. They are accompanied by accelerating inflation and significant price increases in the commodities markets, which the war in Ukraine has further exacerbated. These developments are also delaying market recovery in the automotive industry. Autoneum does everything it can to minimize the impact on the Group. Despite the present challenges, we will continue to implement our strategy, focusing on innovative and sustainable technologies for growing markets of the future.

  • Revenue development influenced by the war in Ukraine and supply chain bottlenecks*
  • Low production volumes and high inflation impact profitability*
  • Solid free cash flow enables further reduction in net debt*
  • Business Groups*
  • Well positioned for e-mobility and sustainability*
  • Expanding the product portfolio for electric vehicles*
  • Autoneum joins the Science Based Targets initiative*

Outlook
According to global market forecasts1, automobile production will pick up again in the second half of the year with growth of 8.8% compared with the first half-year 2022. For full-year 2022, global automobile production is projected to reach 80.8 million vehicles, which is equivalent to a 4.7% increase on 2021. Based on the market forecasts, Autoneum expects to improve the operating result for the second half of the year. This will be supported by ongoing customer negotiations with a view to fair sharing of costs, the accompanying contribution of vehicle manufacturers to shouldering the sharp increases in material, energy and transport costs and the foreseeable normalization of production after the easing of lockdown measures in China. On this basis, Autoneum expects substantially enhanced results for full-year 2022, as well as an improvement in the EBIT margin to 2.0% to 3.0%. Free cash flow is expected to be in the mid to high double-digit million range for the full year 2022.

*For more information see attached document

1Source: IHS “Light Vehicle Production Forecasts” – July 15, 2022

More information:
Autoneum supply chain acoustic
Source:

Autoneum Management AG

(c) Lindauer DORNIER GmbH
Maja Dornier (lhs) and Prof. Dr. Wolf Mutschler (rhs) hand over the Peter Dornier Foundation Award, endowed with 5,000 euros, to the award winner Dipl.-Ing. Mathis Bruns
26.07.2022

Peter Dornier Foundation Prize 2022 honours textile research on woven heart valve

According to the World Health Organization (WHO), cardiovascular disease is one of the most common natural causes of death. Every year, it is the cause of death of around 17 million people worldwide. The Peter Dornier Foundation Prize 2022 has now awarded a research work that is to improve the medical care of people with insufficient heart valve function in the future and prolong the patients' lives.

According to the World Health Organization (WHO), cardiovascular disease is one of the most common natural causes of death. Every year, it is the cause of death of around 17 million people worldwide. The Peter Dornier Foundation Prize 2022 has now awarded a research work that is to improve the medical care of people with insufficient heart valve function in the future and prolong the patients' lives.

The human heart is a high-performance machine: over the course of a person's life, it beats almost three billion times, pumping around 200 million litres of blood through the body. Enormous stresses that can sometimes lead to life-threatening signs of wear and tear. If a heart valve gets out of step, patients usually get artificial-mechanical or biological valves as a replacement. However, mechanical solutions imply patients to take blood-thinning medication for the rest of their lives. In addition, there may be audible closing noises. For example, almost a quarter of patients with mechanical heart valves complain of sleep disturbances. Biological heart valves, on the other hand, such as those made from animal tissue, require a great deal of manual work and have a shorter lifetime.

Potential of weaving for medical products demonstrated
For this reason, Graduate Engineer Mathis Bruns at the Institute for Textile Machinery and High-Performance Textile Materials Technology (ITM) at the TU Dresden is researching an implant alternative made of fabric. As part of a research project that also involved heart surgeons from the Dresden Heart Centre and the University Hospital in Würzburg, Mr. Bruns provided important findings for weaving an artificial heart valve in his diploma thesis. For his work entitled "Development of tubular structures with integrated valve function", Mathis Bruns has now received the Peter Dornier Foundation Prize 2022, endowed with 5,000 euros. In his laudation, Dr. Adnan Wahhoud, former head of the development department of air-jet weaving machines at DORNIER in Lindau, said: "With his work, the winner of the award demonstrates very clearly the potential of weaving technology to produce fabrics of complex form, geometry and structure with the aim of prolonging and improving people's lives." The award-winning thesis enriches research into three-dimensional tissues for use in medicine.

Weaving replacement heart valves without seams
"A particular advantage of our approach is the integral production method", says foundation prize winner Mathis Bruns. “The geometry and function of a heart valve is that complex that woven heart valves could not be produced in this form previously. Through the combined use of a rigid rapier weaving machine with bobbin shield and a Jacquard machine, it is possible to weave the replacement heart valve in such a way that it no longer has be sewn together. Even the tubular structures for the blood vessels and the integrated valve function are ‘all of one piece’. Seams are always a weak point in textile medical products," Mr. Bruns adds. “Another advantage of the woven heart valve is the possibility to insert it by the help of minimally invasive surgery. Hence, the folded valve which is about the size of a tea light is to be pushed with a catheter via the bloodstream to the target position in the heart and unfolded there. The patient's chest and heart would then no longer have to be cut open”, explains prize winner Mr. Bruns.

Textile structure is similar to human tissue
A wide variety of medical products have always been produced on DORNIER weaving machines. Customers use them to produce fabrics for bandages, prostheses, blood filters and orthoses among other things. For Mathis Bruns, it is only evident that implants such as heart valves will more and more be woven on the machines from Lindau in the future. "Textile tissue is very similar to human tissue," he says. The human body consists largely of thread-like materials, just as a textile fabric is made up of thousands of individual threads. "Muscle fibres convey force impulses, nerve tracts send stimuli such as pain and brain cells convey information via thread-like dendrites and axons." Because of their ‘thread-like properties’, woven implants are therefore particularly suitable for medical applications.

(c) FROY
25.07.2022

FROY wins C.L.A.S.S. ICON 2022

C.L.A.S.S. Eco Hub has selected the winner of C.L.A.S.S. ICON Award 2022, the annual contest with the aim of sponsoring a visionary creative who is able to combine design, responsibility, innovation and communication. Receiving the third edition of the eye-turning award is FROY Club, an experimental and responsible fashion project born in 2018 by designer Arman Avetikyan.

Froy is rooted in Armenian culture and by mixes high quality materials and yarns. Working with a sustainable ethic, Froy reconciles traditional know how and innovative techniques to create hybrid, versatile and speaking surfaces. The brand uses Italian certified fabrics and yarns that meet European standards, selecting natural materials to create high-quality products with a circular life. Froy also chooses GOTS, FSC and OEKO-TEX certified fabrics and yarns in order to support a clear production chain.

C.L.A.S.S. Eco Hub has selected the winner of C.L.A.S.S. ICON Award 2022, the annual contest with the aim of sponsoring a visionary creative who is able to combine design, responsibility, innovation and communication. Receiving the third edition of the eye-turning award is FROY Club, an experimental and responsible fashion project born in 2018 by designer Arman Avetikyan.

Froy is rooted in Armenian culture and by mixes high quality materials and yarns. Working with a sustainable ethic, Froy reconciles traditional know how and innovative techniques to create hybrid, versatile and speaking surfaces. The brand uses Italian certified fabrics and yarns that meet European standards, selecting natural materials to create high-quality products with a circular life. Froy also chooses GOTS, FSC and OEKO-TEX certified fabrics and yarns in order to support a clear production chain.

By receiving two thousand euros for sourcing purposes, smart consultancy support and communication aid from the C.L.A.S.S. team, plus assistance to the brand in commercial activities, a physical stand in the WHITE Show and a dedicated brand page on Renoon powered by C.L.A.S.S. partners; Froy will have the opportunity to upgrade its efforts in terms of responsibility and innovation, while sharing its conscious vision and values with a wider audience. Moreover, the Italian brand with Armenian roots will become part of the C.L.A.S.S. ICON community, joining past winners such as the high fashion Italian designer Gilberto Calzolari and the Portuguese streetwear brand Duarte

Source:

C.L.A.S.S.

19.07.2022

IVL: Corpus Christi Polymers plant in Texas resumes construction

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.

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. 

Source:

Indorama Ventures Public Company Limited