From the Sector

• Revenue rose to EUR 2.57 bn, while EBITDA declined to EUR 241.9 mn
• Implementation of EUR 70 mn cost reduction program proceeding according to plan
• Largest investment program in the company’s history including the lyocell plant in Thailand and the pulp mill in Brazil implemented on time and within budget
• Outlook: Lenzing expects EBITDA in 2023 to be in a range of EUR 320 mn to EUR 420 mn

The Lenzing Group was increasingly affected by extreme developments on the global energy and raw material markets in the 2022 financial year, in tandem with most of manufacturing industry in Europe. The market environment also deteriorated significantly in the third and fourth quarters, while worsening consumer sentiment placed an additional burden on Lenzing’s business growth.

In the year under review, revenue increased by 16.9 percent year-on-year to reach EUR 2.57 bn, primarily as a result of higher fiber prices. The quantity of fiber sold decreased, while the quantity of pulp sold rose. In addition to lower demand, the earnings trend particularly reflects the increase in energy and raw material costs. Earnings before interest, tax, depreciation and amortization (EBITDA) decreased by 33.3 percent year-on-year to EUR 241.9 mn in 2022. The net result for the year was minus EUR 37.2 mn (compared with EUR 127.7 mn in the 2021 financial year), while earnings per share stood at minus EUR 2.75 (compared with EUR 4.16 in the 2021 financial year).

Outlook
The war in Ukraine and the tighter monetary policy pursued by many central banks to combat inflation will continue to exert pressure on the global economy. The easing of China’s zero-Covid policy could lead to an unexpectedly rapid recovery. However, the IMF has warned that risks remain high overall and projects growth of 2.9 percent in 2023. Exchange rate volatility looks set to continue in regions that are important to Lenzing.

These challenging market conditions are also continuing to weigh on consumer confidence and sentiment in the sectors relevant to Lenzing. The outlook has improved slightly of late, with inventory levels returning to normal across the value chain. Nonetheless, subdued demand remains a source of concern for market players.

Inventories in the bellwether cotton market have diminished recently, although they remain above pre-pandemic levels. A decline in crops is foreseeable in the current 2022/2023 harvest season. The sharp rise in prices on the energy and raw material markets will continue to pose significant challenges for the market.

Overall, earnings visibility remains restricted.

In structural terms, Lenzing expects a continued rise in demand for environmentally friendly fibers in the textile and clothing industry, as well as in the hygiene and medical sectors. Thus, with its “Better Growth” strategy, Lenzing is very well positioned and will continue to drive growth in specialty products, while pursuing its sustainability targets including the transformation from a linear to a circular economy model.

In light of these factors and assuming a further market recovery in the current financial year, the Lenzing Group expects EBITDA in 2023 to be in a range of EUR 320 mn to EUR 420 mn.

Messe Frankfurt India has announced that the ninth edition of Techtextil India will be held from 12 – 14 September 2023, for the first time at JIO World Convention Centre (JWCC), Mumbai. On the side-lines of the three-day fair, the organisers are planning a series of live sessions to spark debates on important industry topics and high-growth application areas.
 
As the leading business event for the Indian technical textile industry, Techtextil India, aims to connect international and domestic players with buyers from 12+ segments under diverse application areas and create a one-stop sourcing platform to highlight latest product innovations in technical textiles.
 
Marking a spectacular comeback after the lockdown, the eighth edition of Techtextil India in  2021 stood out to be a ground-breaking business platform for the technical textile sector with live demonstrations from over 150 companies’ brands and an exclusive German pavilion. The high-profile event, over the course of three days attracted 4,087 trade visitors from 25 states and 194 cities. Mr Pramod Khosla, Director, Khosla Profil Pvt Ltd, shared: “Despite the unprecedented situation created by pandemic, Techtextil India 2021 saw a tremendous response from visitors. This goes to show the immense interest and trust that industries and people have in the technical textiles sector as well as in Techtextil India.”
 
For the upcoming ninth edition, leading Indian players such as Alok Masterbatches, Khosla Profil, Park Nonwoven, Sarex Chemicals, Suntech Geo, Weavetech have already confirmed their participation and will be showcasing innovations in high-growth application areas of Geotech, Packtech, Agrotech & Indutech with a focus on products such as specialty fibres, filtration fabrics, functional textiles & advance technology.
 
While Mobiltech, Indutech, Meditech, Packtech and Sportech constitute a major share value in the global market for technical textiles, the segments likely to grow at the fastest rates (at rates faster than a CAGR of 10%) in the Indian market are Oekotech, Protech, Mobiltech, Geotech, Indutech, Agrotech, Buildtech and Packtech. The government’s target to accelerate technical textile sector growth from 8% to 15-20% range in the next five years and transform the nation into a major player in innovations, technology development, applications in key areas (agriculture, roads and railways, water resources, hygiene and healthcare, personal protection) is giving strong impetus to industry players.

With an aim to place India as one of the leaders in the global technical textile market and enhance its adoption and penetration domestically, the Indian government has earmarked INR 1000 crore (USD 130.7 million) dedicated only for R&D of the Technical Textiles sector, while the Union Budget 2022-23 further allocates INR 100 crore (USD 13.07 million) for the National Technical Textiles Mission. The centre is making strong efforts to encourage the use and adoption of technical textiles and has mandated the use of 92 items by government organisations covering agriculture, horticulture, highways, railways, water resources, and medical applications. The organisers are in talks with international technology players targeting these application areas to present their innovations at the three-day fair.

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

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

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

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

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

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

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

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

India’s leading trade fair in technical textiles, nonwovens and composites, Techtextil India, is ready to make a comeback through its hybrid edition launch from 25 – 27 November 2021. With a series of live product demonstrations, insightful knowledge sessions and B2B networking opportunities, the multimodal trade fair will provide a strong avenue for technical textile professionals to reimagine their business potential.
 
After a successful grand edition in 2019, Techtexil India is all set to return for the very first time since the pandemic. The three-day exhibition will be hosted in a hybrid format from 25 – 27 November 2021, Bombay Exhibition Centre, Goregaon which will unite technical textile players from across its varied application areas. Top technical textile brands including JB Ecotex, PARK Nonwoven, Loyal Textiles Lenzing, Mehala, Meera Industries, amongst many others will showcase their latest products at the hybrid fair. Moreover, leading German brands exhibiting at Techtextil India 2021 will be hosted under the German pavilion.

The conjunction between the physical exhibition and the online business matchmaking platform will make way to a wider range of networking. Local and international visitors who are unable to attend the venue will be able to witness the exhibition virtually through the ‘MFI virtual app’ which will host live knowledge sessions and product demonstrations for visitors. The two-day multimodal trade fair allows the visitors to search for specific products like fibers, yarns, nonwovens, machinery, coated textiles with easy-to-use filters further to which they can share their query or connect directly with the respective exhibitors.

At the same time, visitors attending the venue will be welcomed under a well-organised physical exhibition following the government-authorised safety protocols of ‘MFI SafeConnect’. These protocols will enable visitors to engage in secure face-to-face interactions with exhibitors and witness the latest technical textile technologies and innovations in-person.

Alliance with the Government of Tamil Nadu
In a bid to strengthen indigenous production through the state and attract investors, the nodal agency for investment promotion and facilitation for the Government of Tamil Nadu – Guidance has signed up for Techtextil India 2021. Furthermore, technical textile players from Tamil Nadu such as Cyber Textiles India Pvt Ltd, Jayashree Spun Bond, Lenzing Ag India, Liester Technologies, Loyal Textile Mills Ltd, Milltex Engineers Pvt Ltd, Superfil Products Pvt Ltd, Uster Technologies (India) Pvt Ltd have also confirmed their participation for the exhibition.
Announcing a close co-operation with Messe Frankfurt India for the 2021 edition, Ms Pooja Kulkarni, IAS MD & CEO, Guidance Tamil Nadu, stated: “While there are several inherent advantages for the growth of technical textiles in Tamil Nadu specifically, many raw materials used in the production of sanitary products, artificial ligaments, seat belt webbings, airbags are still heavily imported. In this context, the alliance with Techtextil India Forum can help us reduce import dependency and bring investments in R&D, manufacturing, innovation by partnering with global technical textiles companies.”

With 50% of India’s textile mills in Tamil Nadu and complementary clusters of knitting, weaving and medical devices manufacturing in Coimbatore, and Tiruppur, the region provides immense opportunities for Meditech investments. Two petrochemical and refinery units – One in Cuddalore and another in Nagapattinam by CPCL is in the process of being established in Tamil Nadu. These units will enable availability of MMF raw material for the textile industry across the state. Hence, manufacturing in Tamil Nadu can be a win-win arrangement for investors as India provides access to the burgeoning market as well.

International expertise with German pavilion
Techtexil India 2021 edition will feature an exclusive German Pavilion showcasing products and technologies from top German manufacturers, including Autefa Solution Germany GmbH, DILO Systems GmbH, Emtec Electronic GmbH, Georg Sahm GmbH & Co, Karl Mayer Verwaltungsgesellschaft mbH, Merz Maschinenfabrik GmbH and Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co.

Fibre Extrusion Technology of Leeds, UK has delivered nine meltspinning systems to clients in the biomedical sector since the onset of the Covid-19 pandemic, with a similar number currently on order for 2021/22. This way FET could confirm the position as an acknowledged world leader in meltspinning equipment for the production of precursor materials used in medical devices and as a default supplier for absorbable suture production systems, with orders virtually doubling year on year.

Recent installations include a multi-functional system that can produce both multifilament and monofilament pre-cursor fibres, but nonwoven systems have been particularly prominent, driven by the burgeoning demand for FFP3 masks, gowns and other medical products required during the pandemic. These have been sold to medical device manufacturing companies across the globe, including the Far East, USA and Europe. Research organisations have also invested in FET systems for biomedical applications, the most recent being the University of Leeds in a laboratory scale Spunbond system.

The FET in-house Process Development Laboratory and ongoing collaboration with biomaterial polymer suppliers has helped to optimise the biomedical melt spinning technology. The Laboratory is at the disposal of customers for all aspects of confidential testing and evaluation. To further increase this competitive edge, FET will be opening a new Process Development Laboratory and Visitor Centre in early 2022.

• Fraunhofer, SABIC, and Procter & Gamble join forces
• The Fraunhofer Cluster of Excellence Circular Plastics Economy CCPE and its Institute for Environmental, Safety and Energy Technology UMSICHT have developed an advanced recycling process for used plastics.
• The pilot project with SABIC and Procter & Gamble serves to demonstrate the feasibility of closed-loop recycling for single-use facemasks.

Due to COVID-19, use of billions of disposable facemasks is raising environmental concerns especially when they are thoughtlessly discarded in public spaces, including - parks, open-air venues and beaches. Apart from the challenge of dealing with such huge volumes of essential personal healthcare items in a sustainable way, simply throwing the used masks away for disposal on landfill sites or in incineration plants represents a loss of valuable feedstock for new material.

“Recognizing the challenge, we set out to explore how used facemasks could potentially be returned into the value chain of new facemask production”, says Dr. Peter Dziezok, Director R&D Open Innovation at P&G. “But creating a true circular solution from both a sustainable and an economically feasible perspective takes partners. Therefore, we teamed up with Fraunhofer CCPE and Fraunhofer UMSICHT’s expert scientists and SABIC’s Technology & Innovation specialists to investigate potential solutions.”

As part of the pilot, P&G collected used facemasks worn by employees or given to visitors at its manufacturing and research sites in Germany. Although those masks are always disposed of responsibly, there was no ideal route in place to recycle them efficiently. To help demonstrate a potential step change in this scenario, special collection bins were set up, and the collected used masks were sent to Fraunhofer for further processing in a dedicated research pyrolysis plant.

“A single-use medical product such as a face mask has high hygiene requirements, both in terms of disposal and production. Mechanical recycling, would have not done the job”, explains Dr. Alexander Hofmann, Head of Department Recycling Management at Fraunhofer UMSICHT. “In our solution, therefore, the masks were first automatically shredded and then thermochemically converted to pyrolysis oil. Pyrolysis breaks the plastic down into molecular fragments under pressure and heat, which will also destroy any residual pollutants or pathogens, such as the Coronavirus. In this way it is possible to produce feedstock for new plastics in virgin quality that can also meet the requirements for medical products”, adds Hofmann, who is also Head of Research Department “Advanced Recycling” at Fraunhofer CCPE.

The pyrolysis oil was then sent to SABIC to be used as feedstock for the production of new PP resin. The resins were produced using the widely recognized principle of mass balance to combine the alternative feedstock with fossil-based feedstock in the production process. Mass balance is considered a crucial bridge between today’s large scale linear economy and the more sustainable circular economy of the future, which today is operated on a smaller scale but is expected to grow quickly.

“The high-quality circular PP polymer obtained in this pilot clearly demonstrates that closed-loop recycling is achievable through active collaboration of players from across the value chain”, emphasizes Mark Vester, Global Circular Economy Leader at SABIC. “The circular material is part of our TRUCIRCLE™ portfolio, aimed at preventing valuable used plastic from becoming waste and at mitigating the depletion of fossil resources.”

Finally, to close the loop, the PP polymer was supplied to P&G, where it was processed into non-woven fibers material. “This pilot project has helped us to assess if the close loop approach could work for hygienic and medical grade plastics”, says Hansjörg Reick, P&G Senior Director Open Innovation. “Of course, further work is needed but the results so far have been very encouraging.”

The entire closed loop pilot project from facemask collection to production was developed and implemented within seven months. The transferability of advanced recycling to other feedstocks and chemical products is being further researched at Fraunhofer CCPE.

National Council of Textiles Organization (NCTO) member Parkdale Mills hosted Senator Tim Kaine (D-VA) at the company’s Magnolia Manufacturing plant in Hillsville, Va. today to showcase the critical role the company and the industry has played in producing lifesaving personal protective equipment (PPE) to aid frontline health-care workers and the country during the pandemic.

Parkdale’s facility in Hillsville, Va. is a key yarn spinning hub contributing to a major face mask initiative bringing together several U.S. companies and more than 5,000 workers as part of the Biden administration’s pledge to provide 25 million reusable face masks to communities hit hard by the pandemic.

“Parkdale Mills thanks Senator Kaine for his leadership on policies that help bolster our company and the entire textile industry. We are proud to be part of an initiative that is bringing together American companies to produce 100% American-made masks for community health centers, soup kitchens and food banks across the country,” said Davis Warlick of Parkdale Mills. “With the support of our government and leaders like Senator Kaine, our industry is demonstrating its ability and capacity to make critical items here for the long term.”

Kim Glas, President and CEO of NCTO said: “We want to sincerely thank Senator Kaine for his leadership in supporting American manufacturers, which have played a vital role in our economy as well as the nationwide effort to produce critical PPE and medical textiles for a nation in crisis. We are grateful to the senator and the Biden administration for prioritizing domestic manufacturers and the U.S. workforce. The U.S. textile industry is a vital contributor to the U.S economy and policies that Senator Kaine supports help bolster the onshoring of PPE and critical items, which in turn spurs employment and investment in the American manufacturing base.”

U.S. Senator Sherrod Brown (D-OH) and U.S. Representative Kathy Manning (D-NC) wrote to President Biden calling on the Administration to prioritize purchasing fully made in America Personal Protective Equipment (PPE). The lawmakers outline four steps the Administration can take now to ensure our frontline workers have products needed to effectively carryout their critical responsibilities and to support domestic manufacturers who are ready to scale up production and help keep workers healthy and safe.

In their letter, Brown and Manning call on President Biden, through Executive Order and legislative efforts, to:

1. Prioritize the purchase of fully made in America PPE “Berry compliant” to help continue bolstering the U.S. supply chain regardless of purchasing agency;
2. Issue long-term contracts directly to domestic manufacturers when possible to help bolster the domestic supply chains;
3. Adopt a contracting purchase methodology that uses “Best Value” criteria versus “Lowest Price Technically Acceptable” criteria; and
4. Designate a point person in charge of coordinating the government’s efforts to procure PPE and other medical equipment who is responsible for meeting regularly with key domestic manufacturing stakeholders.

A full copy of Brown and Manning’s letter can be found here.

BÖNNIGHEIM - Textile testing and research partner Hohenstein has reason to celebrate: this year marks the company’s 75th anniversary. Now in its third generation of family ownership, the company will spend this landmark year expanding its foundation for the future. Owner Prof. Dr. Stefan Mecheels is proud: "Our motto, We live textiles, expresses exactly what has made us special for many decades - our collective enthusiasm for textiles and the opportunity to provide solutions that make a difference in the world.”

Successful Roots

Prof. Dr.-Ing. Otto Mecheels laid the foundation for an internationally-renowned company in 1946 when he founded the Hohenstein Institutes, a textile school in Hohenstein Castle. His son, Prof. Dr. rer. nat. Jürgen Mecheels modernized the Hohenstein Group’s business structures and expanded into new research and service areas such as textile finishing or professional laundries/dry cleaning. He helped to forever change textile safety with the STANDARD 100 by OEKO-TEX® certification system that protects consumers from harmful substances. Under Prof. Dr. Stefan Mecheels’ leadership since 1995, Hohenstein has been at the forefront of microfiber analysis, consistently perfected its created standards for comfort and compression testing and worked to reduce the industry’s ecological impact. Last but not least, the testing laboratory in Hong Kong, which has been in operation since 2011, and the Hohenstein textile testing laboratories in Bangladesh and India, which were opened in 2018, ensure even greater market proximity.

Solutions for the Global Textile Industry

Today, Hohenstein specializes in the testing, certification and research of all kinds of textile-related products. With a total of more than 1,000 employees at its headquarters in Bönnigheim and in more than 40 branches, contact offices and laboratories worldwide, the company faces the current challenges of the global industry.

"Textile sustainability remains a major focus for us and is woven through every decision we make," explains Stefan Mecheels. “Even services that are seemingly focused on innovation contribute somehow to longer lasting products, less waste and more safety. Our Digital Fitting Lab helps brands leap forward with digitized apparel development. Using modern 3D and 4D technologies and our traditional fit and pattern expertise, we help our clients design better fitting clothes with fewer prototypes and less waste.”

When SARS-CoV-2 struck, the company developed a quality label to easily identify non-medical, community masks that meet legal and functional requirements. The Hohenstein Quality Labels are independent proof with a high level of credibility among buyers and consumers.

Anniversary

Among the celebrations, Hohenstein plans to hold a mid-year press conference with regional and industry journalists. "We are celebrating this anniversary because we have succeeded in constantly adapting to the market and use our applied research to anticipate developments. For this I would first like to thank our employees, who, in keeping with the motto We live textiles, put their hearts and souls into their work. A very special thanks also goes to our customers, some of whom have been placing their trust in us for decades," says Stefan Mecheels, adding "I am convinced that we are positioned to continue our contribution in the future.

The U.S. International Trade Commission held a public hearing on September 23-24 as part of its investigation of conditions impacting U.S. industry sectors and supply chains in the production of medical goods related to the COVID-19 pandemic.

National Council of Textile Organizations (NCTO) President & CEO Kim Glas is testifying on panel 5.

“Amid the devastating challenges of responding to COVID-19, NCTO members have been at the forefront of deploying manufacturing resources to address the critical need for personal protective equipment (PPE),” Glas said in testimony prepared for delivery.  “Our members quickly mobilized, proactively retooling production lines and retraining workers to provide U.S.-made PPE to frontline medical workers.”

“Despite these heroic efforts to confront the ongoing crisis, the onshoring of a permanent PPE industry will only materialize if proper government policies are implemented to incentivize the long-term investment needed to sustain PPE production in the United States,” Glas said.

Glas’ testimony as prepared for delivery can be found here.