From the Sector

The Indorama Mobility Group, a manufacturer of industrial fibers, cords and fabrics, - like other companies - is confronted with significant inflation since the beginning of the year. The global economy has gradually recovered in 2021 from the impact of the COVID-19 pandemic, but is still experiencing very volatile market conditions: The global freight remains unreliable and expensive, cost for energy and global commodities is increasing, and the increasing focus on sustainability and environmental impact is driving compliance cost upward in most part of the world.

In detail:

• Utilities: gas price has tripled in the past few months in Europe (from a level of 15 EUR/MWh in Q4’20 to 45 EUR/MWh recently), while increasing by 50% in USA
• CO₂ emissions and compliance cost: prices for CO₂ certificates in Europe have almost doubled, approaching 60 EUR/ton from 30 EUR/ton at the end of last year, while regulations continue to expand the need for CO2 compensation
• Chemicals and additives (spinfinish, dip chemicals, coating & laminating chemicals): cost have increased by 5%
• Packaging: prices for standard packaging materials have increased by more than 30%
• Logistic: despite our local manufacturing footprint which is not fully affected by global freight issues, the regional logistic costs are also increasing up to 20% (road transport)

Despite constant efforts to optimise the cost structure through comprehensive initiatives to improve operations, cost increases have now reached a level, the group said, that can no longer be offset and must be passed on to the market. This is a necessary step to be able to continue supplying high-quality products and services of the broad product portfolio, it said.

• Textile Exchange report shows growth of preferred fiber and materials market needs to be accelerated
• With post-pandemic fiber production increasing, the transition to preferred fibers and materials must be a non-negotiable decision, notes Textile Exchange.

According to a new Textile Exchange report, the market share for preferred fiber and materials grew significantly in 2020. The Preferred Fiber and Materials Market Report 2021 outlines the market for plant fibers such as cotton, hemp, and linen; animal fibers and materials such as wool, mohair, cashmere, alpaca, down, silk, and leather; manmade cellulosics (MMCFs) such as viscose, lyocell, modal, acetate, and cupro; as well as synthetics such as polyester, polyamide, and more.

The report is a unique annual publication about global fiber and materials production, availability, and trends, including those associated with improved social and environmental impacts, referred to as ”preferred.” The comprehensive report includes quantitative data, industry updates, trend analysis and inspiring insights into the work of leading companies and organizations as they create material change.

The results show that between 2019 and 2020 the market share of preferred cotton increased from 24 to 30 percent and recycled polyester from 13.7 to 14.7 percent. Preferred cashmere increased from 0.8 to 7 percent of all cashmere produced while Responsible Mohair Standard certified fiber expanded from 0 to 27 percent of all mohair produced worldwide in its first year of existence in 2020. The market share of FSC and/or PEFC certified MMCFs increased to approximately 55-60 percent. While the market share of recycled MMCFs is only 0.4 percent, it is expected to increase significantly in the following years.

Brands’ increased interest in the use of preferred fibers and materials was also demonstrated by 75 percent increase in the total number of facilities (to 30,000) around the world becoming certified to the organization’s portfolio of standards in 2020. However, the report also notes that despite the increase, preferred fibers only represent less than one-fifth of the global fiber market. Less than 0.5 percent of the global fiber market was from pre- and post-consumer recycled textiles.

Indeed, global fiber production has almost doubled in the last 20 years from 58 million tonnes in 2000 to 109 million tonnes in 2020. While it is not yet clear how the pandemic and other factors will impact future development, global fiber production is expected to increase by another 34 percent to 146 million tonnes in 2030 if the industry builds back business as usual. If this growth continues, it will be increasingly difficult for the industry to meet science-based targets for climate and nature.

Textile Exchange aims to be the driving force for urgent climate action, and its Climate+ strategy calling for the textile industry to reduce greenhouse gas emissions by 45 percent by 2030 compared to a 2019 baseline in the pre-spinning phase of textile fiber and materials production, while also addressing other impact areas interconnected with climate such as water, biodiversity, and soil health.

• New air purification and sulfur recovery plant up and running at the Lenzing facility
• Another step closer to meeting sustainability and climate targets
• Self-sufficiency in raw materials further enhanced

Lenzing Group is continuing to make great strides toward achieving carbon neutrality across the Group. The successful completion and commissioning of an air purification and sulfur recovery plant at the Lenzing facility marks another milestone in the Group’s ambitious strategy. Lenzing has invested some EUR 40 mn in this project since construction began in 2019.

Using state-of-the-art technology, the plant will enable carbon emissions to be reduced by 15,000 metric tons at the Lenzing facility. This will also make the group more self-sufficient in securing vital raw materials for processing, which will bolster the site’s competitive standing in terms of sustainability.

“As a result of this investment, Lenzing has made further progress towards implementing its climate targets, while achieving much greater autonomy with regard to one of its core raw materials”, says Christian Skilich, Member of the Managing Board at Lenzing Group.

In 2019, Lenzing set the strategic target of halving its group-wide greenhouse gas emissions per ton of product by 2030. Its goal for 2050 is to achieve climate neutrality.