From the Sector

Absorbent hygiene products such as diapers, sanitary pads, and incontinence products are an integral part of our daily lives. However, most of these products contain synthetic components and contribute to the global plastic waste problem. The search for alternatives is becoming increasingly urgent. The catch is that only innovations that offer the same performance and reliability as conventional products can be successful in the market. After all, no one wants to compromise in such a sensitive area as personal hygiene.

Kelheim Fibres is currently working on various development projects to design fully biobased AHP (absorbent hygiene product) concepts that do not compromise on performance. In this area, the company continues to focus on its wood-based specialty fibres, which the tampon industry has trusted for decades. However, the requirements for AHP products differ, as each layer must fulfil a specific function.

To meet these requirements, Kelheim Fibres has developed a range of functionalized specialty fibres, including hydrophobic Olea, trilobal Galaxy®, and the hollow fibre Bramante. These specialty fibres ensure optimal results in every layer of the AHP product.

All of Kelheim's fibres are manufactured from 100% wood pulp derived from certified and sustainably managed forests. They are fully biodegradable - microorganisms in soil and seawater ensure that no residues remain.

A current example of such a partner project is the development of a completely bio-based panty liner with the nonwovens manufacturer Sandler and the hygiene products manufacturer pelzGROUP, which is due to be launched on the market shortly.

In addition to new projects in the field of biobased disposable and reusable solutions, Kelheim will also present its tried and tested fibres at INDEX™23, for example for tampons or flushable wipes.

ROICA™ by Asahi Kasei joins from April 12th the Kingpins Show, showcasing its latest innovation, the premium & smart stretch yarn ROICA™ V550.

ROICA™ V550 is a Cradle to Cradle-Certified™ sustainable degradable stretch yarn with a Material Health Gold Level Certificate. It degrades under ISO 14855-1 tested by OWS decomposing to CO₂ and water.

The new responsible and innovative solution partners with denim companies, such as Artistic Milliners, Candiani Denim and Prosperity. They all have adopted the eco-high-tech yarn into their collections and showcase them at Kingpins.

Avantium N.V., a leading technology provider in renewable chemistry, announces that it has signed an offtake agreement with Kvadrat A/S, a leader in design innovation, producing quality contemporary textiles and textile related products for architects, designers, and private consumers across the world.

Kvadrat will purchase the 100% plant-based and fully recyclable polymer PEF (polyethylene furanoate) from Avantium’s FDCA (furandicarboxylic acid) Flagship Plant, currently under construction in Delfzijl (the Netherlands) and with commercial production set to start in 2024.

The offtake agreement shall offer Kvadrat the advantage of being first mover in creating PEF-based textiles for both commercial and residential interiors.

• Electromagnetically heatable nanomodified stent for the treatment of hollow organ tumours wins second place at the RWTH Innovation Award

Almost every fourth person who dies of cancer has a hollow organ tumour, for example in the bile duct or in the oesophagus. Such a tumour cannot usually be removed surgically. It is only possible to open the hollow organ for a short time using a stent, i.e. a tubeshaped prosthesis. However, the tumour grows back and penetrates the hollow organ through the stent. Ioana Slabu from the Institute of Applied Medical Technology and Benedict Bauer from the Institut für Textiltechnik of RWTH Aachen University have now developed a novel technology for the therapy of hollow organ tumours, which was awarded second place in the RWTH Innovation Award. This involves a polymerstent that contains magnetic nanoparticles. When electromagnetic fields are applied, these nanoparticles lead to a controlled heating of the stent material and thus of the tumour. Because the tumour reacts much more sensitively to heat than healthy tissue, it is destroyed and the hollow organ remains open. Thus, the stent develops a self-cleaning effect.  

Ioana Slabu of the AME explains: "Not only can we drastically reduce treatment costs, but above all we can provide relief for millions of patients worldwide.
 
A manufacturing process and proof of concept for magnetic hyperthermia are already in place. This novel technology has a very high development potential because it can also be used for tumours in other parts of the body such as the prostate, stomach, intestine or urinary bladder or for cardiovascular diseases.  

The AiF/IGF project started under the project title "ProNano" funded by BMWK. Now the approval for the follow-up project "ProNano2" has also been received. The approved project is called: "Validation of the innovation potential of heatable stents for heat-induced treatment of cavity tumours" and is funded by BMBF in course of the VIP+ program. With the Clinic for General, Visceral and Transplantation Surgery of the University Hospital Aachen and the Institute for Technology and Innovation Management at RWTH Aachen University, the consortium is enriched by clinical and economic expertise. Every year, RWTH Aachen University honours particularly innovative university projects with the Innovation Award. Professor Malte Brettel, Prorector for Business and Industry, presented the certificates to four outstanding projects as part of RWTHtransparent.

• Beaulieu International Group and Arenal announce partnership

Padel pioneers Arenal and Artificial Grass specialists B.I.G. are pleased to announce the two companies have signed a long-term partnership to drive the growth of padel in the Belgian and Dutch markets. Over the last two years, padel has been growing exponentially, and as two market leaders, B.I.G. and Arenal are looking to further develop the sport. Arenal is a leading operator of padel courts in Belgium, looking to expand under the leadership of Marc Coucke, while B.I.G. is a leading provider for artificial grass surfaces for padel, ready to market its products under its Act Sports brand.

Today 18 million people play padel worldwide, and in Spain, Portugal and Sweden, there are now more active padel players than tennis players. The same growth is manifesting itself in Belgium and the Netherlands, where the number padel courts installed in the last 2 years has almost doubled.

For the recently opened 8-court Kerkrade facility, Arenal installed Act Sports' new Score Blue padel grass court. With a brand new textured yarn developed exclusively for padel, this product offers the perfect balance in terms of ball bounce, player comfort and game consistency. It can be used both for indoor and outdoor courts, and provides a high-quality, long-life system with low maintenance requirements.

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

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

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

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

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

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

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

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

RadiciGroup presented Biofeel® Eleven, a yarn of natural origin, at the Performance Days trade fair (from March 15-16 in Munich). Biofeel® Eleven is sourced from castor oil and is suitable for obtaining bio-polymer. It can be used for fabrics and fine garments in many sectors, from fashion to sports, from automotive to home textiles.

Today, 80% of the world's castor-oil plantations are in India, particularly in the Gujarat region, due to its favourable climatic conditions. In this area, local people can earn an additional income by cultivating semi-arid land that does not compete with food production, and by applying the skills they have acquired over time to this work. Over the years, thanks to research, development and innovation in the value chain, the seeds from which the oil is produced have been selected and certified to ensure the finest quality, also in terms of end uses.

Castor beans contain around 45% oil, rich in ricinolein, from which the bio-polymer polyamide 11 is derived. This is the polymer RadiciGroup uses for its Biofeel® Eleven yarn. What remains after the first pressing is a highly effective bio-fertiliser that is returned to the soil.

Biofeel® Eleven can also be solution dyed, i.e. dyed at the yarn production stage, saving a great deal of water and energy and also providing greater colour stability.

INDA announced the program for the World of Wipes® (WOW) International Conference, July 17-20, Atlanta, Georgia. Key topics include: Plastics policy: closing the “intention-action” gap, sustainable manufacturing practices, what consumers think about sustainability and how they are driving cultural change, supply chain transparency, wipes advancements, flushability developments, and a special CEO panel sharing their organizations’ approach to inflation, supply chain challenges, and capacity/demand balance.

Among the leading organizations presenting at this year’s event are: Berry Global, Birla Cellulose, Bringabouts, Bureau Veritas, Diamond Wipes, Freudenberg Performance Materials, Glatfelter, Goodwipes, Kimberly-Clark Corporation, National Cotton Council, Mango Consulting, Plastics Industry Association, Rockline Industries, Sharon Laboratories, and Trützschler Nonwovens. Program and speaker details are available on the WOW website.

Two new features at WOW this year are Lightning Talks and Lunch Around. Lightning Talks are an opportunity for tabletop exhibitors to highlight their innovations in “supersized elevator speeches” to WOW participants. Lightning Talks will take place before the tabletop exhibits open Tuesday and Wednesday evenings. The Lunch Around opportunity connects participants and thought leaders from the wipes industry at select downtown Atlanta restaurants on Tuesday and Wednesday. Space is limited and is first-come, first-served.

WOW kicks off with the WIPES Academy, a comprehensive course including elements of market research, materials, chemistry, converting, and regulatory filing. This course has been redeveloped to include all aspects of wipes development from concept to commercialization. The WIPES Academy is led by Heidi Beatty, Chief Executive Officer, and Paul Davies, Ph.D., Consultant, Crown Abbey LLC. Ms. Beatty and Mr. Davies bring decades of practical experience to give participants real-world solutions for product development challenges and tools to improve processes.

Hologenix announces that CELLIANT® with REPREVE®, a performance fiber made from recycled materials and enhanced with IR technology, has been shortlisted for the Drapers Sustainable Fashion 2023 Awards. Introduced with global textile solutions provider UNIFI® makers of REPREVE®, CELLIANT with REPREVE is honored in the Sustainable Textile Innovation Category of the awards.

The Drapers Awards recognize the strides that are being made in reducing the industry’s environmental impact and creating fairer working conditions across the supply chain. According to Drapers the quality and quantity of entries were higher than ever this year. Judging was underpinned by the UN-backed Sustainable Development Goals. Winners will be announced at a ceremony on May 25, 2023 at The Brewery in London.

This recognition is the second award for CELLIANT with REPREVE since its launch in the fall of 2022 – it was previously named a Selection in the Fibers & Insulation Category of ISPO Textrends Fall/Winter 2024/25. This is also the second year in a row that a Hologenix innovation has been shortlisted for the Drapers Sustainable Fashion Awards.

CELLIANT is a natural blend of IR-generating bioceramic minerals, which, when embedded into textiles, allows them to convert body heat into infrared energy, returning it to the body and temporarily increasing local circulation and cellular oxygenation. This aids significantly in muscle recovery, increases endurance and improves overall performance in healthy individuals, among other benefits.

REPREVE recycled performance fiber consists of high-quality fibers made from 100% recycled materials, including post-consumer plastic bottles and pre-consumer waste. It is also certified and traceable with UNIFI’s U TRUST® verification and FiberPrint™ technology, which provide assurance that the product comes from recycled materials. Compared to virgin fiber, REPREVE helps to offset the use of petroleum, conserving water and energy and emitting fewer greenhouse gasses.

• Technical innovation and natural fibres, for a broader definition of sustainability

The weaving collection further develops the themes that have emerged in recent seasons, interpreting them with a view to long-term sustainability.

In harmony with the Südwolle Group’s identity and values, research and technical innovation are combined with a high level of quality. Wools, almost all certified, are enriched by a significant level of performance that continues to evolve. The production process attempts to limit carbon footprint, as sustainability is the key principle guiding all the company’s choices.

The ability to offer yarns made from selected natural raw materials is in harmony with today’s sustainable buying habits, with a preference for garments and accessories that can be worn at any time of year. In contrast with the logic of fast fashion, today’s buyers, led by younger generations with a focus on the values behind their fashion choices, tend to choose items that can be expected to last longer, decreasing the environmental impact of textile wastes and throwaway fashion.

In casual wear too, the importance of comfort and feeling at ease is reconciled with the desire to wear items of good taste and quality. The new formalwear includes carefully cut garments made of materials guaranteeing fit, comfort and durability. A widespread focus on these factors makes for more conscientious, reasoned purchases, less subject to impulse buying.

Südwolle interprets the new interest in heritage, leading to the emergence of the phenomenon of quality second-hand, with a return to its core business and essentials, in a new sustainable version using certified fibres, chlorine-free anti-shrinkage treatments and long-lasting products that can be washed at home at low temperatures.

One of the most recent results of the company’s technical innovation is the new OTW® line of yarns for weaving produced using Omega Twist® technology, developed and patented by the Südwolle Group, producing yarns offering outstanding performance in terms of reduced pilling and greater elasticity, tenacity and durability.