From the Sector

Solvay announced the future Board of Directors of SYENSQO, effective upon completion of the planned separation of Solvay into two companies – SOLVAY and SYENSQO – which is on track to be completed in December 2023.

SYENSQO’s Board will be composed of 10 members, including 6 independent members, 3 members representing the reference shareholder, Solvac, and the company CEO. They have deep expertise in specialty industries, international business operations, risk management, corporate governance, finance and clean technology.

The following individuals will serve on the SYENSQO Board of Directors:
Rosemary Thorne will serve as independent Director and Chair of the SYENSQO Board, as well as Chair of the Board’s Finance Committee. She is currently an Independent Director on the Solvay Board of Directors, appointed in 2014, and Chair of the Board’s Audit Committee. She is also an Independent Director on the Board of Merrill Lynch International (UK), a wholly-owned subsidiary of Bank of America, serving as Chair of the Audit Committee. Ms. Thorne has decades of financial leadership experience across a wide range of industries. She previously served as Chief Financial Officer at J. Sainsbury, the UK’s largest supermarket chain at the time; Bradford & Bingley; and Ladbrokes. Ms. Thorne previously sat as an Independent Director on the Boards of Royal Mail Group, Cadbury Schweppes, Santander UK, First Global Trust Bank and Smurfit Kappa Group.

Dr. Ilham Kadri will serve as Chief Executive Officer and member of the Board of Directors of SYENSQO. She is currently CEO and President of the Executive Committee at Solvay. Ms. Kadri has successfully led the turnaround of Solvay, delivering double-digit EBITDA growth and 18 consecutive quarters of positive free cash flow, deleveraging the balance sheet and promoting superior people engagement. She is an independent Board member at A.O. Smith and L’Oréal. She is active in non-profit organizations, as Chair of the World Business Council for Sustainable Development (WBCSD), member of the steering committee of the European Round Table of Industrialists (ERT) as well as a permanent member of the World Economic Forum’s International Business Council (WEF). Ms. Kadri has extensive leadership experience across a variety of industries in four continents and with leading industrial multinationals, including Shell, UCB, Huntsman, Dow, Sealed Air. Prior to Solvay, she was CEO and President of Diversey in the USA, led the company’s return to profitability and resulting spin off and divestiture to Bain Capital. She founded two non-Profit foundations: the Solvay Solidarity Fund in Belgium in 2020 which supported more than 7000 families affected by Covid-19 and natural disasters; and founded the ISSA Hygieia Network in 2015 in the USA, to help women in the cleaning industry. She received two Doctor Honoris Clausa from EWHA University in Korea and Université de Namur in Belgium.

Julian Waldron will serve as independent Director and Chair of the Audit Committee. He currently serves as Deputy Executive Chairman of privately-held Albea Group, a global beauty and personal care packaging company which operates 35 facilities in Europe, Asia and the Americas. Mr. Waldron has held senior leadership roles at several leading listed companies in the industrial, technology and services sectors and brings a wealth of expertise in finance and business operations. Prior to joining Albea in 2022, he was Chief Financial Officer of Suez for three years after serving as Chief Financial Officer and subsequently Chief Operating Officer of Technip. He started his career at UBS Warburg where he spent 14 years. Mr. Waldron also served as an independent Board member and Chairman of finance, risk and investments at Carbon Clean, a privately-owned carbon capture company dedicated to achieving net zero.

Heike Van de Kerkhof will serve as independent Director and Chair of the Nomination Committee. She currently sits on the Board of OCI N.V.. Ms. Van de Kerkhof brings more than 30 years of experience in the chemicals, oil & gas and materials industries, having served in numerous leadership roles around the globe. From 2020 to 2023, she was Chief Executive Officer of Archroma Management, a global specialty chemicals company. During her tenure, she successfully completed the transformational acquisition of Huntsman’s Textile Effects business. Prior to her role at Archroma, Ms. Van de Kerkhof served as Vice President of Lubricants, Western Hemisphere at BP, and held positions at Castrol, The Chemours Company, and Neste Corporation. She also held many leading roles within DuPont over 18 years.

Matti Lievonen will serve as independent Director and Chair of the Compensation Committee. He is currently an independent director on the Solvay Board, appointed in 2017. Mr. Lievonen is a proven executive in the energy, forestry, power and automation industries with an extensive track record of leading businesses through climate transition. For over ten years until 2018, he served as Chairman and Chief Executive Officer of Neste Corporation, a global leader in next-generation renewable fuels and chemicals. During his time at Neste, Mr. Lievonen successfully promoted the development of clean fuels as well as Finland’s bioeconomy strategy in advancing renewable transportation fuels. He has also been involved with organizations such as Fortum Board, SSAB, Nynäs AB, Ilmarinen, and the HE Finnish Fair Foundation. Until 2021, Mr. Lievonen was also Chairman of the Board of Directors at Fortum. He has been recognized for his admirable leadership and expertise, and in 2016 was awarded an Honorary Doctorate of Technology by the Aalto University Schools of Technology.

Dr. Françoise de Viron will serve as non-independent Director, Chair of the ESG Committee and Vice-Chair of the Board. She is currently a director of the Solvay Board, appointed in 2013. Ms. de Viron is a regarded academic leader and has extensive experience in innovation, R&D and qualitative research. She is a Professor Emeritus at the Faculty of Psychology and Education Sciences and Louvain School of Management at UCLouvain in Belgium where she has been an Academic Member of various groups at UCLouvain. Ms. de Viron previously served as the president of AISBL EUCEN – the European Universities Continuing Education Network. Prior to her university position, from 1985 to 2000, she was in charge of developing Artificial Intelligence applications at Tractebel S.A. (now Tractebel-Engie).

Roeland Baan will serve as independent Director. He currently serves as President and Chief Executive Officer of Topsoe, a privately-held leading provider of clean energy and petrochemical technologies. He is also Chairman of the Supervisory Board of SBM Offshore NV. Roeland Baan has extensive experience in supply chain management, M&A, business development and operations management. Prior to joining Topsoe in 2020, he was President and CEO of Outokumpu and has held several executive roles at global organizations such as Aleris International, ArcelorMittal and SHV NV. He spent over 16 years in various roles across the globe at Shell, living in South America, in Africa and in the United Kingdom.

Edouard Janssen will serve as non-independent Director. He is currently a Director on the Solvay Board, appointed in 2021. Earlier this year, he was appointed Chief Financial Officer of D’Ieteren Group, a European leader in automotive distribution services. Mr. Janssen is also a Board member of privately-held Financière de Tubize and Union Financière Boël, as well as Co-Founder and Chair of Trusted Family. Mr. Janssen is active in academics, as Vice-Chair of the International Advisory Board of the Solvay Brussels School of Economics and Management and on the advisory board of the INSEAD HGIBS. He brings expertise in finance, strategy, entrepreneurship, business management, planning and marketing. He has served as Solvay’s Vice President in strategy and M&A between 2019 and 2021, and prior to that, he was the US-based General Manager for North- and Latin America at Solvay’s Aroma Performance Global Business Unit.
 
Dr. Mary Meaney will serve as non-independent Director. She is currently a member of the Board of Directors and of the Audit Committee of Groupe Bruxelles Lambert SA. She also sits on the Board of Directors and the Remuneration Committee of Beamery, the privately-held talent management company. She is a member of the Board of Directors and of the Finance Committee of Imperial College, London.Dr. Meaney will bring expertise in Strategy, M&A, and change management, which she acquired over a 24-year career at McKinsey. She was a Senior Partner, served on the McKinsey Shareholders Council and led McKinsey’s global Organization practice.

Nadine Leslie will serve as independent Director and is based in the United States of America. She is currently a member of the Board of Directors of Provident Financial Services , as well as a Non-Executive Director of Seven Seas Water Corporation, a water and wastewater treatment multinational company. She also sits on the Board of Trustees of Hackensack Meridian Health Network and is active as strategic consultant for civil engineering firm T&M Associates. Over a 22-year career at Suez, Ms. Leslie held several leadership positions, the last one being Chief Executive Officer of Suez North America, until 2022. Previously she served as Executive Vice President Health & Safety.

Freudenberg Performance Materials (Freudenberg), a global supplier of high-performance technical textiles has begun operating a new 3D entangled mat production line in Changzhou (China). It enables Freudenberg to supply customers in the APAC region with Enka®Solutions made in China for building, industrial and civil engineering applications. Freudenberg now is also able to serve customers in diverse technical markets with finished and semi-finished products.

This investment in China will significantly increase Enka®Solutions production capacity and will play a fundamental role in the development of Enka business with customers in the APAC region. Freudenberg inaugurated the new line in Changzhou at an opening ceremony on July 13th.

The new production line in Changzhou complements the manufacturing operations in Obernburg (Germany) and Asheville (North Carolina, USA). With a global manufacturing presence on the three different continents Europe, Asia and America, Freudenberg can now serve markets locally and deliver Enka®Solutions products faster and efficiently. This will not only help to better meet customer needs, but also reducing the company's environmental footprint by increasing local production.

ADVANSA and Asia Pacific Fibers (APF) join forces to launch REMOTION®, a premium fibre for sports and activewear, made from recycled ocean-bound plastic bottles with full end-to-end traceability from Prevented Ocean Plastic™. REMOTION® offers a solution for textiles that merges ocean protection with built-in biodegradability. The fibres break-down in marine environments to prevent microplastic pollution of the oceans, a problem which can be the consequence of fibre-shedding from apparel laundry waste-water.

Remotion® offers a solution with various sustainable features such as biodegradability and recyclability, with customized performance features such as anti-bacterial properties and moisture management built-in to the fibre. Moreover, the fibre is also offered in customer curated colours that guarantee very good colour fastness. Thus, this “all-in-one” fibre contributes to a sustainable and healthy environment with savings in water, energy, chemicals, and CO2. The fibre is available in a range of filament and staple options with two variants: REMOTION® Blue made from ocean-bound plastic bottles, REMOTION® Green made from domestic recycled plastic bottles.

REMOTION® Blue is a specially engineered polyester fibre made from ocean-bound plastic as a premium raw material with a social aspect. ADVANSA and APF are cooperating with Prevented Ocean Plastic™, a global recycling initiative that helps tens of thousands of people around the world to clean their coastlines, prevent ocean plastic pollution and earn additional income. Discarded plastic bottles are picked up by plastic collectors from coastal areas at risk of ocean plastic pollution and are taken to collection centres. The plastic bottles are then sorted out, cleaned and processed into raw material flakes which are used as a premium ingredient for REMOTION® Blue range of products.

ADVANSA and Asia Pacific Fibers are launching REMOTION® at the Performance Days in Munich from 3-5 October 2023.

The EPTA – European Pultrusion Technology Association organizes in cooperation with the ACMA – American Composites Manufacturers Association - the 17th World Pultrusion Conference on 29th February – 1st March 2024 in Hamburg, Germany. The conference is one of the leading pultrusion events in the world. The event takes place just before the JEC World 2024 in Paris (5th – 7th March 2024).

The presentations are to document innovations in the following subject areas of
pultruded reinforced plastics:

• Market development in Europe, USA, Asia
• Innovative applications
• New Markets: Ideas for potential new applications with pultruded shapes or
• systems
• Sustainability: Technical possibilities, recycling, etc.
• Raw materials
  ○ Development of fibres
  ○ Development of resins
• Construction / Testing / Calculation
• Processes

The presentation language will be English. Deadline for paper submission (title, short abstract, speaker name and address) until 15th September 2023 to info@pultruders.com.

Following a strong start at the Spring Edition of Intertextile Shanghai Home Textiles early this year, global industry players have turned their sights to the next international event in August. As the first Autumn Edition to be held in the wake of China lifting many of its pandemic-related border restrictions, the three-day fair will gather around 1,000 international and domestic exhibitors. Traders looking to meet market demand will be able to source from an extensive range of trending and specialised home and contract textile products from 16 – 18 August 2023.

According to a recent market report, the global home textile market is expected to show a CAGR of 5.6% from 2023 – 2028 to reach USD 174.1 billion by the end of the forecast period. Asia-Pacific has dominated the global market in recent years, with China one of its most significant contributors.^[1]

As a manufacturing hub for home textiles, China is gradually recovering from social and business disruptions caused by the pandemic. Speaking at the recent Spring Edition, Ms Rosemary Li, Domestic Sales Manager of Zhangjiagang Coolist Life Technology Co Ltd, a long-time exhibitor specialised in bio-based and functional bedding products, said: “Since China relaxed its pandemic-related control and prevention measures, after Chinese New Year we have been flooded with orders. With both domestic and export orders increasing, it has been almost impossible for the production line to fulfil the order demand.”

While the spring show’s promising visitor flow was a positive start to the Chinese home textile industry’s post-pandemic era, a higher participation of overseas exhibitors and buyers is expected at the upcoming Autumn Edition

The return of special zones and international pavilions
Later this year in Shanghai, exhibitors will showcase their most up-to-date home and contract textile products, ranging from bedding & towelling, rugs, table & kitchen linen, upholstery & curtain fabrics, editors, home textile technologies and textile design. With a wealth of choices for buyers, several show highlights are listed below:

• Editor & Designer Zone: located in hall 5.1, the zone will feature international, high-end editor and designer brands brought by leading exhibitors J&C, Julai, Qianbaihui, Prestigious, Shanghai Lotus, SohoCut, Yada, and more.
• Country and region pavilions: premium suppliers from Belgium, Türkiye and Taiwan (China) will exhibit quality products in their designated pavilions in hall 6.1.
• Textile Designs: textile design studios from Japan, Portugal and Taiwan (China), namely Amilia Design Studio, Fine Art Inc and Tela's Design Lda, will also showcase their seasonal designs in hall 6.1.

Adding to buyers’ sourcing options, a multitude of domestic players from different categories will also showcase their respective products. Highlighted exhibitors include top curtain and curtain fabric suppliers Fu-Tex, Hangzhou Aico, Hexin and Xiaoxuanchuang; bedding suppliers Coolist, Huizhou Wah Shing and Yantai North Home; as well as Hightex, Huatex, Maya and Suzhou Roufang from the upholstery and sofa fabric sector.

Fairgoers can also learn more about the upcoming global trends and designs by visiting the ‘2023 – 2024 Intertextile International Lifestyle Trend’ area. In aid of this, Intertextile Shanghai Home Textiles has joined forces with NellyRodi™, the renowned French forecasting agency, to present the design theme for 2023 – 2024: ‘ALIVE’. HUMAN CAPITAL, ROUSING COMMITMENT and UNREAL REALITIES are the theme’s three main trends.

^[1] Globe Newswire: Global Home Textile Market Report 2023-2028: Increase in Consumer Spending on Home Renovation and Decoration Bodes Well for the Sector. https://www.globenewswire.com/en/news-release/2023/03/08/2622718/28124/en/Global-Home-Textile-Market-Report-2023-2028-Increase-in-Consumer-Spending-on-Home-Renovation-and-Decoration-Bodes-Well-for-the-Sector.html

Since 1 April 2023 sales and service of Mayer & Cie. circular knitting machines in Bangladesh have been under new management. A new dynamic team “Mayer Bangladesh” has been formed. Mayer & Cie.’s longstanding Indian representative Batliboi has joined business activities in Bangladesh since the beginning of the month, supported by the team of Brady Services and by Almani Biz.

In Batliboi, Mayer & Cie. has set up a business partner of many decades standing as its representative in Bangladesh. For around 40 years Mumbai-based Batliboi has overseen sales and service of Mayer & Cie. circular knitting machines in India. Abhay Sidham heads Batliboi’s Textile and Machinery Group. He and his team have many years of experience in strategic marketing, and a focus on sustainability and processing recycled raw materials is part of Batliboi’s expertise.

These competences are of relevance in the Bangladesh market because “we face strong competition from Asian manufacturers here,” as Wolfgang Müller, Mayer & Cie.’s sales director, explains. The premium market was growing smaller, and the trend was toward specialities – value-added fabrics, spacer fabrics and athleisure with a high proportion of elastic. Mayer & Cie. sees in these requirements significant potential for its machines – and in Batliboi a partner able in view of its experience to put them to optimal use.

One building block in the set-up of Mayer & Cie. representatives is unchanged. Brady Services will continue with Batliboi to contribute its close ties with the local market. A significant number of existing companies will continue to be looked after by Brady Services.

The new member in Mayer Bangladesh team is Dhaka-based Almani Biz. A lubricants specialist for circular knitting machines Almani Biz has a wide network with Bangladesh knitting industry.

Mayer & Cie. feels well positioned by this new set-up. “We,” Wolfgang Müller says, “are of the opinion that the market for textile machinery in Bangladesh will continue to grow and we are confident that by strengthening our sales, service and marketing team we will be able to make good use of this opportunity.”

Customers in Bangladesh have placed large orders in the past. The latest, placed in January, was for several dozen machines to be delivered this autumn. Further orders from Apex and BEXIMCO (Bangladesh Export Import Company) are also scheduled for delivery in the second half of 2023.

While reorganising the set-up of its representatives in Bangladesh Batliboi has also taken over as Mayer & Cie.’s representative in Nepal, where the company had previously had no local representative. There is a demand for machines for interlock, 8-lock and single jersey, but sales are still in single figures.

Freudenberg Performance Materials Apparel (Freudenberg) launches its biodegradable fusible cotton shirt interlinings range 46xx. With this innovation, the world’s leading specialist in woven, knitted, weft and nonwoven interlinings reduces its impact on the environment and supports customers in achieving their own sustainability objectives. In Asia, the series is marketed under the name 42xx series.

Approved biodegradability and non-toxicity by Hohenstein Laboratories
The new Freudenberg fusible interlinings for shirts and blouses have been developed in such a way that they are harmless to people and the environment at the end of their life cycle. Germany’s independent Hohenstein Laboratories performed biodegradation tests on the 46xx series, based on the Hohenstein method which draws on DIN EN ISO 11721-2:2003 and EN ISO 846, and approved it as biodegradable and ecotoxicologically harmless. The tests by Hohenstein showed no negative effects on either the germination of garden cress nor on earthworms in the acute toxicity test.

Energy-saving interlining
The new biodegradable shirt interlinings also show great potential for energy saving, as the fusing can be performed at a low temperature. Concretely, this means that the resulting temperature between the upper fabric and the shirt interlining during fusing is only 127°C which is significantly lower than the commonly used temperature of 143°C. Certified to OEKO-TEX® STANDARD 100 Class II for successfully testing for no harmful substances, the shirt interlinings are washable at up to 40°C and resistant to dry cleaning. In addition, it has also passed all ecological-toxicological tests and is a perfect end-of-life cycle solution.

Product details and availability
The products in range 46xx are available in Europe in the color white and the following weight classes: 4605 (90g/m2), 4616 (150g/m2) and 4618 (55g/m2). The adhesive of the interlinings consists of a 100% degradable bio-polymer. The shirt interlinings are ideal for reinforcing shirt and blouse collars, cuffs and plackets used in fashion, leisure and business clothing. The biodegradable, non-toxic interlinings are particularly important for labels with an ecologically sustainable claim.

Indorama Ventures Public Company Limited (IVL) reported a record FY22 financial performance from the company’s global manufacturing footprint serving end-consumers’ resilient need for daily necessities. The unusually high level of customer destocking that weighed on the fourth quarter result is expected to have leveled out and business should return to normal operating conditions, with China’s reopening to further spur demand.

Full-year Core EBITDA climbed 31% YoY to $2.3 billion as revenue rose 28% to a record $18.8 billion. The company recorded strong cash flows of $2.2 billion, up 111% YoY. Indorama Ventures’ geographically diversified, integrated platform, backed by management’s agility, withstood unprecedented global events to generate earnings through the business cycle. During the year, the company continued to focus on its growth plan, successfully integrating its strategic surfactants business in Latin America and Vietnamese packaging acquisition. A dedicated senior team is working tirelessly and is committed to the company’s ‘Vision 2030’ sustainability goals including recycling technologies and introducing biomass feedstock to the company’s product portfolio. The ongoing ‘Project Olympus’ cost transformation program delivered an annual run rate of $449 million in efficiencies.

The annual result was impacted by an unusually challenging final quarter as fears of a recession and reduced transit times led to widespread destocking by customers. 4Q22 Core EBITDA declined 43% YoY to $264 million on a 1% drop in revenue to $3.9 billion. The pandemic lockdown in China also continued into the final quarter, reducing factory demand across Indorama Ventures’ portfolio and resulting in narrower margins from lower prices and higher costs. Higher energy and utility costs impacted European operations as the war in Ukraine continued into the winter.

To improve competitiveness and build resilience, Indorama Ventures rationalized underperforming assets in the Fibers business in Europe and a PTA site in Asia, resulting in a $7 million cash impairment in 4Q22 and a $253 million non-cash impact. As a result, the company looks forward to a $38 million uplift in EBITDA in 2023, reaching up to $65 million by 2025.

Archroma announced the closing of the acquisition of the Textile Effects business from Huntsman Corporation (“Huntsman Textile Effects”).

When the Huntsman Textile Effects acquisition was first announced in August 2022, Archroma Group Chief Executive Officer (CEO) Heike van de Kerkhof called the transaction a “merger of equals”. Indeed, the global business of Huntsman Textile Effects comprises approximately 2,300 employees in 33 countries and 10 production sites globally which, when combined with Archroma, means the company will have more than 5,000 employees in total, in 42 countries and 35 production sites.

In addition to the closing of the Textile Effects acquisition, Archroma announced that it has updated its overall business into two operating divisions for growth, each focused on a separate end market.

The Textile Effects business acquired from Huntsman will be integrated with the Brand & Performance Textile Specialties business of Archroma into one new division named Archroma Textile Effects. The new division will be led by Rohit Aggarwal, former President of Huntsman Textile Effects, who is appointed as Divisional President & CEO of the Archroma Textile Effects division, as well as President Asia.

The Packaging & Paper Specialties and Coatings, Adhesives & Sealants businesses of Archroma have been recently combined into one new division named Archroma Paper, Packaging & Coatings, under the leadership of Sameer Singla, Divisional President & CEO of the Archroma Paper, Packaging & Coatings division, as well as President Americas and Europe, Middle East & Africa.

This new structure will ensure that both divisions obtain the resources and focus needed to continue providing Archroma’s customers and business partners with the superior experience and solutions they have come to expect.

In particular, Archroma is committed to supporting global megatrends and societal shifts such as circular fashion, plastic-to-paper replacement, and water-based paints and coatings, with the innovations and solutions needed to do so.

• Business situation has worsened markedly but not expectations.

The 17th ITMF Global Textile Industry Survey (GTIS, formerly known as ITMF Corona-Survey) shows that on average the business situation in the global textile industry has deteriorated further in November 2022. At the same time, global business expectations in six months’ time remained in negative territory but did not get gloomier. The indicators for order intake, order backlog, and capacity utilisation rate dropped, globally.

According to the survey, the business situation in the three Asian regions and Europe remained especially poor. In North & Central America the business situation has improved again markedly. Except for the textile machinery segment that still benefits on average from a long order backlog, all other segments found themselves in negative business situations, especially fibre producers and spinners. Global business expectations have remained negative but “stabilized” around -10 percentage points (pp) since July 2022. Expectations have improved significantly in South Asia to +10pp, and Europe to -30pp. Business expectations in all segments remain negative territory with four out of seven recording improvements.

Order intake nose-dived in November, in line with weaker business situation and weaker demand, currently the biggest concern for the global textile value chain. Only companies in North & Central America registered on average a good order intake, while all other regions were faced with an unsatisfactory order situation. Except for South-East Asia and North & Central America order backlog fell. The only segments where order backlog increased were the down-stream segments garments and home textiles. Capacity utilization rate dropped in all regions in November 2022. It only increased in the textile machinery segment but fell otherwise.

“Weakening demand” is by far the biggest concern in the global textile industry, followed by the root causes of demand reduction, namely high energy and raw material prices which lead to high inflation rates. Good news is that logistical costs are not much of a concern anymore. Concerns about geopolitics on the other hand have increased again in the past two months.