From the Sector

In the Canopy’s 2021 Hot Button Ranking, Kelheim Fibres once again occupies a leading position: With a increase of 2.5 points in the evaluation, the Bavarian viscose speciality fibre manufacturer tied for third place out of around 40 viscose fibre manufacturers worldwide and a dark green/green shirt for the second year running. The Hot Button Report not only stands for responsible raw material sourcing - it is an overall sustainability indicator for viscose fibre producers.

Especially in the areas of transparency and procurement, the NGO Canopy, which is committed to the preservation of ancient and endangered forests, awarded Kelheim Fibres top points: Kelheim Fibres is the only EMAS-certified viscose fibre manufacturer worldwide and publishes all environmentally relevant data publicly.

Kelheim Fibres also gained points in the area of "Next Generation Solutions" - the use of alternative raw materials in fibre production. Together with the Swedish textile recycling company Renewcell, the fibre experts are planning to realise the large-scale production of high-quality viscose fibres from up to 10,000 tonnes of the 100% textile recyclate Circulose® per year.

Montalvo has promoted Bryon Williams to Chief Executive Officer (CEO). Having previously served as Montalvo’s Chief Operating Officer (COO), Mr. Williams will continue to develop, expand, and execute Montalvo’s short-term and long-term growth strategies expanding into new markets, developing Montalvo’s product line, strengthening Montalvo’s international presence, and growing Montalvo’s market.  

Mr. Williams says “It has been such an honor working at this company over the past 11 years, and I only see greater success for the company as Montalvo has one of the strongest teams in its history, with a focus on innovation and achieving our vision of becoming the global leader in Web Control Systems and solutions. We are expanding our reach into new industries and will be coming out with new products and solutions that reset expectations on Web Control, while at the same time branching out to offer customers complete solutions for their Web Handling needs through in-house capabilities and a strong partner network. We continue to provide one of the highest levels of application, product, and process knowledge, and are constantly recognized by our customers for providing levels of support and service that others simply can’t.”

International technology group ANDRITZ has received an order from Welspun Advanced Materials, India, to deliver a complete neXline spunlace line for the production of nonwoven roll goods and wipes for their new plant in Hyderabad, Telangana. The line has a capacity of up to three tons per hour. Start-up of the line is scheduled for the fourth quarter of 2021.

The ANDRITZ high-capacity spunlace line will process various types of synthetic or natural fibers, such as polyester, viscose and cotton. The final products will have fabric weights ranging from 25 to 120 gsm, thus covering many applications. This neXline spunlace line also offers the option to integrate a third component from a selection of smart layers, enabling Welspun to also manufacture products for the health care and hygiene sectors.

Welspun is the largest global exporter of home textiles. Innovation and quality lie at the heart of the company’s success, which already has nonwoven production lines in operation, including needlepunch and spunlace equipment. With its new plant in Telangana, Welspun will significantly increase its existing spunlace capacity and also maintain a broad range of applications as the final products are used in hygiene, home care and industrial cleaning. The new, advanced facility is a 100,000 sqm greenfield development that is part of a larger 1,500,000 sqm industrial complex also accommodating the Welspun floorings facility.

Composites Evolution exhibited at the Advanced Engineering 2021 show on 3rd - 4th November highlighting its range of prepreg and introducing a new thermoplastic tape manufacturing capability.

Composites Evolution is a developer, manufacturer and supplier of prepregs for the production of lightweight structures from composite materials. A flexible approach allows Composites Evolution to offer short lead times and low minimum order quantities, while decades of combined expertise ensure that in-depth technical support is on-hand when customers need it.

Showcased was a battery box from a high-performance luxury electric vehicle manufactured from Evopreg® PFC bio-based, fire-resistant prepreg, a rear wing from a Ginetta G56 GTA GT4 race car utilising Evopreg® ampliTex™ natural fibre prepreg, and parts fabricated from the company’s newly-launched Evopreg® PA thermoplastic tape range.

Composites Evolution has a family of specialist prepregs for various applications, including Evopreg® EPC epoxy component prepregs which are a range of pre-impregnated fabrics suitable for moulding into high-performance, lightweight, structural components; Evopreg® EPT epoxy tooling prepregs which have been designed to help composite tooling manufacturers improve the flexibility and efficiency of their tooling manufacturing processes; and Evopreg® PFC fire-retardant prepregs a 100% bio-derived alternative to phenolics for applications where fire performance is a critical requirement.

Evopreg® ampliTex™ combines Composite Evolution’s high-performance Evopreg® epoxy resin systems with Bcomp’s award-winning ampliTex™ flax reinforcements, to deliver a family of materials which offer outstanding performance for component applications.

Composites Evolution launched their new range of Evopreg® PA Thermoplastic Tapes at Advanced Engineering; these are manufactured from polyamide-6 (PA6) polymer with unidirectional carbon fibre and are suitable for automated tape laying, winding and compression moulding into high-performance, lightweight components.

Indorama Ventures Public Company Limited (IVL) reported a strong 3Q 2021 performance amid record production volumes. The company maintained its positive outlook for the rest of the year and 2022, noting caution as headwinds including higher energy prices and supply chain disruptions weigh against resurgent consumer demand.

IVL reported EBITDA of US$478 million in Q3 versus US$552 million in the previous quarter and US$240 million a year earlier. Production volumes reached 3.73 million metric tons, a record, as the global recovery drove consumer demand for IVL’s products.

As the global economy recovers from the pandemic, consumer appetite and increasing Brent crude oil prices are testing supply chains and driving a commodity boom, with manufacturers running at full capacity. This has driven increases in freight prices and a shortage of materials.

Still, IVL posted a solid YTD performance, ending the first nine months of 2021 with EBITDA of US$ 1,512 million, up 123% YoY. The Integrated Oxides & Derivatives (IOD) segment will start to reap the full benefits of the hot commissioning of the Lake Charles gas cracker (IVOL) in Q4 and beyond, as well as continued advantaged shale gas economics.

In Q3, Project Olympus, the company’s cost saving and business transformation project, achieved US$63 million in efficiency gains, and is on track to achieve a total US$610 million of savings by 2023. IVL also implemented enhanced disclosures in governance, strategy, risk management, and metrics and targets, and launched a comprehensive financial policy and governance structure to accelerate environmentally driven projects.

IVL strengthened its Indorama Management Council (IMC) – the company’s highest operational management committee – by rotating experienced executives and adding the COOs of the Fibers and Integrated Oxides & Derivatives (IOD) segments. The appointments will help build the segments into self-sustaining organizations while also rotating expertise across the IMC.

3Q 2021 Performance Summary

• Consolidated Revenue of US$ 3,867M, an increase of 9% QoQ and 50% YoY
• EBITDA of US$ 478M in Q3 versus US$552 million, a decrease of 13% QoQ and an increase of 99% YoY
• Reported annualized EPS of THB 4.53 and core annualized EPS of THB 4.09

JIAM 2022 OSAKA, organised by the Japan Sewing Machinery Manufacturers Association (JASMA), will start accepting exhibitor applications for its next edition to be held from 30 November to 3 December, 2022 in the INTEX OSAKA. JIAM 2022 has decided its exhibition theme as “It all connects at JIAM -the forefront of technology and master craftsmanship” and the show will serve as a global platform for the resolution of issues required in this era of change. The 2022 edition will be providing solutions catered to each and every needs by combining existing high-level skillsets that has survived the drastic market change in the past, with the latest technology that has built on knowledge and the history.
 
JIAM, one of the world's leading sewing equipment trade fairs, is an international trade fair that brings together cutting-edge technologies, products, and services from domestic and overseas manufacturers. The previous edition of JIAM 2016 welcomed 258 exhibitors from 15 countries and regions as well as 15,257 visitors from 72 countries and regions, mainly from Bangladesh, China, India, Korea, Taiwan, Sri Lanka, and Vietnam.

Following a thorough assessment by rating agency S&P adidas’ sustainability performance has received an outstanding evaluation. Assessed across Environmental, Social and Governance (ESG) dimensions, adidas was awarded with an ESG Profile Score of 79 out of 100. Combined with a strong Preparedness Score (+6), the company’s overall ESG Evaluation Score amounts to 85, placing adidas sixth in the entire S&P Global Rating Universe.

In its assessment, S&P emphasizes adidas’ industry-leading approach to innovation, supply chain management and consumer engagement. In particular, credit is given to adidas’ ambitions to scale the use of sustainable materials, to expand circular services and to deliver against ambitious net-zero emission targets. In addition to adidas’ strong control mechanisms over its supply chain ensuring fair and safe labor practices, the analysis also calls out the integration of a sustainability target into the compensation system of the Executive Board. The close interaction between the Supervisory Board and the Executive Board is seen as exemplary and supportive of the overall strategy execution.

Indorama Ventures Public Company Limited issued a THB 10 billion triple-tranche Sustainability-Linked Bond, showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The bond is part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability Linked Loan Principles.

The SLB is linked to IVL’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.

On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.

Under the terms, all tranches must purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets in the event of failure to meet the sustainability performance targets (SPT). The testing dates for tenors with a maturity of 5 and 7 years are 31 December 2025, and 31 December 2030 for the 10.5-year tenor. SPT performance will be independently verified upon the testing dates.Proceeds for the issuance will be used to finance IVL’s corporate working capital and refinance existing debt.

In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.

From 26/10/2021 til 29/10/2021 PFAFF INDUSTRIAL has participated at thw A + A fair in Düsseldorf/Germany - one of the few IN-PERSON-EVENTS in 2021. The A + A event is the leading International trade fair for safety, security and health at work. 1,204 exhibitors from 56 nations and more than 25,000 trade visitors travelled to Düsseldorf, Germany to attend the sector’s most relevant trade fair. PFAFF INDUSTRIAL showcased several industrial sewing- and welding solutions on a common booth with Duerkopp Adler.

PFAFF 1591:
Electronic postbed shoe machine with new programmable thread tension device. The machine is stepping motor driven - no tolerance of the stitch lengths at different speeds. Top-quality for all assembly and decorative seams are ensured.

PFAFF 3590:
CNC Large-area sewing unit (500 x 400 mm sewing area) for full-automatic topstitching of work shoe uppers. The machine guarantees accurate seam quality due to the intermittent feed (feed stop when needle enters material); shifting of the material in the work clamp is avoided and wear on the hook is reduced. The vertical hook system ensures excellent multi-directional sewing properties.

PFAFF 8303i:
Hot-air taping machine for welding continuous seams on water-resistant, waterproof and breathable materials. The fair machine has been shown with post from back which is predestinated for the show production.

PFAFF 8323:
Hot-air welding machine for welding of reflective strips on work, sports, protective and saftey wear with up to 70% time savings compared to conventional processing

PFAFF 8311 (005 001):
Ultrasonic welding machine with sonotrode (steel) and automatic welding force control.

PFAFF 8311 (105 001):
Ultrasonic welding machine as C&S DUAL version – Cutting and welding a second seam in ONE operation. New and key feature of this version - the cutting wheel can be switched on and off via the touch control panel.

• CHIC Shanghai successfully completed under high safety and hygiene conditions
• The trend hotspot for the Chinese sales market: Lively interest of more than 20,000 trade visitors in the new collections of the 487 brands at the NECC in Shanghai
• Sustainability in great demand in all areas
• CHIC Shenzhen focuses on trading in the strong sales region of South China and the international clusters Hong Kong and Macao: Date postponed from November to December due to current Covid-19 cases in China

The fashion world of China met at the physical event CHIC Shanghai from October 9-11, 2021 at the National Exhibition and Convention Center in Shanghai

487 exhibitors presented themselves in clearly structured segments on 50,000 square meters. Maximum compliance with the security measures determined the course. Against this background the exhibitors welcomed more than 20,000 trade visitors and reported cheerful orders.

The 487 exhibitors were also satisfied with the business activity and reported successful orders.

Perfect presentation platform: the CHIC Matching area
The expanded matchmaking events at CHIC were also enthusiastically received.
In total, over 37 matchmaking events took place in the specially set up matching area consisting of several presentation platforms and private negotiation rooms at the fair. From company presentations by industry giants such as Shein, through trade fair tours to selected one-on-one discussions, CHIC brought exhibitors and visitors together in a targeted manner. More than 600 participants have been matched by this CHIC event. Among them visitors such as Shein, Walmart, Wang Yi Yan Xuan, Tiktok, BAILIAN GROUP, LIQUN etc, parts of the organizer's broad network.

Continuing growth: sustainable productions
Sustainability is one of the most important consumer trends in China. CHIC played the theme in all exhibition areas; from womenswear, kidswear and menswear to accessories, sustainable collections were represented in all segments.

Design talent and traditional styles
In the IMPULSES area, innovative designer brands showed inspiring trends, high-quality collections and fashion variety like Kmusso, MIJA or Yu Jian Tian with its new design collection made by natural materials such as mulberry silk and wool, presenting the unique traditional Chinese style.

CHIC Shanghai presented the entire range of the fashion business in a total of 12 exhibition segments. This year's acclaimed visual concept, created by lava beijing, has been awarded the Bronze Award of the Hiiibrand Awards 2021 in the Identity category.

Digital tools and physical events
In addition to the on-site trade fair offer, CHIC is expanding its reach through the consistent use of digital tools. The CHIC app combines all the functions needed for a successful trade fair participation, from the digital trade fair catalog and matchmaking to direct appointments and live chats for all participants who cannot be on site.

The next CHIC in Shanghai will take place in March 2022.