From the Sector

AkzoNobel has updated its Q2 outlook based on the impact of the evolving business environment, including the effect of China lockdowns and the slower start to the EMEA DIY season.

Overall demand signs for paints and coatings remain robust, with North America still constrained in raw material availability and logistics, but sequentially improving. In Europe in particular, macro-economic uncertainty related to consumer confidence has increased.

Consumer demand in the Deco DIY channels in Europe – which represent 40% of total Deco EMEA revenue – got off to a slow start in Q2, subsequently impacted by inventory reductions in the DIY channel. In June, Deco DIY channel demand improved back to 2019 levels. Despite share gains and our Deco Professional business performing as anticipated, the total Q2 operating income for our Decorative Paints segment is expected to be down by approximately €50 million versus expectations entering the second quarter.

COVID-19 lockdowns in China during Q2 impact both paints and coatings. This impact was mainly on our coatings business, while paints was able to almost offset by progressing with its geographical expansion initiatives. The re-opening in June is showing a positive rebound, but not enough to catch up on all the missed revenue in the quarter, resulting in a negative operating income impact of approximately €40 million for the quarter, versus expectations entering Q2.

AkzoNobel continues to focus on achieving its €2 billion adjusted EBITDA target for 2023, despite the volatile market environment having a material impact on the company’s Q2 2022 financials.

With an annual report entitled 'Here.We.Go' and a sustainability report 'Shaping sustainable living, together', B.I.G. is also publishing a strong ambition for a sustainable future.

Offering sustainable flooring and material solutions will be the number one priority for the coming years.

The Group's first sustainability report is built around a self-designed sustainability model - "Route 2030" - which is based on achievable commitments, covers the main priorities and reflects B.I.G.'s vision in a sincere way.

Their vision for the B.I.G. change is to actively build a better future by their our carbon footprint to zero and doing business in a transparent, integer way. In this sense, it is the translation of the Group's purpose defined in 2021: shaping sustainable living, together.

Pol Deturck adds “By 2030, together with a broad group of suppliers, stakeholders and partners, we want to be the leader in sustainable flooring and material solutions. Specifically, our future value proposition is based on products and services that are environmentally & climate friendly, circular and offered by talented, innovative people with an emphasis on integrity and respect for values. This results more in a recurring value proposition for the future.”

Clear growth ambitions
As a 100% family-owned international Group with a clear long-term vision, B.I.G. stayed true to their plans and kept on investing in all areas of their business.
“The ambition for 2021 was to invest over 100 mio euro. But we were held back by external, unforeseen factors: from delays on quotes and execution to the lack of availability and resources due to the pandemic. If all goes as planned, we’ll make up for it in 2022 with an investment budget well over 100 million euro. The main areas of interest will be sustainability, innovation and Industry 4.0.” says Pieter-Jan Sonck, CFO of B.I.G.

Adding to the gradual top-line growth of recent years, the Group can look back on an unprecedented financial boom. The driving forces: favorable market conditions, a revitalized growth strategy and a team of nearly 5.000 first-class employees.

B.I.G. reported a turnover of EUR 2,5 billion, an increase of 45 % compared to 2020. The Group ebitda amounted to EUR 451 million, an increase of 120 % compared to 2020 and a net result of EUR 274 million, a growth of 215% compared to 2020.

Fruitful year for all Business Units
It was a fruitful year for all 3 business units, but the Group's business unit Polymers stood out. Exceptionally strong demand in Europe and North America, combined with raw material shortages and unplanned shutdowns of competitors, pushed prices and margins up to highs. The Polymers facilities ran at full capacity to meet the customers’ needs and hit all-time profit records during several months.

The Group's business unit Flooring Solutions also fared well. Most divisions and regions outperformed amid surging energy prices, disrupted supply chains, cost volatility in transport and raw materials, and other challenges. Their sustained focus on innovation, design and product differentiation led to an improved operating result at the end of 2021.

The achievements by Engineered Solutions echo those of the other two business units, from volume increases to budget increases. B.I.G. took big leaps forward in all its key markets, including the automotive sector, geotextiles and filtration.

• Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
• Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
• Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
• Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
• Net income from continuing operations reaches € 310 million
• FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate. Backed by an exceptionally strong wholesale order book and relentless focus on driving growth in our own DTC channels, we expect this positive development to continue for the rest of the year,” said adidas CEO Kasper Rorsted. “In the East, we will return to growth in Asia-Pacific in the second quarter, while we expect the challenging market environment in Greater China to continue. With strong double-digit growth in the vast majority of our markets, representing more than 80% of our business, we are well positioned for success in 2022. “

For the full press release, see attached document.

With the wipes sector adapting to demands for products that protect consumers from COVID-related risks, industry experts will present the latest insights for moving forward post-pandemic at the World of Wipes® (WOW) International Conference.   

The shift from “clean” to “safe” in the world of wipes will be among the key topics thought-leading speakers will address at the in-person event, June 27-30, at the Marriott Marquis in Chicago.

The information-packed program will tackle timely topics to support decision making on the following key themes: Circular and Sustainable Wipes, Supply Chain Challenges in Wipes, Nonwoven Substrates for More Sustainable Wipes, Trends in the Wipes Market and Among Consumers, Disinfection Concerns and New Technologies, Sustainable Wipe Packaging Trends and Developments in Flushability Issues.

World of Wipes Session Highlights

• Lifestyle Shifts and the World of Wipes: Meeting the Changing Consumer Demand to Secure Growth – Liying Quian, Research Analyst, Euromonitor International will explore personal and beauty care trends based on consumer surveys that could shape wipes’ long-term performance
• The Supply Chain – Import Pressures Versus Domestic Manufacturing – Jacob Smith, Director, Supply Chain and Customer Care, Health, Hygiene, and Specialties Division, North America, Berry Global will share his expertise and experience on how COVID-19 has impacted domestic production and international sourcing of wipes
• Packaging Sustainability:  A Global Perspective – David Clark, Vice President of Sustainability, Amcor will look at how consumer brands, retailers and others are responding to consumer demand for more sustainable packaging and discuss progress and risks in the U.S. and other countries
• How Sustainable are You Willing to Be? New Technology to Support Use of Recycled Fiber Sources – Richard Knowlson, Principal, RPK Consulting will tackle the question of how new manufacturing technology can help produce more sustainable nonwoven substrates in today’s price-sensitive environment
• Dead Turtle Logos – What We Know So Far in the EU – Heidi Beatty, Chief Executive Officer, Crown Abbey, LLC will share the latest learnings on the European Union’s Single Use Plastic Directive and the impact of the plastic-free packaging logos on consumer attitudes
• Challenges and Pitfalls of Scaling Up a Waste Cleaning Wipes Collection and Recycle System – Sergio Barbarino, Research Fellow, Fabric and Home Care Open Innovation, Procter & Gamble Distribution Company Europe will look at cleaning wipes’ potential to be recycled and become a convenient pioneering experimental platform
• Case Study: Surface Disinfection Incompatibility with Medical Devices Creates Potential Patient Risks – Caroline Etland, Ph.D., RN. CNS, ACHPN, Associate Professor, Hahn School of Nursing, BINR, University of San Diego will share real examples of the issues healthcare facilities face with surface disinfection incompatibility that make cleaning and disinfection a major challenge

In addition to the conference program, WOW 2022 also features two nights of tabletop displays and receptions; the presentation of the World of Wipes Innovation Award® and the INDA Lifetime Technical Achievement Award; and 11 hours of face-to-face engagement during a welcome reception, first-time attendee mentorship program, and breakfast connections. The event kicks off with the WIPES Academy, a 1.5-day value-added training opportunity on June 27-28.

• Winners in Six Categories to be Announced at IDEA® 2022 in Miami Beach

Online voting for the IDEA® Achievement Awards representing the “best of the best” innovations in the global nonwovens and engineered fabrics industry in six categories will open on Feb. 28.

Industry professionals will have the opportunity to vote for the winners from the finalists and see award-winning achievements in person at IDEA® 2022, the World’s Preeminent Event for Nonwovens & Engineered Fabrics, March 28-31, at the Miami Beach Convention Center.

Presented by INDA, in partnership with Nonwovens Industry magazine, the awards recognize the leading introductions in equipment, raw materials, short-life, long-life and nonwovens products, and sustainability. To vote on the Nonwovens Industry website, visit: https://www.nonwovens-industry.com/idea-reg-achievement-awards

In addition, INDA will unveil the IDEA® 2022 Lifetime Achievement Award honoree and Nonwovens Industry will announce the IDEA® Entrepreneur Achievement Award recipient at the event.  

All of the winners will be announced on March 30 at a ceremony at IDEA® from 9:30 a.m. to 10:30 a.m. moderated by Dave Rousse, President, INDA and Karen, McIntyre, Editor, Nonwovens Industry.

The INDA Technical Advisory Board, consisting of technical professionals from member companies, has narrowed the competition from more than 100 online nominations to the following 18 finalists selected for their leading innovations since the last IDEA show in 2019.

The industry will have the chance to select their top choices from the three finalists in each of the following six categories through the online voting process:

IDEA® Equipment Achievement Award

• ESC-8 – Curt G. Joa, Inc.
  Imagine endless combinations of insert and chassis designs for adult incontinence production at the push of a button. With patent-pending ESC-8™ Electronic Size Change Technology, JOA has addressed the need for automated product size change. The release of this industry-leading, first-of-a-kind technology gives customers the flexibility to configure endless insert and chassis combinations while maintaining higher production speeds and minimizing raw material usage. The ESC-8™ can be integrated into new and existing machines.
   
• Elastic Thread Anchoring (ETA) Sonotrode – Herrmann Ultrasonics Inc.
  Elastics are an integral component to many hygiene products. Imagine a diaper or incontinence product that is reliable, adhesive-free and extremely soft. Herrmann Ultrasonics Elastic Thread Anchoring (ETA) Sonotrode technology provides just that, in an industry first, easy-to-use closed-loop feedback manufacturing solution. The fixation of the elastic threads is accomplished with ultrasonic energy that offers a wide process window, without the need for tool changeovers, at processing speeds above 2,000 ft./min.
   
• Doffer Airlay Card – Technoplants SRL
  With airlaying suction and a doffing system like traditional roller cards, the Doffer Airlay Card makes it possible to produce carded webs with doffer in thicknesses from 10 to 1.500 gsm. With top and bottom suction, it can produce a partly carded and partly airlaid web. This card can comb, separate and make parallel all types of natural, synthetic and regenerated fibers for applications including hygiene, filtration, medical and gradient acquisition distribution layer (ADL).

IDEA® Raw Material Achievement Award

• sero™ premium hemp fiber – Bast Fibre Technologies Inc.
  sero™ 100 percent premium hemp fibers are the result of years of the company’s top-to-bottom supply chain experience. BFT’s proprietary processing technology is employed to carefully clean, individualize, and soften bast fibers that meet stringent nonwoven technical standards and are plastic-free, tree-free, and compostable. sero™ fibers are a plug-and-play replacement for plastic fibers that run seamlessly on major nonwoven platforms without compromising production speeds, efficiency, or uniformity.
   
• ODOGard – Rem Brands, Inc.
  Rem Brands, Inc.’s patented ODOGard® technology is a revolutionary advancement in odor elimination. This next-generation odor elimination mechanism works by covalent molecular bonding to malodors. Malodors are permanently attached to the ODOGard® molecule, changing them into non-odorous molecules forever. ODOGard® can be impregnated into pulp fluff and other kinds of media. Whether  malodors come from the air or from hygiene products, ODOGard® has it covered.
   
• SharoWIPES™ – Sharon Laboratories
  SharoWIPES™ by Sharon Laboratories, Israel, is a technological breakthrough from in-depth scientific research addressing industry needs for more “clean label, non-irritating, eco-friendly” consumer wet wipes. With their unique anti-biofilm mechanism, SharoWIPES™ offer dual protection from microbial contamination of both the wet wipe formula, as well as the non-woven fabric. SharoWIPES™ preservation systems deliver broad-spectrum protection at low levels contributing to wet wipe brand equity with free from, microbiome friendly, vegan and biodegradable claims.
   

IDEA® Short-Life Product Achievement Award

• MDP™ – Dermasteel, Ltd.
  MDP™ presents a breakthrough approach to restoring the quality of life for men experiencing bladder leakage. MDP™ is a revolutionary nonwoven product for men coping with light urinary incontinence that is invisibly discreet, effective, comfortable, and reliable. It features Body ID Technology™ for customized adjustment, variable elasticity strapping, self-reflexive side panels for unimpeded breathability, form-fitting to the unique characteristics of each man’s anatomy, and the smallest carbon footprint of any comparable male incontinence option.
   
• Organic 2.0 – Ellepot A/S
  In young plant propagation, plastic products are used in large quantities. Ellepot’s new paper is a game-changer supporting plastic exit strategies. During six years in development, Ellepot and Ahlstrom-Munksjö partnered with OrganoClick, the developer of special binders using organocatalysis, a field of chemistry awarded the Nobel Prize in 2021. The product is approved for organic crops in Germany, the UK, Denmark, The Netherlands, Sweden and Canada and certified okay home compostable and biodegradable in soil.
   
• LifeSavers Wipes – LifeSavers LLC
  LifeSavers Wipes are personal hygiene wipes that change color if they detect abnormal health indicators in the urine. The launch product is a diabetic wipe, which will change color if there are abnormal levels of glucose in the urine. The wipes are therefore triple purposed as they assist with personal hygiene after urinating, act as an early warning system, and serve as an instant glucose monitor. UTI and kidney disease wipes are next in line.
   

IDEA® Long-Life Product Achievement Award

• Canopy Hero Pro – Canopy
  Today’s reusable respirators are uncomfortable, limit communication, and can lose effectiveness after cleaning. Disposable options pose similar issues and generate waste. Canopy® has created a next-generation, reusable respirator for healthcare workers that’s comfortable, easy to clean, exceeds federal safety standards, has a transparent front to allow for improved communication, costs less than disposables, and can help save 7,200 tons of waste daily. Its patented, transparent, fully mechanical filter helps protect those who protect us.
   
• Long-Life Cellulose-based Nonwovens for Higher Performance in Reusable Baby Diapers – Kelheim Fibres GmbH and Sumo Diapers
  Innovation exemplified: the trend-setting Sumo Baby Cloth Diaper shows how needle-punched/thermobonded nonwovens find their way into reusable diapers, thanks to Kelheim Fibres’ specialty viscose fibers with adjusted cross-sections (trilobal and hollow). This technology pushes liquid management capabilities and the absorbency of washable hygiene products to new levels, creating a unique duality of high-performance and high-sustainability credentials, and opening up new fields of application.
   
• Nanofiber Cabin Air Filter – MANN + HUMMEL GmbH
  MANN+HUMMEL has developed a hybrid media by combining electret-based spunbond and a pure mechanical filtration layer of ultrafine polymer fibers. The result: an outstanding separation of PM1 particles up to 95 percent, according to DIN EN ISO 16890. This technology enables stable filtration performance and long-term efficiency over the whole filter lifetime. The nanofiber layer can be combined with any cabin air filter media of the MANN+HUMMEL range, improving air quality in a vehicle’s cabin significantly.
   

IDEA® Sustainability Advancement Award

• Pureflow8 – In Flight Material Separator – Diaper Recycling Technology Pte. Ltd.
  New bolt-on additions to the company’s Generation 8 recycling platform guarantee increased performance in terms of material purity and work efficiency. While recovering up to 87 percent of diaper waste raw material’s financial investment, DRT pushes the boundaries further to meet sustainability targets and include active pulp scanning, fluidizing SAP re-gen technology, and gravimetric pulp refeed processes. DRT recognizes its teams and suppliers who have worked tremendously hard to complete this major milestone.
   
• Fitesa® 100 Percent BioBased Bico – Fitesa
  Fitesa® S Bico 100 percent BioBased PE/PLA is a technically sophisticated plant-sourced nonwoven that has been successfully applied in innovative baby diapers as topsheet, backsheet, and front ear components to deliver classic spunbond strength with good abrasion resistance and converting performance. It is responsibly sourced, PE soft, and sustainable, leaving a negative carbon footprint by reducing environmental CO2. It represents the next generation of hygienic nonwovens designed to make work easier and life better.
   
• Fiber-based Screw Caps – Glatfelter Corp. and Blue Ocean Closures
  Finally, an alternative to metal and plastic screw caps! Blue Ocean Closures partnered with Glatfelter and ALPLA to accelerate and produce sustainable and environmentally-friendly packaging solutions. The companies optimized their use of renewable and recyclable wood fibers and airlaid materials by creating paper-based screw caps that are durable, strong, and water-resistant. The method of proprietary vacuum press forming allows for low production cost and high scalability.
   

IDEA® Nonwoven Product Achievement Award

• Sontara® Silk – Glatfelter Corp.
  Sontara® Silk perfectly fits facial contour, is luxurious on the skin, and has a minimal environmental impact. When infused with lotion, these masks have enhanced elasticity, conform closely to the skin, and have excellent adhesion. Sontara® Silk has superior translucency and ensures even penetration of active ingredients onto the skin. Sontara® Silk fabric is manufactured with premium fibers derived from natural raw material. These sustainable materials allow the product to be biodegradable and compostable.
   
• HYDRASPUN® Aquaflo – Sustainable Nonwoven Substrates – Suominen Corporation
  Suominen’s latest moist tissue product, HYDRASPUN® Aquaflo achieves dry tissue dispersibility through a proprietary blend of 100 percent sustainable cellulosic materials, minimizing environmental impact. This flushable nonwoven has a premium hand feel for a luxurious consumer experience. In addition, it passes dispersibility standards set by INDA (GD4) and the International Water Services Flushability Group (IWSFG.) HYDRASPUN® Aquaflo is produced in Europe and North America and represents multi-year development and market insights to deliver a personal care product ideal for today’s consumer.
   
• LS SAF™ Nonwoven Fabrics –Technical Absorbents
  Technical Absorbents developed a new grade of Low Shrink (LS) superabsorbent fiber (SAFTM) for use within a new range of nonwovens that are more resistant to shrinkage. The new LS SAFTM fiber and resulting fabrics were developed in response to demand from the medical industry for a superabsorbent nonwoven suitable for use in advanced wound pad dressings. The new fiber was engineered to be capable of withstanding the moisture used in the EtO sterilization process.

Moving forward after this year, the IDEA® Achievement Award will be presented every two years under the new cycle announced for the event with the subsequent IDEA® taking place April 23-25, 2024.

Global Organic Textile Standard (GOTS), the Organic Cotton Accelerator (OCA) and Textile Exchange are delighted to announce the renewal of the global ISO IWA 32:2019 proficiency test for a second year in a row, under technical support from Wageningen Food Safety Research.

The initiative aims to provide the sector with an up-to-date overview of global laboratories that can currently conduct GMO testing as per the ISO IWA 32:2019 protocol – a common language among laboratories worldwide to screen for the potential presence of genetically modified (GM) cotton along the organic cotton value chain.

The joint project involving three global NGOs in the textile sector, announces that it has reached a new milestone with an expanded list of twenty-one laboratories from Europe, Asia and North America who have successfully passed a new round of the proficiency test in 2021.

As qualitative GM cotton screening using the ISO IWA 32:2019 protocol is mandatory within the GOTS and OCS (Organic Content Standard) supply chain and OCA’s Farm programme, the expanded list will provide many stakeholders in Organic Cotton with the clarity they need for taking all reasonable precautions to prevent GM cotton in their organic cotton produce while supporting the rapid sector growth seen globally.

The updated overview of the laboratories that successfully passed the proficiency test in 2021 has now been jointly published by GOTS, OCA and Textile Exchange.

The initiative now in its second year, will drive greater transparency along the organic cotton supply chain in a move that the partners hope will become a fixed bi-annual initiative stemming from the positive feedback from the initial launch in 2020.

Albarrie – a major player in North America’s industrial nonwovens industry – is now benefiting from one of the first Monforts Montex stenter installations equipped with the full range of MonforClean heat recovery and exhaust air purification technologies.

With the new three-chamber Montex stenter at its plant in Barrie, Ontario, the Canadian company is treating specialised needlepunched nonwovens up to 4mm thick. These have applications in a wide range of filter media and performance fabrics.

The new Montex is enabling Albarrie to heat set and dry its materials to produce denser, higher quality fabrics which can also be finished and delivered to customers more rapidly.

Across timezones
It took a crew of skilled millwrights, electricians and product specialists to build the line which was delivered in 11 shipping containers to Albarrie’s production facility. The line was originally scheduled to be fully operational in the Spring of 2020, but the ongoing global Covid-19 pandemic inevitably led to several delays during the start-up and commissioning process.

Energy savings
The Albarrie Montex line’s MonforClean capabilities include an air-to-air cross flow heat exchanger and an electrostatic precipitator providing the ability to purify the exhaust air and to recover energy to a maximum of 22,500 cubic metres of air per hour, resulting in a radical reduction in the conventional heat supply required. The MonforClean was developed in cooperation with partner KMA Umwelttechnik, based in Königswinter, Germany.

The fully automated system is powered by a Siemens SPS S7 controller and KP 700 touch panel from which the recycled energy can be continuously monitored and savings calculated.

The three-chamber Montex stenter is fitted with the latest Monforts Qualitex 800 PLC control system with WebUI, providing ease of operation, a full operating cost overview and maintenance monitoring.

Travis Wells, JD, MBA, has been appointed as GOTS Protection Officer North America. In this newly created position, he will be identifying and advising companies that are making unsubstantiated claims regarding GOTS signage.

An increasing number of companies are eager to use GOTS certified materials and want to make claims regarding GOTS content on their finished products. However, the correct use of the trademarked logo is strictly regulated in CUGS 3.1. – The conditions for the use of GOTS signs. A GOTS claim on finished products guarantees the consumer that every single step in the textile processing supply chain was certified. As soon as one stage in the supply chain is not certified, a company may not label or mention GOTS on their final product.

As a Sustainable Supply Chain Director, Travis has more than 20 years of experience advising fashion and apparel-related businesses on sustainable sourcing, product development and manufacturing in domestic and global markets. He earned his Bachelor of Arts (B.A.) in International Studies from Vassar College, his Juris Doctorate (J.D.) in Corporate Law from George Washington University Law School and his Master of Business Administration (MBA) in Global Sustainability and Finance from the Gabelli School of Business at Fordham University.  

• Currency-neutral sales up 3%, despite € 600 million drag from external factors*
• Strong top-line momentum in EMEA, North America and Latin America with double-digit
• increase across these regions*
• DTC business growing at double-digit rate in EMEA, North America and Latin America*
• Gross margin at 50.1% as significantly higher full-price sales partly compensate
• negative currency impact and higher supply chain costs*
• Operating margin at 11.7% despite strong double-digit increase in marketing spend*
• Net income from continuing operations reaches € 479 million*
• Inventories down 23% currency-neutral*
• 2021 top- and bottom-line outlook confirmed*

“adidas performed well in an environment characterized by severe challenges on both the supply and demand side,” said adidas CEO Kasper Rorsted. “As a consequence of successful product launches we are experiencing strong top-line momentum in all markets that operate without major disruption. Double-digit growth in our direct-to-consumer businesses in EMEA, North America and Latin America is a testament to the strong consumer demand for our products. At the same time, we are navigating through the current world-wide supply chain constraints. Despite all challenges, we are on track to delivering a successful first year within our new strategic cycle.”
 

*See attached document for more information.

Montalvo, international specialists in web tension control, has promoted Russ Hall to North America Director of Sales & Service.  Mr. Hall’s primary responsibilities are overseeing Montalvo’s North America sales team by building, managing, and maintaining new business strategies. In addition, Mr. Hall will be developing relationships with our existing and new industry partners.

Mr. Hall holds an undergraduate degree in Biomedical Technology and a graduate degree in NGO Leadership & Development. Over the last 30 years, Mr. Hall has held service, sales, and management positions with multiple technology companies. Mr. Hall joined the Montalvo technical and sales team two years ago.