From the Sector

• Smart Workflows for Digital Cutting & Kitting

At JEC World 2022 in Paris, Zünd presents the latest developments in modular cutting solutions for composites. Known for its expertise in digital cutting and workflow integration.
As specialist in digital cutting for composites applications, Zünd demonstrates how data management, digital cutting, and downstream processes such as picking, sorting, and kitting, can be automated intelligently and based on specific needs.

In Industry 4.0 in general and processing composites in particular, an unencumbered flow of data is key to workflow efficiency. With Zünd PreCut Center, the user is well equipped to handle the challenges of demanding manufacturing processes. The software automatically optimizes contours and adjusts cut paths depending on the material and choice of tools. With the integrated nesting function, parts are laid out automatically for optimal material utilization. Considering the high cost of materials, maximum yield is essential for economical digital cutting.

With Pick&Place, Zünd presents a cost-effective solution for fully automated picking and kitting of cut parts. The Pick&Place interface enables direct communication with the robot via Zünd Cut Center – ZCC, the Zünd operating software and user interface. Pick&Place makes it possible to completely automate parts removal, kitting and placing. The necessary parameters are derived from the metadata supplied with the job order.

• Strengthening market position in Asia-Pacific

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, announces that it is in the process of acquiring shares in Ngoc Nghia Industry – Service – Trading Joint Stock Company (NN).

NN is a leading PET converter in Vietnam with long-standing relationships with major brands. It has four manufacturing sites in both the North and South of Vietnam. It has a total production capacity of approximately 5.5 billion units of PET preforms, bottles and closures, or equivalent to a PET conversion of 76,000 tons per annum.

Operating with high quality standards, NN is a trusted provider of PET packaging products to major multinational and Vietnamese brands in the beverage and non-beverage industries. Its business operations are run by an experienced management team with strong industry knowledge as well as local market exposure and understanding. These competitive advantages are strategic fits for IVL and would complement the company’s long-term growth after integration. This proposed acquisition will strengthen IVL’s market position in the packaging business in high growth markets of the Asia-Pacific region.

Mr. D K Agarwal, CEO of Combined PET, IOD and Fibers Business at Indorama Ventures, said, “This investment opportunity is in line with IVL’s business strategy of expanding our footprint in rising economies like Vietnam. The country is positioned to be the ASEAN production hub for the Asia-Pacific region. Moreover, Vietnam’s PET packaging market is expected to grow continuously due to strong growth in consumption and improving living standards. The proposed acquisition would foster sustainable growth in our largest business segment, Combined PET, which has been growing constantly to serve increasing demands globally.”

The acquisition process is required to follow the Law on Securities, its guiding decrees and circulars as required by the State Securities Commission of Vietnam and regulations of the Hanoi Stock Exchange. Through its affiliate, Indorama Netherlands B.V., IVL would be required to do the tender offer of all of NN’s shares. The transaction is expected to be completed by the first half of 2022.

• More than 30 leading pioneers of the chemical and material sector welcome the latest political papers from Brussels, Berlin and Düsseldorf

The political situation for renewable carbon from biomass, CO2 and recycling for the defossilisation of the chemical and materials industry has begun to shift fundamentally in Europe. For the first time, important policy papers from Brussels and Germany take into consideration that the term decarbonisation alone is not sufficient, and that there are important industrial sectors with a permanent and even growing carbon demand. Finally, the need for a sustainable coverage of this carbon demand and the realisation of sustainable carbon cycles have been identified on the political stage. They are elemental to the realisation of a sustainable chemical and derived materials industry.

The goal is to create sustainable carbon cycles. This requires comprehensive carbon management of renewable sources, which includes carbon from biomass, carbon from Carbon Capture and Utilisation (CCU) – the industrial use of CO2 as an integral part – as well as mechanical and chemical recycling. And only the use of all alternative carbon streams enables a true decoupling of the chemical and materials sector from additional fossil carbon from the ground. Only in this way can the chemical industry stay the backbone of modern society and transform into a sustainable sector that enables the achievement of global climate goals. The Renewable Carbon Initiative’s (RCI) major aim is to support the smart transition from fossil to renewable carbon: utilising carbon from biomass, CO2 and recycling instead of additional fossil carbon from the ground. This is crucial because 72% of the human-made greenhouse gas emissions are directly linked to additional fossil carbon. The RCI supports all renewable carbon sources available, but the political support is fragmented and differs between carbon from biomass, recycling or carbon capture and utilisation (CCU). Especially CCU has so far not been a strategic objective in the Green Deal and Fit-for-55.

This will change fundamentally with the European Commission's communication paper on “Sustainable Carbon Cycles” published on 15 December. The position in the paper represents an essential step forward that shows embedded carbon has reached the political mainstream – supported by recent opinions from members of the European parliament and also, apparently, by the upcoming IPCC assessment report 6. Now, CCU becomes a recognised and credible solution for sustainable carbon cycles and a potentially sustainable option for the chemical and  material industries. Also, in the political discussions in Brussels, the term “defossilation” is appearing more and more often, complementing or replacing the term decarbonisation in those areas where carbon is indispensable. MEP Maria da Graça Carvahlo is among a number of politicians in Brussels who perceive CCU as an important future industry, putting it on the political map and creating momentum for CCU. This includes the integration of CCU into the new Carbon Removal Regime and the Emission Trading System (ETS).

As the new policy documents are fully in line with the strategy of the RCI, the more than 30 member companies of the initiative are highly supportive of this new development and are ready to support policy-maker with data and detailed suggestions for active support and the realisation of sustainable carbon cycles and a sound carbon management. The recent political papers of relevance are highlighted in the following.

Brussels: Communication paper on “Sustainable Carbon Cycles”
On 15 December, the European Commission has published the communication paper “Sustainable Carbon Cycles” . For the first time, the importance of carbon in different industrial sectors is clearly stated. One of the key statements in the paper is the full recognition of CCU for the first time as a solution for the circular economy, which includes CCU-based fuels as well. The communication paper distinguishes between bio-based CO2, fossil CO2 and CO2 from direct air capture when addressing carbon removal and it also announces detailed monitoring of the different CO2 streams. Not only CCU, but also carbon from the bioeconomy is registered as an important pillar for the future. Here, the term carbon farming has been newly introduced, which refers to improved land management practices that result in an increase of carbon sequestration in living biomass, dead organic matter or soils by enhancing carbon capture or reducing the release of carbon. Even though the list of nature-based carbon storage technologies is non-exhaustive in our view, we strongly support the paper’s idea to deem sustainable land and forest management as a basis for the bioeconomy more important than solely considering land use as a carbon sink. Surprisingly, chemical recycling, which is also an alternative carbon source that substitutes additional fossil carbon from the ground (i.e. carbon from crude oil, natural gas or from coal), is completely absent from the communication paper.

Berlin: Coalition paper of the new German Government: “Dare more progress – alliance for freedom, justice and sustainability”
The whole of Europe is waiting to see how the new German government of Social Democrats, Greens and Liberals will shape the German climate policy. The new reform agenda focuses in particular on solar and wind energy as well as especially hydrogen. Solar energy is to be expanded to 200 GW by 2030 and two percent of the country's land is to be designated for onshore wind energy. A hydrogen grid infrastructure is to be created for green hydrogen, which will form the backbone of the energy system of the future – and is also needed for e-fuels and sustainable chemical industry, a clear commitment to CCU. There is a further focus on the topic of circular economy and recycling. A higher recycling quota and a product-specific minimum quota for the use of recyclates and secondary raw materials should be established at European level. In the coalition paper, there is also a clear commitment to chemical recycling to be found. A significant change for the industry is planned to occur in regards to the so-called “plastic tax” of 80 cents per kilogram of non-recycled plastic packaging. This tax has been implemented by the EU, but most countries are not passing on this tax to the manufacturers and distributors, or only to a limited extent. The new German government now plans to fully transfer this tax over to the industry.

Düsseldorf: Carbon can protect the climate – Carbon Management Strategy North Rhine-Westphalia (NRW)
Lastly, the RCI highly welcomes North Rhine-Westphalia (NRW, Germany) as the first region worldwide to adopt a comprehensive carbon management strategy, a foundation for the transformation from using additional fossil carbon from the ground to the utilisation of renewable carbon from biomass, CO2 and recycling. For all three alternative carbon streams, separate detailed strategies are being developed to achieve the defossilisation of the industry. This is all the more remarkable as North Rhine-Westphalia is the federal state with the strongest industry in Germany, in particular the chemical industry. And it is here, of all places, that a first master plan for the conversion of industry from fossil carbon to biomass, CO2 and recycling is implemented. If successful, NRW could become a global leader in sustainable carbon
management and the region could become a blueprint for many industrial regions.

For most textiles, finishing processes are not actually the last stage. Products often need an extra touch of expertise to make them perfectly ready for the customer. At this point in the value chain, that usually means manual tasks – but now there are technical solutions and intelligent systems which can handle complex operations better, while adding extra value and assured quality.
Automation brings reliability and efficiency, ultimately saving costs to produce the right quality every time. Swiss companies are specialized in many of these disciplines, with machinery for fabric inspection and presentation, labelling and tracking, folding and packaging. They have the technology to inspire a new vision at the post-production segment of the textile manufacturing processes. Optimization of workflows, with bottleneck management, is an obvious potential benefit. And it delivers measurable returns on investment. The wider picture with automation will prepare companies for the IoT and Industry 4.0.

New business models
The advantages of automation in mills with high-volume production are obvious: consistent quality, increased efficiency, waste reduction in some cases, as well as significant medium-term cost reductions in every case.
That description focuses on the aims of modern mills in low-cost markets. But producers in Europe and USA could reach out for more. For them, automation could be a game-changer, offering unique new opportunities.
Reshoring is a growing trend now. It shows great potential and is definitely driven by sustainability and changes in consumer mindsets. “We believe that the time is right – the machines and solutions certainly are – to push automation also to the very end of the production line, replacing intensive manual work and take the chance for reshoring. The current situation is kind of a transition time which is expected to last for a couple more years in the textile industry,” says Rueedi. He adds that any investments in these prime markets pay off much faster because of higher labour costs.
Innovation transformed through automation can do much more than simply replacing the nimble fingers of humans. It also enables new business models, guaranteeing prosperous future business, alongside greater job security.

Digital workflow and process control
The Swiss company Maag Brothers is a leading supplier of high-end machines for quality assurance in the final make-up processes, specifically fabric inspection, plating/folding, selvedge printing and packaging. Maag reports on a practical example from a mill in India which recognized the potential of automation.
An analysis at the customer’s mill identified the main goals as modernization of the workflow at quality control and packing processes. Maag’s new system covers tasks from fabric inspection to dispatch, and offers transparent and easily adjustable processes with real-time process control. It’s a digital solution, resulting in a slim organization, paperless, and the basis for further optimization towards Industry 4.0 to exploit its full potential. The customer’s own calculation showed a ROI for the installation at less than three years – along with a reduction in manpower and savings in fabric costs for shade samples.

Perfectly labelled, efficient data...
Smooth processes start with a label. Swiss company Norsel is an expert in grey fabric labelling systems, for piece tracking through all textile processes. High-quality label printing and proper sealing on all kind of fabrics ensure readability and sustainability after dyehouse processes such as mercerizing, high temperature dyeing and even hot calendering. No roll mix-up during dyeing, easy sorting of fabric rolls and rapid delivery make processes in the mill much more efficient. Using RFID codes lifts fabric inventory control to the highest level, with all information readily transferred to a database and integrated through any ERP software.
It’s a foolproof way to avoid the risk of human errors from hand-written notes on grey fabrics and article sheets, by opting for reliable, secure and forward-looking solutions.

Sample collections – the silent salesmen
First impressions count, so fabric producers like to present their collection perfectly – and that’s only possible with automated solutions. Swiss producer Polytex continuously refines its solutions, underlining its leading position in sample making equipment. Fully-automatic high-performance sample production lines are designed to satisfy the highest expectations. Fully-automatic lines or robotic machines set the standards for quality and performance. Even the most demanding clients can achieve their goals with impeccable samples, quickly and efficiently made, for flawless collections that are sure to impress.

Automation drives buying
First impressions are also the trigger for quick purchase decisions. The proof is there on every store shelf. Customers of Espritech are also well aware of it. They trust this Swiss producer of automated folding machinery to provide the final touch of class to home textiles and apparel products before they go on display. The folding systems are generally large mechatronic devices, loaded with latest technologies in mechanics, electronics, sensors and pneumatics. “Textile producers are amazed how folding machines solve the tricky task of reliably handling chaotically behaving materials. They see process optimization potential and the impact. We observe a slow but continuous change of mindset installing sophisticated technology even in the last steps of textile finishing,” says Philipp Rueedi, CFO at Espritech.

Sateri’s Lyocell facility in Rizhao, Shandong Province, has been awarded the Sustainable Textile Production (STeP) certification for responsible production, making it the first Lyocell producer in China to be certified to the rigorous standards set by independent Swiss-based certification organisation OEKO-TEX®. Sateri’s Lyocell facility has also obtained the highest ranking of level three in the certification assessment scoring for exemplary implementation of best manufacturing practices.

Together with its earlier achievement of the STANDARD 100 by OEKO-TEX® certification that confirms its Lyocell fibre is free from any harmful substances and complies with European standards, Sateri’s lyocell products are qualified to carry the MADE IN GREEN by OEKO-TEX® product label. This label not only attests to Sateri’s Lyocell fibre as safe and manufactured in environmentally-friendly, socially responsible and safe facility, but also the Group’s commitment to higher levels of transparency and accountability through the product traceability feature of the label.

The STeP by OEKO-TEX® certification comprises three levels describing the extent to which a company has achieved sustainable production and working conditions of factories in the textile industry. The areas of assessment include chemicals management, environmental performance, environmental management, social responsibility, quality management, as well as occupational health and safety.

Sateri’s Lyocell fiber factory in Rizhao commenced operation in May 2020, with an annual output of 20,000 tonnes of Lyocell fiber. The same site houses a 5,000 tonne Lyocell pilot production line dedicated for the development of Lyocell application technology. In March 2021, the Group announced plans to expand its Lyocell annual production capacity in China up to 500,000 tonnes by 2025.

A natural and biodegradable fibre, Sateri’s Lyocell is made from wood pulp sourced from certified and sustainable plantations. It is manufactured using closed-loop technology, requiring minimal chemical input during the production process, and utilising an organic solvent that can be almost fully (99.7%) recovered and recycled.

Sateri’s Lyocell is used to produce high quality textiles and personal hygiene materials. Using a unique high technology manufacturing process, it has outstanding dry and wet strength, high uniformity and consistency, and superior quality. It blends well with various textile fibres to create different fabric styles and characteristics for wide downstream applications.

For its FW 22/23 collection, ECOSENSOR™ by Asahi Kasei Advance presents a high-tech fabric collection, which implements a new generation of values, with the aim of keeping nature, body and mind in harmony.

ECOSENSOR™’s new references meet the needs of the contemporary consumer, such as durability, wellbeing and performance. Furthermore, they are made with certified ingredients, through a completely traceable and transparent production process and supply chain. Being capable of combining active climate control, exquisite touch, lightness and comfort with sustainable values, ECOSENSOR™’ stands out as a unique eco-high-tech performance proposition in its market.

The whole collection is focused on advanced technology and environmental responsibility. Thanks to ECOSENSOR™ by Asahi Kasei Advance’s unique value-chain based on recycling technology, most part of its yarns are certified by the renowned GRS (Global Recycled Standard). Even the dyeing and finishing phases - key moments for  performance wear - have been certified by international labels such as bluesign® and OEKO-TEX® Standard 100.

Among the compositions of the fabrics, dominant are the recycled polyamide (58%) and polyester (39%) yarns. The stretch component present in 22 articles of the collection is based on ROICA™ EF by Asahi Kasei - the sustainable recycled stretch yarn made from pre-consumer waste. In addition, 8 fabrics of the FW22/23 collection are made of Bemberg™ by Asahi Kasei - the high-tech yarn born from the transformation of cotton linters through a fully circular, transparent and traceable process with an amazing precious hand, optimal moisture management characteristics,  whose end of life guarantees its biodegradability and it also carries GRS certification.

Featuring a total of 36 fabrics, the collection is composed of:

• 7 outerwear fabric
• 22 sportswear fabrics
• 7 innerwear fabrics

The acoustic performance of components for the vehicle interior such as inner dashes or carpets depends on the noise-reducing quality as well as the geometrical adaptability and fill power of their material. With Flexi-Loft, Autoneum offers a new felt-based technology that thanks to a unique blend of recycled cotton and functional fibers reduces product weight and allows for accurate adaptation even to complex shapes. The textile material therefore provides a versatile and more sustainable alternative to foam.

In order to achieve high acoustic performance at minimum weight and maximum sustainability, Autoneum is continuously advancing its textile product portfolio. When it comes to components for the vehicle interior, for example, standard thermoplastic felts excel through their acoustic absorption, robustness and environmental friendliness. However, since felt-based materials are generally less voluminous and moldable as foam components, they require more weight to thoroughly fill the areas of varying thickness between the surface of the component and the vehicle’s body-in-white. In contrast, Autoneum’s Flexi-Loft technology is significantly lighter, more flexible and more adaptable than standard felts. In addition, the fiber-based material is versatile and clearly outperforms current foam products in terms of sustainability.

Thanks to its blend of recycled cotton and polyester fibers, Flexi-Loft substantially reduces component weight while improving geometrical adaptability and acoustic performance, especially in areas of low thickness. Thanks to the specific properties of the fibers, Flexi-Loft enables a precise adaptation to a wide variety of vehicle bodies, thereby improving the noise-insulating qualities of the respective product. Even at low weight, Flexi-Loft covers a wide range of material thicknesses, thus proving to be an ideal decoupling material for interior components with complex shapes such as inner dashes and automotive carpets. As a lightweight, flexible and sustainable alternative to both standard felts and foam, Flexi-Loft distinguishes itself by its versatile application in combination with existing Autoneum technologies such as Hybrid-Acoustics and Prime-Light. Moreover, the material helps to reduce odor and dust inside the vehicle.

Flexi-Loft consists of at least 50% recycled cotton fibers, and cut-offs generated during the manufacturing process are reclaimed, processed and then reused in the production of new felt blanks.

Autoneum is already using Flexi-Loft worldwide as an insulator for various carpets, inner dashes and other acoustic components based on its Prime-Light technology. The application of the material as an effective decoupler in inner dashes made of Hybrid-Acoustics will be launched on the European market in 2023.

The Swedish textile recycling company, Renewcell, has chosen AFRY as partner in order to digitalize production operations in their plants in Kristinehamn and Sundsvall, Sweden. AFRY will deliver an Industrial IT solution, containing AFRY MES and AFRY ProTAK, to manage production information and secure both high quality, as well as high overall efficiency in the production. The delivered solution will serve as a hub for all production process information.

Renewcell is a multi-award-winning textile recycling company based in Sweden. With the technology they have developed, the company has succeeded in recycling and regenerating textile fiber from old clothes to turn it back into fiber pulp. Renewcell has had a production site in Kristinehamn since 2017 and is now scaling up the production in their new production plant in Sundsvall. The new plant is expected to be operating during the first half of 2022. “Modern production and logistics require a high level of digitalization to meet the demands for, e.g., traceability, and therefore the systems and experience from AFRY will be very important to us,” says Ylva Stjernquist, Supply Chain Manager and Project Leader at Renewcell.

AFRY has a long experience in Industrial IT and will now deliver the two leading, closely integrated digital solutions for production management to Renewcell. The AFRY MES (Manufacturing Execution System) is a highly advanced digital information system that connects, monitors, and controls the complex production systems and data flows of the production processes. AFRY ProTAK is a digital tool that measures the effectiveness of a plant’s production machine performance. The system gathers information from different sources (e.g., DCS, MES, Maintenance) and combines that with the operators’ notes to calculate or present Overall Equipment Efficiency (OEE), which will lead to optimized production and increased profitability.

Together these tools will improve traceability and secure a high production efficiency by integrating data from all production systems and equipment. “We are focusing on improving sustainability within process industries, and it is therefore an honor to be part of Renewcell’s textile recycling through a full-scale digitalized solution. Our modern and competitive digital solution will definitely bring added value to these types of processes,” says David Andersson, Business Segment Manager Digitalization, AFRY Process Industries Sweden.  

AFRY MES and AFRY ProTAK will be installed to both Kristinehamn and Sundsvall plants. The installation is planned to be up and running during Q2 2022.

The Beitlich Family Foundation, owner of the CHT Group, has appointed Elke Katz as an additional member of the Foundation's Board of Directors, which includes the function of Supervisory Board, on 1 September 2021. Elke Katz is currently CEO of ratioform Verpackungen GmbH, a company of the Haniel Group, based in Munich.

She has extensive, cross-industry experience in strategic and operational corporate management at companies such as BMW and Telefonica. She holds a degree in business engineering and has extensive know-how in customer experience management, digital business and business development.

Johan de Ruiter, Chairman of the Board of the Beitlich Family Foundation: "We aligned ourselves with the UN's 17 Sustainable Development Goals several years ago and defined sustainability, digitalisation and diversity as important strategic components for the CHT Group. We are therefore delighted to have gained a proven digitisation expert for our board. We are certain that Elke Katz will give us further impetus on this path so that we continue to be a leading, modern and innovative company.”

The Beitlich Family Foundation consists of 5 members, in addition to Elke Katz and Johan de Ruiter, Prof. Dr.-Ing. Götz Gresser (Vice Chairman), Dr. Antje von Dewitz and Prof. Dr. Klaus Müller.

Autoneum presented an insight into current market trends and the Company's strategic focus in the areas of electromobility and sustainability, as well as an outlook on its medium-term financial targets at the media and financial analysts brunch.

In addition to current market expectations and trends in the automotive industry, the focus will be on Autoneum’s activities and growth potential in the areas of e-mobility and sustainability. Matthias Holzammer, CEO, and other experts of the Company will present Autoneum's latest developments with regard to New Mobility and sustainable product innovations as well as their strategic classification. CFO Bernhard Wiehl will also present Autoneum's new medium-term financial targets.

Based on the further expansion of the portfolio with sustainable products and new applications for e-vehicles as well as the increase in market share with existing and new customers, particularly in Asia, the Company expects a profitable revenue growth at market level in the medium term. Based on the expected revenue development, further progress in the turnaround of North America as well as the consistently practiced operational excellence in all business areas, Autoneum targets an EBITDA margin of 13% in the medium term. Accordingly, a solid free cash flow in the amount of 6% of revenue and a further increase in the equity ratio to over 35% are targeted. The Company still intends to pay a dividend to shareholders of at least 30% of the profit attributable to Autoneum shareholders.