From the Sector

adidas announced preliminary results for the third quarter of 2023. In Q3, currency-neutral revenues increased 1% versus the prior year level. In euro terms, the company’s revenues declined 6% to € 5.999 billion (2022: € 6.408 billion). The company’s gross margin improved 0.2 percentage points to 49.3% in Q3 (2022: 49.1%). Operating profit reached € 409 million during the quarter (2022: € 564 million), reflecting an operating margin of 6.8% (2022: 8.8%). While the company’s performance in the quarter was again positively impacted by the sale of parts of its remaining Yeezy inventory, the underlying adidas business also developed better than expected.

Consequently, the company has updated its full year guidance: adidas now expects currency-neutral revenues to decline at a low-single-digit rate in 2023 (previously: decline at a mid-single-digit rate). At the same time, the company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is now anticipated to reach a level of around €100 million in 2023 (previously: around break-even level).

Including the positive impact from the two Yeezy drops in Q2 and Q3, the potential write-off of the remaining Yeezy inventory of now around € 300 million (previously: € 400 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), adidas now expects to report an operating loss of around € 100 million in 2023 (previously: loss of € 450 million).

Hologenix is teaming up with lifestyle brand Duluth Trading Company on two Duluth Trading product collections this fall that are infused with CELLIANT® infrared technology.
 
CELLIANT is an all-natural bioceramic blend of minerals that converts body heat to full-spectrum infrared energy, then reflects it back to the body – increasing local blood circulation and improving cellular oxygenation.
 
Known for their problem-solution products, Duluth Trading launched two collections this fall that feature the CELLIANT technology: Men’s Redwood Recovery Underwear and the recovIR Sleepwear Collection (available in men’s and women’s). With the help of CELLIANT, the collections aim to provide the wearer with faster recovery and more restful sleep.

The Board of Renewcell has appointed Magnus Håkansson as the new acting CEO. Magnus has experience from leading roles in the retail and fashion sector and from leadership in a listed environment. On Monday, October 16, he started his position, replacing Patrik Lundström, who has been the company's CEO since 2019.

Magnus Håkansson has a degree in economics from the Stockholm School of Economics and an MBA from MIT Sloan School of Management. He started his career as a management consultant at McKinsey and has since held several leading roles in global growth companies in the retail sector, as well as the pulp industry, including many years with experience from a listed environment. He most recently came from a role as CEO of MediaMarkt Sweden.

Comment from Michael Berg, Chairman of the Board of Renewcell:
"With a slower adoption in the value chain, and thus lower sales growth, than expected, the Board has decided that a new leadership in the company is necessary. I would like to thank Patrik for his contribution to the development of Renewcell, he has been instrumental in taking the company from the development stage to listing, factory construction and production.

We are very pleased that Magnus Håkansson is now stepping in as acting CEO. His experience from consumer focused companies and his solid leadership skills will add value to the company in its current phase – focusing on sales to brand companies in the clothing retail sector, where we see continued strong interest."

Archroma and Shima Seiki have expanded their partnership to bring the industry’s largest library of colors for cotton and polyester to the SDS®-ONE APEX design, planning and virtual sampling system and APEXFiz® (hereafter SDS®-ONE APEX series) subscription software.

Now offering a total of 5,760 color references, SDS-ONE APEX series has added all 1,440 colors for polyester from The Color Atlas by Archroma® to its color library of 4,320 Color Atlas colors for cotton poplin. The new polyester collection ranges from neutral earth tones to vibrant jewel tones and on-trend fluorescent colors, with shades suitable for sportswear, fashion, home furnishings, automotive textiles and more.

The extended color library in SDS®-ONE APEX series will help designers and manufacturers to visualize and evaluate their design choices on realistic fabric simulations and then put them into production with dyes and finishes that meet their desired sustainability profile. The Shima Seiki system also offers a smooth transition to machine programming for quick and accurate production, reduced waste and accelerated time to market.

Each of the 5,760 Color Atlas color references in the SDS®-ONE APEX series design software is available as a physical color standard that includes precise dyeing recipes and compliance data, as well as access to expert technical support from Archroma around the world.

“Polyester remains the most popular choice across many textile segments where high performance is a must. Users of Shima Seiki’s advanced SDS®-ONE APEX series platform will now be able to select from the industry’s largest library of colors for both cotton and polyester and, more importantly, trust that their choice can be reliably executed,” Chris Hipps, Head of Strategic Business Development, Archroma Color Management, said.

“Our colors are formulated with dyes that comply with international eco-standards and work with Archroma’s groundbreaking coloration systems, like FAST SPORT,” he continued.

The innovative company RUDOLF has been honoured for its outstanding achievements in the field of sustainability and environmental protection and has won the coveted Responsible Care Federal Competition 2023 in the category SME.

The award was presented as part of a competition organised by the German Chemical Industry Association (VCI). Responsible Care is a voluntary initiative of the chemical industry. Its aim is continuous improvement in the areas of environmental protection, health and safety. Chemical companies and associations in more than 50 countries support the initiative. The award-winning project of the innovative company RUDOLF impressed the jury with its pioneering technology, which reduces CO2 emissions by up to 99.9 % compared to conventional cooling systems. „The project uses near-surface geothermal energy for industrial cooling - according to the motto „Efficiency First“ the most efficient way has been chosen!“ - Jury statement
 
TerraCool‘s winning system uses near-surface geothermal energy as the most natural form of cooling. It utilises the constant temperature of around 10°C at a depth of around 10 metres below ground. A specially developed heat exchanger system takes advantage of this natural cooling effect. In the future, it will be used to cool chemical production processes at RUDOLF. The main advantage of this technology is that it is CO₂ neutral. The technology is highly efficient and consumes only 0.1 % of the electricity used by conventional cooling systems.  By using natural resources, the system reduces CO₂ emissions by up to 99.9 % compared to conventional cooling systems, resulting in a very presentable carbon footprint. Another impressive aspect is its high energy efficiency. With just 1 kW of electrical energy, the system generates up to 600 kW of cooling capacity, thanks to the use of a highly energyefficient circulating pump system. Energy is, and will continue to be, a valuable „raw material“ for our industry and one that we need to manage carefully. The system is self-contained and has no contact with groundwater. No environmentally harmful refrigerants or antifreeze are required. With this technology, RUDOLF has made a pioneering contribution to the climate-neutral transformation of the economy, proving that innovative solutions can go hand in hand with environmental protection and sustainability. The Responsible Care award recognises the company‘s commitment to a greener future.

Adient, a leader in automotive seating, has presented its latest innovations at the IAA 2023.
 
The current automotive business landscape is marked by shifting industry dynamics, showcasing a strong desire for mobility, with an emphasis on digitalization, cost, and sustainable products. In line with this, Adient’s overall approach is characterized by responding to the need for more sustainable material use, while taking advantage of the potential that sustainable practices hold for streamlining processes.

Responding to the need for overall cost and complexity reduction in manufacturing, the Pure Essential seat is especially lightweight. Environmentally-conscious practices such as material separation and recycling, and design for disassembly are embedded into the manufacturing process from the development stage. The visionary seat consists of two materials only – green steel and recyclable polyester (PET).
 
New customer needs in terms of premium comfort are met with the Autonomous Elegance seat, specifically developed to fit Advanced Driver Assistance Systems (ADAS). State-of-the-art findings on ergonomics and human body kinematics have been incorporated following extensive occupant research. They are complemented by advanced comfort assets such as noise cancellation and advanced climate functions. “Our seat demonstrators provide solutions to our customers’ main concerns, and we are looking forward to continuing the strategic product dialogue with them, based on our new demonstrators” highlights David Herberg, Vice President Engineering Adient EMEA. Most features of the seat can already be offered for sourcing, such as the metal structure and seat kinematics (adjustment functions and mechanisms).

Considering optimized use of space as well as sustainability aspects, the automotive supplier has also given its Smart Efficiency seat an update: the seat features a slimmer appearance than its predecessor without compromising on comfort. This design does not only help save space, but also paves the way for new mobility concepts based on battery packaging in electric vehicles.
 
The showcased products will be available for demonstration in customer roadshows as of December 2023.

Dyneema^® announced the launch of a next-generation unidirectional (UD) material innovation based on its third-generation fiber at the polymer level: a development poised to enhance the safety and mobility of law enforcement officers and military forces through molecular engineering.

This evolution enables a higher-tenacity fiber – resulting in increased ballistic stopping power when used in the new UD material, Dyneema^® SB301, for protective armor applications. The seismic shift in performance enables body armor manufacturers to design soft armor vests 10–20% lighter than previous protective solutions.

Beyond strength, Dyneema^® SB301 has the advantage of being made from bio-based Dyneema^® fiber, which enables a carbon footprint up to 90% lower than generic high modulus polyethylene (HMPE) fiber.

Now available for use in law enforcement vests for the US market, Dyneema^® SB301 material is manufactured in Greenville, North Carolina, in compliance with the Berry Amendment, with additional markets to follow.

“In every situation, weight is now considered to be the top priority after ballistic stopping power,” said Marcelo van de Kamp, global business director for personal protection at Avient. “That’s because survivability is directly tied to weight savings when speed and agility determine outcomes. We’ve long been known as the ‘world’s strongest fiber™,’ but that won’t stop us from finding new opportunities to get stronger. This new product is the latest demonstration of our commitment to both innovation and protection.”

Carbios, a pioneer in the development and industrialization of biological technologies to reinvent the life cycle of plastic and textiles, inaugurated its textile preparation line at its demonstration plant in Clermont-Ferrand.

To streamline the textile preparation phase, which is currently carried out by hand or on several lines, Carbios has developed a fully integrated and automated line that transforms textile waste from used garments or cutting scraps into raw material suitable for depolymerization with its enzymatic biorecycling process.  

The patented line integrates all preparation stages (shredding and extraction of hard points such as buttons or fasteners), and provides Carbios with a high-performance, scalable development tool. The platform will help validate the biorecycling technology for textiles at demonstration plant scale (by 2024), and provides Carbios with expertise in working with collection and sorting operators to specify the quality of textiles and the preparation steps needed to make them suitable for enzymatic recycling.

Digital fashion outlet Otrium announces the launch of a dedicated garment refurbishment and repair programme for damaged returns following a successful pilot scheme. The initiative is being run in partnership with Bleckmann, experts in supply chain management for fashion and lifestyle brands. Working with Bleckmann’s team of circular fashion experts from The Renewal Workshop, Otrium is taking the next step in its strategic journey to help reduce the number of that might ultimately end up in landfills or destroyed.
 
Most of the returns that Otrium currently receives can be easily restored and put back on sale. However, in rare cases, returned items are damaged. “Preventing waste is an important part of Otrium’s DNA, and thanks to our partnership with Bleckmann and their Renewal Workshop team, we can now repair the majority of damaged returns and put them back into circulation,” said Kevin Carolan, Director of Logistics at Otrium. “We are happy that we can use our position in the fashion supply chain to create lasting change and accelerate towards our mission of reducing the volume of garments that go to landfill.”

Since 2020, Otrium is exploring refurbishment and repairs with their third-party logistics provider Bleckmann. In April 2023, both partners started a three-month pilot at Bleckmann’s facility in Almelo, the Netherlands, to expand the programme with a broader range of repairs and optimised processes through data use. During the pilot, the Renewal Workshop team at Bleckmann refurbished more than 1,000 returned garments, shoes and accessories for Otrium each month.

“With hundreds of high-end labels on the platform, we needed an efficient solution tailored to the needs of a wide range of products – from shoes and coats to bags,” explained Marlot Kiveron, Head of Sustainability at Otrium. “The Renewal Workshop team worked closely with us to develop a streamlined and scalable process that could grow in line with our ambitions, delivering like-new repairs at the speed of e-commerce. Their combination of purpose, professionalism, agility and expertise makes them the ideal partner for this kind of project.”
 
Bleckmann’s integrated data capabilities were also crucial to the success of the partnership. “Data collection and analysis can be vital in demonstrating the commercial viability of sustainability initiatives,” said Tamara Zwart, Director of Renewal at Bleckmann. “Using our advanced stock tracking systems, we determined that 70% of the renewed Otrium stock had been sold within seven weeks. We’re all delighted with the results!”
Furthermore, carbon-tracking software Vaayu calculated that on average, a refurbished return sold on Otrium avoids 2.760kg of carbon emissions and 69g of waste proofing that this programme can have a positive impact on both: the planet and the business.

Having established the business case, the team decided to expand the initiative beyond the pilot phase. “This project is a milestone in our sustainability journey,” concluded Marlot. “It’s a key part of our ongoing commitment to finding more ways to reduce our environmental impact while helping to ensure that more clothes get worn. By the end of 2023, we aim to repair at least 25,000 damaged garments. Together with Bleckmann and their renewal experts, we’re well on our way to proving that this circular business model can be a valuable part of our future growth.”

Fibre Extrusion Technology Ltd (FET) of Leeds, UK is celebrating a year of achievements since its new Fibre Development Centre was first opened. This period has shown a marked acceleration in the number of client technical trials conducted, involving the ever-increasing development of new polymers.

FET designs, develops and manufactures extrusion equipment for a range of high value textile material applications worldwide, offering melt spinning, wet spinning and spunbond/meltblown options. Since its inception in 1997, a major part of FET’s service portfolio has always been to collaborate with industrial and research establishments in testing, evaluating and developing high value materials with diverse, functional properties. FET’s previous Process Development Laboratory presided over the development of about 60 new polymer types in multifilament, monofilament and nonwoven formats.

Since the new Fibre Development Centre came on stream, this process has accelerated and the number of new polymers has now increased to over 70, with considerably enhanced facilities more than doubling capacity and increasing efficiency. Clients frequently spend several days on site participating in development trials and technical sales meetings, so the new Centre is designed to make their stay even more efficient and comfortable.

With more new trials booked for the rest of the year and well into 2024, it is expected that many more new polymers will be developed, with sustainable fibres leading the way.