From the Sector

Over the past 14 days, the wholesale cost of natural gas in Germany has risen by more than 50%. This increase presents an extraordinary challenge for industry, and there is no sign of support or intervention from the Government. Indeed, recent statements are destined to provoke a worsening of the situation.

Kelheim Fibres is entirely dependent on natural gas for the generation of electrical energy and steam and has no viable short-term alternatives. In addition, the raw materials used by the company often consume high levels of energy in their production and are also increasing significantly in cost. These increases in cost jeopardise the future of the business if they cannot be passed on though the supply chain.

Kelheim Fibres is calling on the Government of Germany to take immediate steps to mitigate the impact of the cost increases for natural gas and is committed to work to implement alternative sources of energy in the medium term.

In parallel, the disruption to global logistic networks that has been seen throughout 2021 is now expected to continue throughout 2022. Massive increases in shipping rates – in some cases in excess of 80% – are being imposed without notice and with no opportunity for negotiation. These costs must also be passed on though the supply chain if businesses are to remain viable.

To address these issues, Kelheim Fibres is implementing the following measures with immediate effect:

• The increased cost of energy and freight will be passed on in prices to customers at the soonest opportunity;
• If necessary, changes or adjustments to existing agreements will be negotiated to reflect the increased cost levels;
• If the necessary increase in fibre prices cannot be secured, cuts to production will be implemented with the objective of minimising losses until the cost increases can be mitigated.

As the drivers for the increases in natural gas prices appear to be temporary in nature, we will maintain any price adjustments under review and pass on any relief to customers.

Craig Barker, CEO of Kelheim Fibres, describes the current situation as critical. “The cost increases we are facing are unprecedented and call for swift and decisive action. We are determined to take the necessary steps to preserve the future of our business and provide security of supply for our customers. At the same time, we are relying on the support of our customers to help us conquer the challenges our business is facing.”

Renewcell and Kelheim Fibres Gmbh have signed a Letter of Intent for a long term commercial collaboration to add the crucial missing link for a circular economy for textiles in Europe. Together, the two technology leaders will collaborate on developing com mercial scale production of superior quality viscose fibers from up to 10 000 tonnes of Renewcell’s 100% textile recycled material Circulose® annually. The collaboration paves the way toward a fully European closed loop in which textile waste is collected, recycled and regenerated into new Circulose® fibers for people that want to reduce their fashion footprint significantly.

"European fashion consumption has great impact on climate and the environment globally. It also contributes to tremendous amounts of waste going into landfill and incinerators either in Europe or abroad after export. We will now work with Kelheim to prevent waste and reduce the need for virgin resources, while also enabling a fully regional supply of low impact circular fibers for text iles” comments Patrik Lundström, CEO of Renewcell. “We are thrilled for the opportunity to work closely with a partner like Kelheim, who is at the leading edge of innovation and sustainability in this industry” he adds.

Craig Barker, CEO at Kelheim Fibres adds: "We see an excellent fit between our two companies, not only on the technical side with Renewcell we have found a highly professional partner who shares our vision for future forward technologies that enable full circularity in the textile chain. Finding the answers to the challenges of our times is what drives us every day. Our recycled cellulose fibre solution made of Renewcell’s Circulose® and manufactured using environmentally sound processes at our Kelheim plant is an answer to the fashi on industries need for sustainable, resource and waste reducing solutions, and a more regional and reliable supply chain."

• International Conference on Cellulose Fibres 2022, 2-3 February in Cologne, Germany and online
• Call for Innovations
• Six nominees will get the chance to present their unique products

The footsteps are big: in 2021, Stora Enso from Sweden won the innovation award, granted on the first day of the “International Conference on Cellulose Fibres”. Their new cellulose foam for packaging fully convinced the audience. Second place was taken by Kelheim Fibres (Germany) with their high-quality hygiene products made of cellulose ahead of third place occupant Metsä Spring from Finland that presented a new cellulose fibre production process.

nova-Institute has opened the Call for Innovations for the “Cellulose Fibre Innovation of the Year 2022” award until 15 November 2021. All producers, inventors and pioneers along the entire value chain from feedstock to final product are invited to enter the competition. Developments of new technologies and applications are welcome. An independent expert jury will select a total of six new materials and products from all entries for the award. The innovators get a free 2-day ticket for the conference and the unique opportunity to present and market their product or technology to a huge professional audience. After short presentations of the six candidates at the conference, the three winners will be elected by the participants of the conference and honored with the innovation award at a festive gala dinner.

Following the conference, nova-Institute issues an international press release to announce the winners.

Call for Innovations
More information about the innovation award and the application can be found at www.cellulose-fibres.eu/award-application
Deadline for submission: 15 November 2021

Kelheim Fibres GmbH is announcing that with effect from 01. October 2021, or as contracts and agreements allow, prices for its range of viscose fibres will be increased by €0,20/kg. In addition, freight cost adjustments will be applied on an individual customer basis. In cases where energy cost adjustments are not included in contracts and agreements, a temporary energy surcharge will be applied.

“The measures we are taking are absolutely necessary to ensure that Kelheim Fibres remains in a position to supply fibres with the levels of quality and service expected by our customers,” says Matthew North, Commercial Director of Kelheim Fibres.

The year 2021 has brought extraordinary challenges for society and for industry. Alongside the Covid-19 pandemic, recovering demand, disruption in the global freight systems and dramatically increased energy costs are driving significant cost increases for raw materials and negatively influencing supply chains. Prices for energy and freight currently lie well outside their historical ranges.

Es sei der Kelheim Fibres GmbH gelungen, die Auswirkungen der Pandemie auf die Faserproduktion zu begrenzen. Aber als Unternehmen mit eigener Kraft-Wärme-Kopplungsanlage und einem hohen Exportanteil in Staaten außerhalb Europas hätten sich diese Kostenfaktoren im zweiten und dritten Quartal 2021 stark negativ auf die Margen ausgewirkt. Da die Energiekosten auf einem beispiellos hohen Niveau verharrten und im vierten Quartal möglicherweise weiter ansteigen werden, keine Entlastung bei den hohen Frachtkosten absehbar sei und auch die Rohstoffkosten auf hohem Niveau blieben, müsse das Unternehmen Maßnahmen ergreifen, um eine weitere Margenerosion zu verhindern.

Kelheim Fibres GmbH had succeeded in limiting the impact of the pandemic on fibre production. However, as a company operating its own cogeneration energy plant and with a high level of export business outside Europe, these cost factors have had a severe negative impact on margins during the second and third quarters of 2021. With energy costs set to remain at unprecedentedly high levels and potentially increase further in the fourth quarter, no relief to the high level of freight costs foreseeable, and raw material costs also remaining at a high level, the company needs to take steps to prevent further margin erosion.

Kelheim Fibres’ Business Managers will be in contact with individual customers during September with further information.

• Circular economy at Kelheim Fibres: Examples of innovation from raw material, product design and all the way to “end of life”

Kelheim Fibres, the world's first viscose fibre manufacturer with an EMAS-certified environmental management system, is continuously working on optimising its special fibres. These can be functionalised as needed - in many cases to save further processing steps (such as dyeing or coating) and thus energy, water and chemicals - and are completely biodegradable at the end of their product life in a short time (according to OECD Test 301 B).

Currently, the specialists in Kelheim are working on the development of alternative raw materials for the production of viscose fibres, such as recycled cellulose as well as other cellulose-containing starting materials. One approach to closing the product cycle in the textile sector is the use of pulp produced from recycled post-consumer waste materials.

In production, Kelheim Fibres focuses on resource conservation by minimising emissions and waste through closed-loop recovery systems, as well as through highly efficient energy generation and the corresponding operation of the plants.

Dr. Roland Scholz, Project Manager Fibre and Application Development at Kelheim Fibres, will present details of this on Wednesday, 15 September, at 5.50 p.m., in Hall B of the 60th Dornbirn GFC WEBINAR WEEK.

Translated with www.DeepL.com/Translator (free version)

The viscose speciality fibre manufacturer Kelheim Fibres has joined the ZDHC programme "Roadmap to Zero".

The non-profit organisation with more than 160 contributors worldwide has set itself the goal of completely eliminating harmful substances from the textile value chain. The ZDHC guidelines provide producers of Man-made Cellulosic Fibres (MMCF) with uniform criteria for measuring indicators such as wastewater, air emissions and other process-related parameters. The measured data is independently monitored and published.

Kelheim Fibres sees its ZDHC contributorship as another building block on the road to even more sustainable fibre production:
"We want to develop our industry with our know-how towards a greener future. Sustainability is an integral part of our corporate philosophy and strategy. We fully support ZDHC's vision of a widespread implementation of sustainably chemistry, driving innovations and best practices in textile, apparel and footwear industries to protect consumers workers and the environment," says Craig Barker, CEO at Kelheim Fibres.

"ZDHC provides us with access to a range of best practices in chemical management and gives us the opportunity to network and learn from each other with like-minded industry partners. ZDHC's collaborative approach will accelerate the shift to a more responsible industry and we want to contribute to that."

• The Bavarian Kelheim Fibres GmbH has become the first viscose fibre manufacturer worldwide to receive EMAS certification.

“Our aspiration is that our fibres offer an eco-friendly and high-performance alternative to synthetic materials”, says Craig Barker, CEO at Kelheim Fibres. “So, it’s not enough that our fibres are made from renewable resources and that they are fully biodegradable – our environmental awareness must include the whole production process and all that goes with it if we want to safeguard our credibility.

The EMAS certification proves that we take this responsibility seriously.” EMAS stands for “Eco Management and Audit Scheme” and is a standardised eco management certification system developed by the European Union. EMAS includes the globally applicable ISO 14001 standard and goes beyond its requirements by demanding more transparency and continuous improvement: Certified companies report in their annual EMAS Environmental Statement on their environmental goals and their progress in meeting them.

During the audit preceding the certification, the independent environmental auditor thoroughly investigated all departments of the company, from the production itself to the company canteen. He found no non-conformances and was impressed by the competence and the high sense of responsibility among Kelheim’s employees. In contrast to the EU Ecolabel and similar certifications, EMAS does not apply to individual products or services, but certifies the complete environmental performance of the company. This benefits not only the protection of the environment and climate, but also the improvement of a company’s ecoefficiency.

Craig Barker: “An efficient environmental management system ensures that economy and ecology go hand in hand – that gives us a decisive competitive edge.”

The Bavarian viscose speciality fibres manufacturer Kelheim Fibres has partnered with the European Technology Platform for the Future of Textiles and Clothing (ETP) in two strategic programs: “Bio- Based Fibres” and “Circular Economy”.

Against the backdrop of the increasingly important sustainability debate, fundamental changes inside the textile supply chain are taking place. The two three-year ETP programmes “Bio-Based Fibres” and “Circular Economy” are a clear response to this. The goal is to bring key players from industry and science together to develop a long-term strategy to actively shape the sustainable realignment of the European textile industry.

“We have been manufacturing bio-based fibres for almost 85 years – these fibres are made from the renewable material wood and they are fully biodegradable at the end of their product lifecycle. As an alternative to crude-oil based materials, these fibres are becoming increasingly popular in various applications. Part of the reason for this is the fact that we can functionalize our speciality fibres during the production process and give them the exact properties that are required for different end uses. In terms of performance, they can keep up with synthetic materials”, explains Dr. Marina Crnoja-Cosic, head of New Business Development at Kelheim Fibres.

But Kelheim’s sustainability criteria also include the full life cycle of their products: When a textile, after its use, can become the raw material for new fibres and new products, for Crnoja-Cosic that is a huge advantage in terms of sustainability. “We want the best possible result – bio-based fibres AND circular economy are the way to get there.”

Kelheim Fibres ist unter den Finalisten für den Sustainability Heroes Award in der Kategorie Nachhaltige Innovation. Der Preis wird von der DQS (Deutsche Gesellschaft für Nachhaltigkeit) und der DGQ (Deutsche Gesellschaft für Qualität) an Vorreiter im Bereich Nachhaltigkeit vergeben und soll aktives Engagement weiter anspornen.

Der Viskosespezialfaserhersteller bewirbt sich um den Award mit ihren innovativen Fasern auf Pflanzenbasis, die einen erheblichen Beitrag für eine plastikfreie Zukunft im Bereich der absorbierenden Hygieneprodukte (z.B. Menstruations- oder Inkontinenzprodukte) leisten können.

Durch den Produktionsprozess können Viskosefasern – im Gegensatz zu anderen pflanzenbasierten Fasern – gezielt modifiziert und funktionalisiert werden. So können sie exakt auf das Anforderungsprofil der einzelnen Bestandteile des Hygieneproduktes abgestimmt werden (von besonders saugfähig bis wasserabweisend) und reichen damit an die Leistungswerte von synthetischen Fasern heran, die heute noch mehrheitlich in diesen Produkten für den Einmalgebrauch zu finden sind.

Während sich umweltbewusste Anwender(innen) heute oft zwischen einem sicheren Gefühl und einem guten Gewissen entscheiden müssen, tragen die Bayerischen Faserexperten perspektivisch dazu bei, dass immer mehr Produkte beidem gerecht werden: Kelheim Fibres verbindet nachhaltig gefertigte und vollständig biologisch abbaubare Fasern mit der technischen Performance von synthetischen Fasern. Ziel ist es, den Einsatz von rohölbasiertem Plastik in Wegwerfprodukten und seinen negativen Einfluss auf die Umwelt zu reduzieren.

Today, environmental not-for-profit organization Canopy, third-party auditor NEPCon, and Kelheim Fibres released the results of Kelheim’s CanopyStyle Audit. The company’s current supply chain is confirmed as low risk of sourcing wood from Ancient and Endangered Forests or other controversial sources.

Key findings of the audit include:

• The company is at low risk of sourcing from Ancient and Endangered Forests;
• The company has a limited fibre basket and uses a significant proportion of FSC-certified fibres in its viscose products; and
• The company has begun supporting forest conservation solutions in key areas of Ancient and Endangered Forests.

In the spirit of continuous improvement, Canopy recommends that the company increase the proportion of FSC-certified fibre, and make efforts to source 100% FSC, as well as continue to invest in research and development of low-impact alternative fibres, with the goal of launching a fibre line that contain these products.

This audit, which reflects a snapshot in time, is to be conducted annually to ensure that the company continues to meet the expectations of the CanopyStyle initiative. The audit findings contribute to Hot Button Issue Report.

The public report from Kelheim Fibre’s audit evaluations is available for download here: www.kelheim-fibres.com/en/sustainability/certificates/