From the Sector

The Teijin Group companies Teijin Carbon America, Renegade Materials and Teijin Aramid will participate in CAMX. the largest, most comprehensive composites and advanced materials event in North America, in San Diego, USA. At the TEIJIN booth, visitors can explore innovative composite solutions and learn about the comprehensive technical support and provided services.

Teijin's diverse network of materials companies excels across various fields, ranging from high-performance carbon and aramid fibers to cutting-edge industrial textiles and revolutionary, cost-effective prepreg composite solutions. The shared commitment to quality, innovation, and environmental responsibility unites Teijin in their mission to deliver eco-friendly solutions across multiple industries and applications, including pressure vessels, aerospace, and both defense and commercial aircraft construction.

Teijin’s dedication to acquiring appropriate certifications for sustainable production and product development underscores the high level of commitment to lead in this field. In the past years, Teijin has continuously striven to minimize their carbon footprint and global impact, while also supporting customers on their own sustainability journeys. This year, Teijin Aramid achieved the EcoVadis Gold Medal recognition, placing the company in the top 5% of all companies across all industries globally and in the top 3% of all man-made fiber manufacturers worldwide.

Teijin Carbon has been awarded the ISCC Plus certification for its production in Germany and Japan and is on track to receive the same certification in the U.S. in the coming months. This accreditation allows the Teijin Carbon Group to prove to its customers sustainable products that contribute to a circular economy. Teijin Carbon is diligently working toward establishing new sustainability standards, promoting ecological innovations, and fostering partnerships for a more sustainable world.

Teijin is looking forward to engaging with customers and partners at CAMX 2024 in San Diego to discuss innovative ideas for the circular economy and recycling processes.

Teijin Carbon is one of the world's leading manufacturers of Tenax™ carbon fibers and carbon fiber-based materials, with production sites in the US, Germany, Japan and Vietnam. Teijin Carbon develops solutions for the aerospace, automotive, energy, electronics and sporting goods industries using high-performance technologies in an international environment. They work closely with their partners to create a fully circular value chain. The goal to make Teijin’s products net CO₂-free by 2050 aligns with the commitment to global society to find solutions and take action to combat it.

As a manufacturer of intermediate materials in the US, Renegade Materials is known for its product expertise and commitment to customer satisfaction. Renegade Materials distinguishes itself by merging cutting-edge materials science with advanced prepreg manufacturing and testing equipment, all meticulously controlled by rigorous quality management systems. Renegade is steadfast in their commitment to the development and largescale production of advanced, multi-functional materials that offer engineered solutions to the current composite design, usage and affordability initiatives in the aerospace industry.

Teijin Aramid is a global leader in high-performance aramid fiber, a subsidiary of the global Teijin Group. Specializing in high-performance aramid fibers, their materials are used in automotive and aerospace industries, ballistic protection and more.

DyStar has published its Integrated Sustainability Report for FY2023/24. For the past 14 years, DyStar has formally reported on its sustainability performance in accordance with the Global Reporting Initiative (GRI) Standards. This report also adopts the Integrated Reporting <IR> framework, which outlines the company's environmental, social, and governance (ESG) practices through the lens of six major capitals.

DyStar has demonstrated the effectiveness of its strategy in the latest report. For instance, their efforts in implementing energy-efficient initiatives across its operations have started to yield credible results. DyStar’s Scope 1 and Scope 2 emissions totaled 42,084 tCO2e, representing a 67% decrease from 2011’s baseline year and a 26% decrease compared to FY2022. Scope 3 accounted for 8.2% of DyStar’s total emissions profile, with over 80% primarily stemming from the transportation of goods and services.

In terms of energy management, the Group has increased its use of renewable energy by 20%. Additionally, several energy conservation initiatives have been implemented as part of a concerted effort to reduce energy consumption globally.

Operationally, there have been several improvements to procedures aimed at boosting water efficiency and achieving cost savings at all manufacturing sites.

Wastewater discharge was reduced by 37%, improving the intensity level to 8.04 m³ per ton of production compared to 8.71 m³ per ton the previous year. This improvement is also partially due to some of their sites operating under a “Zero Liquid Discharge Scheme” mandated by local authorities.

Key highlights of FY2023 include:

• Participated at ITMA Milan, where DyStar introduced a new range of bio-based DyStar products, dyes and auxiliaries containing renewable feedstock, as well as the Eco-Advanced Indigo Dyeing process.
• Recognition by the Institute of Public & Environmental Affairs (IPE), achieving second place on IPE’s Green Supply Chain Corporate Information Transparency Index (CITI).
• Celebrating diversity and inclusivity through global campaigns.

Dr. Alfred J. Beerli, the new CEO of OEKO-TEX®, started in June. Dr Beerli brings experience in strategic management consulting and operational, IT and knowledge management.

The Swiss native has served as CEO of information and communications technology consultancy uniQconsulting ag and workwear provider workfashion.com ag. From 2012 to 2016 he was a Board Member of amfori BSCI, a leading initiative to improve working conditions in global supply chains.

In his role as CEO of OEKO-TEX®, Dr Beerli is further developing the OEKO-TEX® portfolio. Along with the 17 independent research and testing institutes of the OEKO-TEX® Association he is committed to ensuring sustainable and transparent processes in the international textile and leather industry. A focus of his work is dialogue and cooperation with government institutions, initiatives and trade associations, for which he has excellent expertise and an extensive network.

Archroma is bringing its latest “Planet Conscious+” innovations to FEBRATEX 2024 in Brazil with the aim to empower the region’s textile mills and brands to lead the industry shift to sustainability.

SUPER SYSTEMS+ are end-to-end systems that combine fiber-specific processing solutions and intelligent effects. Drawing on the industry’s broadest product portfolio, the SUPER SYSTEMS+ suite encompasses wet processing solutions that deliver measurable environmental impact from sizing to finishing; durable colors and functional effects that add value and longevity to the end product; and cleaner chemistries that eliminate harmful or regulated substances.

Textile industry professionals will be able to explore Archroma’s “PLANET CONSCIOUS+” vision at FEBRATEX 2024 and discover SUPER SYSTEMS+ technologies such as Archroma’s DENIM HALO, a newly launched concept for denim production that is both eco-friendly and simple, aniline-free* DENISOL® PURE INDIGO 30 LIQ pre-reduced indigo, and the patented EarthColors® technology that creates high-performance bio waste-based dyes from non-edible food and agricultural waste. Archroma is also showcasing ULTRATEX® STS-U, a compatible hydrophilic silicone softener for cotton and cotton blended knits with great running stability, Siligen® EH1, a biomass-based silicone softener that has great moisture management and delivers a smooth soft touch, AVITERA® SE GENERATION NEXT for cellulosic fibers and blends that enables significant resource savings, chlorine fastness and improved cost-to-performance ratio for dark and extra-dark shades, and ERIOPON® E3-SAVE all-in-one auxiliary.

Gunold GmbH, a company specialized in embroidery thread, introduces a change in management. With Aileen and Kevin Gunold taking over the management on April 1, 2024, the company is now being run by the fourth generation of the Gunold family. Christoph Gunold, who managed the company for almost three decades, is delighted that his children are continuing the family business.

Kevin Gunold, with a degree in Business Administration and Law, shares his experience from the automotive industry, while Aileen Gunold, who studied International Business Administration and gained extensive experience in corporate and marketing consulting, contributes her expertise in strategic and operational areas such as business development and customer experience management.

The Gunold GmbH, which is preparing to celebrate its 100th anniversary, relies on the pillars of reliability and 24/7 online ordering options. For long-term competitiveness, it is also crucial to make the business models sustainable in terms of environmental and social aspects. Digitization is an important key to securing the future of the company.

Indorama Ventures Public Company Limited (IVL) reported a slight rise in quarterly performance, supported by a gradual recovery in sales volumes and as management executes the company’s IVL 2.0 strategy to optimize its manufacturing model, reduce costs, and enhance competitiveness.

Indorama Ventures’ reported Adjusted EBITDA  of $370 million in 2Q24, a 1% rise QoQ and a decline of 11% YoY. The company’s sales volumes increased 1% YoY due to subdued economic activity, but also signaling the end of a prolonged period of destocking that began in late 2022. Operating rates for the group increased from 74% to 76% in 1H24, although still at lower-than-average levels, signifying the weak global economic conditions. On a proforma basis, considering asset optimization actions, operating rates increase to 81%.

The Indovinya segment posted a robust performance on improved margins and rebounding demand for its high value-add downstream products. The packaging business, newly renamed ‘Indovida’, also performed well due to its leading footprint in emerging markets.

Looking ahead, Indorama Ventures is encouraged by the gradual improvement in the operating environment as customer inventory levels normalize, which is expected to spur further growth in volumes across all segments in 2H24. The company also expects to benefit in 2H24 from its shale gas advantage in the U.S, reflected in ethylene crack margins, positively impacting its integrated MEG business. Continued higher import prices in Western markets will enhance the company’s competitiveness as a leading local operator.

While the polyester industry manages the downcycle, Indorama Ventures’ experienced management team is working hard to deleverage and optimize the business under the company’s IVL 2.0 strategy to emerge stronger and drive enhanced earnings quality in an era of higher interest rates and a substantially changed industry landscape. As flagged at its Capital Markets Day on 6 March this year and reaffirmed in its Mid year strategic update on 24 July, the company is making substantial progress with IVL 2.0. In 2Q24, it recorded an impairment and expense provision of $666 million ($543 million is non cash) under its asset optimization program to improve manufacturing efficiency and reduce fixed costs. The cost benefits will start from 3Q24 and amount to about $170 million in savings in 2025. The company expects that the remaining asset optimizations will not have material impairments.

Management is continuing its intense focus on managing costs and extracting efficiencies, including its Olympus 2.0 program. These efforts achieved $47 million in savings in 1H24 ($29 million in 2Q24). The company is continually optimizing its capital expenditure, with capex supporting investments in sustainability—such as recycling in India—and automation and digital technology, as well as ongoing projects.

A key part of Indorama Ventures’ transformation journey is the implementation of new digital and AI tools to drive operational excellence in key areas, including manufacturing, commercial, procurement, sales, supply chain, and finance excellence. A significant portion of operations now have the new SAP S/4HANA ERP platform as a digital core, while rollouts of other world-leading solutions are ongoing in a phased approach through to 2026.

Segment Performances
The Combined PET (CPET) with Intermediate Chemicals segment posted an Adjusted EBITDA of $234 million in 2Q24, a 6% decline QoQ and a 25% decrease YoY, due to a one-time upside impact from a campaign run of NDC campaign in 1Q24 and as reduced industry spreads weighed on the Integrated PET business. A cracker outage at Lake Charles in the U.S also resulted in a $17-18 million impact to EBITDA. The cracker is gradually up and running in 3Q24.

The Indovinya segment recorded a strong Adjusted EBITDA of $98 million, a 41% gain QoQ and 85% YoY on increased volumes as destocking eased, supported by demand for downstream chemical surfactants amid the U.S crops season.

The Fibers segment recorded Adjusted EBITDA of $39 million, a 2% rise QoQ and a 19% gain YoY amid improved sales strategies and a robust focus on cost management, even as volumes declined, particularly in the Lifestyle business.

Barry-Wehmiller announces a new role that will bring change to the organization. Doug Neal has been appointed Vice President of Continuous Improvement and will lead the efforts to reboot the organization's dedication to operational excellence. Neal brings over three decades of experience in operations and continuous improvement across diverse industries, spanning from healthcare to manufacturing, making him a pivotal addition to the leadership team.

Most recently, Neal worked at Revvity (formerly PerkinElmer), where he held roles such as Senior Director, Global Lean; Senior Director, Planning and Logistics; and Senior Director, Service Operations. He holds a Bachelor of Science in industrial management from Indiana University of Pennsylvania and a Master of Business Administration from Pennsylvania Western University Clarion.

Neal's skill set includes expertise in multisite operations and international business systems, along with extensive experience in manufacturing and transactional process improvement. His appointment marks a strategic move toward enhancing Barry-Wehmiller's global commercial, operational and organizational strategies.

Autoneum significantly increased its revenue consolidated in Swiss francs by CHF 109.8 million to CHF 1 212.3 million compared to the prior-year period, supported by inorganic growth. In a slightly declining market, the Company succeeded in increasing its EBIT margin excluding special effects by 1.3 percentage points to 5.4%. A solid net result of CHF 36.1 million was generated in the first half-year of 2024. Due to the positive margin development, the Company now expects an EBIT margin of 5.0% to 5.5% for the current financial year (previously 4.5% to 5.5%).

In the first half of 2024, automotive industry production volumes were somewhat restrained world-wide and even declined slightly in Europe. While economic conditions in the automotive supply industry have improved to a certain extent since the coronavirus crisis, high vehicle prices in some markets were putting a damper on demand. Only North America and Asia recorded slight growth compared to the same period of the previous year.

Despite the flat market development, Autoneum managed to significantly increase both revenue and profitability before special effects over the prior-year period. This positive development was achieved through the automotive business of traditional German company Borgers, which had been acquired as of April 1, 2023, and thus contributed for the first time to the entire reporting period. At the same time, Autoneum achieved operational improvements worldwide.

Outlook
The current S&P market forecasts assume that global automobile production will decline by 2.0%* in 2024 compared with 2023. Based on the forecast market development and further operational improvements, Autoneum continues to expect total revenue in 2024 of CHF 2.3 billion to 2.5 billion and free cash flow in the high upper double-digit million range. Due to the positive margin develop-ment, the company now expects an EBIT margin of 5.0% to 5.5% (previously 4.5% to 5.5%).

* Source: S&P Global Light Vehicle Production Forecast of July 17, 2024.

Archroma is collaborating with Zydat Inc. to bring the complete Color Atlas by Archroma® color library to the Vivid Color Library Management (CLM) color-matching platform for faster and more accurate inkjet digital printing of fashion and textiles

Archroma’s Color Atlas is the textile industry’s largest library of engineered color standards, with more than 5,760 color references formulated to comply with leading eco-standards and deliver consistent and accurate color reproduction.

With these colors available within Vivid CLM’s online color palette optimization and correction tools, designers can more quickly and easily create and share their color palettes for more accurate inkjet printing. This can reduce the burden of pre-production color proofing and streamline the color management process to help deliver high-quality printed fabric and apparel in a fast and economical way.

Vivid CLM was launched by Zydat in February 2024. It offers a unique and designer-oriented solution to color matching with a proprietary algorithm that translates complex spectral data into a Red-Green-Blue workflow and allows the user to print, scan and check the color, with automatic adjustments to improve accuracy. The solution’s palette storage system allows colorists to share palettes across the ecosystem.

In addition to accessing all of the 5,760 colors in the Archroma Color Atlas portfolio as digital standards within Vivid CLM, users of the software may also choose to refer to Archroma’s physical color library in multiple formats. They can also tap into Archroma’s expertise around the world for technical support with sustainable coloration systems and achievability on alternate substrates.

The Color Atlas by Archroma® is part of the Archroma Color Management+ design and development solution for more sustainable textiles and fashion through fast color selection and creation, consistent and accurate color reproduction, and reduced environmental impact.

Devan Chemicals announces that its BI-OME® NTL MG technology has received the Allergy UK Seal of Approval. This recognition underscores the effectiveness of BI-OME® NTL MG in providing protection against dust mites.

Allergy UK, a leading charity dedicated to supporting people with allergies in the United Kingdom, has granted this accreditation following rigorous independent testing. The BI-OME® NTL MG technology, has been proven to be beneficial for those with allergic sensitivities to house dust mites. This has also been confirmed by an external lab according to French standard NF G 39-011.

BI-OME® NTL MG is a biobased, non-harmful anti-dust mite and antibacterial technology which guarantees optimal freshness and hygiene for all kinds of textiles, such as mattresses, mattress protectors, pillows and quilts.
It features a blend of linseed oil and margosa oil. Derived from flax seeds, linseed oil acts as an antibacterial agent, promoting sustainable freshness, while margosa oil is known for its anti-dust mite properties.

Devan’s customers will now have an opportunity to make use of the Allergy UK logo on their products that incorporate BI-OME® NTL MG technology after signing a license agreement with Allergy UK. This allows manufacturers to provide an added value to consumers seeking products that support allergy management.