From the Sector

Rester Oy, which is developing the plant in Paimio, recycles companies' end-of-life textiles, and Lounais-Suomen Jätehuolto Oy (LSJH), which will hire a production area at the same facility, processes households' end-of-life textiles. The plant will process 12,000 tonnes of end-of-life textiles every year, which represents about 10% of Finland’s textile waste.

The textile industry’s end-of-life textile problem is intolerable. Natural resources are increasingly used to manufacture products, but these materials are lost at the end of their life cycle. About 100 million kilograms of textile waste are generated annually in Finland alone. Reusing this material could reduce the textile industry’s carbon footprint and significantly reduce the use of natural resources.

Rester Oy and LSJH will drive the textile sector towards a circular economy and begin processing textile waste as an industrial raw material. The Nordic countries’ first industrial end-of-textile refinement plant will open in Paimio in 2021. The 3,000-square-metre plant is being developed by Rester Oy, which recycles companies' end-of-life textiles and industrial waste materials. LSJH, which processes households’ end-of-life textiles on its production line, will hire part of the plant.

Outi Luukko, Rester Oy’s board chair, says, “The processing plant will begin a new era of textile circular economy in Finland. As industry pioneers, we are launching a system change in Scandinavia. The transition of the textile industry from a linear model to a circular economy is essential, as virgin materials cannot sustain the current structure of the textile industry. And why should it, when there is so much recyclable material available?”

From the perspective of Rester Oy’s main owner, work clothing supplier Touchpoint, the circular economy plant not only represents resource efficiency, but is also necessary from the perspective of the entire life cycle of a responsible work clothing collection.

Luukko adds, “Finding a local solution to a global problem is a huge leap in the right direction and raises Finland's profile as a pioneer of circular economy."

The future plant will be able to process 12,000 tonnes of end-of-life textiles annually, which represents about 10% of Finland’s textile waste. Both production lines produce recycled fibre, which can be used for various industrial applications, including yarn and fabric, insulating materials for construction and shipping industries, acoustic panels, composites, non-woven and filter materials, and other technical textiles, such as geo-textiles.

LSJH is piloting a full-scale refinement plant

LSJH has launched a pilot production line for processing households' end-of-life textiles. Unfortunately, consumers' end-of-life textiles are heterogeneous, making them a challenging raw material for further processing. Before processing, the textiles are sorted by material into various fibre classes using optical identification technology developed by LSJH and its partners. This ensures the quality of the raw material and the resulting fibre products.

Jukka Heikkilä, managing director for Lounais-Suomen Jätehuolto, explains: “On the basis of the experiences gathered from the pilot project, Lounais-Suomen Jätehuolto is preparing a full-scale refinement plant in the Turku region. As soon as 2023, the plant will process Finnish households' end-of-life textiles. The project involves all waste treatment plants owned by Finnish municipalities.”

Paimio has ambitious goals for circular economy companies

Rester’s initiative aims to create a circular economy cluster in Paimio that combines the processing and reuse of end-of-life textile fibres. Paimion Kehitys Oy, which is owned by the City of Paimio and the local association of enterprises, supports the development of circular economy companies in Paimio.

Mika Ingi, managing director for Paimion Kehitys Oy, says, “We want to step out of our traditional municipal role and create significant added value for everyone taking part. That is why we are involved in the development of a new modern service model based on ecosystem thinking. We are piloting the textile cluster, followed in the coming years by clusters focusing on plastic, construction, and energy. The aim of our service is to support and help develop new profitable business by bringing circular economy companies and their potential customers to innovate together."

The foundation stone of the processing plant was laid today (18 August 2020). The processing plant will begin operations in February 2021.

Technologies with an excellent environmental performance throughout the entire product life cycle – that is what “Autoneum Pure.” stands for. In future, components that meet the highest standards in terms of sustainability and eco-friendliness can be identified at a glance under this label. This also includes the innovation “Mono-Liner” for wheelhouse outer liners.

As innovation leader in acoustic and thermal management, Autoneum continuously invests in the development and production of resource-saving components that make cars lighter and thus more climate-friendly. In view of an increasing sustainability awareness and the correspondingly greater information needs on environmentally-friendly vehicle components, the Company has now launched Autoneum Pure. The label determines particularly sustainable technologies, thereby guiding car manufacturers in product selection for future models.

Autoneum Pure is based on a comprehensive set of criteria assessing the sustainability performance of a product in all four phases of its life cycle: material procurement, production, use and end of life. For example, components with a high content of recyclable materials or those that achieve significant weight savings compared to comparable standard components qualify for the “Autoneum Pure.” label. Autoneum already offers various multifunctional technologies that meet the high standards for Autoneum Pure products: Ultra-Silent for underbody systems or battery undercovers, Di-Light for carpet systems, Prime-Light and IFP-R2 for inner dashes and floor insulators as well as Hybrid-Acoustics PET for e-motor encapsulations and engine-mounted parts, which was launched in fall 2019.

With Mono-Liner, the latest innovation for wheelhouse outer liners is also included in the Autoneum Pure portfolio. Among other things, the Mono-Liner-based components convince thanks to their lightweight construction, thereby contributing to lower vehicle weight with correspondingly less fuel consumption and emissions. The excellent life cycle assessment is also based on their particularly resource-saving manufacturing: Production cut offs of the components, which consist to a large extent of recycled PET fibers, can be processed into pellets and completely returned to the manufacturing process as fibers. An SUV and a crossover model from a US vehicle manufacturer already benefit from Mono-Liner wheelhouse outer liners.

Anahid Rickmann, Head of Corporate Communications & Responsibility, explains: “With Autoneum Pure we are the first automotive supplier to establish a sustainability label in the field of acoustic and thermal management. Autoneum Pure is part of the Company's Advance Sustainability  Strategy 2025 and sets industry standards in product communication.”

• essenscia Innovation Award is Belgium’s most prestigious prize for industrial innovation
• UltraBond is a cost-effective solution for fully recyclable, latex-free, sustainable carpets
• Significant reductions in ecological footprint and cost for carpet manufacturers

Beaulieu Fibres International, Europe’s largest producer of polyolefin fibres, was nominated for the 2019 essenscia Innovation Award for its recently introduced UltraBond fibre.

The biannual award is the most prestigious prize for industrial innovation in Belgium. Created by essenscia, the Belgian Federation for Chemistry and Life Sciences industries, it aims to promote innovations in the Belgian industry and encourages companies to invest even more in innovative and sustainable products and applications. During the evaluation of the nominated innovation projects, the jury assesses their link with chemistry, life sciences and materials, their contribution to sustainable development, their intellectual property management strategy as well as their added value for the economy.

Formally introduced in early 2019, UltraBond is a patented polyolefin bonding staple fibre that eliminates the need for latex or other chemical binders to bond nonwovens. It enables carpet manufacturers to create 100% PP needlepunch carpets that meet the same performance requirements as traditional constructions, while also reducing end-of-life environmental impact.

UltraBond helps manufacturers make a significant contribution to the circular economy through the production of 100% recyclable carpets. In addition to making recycled PP available for the plastics production chain and reduced waste generation, their total lack of water use and reduced energy use result in significant environmental advantages and financial savings. There is also a reduction in the VOC level of the carpet. This all leads to a significant reduction in a needlepunch carpet’s ecological footprint to the tune of a 35% reduction in CO2 emissions during the full production process.

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.

Built on an island right off the Finnish capital Helsinki, the Nolla cabin represents an ecological alternative to cabin life.

This summer, living with minimal emissions will be put to the test. Neste is building a prototype of a cabin that has a minimal environmental impact in terms of both carbon dioxide emissions and concrete impact on nature. The Nolla (= zero) cabin, designed by Finnish designer Robin Falck, is located just outside Helsinki city center, on the Vallisaari island. The cabin has been built from sustainable materials and is designed for a simple lifestyle with minimal to no emissions, taking into account the surrounding nature in every respect.

Located on the idyllic island of Vallisaari in the Helsinki archipelago, the Nolla cabin encourages people to consider how modern solutions and innovations could enable sustainable cabin living. Vallisaari has been in a natural state for decades and is thus the perfect location for an urban cabin experience, located at a 20-minute boat ride away from the Helsinki market square. The ecological and mobile Nolla cabin will be in Vallisaari until the end of September, demonstrating a lifestyle that generates minimal to no emissions.

Placing the compact and mobile cabin on its private lot does not require a construction permit
and it has been designed to use building materials as effectively as possible. The cabin is the size of a small bedroom and can be assembled and transported without heavy machinery, leaving its environment nearly untouched. The Nolla cabin has been designed by Finnish designer Robin Falck, whose earlier design, Nido cabin, has been globally acknowledged.

The Nolla cabin introduces solutions, which enable minimizing cabin life emissions remarkably. The energy supply of the cabin is entirely renewable; electricity is generated by solar panels, whilst the Wallas stove, reserved for cooking and heating, runs entirely on Neste MY Renewable Diesel, made 100% from waste and residue. The Aava Lines raft operating between Helsinki city centre and Vallisaari will also run on Neste MY Renewable diesel that can reduce greenhouse gas emissions by up to 90%.

“With the Nolla cabin, we want to offer visitors the possibility to experience modern cabin life in the realm of nature, with minimal emissions. An ecological lifestyle does not only require giving up unsustainable commodities, but also discovering modern, sustainable solutions that can be used instead. This has been an essential part of the design process”, says Falck.

“Finns are known for spending time at their beloved summer houses. We wanted to explore sustainable solutions that could enable cabin life with minimal emissions. Shared and circular economy, as well as new technologies and innovations have made it possible to enjoy our cabins without harming or burdening the environment. Some of the solutions that have been used at the Nolla cabin are perfectly adaptable at any cabin”, says Sirpa Tuomi, Marketing Director at Neste.

The Nolla cabin is executed in collaboration with Fortum, Wallas and Stockmann and is part of the Journey to Zero project by Neste, which explores new ideas and aims to steer the world towards a cleaner future with fewer emissions.

• Lenzing will hold 51 percent in a future joint venture
• Largest single line dissolving wood pulp plant in the world
• Basic engineering and permitting process to be kicked off
• 43,000 hectares FSC® certified plantation secured
• Final investment decision subject to outcome of basic engineering expected in 2019

Lenzing Group, world market leader in specialty cellulosic fibers and Duratex, the largest producer of industrialized wood panels of the Southern Hemisphere, announce that they agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp (DWP) plant in the state of Minas Gerais, close to Sao Paulo, Brazil. This decision supports the backward integration and the growth in specialty fibers, defined in Lenzing’s corporate strategy sCore TEN.

The joint venture will investigate the construction of a 450,000 t DWP plant, which is expected to become the largest and most competitive single line DWP plant in the world. Dissolving wood pulp is the key raw material for the production of Lenzing’s bio-based fibers. For the future operation, the two companies have secured a plantation of 43,000 hectares that will provide the FSC® certified biomass. The plantation is fully in line with Lenzing’s wood and pulp sourcing policy. The basic engineering and the application for required permits and merger clearances will now be started.

Lenzing will hold 51 percent of the joint venture which will operate the mill, while Duratex’s share will be 49 percent. The estimated cash investment by the joint venture for the construction of the DWP mill is expected to be somewhat above USD 1 bn (based on current FX rates, net of generic tax refunds and the outcome of the basic engineering study). The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group. This step is an essential milestone in the group’s ambition to grow its specialty fibers business.

“Specialty cellulosic fibers are an important contribution to make the global textile industry more sustainable. In line with our corporate strategy sCore TEN we are committed to strong organic growth in this field. We are pleased that with Duratex, a recognized leader in sustainable forestry management, we have a strong partner in this joint venture. Together we will create a very sustainable and competitive raw material base for Lenzing’s global expansion plans”, says Stefan Doboczky, Chief Executive Officer of Lenzing Group.

“Projects of this nature are the result of our strategic plan and of our team’s effort towards drawing Duratex’s future. The Company is known for its financial solidity, high quality, innovation and sustainability; the results of a history spanning over six decades. The partnership with Lenzing for the construction of the largest single line dissolving wood pulp plant in the world is an honor for Duratex. Working with Lenzing, a global benchmark in technology, high quality and corporate governance makes us very proud. We are sure that this joint venture is going to be successful”, affirms Duratex’s Chief Executive Officer Antonio Joaquim de Oliveira.

The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

• Additives, pigments and masterbatches for transportation, packaging, textiles & fibers
• Support to “future-proof” medical applications
• Contributing towards more sustainable engineering plastics

Clariant, a world leader in specialty chemicals, turns the spotlight on its increasing on-the-ground support and innovation focus for North America’s four key plastics application segments at NPE 2018 Booth S18155.

Clariant is pushing forward with plans for growth in the region by advancing R&D competencies, and increasing its manufacturing footprint and technical capabilities across its 50+ sites, 3 R&D and 6 technical innovation centers. Clariant’s innovations for the plastics industry include advanced additives, masterbatches and pigments which support the packaging sector in engaging consumers via differentiated, convenient solutions. At NPE, it will also highlight solutions for enhancing and protecting healthcare products, as well as its contribution to stronger and colorful textiles and fibers for everything from e-mobility to industrial applications.

Deepak Parikh, president of region North America, Clariant comments: “Clariant’s product innovation for the US and wider North American plastics industry embraces the region’s fastest growing end-use areas of automotive and construction. It also addresses the impact of trends driven by changing consumer lifestyle preferences and market regulations on other important segments such as packaging and healthcare.”

Transportation
Clariant brings color and protection to support the increasing use of engineering plastics and high temperture resins in automotive interiors, exteriors and under-the-hood. Halogen-free Exolit® OP 1400 provides outstanding flame retardancy to polyamide parts, enhances safety with UL 94 V0 performance down to 0.4 mm and enables the molding of complex parts with no mold deposits and blooming. Exolit OP 1400 has been awarded the Clariant EcoTain®label for outstanding sustainability and performance. At the same time, Clariant offers low-halogen controlled high-performance PV Fast® pigmentswith excellent migration and weather fastness properties to meet the high requirements of today’s transportation and automotive industry. Easy processing Renol® compounds and masterbatches for engineering and high temperature resins provide heat and light stability, and flame retardancy, while maintaining critical flow properties in parts like SMT connectors. Importantly, they are available as small lots which enables customers to purchase only what they require and contribute to a reduction in their carbon footprint.

Packaging
As US packaging manufacturers explore more consumer-friendly, lighterweight and appealing solutions, Clariant is on hand to support their functionality, sustainability-related and color desires. Clariant Pigments has an innovative cooperation with Konica Minolta and matchmycolor to enable fast, precise and efficient color matching of HDPE products, using select organic PV Fast and Graphtol® pigments that comply with FDA regulations. The ColorWorks®center in Chicago is dedicated to US brand managers and designers with teams of color design experts to create color formulations faster than ever before for bottles, caps, closures and films.

According to market reports, plastic pouches are gaining share from traditional pack types in packaged food and are mainstream in home care. To support smoother and more environmentally-compatible processing especially for film applications, Clariant offers an FDA-compliant, vegetable-based powder amide wax, Licolub® FA 1, which acts as a slip and anti-block agent. It is suitable for polyolefins and PVC.

Textiles & Fiber
At NPE 2018, Clariant puts the focus on strong and colorful textiles, carpets and industrial fibers. New AddWorks® TFB 117 offers a number of benefits to help stabilize and smoothen fiber production processes, protect color, and improve heat stability and mechanical properties of fibers. AddWorks TFB 117 ensures smooth spinnability with less filaments breakage, even at low processing temperatures and at high speed spinning up to 5,500 m/min. Clariant also offers a broad range of colorants for polypropylene, polyester, polyamide and acrylic fibers, featuring migration fastness, chemical stability, light- and weather-fastness.

Healthcare
Clariant supports risk control and regulatory compliance for medical polymer and pharmaceutical packaging solutions. Its Mevopur® color and performance masterbatches and compounds include a USP Class 6 line of compliant products and multiple global ISO, 87, 88, and 661.1 certifications ahead of the market deadline. Clariant also offers selected FDA-compliant organic pigments and polymer soluble dyes that meet purity migration fastness as well as toxicological properties for medical devices and pharmaceutical packaging.