From the Sector

Der Bundesverband Medizintechnologie (BVMed) hat die Initiative von Bundeskanzler Olaf Scholz und Präsident Emmanuel Macron begrüßt, den EU-Haushalt neu auszurichten und „mehr für die Wettbewerbsfähigkeit ihrer Industrie“ zu tun. Dafür soll Bürokratie ab- und Schlüsseltechnologien ausgebaut werden. „Die MedTech-Branche ist in Europa eine Schlüsseltechnologie der Zukunft, die auch noch entscheidend für die Gesundheit und Lebensqualität der Menschen ist. Wir können gerade hier die Chancen noch besser nutzen, bessere Anreize für Innovationen setzen und unnötige Bürokratie abbauen. Wir müssen mit einem ‚Industrial Deal‘ einen besseren Interessensausgleich mit wirtschaftspolitischen Belangen erreichen und Europa wieder wettbewerbsfähiger machen“, kommentiert BVMed-Geschäftsführer und Vorstandsmitglied Dr. Marc-Pierre Möll.

• Der europäische Markt für Medizintechnik beträgt insgesamt rund 160 Milliarden Euro. Das sind über ein Viertel des Weltmarkts. Europa ist damit nach den USA der zweitgrößte MedTech-Markt der Welt.
• Die 35.000 europäischen MedTech-Unternehmen investieren viel in die Verbesserung und Entwicklung bahnbrechender Technologien zum Wohle der Patienten und beschäftigen 865.000 Menschen in Europa.
• 92 Prozent der Unternehmen sind kleine und mittelständische Betriebe (KMU).

Insbesondere hilft die Medizintechnik den Patient:innen und unterstützt die Angehörigen der Gesundheitsberufe mit innovativen Lösungen. Sie sorgt dafür, dass immer mehr Menschen besser und gesünder länger leben.

„Aber: Europa verliert bei dieser wichtigen Schlüsselindustrie durch die überbürokratische und nicht praxistaugliche europäische Medizinprodukte-Verordnung, kurz MDR, den Anschluss“, warnt Möll. Unternehmen bevorzugen mittlerweile die Markteinführung von Innovationen in den USA.

• Nach einer Analyse der Boston Consulting Group (BCG) priorisieren mittlerweile 89 Prozent der Unternehmen eine FDA-Zulassung.
• Auch die BVMed-Herbstumfrage 2023 zeigt: Die Zeiten, in denen das europäische Regulierungssystem für Medizinprodukte dem US-amerikanischen FDA-System überlegen war, sind lange vorbei. 53 Prozent der BVMed-Mitgliedsunternehmen präferieren das FDA-System, nur 12 Prozent das MDR-System der EU. 35 Prozent haben keine Präferenz.

In seinem MDR-Whitepaper fordert der BVMed daher unter anderem die Abschaffung der fünfjährigen Re-Zertifizierungs-Pflicht, die Einführung eines Fast-Track-Verfahrens für innovative Produkte, Orphan Devices und Nischenprodukte, die Steigerung der Effizienz, der Transparenz und der Berechenbarkeit des MDR-Systems sowie die Zusammenführung der Verantwortung im System über eine zu schaffende Governance-Struktur.

Der BVMed fordert in seinem Positionspapier zur Europawahl am 9. Juni 2024 zudem einen eigenen Gesundheitsausschuss im Europäischen Parlament, um den gestiegenen Stellenwert der Gesundheitsthemen abzubilden. Unter dem Titel „Medizintechnik-Standort Europa stärken“ ist es für den deutschen Medizintechnik-Verband besonders wichtig, die Resilienz des Gesundheitssystems zu stärken und damit die medizinische Versorgung krisenfest zu gestalten.

Fashion for Good launches the Sorting for Circularity USA report unveiling significant findings from the project. A first of its kind in the US, the report delves into consumer disposal behaviour, textile waste composition, and the potential for fibre-to-fibre recycling within the country. It provides insights for making informed decisions for further investments, infrastructure development and the next steps towards circularity.

The U.S. Textile Waste Landscape
The United States is a global leader in textile consumption and waste generation, positioning itself as one of the largest sources of secondary raw materials for post-consumer textile feedstock. Despite this, only 15% of the textile waste generated in the US is currently recovered, with 85% ending up in landfills or incinerators.

With the impending policies in the European Union and certain American states, alongside commitments from both public and private sectors to promote fibre-to-fibre recycling, there is a growing demand for infrastructure related to post-consumer textile collection, sorting, and recycling.

Addressing Data GPS
In the pursuit of establishing a functional reverse supply chain and the necessary infrastructure, two critical areas lack data  – consumer disposal behaviour, and material characteristics of post-consumer textiles. The Sorting for Circularity USA project addressed these gaps through a comprehensive national consumer survey and waste composition analysis.

The survey revealed that 60% of respondents divert textiles, while 4% discard them, driven primarily by factors such as condition and fit. On the other hand, the waste composition analysis unveiled that over 56% of post-consumer textiles are suitable for fibre-to-fibre recycling, with cotton and polyester being the most prevalent fibre types, indicating a substantial potential for these textiles to be used as feedstock for mechanical and chemical recycling processes.

The project revealed a $1.5 billion opportunity for fibre-to-fibre recycling by redirecting non-rewearable textiles from landfills and incinerators to recycling streams. The report outlines growth strategies for the US textile recycling industry, emphasising enhanced financial value through efficiency improvements, increased commodity valuation, and policy mechanisms like extended producer responsibility schemes. Collaboration among stakeholders is crucial, including brands, government, retailers, consumers, collectors, sorters, recyclers, and financial institutions, to promote circularity, invest in research and development, and advocate for supportive policies and incentives to drive technological innovation. This redirection of textiles towards recycling underscores the substantial economic potential of embracing circularity in the textile industry.
 
There is an opportunity to build on these insights and assess the feasibility of different sorting business models and (semi) automated sorting technologies to create a demo facility suitable for closed-loop textile recycling. Ultimately, evaluating the commercial and technical feasibility of a semi-automated sorting process and identifying investment opportunities to scale solutions nationwide.

The new M line Allergen Spray, powered by patented HeiQ Synbio technology, eliminates allergens that are commonly found in our homes, and which affect a large percentage of people. These allergens include dust mite matters and allergens on pet hair which are found on our beds, sofas, carpets, curtains, and other household items. By applying the Allergen Spray, you can harness the powers of active probiotics, which break down common allergens, making bedroom and living spaces more comfortable and fresher.

Allergies are typically triggered by allergenic proteins. The active probiotics (beneficial bacteria) in the spray generate enzymes that break down proteins, removing these allergy triggers. A study by BMA Laboratories (Bochum, Germany), an accredited and independent laboratory, observed a 60% house dust mite allergens reduction, over 75% pet allergen reduction, and a close to 90% pollen allergen reduction, after the initial treatment.

The future of allergen reduction with the M line Allergen Spray, where innovation meets everyday convenience, is now available at Beter Bed stores in The Netherlands and the Belgian Flemish region. The continuous misting spray bottle ensures an even application, making it suitable to apply in home textiles such as mattress toppers, bed linen, pillow covers, comforters, carpets, rugs, and upholstered furniture, or any other items in reach of dust mites and pets. In the first week, the spray should be applied every day, and thereafter twice per week. The probiotics keep working for days, helping to maintain a balanced microbiome on treated surfaces

Monforts, which is celebrating its 140th anniversary this year, will exhibit a Montex stenter chamber with an integrated overhead heat recovery unit at the forthcoming ITM textile machinery exhibition in Istanbul from June 4-8.

The heat recovery unit on display at the stand of Monforts partner Neotek is just one of a range of energy saving options the company is now providing for both new and existing line installations.

Monforts Montex stenters and Thermex dyeing ranges are industry standard for the fabric finishing industry, providing many advantages in terms of production throughput and especially in energy efficiency and savings.

coaTTex
At ITM, Monforts will also introduce its latest coaTTex coating unit, dedicated to air knife and knife-over-roller coating. For single-sided application with paste or foam, the versatile coaTTex is suitable for both incorporation into existing finishing ranges as well as installation with new Monforts lines, especially Montex stenter systems.

A wide range of coatings can be applied to fabrics for providing functions such as waterproofing, liquid and gas protection and breathability, in addition to foam lamination and coating, including black-out coating.

Central location
“In Turkey we are very strongly supported by our representative Neotek, our solution partner on the ground for service, installation and commissioning, providing specialised and rapid help to all of our customers,” says Monforts Area Sales Manager Thomas Paeffgen. “ITM is always one of the most important exhibitions for Monforts, for meeting customers not just from Turkey, but across the Middle East and Central Asia, as well as Bangladesh, India and Pakistan.

“Istanbul’s centralised position makes it accessible to the majority of the major textile manufacturing hubs and as we mark our 140th anniversary in 2024, having been founded back in 1884, the ITM show will provide us with the ideal opportunity to celebrate with colleagues and customers all together in one location.”

On the occasion of the 15-year anniversary of the inaugural Global Fashion Summit, Global Fashion Agenda (GFA) has released a special edition of the Fashion CEO Agenda  — a strategic resource designed to steer fashion organisations towards achieving a net positive industry by 2050. In line with the 2024 theme of Global Fashion Summit, ‘Unlocking the Next Level’, this year’s Fashion CEO Agenda presents five pivotal opportunities for fashion executives and the industry at large to unlock transformative impact for people and planet.

In the 15 years since the inception of Global Fashion Summit in 2009, sustainability has evolved from a peripheral concern to a central focus in the fashion business landscape, prompting significant strides across the industry. Despite this progress, the alarming escalation of global warming and exponential rise in clothing production demand urgent and collective action from fashion industry leaders.

Unlocking the next level of positive impact necessitates a comprehensive understanding of interdependencies and system-wide solutions. The 2024 edition of the Fashion CEO Agenda aims to empower fashion leaders and the wider industry to embrace five key opportunities:

• Operationalising Sustainability
• Redefining Growth
• Activating Consumers
• Prioritising People
• Mobilising Based on Materiality

Drawing from the five priorities of the Fashion CEO Agenda — Respectful and Secure Work Environments, Better Wage Systems, Resource Stewardship, Smart Material Choices, and Circular Systems — this special edition highlights five cross-cutting opportunities that will help achieve the next level of progress on these priorities.

Tailored for fashion brands, retailers, and producers, this edition of the Fashion CEO Agenda differs from previous editions as it focuses on challenging norms and amplifying efforts, and serves as a crucial inflection point for the industry to foster positive outcomes for both society and the environment. By upholding the rights of workers, championing diversity and inclusivity, redefining success metrics, and reshaping growth paradigms, profound transformation is possible.
 
Federica Marchionni, CEO, Global Fashion Agenda, says: “The Fashion CEO Agenda 2024 aims to help leaders to shift their mindset, providing clear unlocks for embracing the challenges for future proofing their businesses and operations. I urgently encourage leaders to work closely with cross-functional teams, use empathy, and a values-based approach that prioritises the planet and the well-being of the people. By doing so, we secure the foundation of our businesses and deliver not only financial returns but also positive impact on the world around us.”

Through renowned events, impact programmes, and thought leadership publications, GFA consistently convenes industry pioneers, shares tangible case studies, disseminates best practices, and highlights practical tools. While recognising the enduring utility of these resources, stakeholders are now encouraged to build upon existing insights and embrace increasingly sophisticated, holistic, and human-centric opportunities to unlock the next level of industry transformation across the entire value chain.

The Fashion CEO Agenda 2024 is an openly accessible resource and available to download at the GFA’s website

• Sales Volume rose 3% QoQ and 2% YoY to 3.55MT
• Adjusted EBITDA of $366M, a rise of 32% QoQ and a decline of 2% YoY
• Operating cash flows of $184M
• Net Operating Debt to Equity of 1.12
• Reported EPS of THB0.17

Indorama Ventures Public Company Limited (IVL) reported an improved quarterly performance as the prolonged destocking trend showed further signs of easing. During the quarter, the company progressed its IVL 2.0 evolved strategy to enhance earnings quality and transform its business to emerge stronger from the downturn in global chemical markets.

Indorama Ventures’ reported Adjusted EBITDA1  of $366 million in 1Q24, a 32% increase QoQ and a 2% decline YoY. Sales volume grew 3% QoQ as the widespread customer destocking that sapped demand through 2023 shows signs of a gradual recovery across all sectors, partially offset by a winter freeze in the U.S. The result was supported by lower utilities costs in Europe, Red Sea-related supply chain disruptions that benefited the company’s import parity advantages, and favorable shale gas economics that bolstered profitability in the U.S.

Indorama Ventures expects the recovery in volumes to continue through 2024, albeit at a gradual pace as destocking normalizes and the approaching summer supports demand. However, the overall landscape for the global chemical industry remains challenging due to excess capacity builds, as well due to persistent inflation and high interest rates which weigh on industry spreads and continue to impair profitability, especially across the polyester value chain. Our HVA segment ‘Indovinya’ is progressing well into the second quarter post the easing of destocking and anticipating a healthy 2024.

The company’s experienced management remains intensely focused on managing costs, optimizing competitiveness, and maintaining high liquidity. Indorama Ventures’ diverse geographical footprint is a key advantage in the current low-margin environment, allowing its businesses to maintain their strong market premium, supported by protection from trade and non-trade barriers.

In 1Q, the company made headway with its IVL 2.0 three-year plan to leverage its global leadership position and forge a new era of opportunity amid significant structural changes in chemical markets. Under the evolved strategy, which the company outlined at its annual Capital Markets Day in March, Indorama Ventures is optimizing assets, reducing debt, and focusing on generating free cash flow to deliver enhanced shareholder returns. Today, 70% of the company's revenue has deployed the SAPS/4HANA ERP and is using the infrastructure to enhance digital procurement, sales excellence, and integration of supply chains across the business. The company believes these AI tools will improve productivity and costs, as well as release working capital in line with its modernization strategy.

As part of IVL 2.0, the company is optimizing 7 sites, including the ongoing evaluation of its PTA/PET operation in the Netherlands. It has also made significant progress in its program to refinance $1.1 billion of debt within the first half of 2024 to ensure ample liquidity. Recent capital raisings include a $255 million ‘Ninja loan’, a THB 10 billion debenture, a $100M bi-lateral loan, and this week’s successful close of a $500 million syndicated loan – achieved at lower-than-average spreads compared to previous issuances.

To unlock value, Indorama Ventures is preparing its packaging and surfactants businesses for IPOs. From 1Q24, the Indovinya segment (previously named ‘Integrated Oxides and Derivatives’) is focused on developing its attractive downstream surfactants operations as a separate segment. The segment’s Intermediate Chemicals business, consisting of shale base integrated Ethylene MEG, MTBE and merchant Purified EO assets, have been moved under the Combined PET (CPET) segment where they are a natural fit.

Segment Performances
In 1Q24, CPET segment (including Intermediate Chemicals) posted Adjusted EBITDA of $249 million, a 34% gain QoQ and 4% YoY as supply chain disruptions and a consequent spike in global ocean freight rates supported high prices and margins, and as Western markets benefited from lower energy costs. The Indovinya segment reported a stable Adjusted EBITDA of $70 million, impacted by the winter freeze in the U.S and a mini turnaround at a PO/PG plant. The Fibers segment achieved a remarkable 73% increase in Adjusted EBITDA to $39 million QoQ, and 2% YoY, as destocking waned across all three business verticals and drove an 8% QoQ increase in volume.

Intertextile Shanghai Home Textiles will mark its 30-year milestone at the National Exhibition and Convention Center (Shanghai) this autumn, from 14 – 16 August 2024. With industry players from around the world gearing up to join this year’s anniversary edition, the showcase will feature returning pavilions, a new product zone, and exhibitors with a wide range of fabrics and more.

30th anniversary celebration
With the ‘Intertextile’ brand present in the Chinese textile market since 1995, increasing market demand, both domestically and internationally, has contributed to the consistent upward trajectory of Intertextile Shanghai Home Textiles – Autumn Edition.

By utilising advanced technologies and abundant resources, China has earned its global reputation as one of the major manufacturing hubs for home textile products. Chinese home textile exports reached over USD 4.8 billion in the first two months of 2024, a year-on-year increase of 13.7%[1], demonstrating a welcome recovery. On the other hand, the country’s huge population, coupled with its increasing per capita textile consumption and home renovation projects, is providing a plethora of business opportunities for international suppliers to discover.

Featured zones and country pavilions
At this special edition, a new product zone will be unrolled for the first time–the Carpets & Rugs Zone. Set to feature various related products, the rising demand for these floor coverings has prompted the birth of this new featured zone. Meanwhile, the sought-after Designer Studio will return to help buyers achieve product-specific sourcing goals. Furthermore, with carpets, curtains, sun protection, leather, and many more home textiles all zoned accordingly under one roof, buyers will be able to source from a full range of products.

The Belgium and Türkiye Pavilions will once again showcase various product series from premium brands, alongside a comprehensive list of domestic exhibitors and multiple standalone international suppliers set to present their latest innovations and designs.

Beyond exhibitors’ booths, the fair’s anticipated fringe programme will showcase innovations and discuss market trends, such as broadly discussed AI and sustainability topics, to help fairgoers stay ahead of the curve. Simultaneously, the Danish trend agency SPOTT, founded by Ms Anja Bisgaard Gaede, also the leading trend agency for Heimtextil 2024, will be collaborating with the fair for the first time this year. The organisation will present an innovative trend area, set to illustrate design inspiration and industry direction for the upcoming season, through a series of creative displays. In addition, Mr Shen Lei, Founder and Design Director of Interior Architects Design, and the Chinese representative of the Intertextile International Lifestyle Trend Committee, will be returning this year to delve into design topics via his seminar.

^[1] Tnc.com.cn：Analysis of China’s home textile exports from January to February 2024. https://www.tnc.com.cn/info/c-001001-d-3742104.html

• Revenue up 5.7 percent year-on-year to EUR 658.4 million
• EBITDA more than doubles year-on-year to EUR 71.4 million
• Free cash flow of EUR 87.3 million (compared with minus EUR 132.3 million in the first quarter of 2023) and thereby positive for the third consecutive quarter
• Performance program shows positive effect on revenue, EDITDA, and free cash flow
• Lenzing confirms EBITDA guidance for 2024

The Lenzing Group, a leading supplier of regenerated cellulose for the textile and nonwovens industries, recorded a further improvement in fiber sales volumes in the first quarter of 2024. An expected recovery in markets relevant for Lenzing has to date failed to materialize. Fiber prices remained at a low level. Although the costs of raw materials and energy continued to decrease, they remained higher than in the pre-crisis 2019 year.

Outlook
Even though the IMF has upgraded its growth forecast for 2024 from 3.1 percent to 3.2 percent, a number of risks remain for the global economy: potential geopolitical shocks, persistently higher inflation and key interest rates, as well as market risks emanating from the Chinese real estate market are currently considered to be the most relevant.

General inflation and falling incomes in real terms are continuing to exert a negative impact on consumer sentiment. A recovery in the consumer clothing market, which is important for Lenzing, will also depend on a further normalization of stock levels.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, a stable price trend is expected for the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first quarter exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. By appointing a separate Managing Board member, the projects identified to date are to be implemented even more rapidly, and new potentials are to be leveraged. Lenzing expects that these measures will increasingly contribute to further earnings improvement over the coming quarters compared to the first quarter of 2024.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

Polartec, a Milliken & Company brand, underscores its dedication to building a more sustainable future as it pursues the 2025 People, Product and Planet Goals, including certified science-based net-zero targets.

The Milliken & Company 2023 Sustainability Report discloses performance against the diversified global manufacturer’s 2025 Sustainability Goals and Net-Zero Targets and details the company’s key impacts across its people, product, planet, and net-zero measures. It also includes updates on each of the key impact areas Milliken and Polartec adhere to, including:

• People: The company focused on protecting associates by reducing lost-time incidents, strengthened its commitment to an inclusive supply chain by hosting its inaugural Supplier Diversity Event, and surpassed its goal of serving 100,000 community volunteer hours one year ahead of schedule.
• Product: Milliken used sustainability assessments to analyze all new products and made measurable gains in its multi-year commitment to address end-of-life challenges for plastics.
• Planet: Investments in cogeneration, energy efficiency, and renewable energy procurement are keeping the company ahead of schedule relative to its 2025 Greenhouse Gas (GHG) and Renewable Energy Goal; however, paths to achieve its 2025 Landfill and Water Reduction Goals have proven more challenging.
• Net-Zero: Five years of progress on GHG and renewable goals have helped Milliken progress toward its 2030 scope 1 and 2 net-zero targets, and the company has improved its scope 3 accounting to allow for a more detailed and accurate perspective on value chain emissions.

Texworld Apparel Sourcing Paris opens its doors from 1 to 3 July at Paris Expo Porte de Versailles. More than a thousand exhibitors from the world's major sourcing countries will be offering inspirational sources for building collections for 2025-2026. This season's show will focus on suppliers of innovative products and solutions for high-performance and sustainable fashion.

Yarn in the spotlight
Taking us further upstream in the industry and for the first time at the Parisian trade shows, a pavilion featuring yarn producers will be found at the exhibition. Co-organised with Yarn Expo, a Shanghai show in the Messe Frankfurt galaxy, this dedicated pavilion will feature companies from China, India, Pakistan and Taiwan.

A Leather trends area at Leatherworld, partnerships at Avantex
As in previous summers, this season’s show will bring together all the different aspects of Texworld Apparel Sourcing Paris. Leatherworld, the platform dedicated to leather sourcing, is announcing the return of a South African pavilion. This area will also host a Leather Trends area created and run by Italian publisher Edizioni AF, a specialist in the leather industry. Particular attention will be paid to the design processes and choice of materials used by Italian accessories and footwear manufacturers.

A number of new features are also expected in the Avantex innovations area: Partnerships with the IFA Paris fashion design school, the TCBL association and the TUV Rheinland certification body, which will showcase  solutions in sustainable fashion and textiles, and provide an opportunity to discuss these issues at expert round tables.

Furthermore, the fair will be showcasing Texpertise Econogy, the sustainable economy approach developed by the international Messe Frankfurt group to guide visitors in their sourcing choices. Following its launch in February, the upcoming event will continue to promote sustainability with a number of features and provide a platform for green pioneers.