From the Sector

World Natural Fibre Production in 2022 is estimated at 32.6 million tonnes, down 1.1 million tonnes from the estimate one month ago. Production reached 33.3 million tonnes in 2021 and 31.6 million in 2020.

A drought in Texas where over half of cotton produced in the United States is grown, and flooding in Pakistan, the fifth largest cotton producer, account for the decline (www.ICAC.org).

• Nearby cotton futures on the Intercontinental Exchange rose 14% from the end of July and finished August at $2.60 per kilogram.
• The Eastern Market Indicator of wool prices in Australia, fell 1% from mid-July to mid-August to US$9.27 per kilogram.
• Prices of jute fibre in India quoted by the Jute Balers Association (JBA) at the end of August converted to US$ fell 4% from a month earlier to 79 cents per kilogram.
• Prices of silk in China equalled US$ 28.7 per kilogram at the end of August, compared with US$29.5 per kilogram in July 2022, a change of 3%.
• Coconut coir fibre in India held at US cents 21 per kilogram in August.

World production of jute and allied fibres is estimated unchanged at 3.2 million tonnes in 2022 compared with 2021. High market prices in 2021 motivated farmers to expand planted area in both Bangladesh and India, but dry weather during June and July will limit yields per hectare. Normal monsoon rains resumed in South Asia during August, too late for the 2022 jute crop (https://www.wgc.de/en/).

Production of coir fibre rose by an average of 18,000 tonnes per year during the past decade, and production was at a record high of 1.12 million tonnes in 2021. Production is expected to remain high in 2022.

Flax has also been trending upward, rising by an average of 27,000 tonnes per year, and production in 2022 is estimated to remain above one million tonnes.

World wool production is forecast up by 5% in 2022 to 1.09 million tonnes (clean), the highest since 2018. Wetter weather in the Southern Hemisphere, following eight years of drought, is allowing farmers to rebuild herds (https://www.wool.com/market-intelligence/).

Natural fibres are heavily-traded commodities, and supply chain disruptions are causing significant economic losses as freight costs remain high and deliveries are delayed.

About 40% of world cotton production moves as fibre in international trade each season. Over half of world jute production moves as fibre or product, and around 55% of world wool production is exported as raw wool. Abaca, flax, and sisal are also heavily traded.

Most natural fibre exports traverse back-haul ocean freight routes from the Western Hemisphere to East Asia and the Middle East, from South Asia to East Asia and Europe, from Africa to East Asia and the Middle East, and from Australia and South Africa to China. Such routes are relatively underserved in the best of times, and reduced sailings since the start of Covid are restricting trade volumes.

As of the end of August, Freightos (https://fbx.freightos.com/) quoted the cost of moving a 40’ container from the United States West Coast to East Asia at $793, compared with $1,020 in March 2022. Nevertheless, average freight costs on back -haul routes used by natural fibres remain approximately triple their pre-covid levels. In addition to ocean freight costs, inland transportation is also affected by high fuel prices and a lack of containers. As one example, charges for inland handling of export containers in Bangladesh, the largest exporter of raw jute, increased by 48 per cent during August.

• Integrated Sustainability Report 2021 – 2022 published

DyStar, a leading specialty chemical company released its twelfth annual Sustainability Performance Report. The report is prepared in accordance with the updated GRI Standards 2021: Core option. DyStar continues to adopt the Integrated Reporting <IR> framework to communicate how the group has successfully created tangible value across multiple stakeholder groups in six major capitals.

DyStar reports that they have inched themselves closer to some of their 2025 target of reducing the environmental footprint by 30% for every ton of product, from 2011 levels. Here are some key highlights for FY2021:

• Recorded more than 29% increase in revenue compared to 2020
• Zero workplace fatalities, high-consequence injuries, and work-related ill health
• 40% reduction in Greenhouse gas (GHG) emission intensity, compared to 2011
• 37% decrease in wastewater emission intensity, compared to 2011

The Group was able to remain resilient and steer itself toward optimistic growth and recovery from the global pandemic in FY2021. In face of recent geopolitical events and macroeconomic factors such as soaring energy costs, DyStar and the wider supply chain will continue to face challenges. As a result, the company believes it is crucial to stay committed to their 2025 Sustainability goals to continue generating value for all stakeholders in the longer term, well beyond these turbulent times.

The report communicates DyStar’s progress towards its sustainability agenda and material topics. As part of our commitment to environmental sustainability, only an e-magazine and a PDF version will be made available for download from www.DyStar.com/sustainability-reports/

27^th International Garment Machinery, Spare Parts and Sub-Industry Exhibition, one of the largest exhibitions in Europe ended with great interest. The IGM 2022 Exhibition, which hosted ready-to-wear investors and leading brands of the garment machinery sector in Istanbul for 4 days, satisfied the exhibitors with the number of foreign and domestic visitors and machinery sales.

IGM 2022, Turkey's first and only international exhibition in its field, has become the most comprehensive meeting point of the sector where all technologies used in garment and ready-to-wear production from sewing to cutting, ironing systems to packaging, embroidery to printing are exhibited. IGM 2022, the first international exhibition organized in the garment industry after the pandemic, turned into a platform where many firsts were achieved. Especially domestic machinery manufacturers introduced the latest technologies and innovations developed in the last 4 years for the first time at IGM 2022. In addition, the latest models of embroidery machines were exhibited in working condition only at IGM 2022. International buyers, who had the opportunity to observe and examine all the innovations in the apparel and ready-to-wear sector together, had the opportunity to direct their investments thanks to IGM 2022.

The exhibition, organized in partnership with Tüyap & Teknik Fairs Inc. and in cooperation with KOMİD- Garment Automation Machinery Manufacturers Association and İNSAD- Istanbul Embroidery Industrialists Association, was held at Tüyap Fair and Congress Center on September 8-11. The IGM 2022 Exhibition, which was attended by 100 companies and company representatives from countries including Turkey, Japan, USA, China, South Korea, Brazil, Brazil, Italy, Spain, Germany, Greece, Netherlands, Bangladesh and Iran, was visited by 9822 sector professionals from 64 countries, including 1483 international and 8339 domestic visitors.

Next Meeting on September 21-24, 2023
The next meeting of the IGM 2023 Exhibition will be held at Tüyap Fair and Congress Center between September 21-24, 2023. Considering the dates of the exhibitions organized in the same sector in different countries of the world and Europe and the gains of the sector, an exhibition calendar was determined for the IGM Exhibitions to be held biennially. IGM Exhibition will be organized in 2023 and the following odd years (such as 2025-2027) in order to prevent companies from being under the burden of exhibitions in terms of both time and budget due to participating in more than one exhibition in the same year.

Electronically conductive fibres are already in use in smart textiles, but in a recently published research article, ionically conductive fibres have proven to be of increasing interest. The so-called ionofibres achieve higher flexibility and durability and match the type of conduction our body uses. In the future, they may be used for such items as textile batteries, textile displays, and textile muscles.

The research project is being carried out by doctoral student Claude Huniade at the University of Borås and is a track within a larger project, Weafing, the goal of which is to develop novel, unprecedented garments for haptic stimulation comprising flexible and wearable textile actuators and sensors.

In Claude Huniade’s project, the goal is to produce conductive yarns without conductive metals.
"My research is about producing electrically conductive textile fibres, and ultimately yarns, by coating non-metals sustainably on commercial yarns. The biggest challenge is in the balance between keeping the textile properties and adding the conductive feature," said Claude Huniade.

Currenty, the uniqueness of his research leans towards the strategies employed when coating. These strategies expand to the processes and the materials used.

Uses ionic liquid
One of the tracks he investigates is about a new kind of material as textile coating, ionic liquids in combination with commercial textile fibres. Just like salt water, they conduct electricity but without water. Ionic liquid is a more stable electrolyte than salt water as nothing evaporates.

"The processable aspect is an important requirement since textile manufacturing can be harsh on textile fibres, especially when upscaling their use. The fibres can also be manufactured into woven or knitted without damaging them mechanically while retaining their conductivity. Surprisingly, they were even smoother to process into fabrics than the commercial yarns they are made from," explained Claude Huniade.

Ionofibres could be used as sensors since ionic liquids are sensitive to their environment. For example, humidity change can be sensed by the ionofibers, but also any stretch or pressure they are subjected to.

"Ionofibres could truly shine when they are combined with other materials or devices that require electrolytes. Ionofibres enable certain phenomena currently limited to happen in liquids to be feasible in air in a lightweight fashion. The applications are multiple and unique, for example for textile batteries, textile displays or textile muscles," said Claude Huniade.

Needs further research
Yet more research is needed to combine the ionofibres with other functional fibres and to produce the unique textile devices.

How do they stand out compared to common electronically conductive fibres?
"In comparison to electronically conductive fibres, ionofibers are different in how they conduct electricity. They are less conductive, but they bring other properties that electronically conductive fibers often lack. Ionofibres achieve higher flexibility and durability and match the type of conduction that our body uses. They actually match better than electronically conductive fibres with how electricity is present in nature," he concluded.

• Partnership with green power producer Enery and Energie Steiermark realizes construction of a photovoltaic plant with 5.5 MWpeak capacity
• Strategic investments in renewables boost energy independence and reduce carbon footprint

The Lenzing Group has signed an electricity supply contract with green power producer Enery and Energie Steiermark to finance a photovoltaic plant in the Deutschlandsberg region (Styria). The electricity generated will supply the fiber and pulp plant at the Lenzing site after commissioning from the fourth quarter of 2023. The electricity supply contract is limited to 20 years.

The plant’s output will amount to 5.5 MWpeak. This corresponds to the average annual electricity demand of more than 1,700 households. Several photovoltaic systems are already being installed at the Lenzing site, including the largest ground-mounted plant in the province of Upper Austria, whose commissioning is imminent.

In 2019, Lenzing became the first fiber manufacturer to set a target to reduce its carbon emissions by 50 percent by 2030 and to be climate neutral by 2050. This carbon reduction target has been confirmed by the Science Based Targets Initiative. Lenzing is also currently investing in reducing carbon emissions at other sites worldwide. Only recently, the Lenzing Group announced that its Indonesian site will also be relying on green energy in the future.

• Monomaterial solution contains renewably-sourced polypropylene from the Bornewables™ portfolio of circular polyolefins
• Trexel employs its proprietary MuCell® technology to deliver a range of lightweighting benefits
• EverMinds™ in action: reuse and design for recycling are focus of value chain collaboration

Borealis and Trexel, an expert in foaming injection and blow moulded parts, announce that they have co-developed a new plastic bottle based on a grade from the Bornewables™ portfolio of polyolefins made using renewable feedstocks derived 100% from waste and residue streams. The lightweight bottle – which will be showcased at the Borealis stand at the K 2022 (from 19 to 26 October 2022 in Düsseldorf) – is reusable and fully recyclable. It boasts a significantly lower overall CO₂ footprint because it is composed of renewably-sourced feedstock and produced in the foaming process.

The Bornewables™ portfolio of circular polyolefins helps reduce the carbon footprint while offering material performance equal to virgin polymers. Using Bornewables grades allows for design freedom and colour flexibility, and helps retain a premium look and feel. The grades – which are commercially available in Europe – help conserve natural resources because they are derived solely from waste and residue streams, for example from used cooking oil. Reusing waste already in circulation instead of fossil fuel-based feedstocks enhances the sustainability of applications made using the Bornewables grades.

The reusable new bottle developed by Borealis and Trexel retains its value over many life cycles thanks to the use of Trexel’s proprietary technology in tandem with Bornewables grades; as a material solution, the new bottle minimises the use of valuable raw materials. Moreover, converters consume less energy in the production process when using the MuCell® technology. The bottle thus helps close the loop on plastics circularity by way of design for recycling, the use of renewable feedstocks, and excellent material performance across multiple life cycles.

A new fabric inspection technique for accurately detecting the most subtle of defects on patterned fabrics during high speed production has been developed by BTMA member Shelton Vision, of Leicester, UK.

The patent-pending system has been integrated into the company’s WebSpector platform and validated through factory trials on a purpose-built full scale in-house demonstration system with sophisticated fabric transport capabilities. As a result, a first system has already been ordered by a manufacturer of both plain and patterned fabrics, including camouflage, in Colombia. This follows the successful conclusion of a 21-month Innovate UK project in which techniques for the resolution of complex pattern deformations were developed by machine vision and computer scientists in the company, backed up by the machine vision and robotics department at Loughborough University.

Restrictions
Traditional methods for defect detection rely on human inspection which is ineffective, with detection rates under 65%, while the Shelton WebSpector machine vision system offers a sophisticated platform for automated defect detection of over 97%, but until now has been restricted to plain textiles.

While pattern matching and neural network approaches have previously been tried for patterned textiles, they have failed to provide a practical solution due to the extreme complexity associated with pattern matching on deformable substrates like textiles, as well as the time required to train a neural network for each pattern type.

Challenges
The challenge is that fabrics are not rigid and can be creased or stretched and are also subject to local distortion,” says Shelton Vision Managing Director and CEO Mark Shelton. “As a result, inspection without the technique we have developed, would lead to thousands of false positives. Our sophisticated pattern inspection software techniques ensure a clean image, allowing the detection of faults on fabrics running at speeds of up to a hundred metres a minute.”

The full system consists of:

• A camera and lighting system for optimum image capture at high speed and associated image processing hardware.
• Self-training software utilising statistical analysis to automate the system configuration for new textile products.
• An advanced suite of defect detection algorithms for the detection of all textile defect types.
• An AI-driven defect classification system which learns and automates defect naming in real time, as well as a real time defect grading capability based on client decision rules.
• A system for recording and retrieving complete roll map images for subsequent review and quality control.

The generation of textile roll maps with complete defect data allows for an optimised textile cut plan, improved downstream processing and quality assurance.

Geosynthetics have become an indispensable part of the construction industry. PP nonwovens, for example - mechanically bonded continuous fibres made from specially UV-stabilised polypropylenes - are often used in blanket form as barriers, screens and filters, and their strength extends the service life of construction projects. Whether for road construction, or as barrier on glaciers or against weeds - there are myriad applications.

TenCate Geosynthetics uses the PURE LOOP ISEC evo technology to recycle this type of PP nonwoven. The European company, with locations in Austria, France and the Netherlands, is specialised in the development and production of geotextiles for modern civil engineering applications. The edge trimmings and production rejects generated during manufacturing used to be recycled at the Linz site, but not fed back into the company's own production process.

"The demands on us were high," recalls Patrick Wiesinger, project manager at PURE LOOP. "The PP nonwoven is highly tear resistant, which means its a very challenging recycling process. Our ISEC evo machine conserves the quality of the production waste really well during recycling, so we were able to achieve the specified increase in quality for the recyclates."

Another advantage of PURE LOOP technology is the wide range of shapes in which the production scrap can be delivered for processing. "Our ifeed technology with double feed ram system and singleshaft shredder offers the ideal conditions for direct processing of these large rolls - and without the need for prior preparation of the input material by employees before the material is fed into the recycling process", emphasizes Patrick Wiesinger. With the ISEC evo recycling machine TenCate can now manufacture its high-strength PP nonwoven product with a recyclate content of up to 10 percent.

At the Extraordinary General Meeting (EGM)- September. 6 2022, the shareholders of Akzo Nobel N.V. (AkzoNobel) appointed new CEO Gregoire Poux-Guillaume as a member of the Board of Management, effective November 1, 2022.
 
Mr. Poux-Guillaume will succeed Thierry Vanlancker, who has been CEO and member of the Board of Management since 2017, and whose term of office is coming to an end. Mr. Poux-Guillaume will join AkzoNobel on October 1, to ensure a smooth transition as per November 1.
 
Nils Smedegaard Andersen, Chair of AkzoNobel’s Supervisory Board, commented: “I would like to welcome Gregoire Poux-Guillaume, who is an experienced business leader with an impressive track record of delivering results, growth and building strong teams. His experience will play a key role in helping the company to further improve its operational excellence and performance. I’d also like to thank Thierry for his time at AkzoNobel, during which AkzoNobel was transformed to become a focused and competitive paints and coatings company, with significant returns to shareholders.”
 
Mr. Poux-Guillaume’s previous roles include CEO of Sulzer, CEO of GE Grid Solutions (previously Alstom Grid) and Senior Managing Director of CVC Capital Partners.

Due to the continued good business development, especially in the Carbon Fibers Business Unit, SGL Carbon SE is increasing its Group sales and earnings guidance for the current fiscal year and now expects Group sales of approximately €1.2 billion (previously: approximately €1.1 billion). The company expects to achieve adjusted EBITDA (EBITDA pre = earnings before interest, taxes, depreciation and amortization before one-off effects and non-recurring items) of €170 - €190 million (previously: €130 - €150 million) in 2022.

Based on lower prices for acrylonitrile as main raw material of the Business Unit Carbon Fibers as well as higher than expected customer demand for acrylic and carbon fibers combined with consistently good production capacity utilization and capability, the management of SGL Carbon SE assumes an improved earnings development of this Business Unit.

SGL Carbon assumes that the factors mentioned will continue at least until the end of the year and that the earnings situation of the Business Unit Carbon Fibers will exceed previous expectations. Combined with the continued good business development of the other three Business Units (Graphite Solutions, Process Technology and Composite Solutions), an improvement in the sales and earnings situation at Group level is expected.

In line with the forecast increase for adjusted EBITDA (EBITDA pre) to between €170 and €190 million (previously: €130 - €150 million), the company is forecasting adjusted EBIT (earnings before interest and taxes and before one-off effects and non-recurring items) of between €110 and €130 million (previously: €70 - €90 million). The forecast for return on capital employed (ROCE) of originally 7% - 9% has been raised to 10% to 12% corresponding to the development of earnings. The expectations for free cash flow (significantly below previous year's level of €111.5 million) remain unaffected by the expected improvement in sales and earnings.

The updated forecast for fiscal 2022 has been prepared on the basis of the currently prevailing market environment and assumes no deterioration in the general conditions, in particular due to the war in Ukraine and its consequences for the global economy.
 
The definition of key figures used in this release is aligned to the Annual Report 2021. There were no changes in the scope of consolidation or accounting methods compared with the previous guidance.