From the Sector

The Indorama Mobility Group, a manufacturer of industrial fibers, cords and fabrics, - like other companies - is confronted with significant inflation since the beginning of the year. The global economy has gradually recovered in 2021 from the impact of the COVID-19 pandemic, but is still experiencing very volatile market conditions: The global freight remains unreliable and expensive, cost for energy and global commodities is increasing, and the increasing focus on sustainability and environmental impact is driving compliance cost upward in most part of the world.

In detail:

• Utilities: gas price has tripled in the past few months in Europe (from a level of 15 EUR/MWh in Q4’20 to 45 EUR/MWh recently), while increasing by 50% in USA
• CO₂ emissions and compliance cost: prices for CO₂ certificates in Europe have almost doubled, approaching 60 EUR/ton from 30 EUR/ton at the end of last year, while regulations continue to expand the need for CO2 compensation
• Chemicals and additives (spinfinish, dip chemicals, coating & laminating chemicals): cost have increased by 5%
• Packaging: prices for standard packaging materials have increased by more than 30%
• Logistic: despite our local manufacturing footprint which is not fully affected by global freight issues, the regional logistic costs are also increasing up to 20% (road transport)

Despite constant efforts to optimise the cost structure through comprehensive initiatives to improve operations, cost increases have now reached a level, the group said, that can no longer be offset and must be passed on to the market. This is a necessary step to be able to continue supplying high-quality products and services of the broad product portfolio, it said.

As part of Suominen Corporation’s Half-Year Financial Report for January 1 – June 30, 2021 the company shared their insights and actions defined in their sustainability agenda.
A new Code of Conduct was launched in the beginning of 2021 and a mandatory training program about the Code will be start in the third quarter of this year.

Suominen is committed to continuously improving their production efficiency and the efficient utilization of natural resources. What active measures towards reducing energy consumption, greenhouse gas emissions, water consumption and waste to landfill are concerned, the commitment is to diminish them by 20% per ton of product by 2025 compared to the base year of 2019.
Offering a comprehensive portfolio of sustainable nonwovens and continuously developing new and innovative solutions with a reduced environmental impact, the target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year. During the first half of the year, nine sustainable product launches were made.

OUTLOOK FOR 2021
As announced on August 12, 2021 Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will decrease from 2020 due to the slowdown in the demand for nonwovens in the second half of 2021 as well as some continuing volatility in the raw material and transportation markets. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

• Textile Exchange report shows growth of preferred fiber and materials market needs to be accelerated
• With post-pandemic fiber production increasing, the transition to preferred fibers and materials must be a non-negotiable decision, notes Textile Exchange.

According to a new Textile Exchange report, the market share for preferred fiber and materials grew significantly in 2020. The Preferred Fiber and Materials Market Report 2021 outlines the market for plant fibers such as cotton, hemp, and linen; animal fibers and materials such as wool, mohair, cashmere, alpaca, down, silk, and leather; manmade cellulosics (MMCFs) such as viscose, lyocell, modal, acetate, and cupro; as well as synthetics such as polyester, polyamide, and more.

The report is a unique annual publication about global fiber and materials production, availability, and trends, including those associated with improved social and environmental impacts, referred to as ”preferred.” The comprehensive report includes quantitative data, industry updates, trend analysis and inspiring insights into the work of leading companies and organizations as they create material change.

The results show that between 2019 and 2020 the market share of preferred cotton increased from 24 to 30 percent and recycled polyester from 13.7 to 14.7 percent. Preferred cashmere increased from 0.8 to 7 percent of all cashmere produced while Responsible Mohair Standard certified fiber expanded from 0 to 27 percent of all mohair produced worldwide in its first year of existence in 2020. The market share of FSC and/or PEFC certified MMCFs increased to approximately 55-60 percent. While the market share of recycled MMCFs is only 0.4 percent, it is expected to increase significantly in the following years.

Brands’ increased interest in the use of preferred fibers and materials was also demonstrated by 75 percent increase in the total number of facilities (to 30,000) around the world becoming certified to the organization’s portfolio of standards in 2020. However, the report also notes that despite the increase, preferred fibers only represent less than one-fifth of the global fiber market. Less than 0.5 percent of the global fiber market was from pre- and post-consumer recycled textiles.

Indeed, global fiber production has almost doubled in the last 20 years from 58 million tonnes in 2000 to 109 million tonnes in 2020. While it is not yet clear how the pandemic and other factors will impact future development, global fiber production is expected to increase by another 34 percent to 146 million tonnes in 2030 if the industry builds back business as usual. If this growth continues, it will be increasingly difficult for the industry to meet science-based targets for climate and nature.

Textile Exchange aims to be the driving force for urgent climate action, and its Climate+ strategy calling for the textile industry to reduce greenhouse gas emissions by 45 percent by 2030 compared to a 2019 baseline in the pre-spinning phase of textile fiber and materials production, while also addressing other impact areas interconnected with climate such as water, biodiversity, and soil health.

The Turkish company ARIKAN Mensucat Industry and Trade Inc. was founded in 1993 and is located in Kahramanmaraş, one of the southernmost cities of the country. Today, the family-owned company employs around 1,500 people and finishes around 55 tons of knitwear every day. In addition to many well-known Turkish fashion manufacturers, ARIKAN also supplies international manufacturers in Europe, Russia, the Gulf States and other leading international markets.

The German machinery manufacturer BRÜCKNER supported the Turkish company from the very beginning. From the foundation of the dyeing and finishing plant, BRÜCKNER supplied three stenters for the finishing of the high-quality knitted fabric in 2014. Two more lines followed in 2016. For decades, BRÜCKNER has been the market leader for the finishing of knitted fabric. Especially for very fine and elastic fabric, special line configurations and technological know-how are necessary to be able to produce a high-quality end product. During the drying and heat-setting process, for example, extremely accurate and uniform temperature distribution over the entire length and width of the dryer is essential. In the BRÜCKNER stenter this is achieved, among other things, by the alternating arrangement of the thermal zones every 1.5 meters and by the proven split-flow air system.

The machine operators at ARIKAN appreciate the easy control of BRÜCKNER lines. The visualization is intuitively designed and offers many auxiliary systems for an optimized production process. In addition, significant energy savings can be achieved with just a few changes to the machine parameters.

The management at ARIKAN attaches great importance to energy saving, especially in the fabric finishing department. The drying process is one of the most energy-intensive in the entire process chain, therefore the biggest savings can be made here. These have a direct impact on the manufacturing costs of the textiles and thus on competitiveness in the market. In the meantime, talks are already in progress for another BRÜCKNER line which will include a very special feature: a combined heating system for the dryer. For many customers - and so also for ARIKAN in Turkey - e.g. steam energy is available free or very cheap. With the combined heating system developed by BRÜCKNER it is possible to use this steam energy for heating up the dryer and thus to achieve significant savings. If the available steam is not sufficient for a running process, it is automatically switched over to gas heating. This mode of operation does not only have an effect on the energy costs, but also makes a considerable contribution to environmental protection.

For the fourth time, the international start-up competition "Plan B - Biobased.Business.Bavaria." organised by BioCampus Straubing honoured the best new business ideas in the field of biobased solutions.

Dr Crnoja-Cosic, Director New Business Development, and Matthew North, Commercial Director, represented Kelheim Fibres at the award ceremony. The manufacturer of special viscose fibres has been working with the BioCampus Straubing for many years and is a supporter of the competition, this year as prize sponsors. In this capacity, Dr. Crnoja-Cosic congratulated the newly founded team of Microbify GmbH on their third place and presented them with a cheque for 3,000 Euros. As a spin-off from the University of Regensburg, Microbify works, among other things, on the use of old natural gas storage facilities for the production of green natural gas using extremophilic microorganisms.

Driving the change from a fossil-based to a bio-based economy is a declared goal of Kelheim Fibres - their speciality fibres replacing fossil materials in more and more applications. To this end, the fibre manufacturer seeks inspiration and exchange within its own industry as well as with innovation partners from outside the industry, start-ups and science in an open innovation approach.

• CO₂ emissions will be reduced by 320,000 tons per year
• First supplier of wood-based cellulosic fibers in China to completely eliminate coal
• Share in eco-responsible specialty fibers will be significantly increased
• Lenzing is strategically well on track with these investments

The Lenzing Group, the leading global supplier of wood-based specialty fibers, will invest more than EUR 200 mn in its production sites in Purwakarta (Indonesia) and Nanjing (China) to convert existing standard viscose capacity into environmentally responsible specialty fibers.

In Nanjing (China) Lenzing will establish the first wood-based fiber complex in China that is independent from coal as an energy source. By using natural gas based cogeneration, Lenzing will reduce CO₂ emissions at the site by more than 200,000 tons. At the same time a line of standard viscose will be converted to a 35.000 tons TENCEL™ branded modal fibers line making Lenzing (Nanjing) Fibers Co., Ltd a 100 percent wood-based specialty fiber site by the end of 2022.

In Purwakarta (Indonesia), Lenzing will reduce its CO₂ emissions by increasingly using biogenic fuels. Additional investments to reduce emissions to air and water will make this facility fully compliant with the EU Ecolabel by the end of 2022. That will allow converting standard viscose capacity into LENZING™ ECOVERO™ branded fibers for textile applications as well as LENZING™ Viscose Eco fibers for personal care and hygiene applications. As a result, the site in Indonesia will also become a pure specialty viscose supplier as of 2023.

Both investments are fully in line with Lenzing’s target to reduce its greenhouse gas emissions per ton of product by 50 percent by 2030. By avoiding or reducing the use of fossil fuels at the two sites, the Lenzing Group will be able to reduce CO2 emissions by more than 320,000 tons in total, or 18 percent, compared to 2017. In addition, this investment allows Lenzing also to reduce its total sulfur emissions by more than 50 percent, compared to 2019.

Together with its major lyocell fiber project in Thailand, Lenzing will also boost its share in specialty fibers as a percentage of fiber revenues to well above the targeted 75 percent already by 2023, which in turn is an important step towards achieving the company’s EBITDA target of EUR 800 mn by 2024.

At the 77th Annual General Meeting of Lenzing AG, which was once again held virtually on April 14, 2021 via livestream due to the COVID-19 pandemic, the members of the Managing Board and Supervisory Board were formally discharged from liability for the business year 2020. KPMG Austria GmbH Wirtschaftsprüfungs- u. Steuerberatungsgesellschaft was appointed to serve as the auditor of the annual financial statements and consolidated annual financial statements for the business year 2021.

Furthermore, the Annual General Meeting adopted the resolution on the compensation to be paid to Supervisory Board members as well as the principles underlying the remuneration of the members of the Managing Board. In addition to financial performance criteria, the remuneration policy of Lenzing AG regulating the multi-year, performance-oriented remuneration paid to the Managing Board members will also be linked in the future to non-financial sustainability criteria (ESG) designed to further promote the sustainable business strategy of Lenzing AG.

Fully on track strategically
The Managing Board of Lenzing AG presented the business development of the year 2020, a strategic outlook and sustainability strategy including the relevant roadmap to achieve climate targets to the participating shareholders. In 2019, Lenzing made a strategic commitment to reducing its greenhouse gas emissions per ton of product by 50 percent by the year 2030. The goal is to operate in a climate-neutral manner by 2050.

The substantial investments made in Thailand and Brazil not only support Lenzing in its transformation to a supplier of environmentally compatible specialty fibers but also comprise an important milestone on this journey which sustainably increases the company’s enterprise value.

The implementation of these two key projects is proceeding ahead as planned in spite of the direct impacts of the coronavirus crisis. The pulp plant in Brazil is scheduled to be put into operation in the first half of 2022 and will significantly increase Lenzing’s own in-house supply of dissolving pulp. Production in Thailand is expected to commence towards the end of 2021, further raising the share of eco-friendly specialty fibers in the Lenzing product portfolio.

New appointments to the Supervisory Board
Dr. Veit Sorger retired from the Supervisory Board of Lenzing AG on his request effective at the end of the Annual General Meeting. Veit Sorger had been a Member of the Supervisory Board since 2004 (also serving as Deputy Chairman since 2011) and served on various Supervisory Board committees.

The Annual General Meeting elected Dr. Markus Fürst, Managing Director of B&C Industrieholding GmbH, and Thomas Cord Prinzhorn, MBA, CEO of Prinzhorn Holding GmbH, to serve on the Supervisory Board until the end of the Annual General Meeting resolving upon the discharge of the Supervisory Board members for the business year 2024.

• Gorilla Protect is a new company formed in May this year to promote the Catus face mask – a major leap forward in the effectiveness of personal protection products that are available to consumers in the fight against Covid-19.
• Behind Catus and the new company is Nova Textil, the established fabric finishing company based in Grefrath, Germany, and now run by father and son team Rainer and Oliver Hurtz.

Single stenter

Rainer Hurtz founded Nova Textil with a single Monforts Montex stenter and just five employees in 1999 and has steered its constant development and growth over the past twenty years.

“Our initial focus was on the coating of mainly glass fibre fabrics, awnings and sun protection products for outdoor furnishings,” he said. “We had a great customer who was providing us with so many orders that by 2005 we took the decision to order a second Montex stenter, in a special configuration. This also allowed us to enter the market for blackout and digital printing fabrics. We’ve had a great ongoing relationship with Monforts from the beginning.”

A third Montex stenter line was installed at the company’s Grefrath plant in 2015, by which time the company had grown to 40 people and a major new market had opened up in the supply of fabrics for promotional materials at exhibitions and trade shows.

“We had a fantastic two years in 2018 and 2019 and everything was going great for the first three months of this year, but in April it all came crashing down,” said Oliver Hurtz. “Coronavirus put an end to trade shows in 2020, which had a very serious impact on our business.”

At the same time, however, the company was exploring the potential of a new biocidal product from one of its chemicals suppliers which has both antiviral and antimicrobial properties.

Filtration

“We had already been producing coated fabrics for hot gas filtration and realised that in combination with this new microporous coating we had the basis for a very effective single-layer face mask,” Rainer said. “Achieving this with a single layer product rather than the usual three has resulted in a significant advance in comfort for the wearer and because the mask is able to disinfect itself and helps regulate humidity, it can be worn a number of times without needing to be washed, for greater convenience. It only needs to be washed when it gets dirty and can also be washed up to twenty times without losing its properties, which has to be preferable to single-use disposables.”

Catus face masks are based on 100% woven cotton and the active ingredients in the finish are a reaction mass of titanium dioxide and silver chloride certified to ISO 20743 for their antibacterial effect, and to ISO 18184 for their antiviral effect.

They are proven to  eliminate over  99.99% of the human coronavirus 229 E, with the multiplication of microorganisms such as germs and bacteria prevented by the biostatic action of silver salts and viruses destroyed by oxygen-releasing substances and a mechanism that attacks their fatty envelope. The virus membrane loses its cholesterol content and the virus is inactivated.

Colours

Gorilla Protect next plans to make the masks available in four colours – black, Bordeaux, olive and grey – and is also working on colour branding and printing labels.

“It’s not possible to print on the surface of the mask after it has been coated, but its is possible for volume orders to be printed before the treatment,” Oliver Hurtz said.

“Face masks are going to become an established part of life in the West like they are in Asia and need to be as comfortable and convenient as possible for the wearer,” his father concluded. “With these things in mind, we believe Catus is a significant step forward.”

• Technical Absorbents Limited (TAL) has developed a new grade of superabsorbent fibre (SAF) specifically for use within a new range of SAF nonwoven fabrics that are more resistant to shrinkage.

The new SAF was developed in response to the demand from the medical industry for a superabsorbent fabric suitable for use in advanced wound pad dressings. The fibre had to be capable of withstanding the moisture used in the EtO sterilization process that is frequently employed in the production of the pads, in order to ensure product safety and compliance.

EtO sterilization is a low-temperature process (typically between 37 and 63°C) that uses ethylene oxide gas to reduce the level of infectious agents. While generally applied in gas form, however, the EtO is usually mixed with other substances – and often steam.

“Obviously superabsorbents and moisture generally aren’t a good combination at this stage in processing and can cause problems,” says TAL Product Development Director Dr Mark Paterson. “Other methods can be used, but when silicone materials are included, which is more frequently becoming the case, EtO is the preferred treatment method. Regular SAF grades tend to shrink a little and can become hard, which is often not desirable. This innovative SAF grade significantly reduces such potential problems.”

The amount of shrinkage caused by EtO sterilization depends very much on the product design and construction, he adds, but in general, the new SAF has been tested and proven to reduce fabric shrinkage by around 70%. It is suitable for use in all SAF nonwoven formats, whether needlepunched, thermally bonded or airlaid.

While the proprietary process developed at TAL for the production of this new fibre and resulting fabrics was prompted by the specific requirements of wound pad dressings, TAL sees opportunities for its application in other areas as well.

“It’s an extremely flexible fibre that can be easily switched with existing SAF grades when manufacturing fabrics and we have a number of current projects in which we’re exploring other end-uses,” Mark concludes. “We believe this new range could also open up entirely new application areas on the market.”

Shanghai - Sateri has signed the Fashion Industry Charter for Climate Action, becoming the first viscose producer in China to support this global fashion agenda. An initiative convened by the United Nations Framework Convention on Climate Change (UNFCCC), this charter calls on the fashion industry to support the goals of the Paris Agreement in limiting global temperature rise to well below two degrees Celsius above pre-industrial levels, by achieving 30 per cent aggregate reduction in greenhouse gas (GHG) emissions by 2030, including the supply chain.

Niclas Svenningsen, Manager of Global Climate Action, UNFCCC, said, “UNFCCC is excited to have Sateri joining the Fashion Industry Charter on Climate Action and committing towards global climate action as the first Chinese viscose producer to do so. We hope that it will inspire more textile companies from China to join and take action.”

As a signatory of the Charter, Sateri looks forward to participating in relevant Working Groups which bring together stakeholders and experts in the fashion and textile sectors. In recent months, Sateri has joined several other leading industry multi-stakeholder associations. These include the Sustainable Apparel Coalition (SAC), China Association of Circular Economy (CACE), and the European Disposables and Nonwovens Association (EDANA).

Allen Zhang, President of Sateri, said, “Sateri is committed to growing our business as sustainably as we can. Our adoption of the Fashion Charter goals is a bold leap but we believe that pushing the boundaries is necessary. We are also stepping up on our engagement with industry partners to be part of the collective action to accelerate efforts against climate change.  As we formulate Sateri Vision 2030 for a sustainable business, carbon reduction will be one of our key focus areas”.

In addition to stepping up greenhouse gas emission reductions in its own operations, the company will continue to support decarbonisation efforts of the downstream textile value chain. Late last year, in collaboration with the China National Textile and Apparel Council (CNTAC), a Climate Leadership Whitepaper was published. The paper analysed how innovation in Sateri’s EcoCosy® fibre products help reduce carbon emission during yarn and fabric manufacturing stages, and also proposed next steps in achieving industry-wide emission reduction goals.   

Sateri attained an ‘A-‘ score in CDP (formerly Carbon Disclosure Project) for Climate Change in 2019;  a score which is higher than the ‘C’ average globally, in Asia, as well as in the Textiles and Fabric Goods sector.