From the Sector

Breaking new ground in plastics recycling means assessing the value chain from end to end. The big opportunities for the future are in fine-tuning the individual process steps; from the collection of recyclable materials to the recycling process and the end product. This is where the cooperation of Lindner and the EREMA Group comes in, officially launched following the 50/50 founding of the holding BLUEONE Solutions in August 2023 to which shares of Lindner Washtech were contributed. The expertise of EREMA, a manufacturer of extruders and filtration solutions for plastics recycling and the largest company within the EREMA Group, has now been combined with the expert know-how from Lindner Washtech, a leading provider of all-in-one solutions for shredding, sorting and washing plastic feed materials.

Data transfer ensures more efficient recycling processes
Process control is an especially important aspect of plastics recycling, which is why standardising the process control system was what the two companies focused on first. "Together, we have developed a platform that allows data to be exchanged between the extruder and the washing system," says Manfred Hackl, CEO of the EREMA Group at IFAT in Munich. "This enables us to analyse the data more precisely so that effective improvement measures can be deduced." All key parameters are taken into account and monitored via a digital interface. For example, it is possible to use information relating to the current throughput of the EREMA Pre Conditioning Unit to optimise the washing process as soon as possible so that it can compensate for fluctuations in capacity and achieve a significant increase in output. This data transfer represents a new step on the roadmap to digitalization.

High efficiency due to smart energy management
"To ensure sustainable recycling, it is necessary to find the right process for each application and to make sure that the individual process steps are perfectly coordinated," emphasizes Michael Lackner, Managing Director of Lindner. Coordinating the process steps has already achieved initial success in energy management, and a clear example of this is heat recovery. "We use the latent heat generated during the extrusion process as an energy source for the washing and drying process," explains Lackner. "This enables our customers to sustainably reduce their energy costs and carbon emissions".

Making the most of synergies along the value chain
Synergies need to be used to establish the quality standards specified for each end application. "The key question is how we can improve the end product and increase the overall efficiency of the recycling process at the same time," agree Manfred Hackl and Michael Lackner. This will only work if companies work together along the value chain. The industry leaders can already point to several examples where together they have improved recycling processes and made it possible to move away from downcycling. "An example of this is the recycling loop of HDPE starting material, which is processed into high-quality, food-safe rHDPE pellets using our two technologies," says Lackner. Lindner Washtech and EREMA continue to work intensively together to develop strategies for upcycling plastics and increase recycling rates.

The Salvation Army has launched a Take Back Scheme Fashion campaign featuring stylish looks from their generously received clothing donations. As the largest charity owned textile collector in the UK, the Scheme is operated by the trading arm of the charity (SATCoL) who have partnered with some of the largest retailers and brands in the UK including John Lewis and Tesco.
 
The Take Back Scheme is the perfect way for people to support the fashion circular economy while shopping online or instore with their favourite brands.  The campaign invites the public to be part of a drive to reduce waste and extend the useful life of products.

The fashion forward campaign features a collection of garments styled by fashion stylist Karl Willet. Karl is known for his elegantly classic, yet contemporary vision and the images for this campaign nod to his classic styles that stand the test of time.

Karl works with celebrities from across the music/film industry including Paloma Faith, Jermaine Jackson and Geri Halliwell to name a few. Karl shared, “Styling looks with second-hand clothing is a fun and creative way to express your personal style. It’s important to embrace sustainability because not only does it reduce environmental waste, but it also encourages individual style and is affordable. The Take Back Scheme is a way to make a positive difference.”
 
The donated garments featured in the campaign, were specially chosen to reflect The Salvation Army colours of red, white and black, and the charity’s message of hope. SATCoL has made their Take Back Scheme even more accessible with 2 in-store offerings and 12 clothing banks available online, so customers can donate their unwanted items on the go. Each year, The Salvation Army collects around 65,000 tonnes of textiles, diverting them to good uses and raising funds.

The profits raised from the resale of these donations is given to The Salvation Army to continue their work across the UK.

From 20 to 22 July 2024, Innatex will once again host international green fashion labels presenting their collections for Spring/Summer 2025 at Messecenter Hofheim Rhein-Main near Frankfurt. The motto of the upcoming trade fair, ‘BLOOM’, emphasises the confidence in more sustainable solutions despite challenges in the green fashion industry.

The organiser is seeing an increase in enquiries from first-time exhibitors and design dicoveries who work with remnants or waste from the textile and other sectors. The summer fair aims to emphasise this form of circularity.

In keeping with this, three of the five Design Discoveries selected so far are located in the area of textile waste reduction. Tentation uses discarded tents to create modern, mostly outdoor-compatible pieces. While Halt.clothing stands for an innovative upcycling concept, the underwear label Avonté works with deadstocks. Softclox with flexible soles and the very feminine women's fashion Verlinne from Romania enrich the special area.

The trade fair is responding to feedback from buyers and, in cooperation with the Hesse Retail Association, is offering a special expert panel on the last day of the event to provide effective sales strategies. Innovative sustainable space concepts have been developed in collaboration with the Akademie Mode & Design AMD Wiesbaden. The students of the Interior Design degree programme use old materials from the INNATEX trade fair construction.

Vision and technology are the key ingredients of a ground-breaking school blazer that is showing how businesses can move to a circular textiles economy.  
 
While many brands are grappling with the complexities of inevitable legislation and engrained business models, leading school uniform producer, David Luke, has launched a fully recyclable ‘circular’ school blazer that is designed to be recycled through Project Re:claim, the world’s first commercial-scale polyester recycling plant.
 
Project Re:claim is a joint venture between the UK’s largest charity textile collector, The Salvation Army, and leading circularity specialists Project Plan B. The plant opened in the UK in January 2024, and presents huge opportunities for brands to transition to textile-to-textile manufacturing models.
 
David Luke’s circular blazer has been introduced to the brand’s successful Eco-uniform range which has sold over 1.7 million Eco-blazers in the last decade. Up until 2023, David Luke’s Eco-blazer, like many recycled garments, has been made from recycled plastic bottles. But the company has been working with Tim Cross, CEO of Project Plan B and the Circular Textiles Foundation, to bring the 100% recyclable blazer to market.
 
Tim Cross said: “David Luke has grasped the opportunity to embed 100% recyclable and 100% recycled garments into their range, starting with the school blazer. We now have the technology to enable their blazers to be recycled without any separation of the garment, making it an efficient recycling process. The team at David Luke has worked tirelessly with their manufacturers to create a blazer that does not compromise on design or quality, and yet is much kinder to the environment.”
 
Every detail from the lining, buttons and zips to the inter-linings and adhesives, has been re-thought and re-designed to meet the demands of an everyday school blazer and to recycle the garment once it reaches its end-of-life. Up until now, when the blazers have eventually been handed down to siblings, or given to the local charity shop, there had been no end-of-life solution for polyester garments apart from incineration. Now, Project Re:claim can recycle the blazer to produce polyester pellets, which are then spun into yarn to be used for future David Luke circular blazers.
 
Cross continues: “David Luke has the vision to create a fully circular range, and we have the potential to supply recycled content. The possibilities are infinite in terms of the future of garment design and manufacturing.”
 
Kathryn Shuttleworth, Chief Executive of David Luke, said: “It is a natural next step for us to transition to a textile-to-textile model. We have been producing garments using recycled plastic bottles for 15 years, but we have always had an eye on developments in textile recycling and solutions for end-of-life garments.”
 
In 2020, David Luke was awarded the Queen’s award for Enterprise for Sustainable Development and in January 2023 the David Luke circular blazer achieved Circular Foundation Textile certification.
 
Shuttleworth added: “Our focus will always be on those essential ingredients for parents and children - style, durability and affordability. But we have a responsibility to change our business model to better protect children’s future and the environment. It has become our obsession to make uniforms that meet our customers’ demands. We are really excited about the future as we continue to develop our range.”
 
Majonne Frost, Head of Environment and Sustainability for Salvation Army Trading Company, said: “Our vision is to enable companies to produce uniforms, corporate wear, fashion garments and textile ranges using recycled polyester.  We have the infrastructure to collect donations at scale and we now need companies to step up. This is an opportunity for companies to make a commitment to significantly reduce their environmental impact, and David Luke are showing us how that is possible.”

INDA, the Association of the Nonwovens Fabrics Industry, announces the publication of the eleventh edition of the annual North American Nonwovens Supply Report.  

Based on extensive research, producer surveys and interviews with industry leaders, this report provides a comprehensive view of the North American supply of nonwoven materials including the key metrics of capacity, production and operating rates, and regional trade through 2023.

The Executive Summary from annual Supply Reports, the quarterly INDA Market Pulse and monthly Price Trends Summary are provided to INDA members on a complimentary basis as part of their membership. The data gathered for this annual report serves as the foundation for both the biennial Global Nonwoven Markets Report to be published in October 2024 and the biennial North American Nonwovens Industry Outlook, which was published in October 2023.

Findings from this year’s Supply Report include:

• North American capacity continues to increase with investments being made across all processes and for a variety of end-uses. Production output is shifting and has slowed down in 2023 to reflect larger machine installations just now coming on-line.
• In 2023, the capacity of nonwovens in North America reached 5.713 million tonnes, an increase from the previous year of over 230,000 tonnes.
• Many new nonwoven production lines were installed in 2023, but mostly in the long-life sectors which shows a positive move towards sustainable goals across the board.

• 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.

Indorama Ventures Public Company Limited, a global sustainable chemical company, announced that MSCI awarded the company an upgraded ‘AA’ from ‘A’ rating, ranking it in the ‘Leader’ category for its Environmental, Social, and Governance (ESG) performance towards achieving its ongoing sustainability goals and commitments.

Morgan Stanley Capital International (MSCI), a provider of research-driven indices and analytics, ranked Indorama Ventures among the top 12% of 57 global companies in the commodity chemicals sector. This upgraded rating illustrates Indorama Ventures’ performance to exceed industry peers while minimizing its environmental footprint.

London Marathon Events (LME) partnered with the Salvation Army Trading Company (SATCoL), the trading arm of The Salvation Army, to collect discarded participant clothing at its event in London. On 21st April The Salvation Army collected a record 18.9 tonnes of clothing from the mass participation event.

Salvation Army volunteers and helpers supported to collect clothing discarded by participants prior to the Start line. The clothing was transported to The Salvation Army’s processing centre in the East Midlands for sorting and distribution to be resold, reused or recycled.

The profits that the Salvation Army Trading Company raise, is donated to The Salvation Army to continue to support the work they do across the UK.

The scheme is one of LME’s new sustainability initiatives for 2024 aimed at reducing the environmental impact of its events, with a particular focus on lowering carbon emissions, cutting waste and improving circularity.

The Salvation Army team will continue with the clothing collections at the following events this year:

• Ford RideLondon on Sunday 26 May
• The Big Half on 1 September
• The Vitality London 10,000 on 22 September
• The Royal Parks Half on 13 October

• 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.

• Continued growth in the semiconductor business
• Weak demand for carbon fibers further impacts Group sales and profitability
• Group sales down slightly at €272.6 million (-3.9%), adjusted EBITDA up 5.0% to €42.1 million
• Adjusted EBITDA margin at 15.4% after 14.1% in the same quarter of the previous year
• Outlook for 2024 confirmed

SGL Carbon had a solid start to the first quarter of 2024. Despite the slight decline in sales of 3.9% to €272.6 million (Q1 2023: €283.7 million), adjusted EBITDA improved by 5.0% to € 42.1 million (Q1 2023: € 40.1 million). Weak demand in the Carbon Fibers business unit in particular have a negative impact on the Group's sales and earnings performance. By contrast, slightly higher sales and, especially, the increase in adjusted EBITDA in the Graphite Solutions and Process Technology business units had a positive effect on the Group's performance.

Outlook
In line with the course of business in the first three months of 2024, the company confirms its sales and earnings outlook for the 2024 financial year. Consolidated sales for the 2024 financial year are expected to be at the previous year's level and adjusted EBITDA between €160 million and €170 million.