Lenzing achieves best ever half-year results

Lenzing Group generated new records figures in the first half of the 2017 financial year for both revenue and earnings.

The key underlying factors were good capacity utilization, higher selling prices and an attractive product mix, said the Austria-based cellulosic fiber producer, adding that it will continue to focus on the implementation of the group’s sCore TEN strategy and further expand the offering of specialty fibers.

Consolidated revenue increased by 11% from the first half of the previous financial year to €1.15 billion. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose 38.8% to €270.7 million, corresponding to an EBITDA margin of 23.6% compared with 18.9% in the prior-year period.

Earnings before interest and tax (EBIT) increased by 57.4% to €204.2 million, resulting in a higher EBIT margin of 17.8% (H1 2016: 12.5%). The profit for the period improved by 58.9% to €150.3 million.

Lenzing registered strong demand for its fibers during the first two quarters, which led to continued high capacity utilization in all product groups. The market price index for viscose fibers was substantially higher than in the comparable period last year.

Chief executive officer Dr. Stefan Doboczky said: “Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement in 2017 compared to 2016.”

Lenzing aims to increase the share of specialty fibers as a percentage of revenue to 50% by 2020. Following expansions at Lenzing, Heiligenkreuz (both in Austria) and Mobile, Alabama (USA), the group has chosen Thailand as the next location for a state-of-the-art facility to produce Tencel lyocell fibers.

Lenzing is establishing a subsidiary in Thailand and purchasing a commercial property in an industrial park near Bangkok. A definitive decision on constructing the new production plant will be made in the first quarter of 2018, with completion scheduled for the end of 2020.

During the first six months of 2017, Lenzing launched EcoVero, a high-performance fiber with a favorable ecological footprint, and Refibra fibers, which combine pulp from scraps of cotton clothing and pulp from wood. The company also opened new sales and marketing offices in Turkey and South Korea.

In its outlook, Lenzing believes the wood-based cellulose fiber segment will again outpace the overall fiber market. Demand for these cellulose fibers was described as “very good” in the first half of this year, with the long-term trend pointing towards further growth in viscose and, above all, specialty fibers.

On the supply side, the market is not expected to see the entry of any notable new production capacity in 2017.

Demand for Carpets and Rugs in India to Grow 5.9% Annually Through 2021

Demand for carpets and rugs in India is forecast to grow 5.9% per year to 120 million square meters in 2021, expanding faster than any other major nation worldwide. Growth will be driven by strong gains in construction activity, expanding the size of the country’s building stock. In addition, growth will be boosted by increased urbanization and modernization, which will reduce the share of the building stock that has unfinished flooring. Market advances will spur growth in demand for all major carpet and rug types. Woven products will retain the largest share of demand, at 54% of the total in 2021. Low-end woven area rugs are often used in rural areas where purchasers may not be able to afford fully finished floors. These and other trends are presented in Global Carpets & Rugs Market, a new study from The Freedonia Group, a Cleveland-based industry research firm.

Through 2021, the strongest growth in carpet and rug demand in India will occur in the transportation market. According to analyst Elliott Woo, “This market more than doubled in size between 2006 and 2016, and will continue to expand rapidly as India’s motor vehicle industry flourishes.” Rising construction activity will boost demand in both the residential and nonresidential markets. However, the nonresidential market will advance faster, benefiting from high levels of investment in commercial projects, such as Gujarat International Finance Tec-City, an under-construction development intended to be a hub for international financial business.

Global Carpets & Rugs Market (published 08/2017, 283 pages) is available for $6100 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email pr@freedoniagroup.com.

Related studies include:

  • #3554 Nonwovens Market in the US, 7th Edition (August 2017)

About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Textiles & Nonwovens studies can be purchased at www.freedoniagroup.com, www.marketresearch.com and www.profound.com.

IVL To Acquire DuraFiber Technologies To Boost Automotive And Industrial Sectors

Global chemical producer Indorama Ventures (IVL) has entered into an agreement to acquire DuraFiber Technologies DFT México Operations, a producer of durable technical textiles for industrial, tire reinforcement and specialty applications.

DFT’s Querétaro plant in Mexico (co-sited with IVL Mexico) has an annual production capacity of 37,500 tons of polyethylene terephthalate high modulus low shrinkage (PET HMLS), PET heavy denier industrial and polyamide 6 fully integrated into tire cord fabrics and industrial textiles.

The company’s products are used in a wide range of applications, including reinforcement for conveyor belts, hoses, single-ply roofing, tents, automotive airbags, seatbelts, safety harnesses and ropes.

The transaction is expected to be completed in the third quarter of 2017, subject to the usual regulatory approvals, including approval by the Mexican Antitrust Commission.

Concurrently with this planned acquisition in Mexico, IVL has also agreed to acquire Longlaville DuraFiber Technologies, France, which has a capacity of 35,000 tons/year, again subject to a definitive agreement, relevant regulatory approvals and employee approval.

Aloke Lohia, IVL group chief executive officer, said: “The acquisition of DuraFiber is strongly aligned with our strategy of pursuing accretive growth opportunities in the high value-added (HVA) automotive segment.

“DuraFiber’s portfolio is a complementary fit with our current HVA tire cord fabric products in Europe and a strong fit with our existing PET site in Mexico.

“DuraFiber is a strong brand with recognized products with deep insights into the market, [and] combined with IVL’s global scale will enable us to better meet customers’ evolving needs.”

DuraFiber is the sole domestic tire cord fabric producer in Mexico with products approved by major global tire companies. The market is projected to have a compound annual growth rate around 6% over the 2017-2021 period.

“The automotive segment is a key growth driver in IVL’s HVA portfolio that will bring exciting developments to the company,” said Lohia. “While PET is still an important backbone for the company, HVA is now accounting for 50% of IVL’s core EBITDA.”

For more information contact:
Aloke Lohia, Group Chief Executive Officer
Indorama Ventures PCL
Tel: +66-2-661-6661
Email: info@indorama.net
Website: www.indorama.net

Growth For Antimicrobial Textiles Market To 2022

Rising consumer awareness of health issues along with enhancements in the standard of living in developing countries, such as India, China, Brazil and South Korea, are anticipated to boost the market for antimicrobial textiles to 2022.

Moreover, the increasing global population is forecast to escalate the incidence of infectious diseases, which is further expected to drive the sales of preventive products, such as antimicrobial textiles.

A new report* from Hong Kong-based GlobalInfoResearch presents an in-depth assessment of antimicrobial textiles, including enabling technologies, key trends, market drivers, challenges, standardization, regulatory landscape, deployment models, operator case studies, opportunities, future roadmap, value chain, ecosystem player profiles and strategies.

The publication also presents forecasts for antimicrobial textiles investments from 2017 to 2022. This study indicates which market segments stakeholders should focus on during the next five years to prioritize their efforts and investments.

These stakeholders include manufacturers such as Sanitized (Switzerland), Microban International (USA), Sciessent (USA), Milliken Chemical (USA), Dow Chemical (USA), Lonza Group (Switzerland), Trevira (Germany), Herculite Products (USA), LifeThreads (USA), PurThread Technologies (USA), Unitika Trading (Japan), BioCote (UK), BASF (Germany) and Vestagen Protective Technologies (USA).

* Global Antimicrobial Textiles Market By Manufacturers, Countries, Type And Application, Forecast To 2022, published July 2017, 120 pages.

For more information contact:
Tel: +852-5819-7708
Email: sales@globalinforesearch.com
Website: www.globalinforesearch.com

Paul T. O’Day, President & Counsel American Fiber Manufacturers Association Passed Away

The American Fiber Manufacturers Association (AFMA) is saddened to announce that long-time President Paul T. O’Day passed away on June 1st, 2017.

“This is a very difficult day for the entire AFMA family. Paul was not only a great man, but he was also a friend and confidante to so many of us in the industry,” stated Mark J. Ruday, current AFMA chairman. “As he would have wanted, Paul’s legacy and dedication to the fiber industry will live on through the continuation of the Paul T. O’Day Scholarship fund, which was set up three years ago to help students pursue a degree in a fiber related field.”

O’Day was appointed President of the Association in 1984. He was fiercely dedicated to the industry he loved for 33 years. A true gentleman and powerful intellect, Paul O’Day led the Association with a sophisticated wit and charm.

His government service included appointments as Deputy Assistant Secretary of Commerce for Trade Development, Executive Assistant to the Secretary, and other senior positions in the Commerce Department and the Office of the United States Trade Representative.

O’Day led the initial implementation of the multi-fiber arrangement (MFA), the international agreement which imposed quotas or quantity limits on Textiles and Clothing from Developing Countries, in force from 1974 until 2004. He played a key role in the creation of OTEXA, the Office of Textiles and Apparel, to monitor the MFA agreements, and the creation of the Committee for Implementation of Textile Agreements, comprised of representatives from Commerce, USTR, and OTEXA to insure administration and compliance of Bilateral Agreements.

He was key negotiator on Bilateral Agreements with Developing Countries under the auspice of the MFA ensuring realistic quota outcomes on sensitive items and was lead negotiator for fibers and yarns in the Uruguay Round, the most ambitious multilateral trade agreement in history, calling for elimination of all textile and apparel quotas by January 2004. O’Day was a lead negotiator in textiles and clothing in the NAFTA agreement, the first Free Trade Agreement with phase out of tariffs among partners, and was responsible for establishing a Yarn Forward Rule of Origin which became standard for all subsequent FTA agreements.

After a 50% plus decline in fiber and filament yarn production volume resulting from MFA phase out, O’Day redirected the mission of AFMA and added an Associate Member base of organizations with a significant commercial relationship to the sector and a new High Performance Fiber Council. AFMA membership grew from 15 members in early 1980s to 43 in 2017.