Terra Firma, Dowd & Guild, And Northspec Chemicals Create New Partnership

BALTIMORE, Md. — March 1, 2022 — Terra Firma is pleased to announce its next step in delivering a truly “bespoke” specialty chemicals distributor providing comprehensive sales coverage to the entire United States and Canada.

Dowd & Guild, based in Laguna Hills, Calif., and Toronto-based Northspec have joined Terra Firma through a partnership recapitalization. The principals of all three firms remain heavily invested through this recapitalization which allows for a true joining of forces, zero management exits, and no consolidation of offices. In addition, the assistance of our newest financial partner, Goldner Hawn, one of the nation’s oldest private investment firms, helps us move forward stronger than ever before. The combination of Terra Firma, Dowd & Guild, and Northspec further enhances our abilities to remain intensely focused on our customers’ formulary and logistical needs; helping to drive their growth objectives and success in the marketplace.

The adage remains true: the only certainty in life is change. Our name, Terra Firma, is Latin for “solid ground” and those two words define our mission statement. We endeavor to be that constant, amid a sea of change, to our incredible customers; best-in-class supply partners; and family of employees. This new partnership evolved not only from our collective desire to help meet the changing needs of our customers, but also those of our suppliers — many of which helped us reach this careful next step — and to thoughtfully address the changing dynamics in the specialty chemical distribution sector.

Terra Firma continues to grow organically by offering our supply partners options, not ultimatums. We know it remains ever important to offer choices when it comes to their channel partners. Our model will remain amenable to being utilized only where needed, and when. We humbly recognize the critical importance of remaining entrepreneurial and laser focused to continue providing the virtues that small businesses bring to the value proposition – key among them is the ability to deliver genuine organic growth on their behalf.

Tim Fetters, CEO of D&G, commented: “As distinct companies, Dowd & Guild, Northspec, and Terra Firma each have earned excellent market reputations through our technical focus and service-oriented approach that deliver value to our customers and suppliers. By bringing together our complementary cultures, expertise, strategies, and specialty chemical focus, we are creating a premier North American specialty chemical distribution company that collectively has over 140 years of industry experience and longevity. I am excited for the next chapter of this combined firm and the growth opportunities it brings to employees, suppliers, and customers.”

Northspec’s CEO, Noel Shahnazarian, remarked: “The creation of this new partnership signifies our collective commitment to growth while preserving the market-focused specialty business model that has made each company in this partnership successful. There is a shared understanding between Terra Firma, Dowd & Guild, and Northspec on what it takes and what is required to truly be a specialty chemical distributor. We are delighted to be part of this new partnership and we look forward to further expanding our value proposition this synergy will offer the market.”

“Joining forces brings us all to the next phase of our collective evolution while simultaneously demonstrating our commitment to this industry. We made this decision carefully; recognizing how critically important it is to maintain the unique DNA that our suppliers and customers have come to depend. With Goldner Hawn, we have found the perfect partner who shares a long-term horizon and fully supports our commitment to true organic growth. This new chapter builds on the meaningful dedication all three businesses have given to our industry and at the same time secures our place in the future. We endeavor to never lose sight of the past and those who made our success possible,” commented David Behan, CEO of The Terra Firma Co.

Posted: March 1, 2022

Source: The Terra Firma Company LLC

Gildan To Hold Virtual Investor Day On March 29, 2022

MONTREAL — March 1, 2022 — Gildan Activewear Inc. today announced that it will hold a virtual Investor Day on Tuesday, March 29, 2022, to provide an overview of the “Gildan Sustainable Growth” (GSG) strategy. The virtual event, scheduled to begin at 9:00 a.m. ET and to end no later than 12:00 p.m. ET, will include presentations from the senior management team and an interactive Q&A session. Participants should pre-register for the webcast at the following link: Gildan 2022 Virtual Investor Day. A live webcast of the event, as well as a replay, will also be available on Gildan’s company website at the following link: http://www.gildancorp.com/events.

Posted: March 1, 2022

Source: Gildan Activewear Inc.

IDEA®22 Exhibitor Preview: Avgol®

BANGKOK — March 1, 2022 — Avgol® Industries 1953 Ltd. will use this month’s IDEA22 to underline its commitment to helping customers meet their long-term sustainability objectives.

The company will highlight the latest work in biodegradation technology for polyolefin nonwoven fabrics at the Miami Beach event, showcasing its own range of component nonwoven fabric solutions. Together with its sister companies from Indorama Ventures Limited (‘IVL’) — who will be presenting biodegradation capable polyolefin and polyester fibers — Avgol will discuss with visitors how specific products can help businesses achieve their 2030 sustainability goals.

“We are delighted to have the opportunity to talk to regional customers, vendors and other industry leaders at the world’s preeminent event for nonwovens and engineered fabrics,” said Nick Carter, vice president of the Nonwoven Business Unit. “It is vitally important that we can engage with customers and gain additional insight into their own desired approaches to meeting sustainability objectives and show the synergy with our own technologies, logistics and production achievements.

“This is a fast-changing market right now, and with the impact of new legislation, raw material availability, evolving customer requirements and consumer interest, IDEA22 gives us the ideal opportunity to discuss these challenges in person,” he said. “We will present a holistic approach to sustainability with everything from our biodegradation technology and the use of more natural components, to introducing new materials with improved carbon footprint and recyclability.”

Working with its sister companies in IVL, Avgol has established its vision of innovating together for circular evolution. “At IDEA, we will not only be able to discuss our current and coming developments face-to-face, but will also outline our Innovation strategy addressing the degradation performance of our products, and the path forward for the industry in terms of the use of new bio-colorants, biosurfactants and other new technologies,” said Nick.

Visitors to booth #1404 will be able to speak with the Avgol experts about the latest developments in biodegradable solutions that can help deliver performance while also meeting their own sustainability objectives.

“We are looking forward to discussing the global challenge of eliminating incineration, chemical treatment, landfill, dumping and, in particular, fugitive material pollution from nonwoven products,” said Nick. “More importantly, we will demonstrate how we can meet these needs while continuing to deliver nonwoven fabric solutions with the performance and quality characteristics customers demand.”

Posted: March 1, 2022

Source: Avgol®, an Indorama Ventures Company

Avery Dennison Names Deon Stander President And COO

Deon Stander

GLENDALE, Calif. — February 28, 2022 — Avery Dennison Corp. today announced that Deon Stander has been appointed as president and COO, effective March 1, 2022.

Stander, 53, has been the vice president and general manager of the company’s Retail Branding and Information Solutions (RBIS) division since June 2015, where he led a significant transformation of the business. In addition, as Avery Dennison’s sustainability leader, he has served as a key architect in shaping the company’s sustainability strategy and partnering across the company’s businesses to develop and implement an ambitious roadmap. As COO, Stander will be responsible for the company’s global business operations, with all business unit leaders reporting to him. Mitch Butier continues as chairman and CEO

“Deon has led the remarkable transformation of our RBIS business, establishing a strong foundation for profitable growth, and he has been an excellent thought partner at the enterprise level,” Butier said. “He is highly respected throughout the company for his exemplary vision, and I look forward to our continued partnership. This appointment reflects the next evolution of our leadership capabilities that will enable our continued success over the long term, as we accelerate our strategies to deliver value for all of our stakeholders.”

Stander joined Avery Dennison in 2007 as part of the acquisition of Paxar, where he had worked since 2003. Prior to being named vice president and general manager, RBIS, he served in a number of roles of increasing responsibility in positions based in Europe, Asia, and North America. He received his MBA from Lancaster University, England.

Posted: February 28, 2022

Source: Avery Dennison Corporation

Online Voting Opens For “Best Of The Best” IDEA® Achievement Awards: Winners In Six Categories To Be Announced At IDEA® 2022 In Miami Beach

CARY, N.C. — February 28, 2022 — Online voting for the prestigious IDEA® Achievement Awards representing the “best of the best” innovations in the global nonwovens and engineered fabrics industry in six categories will open on February 28.

Industry professionals will have the opportunity to vote for the winners from the finalists and see award-winning achievements in person at IDEA® 2022, the World’s Preeminent Event for Nonwovens & Engineered Fabrics, March 28-31, at the Miami Beach Convention Center.

Presented by INDA, in partnership with Nonwovens Industry magazine, the awards recognize the leading introductions in equipment, raw materials, short-life, long-life and nonwovens products, and sustainability. To vote on the Nonwovens Industry website, visit: https://www.nonwovens-industry.com/idea-reg-achievement-awards

In addition, INDA will unveil the IDEA® 2022 Lifetime Achievement Award honoree and Nonwovens Industry will announce the IDEA® Entrepreneur Achievement Award recipient at the event.

All of the winners will be announced on March 30 at a ceremony at IDEA® from 9:30 a.m. to 10:30 a.m. moderated by Dave Rousse, President, INDA and Karen, McIntyre, Editor, Nonwovens Industry.

Finalists Named

The INDA Technical Advisory Board, consisting of technical professionals from member companies, has narrowed the competition from more than 100 online nominations to the following 18 finalists selected for their leading innovations since the last IDEA show in 2019.

Now, the industry will have the chance to select their top choices from the three finalists in each of the following six categories through the online voting process:

  • IDEA® Equipment Achievement Award
    • ESC-8 — Curt G. Joa Inc. — Imagine endless combinations of insert and chassis designs for adult incontinence production at the push of a button. With patent-pending ESC-8™ Electronic Size Change Technology, JOA has addressed the need for automated product size change. The release of this industry-leading, first-of-a-kind technology gives customers the flexibility to configure endless insert and chassis combinations while maintaining higher production speeds and minimizing raw material usage. The ESC-8 can be integrated into new and existing machines.
    • Elastic Thread Anchoring (ETA) Sonotrode — Herrmann Ultrasonics Inc. — Elastics are an integral component to many hygiene products. Imagine a diaper or incontinence product that is reliable, adhesive-free and extremely soft. Herrmann Ultrasonics Elastic Thread Anchoring (ETA) Sonotrode technology provides just that, in an industry first, easy-to-use closed-loop feedback manufacturing solution. The fixation of the elastic threads is accomplished with ultrasonic energy that offers a wide process window, without the need for tool changeovers, at processing speeds above 2,000 ft/min.
    • Doffer Airlay Card — Technoplants S.r.l. — With airlaying suction and a doffing system like traditional roller cards, the Doffer Airlay Card makes it possible to produce carded webs with doffer in thicknesses from 10 to 1.500 gsm. With top and bottom suction, it can produce a partly carded and partly airlaid web. This card can comb, separate and make parallel all types of natural, synthetic and regenerated fibers for applications including hygiene, filtration, medical and gradient acquisition distribution layer (ADL).
  • IDEA® Raw Material Achievement Award
    • sero™ premium hemp fiber — Bast Fibre Technologies Inc. — sero™ 100 percent premium hemp fibers are the result of years of the company’s top-to-bottom supply chain experience. BFT’s proprietary processing technology is employed to carefully clean, individualize, and soften bast fibers that meet stringent nonwoven technical standards and are plastic-free, tree-free, and compostable. sero fibers are a plug-and-play replacement for plastic fibers that run seamlessly on major nonwoven platforms without compromising production speeds, efficiency, or uniformity.
    • ODOGard — Rem Brands Inc. — Rem Brands Inc.’s patented ODOGard® technology is a revolutionary advancement in odor elimination. This next-generation odor elimination mechanism works by covalent molecular bonding to malodors. Malodors are permanently attached to the ODOGard molecule, changing them into non-odorous molecules forever. ODOGard can be impregnated into pulp fluff and other kinds of media. Whether  malodors come from the air or from hygiene products, ODOGard has it covered.
    • SharoWIPES™ — Sharon Laboratories — SharoWIPES by Sharon Laboratories, Israel, is a technological breakthrough from in-depth scientific research addressing industry needs for more “clean label, non-irritating, eco-friendly” consumer wet wipes. With their unique anti-biofilm mechanism, SharoWIPES offer dual protection from microbial contamination of both the wet wipe formula, as well as the non-woven fabric. SharoWIPES™ preservation systems deliver broad-spectrum protection at low levels contributing to wet wipe brand equity with free from, microbiome friendly, vegan and biodegradable claims.
  • IDEA® Short-Life Product Achievement Award
    • MDP™ — Dermasteel, Ltd. — MDP presents a breakthrough approach to restoring the quality of life for men experiencing bladder leakage. MDP is a revolutionary nonwoven product for men coping with light urinary incontinence that is invisibly discreet, effective, comfortable, and reliable. It features Body ID Technology™ for customized adjustment, variable elasticity strapping, self-reflexive side panels for unimpeded breathability, form-fitting to the unique characteristics of each man’s anatomy, and the smallest carbon footprint of any comparable male incontinence option.
    • Organic 2.0 — Ellepot A/S — In young plant propagation, plastic products are used in large quantities. Ellepot’s new paper is a game-changer supporting plastic exit strategies. During six years in development, Ellepot and Ahlstrom-Munksjö partnered with OrganoClick, the developer of special binders using organocatalysis, a field of chemistry awarded the Nobel Prize in 2021. The product is approved for organic crops in Germany, the UK, Denmark, The Netherlands, Sweden and Canada and certified okay home compostable and biodegradable in soil.
    • LifeSavers Wipes — LifeSavers LLC — LifeSavers Wipes are personal hygiene wipes that change color if they detect abnormal health indicators in the urine. The launch product is a diabetic wipe, which will change color if there are abnormal levels of glucose in the urine. The wipes are therefore triple purposed as they assist with personal hygiene after urinating, act as an early warning system, and serve as an instant glucose monitor. UTI and kidney disease wipes are next in line.
  • IDEA® Long-Life Product Achievement Award
    • Canopy Hero Pro — Canopy — Today’s reusable respirators are uncomfortable, limit communication, and can lose effectiveness after cleaning. Disposable options pose similar issues and generate waste. Canopy® has created a next-generation, reusable respirator for healthcare workers that’s comfortable, easy to clean, exceeds federal safety standards, has a transparent front to allow for improved communication, costs less than disposables, and can help save 7,200 tons of waste daily. Its patented, transparent, fully mechanical filter helps protect those who protect us.
    • Long-Life Cellulose-based Nonwovens for Higher Performance in Reusable Baby Diapers — Kelheim Fibres GmbH and Sumo Diapers — Innovation exemplified: the trend-setting Sumo Baby Cloth Diaper shows how needle-punched/thermobonded nonwovens find their way into reusable diapers, thanks to Kelheim Fibres’ specialty viscose fibers with adjusted cross-sections (trilobal and hollow). This technology pushes liquid management capabilities and the absorbency of washable hygiene products to new levels, creating a unique duality of high-performance and high-sustainability credentials, and opening up new fields of application.
    • Nanofiber Cabin Air Filter — MANN + HUMMEL GmbH — MANN+HUMMEL has developed a hybrid media by combining electret-based spunbond and a pure mechanical filtration layer of ultrafine polymer fibers. The result: an outstanding separation of PM1 particles up to 95 percent, according to DIN EN ISO 16890. This technology enables stable filtration performance and long-term efficiency over the whole filter lifetime. The nanofiber layer can be combined with any cabin air filter media of the MANN+HUMMEL range, improving air quality in a vehicle’s cabin significantly.
  • IDEA® Sustainability Advancement Award
    • Pureflow8 – In Flight Material Separator — Diaper Recycling Technology Pte. Ltd. — New bolt-on additions to the company’s Generation 8 recycling platform guarantee increased performance in terms of material purity and work efficiency. While recovering up to 87 percent of diaper waste raw material’s financial investment, DRT pushes the boundaries further to meet sustainability targets and include active pulp scanning, fluidizing SAP re-gen technology, and gravimetric pulp refeed processes. DRT recognizes its teams and suppliers who have worked tremendously hard to complete this major milestone.
    • Fitesa® 100 Percent BioBased Bico — Fitesa — Fitesa S Bico 100 percent BioBased PE/PLA is a technically sophisticated plant-sourced nonwoven that has been successfully applied in innovative baby diapers as topsheet, backsheet, and front ear components to deliver classic spunbond strength with good abrasion resistance and converting performance. It is responsibly sourced, PE soft, and sustainable, leaving a negative carbon footprint by reducing environmental CO2. It represents the next generation of hygienic nonwovens designed to make work easier and life better.
    • Fiber-based Screw Caps — Glatfelter Corp. and Blue Ocean Closures — Finally, an alternative to metal and plastic screw caps! Blue Ocean Closures partnered with Glatfelter and ALPLA to accelerate and produce sustainable and environmentally-friendly packaging solutions. The companies optimized their use of renewable and recyclable wood fibers and airlaid materials by creating paper-based screw caps that are durable, strong, and water-resistant. The method of proprietary vacuum press forming allows for low production cost and high scalability.
  • IDEA® Nonwoven Product Achievement Award
    • Sontara® Silk — Glatfelter Corp. — Sontara Silk perfectly fits facial contour, is luxurious on the skin, and has a minimal environmental impact. When infused with lotion, these masks have enhanced elasticity, conform closely to the skin, and have excellent adhesion. Sontara Silk has superior translucency and ensures even penetration of active ingredients onto the skin. Sontara Silk fabric is manufactured with premium fibers derived from natural raw material. These sustainable materials allow the product to be biodegradable and compostable.
    • HYDRASPUN® Aquaflo – Sustainable Nonwoven Substrates — Suominen Corp. — Suominen’s latest moist tissue product, HYDRASPUN® Aquaflo achieves dry tissue dispersibility through a proprietary blend of 100 percent sustainable cellulosic materials, minimizing environmental impact. This flushable nonwoven has a premium hand feel for a luxurious consumer experience. In addition, it passes dispersibility standards set by INDA (GD4) and the International Water Services Flushability Group (IWSFG.) HYDRASPUN® Aquaflo is produced in Europe and North America and represents multi-year development and market insights to deliver a personal care product ideal for today’s consumer.
    • LS SAF™ Nonwoven Fabrics — Technical Absorbents — Technical Absorbents developed a new grade of Low Shrink (LS) superabsorbent fiber (SAFTM) for use within a new range of nonwovens that are more resistant to shrinkage. The new LS SAFTM fiber and resulting fabrics were developed in response to demand from the medical industry for a superabsorbent nonwoven suitable for use in advanced wound pad dressings. The new fiber was engineered to be capable of withstanding the moisture used in the EtO sterilization process.

Moving forward after this year, the IDEA® Achievement Award will be presented every two years under the new cycle announced for the event with the subsequent IDEA® taking place April 23-25, 2024.

Posted: February 28, 2022

Source: INDA, Association of the Nonwoven Fabrics Industry

Standard Fiber Launches New Carbon Offset Initiative

BURLINGAME, Calif. — February 28, 2022 — Furthering its commitment to sustainability and minimizing environmental impact, Standard Fiber is launching a carbon reduction program where it will invest in carbon offsets for all cargo containers of textiles it exports from Asia to customers in the United States and 20 other countries around the world beginning in March 2022.

According to Standard Fiber, its carbon offsets will fund accredited carbon reduction programs such as protecting rainforest ecosystems from deforestation in Brazil and renewable energy programs on tribal lands in the US.

Standard Fiber’s new initiative builds upon the company’s robust material responsibility platform that includes organic cotton with GOTS or OCS certification, recycled fibers with GRS or RCS certification, bio-based foams with USDA Biopreferred™ certification, RDS down, Oeko-tex certified products, and packaging made with recycled materials. The company has also implemented more space-saving and cost-efficient means of shipping products around the globe.

“As a major textile supplier to the home and hospitality market, we must take responsibility for and do everything we can to minimize our environmental footprint,” said Sandy Gray, CEO, Standard Fiber. “Our new carbon reduction program will offset 100 percent of the carbon emissions of transporting thousands of cargo containers of textiles we export from Asia around the world.”

In addition to its carbon reduction efforts, Standard Fiber is embarking on an industry-leading textile circularity initiative where it will collaborate with hotel and healthcare operators to develop various second life channels to help divert these bulky textile items from landfill. Further information on these efforts will be announced this summer.

After many months of virtual meetings due to the pandemic, Standard Fiber is excited to be exhibiting at the following industry trade shows in taking place in Florida this month: BITAC® Luxury Live in Bonita Springs March 6-8; ISPA Expo in Orlando March 8-10; and Global Pet Expo in Orlando, March 23-25.

Posted: February 28, 2022

Source: Standard Fiber

DOMOTEX Will Take Place In January 2023

HANNOVER, Germany— February 28, 2022 — The next edition of DOMOTEX, a trade show for carpets and floor coverings, will take place in Hannover from January 12-15, 2023. The decision on the date in January 2023 was taken following intensive market discussions. DOMOTEX will be a face-to-face event with additional digital offerings. This means that all participants will once again have the platform they have been longing for, for networking and to exchange ideas on a personal level. Exhibiting companies and trade show guests from all over the world will be able to exchange information on new products and current trends in the industry – both onsite and virtually.

“With the new date of DOMOTEX in January 2023, we want to give the players in the carpet and floor coverings industry the greatest possible long-term planning security. We want to give our customers the opportunity to finally meet in person again, to be inspired and to forge new business relationships,” said Sonia Wedell-Castellano, global director DOMOTEX, Deutsche Messe AG, Hannover. “Having already had to cancel DOMOTEX twice due to the pandemic, we would have liked to give the industry its platform again this year. However, after intensive discussions with exhibiting companies, unfortunately a majority couldn’t be found for a late summer edition of DOMOTEX in September 2022. The preferred option of the entire market is to keep the usual date right at the beginning of the year.”

“It is particularly pleasing to see the approval already given by market-relevant exhibitors and global brands, who are eagerly awaiting the opportunity to finally meet the industry again,” Wedell-Castellano said. “Exhibiting companies and visitors can look forward to an extensive program with innovative ideas and digital offerings. To be able to meet the world of carpets and floor coverings live in Hannover again in January 2023 is a real highlight after all this time! We are looking forward to finally getting back on track with DOMOTEX in Hannover.”

Posted: February 28, 2022

Source: Deutsche Messe AG

The American Floorcovering Alliance Elects A New Board Of Directors And Temporarily Scales Back Operations

DALTON, Ga. — February 28, 2022 — The American Floorcovering Alliance (AFA) announced today the election of:

  • John Karr of ProdTek Inc. as president;
  • Paul Yacobucci of Piedmont Commercial Carpets as vice president; and
  • Nadeem Moughrabi of Polycom as Secretary/Treasurer.

After reviewing the impact the pandemic has had on AFA activities, notably FloorTek Expo participation in 2021 and the cancellation of Domotex/Hannover in 2021 and 2022 (where AFA sponsored the annual Georgia/U.S.A. Pavilion), the board voted to take the following steps:

  • Suspend all FloorTek Expo planning for 2022, looking to a resumption in 2023.
  • Downsize AFA office space by selling the current building at 210 W. Cuyler St., Dalton, Ga.
  • Survey the membership to ascertain how the AFA may better serve their interests in the future.

The AFA is a non-profit flooring industry advocate that traces its roots back to 1979 as the group that organized the first industry trade show (CMMA), held in Dalton, GA. In the 1990s, the emphasis shifted to showcasing floorcovering equipment manufacturers and helping members market their products overseas. During that time, the organization became a 501c3, and later in 2002, it became the American Floorcovering Alliance. The following year, its trade show for manufacturing was branded FloorTek Expo.

“We have a proud history of being an industry pioneer and showcase for 43 years and have helped put Dalton, Ga., on the map as the flooring capital for the world,” commented Stephanie Manis, executive director of AFA. “At this point, the board has wisely voted to step back and assess the direction of AFA, while at the same time being good stewards of its assets.”

Posted: February 28, 2022

Source: The American Floorcovering Alliance (AFA)

Carrington Textiles Launches New Educational Online Platform

ADLINGTON, United Kingdom — February 28, 2022 — Global workwear fabric manufacturer Carrington Textiles has launched its new Carrington Knowledge Hub, an online platform that aims to serve customers with highly technical textile content that’s shared in an easy to digest style, via a user-friendly site that can be accessed free from anywhere in the world.

The new Knowledge Hub was developed by the textile manufacturer to add value to the customer journey by providing educational support that will help keep the company’s stakeholders engaged and feel more empowered with the variety of industry knowledge on offer.

Highly categorized content in the form of videos, blog pieces, podcasts, white papers, and case studies; as well as the use of state-of-the-art technology, are the main attributes of the new Knowledge Hub, which also features ‘intuitive’ capabilities that understand the content visitors are interested in, so it can recommend similar resources for the user to engage with.

Sales Director Paul Farrell said: “We are proud to deliver our new Carrington Knowledge Hub, a tool that will help us at Carrington Textiles to share the vast understanding we — as a company — have of the complex workwear textiles market in a way that’s not overwhelming, yet remains highly technical, relevant and current.”

This first phase of the site features an easy to navigate menu with a simple yet sleek layout, that can be accessed either through the Carrington Textiles main website, or via the address hub.carrington.co.uk. The next phases will feature more advanced technology on categorization and password-protected content.

Posted: February 28, 2022

Source: Carrington Textiles

Indorama Ventures Reports Record FY2021 Performance As The Global Recovery Drove Volumes

BANGKOK, Thailand — February 28, 2022 — Indorama Ventures Public Co. Ltd. (IVL), a global sustainable chemical producer, today reported a record FY2021 performance as the economic recovery drove demand across the company’s global footprint. The company committed to being an industry leader in sustainability under its new ‘Vision 2030’ strategy.

Aloke Lohia, Indorama Ventures Group CEO, said: “In 2021 we proved the resilience of our global footprint and our integrated portfolio across the polyester value chain. The past two years were an unprecedented period of disruption in which our business model’s robustness and our teams’ agility were tested. Having reset our business plan for the ‘new normal’ era, I have never been more confident in our model, our strategy, and our teams. Under our Vision 2030, IVL is ready to take the next step in our journey as an industry sustainability leader”.

2021 Summary

In 2021, IVL delivered Core EBITDA of US$1,743 million (up 55% YoY) on production volumes of 14.72 MMT (up 7% YoY). Consolidated Revenue increased 38% YoY to US$14,629 million as consumer confidence rebounded and the company’s resilient model benefited from rising inflation, energy price hikes and supply chain shocks.

Macroeconomic tailwinds supported IVL’s performance, including government stimulus packages. In premium western markets, higher freight rates improved the company’s local import parity pricing advantage. In the fourth quarter, the introduction of China’s dual control policy widened polyester margins.

IVL’s largest Combined PET segment posted a 39% increase in Core EBITDA to US$1,103 million in the context of strong demand and low inventories. The resetting of PET contracts in 2022 is expected to capture higher freight rates and the consequent beneficial impact on import parity. The segment is expected to enjoy improved margins in 2022.

Integrated Oxides & Derivatives (IOD) recorded a Core EBITDA of US$377 million, up 228% from a year earlier. With higher oil prices expected to continue into 2022, the segment will continue to benefit from shale gas economics, improving MEG spreads, and upside from Lake Charles (IVOL) ethylene cracker, which resumed operations in late 2021. The Oxiteno acquisition, expected to close in H1 2022, will bring complementary products, green energy innovation, and geographical diversification to the IOD segment.

Fibers segment delivered a 37% increase in Core EBITDA of US$268 million as volumes rose 11%. Margins widened due to tighter markets and a favorable product mix, with setbacks coming from energy and commodity price increases, while the ongoing semiconductor shortage impacted the Mobility vertical.

Mr D K Agarwal, CEO and CFO at Indorama Ventures, said: “The performance was a result of a number of important macroeconomic factors, such as heightened crude oil prices, supply disruptions, and resurgent consumer confidence as vaccinations were rolled out in the pandemic’s second full year. These factors led to improved margins and benefited us as a preferred regional supplier that can react quickly to fulfill our customer needs. Our transformation programs that we started three years ago are also delivering efficiency gains faster than planned. As the world emerges from the pandemic, our increased confidence in IVL’s resilient model sets a strong foundation for further growth through 2024.”

Business Plan 2022-24

At IVL’s annual Capital Markets Day on 10 February 2022, the company announced its three-year business plan to leverage its global footprint, ongoing transformation initiatives, and high levels of integration across the company’s three business segments to drive earnings growth, extract efficiencies, and lift productivity.

IVL will continue to invest in its platform, its people, and strengthen systems to unlock its full potential to contribute to EBITDA growth and deliver our aspirational 15%+ ROCE by 2024. Disciplined capital allocation of about $5 billion of free cash flow will create opportunities to meet stakeholders’ expectations.

Project Olympus, the company’s efficiencies and business transformation project, is tracking ahead of 2023 budget, and the company raised its expectation to more than US$650 million in annual recurring EBITDA gains by 2024.

Vision 2030

IVL outlined its ‘Vision 2030’ ambition to grow organically with sustainability as its priority, guided by its new purpose statement: Reimagining Chemistry Together to Create a Better World. Vision 2030 progresses IVL’s journey towards ‘net zero’.

Under Vision 2030, IVL plans to invest in technology to capture carbon from its operations, increase renewable energy consumption, and phase out coal. It will invest more in PET recycling and introduce bio-based feedstock in about a third of its polyester-based value chain. Additional measures to future-proof the company include developing leaders with a growth mindset and empowering them with the right tools to lead.

Mr Lohia added: “2021 has proven IVL’s innate agility which has always allowed us to take advantage of periods of great change. The pace of disruption is now so much faster than it has ever been. Having reset our business for the ‘new normal’ era, it’s time to also reset our longer-term ambition and become a global industry leader in sustainability. More than 80% of our feedstock is polyester related, which is possible to be bio-renewable or circular. We are confident in our ability to deliver on our aspirational Vision 2030 that grows shareholder value under our purpose of reimagining chemistry together to create a better world.”

Posted: February 28, 2022

Source: Indorama Ventures

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