High Point Textile Company Culp Leads Community In Donation Drive For Haiti Earthquake Relief

HIGH POINT, N.C.  — August 20, 2021 — Culp Inc., a textile company with deep roots in High Point’s furniture industry, is leading a community-wide “Hands in for Haiti” donation drive to help the victims of the recent earthquake in Haiti. CULP has production facilities in Ouanaminthe, Haiti. While the earthquake occurred in another region of the country and did not result in any damage or harm to the company’s facilities or employees, many CULP employees have family members who have been affected by the disaster.

“At CULP, our associates across all of our global operations are family, and we are committed to serving the communities where we operate,” commented Iv Culp, president and CEO of Culp Inc. “As a company, we have the logistical capability to get supplies to Haiti and support the earthquake relief effort. Collectively, our actions are powerful. It is our hope that working with the generous people of High Point and the surrounding communities, along with many great businesses and organizations, we can all put our ‘Hands in for Haiti’ and help those affected by this tragedy.”

The supplies needed by the Haitian people are:

  • Non-Perishable Food;
  • Blankets;
  • Toothbrushes/Toothpaste;
  • Water;
  • Bandages/First Aid;
  • Toilet Paper;
  • Clothes/Shoes;
  • Soap;
  • Deodorant;
  • Work Gloves;
  • Shampoo/Toiletries; and
  • Liquid Laundry Detergent.

CULP is grateful to the following businesses and organizations that have agreed to help support this relief effort:

  • High Point Rockers Baseball;
  • Congdon Yards;
  • United Way of Greater High Point; and
  • Business High Point Chamber of Commerce.

In addition to serving as a donation site, the High Point Rockers will also be hosting a fundraising night at the ballpark. When the Rockers play the Gastonia Honey Hunters on Thursday, September 2, a portion of online ticket sales will be donated back to CULP’s “Hands in for Haiti” program for the Haiti earthquake relief effort. When fans use a ticketing link created specifically for the game, $3 from every ticket sold using the link will be donated.  To purchase tickets, fans can go to www.highpointrockers.com. The link will be posted and be active the week of August 23rd.

Pete Fisch, president of the High Point Rockers, remarked, “We are happy to help with such a worthy cause, and being able to include our incredible Rockers fans makes it even more meaningful.”

“This humanitarian effort is yet another testament to the CULP mindset of helping others,” stated Jane Liebscher, president of United Way Greater High Point. “We are grateful for the opportunity to extend a helping hand to help those impacted.”

The community-minded spirit was also reflected in comments by Rachel Moss, chief operating officer of the Business High Point Chamber of Commerce. “We are honored to assist with this effort and know the generosity of our area citizens will be overflowing,” said Moss.

If your business or organization would like to participate in the “Hands in for Haiti” earthquake relief effort, please contact Jenny Barnhill at Culp, Inc., email: jrbarnhill@culp.com.

Donations will be accepted at the below listed sites through Friday, September 3rd. You can also donate online at:  https://www.amazon.com/hz/wishlist/ls/3CLYON6R3FBI2?ref_=wl_share

Donation sites are located at:

  • Truist Point – Home of the High Point Rockers – 303 Gatewood Ave., High Point, NC 27262
  • Congdon Yards –  400 W. English Rd., High Point, NC 27262
  • United Way of Greater High Point – 815 Phillips Ave. High Point, NC 27262
  • Business High Point Chamber of Commerce – 1634 N. Main St., High Point, NC 27262
  • Culp, Inc. Corp. Headquarters – 1823 Eastchester Dr., High Point, NC 27265
  • Culp Cut & Sew – 1150 Silver Ct., High Point, NC 27265
  • Culp Home Fashions – 7209 Hwy. 158 E., Stokesdale, NC 27357
  • Culp Design Center – 2900 Tucker St., Suite 103, Burlington, NC 27215

Posted August 20, 2021

Source: Culp Inc.

Thai Acrylic Fibre Co. Ltd. (TAF) Launches Digital Traceability For Radianza™ Fibre

BANGKOK — August 10, 2021 — Thai Acrylic Fibre Co. Ltd. (TAF) — a part of Aditya Birla Group — has launched a digital traceability platform to trace its flagship fiber brand Radianza™. This digital platform backed by Blockchain technology will ensure complete transparency and traceability for brands, retailers and consumers of Radianza fiber in the finished garment. The platform has been developed by Canada-based company Licof Inc.

Radianza fiber, that uses the revolutionary gel-dyeing technology, has recently become the first and only acrylic fiber to have Material Sustainability Index (MSI) Scores published by Higg Co. based on the Life Cycle Assessment Impact study conducted by Thinkstep (now Sphera). Earlier this year, the TAF become the first and only acrylic fiber company to become a bluesign® SYSTEM partner. The traceability platform will further strengthen the company’s leading position in sustainability in textiles. “Brands and retailers are making efforts to bring more transparency about their value chain and are developing capabilities to track and trace the raw material from its source to the end-garment. This is, particularly important for those materials that are being claimed as sustainable. Now that our customers are developing end-products with Radianza with a better sustainability index, it was the right time for us to introduce the digital platform to trace the fiber easily through the value chain”, says Tuhin Kulshreshtha, head of Marketing, Value Added Products, TAF.

Highlighting the effectiveness of Blockchain in textile tracing, Ritesh Khare, founder of Licof added: “Blockchain is a very powerful technology, especially for those at the end of the value chain like brands and retailers to validate the authenticity of the materials they are sourcing in a complex value chain like textile and apparel. Blockchain makes digital tracing and tracking immutable, while a user-friendly platform makes it very easy for the value chain players to collaborate and share relevant information. We are very excited to collaborate with TAF and support them and their customers trace Radianza and other specialty fibers.”

Posted August 19, 2021

Source: Thai Acrylic Fibre Co. Ltd. (TAF)

lululemon Partners With Sustainable Materials Innovator Genomatica To Bring Bio-Nylon To Products

VANCOUVER/SAN DIEGO, Calif. — August 18, 2021 — lululemon athletica inc. today announced a multi-year collaboration with sustainable materials company Genomatica to bring renewably-sourced, bio-based materials into lululemon’s products. This represents lululemon’s first-ever equity investment in a sustainable materials company and Genomatica’s largest partnership within the retail industry. Together, the two companies will create a lower-impact, plant-based nylon to replace conventional nylon, which is the largest volume of synthetic material currently used to make lululemon products.

Genomatica uses biotechnology and fermentation to convert plant-based ingredients into widely used chemical building blocks, like those used to make nylon. These building blocks are converted to pellets and yarns, and the companies will be working closely with lululemon’s fabric supply chain to incorporate this material into future products Through this collaboration, the companies seek to create positive change within the $22 billion global nylon market by building more sustainable supply chains.

Calvin McDonald, CEO, lululemon said: “Our partnership with and investment in Genomatica demonstrates our commitment to be a leader in creating products that help build a healthier future for ourselves, for our communities and for our planet. Genomatica’s bio-based innovations, along with their distinctive track record of successful commercial applications, will help us deliver on our Impact Agenda goals to make 100% of our products with sustainable materials and end-of-use solutions by 2030, as we move toward a circular ecosystem.”

“We are proud to partner with lululemon, a company that is taking meaningful action to help address our climate crisis,” said Christophe Schilling, CEO of Genomatica. “The combination of biotechnology, fermentation and renewable feedstocks can provide a powerful means to disrupt the apparel industry through sustainable sourcing. This unique collaboration will help meet increasing consumer demand for more environmentally friendly products and set an example for consumer brand owners worldwide.”

Patty Stapp, vice president, Raw Materials, lululemon, said: “Replacing the petrochemicals that make up many popular materials with more sustainable alternatives is a major step forward in reaching our Impact Agenda goals. By transitioning our nylon to renewable content, we will impact over half of the synthetic materials we use in our supply chain. We have seen Genomatica repeatedly and successfully deliver industry-changing bio-based materials at commercial scale and are confident this partnership can truly change the way we source products, while continuing to provide the exceptional quality we are known for.”

In October 2020, lululemon released its first-ever Impact Agenda, outlining ambitious social and environmental goals and multi-year strategies toward a more equitable, sustainable, and healthy future. The collaboration with Genomatica is one of the many ways lululemon is bringing new, sustainable innovation to its raw materials. Additional examples include the company’s partnership with Mylo, to use a mycelium-based leather, and LanzaTech, for polyester made using recycled carbon emissions.

Posted August 19, 2021

Source: Genomatica/lululemon athletica inc.

Austrian Textile Producer FEINJERSEY Finds Success With German Textile Machinery Manufacturer BRÜCKNER’s Technology

LEONBERG, Germany — August 19, 2021 — The Austrian textile producer FEINJERSEY and the German textile machinery manufacturer BRÜCKNER are connected by a long-standing partnership. Both develop and produce in Austria and Germany respectively, have a high competence in their field and offer their customers quality and first-class service.

The Feinjersey Group is an internationally operating textile company and supplies the “global players” of the textile industry worldwide. The value chain of the company, which is based in Götzis, Austria, ranges from yarn processing to the finished product. As a fully integrated production company, Feinjersey attaches great importance to high quality standards and guarantees the utmost care in every step of the process chain. With approx. 250 employees and annual sales of around 45 million euros, the company knits, dyes and finishes top-quality knitted fabrics as well as elastic woven fabrics for a wide range of applications.

End products include functional underwear for fashion and sports, professional workwear, light and luxurious day and nightwear, shapewear, children’s clothing and much more. Feinjersey is also active in the technical textiles sector. Among other things, fabrics for the automotive industry, laminating backings and coating substrate for artificial leather or foils, construction textiles or fabrics for medical technology are all produced.

Modern machinery used at Feinjersey ensures efficient use of resources. Water and energy consumption as well as pollutant emissions must be reduced to a minimum — this is firmly anchored in the company’s philosophy. For this reason, the Austrian textile manufacturer has been certified with the Bluesign textile seal. Bluesign is a sustainability standard that covers the entire production chain of textile products and sets strict criteria with regard to the resources used. In textile finishing in particular, the focus is on minimizing energy consumption as this process is the most energy-intensive in the entire process chain. For this purpose, Feinjersey uses its own photovoltaic system as well as heat-recovery and exhaust air purification systems on all their tenters. By using the excess heat from production, the company’s buildings are heated.

All six tenters at Feinjersey are made by BRÜCKNER and are equipped with three-stage heat-recovery and exhaust air purification systems, some running for more than 20 years. This shows very clearly the innovative strength of the company. For many years, Feinjersey has taken environmental aspects into account when equipping the production, which is paying off for them today.

The latest BRÜCKNER line has a working width of 4.20 m and is mainly used for the finishing of highly elastic and extremely sensitive knitted fabric. In order to avoid yellowing on the fabric, the tenter is equipped with an indirect gas heating system. The knitting oil vapors coming from the fabric during the heat-setting process are extracted from the dryer and cleaned in a BRÜCK-NER ECO-AIR exhaust air cleaning system before being extracted to atmosphere. The complete exhaust air treatment on the newest stenter is carried out by a multistage BRÜCKNER ECO-HEAT and ECO-AIR system.

The first stage is an ECO-HEAT heat-recovery system air/air. Here, by means of 12 plate heat exchangers, the exhaust air heat is transferred to fresh incoming air which is pre-heated and then fed into the tenter for the drying process. This increases the drying capacity and reduces energy consumption. Exhaust air pollutants generated during the heat-setting process cause thin, hard deposits to form on the heat exchangers over time. The integrated, automatic steam cleaning system keeps the heat exchangers in good working order. Every few weeks, the handy heat exchanger modules are simply removed for basic cleaning and replaced with clean replacement modules. The dirty heat exchanger modules are efficiently cleaned in an ultrasonic cleaning bath, as the units automatically programmed steam cleaning process cannot keep the heat exchangers 100-percent clean during heat-setting processes. After ultrasonic cleaning the modules can be used again with full heat output being achieved and the complete heat output being used sustainably.

The second stage is an ECO-AIR exhaust air scrubber fulfills two important tasks at the same time: it cools the exhaust air and binds oily pollutants in water. Thanks to a sophisticated design of the exhaust air scrubber, only about 1 cbm of wastewater is produced per week. The oil-containing substances extracted from the exhaust air are separated from the water by an oil skimmer and disposed of separately. An ECO-AIR electrostatic precipitator is installed as a third stage, which separates the finest aerosols from the exhaust air after the air scrubber. Thus also the visible smoke above the outdoor stack disappears and the exhaust air smell is reduced to a minimum.

Due to this proven BRÜCKNER exhaust air treatment system, the company Feinjersey can safely comply with the prescribed emission limits. The investment expenditure as well as the operating costs are clearly lower compared to other processes such as e.g. thermal afterburning systems.

Posted August 19, 2021

Source: Brückner Trockentechnik GmbH & Co. KG

Teijin’s Sustainable Commitment

TOKYO — August 18, 2021 — Teijin Ltd., which treats climate change as one of its greatest concerns, has been taking measures to combat this trend since the early 1990s, longer than most companies in related industries. Teijin’s current medium-term management plan for 2020-2022 positions climate-change mitigation and adaptation as a material and top-priority issue. Teijin has and will continue to initiate important new systems and targets related to climate change under its long-term vision to be a company that supports the society of the future.

Holistic approach to sustainability

Teijin raised the target for reducing its total groupwide CO2 emissions by 30 percent, from the 20 percent announced in 2019, as of fiscal 2030versus fiscal 2018. The company also is targeting net zero emissions by fiscal 2050. As to CO2 emissions throughout its supply chain, the goal is for avoided emissions — realized through use of Teijin’s climate-positive products and practices — to exceed the group’s amount of actual emissions, including in its upstream supply chain. Accordingly, the company introduced a group-wide internal carbon pricing (ICP) system that creates economic incentives to reduce CO2 emissions by quantifying them as monetary costs in capital investments. This enables such costs to be factored into investment decisions, ultimately to help reduce the Group’s CO2 emissions.

Also, Teijin has proclaimed its commitment to the Science Based Targets initiative (SBTi), an initiative supported by CDP and the United Nations Global Compact. The initiative aims to encourage companies to future-proof growth by specifying how much and how quickly they need to reduce their carbon emissions. The aim is to help meet the Paris Agreement’s goal of limiting global temperature rises to well below two degrees Celsius above pre-industrial revolution levels. In the SBTi commitment letter Teijin submitted on January 25, the company stated its intention to satisfy SBTi criteria within two years.

Teijin also supports the Japan Climate Initiative (JCI), which earlier this year called for Japan to raise its official greenhouse gas emissions-reduction target for 2030 from 26 to at least 45 percent, and also to increase the country’s ratio of renewable-energy usage to 40-50 percent (all compared to 2013). And indeed, at the Leaders Summit on Climate this past April, Japanese Prime Minister Yoshihide Suga declared that Japan would raise its target to 46 percent.

Furthermore, earlier this year Teijin established the European Sustainable Technology Innovation Center (ESTIC) to develop technologies for a more sustainable world. ESTIC now operates two sites in the Netherlands for cross-border collaborations, thereby strengthening development initiatives among Teijin’s various business units. ESTIC’s goals include the development of new green materials, reducing CO2 emissions and stimulating hydrogen-based economies.

Such efforts by Teijin have earned the praise of evaluation agencies including S&P, MSCI and FTSE, and this has led to Teijin being included in various sustainability indexes.

According to Shuichi Osaki, Teijin’s Deputy CSRO for SDGs Promotion, “The Teijin Group is constantly on societal challenges as part of pursuing its long-term vision. Implementing all possible measures in this regard is a condition for our survival. As a chemical company, we are taking a thorough, step-by-step approach, but with the intention of achieving our long-term goals as quickly as possible. In 2025, when we plan to review the state of progress toward achieving our 2030 targets, at which time we are likely to implement even more robust environmental measures and further raise targets that we believe are possible to achieve ahead of schedule.”

Posted August 19, 2021

Source: Teijin Group

The American Floorcovering Alliance (AFA) Inaugural FloorTek Open Scholarship Fund

DALTON, Ga. — August 18, 2021 — In effort to inspire and support students with interest in the flooring industry, AFA has created the FloorTek Open Scholarship Fund. One impressive student will receive a scholarship funded by this year’s FloorTek Open golf tournament to be held September 13, the day before the official start of the show.  Students are invited to walk the floor of the expo to view products and industry innovations on display.

Those who wish to apply for the scholarship award can create an original essay highlighting the product they found most innovative and how it can is beneficial to the future of floorcovering. Essays can be submitted through the form on our Future Connections webpage. The AFA board of directors will review all submissions and select a recipient for the award.  Winner will be announced at the AFA annual meeting in October.

Future Connections At The Expo

For those interested in attending, Future Connections is a networking event in conjunction with the FloorTek Expo. AFA has partnered with universities including Dalton State College/Wright School of Business, Shorter College, Chattanooga State, and Georgia NorthWestern to bring the future of the flooring industry this unique opportunity for networking in which students can submit resumes for immediate and future opportunities in the industry, and industry players can scout talent from the area’s best and brightest students.

AFA invites companies who are seeking quality candidates to fill open careers within their company to come out and participate by setting up a free table during Future Connections.  The companies can speak with these students, accept applications, and see what the next generation is bringing to the industry.

All area students who participate in the Future Connections portion of the expo are invited to apply for FloorTek Open scholarship. We believe in the future of flooring, and we think these students are a vital piece of the puzzle.

Posted August 19, 2021

Source: The American Floorcovering Alliance (AFA)

Coloreel Appoints Torbjörn Bäck New CEO

JÖNKÖPING, Sweden — August 19, 2021 — In alignment with Coloreel’s extensive and international growth strategies a new CEO has been appointed, Torbjörn Bäck. With previous experience from various senior positions at companies such as Camfil, Nederman and IBM. Torbjörn will steer Coloreel and its unique patented technology for digital dyeing of textile thread on-demand into a prosperous growth journey.

The board of directors of Coloreel has appointed Torbjörn Bäck as CEO starting Aug 9, 2021. He will succeed Mattias Nordin who will transition to a new roles within Coloreel as senior vice president, Business Development. “We like to take the opportunity to thank Mattias for his great contribution during his four years as CEO,” said Anders Persson, chairman of the board.

Torbjörn Bäck most recently came from the role as president of Camfil Northern Europe, an international manufacturing group with world leading technology. Prior to this, Torbjörn was senior vice president for Nederman in Asia Pasific. From his previous career, Torbjörn has a long industrial experience from sales and marketing, product management including hands on leadership experience for how to create growth for products and innovative companies.

“After a thorough search process, we are pleased that Torbjörn has agreed to join Coloreel. Torbjörn is a highly experienced and trusted senior leader with strong international experience. The board and I are convinced that Torbjörn is the right person to lead Coloreel to the next level of our scale up and international expansion” Anders adds.

Torbjörn, who has already started his Coloreel journey comments: “I am very exited to join Coloreel. Our strong offering for high-quality digital dyeing of textile thread on-demand will fundamentally change the textile and embroidery industry. I look forward to work with the entire organization and our partners to execute on the strategy and to grow Coloreel. The fact that our products enables sustainable and stunning fashion and apparel details makes me proud and exited about the journey ahead.”

Posted August 19, 2021

Source: Coloreel

Hologenix, Creators Of Celliant Infrared Responsive Technology, Named Inc. 5000 Fastest-Growing Company Three Years In A Row

LOS ANGELES — August 19, 2021 — Materials science innovation company Hologenix®, whose CELLIANT® infrared technology is an ingredient in world-class brands across many categories, has been named to the prestigious Inc. 5000 list of America’s fastest-growing private companies for the third consecutive year.  The ranking represents a unique look at the most successful companies in the most dynamic segment of the American economy – its independent small businesses.

As reported in the Inc. magazine list, Hologenix’s profits grew 225 percent over the past three years, and, as in previous years, the company is ranked in the top half of the list.

“We are honored to be recognized for our continued growth and success as one of America’s fastest- growing companies by Inc.,” said Seth Casden, Hologenix Co-Founder and CEO.  “We strive to develop new product solutions for the ever-changing marketplace and to broaden the uses of CELLIANT infrared technology and the health and wellness benefits it delivers. We are pleased CELLIANT is now a key ingredient in many brands across the globe, from clothing and bedding to furnishings and even space suits, with more applications on the horizon!”

Posted August 19, 2021

Source: Hologenix

Hyosung Continues To Innovate With Eco-Friendly Partnerships And Products

SEOUL — August 19, 2021 — With increasing numbers of brands and consumers becoming more proactive in seeking out eco-friendly products, Hyosung continues to further is sustainable programs and product offerings.

When it comes to developing sustainable technologies and programs, partnerships can provide many benefits for the companies and brands involved, as well as for the local communities being served. Four such recent examples are Hyosung’s regen Jeju, regen Seoul, regen Ocean and Mipan regen Ocean, all of which are based in South Korea.

To establish a new resource circulation system, Hyosung partnered with the Ministry of Environment (MOE), Jeju Provincial Government, and startup Korean-based fashion brand, Pleatsmama, to produce and launch a recycled polyester made from discarded PET bottles from South Korea’s Jeju Island. The result was regen Jeju, which was adopted by The North Face Korea earlier this year.

Due to regen Jeju’s success, Hyosung expanded its domestic PET collection and recycling initiative to include the city of Seoul in order to produce regen Seoul 100% recycled polyester.

Addressing marine ocean plastic waste, Hyosung expanded its regen recycling initiative to include the waters surrounding South Korea and the port cities of Yeosu where it collects discarded PET bottles from cruise ships to develop regen Ocean polyester.

Continuing along that path, Hyosung recently signed an MOU with the Busan metropolitan government and social venture Netspa to produce Mipan regen Ocean, a recycled nylon textile made from abandoned fishing nets. In addition to producing Mipan regen Ocean, Hyosung is expanding investment in a depolymerization facility that will improve the purity of ingredients by removing the impurities in fishing nets. Hyosung’s goal is to produce more than 150 tons of Mipan regen Ocean per month by Q2 of 2022.

“In the U.S. and Europe in particular, there’s been a big push for recycled products. The whole conversation about sustainability began with brands wanting something sustainable, and back then the easiest thing to do was to implement recycled product into their lines,” said Mike Simko, Hyosung Global Marketing Director-Textiles. “Now, our conversations around sustainability are maturing. People are being more thoughtful because their companies are setting ambitious sustainability objectives and publishing them for all to see.”

Hyosung recently released the results of a new Life Cycle Assessment (LCA) comparing the environmental performance of its creora regen spandex to its virgin creora spandex. The study concluded that creora® regen spandex reduces carbon dioxide production by approximately 67 percent (or by about two-thirds) compared to its creora® spandex in the production of 1 kg.

“Sustainability is a journey. The most significant advances today are that the industry has a deeper understanding of the impact that the textile industry has on the environment, and more importantly, there is a desire to make improvements,” said Simko.

Posted August 19, 2021

Source: Hyosung

Indorama Ventures Agrees To Buy Brazil-Based Oxiteno To Create Unique Portfolio In High-Value Surfactants

BANGKOK — August 16, 2021 — Indorama Ventures Public Co. Ltd. (IVL), a global chemicals producer, today announced it agreed to acquire Brazil-based Oxiteno S.A. Indústria e Comércio, a subsidiary of Ultrapar Participações S.A. The acquisition gives IVL a unique portfolio in high-value surfactants and significantly extends its existing Integrated Oxides and Derivatives (IOD) business.

Oxiteno is a leading integrated surfactants producer, catering to highly attractive end-use markets in LATAM. The acquisition brings an excellent management team, world-class expertise in green chemistry innovation, strong customer relationships in Brazil, Uruguay and Mexico, and substantial growth potential in attractive end markets, including the United States through a new facility in Pasadena, Texas. Oxiteno has a strong commitment to environmental governance, and its focus on lowering greenhouse gas emissions will also enhance IVL’s ESG credentials.

Through the acquisition, IVL will assume a unique market position in technologies catering to niche, IP-rich and value-added applications in home & personal care, agrochemicals, coatings and oil & gas markets. The surfactants market has seen consistent growth over the last decade, driven by trends in population growth, urbanization and increasing hygiene awareness amid the Covid-19 pandemic.

With 11 manufacturing plants, customers on four continents, and an experienced management team, Oxiteno will complement IOD’s footprint in the United States and Latin America, while its 5 research and technology centers will add to IVL’s innovation credentials in green chemistry. The extended footprint has potential to drive expansion in Europe and Asia by leveraging on IVOX’s surfactants business in Australia and India and IVL’s global presence in 34 countries. IVL expects to realize synergies of $100 million by 2025 through portfolio adjustments, asset optimization and operational excellence.

IVL will purchase Oxiteno for $1.3 billion (subject to adjustments at closing), with a deferred payment of $150 million in 2024. The transaction is subject to customary conditions to closing, including approval of relevant regulatory authorities. The transaction is expected to close in Q1 2022 and will be earnings accretive immediately. Financing is secured through deferred payment, using existing extra cash on our balance sheet, free cash flow generated from existing businesses, short term loans against working capital and the balance as long-term debt.

Oxiteno and Indorama Ventures both have family-business origins and share a similar mindset, which positions people as a key business differentiator and values innovation and investments in an increasingly diversified and efficient portfolio.

Aloke Lohia, IVL Group CEO, said: “This acquisition is a natural fit for us. We have a solid track record of continuously driving value for shareholders through successfully integrating 50 acquisitions over the past 20 years. With Oxiteno, we are creating a global leader in surfactants. By bringing our companies together, we are strengthening our customer value proposition, our market reach, and our experienced team. Like us, Oxiteno grew as a family enterprise with an entrepreneurial mindset. The combination of our teams is unmatched in our industry, and we look forward welcoming them to our family.”

Frederico Curado, CEO of Ultra Group, said, “It is important to ensure that Oxiteno will benefit from integrating the new majority shareholder into the business, which is strategically positioned to lead the company through its growth path.”

Oxiteno’s HVA growth portfolio complements IVL’s existing IOD business

Oxiteno’s innovation-led HVA offering is a significant complement to IVL’s growth platform (see Figure 1), and a key driver of IVL’s EBITDA projection over the next two years, which is 15 percent above the company’s forecast in January 2021. Together with IVL’s world-class assets, which were acquired from U.S.-based Huntsman in 2020 (Spindletop transaction), the acquisition of Oxiteno will lead IVL’s newest IOD business segment as a major high-margin growth driver alongside its traditional PET commodities business, creating a stronger and more resilient hybrid platform.

The linkages between IOD, Oxiteno’s high-performing surfactants, and the Combined PET businesses through their crude oil, shale and oleo feedstocks gives IVL integration benefits across the value chain, which is key to the company’s sustainable business model as the world’s largest producer of PET resin and a large geographic footprint in non-ionic surfactants in the Americas (see Figure 2).

Oxiteno’s green chemistry innovation credentials also strengthen IVL’s ambitious sustainability objectives as a leader in PET circularity and bio-ingredients. Brazil is home to the largest inventory of ethanol, used to produce bio-ethylene to enhance EOD and PET sustainability. Today, IVL is the largest producer of resin used in recycled PET bottles and aims to recycle a minimum of 750,000 metric tons of PET globally by 2025, investing up to US$1.5 billion to achieve this goal.

D K Agarwal, CEO of Combined PET, IOD and Fibers Business, said: “The combination of Oxiteno and IVL’s existing Integrated Oxides & Derivatives business is highly complementary. It gives us a presence in the high-growth Latin American markets, and we also become a more reliable supplier to our global customers, especially in Europe and the US. It will drive sustainable long-term value creation by accelerating our expansion in downstream chemicals, increasing our exposure to high-quality markets, and adding to our R&D and sustainability credentials. The portfolio will accelerate revenue and EBITDA growth, and deliver cost synergies.”

Driving enterprise growth through a proven strategy

IVL has built a strong global platform based on some 50 successful acquisitions over 20 years, and is embarking on a program of continuous improvement through its 5 strategic priorities of costs transformation, asset optimization, adjacency growth, circularity, and organization excellence. These include significant investments in transformation, savings, and efficiency projects, which are driving expansion in IOD, strengthening its Fibers business segment, and enhancing value in its traditional Combined PET segment.

Group CEO Lohia added: “Since 2014 I have been very clear about our strategy of making big bets on HVA and innovation-led products that help us build global leadership positions. From our first PET plant in 1995, we have grown to our current global leadership position through a sound track record of acquiring and integrating new assets and teams that give us scale and differentiate us in the marketplace. This, and our focus on sustainable and circular models, our transformation and efficiency programs, and our ability to grow organically and from acquisitions, will continue to drive enterprise value.” (see Figure 3).

Posted August 18, 2021

Source: IVL

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