BANGKOK, Thailand — May 6, 2021, 2021 — Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced its first quarter 2021 financial results.

1Q2021 Performance Summary

• Revenue of $3,240 million in 1Q2021, +10 percent YoY
• Reported EPS of 1.04 THB, compared with 0.20 THB in 4Q20 and 0.07 THB in 1Q20
• Reported EBITDA of $483M= million coming from higher Core EBITDA ($369 million, registering a growth of 45 percent QoQ and 21 percent YoY), positive contract adjustments and inventory gains
• Company-wide cost and business transformation, Project Olympus, yielded $67 million during the quarter, on track to deliver our 2021 target of $287 million ($195 million extra efficiency gains over 2020)

Overview

Positive global sentiment, underscored by rebounding global oil prices and vaccine rollouts, has resulted in strong volume demand and strong margins for all IVL’s key products, driven at first by recovery in China and carrying forward into the second quarter. Global inventory levels are tight and combined with supply chain shocks are leading to margin increase in all commodity products, supporting the increase in crude oil prices. The rise in crude prices has also brought with it improvement in the shale gas advantage, benefiting IVL’s IOD (Integrated Oxides and Derivatives) business segment in North America. All of this is translating into stronger than anticipated earnings in first half 2021.

Transformation Underway

Amidst the recovery, IVL remains focused and committed to the various transformation programs that it embarked on in 2020. The company is making good progress on its journey towards one ERP, strengthening data platforms and digital tools that will allow the company to improve management. Better business analytics will improve discipline in areas such as exposure management, a crucial aspect given the complex nature of today’s markets. Additionally, IVL has created centralized expert enabling functions in areas such as Digital and Business Continuity to provide best-in-class support to its business segments.

IVL’s recent leadership re-organization – 16 distinct business verticals within three business segments under one global CEO – demonstrated deftness and agility in keeping supply chains functioning with minimal disturbance to cater to strong customer demand. IVL’s regionally integrated business model has proven beneficial through the various supply chain disruptions seen this quarter, notably the Polar Vortex and Suez Canal blockage. Having access to its own raw material has allowed IVL to operate at higher rates, and thereby reliably serve customers, due to our supply chain resilience.

ESG & Carbon Neutrality

Carbon neutrality will be IVL’s key differentiator going forward, and IVL has laid out a strategy to include recycling, renewable energy, ethical carbon offsets and adoption of new green technologies and initiatives. The company is in a unique position as the largest PET producer to be the leading sustainable player by leveraging on its scale to support customer’s sustainability targets.

This past Earth Day, IVL proudly launched the industry’s first certified Carbon Neutral PET pellet through its Deja™ sustainable brand platform. IVL’s carbon neutral PET pellets are made with renewable energy, locally sourced materials and low impact water transport to achieve a carbon neutral footprint for its customers. Deja is integral to IVL’s commitment to contributing to the achievement of the UN 2030 agenda for sustainable development.

Project Olympus

IVL’s company-wide cost and business optimization program continues on track. Having over-delivered on its targets by 21 percent in 2020, the company has made progress as planned in 1Q21. The program has yielded $67 million this quarter, split evenly between business-led initiatives and cost transformations. The majority are initiatives focused on sales excellence and operational excellence, allowing IVL to provide better value propositions to customers and improve overall productivity and costs. IVL continues to engage leading external experts to bring the tools and practices that will provide effective ways to execute the Olympus initiatives, enabling IVL businesses to achieve their full potential. IVL remains on track to achieving $287 million efficiency gains in 2021 ($195 million more over 2020).

Aloke Lohia, group CEO of Indorama Ventures, said: “Last quarter I stated that 2020 brought no structural damage to the industries IVL plays in and the first quarter of 2021 has further solidified this thesis. Our advantaged portfolio and experienced management, supported by our transformation programs, will yield superior returns for shareholders in line with our 2023 targets. Our journey towards carbon neutrality will be a key guidepost for IVL’s actions going forward, in our quest to be a world class sustainable chemical company.”

Posted May 6, 2021

Source: Indorama Ventures Public Company Limited, (IVL)

ALEXANDRIA, VA — May 5, 2021, 2021 — Healthcare laundry operators and suppliers have faced enormous challenges in the 14 months since COVID-19 turned the economy upside-down. Recovery has progressed, but many operators on TRSA’s April 27 Healthcare Virtual Roundtable said their volume hasn’t returned to 2019 levels and processing what’s back is difficult due to labor shortages.

Participants in the session, which included 60-plus operators and suppliers for two hours of talks, cited a variety of reasons hospital accounts are producing less than pre-pandemic revenue, including:

• Elective surgeries continue to be postponed, although they are expected to reach prior levels through second quarter 2021.
• Many such surgeries and other procedures that otherwise might have been performed in hospitals have shifted to outpatient or urgent-care centers. Telemedicine also has accelerated amid COVID-19 concerns.
• Hospital emergency rooms (ERs) aren’t as busy because schools are closed and students aren’t as active, reducing accidents. Less ER activity translates to fewer hospital admissions.

How much more will these trends affect hospital laundry specialists, who weathered linen volume declines from hospitals and nursing homes on average from 10%-20% during the pandemic? Technology, comfort and cost control will continue to drive growth in outpatient care, one Roundtable participant said, but the aging of nearly 70 million baby boomers means that hospitals will continue to care for many chronically ill people.

Enhanced unemployment benefits and stimulus payments are viewed as disincentivizing paid work. This may moderate in the United States in September when benefits are slated to expire, said Kevin Schwalb, TRSA’s Vice President of Government Relations. He co-moderated the roundtable with Director of Membership & Industry Outreach Ken Koepper.

Government officials suggest paying people more; this fails to consider how tight profit margins and rigorous competition make it nearly impossible to remain solvent, Schwalb observed.

Roundtable attendees discussed a range of responses including:

• Work with rehab organizations seeking to provide ex-offenders with “second chance” opportunities
• Hire interns from local community colleges who could become full time employees
• Emphasize stability and career growth opportunities in the industry
• Note in recruiting the environmental benefits of reusable textiles to attract candidates looking for a “green” opportunity out of high school or college

An appeal in the same vein as the latter could be made to customers in positioning reusables against disposables. Each COVID patient requires 30 or more isolation gown changes per staff, per shift. Disposable gowns were in short supply as the pandemic began and demand for reusables skyrocketed. Now COVID caseloads have stabilized, disposables’ supply has returned and hospitals have reverted to form in ordering them.

To reform such practices for the long haul, ideas shared at the Roundtable included:

• Make the case for reusables in nursing schools and other healthcare educational settings
• Push for regulation such as California’s mandated 50-50 stockpiling of reusable and disposable PPE, enacted with TRSA’s support
• Ads with images that emphasize the environmental and supply-chain benefits of reusables, such as nurses clad in garbage bags due to disposable PPE shortages

Other issues discussed included using TRSA’s Hygienically Clean standard to ensure cleanliness and hygiene. Samlane Ketevong, TRSA’s recently hired senior director of certification and accreditation, gave attendees a brief overview of the progress of the program, which has already certified roughly 150 healthcare plants worldwide, with eight new companies in the process of certifying in ’21. Among these are Bates Troy Inc., Alsco Uniforms, HandCraft, NOVO Healthcare, Sohn Linen and others. Readers with an interest in Hygienically Clean certification may contact Ketevong at sketevong@trsa.org.

Additional TRSA Roundtables are slated for Food and Beverage/Hospitality from 1-3 p.m. EST on May 12 and an Industrial Roundtable from 1-3 p.m. EST on June 8.  Visit www.trsa.org/events for more information.

Posted May 5, 2021

Source: TRSA

YORKVILLE, Illinois — May 5, 2021, 2021 — For the second year in a row, Aurora Specialty Textiles Group has won awards for outstanding business and manufacturing practices from the Valley Industrial Association (VIA),  which represents the manufacturing industry in the Fox Valley region of Illinois, a large industrial hub outside Chicago and a major Midwest manufacturing region.

This includes winning the award for Operational Excellence for the second year in a row for a company with 51 to 250 employees. VIA’s Excellence in Operations Award recognizes leadership in operational strategic planning and implementation.

The awards were announced April 28, 2021, at the annual VIA Spark Awards Benchmarking for Excellence celebration. In addition to Operational Excellence, Aurora won the awards for Innovation for a company of 51 to 250 employees and for Overall Most Improved.

The Innovation award recognizes companies that cultivate a culture of innovation and have an innovation process to engage employees, capture ideas, provide benefits for customers, as well as drive business initiatives.

Overall Most Improved celebrates continual improvement year after year in the areas of Safety, Workforce Development, Innovation, Culture, Operational Excellence and Social Responsibility.  Aurora  was most improved out of all of the companies, of all sizes, that vied for this award.

Aurora was also a finalist in the category for Social Responsibility, which reflects the company’s continual improvements and contributions in the areas of sustainability and corporate social responsibility.

“Even during a year of immense and unprecedented challenges, we managed to make improvements in Social Responsibility, Innovation, Operational Excellence, Safety, Culture and Workforce Development,” said Marcia Ayala, president of the company.

“The awards speak to the great employees we have at Aurora and our continuous focus on improvement,” she added. “The awards also demonstrate a consistent effort and focus throughout the Aurora organization.  Thanks to all Aurora employees! I am very proud and appreciative.”

The awards announced April 28 are just the latest in a long list of accolades that Aurora has earned. In 2019 Aurora was recognized by the Sign Graphics Industry Association (SGIA) for excellence in implementing sustainability practices throughout their Yorkville plant. In 2019, Aurora was also recognized for its sustainability programs by the Yorkville Chamber of Commerce, which designated Aurora as a Green Connect business.  In February of 2020, Aurora was the recipient of the Yorkville Chamber of Commerce annual Green Business of the Year award. And in 2020, Aurora won the VIA’s  award for Operational Excellence.

“We look forward to the VIA benchmark results every year to evaluate how we compare to our peers and to help us define plans that address areas of improvement,” Ayala added. “A great deal can be learned about your business’ competitiveness through organizations, such as the  VIA, which provides a wide range of resources for manufacturers related to learning best practices and sharing opportunities for improvement. Thanks to the VIA and to Aurora’s employees for making this possible.”

Posted May 5, 2021

Source: Aurora Specialty Textiles Group Inc.

BRUSSELS — May 5, 2021, 2021 — EURATEX comments on today’s release of the revised EU Industry Strategy:

Europe’s industry is going through turbulent times as a result of the corona-pandemic; turnover in textiles and clothing sector dropped between 10 and 20%. However, even bigger challenges lie ahead: serious disruptions in supply chains, soaring energy prices and protective tendencies are threatening the competitiveness of our industry.

Against that background, the revised EU Industry Strategy – launched today – is addressing very relevant issues, and underlines the need to think carefully about Europe’s industrial base. EURATEX welcomes the initiative, including the focus on 14 “eco-systems” and the proposal to develop privileged partnerships with trusted partners.

At the same time, EURATEX calls for more consistency by the EU across its different policy areas. Director General Dirk Vantyghem commented: “We welcome the recognition that we need a strong industrial base in Europe, but at the same time are struggling to maintain that base, as our companies face significant challenges related to over-regulation and raising energy and supply costs. It feels like one hand offering you help, while the other hand squeezes you tight”.

Looking at the global perspective, EURATEX is not calling to close the European borders; our industrial model relies on accessing global markets. But clearly, there is a need to establish global rules to ensure fair competition, and make sure these rules are properly implemented and controlled. Also today’s proposal to address distortions caused by foreign subsidies in the Single Market, should be welcomed in this context.

Dirk Vantyghem concluded: “European textiles and clothing industry went through turbulent times. Today, as part of this new EU Industry Strategy, we have an opportunity to build a new business model, based on innovation, quality, sustainability and fairness. We look forward to develop that new EU Textile strategy with all stakeholders involved.”

Posted May 5, 2021

Source: EURATEX