20
NEXT-GENERATION TEXTILE FIBRE Innovation & Technology Progress Report
21
Contents
2
04 An Integral Part of the Textile Value Chain
10 Investing in Partnerships & Collaboration
06 Our Investment Commitment
18 Accelerating In-House R&D
07 2020-2021 Milestones
24 Financials
08 Vice Chairman’s Message
26 Viscose: The Complete Guide for Brands & Retailers
Contents
Contents
3
An Integral Part of the Textile Value Chain RGE is a group of resource-based manufacturing companies with global operations. Founded in 1973, our purpose is to improve lives by developing resources sustainably.
A
s a supplier of cellulosic
drive change.
fibres, our fibre-related businesses are integrated
Our deep expertise in the cellulosic
vertically from sustainable
fibre business and integrated
plantation management to textile
capabilities allow us to have full
fibre and yarn production. We are
control over product quality,
the world’s largest producer of
accelerate scalable innovation
viscose fibre with strong presence
through practical industry
in Asia where textile demand growth
collaboration, and mitigate supply
intersects with the textile production
chain risks.
hub, presenting a real opportunity to
Bracell is a leading manufacturer
Sateri is the world’s largest producer
Linz (Nanjing) is a maker of high
of dissolving pulp and specialty
of viscose fibre, a natural and
quality viscose and lyocell yarn
cellulose. From its eucalyptus
biodegradable raw material found
products. Sateri acquired the
plantations in Brazil, Bracell’s mills
in everyday items like textiles,
company in May 2016 as part of its
in Bahia and São Paulo produce a
baby wipes and personal hygiene
strategy to be closer to customers
combined 750,000 tonnes of pulp
products. Its five mills in China
and improve quality. The advanced
a year. Its expansion project in São
produce about 1.5 million metric
mill adopts open-end, vortex and
Paulo for a new generation and
tonnes of viscose fibre yearly. Sateri
compact Siro spinning technologies
100% fossil fuel-free pulp mill will
also produces spunlace non-woven
with a total converted capacity of
boost Bracell’s overall dissolving pulp
fabric, Lyocell, and FINEX™, a
52,000 spindles.
production capacity to 2.0 million
recycled textile fibre.
tonnes. www.sateri.com www.bracell.com
Plantations & Dissolving Pulp
Cellulosic Fibre
Yarn
APRIL Group is one of the world’s
Asia Pacific Rayon (APR) is
Asia Pacific Yarn (APY) is a fully
largest and most technologically
the first fully integrated viscose
integrated viscose staple fibre yarn
advanced producers of fibre, pulp
staple fibre producer in Asia from
manufacturer, co-located in Riau,
and paper, with plantations and
forest plantations to viscose.
Indonesia with APR. APY applies
manufacturing operations in Riau,
Its 240,000-tonne mill, which is
the latest yarn spinning technology
Indonesia. APRIL manages about
co-located with APRIL in Riau,
to produce an annual capacity of
450,000 hectares of renewable
Indonesia, uses the latest production
7,560 metric tonnes of high quality
plantations. The company’s pulp and
technology to produce high quality
yarn products or equivalent to a
paper mill has an annual production
viscose fibres to meet textile needs.
total converted capacity of 32,000
capacity of 2.8 million tonnes of pulp and 1.15 million tonnes of paper.
spindles with open-end-rotors, ring www.aprayon.com
spindles and vortex positions.
www.aprilasia.com
4
An Integral Part of the Textile Value Chain
An Integral Part of the Textile Value Chain
5
Our Investment Commitment To drive the development of groundbreaking solutions in alternative cellulosic feedstock and clean manufacturing technology in our businesses, RGE made a commitment to invest US$200 million into next-generation textile fibre innovation and technology in 2019.
2020-2021 Milestones
The investment is over 10 years and allocated to three focus areas: scaling up proven clean technology in fibre manufacturing (70%), pilot-scale production to commercial scale (20%), and R&D in emerging frontier
NOVEMBER
2020
solutions (10%).
Launch of Sateri 2030 Vision: Our Decade of Change & Action
While we are technology agnostic, our focus is on cellulosic textile fibres as they are renewable and biodegradable. We execute our investments by investing in start-ups, sourcing ready solutions and advancing in-
MARCH
2021
Lyocell Production Expansion Plans in China
house R&D solutions.
JULY
$200 Million usd into next-generation textile fibre innovation. Target allocation over 10 years.
2021 10%
20%
70%
AUGUST
2021 R&D in emerging frontier solutions
Pilot-scale production to commercial scale
2021
Our Investment Commitment
Formalised Strategic Partnership with Textile & Fashion Federation
Investing in Start-Ups Sourcing Ready Solutions In-House R&D Solutions
6
EU-BAT Compliance for All Sateri Mills
Clean technology in fibre manufacturing
OCTOBER
Our Investment Approach
Further Investment in Infinited Fiber Company
NOVEMBER
2021
Formalised Research Collaboration with Nanyang Technological University Singapore
2020-2021 Milestones
7
will contain alternative or recycled
recycling plant to demonstrate a
materials. Similarly, under APRIL’s
method of textile recycling that
2030 Vision, 20% of its fibre for
meets strict urban environmental
viscose production will be sourced
requirement. Complementing this
from recycled textiles.
effort is a strategic partnership with Singapore’s Textile and Fashion
Securing textile waste feedstock
Federation where we seek to, among
is a business imperative, and its
other goals, advance research and
costs and availability will determine
innovation in circular economy
the commercial viability and ability
approaches to fashion waste in Asia.
to scale. To promote textile fibre
Vice Chairman’s Message
A
s the world’s largest
every 5 to 7 years before replanting.
producer of viscose
On average, we plant about one
fibre, a global leader
million trees daily. Textile waste, on
in the production of
the other hand, is a global problem
dissolving wood pulp, and one of
that the industry needs to solve.
the largest and most technologically
To accelerate circularity in the
advanced and efficient makers in
textile industry, we are investing in
the world, RGE takes pride that our
innovation to mainstream the use
products are biodegradable and
of recycled textiles in man-made
manufactured using sustainable
cellulosic fibre production.
methods. Last year, Sateri announced its
8
Our viscose fibres are sourced from
2030 Vision for sustainable growth
sustainably managed and certified
where we will utilise textile waste
plantations in Brazil and Indonesia.
to produce viscose products with
Trees in these tropical countries
50% recycled content by 2023,
are a fast-growing and renewable
and 100% by 2030. In addition, by
resource that can be harvested
2025, 20% of Sateri’s feedstock
Vice Chairman’s Message
recycling in China, we partnered
We are pleased that all five of
the China Association of Circular
Sateri’s viscose mills in China are
Economy on a comprehensive study
now fully compliant with the emission
on the industrial-scale textile waste
limits set out in the European Union
recycling landscape in the country.
Best Available Techniques Reference
We also collaborated with Reverse
Document (EU-BAT BREF), two
Resources and Closed Loop Fashion
years ahead of schedule. In Brazil,
Consulting to understand pre-
we completed construction of the
consumer textile waste availability
world’s largest dissolving pulp mill
and readiness in Indonesia, Sri Lanka
which uses cutting-edge technology
and Bangladesh.
for fossil fuel-free generation. The São Paulo mill is energy self-
Despite COVID-19 travel restrictions,
sufficient and with surplus funnelled
which have the made in-person plant
to the Brazilian power grid as clean,
visits that are crucial to technical
high-quality energy.
projects impossible, our collaboration with Infinited Fiber Company has
These achievements underscore
continued. We are pleased to have
our commitment to continuous
made further investments in Infinited
improvement in clean production and
Fiber Company in July 2021; our
resource utilisation efficiency. We will
investment marks another milestone
continue to pursue manufacturing
for both companies as we seek
excellence and invest in best-in-class
to scale up next-generation fibre
technologies for all our facilities as
solutions.
part of our commitment towards closed-loop and cleaner production.
To complement and bolster our in-house R&D capabilities, we
We look forward to a more
entered into an agreement with
sustainable future, and to sharing
Singapore’s Nanyang Technological
more of our efforts with you.
University for a five-year research collaboration. A key research
Bey Soo Khiang
outcome is the translation into a
November 2021
functioning metropolitan pilot textile
Vice Chairman’s Message
9
Investing in Partnerships & Collaboration
RGE has a dedicated investment function with personnel recruited from the private equity and venture capital industry.
30%
70%
S
R&D and investment teams have
collaboration with our existing
Funds
Companies
continuously sourced investment and
relationships. In parallel, we
partnership opportunities, facilitating
contributed to the overall ecosystem
collaboration with innovative
of next-generation textile fibre
technology companies in areas of
innovation, working with other
alternative feedstock and clean
investors actively investing in similar
manufacturing.
technologies to evaluate projects
Types of Investments Explored (since 2019)
Types of Technologies Explored (since 2019) 33% Alternative Solvent
29% Textile Recycling
38% Alternative Feedstock
ince the start of our
Over the past 12 months, we
next-generation
continued to build up our investment
textile fibre innovation
and partnership pipeline, as well
initiative in 2019, our
as deepen and advance potential
that could benefit from RGE’s Our investment review process
support.
takes into consideration various factors that include founders’
While we remain committed and
vision and mission, pathway to
optimistic on our innovation journey
commercialisation, scale-up risks,
working with a diverse group of
and overall fit with our existing
early-stage technology companies,
operations and long-term business
we recognise the complexity, time
model.
and capital intensity in scaling up new technologies within our sector,
The investment process combines
especially in the current challenging
investment discipline with our deep
operating environment in the post
industry knowledge that includes a
COVID-19 world.
Technology Readiness Level (TRL) framework. This framework provides
Our goal remains singular:
our team clarity on technical risks,
achieving commercial scale where
and also informs us how we may
possible to be cost-competitive,
support and complement a potential
while maintaining or improving on
investee and technology partner with
consistency in quality.
our internal know-how.
10
Investing in Partnerships & Collaboration
Investing in Partnerships & Collaboration
11
Infinited Fiber Company Sateri continued its strategic
facilities in the years leading to 2024.
collaboration with Infinited Fiber
The factory, which will use household
Company and participated in the
textile waste as raw material, is
company’s EUR30 million funding
expected to be operational in 2024
round which attracted new and
with an annual production capacity
existing investors such as H&M
of 30,000 metric tonnes. The
Group, adidas, BESTSELLER and
engineering progress supported by
Zalando. The new funding enables
the additional funds also accelerates
Infinited Fiber Company to carry out
Infinited Fiber Company’s ongoing
the work needed for preparations to
collaboration and potential
build its flagship factory in Finland,
technology licensing with Sateri.
and to increase production at its pilot
Renewcell Since the signing of a Memorandum
consistency and quality even as
of Understanding with Re:newcell in
viscose fibres comprising varying
mid-2019, we have been conducting
percentages, up to 20%, have been
trials with Re:newcell’s Circulose
successfully produced. We remain in
pulp, recycled from cotton textile
discussion with Re:newcell to offtake
waste, in our mills in China and
a sizeable pulp volume from their
Indonesia. The trials remain
2022 production.
focussed on ensuring performance
Sodra
12
Sateri produces 20% RCS-certified
uptake since it was unveiled in mid-
recycled viscose using Swedish
2020, we remain committed to the
company Södra’s Once More pulp
use of Södra’s pulp and are exploring
for its FINEX™ product. While the
the possibility of joint sourcing of raw
product has limited commercial
materials in China with them.
Investing in Partnerships & Collaboration
Investing in Partnerships & Collaboration
13
Aalto University In 2019, we provided full sponsorship
of them has since completed her
to two of our research staff members
research and returned to Indonesia
for their post-doctoral research
as a specialist researcher on
studies on clean manufacturing
recycled textiles and new man-made
technologies in Aalto University
fibres. The other remains in Finland
under the tutelage of renowned
working on Ioncell technology.
academic, Dr Herbert Sixta. One
Nanyang Technological University Singapore A 5-year research collaboration
the establishment of a low carbon
on innovation in textile recycling
and green urban-fit pilot textile
technology was formalised between
recycling plant in Singapore that is
NTU Singapore and RGE in
capable of converting local textile
November 2021. A key anticipated
waste into new raw material for use
outcome from the collaboration is
in, or export from, the city-state.
VTT Technical Research Centre of Finland APRIL continues to work with
world to utilise the foam-forming
VTT and 51 other companies in a
process. The selected piloting
three-year ‘Piloting Alternatives
targets include fibre-based materials
for Plastics’ project which seeks
to replace the plastics used in, for
to accelerate new generation fibre
example, food packaging, filters, and
products towards industrial scale
textiles. Based on the development
production. The pilots are being
work, we have more options to
carried out at VTT in Jyväskylä, with
develop the downstream business of
access to, among other things, the
pulp and viscose fibre.
first research environment in the
14
Investing in Partnerships & Collaboration
Investing in Partnerships & Collaboration
15
China Association of Circular Economy (CACE) Sateri commissioned a study with CACE on the recycling and utilisation of textile waste in China. The study, which analyses the output, utilisation, demand, investment risks and regulatory landscape of the textile waste industry, was completed in September 2021. Findings relating to textile waste in the hospitality industry will be followed up on.
Reverse Resources and Closed Loop Fashion Consulting In collaboration with Reverse Resources and Closed Loop Fashion Consulting, APR concluded a survey to map out the potentially available volumes of preproduction textile waste in Indonesia, Sri Lanka and Bangladesh. Over a hundred participants completed the survey or interviews. The results will inform APR’s feedstock procurement strategy to achieve its goal of sourcing 20% of its feedstock for viscose from alternative or recycled materials by 2030. A summary of results will be shared as knowledge contribution to the industry.
Textile & Fashion Federation Singapore (TaFF) RGE and TaFF formalised a 3-year strategic partnership to advocate sustainable industry practices within Southeast Asia through programmes implementation, policies, research, innovations and education.
16
Investing in Partnerships & Collaboration
Investing in Partnerships & Collaboration
17
Accelerating In-House R&D Capability in Textile Fibre Innovation
R
GE has developed dedicated in-house Research and Development (R&D) capabilities over many years. We have about 700 staff members involved in fibre R&D functions across Brazil, China and
Indonesia, with a majority engaged in forestry R&D in areas such as silviculture and land use intensification and fibre yield optimisation. Our key advantage is the possession of expertise across dissolving pulp, viscose, lyocell and yarn spinning in different parts of our businesses and locations. This allows us to integrate our R&D competencies and harness synergies along the cellulosic fibre production value chain. Currently, there are 100 staff members, including 12 with PhD and post-doctoral qualifications and 14 with Masters Degrees from various nationalities, involved in textile fibrerelated industrial R&D. We will continue to grow this pool of professionals and expand its range of competencies.
18
Accelerating In-House R&D Capability in Textile Fibre Innovation
Accelerating In-House R&D Capability in Textile Fibre Innovation
19
Our international team of textile fibre R&D professionals
Textile-to-Textile Recycling Since 2019, our in-house R&D team
spinability running recycled textiles
has been focused on producing
at 50% ratio, with other 50% being
quality viscose using recycled cotton
regular dissolving wood pulp, at
textiles as feedstock. These trials
maximum viscose pilot plant speed
have hastened significantly, enabled
capacity of 70m/min. With 80%
by the operationalisation of a fully
mixed dissolving wood pulp, there
automated pilot plant in Kerinci, Riau,
is good spinability at 50 -70m/min.
Indonesia which models the entire
The overall performance of mixed
viscose manufacturing process.
recycled textile fibre produced through this method is on par with
In the past year, as part of a textile-
regular viscose fibres.
to-textile recycling project, the in-house R&D team has worked with
To commercialise this breakthrough,
various materials such as denim,
we are planning to build a 24-tonne
combed cotton, and viscose. We
textile recycling facility in Kerinci.
are now able to remove up to 50%
Engineering design and further
polyester-mixed cotton material with
commercial feasibility plans are
high viscosity control, as well as
being undertaken and an investment
remove dyes using a single bleaching
decision will be made in 2022. The
process.
same investment review process and considerations apply to our in-house
The team has also achieved good
projects.
Urban-Fit Textile Recycling Pilot Plant The current process we employ is reliant on the use of chemicals and effluent
Alternative Feedstock Sourcing
management system which is only available in an industrial complex setting. Granted that more countries are imposing bans on the import of waste, there
Planning for cost-effective and high
is an increasing need to develop a textile recycling method that is urban-
volumes of pre- and post-consumer
fit (ie. low carbon and chemical emissions and energy efficient) which will
textile waste has become an urgency
allow countries to turn local textile waste into new material or feedstock for
for our sourcing teams even while
domestic use or export.
we prepare to scale recycled fibre production. In collaboration with
To this end, we have formalised a 5-year research collaboration with Nanyang
CACE, Reverse Resources, and
Technological University Singapore (NTU Singapore) which boasts a world-
Closed Loop Fashion Consulting,
leading material science faculty. A key outcome from the collaboration is the
we have completed studies that
establishment of a pilot urban-fit textile recycling plant in Singapore which
examine textile waste stocks and
can later be scaled and replicated in other parts of Asia.
flows in China, Indonesia, Sri Lanka and Bangladesh. Findings from the
The RGE-NTU Sustainable Textiles Research Centre will also conduct
studies will inform our procurement
research around challenges such as dye removal and alternative use for
strategies, as we work towards
by-products following fibre separation. The Centre, which marries the
delivering on our commitments to
competencies of our in-house team in pulp and viscose production with NTU’s
increase the volume of textile waste
deep understanding of polymer science, will facilitate technology transfer and
used in our viscose production as
drive continuous improvement in textile recycling innovation and technology.
well as recycled content in our fibre products by 2030.
20
Accelerating In-House R&D Capability in Textile Fibre Innovation
Accelerating In-House R&D Capability in Textile Fibre Innovation
21
FINEX™
22
Lyocell
FINEX™ is Sateri’s marquee brand
market demand for FINEX™ has
Lyocell by Sateri is manufactured
new Lyocell application technologies
for Recycled Claim Standard (RCS)
been limited, in part due to weak
using closed-loop technology,
and advance research.
certified fibre launched in 2020. It is
market sentiments brought on by
requiring minimal chemical input
produced with up to 20% recycled
the COVID-19 pandemic. At present,
during the production process,
Sateri has ambitious plans to
content using a 35,000-tonne per
16,000 FINEX™ hangtags can
and utilising an organic solvent
expand Lyocell production in China,
annum commercial production
be found in over 600 stores, with
that can be almost fully recovered
reaching up to 500,000 tonnes
line. Despite the ability to scale
ongoing efforts to promote uptake
and recycled. In 2020, Sateri
total planned annual capacity by
up production, partnerships with
through consumer education on
commenced Lyocell production on
2025. Work is underway for two new
leading fashion brands in China,
the performance and benefits of
its first 20,000-tonne per annum line
100,000-tonne facilities in Jiangsu
and the high quality of the fibre,
recycled textile fibres.
in Rizhao, Shandong, China, where
province. Researchers at the R&D
we have also built an R&D Innovation
Innovation Centre have successfully
Centre with a 5,000-tonne per
developed anti-fibrillation technology
annum Lyocell pilot production line
that will be deployed at the new
dedicated for the development of
facilities.
Accelerating In-House R&D Capability in Textile Fibre Innovation
Accelerating In-House R&D Capability in Textile Fibre Innovation
23
2021 Financials 4% Bringing pilot-scale production to commercial scale
Actual Expenditure (in USD million)
28% R&D in emerging frontier solutions
68% Scaling up proven clean tech in fibre manufacturing
Item
2020
2021
25.9
38.6
FINEX™
1.6
2.1
Textile waste study - China
-
0.04
Textile waste study – Indonesia, Sri Lanka, Bangladesh
-
0.03
Strategic partnership with Textile & Fashion Federation
-
0.3
Sateri R&D Innovation Centre and 5,000-tonne pilot line
11.8
11.5
Kerinci viscose pilot plant
1.4
-
2 x post-doc research sponsorship
0.8
0.4
Piloting alternatives for plastics research project
0.02
0.02
TOTAL
41.52
52.99
Scaling up proven clean technology in fibre manufacturing Lyocell 20,000-tonne production line
Bringing pilot-scale production to commercial scale*
R&D in emerging frontier solutions
*Investment amount in Infinited Fibre Company is bound by agreement confidentiality 24
2021 Financials
2021 Financials
25
This guide was published by Apparel Insider in April 2021 and reproduced here with permission.
Viscose: The Complete Guide for Brands and Retailers Polyester, cotton … viscose. As textile fibres go, the former two are household names, well known inside and outside the global fashion industry. But what about viscose?
W
hile the use of viscose
Moreover, while cotton and polyester
in apparel has been
remain the dominant fibre types
around for more
used in apparel, neither is without
than a century, there
its challenges, which are well
has been a renewed interest in this
documented.
wood-based fibre in recent years. This fact is reflected by a steady
Thus, brands are increasingly open
increase in its global share of the
to looking at new and novel fibre
overall fibre mix.
types as well as ways they can incorporate viscose fibres into their
The interest in viscose among
mix, whether as single use or fibre
brands has several dimensions. On
blends.
the one hand, fashion brands and retailers are giving increased thought
To provide guidance for brands and
to the issue of fibre use (and mixes)
retailers, this paper looks at the
generally for a variety of financial,
global viscose market, developments
sustainability-related and regulatory
in viscose production methods,
reasons.
sustainability issues, recycling opportunities, forestry challenges and pricing.
26
Viscose: The Complete Guide for Brands and Retailers
Viscose: The Complete Guide for Brands and Retailers
27
Viscose: An Overview Viscose falls under the classification of man-made cellulosic fibre (MMCF). Charles Frederick Cross, Edward John Bevan, and Clayton Beadle discovered the viscose process in the 1890s and patented the first viscose. Viscose is commonly made by dissolving wood pulp from trees such as birch, pine, and eucalyptus (although, in theory, many other cellulosic plants could be used for the process). The manufacturing process for viscose entails the wood being chipped and cooked into pulp and then dissolved in chemicals to form a pulp slurry. The slurry is pressed to create alkali cellulose, and this alkali cellulose is treated with carbon disulphide and dissolved in sodium hydroxide to create viscose. A honey-like viscose solution is filtered through a fine spinneret and transformed into filaments or regenerated cellulose. Finally, these filaments are spun into yarn which can be either woven or knitted into viscose fabric.
Applications A highly versatile material, viscose is valued due to its cotton-like qualities. The fibre has a wide range of applications, ranging from fashion – by far its largest market – to nonwovens such as facial masks and wipes. Viscose blends well with other fibres including cotton and polyester and has many special properties – being breathable and absorbent as well as dyeing easily. It is lightweight, 100 per cent bio-based and biodegradable. The fibre is increasingly popular due to its blendability with other fibres, and also acts as a substitute to silk and cotton.
28
Viscose: The Complete Guide for Brands and Retailers
Viscose: The Complete Guide for Brands and Retailers
29
The State of the Market The global market for textile fibres has almost doubled
World Fibre Use
over the past 2 decades and the trend is upwards with an overall compound annual growth rate (CAGR) of 3.7
Overall Percentage Change (2000 - 2019) 100
per cent in 2019. 80
Since 2000, the market share of MMCF has increased
60
from 5 to 6 per cent, with CAGR of 5.2 per cent. Polyester’s market share has risen from 50 to 65 per cent (CAGR of 5.1 per cent) while cotton’s market share
MMCF Fibre Use (2019)
40
20
has declined steadily from 35 per cent in 2001 to 23
cellulosic alternative to meet growing fibre demand.
Cotton
MMCF
20 19
20 17
Others
20 18
20 15
20 16
20 13
Synthetic
20 14
20 11
20 12
09
20 10
20
07
08
20
20
05
06
20
20
03
04
20
20
01
02 20
00
20
production stagnating, MMCFs are turned to as the
4%
12%
3%
11%
13%
Lyocell
Acetate Tow
APR
Tangshan
Birla
5%
79%
10%
12%
20%
Filament
VSF
Lenzing
Zhongtai
Sateri
0
20
per cent in 2019 (CAGR 1.5 per cent). With global cotton
World VSF Capacity (2021)
31% Others
MMCF such as viscose/rayon, Lyocell, Modal and Cupro, form the second largest cellulosic fibre group in the global textile industry after cotton.
The Changing Market
World Fibre Use (2001)
5%
10%
35%
50%
MMCFs
Others
Cotton
Synthetics
The largest share of fibres in the
market include Birla, Zhongtai,
MMCF category is viscose staple
Tangshan and Lenzing.
fibre (VSF) which accounted for
Total: 57 MT
79 per cent of MMCFs in 2019
The top five players in the market
according to estimates by Sateri.
make up almost 70 per cent of global market share.
Global VSF capacity for 2021 is
World Fibre Use (2019)
6%
6%
23%
65%
estimated at 7.5MT. This is based on
In the first decade of the 21st
information from a range of sources,
century, China quadrupled its
including Sateri, Lenzing, Birla and
viscose production capacity, and
APR.
now represents almost 66 per cent of the global viscose market.
The largest player in the VSF market MMCFs
Others
Cotton
Synthetics
Total: 113 MT
30
Viscose: The Complete Guide for Brands and Retailers
is Sateri, which accounts for around
Indonesia and India are the world’s
20 per cent of viscose production
second and third largest producers.
volume. Other key players in the
Viscose: The Complete Guide for Brands and Retailers
31
Viscose, Lyocell – what is the difference? We often hear the terms viscose and
Lyocell fibres were first developed
Lyocell used interchangeably. So
and manufactured by Courtaulds
how do they differ?
Fibers, UK, in the 1980s and branded as Tencel. Lenzing produced Lyocell
The key difference is viscose and
under the brand name ‘Lyocell by
Lyocell use different technologies
Lenzing’ and subsequently bought
and chemicals to regenerate
over the Tencel brand.
cellulose, with Lyocell the only production method which excludes
The world Lyocell capacity is
carbon disulphide.
currently at 0.54MT and the market is expected to grow significantly,
The Lyocell process operates in a
with the sustainability credentials
‘closed loop’, which means most
of Lyocell’s production methods an
of the water and solvent in the
alluring proposition for brands. That
process are recycled for reuse.
said, Lyocell still only represents a
Here, an organic solvent called
fraction of global viscose production
N-Methylmorphine N-oxide (NMMO)
and the price premium it attracts
is used as an alternative to carbon
remains a barrier for some brands.
disulphide to dissolve wood pulp. The expiration of related technology patents for Lyocell
patents, there are high start-up costs, including the
production in recent years and improved manufacturing
technology involved.
capabilities in the industry have opened up the Lyocell There is some Lyocell production capacity in China but
World Lyocell Capacity (2021)
market to other producers.
6%
6%
Sateri is one of the large-scale manufacturers to step
producers in China are only producing around 10,000
Others
Baoding Swan
into the Lyocell market. In March 2021, the business
tonnes per year.”
5%
7%
Birla
Hubel Jinhuan
5%
17%
Sateri
CTA Green Fibre
6%
48%
Shandong
Lenzing
the challenge is to reach high levels of capacity. Most
announced plans to expand its Lyocell production in China and is targeting annual capacity of up to 500,000
In 2019, Lenzing announced plans to establish a
tonnes by 2025.
100,000 tonne Lyocell production facility in Thailand. Expect further announcements from the key players
Tom Liu Sateri’s Vice President and General Manager of
in the Lyocell market moving forwards. This space is
Lyocell and Nonwovens Business. We asked him where
moving fast, with Asia the favoured destination for new
he sees the Lyocell market looking ahead. He told us:
production units.
“There are barriers to entry in the market. As well as
Yinli
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33
producers to move towards a
These are regenerating ecosystems;
closed-loop manufacturing system,
producing with zero harm; enabling
where emission controls and
circular systems; creating prosperity;
chemical recovery rates are in line
and upholding rights.
with best practices – the so-called EU Best Available Techniques (BAT).
On the issue of chemicals, the Zero Discharge of Hazardous
Many of the leading viscose
Chemicals (ZDHC) Foundation in
manufacturers in the world,
2020 expanded the scope of its
accounting for more than 50 per
work to cover the environmental
cent of viscose production, have
impact of MMCF. The first focus of
committed to align their performance
its work here is viscose and modal.
with EU BAT at all their facilities in
Consequently, new ZDHC Guidelines
the coming years.
now offer brands and manufacturing facilities producing MMCF an aligned
Sustainability Key Developments viscose has increasingly come
about responsible sourcing of
for instance, we recover more
under the microscope from NGOs,
viscose.
than 96 per cent of total sulphur components.
In recent years, the more reputable players in the industry have certainly
“But we can only do that because
The concerns around viscose
helped to drive up standards in
we have invested heavily on the
production are that because it is
production methods.
operational side of the business. In parts of the market, there
production is clean or not? And how
accounts for more than 50 per cent
do production standards vary around
of the world’s viscose production
the world? Sateri’s Christian Cai:
capacity to promote responsible
“When you’re serving global markets,
production of viscose.
it does not matter where you are
Other work in the field includes an initiative led by Forum for the Future and Textile Exchange as well as key players in the MMCF value chain.
damage to the local environment
of Operations, says: “Traditional
production, closed loop and clean
in instances where production is
viscose production is reliant on
Together, these have developed a
manufacturing. It is not all push from
handled irresponsibly.
industrial chemicals and if not
‘shared vision’ for the viscose value
NGOs”
chain covering five areas of action.
An influential NGO in this space
forestry and, to this end, the
environment. But the industry has
is Changing Markets. Changing
nonprofit Canopy has done a huge
certainly changed drastically in the
Markets has lobbied for viscose
Viscose: The Complete Guide for Brands and Retailers
production process.
leading viscose producers which
is a push towards sustainable
impacts on human health and the
products generated during the
What other factors dictate whether
Christian Cai, Sateri’s Vice President
There are also the issues around
part of the inputs, as well as by-
(CV), brings together China’s ten
intensive process, there is a risk of
well managed, can have negative
34
the recovery of sulphur compounds,
Sustainable Development of Viscose
past decade. In our own process,
manufactured using a chemical-
also offer an aligned approach for
Sateri and Tangshan Sanyou.
the Chinese Collaboration for
amount of work raising awareness
stakeholders in recent years.
approach for emissions control. They
Asia Pacific Rayon (APR), Lenzing,
Another industry initiative,
Like every other textile fibre sector,
regulators and other industry
These include Aditya Birla Group,
based, be it China or Europe. When you have that international presence, different pressure is exerted.” “A lot of the manufacturing issues arise due to the age of the technology and equipment being used. Investment in modern technology has been key for us.”
Viscose: The Complete Guide for Brands and Retailers
35
Circularity and Recycling In recent years there has been a push from industry to incorporate recycled feedstock into the viscose process. Brands are attracted by the proposition of being able to use viscose produced from a combination of virgin and recycled materials as use of recycled fibres often dovetails with their stated sustainability targets.
Dr Rudine Antes says there are
There are other issues, Dr Rudine
technical challenges the whole
says. “While some feedstock is easy
industry is grappling with. “While
to work with – used bed towels and
the technology can now separate
sheets – other feedstock includes
polyester from natural fibres, other
multiple blends, requires removing
synthetic fibres like elastane and
buttons and zips, uses a range of
nylon remain big challenges.”
dyeing technology and so on. The permutations make sorting extremely
An example of work in this area is an initiative between
In fact, numerous papers support
Sateri and Swedish company Södra which saw viscose
tough.”
this sentiment – elastane content
fibre produced on a commercial scale from regenerated
in used clothing is a serious barrier
Decreasing quality in clothing is
to recycling. It is used increasingly
certainly having an impact. “By the
in fashion garments, skinny, stretch
time something is not useable for a
jeans being the most obvious growth
human, it is often at a point where
area.
it is not useable for us to put into
our system to be recycled,” says Dr
All these factors, Dr Rudine
We talked to APR about the issue of recycling in terms of
Rudine. “Access to feedstock for
suggests, have implications for
the challenges it brings to production, potential costs it
recycling could be the next battle
pricing, increasing the cost and time
brings to final products and future developments in this
among producers.”
associated with production with
textile waste. The new fibre created, FINEX™, uses a mix of dissolving pulp made from recycled post-consumer textile waste by Södra, and other PEFC-certified wood pulp.
Trialled at Sateri’s Linz Nanjing yarn spinning mill, the new fibre has proven compatibility with existing spinning technologies – a key potential stumbling block – ensuring stable yarn production without the need to adjust existing processes or parameters. Another well-known name here is Renewcell. This Swedish business has developed Circulose, a branded ‘dissolving pulp’ product which is produced from 100 per cent discarded cotton textiles. Swedish fashion retailer H&M is now using Circulose in its Conscious and mainstream collections.
area.
potential knock-on effects for brands and retailers.
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37
Traceability A raft of projects have been
goods business Kering. It applies
launched in the past two years
blockchain technology from
– many in pilot stage – to show
TextileGenesis to trace the viscose
how fibres can be traced through
in the textile supply chain spanning
supply chains using a combination
eight countries.
of (for example) DNA ‘markers’ and blockchain. Many of these
BESTSELLER and Kering provided
projects have focused on cotton, and
eight garment styles to be traced for
occasionally wool, but are equally
the pilot, with fibres sourced from
applicable to viscose.
three different viscose producers.
Last year, the Viscose Traceability
APR has its Follow-Our-Fibre, a
Project was launched by Fashion for
block-chain based tracking platform
Good to pilot a solution that verifies
that traces its viscose from nursery
sustainable viscose fibres along the
to bale, since 2019.
fashion supply chain. The conservation and biodiversity The work was developed in
protection efforts of its suppliers are
collaboration with Danish brand
also captured on the platform.
BESTSELLER and French luxury
Pricing Viscose prices are impacted by
While China is a major producer
as an alternative to cotton. With
a combination of sector-specific
of viscose, the government there
Europe, the UK and other parts of
factors and broader, macroeconomic
strengthened its environmental
the world looking likely to follow the
dynamics.
policy on industrial production
lead of the US, this trend is likely to
around five years ago. This impacted
continue.
Demand-supply issues drive prices
viscose production and briefly
at the macro-level. A broader,
squeezed supply, pushing prices
This upward dynamic has been
upward demand for viscose
upwards.
counter-balanced by the impact of the global coronavirus pandemic
generally from brands and retailers has seen an upturn in prices over the
The fortunes of other textile fibres
during 2020/21. Clothing production
past decade.
have an impact on viscose prices.
globally has fallen significantly, which
Environmental factors include
In 2021, the US announced a ban
fibres. This has had a knock-on
whether viscose contains certified
on the import of cotton products,
effect on viscose prices.
or uncertified pulp, and production
including apparel and textiles, from
issues – for instance, the cleaner
Xinjiang which accounts for 20 per
production offering of Lyocell fibres
cent of global cotton production.
means they attract a price premium
This has caused speculations and
in the market.
price volatilities for all fibre markets,
in turn has hit demand for all textile
including a general upward trend in viscose prices where it is often seen
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39
Forestry
He says: “If it is plantation, what is
which has some challenges (which
the nature of that plantation? Is it a
if you’re going to be transparent, all
newly established plantation which
do), you have to ask yourself what
How concerned should brands
may have links to deforestation?
you can do to foster change in those
and retailers be about the link
Or is it a plantation which has
areas where change is critical for
between viscose production and
been long established? Also, what
the survival of us all on this planet.
deforestation? And what questions
are the assurances around things
Foster change that gets to the root
should brands be asking of their
like respect to workers’ rights,
cause and provides good value
viscose suppliers?
community engagement, potential
propositions to support change,
community conflicts etc?
plenty of carrot and not just stick.”
forestry issues related to viscose
“We want a situation where
Finally, on the issue of certifications,
production, we spoke to Boris
companies can be transparent about
Saraber warns against using
Saraber, Director of Operations with
the nature of their fibre supply and
certification as a “green shield,”
non-profit Earthworm Foundation,
can speak concretely about the
and that much more important is a
which has extensive expertise in the
challenges present and what they
company and its own values.
forestry sector.
are doing about those. Not just feel
To gain a better understanding of
Saraber suggests the first question
they have to assure the world it’s all
He says: “In my experience if you are
green and great.”
a company that has strong values
brands should ask of viscose
and you apply the principles under
suppliers is about their supply chains
What about allegedly ‘high risk’
the certification standard to the
– namely, can the supplier provide
countries where forestry is
letter of what they write – fantastic.
assurances of its raw material
concerned? How concerned should
origins, right down to the specifics
brands be?
“But if you choose to use certification as a ‘green shield’,
of which forests and not just simply Saraber suggests this is far from a
you will do whatever you can in
black and white issue, arguing that
your power to cut costs to get the
He adds: “There has to be a high
the problem of avoiding ‘high risk’
certification. That way of certification
degree of transparency with that,
regions is that you potentially “de-link
is flawed.
which is not always the case today.
responsible purchasing power from
There is a lot of opacity which means
the areas where change is needed.”
country of origin.
“As a company you have to be prepared to have a strong ambition
at the mill level they may not be fully transparent about the different
He adds: “Indonesia is a case in
that goes beyond certification, to be
fibre sources they are pulling into
point. Like many other countries, it
transparent. Certification is a tool to
the mill. Or they may say they have
has a significant fibre production
help you verify your journey. It is not
certification, but they might not be
base which is primarily plantations.
the end of the road.”
selling you certified products.”
Those plantations have a range of practices from very well managed/
Once visibility of supply chain has
responsible to poorly managed/
been established, one can begin
less responsible. So it’s really not
looking at issues around types
helpful for an entire country to be
of fibre base – for instance, is it a
associated with a high risk category”
plantation or a natural forest. He adds: “I also believe that, as a brand, if you have supply chain
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