issue 23 – january 2016

South East Asia stepping into the textile future

A portrait of Indonesia, Malaysia, Thailand and Vietnam With the ASEAN states, the Southeast Asia textile region comprises an economic area of around 10% of the world’s population.

Oerlikon Neumag focusses on polyester nonwovens

Technical nonwovens on the rise Polyester is becoming increasingly significant in the spunbond sector. "In conjunction with the WinTape take-up unit, the EvoTape system increases profitability of tape yarn production by up to 50% compared to conventional, standard systems. “

Steffen Husfeldt Head of Chemnitz Site Oerlikon Barmag

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In focus Editorial

Southeast Asia stepping into the textile future With the ASEAN states, the South- east Asia textile region comprises an economic area of around 10% of the world’s population. 8

Innovation and technology Dear Customers, dear Readers,

Oerlikon Neumag focusses on The manmade fiber industry is also a growth engine outside polyester nonwovens of China and India. This has been impressively documented Polyester is becoming increasingly by the last two editions of our customer magazine, which significant in the spunbond sector. focused on Turkey and the USA respectively.

The first edition of the New Year is dedicated to the South- 20 east Asian textile region. With around 600 million people, this Airbag yarns – economic region makes up approximately 10% of the world’s polyester on the rise population. Just how different the individual countries are in Over the past few years, the share terms of their textile and apparel industry is showcased by of airbags being manufactured from the portrait on Malaysia, Indonesia, Thailand and Vietnam. polyester yarns has gradually increased. With its comparably short history of manufacturing manmade 24 fibers, Vietnam stands out from the other countries in South- WinTape and WinTape mini open east Asia: over the last 10 years, this country experienced the up new possibilities fastest growth within the region. Between 2005 and 2014, The automatic precision winder for tape the production of yarns and fibers increased by an average of yarns is particularly convincing in terms 30% per annum. The dynamic character of the Vietnamese of its process window, efficiency and textile industry is also reflected in the success of Jack Dang, investment costs. founder and CEO of Century Vietnam, as demonstrated by 26 our article on Page 30.

A further focus of this edition of Fibers & Filaments is on specialty yarns for industrial applications. We will be present- ing new solutions for manufacturing airbag yarns. This area of application – for many years a polyamide yarns monopoly – is increasingly opening up to polyester yarns.

Also read about how polyester is making its mark on In brief industrial applications for nonwovens technology. And be News and reviews...... 4 convinced by the WinTape mini, our new tape yarn winder for circular weaving tape production. On the markets Brilen invests in Europe...... 27 We are thrilled to be able to once again present you with Artificial turf market coming back to life...... 28 another magazine with interesting manmade fiber topics. We hope you enjoy reading this edition of Fibers & Filaments. People Open for opportunity – a good choice made easy...... 30 With best regards,

Service Optimised processes with Industrie 4.0 solutions ...... 34 Georg Stausberg Imprint ...... 36 CEO Oerlikon Manmade Fibers Segment in brief

Visiting friends

On the way to the ITMA in Milan, Jack Dang, CEO of Century Synthetic Fiber Corporation, one of Vietnam's leading polyester yarn manufacturers, stopped over for a short visit at Oerlikon Barmag in Remscheid. This visit took place against the background of a longstand- ing successful partnership between both companies. Oerlikon Barmag has been assisting the Vietnamese enter- prise for almost 15 years in expanding their production capacities and improv- ing the quality of their yarns.

Oerlikon Barmag took advantage of this occasion to present a commemo- rative plaque to Jack Dang. This plaque marks the commissioning earlier this year of Century Synthetic Fiber’s 10,000th texturing machine built by the technology leader. “The choice of the right supplier is a key factor for suc- cess”, said Jack Dang. “We produce high-quality products with the help of Oerlikon Barmag's modern machines.” Their success has proved him right. Michael Korobczuk, Vice President Sales Segment Manmade Fibers, (right) congratulates Century's CEO (wa) Jack Dang on owning the 10,000th Oerlikon Barmag DTY machine.

Oerlikon Neumag sells its first Staple FORCE S 1000 for bicomponent fibers

At the end of 2015, Oerlikon Neumag signed a process, as high take-up speeds are required for contract for the sale of the first Staple FORCE S homogeneous and high-quality filament formation. 1000 for bicomponent fibers with an Asian cus- Using the Staple FORCE S 1000, bicomponent tomer. The system is designed to produce mono fibers can now also be produced in a compact as well as bicomponent fibers and has an annual spinning process. capacity of 5,000 tons. The order comprises a complete system – from the spinning unit through Compared to conventional, one-step processes, to the cutting equipment. The assembly and com- which operate with take-up speeds of approx. missioning are planned to take place beginning of 80 meters per minute, the Staple FORCE S 1000 2017. The fibers manufactured using the new sys- achieves a take-up speed of approx. 400 meters tem will be deployed in automotive applications. per minute. To this end, manufacturing for ex- ample PET/PE or PET/CoPET core-sheath fibers To date, it was only possible to manufacture using a compact spinning process is no longer a bicomponent fibers using a two-step staple fiber problem. (che)

4 january 2016 | no. 23 | in brief ITMA Milan exceeds all expectations Correct perspective on the trade fair success

Every four years, the international textile “The sheer numbers of visitors attending machine manufacturing world meets up our 650-m² trade fair stand on virtually for a trade show in Europe. This time, every day of the trade fair exceeded all just under 1,700 exhibitors descended expectations”, explained André Wissen- on Milan to present 123,000 visitors berg, Head of Marketing at Oerlikon’s from all over the world with their latest Manmade Fibers segment. The compa- products, representing two records in ny’s sales and service team conducted one fell swoop! intensive customer discussions – both in the two virtual reality showrooms, filled to capacity throughout the trade fair, and in the exhibition, meeting and lounge areas.

“However, we have to put the success of the trade fair into perspective”, explains Wissenberg further. “A little more than a third of the overall market was present and even placed orders during the fair. Although, most of our customers from China were virtually absent as a result of the current reserved investment in the country.” Nevertheless: the impulses of the trade fair for the individual product lines was excellent. Spinning and textur- ing systems, staple fiber solutions, tape and monofilament applications along The exhibited Manmade Fibers segment technologies were well received by with polycondensation systems proved customers and the trade press in equal measure. to be of great interest. (lka)

WINGS POY XS Series WINGS technology now available as retrofit solution

The WINGS concept has been state- tually any building concept. This stand- of-the-art in the area of yarn drawing alone solution offers the usual benefits and take-up for years. Now it has also of a WINGS winder and is available for become available to operators of older polyester as well as polyamide. POY systems with SW, CW and ACW winders. With a new series, market The series currently includes five leader Oerlikon is now expanding into models with 8 to 12 ends and chuck the market for upgrades and moderni- lengths of 1,200 to 1,800 mm. Despite sations to answer the high demand for its compact design, WINGS XS pro- WINGS retrofit solutions. duces packages with a volume of up to 23.2 dm³. At the ITMA Milan, the eight- Its compact The new series of winders is called end winder version from the WINGS design makes the WINGS POY WINGS POY XS. Due to its extremely POY XS series with a stroke length of XS series the perfect compact design, it can be used for vir- 170 mm has been exhibited. (bey) retrofit solution. in brief | no. 23 | january 2016 5 in brief

First PET/CoPET bicomponent fiber spunbond line installed in China Don & Low invest in Oerlikon Neumag meltblown line Oerlikon Neumag has successfully assembled and commissioned its first bicom- ponent polyester multi beam spunbond nonwovens line for the production of high In June 2016 Don & Low will start value technical fabrics. After a year in engineering and design, the installation, production and supply of meltblown commissioning and acceptance were accomplished in record time. The line was nonwovens from their plant in Forfar, officially turned over for production to Taipeng Nonwoven Company, Shandong Scotland. This multi-million Euro invest- Province this past November. ment into the latest Oerlikon Neumag technology brings further expansion of The production line combines round their product range and adds capabil- and “shaped” continuous filaments ity to offer benefits to new markets and to form a tenacious, isotropic web applications by the introduction of new, structure used in the production of a innovative materials. diverse range of technical fabrics. It was not least thanks to the close and The line will help Don & Low to de- intensive collaboration between the velop products with their customers Oerlikon Neumag staff in Neumünster, across all markets and enable them to the colleagues on site in China and Great teamwork: the spunbond line was installed in continue the focus on newer markets the customer that this unique spunbond record time. in filtration, automotive, medical and system was successfully designed and advanced composites. implemented. The line has a web width of 160 cm The new line, with a capacity of approx. 7,500 tons per year, is just one of the and utilises a range of polymers future lines planned by Taipeng and represents a positive push forward for including polypropylene, polyethylene Oerlikon Neumag spunbond technologies in China. Taipeng selected the German and thermoplastic polyurethane. With company because of its position as one of the world’s leading suppliers of tech- additional features including online air nologies and systems for manufacturing synthetic fibers and fabrics. (mcn) permeability, electrostatic charge capa- bility, gap control calendar and multi- width slitting, Don & Low will produce meltblown and composites to exact customer requirements. (red)

Numerous technical discussions at the Domotex 2016

For all carpet and flooring manufacturers, the year always The RoTac has been deployed as the tangling unit in the starts with a highlight – the Domotex in Hanover. This year, single-end Sytec One system since 2012. Meanwhile, virtu- 1,441 companies from 59 countries – the highest number of ally all Sytec One systems are sold with the RoTac tangling exhibitors in years – presented their trade fair innovations. unit. To this end, the further development of the unit to create a three-end system was a logical consequence. (che) The focus of the Oerlikon Neumag stand this year was on solutions for the sustainable manufacture of carpet yarns. The fact that this is also a major trend in BCF yarn production is shown by the exemplary success of the RoTac tangling unit.

RoTac³ convincing yarn manufacturers Since the market launch of the RoTac3 as the new tangling unit for the BCF S+ system a year ago, just under 90% of all new sales have been equipped with the rotating tangling unit. And the business of retrofitting existing systems with the component is also operating well, comments Martin Rademacher, Oerlikon Neumag Sales Director: “For us, this is a sign that energy costs are playing an increasingly impor- tant role in BCF production.” (che)

6 january 2016 | no. 23 | in brief in time

First WinFors winders sold to the US Events

The first WinFors-type winders have Its flexibility not only makes the Win- Outlook Asia 2016 been sold to a well-known yarn manu- Fors interesting to investors in new March 2-3, 2016, Singapore facturer in the USA, with the delivery systems and equipment: this all-round- www.edana.org of the nine 8-end WinFors units with er is also perfect as a retrofit solution. a 1200-mm stroke taking place in the 4-, 6- and 8-end and equipped with a Domotex Asia 2016 second half of this year. The winders 1200-mm chuck, WinFors can be fit- March 22-24, 2016, Shanghai, China are part of a joint Oerlikon Barmag and ted under virtually every older spinning www.domotexasiachinafloor.com Oerlikon Neumag project: the 8-posi- system. Its huge process window and tion system manufactures various types its versatility with regards to polymer SAIGONTEX of textile bicomponent yarns for the processing and spinning processes March 30- April 2, 2016, Ho Chi Minh local and international markets. make it the prudent solution for system City, Vietnam modernization. (bey) www.vfabric.com/sgtextile The cam-shaft winder WinFors is the specialist for especially delicate yarns. GeoAmericas 2016 The winder which premiered at last April 10-13, 2016, Miami, USA year’s Techtextil trade fair in Frankfurt www.geoamericas2016.org reveals its potential in particular when winding materials such as microfila- PaintExpo ments, mother yarn, airbag yarns and April 19-22, 2016, Karlsruhe, Germany seatbelt yarns. Deployable in the POY, www.paintexpo.de FDY, industrial yarn and BCF process- es, WinFors can be used as standard IDEA 2016 International Engineered for polyamide, polyester and poly- Fabrics Conference and Exposition propylene polymers; other polymers May 2-5, 2016, Boston, USA – such as PVA, for example – are also www.inda.org/idea16/ not a problem. Techtextil North America May 3-5, 2016, Atlanta, USA www.techtextilna.com

ITM 2016 June 1-4, 2016, Istanbul, Turkey www.itm2016.com

International Nonwovens Symposium June 1-2, 2016, Warsaw, Poland www.edana.org/education-events/ conferences-and-symposia/event- detail/international-nonwovens-sym- posium-2016

in brief | no. 23 | january 2016 7 Southeast Asia stepping into the textile future

With the ASEAN states, the Southeast Asia textile (Trans-Pacific Partnership Agreement), region comprises an economic area of around 600 which was signed in October 2015. The twelve member states – Australia, million people, approximately 10% of the world’s Brunei, Chile, Japan, Canada, Malay- population. The export market is far greater and is sia, Mexico, New Zealand, Peru, expanding in many directions with the growing number Singapore, the USA and Vietnam – will of trade agreements. In the shadow of China, some remove duties step-by-step over the countries within this region have secured themselves next ten years. For Indonesia and Thai- land, who have voiced interest in sign- very promising starting positions for their textile and ing up despite not being members, this apparel industries in selected niches – and have set represents a considerable disadvan- themselves ambitious targets. Our portrait reveals just tage for future deliveries to the NAFTA how Indonesia, Malaysia, Thailand and Vietnam differ. countries and Japan. To this end, the development and the objectives of the four textile regions are also quite diver- gent, something that becomes appar- he local production of cotton, been long-term declines in textile and ent in the following country portraits. wool and silk has no com- industrial yarns registered in Indonesia. mercial meaning in Indone- Malaysia has managed to extensively Indonesia: established player T sia, Malaysia, Thailand and maintain its output of textile yarns. In within the textile market Vietnam. If we add the manmade fiber Thailand, the production of textile fila- With exports increasing from 8.3 bil- production output of the countries in ment yarns declined, while industrial lion to 12.4 billion US dollars between 2014, this totals 3.4 million tons (t) ac- yarn manufacture increased slightly. 2005 and 2014 (source: the WTO), the cording to information supplied by The Vietnam has been producing polyam- Indonesian textile and apparel indus- Fiber Year GmbH. This corresponds ide since 2010/2011, with this industry try has firmly established itself among to a 5.4% share of global output. Nine developing dynamically in both textile the top ten within the textile sector. years prior to this, when the Multi Fibre and industrial yarns, albeit at low levels. According to information provided by Arrangement (MFA) ended and quotas Acrylic fibers are only manufactured in Indonesia’s Ministry of Industry, the and import duties were abolished, this Thailand and the country is the fifth- country manufactures around 1.8% of was 6.7% (2.6 million tons). Hence, largest producer in the world, although share and volume have remained at development has been stagnant since moderate levels. 2011 as in the case of the global market.

This picture changes slightly if we look Between 2005 and 2014, all four at the individual fiber types. Indonesia countries were able to increase their is the six-largest polyester producer in textile and apparel exports. To this end, the world, with Vietnam, Malaysia and Vietnam overtook Indonesia, which Thailand taking seventh, eighth and initially topped the rankings: the smaller ninth positions respectively. Further- country increased exports more than more, Indonesia doubled its produc- fourfold to 24.8 billion US dollars (US$) tion output of viscose fibers between and is now ranked considerably ahead 2005 and 2014 and has meanwhile of the largest ASEAN country (12.4 become the third-largest manufacturer billion US$). Coming in third and fourth behind China and Western Europe. In in the rankings are Thailand (8.0 billion turn, Vietnam is the world’s four-largest US$) and Malaysia (6.7 billion US$). producer of industrial yarn, despite the first equipment only being installed and However, the respective export surplus- commissioned in 2008. es developed differently and are in part of considerable national significance. Indonesia, Malaysia and Thailand New free trade agreements could cre- have had polyamide industries for ate new, or shift, geopolitical centers. many years now. However, there have This particularly applies to the TPPA

8 january 2016 | no. 23 | in focus global demand for textiles and textile products. Important export countries include the USA (with a more than 30% share), Europe (16%), Japan (almost 10%), Turkey (5%) and the ASEAN countries (around 7%). Just under 60% of exports come from the apparel and shoes sectors, with more than 40% originating from upstream textiles (status: 2013). Here, filaments, yarns and wovens made from manmade fibers play a major role. In all, Indone- sia manufactured, according to The Fiber Year GmbH, around 1.6 million tons of fibers and yarns in 2014, 94% of which were manmade fibers such as viscose, polyamide, polyester and polypropylene. Well-known manmade fiber producers include TIFICO, Asia Pacific Fiber (Texmaco), Mutu Gading Tekstil and Indorama. Virtually all cotton is imported.

Indonesia's textile history began with batik The fiber, textile and apparel industry Work program of the International dyeing, created cen- is among the oldest and strategically Labour Organization simultaneously turies ago in Indonesia most-important industries in Indonesia. ensure better working conditions and above all on the island However, its textile history began with health and safety measures. The suc- of Java, and has been awarded world heritage batik dyeing, created centuries ago cessive increases in the minimum wage status by UNESCO. in Indonesia above all on the island of are however a challenge. To this end, Java, and has been awarded world the minimum monthly wage in 2012 heritage status by UNESCO. The larg- rose by up to 40% to between 80 and est Southeast Asian country did not 160 US$ for apparel workers. In 2013, establish its apparel industry until the growth again totaled around 18% 1970s, just like many other Asian coun- on average, rising to 44% in Jakarta. tries. The German-Indonesian Chamber Here, Indonesia is unable to compete of Industry and Commerce (AHK Indo- with ‘real’ low-wage countries such as nesia) counts around 2,900 companies Myanmar, Bangladesh, Pakistan, Laos within the textiles and apparel sector. and Cambodia. However, even though Most enterprises are concentrated in some companies are relocating, the the Central Java province, with head- country does not need to fear a mass quarters in the capital city, Jakarta. exodus according to the opinions of industry experts. Because there are still Low labor costs and numerous cor- regions with low wage costs within the respondingly inexpensive workers are archipelago. With this in mind, many the decisive reasons for the country’s of the factories still manufacturing in development and the success, but not Jakarta are expected to relocate to the the only ones. Special state subsidies provinces in western and central Java make the country attractive to foreign over the coming years. companies wishing to set up factories in Indonesia. Agreements between the High profit margins trades unions and international cus- Further favorable prerequisites speak tomers or initiatives such as the Better for companies remaining, or establish- in focus | no. 23 | january 2016 9 Vietnam

94.3 million

Vietnam n World’s fourth-largest producer of industrial yarn Myanmar n Increased textile and apparel exports more than fourfold to 24.8 billion US dollars (US$) and is now ranked considerably ahead of the Laos largest ASEAN country (12.4 billion US$) n Vietnam is currently the world’s fourth-largest exporter of apparel n Modernization of machine technology, as well as producing more textiles and materials in the Thailand country n Still demand for automation for production processes

Cambodia

n Around 6,000 companies manufacturing textiles and apparel. Approx. 60% of the enterprises are located in Southern Vietnam.

Brunei Darussalam

Malaysia

Singapore

Indonesia

Malaysia

30.5 million

n Malaysia is no longer a low-wage country, with Indonesia the result that many labor-intensive industries around the textiles, leather and footwear 256 million sectors have relocated to other countries and others will also follow n Six-largest polyester producer in the world n Market experts believe it is important to invest n Become the third-largest manufacturer of viscose fibers behind China and in the further expansion of the downstream Western Europe. weaving and knitting processes for fibers and n Indonesia manufactured, according to The Fiber Year GmbH, around yarn capacities in order to be able to further 1.6 million tons of fibers and yarns in 2014, 94% of which were manmade process locally-manufactured fiber materials in fibers such as viscose, polyamide, polyester and polypropylene. Malaysia. This approach would also enable a n Reorientation of domestic manufacturers toward higher-end products step-by-step increase in apparel exports. n Modernization is urgently required to be able to be successful against such low-wage competitors as Myanmar or Cambodia

n More than 1,500 textile and apparel compa- nies with around 40,000 employees, manu- n Around 2,900 companies within the textiles and apparel sector. facturing both for the domestic market and Most enterprises are concentrated in the Central Java province, export. with headquarters in the capital city, Jakarta.

10 january 2016 | no. 23 | in focus Thailand

68 million

n The hitherto low-wage mass production is to be replaced with higher-end, innovative ing themselves, in Indonesia. Here, since the government cut energy tariffs and creative products. textile enterprises profit above all as a result of falling oil prices. Known n Thailand is able to support itself on from the large domestic market and deficiencies still include old machines competitive advantages including modern technology, along with qualified workers the young, growing population of 260 and equipment, which are still not of and an understanding of quality. million with rising private consumption, a generally competitive technologi- n German machines in demand, Thailand is which – according to forecasts sup- cal standard despite the introduction home to considerable investment in semi- plied by Germany Trade & Invest (GTAI), of a subsidy program. According to automated and fully-automated systems and equipment (for example, automatic the business development agency of information supplied by the Indonesian cutters). the Federal Republic of Germany – is industry ministry from 2011, around 4 expected to generate 5% growth in real million spinning, 200,000 weaving and terms annually. Unlike in China, profit 34,000 knitting machines that are more

n More than 2,000 companies active in the margins are also extremely high ac- than 20 years old are in operation in apparel sector and a further 2,000 in the cording to statements from most mar- Indonesia. Modernization is urgently textile industry in 2013, including 82 registe- ket players. In view of the meanwhile required to be able to be successful red apparel exporting companies cooling economy, pressure is however against such low-wage competitors as building for companies focusing on Myanmar or Cambodia. Many, although

New free trade agreements could create new, or shift, geopolitical centers. This particularly applies to the TPPA (Trans-Pacific-Partnership Agreement), which was signed in October 2015.

their domestic markets. To this end, not all textile companies, are taking the Indonesian press reported on tens this path. To this end, textile machine of thousands of jobs lost in the sector imports in Indonesia totaled – ac- in 2015. Reasons for this are growing cording to the GTAI – 940 million US$ (cheap) imports, along with the vol- in 2014. Primary suppliers of these ume of unofficial imports. Indonesia’s machines are China and Japan, with textile imports grew by a factor of five Germany providing a (growing) share of between 2004 and 2014, while the cor- 11%. The national Investment Coordi- responding exports merely almost dou- nating Board of the Republic of Indo- bled. To this end, the AHK claims that nesia (BKPM) anticipates falling textile manmade fiber yarn and fabric imports, machine imports in 2015, with rising for instance, grew more strongly over imports again in 2016. the past five years than their exports, even though their absolute volumes 2030: textiles are the largest remain considerably lower. export sector in Indonesia According to current GTAI information, Modernization urgently required the Indonesian economy is currently There are several challenges: Indone- experiencing a cooling, with double- sia lacks free trade agreements, such digit falls in exports and imports in as those its competitors Malaysia and 2015 caused by low raw material and Vietnam have signed, or will sign, with energy prices, among other factors. In the USA and other countries (through 2016, foreign trade is however expect- the TPPA) or with the EU. The textile ed to increase again and the economy exports are suffering in part as a result will improve. Positive economic impulse of long delivery times due to frequently is required, as the Indonesian govern- considerable reloading activities at ment has set itself very ambitious tar- shipping ports. The industry has been gets for the textile and apparel industry. dealing with increased energy prices To this end, the government hopes that in focus | no. 23 | january 2016 11 exports will increase from around 10 plication markets such as the construc- billion US$ in 2009 to 54 billion US$ tion industry, the automotive sector in 2025. Over the same period, em- and medicine. Today, Indonesian yarn ployment in the sector is supposed to manufacturers are producing specialty increase from 1.4 million to 3.1 million. yarns such as bicomponent yarns, The state hopes that it will be able to tire cord and yarns for fishing nets. secure itself a four to five percent share All this shows that there is a develop- of the foreign demand for textiles. ment basis within Indonesia and that The government has joined forces with the country will continue to be a strong the Indonesian Textile Association (API) player within the textile sector. to draft a corresponding expansion roadmap. According to information Malaysia: strong with brands and from the AHK, textiles will be Indone- raw materials sia’s largest export sector in 2030. Malaysia’s strength within the apparel industry stretches back to the 1980s. According to market experts, there At the time, the country was establish- are opportunities in strengthening the ing itself as a contract manufacturer of domestic value chain with the fibers high-end branded apparel for Marks & and wovens segments. To this end, the Spencer, Tommy Hilfiger, Adidas, Nike import of woven and knitted products all the way through to Ralph Lauren. could be reduced, followed by a coor- Meanwhile, the industry has developed dinated expansion that the large do- from trader and OEM manufacturer to mestic market could quite easily cope become an internationally-oriented de- ranges from spinning, knitting and with. In Indonesia, the rising standard sign and brand supplier along the entire weaving through to dyeing, printing, of living is demanding increased offer- value chain. screen printing through to embroidery. ings of high-end textile fibers and yarns Malaysia has more than 1,500 textile as well as branded apparel. The Global A wide ranges of materials is used – and apparel companies with around Business Guide Indonesia is above all ranging from cotton and silk, synthetics 40,000 employees, manufacturing both supporting the reorientation of domes- such as polyester all the way through for the domestic market and export. tic manufacturers toward higher-end to spun fabrics and recycled materials. products, as it is particularly the foreign Most of these materials are manufac- Thanks to its strong petrochemical apparel brands that are flourishing with- tured by the local textile industry, which industry, with its substantial oil and gas in the country. There is also potential was established several decades ago reserves, Malaysia has the necessary for industrial textiles or industrial fibers with the arrival of the first weaving plant raw materials to manufacture textile and nonwovens for corresponding ap- in the country. Today, the value chain fibers. Some companies also specialize

Facts and figures 2015 Indonesia Malaysia Thailand Vietnam Population 256.0 million 30.5 million 68.0 million 94.3 million Pop. growth up to 2020 0.8% (AAGR) 1.4% (AAGR) 0.3% (AAGR) 0.9% (AAGR)

GDP per capita in US$ 3,511 10,654 5,612 2,233

Income category Lower middle income Upper middle income Upper middle income Lower middle income

Inflation 4.6% 2.4% -0.3% 2.5%

Unemployment rate 5.8% 3.0% 0.8% 2.5%

Source: International Monetary Fund, World Band Group and the U.S. Census Bureau

12 january 2016 | no. 23 | in focus Malaysia has established itself as an internationally- oriented design and brand supplier along the entire value chain.

However, the importance of the indus- try has declined in terms of the national sector export rankings for Malaysia: here, textiles and apparel came in in ninth position even back in 2011, ac- counting for 2.3% of exports. In 2014, they constituted merely 1.4% of total exports.

Textile impetus thanks to the TPPA? Status and performance of the textile and apparel industry could however improve once again: according to a PricewaterhouseCoopers (PwC) study, the textile industry is the biggest winner among the sectors within the country when looking at the exports within the context of the TPPA, which started in October 2015. The initiated step-by- step removal of duties will also benefit in the production of industrial textiles and 2014, the production of manmade apparel manufacturers in Malaysia, such as geotextiles for the construc- fibers grew from 0.4 to 0.5 million tons as 59% of their exports went to TPPA tion and heavy industries or in flame- and hence by 4.3% annually on countries in 2014. To this end, just retardant, antibacterial, breathable average. 10% lower duties for the main cus- and oil- or water-resistant materials. In tomer the USA, for example, would terms of yarn trading, Malaysia is a net Over the same period, Malaysian generate annual savings of 190 million importer, as more than 50% of local exports of textiles and apparel grew Malaysian ringgit (RM/44.68 million filament yarn production is destined from 3.8 billion US$ auf 6.7 billion US$, US$), estimates PwC. Further major for export. When it comes to the fiber according to WTO information – customers are TPPA member Japan, trade, the country has been a net whereby export surpluses rose from along with Turkey, Indonesia and China. exporter since 2009, predominantly 2.6 billion US$ to 4.1 billion US$ and Countries such as Vietnam, South importing raw cotton and exporting made up 16% of the country’s entire Korea and Germany are also emerging manmade staple fibers. Between 2005 balance of trade in 2014. customers.

Manmade Fiber production 2005 - 2014 (change in % AAGR/average annual growth rate) Indonesia Malaysia Thailand Vietnam Production of fibers/yarns 1.2 to 1.5 million tons 0.4 to 0.5 million tons 1.1 to 0.7 million tons 0.06 to 0.66 million tons 2005 - 2014 (+2.9%) (+4.3%) (-4.1%) (+30.6%)

Of which MMF (2014) 94% 96% 88% 63%

Viscose, acrylics, MMF types (2014) Viscose, PA, PES, PP PA, PES PA, PES, PP PA, PES, PP Production of nonwovens 0.1 million tons 0.1 million tons 0.2 million tons ./. (2014)

Source: The Fiber Year GmbH, Switzerland in focus | no. 23 | january 2016 13 However, there are also other general conditions, such as political, economic conditions that are impeding the further and social stability, well-developed development of the textile and ap- infrastructures, favorable cost factors, parel industry. Malaysia is no longer a attractive investment incentives, good low-wage country, with the result that English, a large reservoir of qualified many labor-intensive industries around workers and a high degree of legal the textiles, leather and footwear sec- certainty. The trend towards greater tors have relocated to other countries automation and energy efficiency is and others will also follow. The mini- cutting a swathe – on a moderate level mum monthly wage has been fixed in – through all sectors and offers incen- western Malaysia since early 2013 and tives for companies in the country’s stands at 900 RM (around 212 US$) – 2015 budget as well. plus social security contributions and supplements, making total wages con- However, the current macroeconomic siderably higher. Even though Malay- framework also harbors challenges. sia’s gross domestic product (GDP) in According to information provided by 2013 lagged behind Indonesia, with its the GTAI, GDP and economic growth six times larger population, and Thai- are expected to weaken in 2015 and land, which is twice the size – when it 2016, with foreign trade stagnating came to per-capita income, it exceed- and consumption growth weaken- ed its neighbors by a factor of between ing. Following peak levels of approved two and almost three. With the excep- investment in 2014 – with products tion of Singapore and Brunei, Malaysia purchased rising from 0.8 billion RM

Malaysia offers favorable general conditions, such as political, economic and social stability, well-developed infrastructures, favorable cost factors, attractive investment incentives, good English, a large reservoir of qualified workers and a high degree of legal certainty. has the by far highest levels of income to 1.2 billion RM in the textiles and apparel industry. Market experts believe and affluence. At 14 kg, the textile per- textile products sector – the govern- it is important to invest in the further capita consumption also exceeds that ment anticipates a fall in investment in expansion of the downstream weaving of Thailand (12 kg) and Indonesia 2015. There are slight falls in imports and knitting processes for fibers and (6 kg). However, the Malaysian market and exports expected for 2015 and yarn capacities in order to be able to is – with its 30 million inhabitants – rela- weak growth for both in 2016. Machine further process locally-manufactured tively limited. import growth is anticipated to merely fiber materials in Malaysia. This ap- be low single-digit. A stabilizing factor proach would also enable a step-by- En-route to becoming a remains private consumption. step increase in apparel exports. high-wage country Overall, Malaysia offers good develop- Nevertheless, Malaysia not only wants Thailand: fashion and design ment prospects: over the past few to grow by 5 to 6% per year by 2020, champion by 2030 years, the Malaysian economy has it also wants to develop into a high- Thailand’s textile and apparel sector is grown consistently and soundly and wage country and take the low-income changing: at the end of 2011, the se- has received impetus from being a groups with it at the same time. This vere flooding destroyed many factories, member of the ASEAN Economic ambitious target was once again high- causing billions in damages. In the first Community (AEC) and a signatory of lighted in the five-year plan submitted five months of 2012, textile exports trade agreements such as the TPPA. in May 2015. However, the objectives fell by 18.8% to 1.5 billion US$ and The country offers favorable general are not truly supported by a flourishing apparel exports by 9.2% to 1.05 billion

14 january 2016 | no. 23 | in focus making their mark: the Thai petrochem- ical group Indorama Ventures (IVL), one of the world’s leading manufacturers of polyester fibers, and the Japanese syn- thetic fiber specialist Toyobo together acquired the German manmade fiber producer PHP Fibers, which the two partners hope will lead to synergies for industrial fibers within the European, North American and Asian markets.

With its change in structure, Thailand is able to support itself on competitive advantages including modern technol- ogy, along with qualified workers and an understanding of quality. And Thai- land also covers the entire textile value chain – from raw materials (with the exception of cotton) all the way through to end products. According to The Fiber Year GmbH, of the around 0.8 million tons of fiber and yarn produced in 2014, 88% are manmade fibers, also including viscose, polyamide and poly- propylene. However, capacities and production volumes along the value chain are falling as a result of compa- nies relocating to other countries. To this end, decreasing export surpluses have been registered, although the country remains a net exporter within the fiber and yarn sector.

US$, according to information provided fashion trends. The hitherto low-wage German machines in demand by the GTAI, but mainly as a result of mass production is to be replaced With the exception of a few large for- the existing EU crisis. In early 2013, with higher-end, innovative and crea- eign fiber producers, further process- the government also introduced a legal tive products. The government is in ing is predominantly characterized by minimum daily wage of 300 baht (ap- the process of intensifying its activities domestic small and medium-sized en- proximately 8.20 US$), which resulted with export loans, promoting voca- terprises. According to information pro- in a direct increase in wages equivalent tional training and recruiting specialists vided by the AHK Thailand, there were to around 40%. Consequently, some of from all over the world with a focus more than 2,000 companies active in the mass production was relocated to on state-of-the-art technologies. And the apparel sector and a further 2,000 far more favorable neighboring coun- private industry is cooperating: to this in the textile industry in 2013, including tries such as Cambodia, Laos, Myan- end, the German-Thailand Chamber of 82 registered apparel exporting com- mar and Vietnam. Commerce (AHK Thailand) states that panies. Customers include Nike, Puma twelve companies have joined forces to and Fruit of the Loom, among others. These deep measures triggered a create the Thai Tex Trend partnership, Textile industry centers are, on the one rethinking and a reorientation, ac- with the aim of triggering innovation hand, located in the north of Thailand companied by a politically-supported within the textile industry and introduc- with its rich raw material reserves and, long-term plan. These include a switch ing modern weaving, knitting, dyeing, on the other hand, Bangkok and its to more demanding textile fibers, along finishing and printing technologies. surrounding areas and the east of the with a stronger orientation on new And two joint venture partners are also country. in focus | no. 23 | january 2016 15 Up to 1 million employees were ac- tile and leather processing machines the dominant customers remain the tive within Thailand’s apparel industry accounted, according to information USA (35%) and the EU (25%), con- in 2013, of which around 200,000 from the GTAI, for an above-average siderably ahead of Japan (11%) and were employed in the textile industry. share of 25% (96 million US$) in 2014. the ASEAN region (5%). The import These sectors therefore represent the AHK information verifies that Thailand of textiles and apparel fell by 3.2% to second-largest employer within Thai- is home to considerable investment in 4.8 billion US$ in 2013, mainly due to land’s manufacturing industry, with the semi-automated and fully-automated a decrease in imports of yarn, fibers, apparel industry making up 12.3% of systems and equipment (for example, wovens and other textile products gross domestic product. The range of automatic cutters). predominantly from Australia, Brazil, products manufactured in Thailand is Turkey and Asia. In contrast, imports considered to be very diverse, with an Following the crisis years of 2011 and of apparel, predominantly from China, extremely comprehensive production 2012, exports stabilized again in 2013 rose. With the emergence of the palette – ranging from high-tech syn- and – according to the GTAI – reached ASEAN Economic Community in 2015, thetic goods, wool and fashion prod- 7.5 billion US$ for textiles and 2.5 bil- the country hopes to be able to tap into ucts all the way through to bed sheets, lion US$ for apparel. In the same year, new markets. sleep wear and industrial textiles. production of textile fibers and wovens rose by 14% and by 7% in the case Lack of workers Modern technologies, particularly from of apparel. The most important export In addition to prospects, there are also Germany, form an important compo- markets were the ASEAN countries challenges relating to the country’s nent of the reorientation of the sector. (21%), Japan (11%), the USA (16%) competiveness within the international To this end, German imports of tex- and the EU (15%). In terms of apparel, market. To this end, the lack of workers

Investment in and the installation of new machines and systems helps increasing productivity and raising the level of quality.

16 january 2016 | no. 23 | in focus could result in bottlenecks. Further- Thailand Textile Institute (THTI) prepar- sized, companies manufacture textiles more, there is also increasing recruit- ing a long-term plan to transform the and apparel, employing around 2.5 ment competition from other sectors country into a fashion and textile design million people. The economic center is such as tourism in view of the low rate leader by 2030. The country’s position southern Vietnam, where around 60% of unemployment of 0.8%. as the regional center for fashion and of textile and apparel companies are textile trading is to be consolidated by located. About half of the 2,000 state- However, the economic situation 2016. The second phase sees Thailand owned, private and foreign factories for reveals a tentative upturn. Following developing into a center of product off-the-peg apparel can be found in Ho falls in exports and imports in 2015, design and globally-leading brands by Chi Minh City and surroundings, with the National Economic and Social 2021. In the third phase, the country a third in the capital Hanoi, 15 percent Development Board (NESDB) forecasts will strive towards becoming the world in Da Nang and the rest in other cities gross domestic product (GDP) growth market leader in fashion and textile and regions. According to the delega- of between 3 and 4 percent for 2016. design by 2030 by integrating its own tion of German Business in Vietnam And the government is also looking contemporary culture into the sector. (AHK Vietnam), the sector is, based on optimistically into the future, with the In addition to this long-term plan, it exports, meanwhile the second most important goods category after com- In Thailand the lack of workers could result in bottle­ munications equipment and devices. A fast development: Vietnam managed to necks. Furthermore, there is also increasing recruitment establish its entire ready-to-wear sector competition from other sectors such as tourism in view in just 15 years – thanks to reacting of the low rate of unemployment of 0.8%. swiftly and flexibly to new orders and conditions, along with extensive gov- may be attractive to focus investment ernment measures. on capital-intensive spinning facili- ties, to then have the materials further These include switching from a cen- processed in neighboring countries. tralized planned economy to an open Final processing and finishing in terms market economy, as well as member- of product design and branding could ships in numerous trade regions and then be carried out in Thailand again. agreements such as the Association However, the fact that creativity and of Southeast Asian Nations (ASEAN), innovation are necessary despite all the Asean-China Free Trade Area the planning is showcased by a series (ACFTA) and the World Trade Organiza- of interesting, high value-added textile tion (WTO). Signing up to the TPPA is niche markets. The THTI lists examples opening up extensive trade opportuni- of these: bullet-proof vests, nanotech- ties for the country. For the Vietnam- nology shirts and bed sheets, fire- ese apparel sector, this means – for resistant couch covers and mosquito- instance – the removal of the 17.2 resistant clothing for monks. percent duties on exports to the USA, the country’s most important customer. Vietnam: a flawless ‘Tiger’ It is believed that this will lead to a Vietnam is currently the world’s doubling in US exports within the textile fourth-largest exporter of apparel and and apparel sector. And the members increased its exports of textiles and Canada, Japan and Australia are – in apparel more than ten-fold to 24.8 addition to South Korea – among the billion US$ between 2005 and 2014. traditional customers of manufactured In 2015, the country strove towards goods. Here, Vietnam is benefiting double-digit growth in exports to 28 bil- from the fact that many customers are lion US$, states the GTAI. With this, the looking for alternatives to China and country is ahead of Indonesia, Malaysia Bangladesh. The pending enforcement and Thailand. According to the Vitas of the free trade agreement between industry association, around 6,000, Vietnam and the EU (with Germany predominantly small and medium- and the United Kingdom as the primary in focus | no. 23 | january 2016 17 importers) is expected to be followed dustrial fibers in the Dong Nai province, continued pay in the event of illness by an intensification of trade. In addi- for instance, with a further 274 million and also paid vacation, employment tion to this, Russia and the Middle East US$ being spent on a textile factory for protection and maternity leave. Making are developing as new markets for the manufacturing cotton and synthetic fib- an important contribution here is the apparel sector. ers, built in the Binh Duong province by Better Work program of the Interna- a Taiwanese company. tional Labour Organisation, which has This expansive export trade is funda- led to greater occupational safety and a mentally down to foreign companies Vietnam offers good conditions for reduction in costly accidents at par- manufacturing in Vietnam. Since 2014, projects of this kind. To this end, wages ticipating companies. These improved companies are increasingly investing in are about two-thirds below those in conditions are bearing fruit: companies the country and foreign direct invest- China, with the minimum wage in from Hong Kong, China, South Korea ment (FDI) is growing. Vietnam was major cities 145 US$, although this is and other countries are building new able to register a plus of 8.4 percent expected to rise by around 12 percent textile and apparel factories in Vietnam compared to 2014 between January in 2016. However, wages in low-wage or are relocating to Vietnam. and September 2015 alone, with total countries such as Bangladesh, Cam- investment coming in at 9.7 billion US$ bodia, Laos and Myanmar remain Increasing automation – a trend that is expected to continue considerably lower, which may slow However, the country still needs to according to the GTAI. These invest- down the relocation of apparel factories simultaneously master several chal- ments are above all targeted at labor- to Vietnam. But this industrious country lenges. Above all, these include the intensive factories, also those in the is attracting investment with ever better modernization of machine technology, textile and apparel industry. According arguments – such as motivated work- as well as producing more textiles and to information from the AHK, 660 million ers, good working conditions with, for materials within the country, also with US$ were invested in a textile factory of example, regulating working hours and a view to complying with the local con- a Turkish enterprise to manufacture in- overtime, social security contributions, tent stipulations of the free trade agree-

Vietnam managed to establish its entire ready-to-wear sector in just 15 years – thanks to reacting swiftly and flexibly to new orders and conditions, along with extensive government measures.

18 january 2016 | no. 23 | in focus Making an important contribution here is the Better Work program ments. Around 90% of export revenues of the International urgently required (further) qualification are – according to information from the Labour Organisation, of employees, which the government is GTAI – still generated from apparel (in which has led to greater supporting by investing in education. 2013). In accordance with AHK infor- occupational safety and mation, a total of 70% of textile activi- Fifth-largest textile and apparel ties are focused on sewing and 23% a reduction in costly manufacturer by 2020 on spinning and weaving. The reason accidents at participating Despite all these challenges, market for this is the long-standing tradition of companies. experts believe that the small, powerful so-called cutting and sewing business- country will see positive development. es in Vietnam, which have not been (with an annual 4,600-ton capacity), Over the past few years, Vietnam has concentrating on large-scale spinning a textile factory with a dyeing plant succeeded in maintaining macroeco- and weaving for very long. In contrast, (5,000 tons per annum) and an apparel nomic conditions with low inflation, textiles are still not being manufac- factory for knitwear including a waste supported by globally-falling oil prices tured in sufficient quantities. Although water treatment plant. To support the and continually-accelerating economic Vietnam has – according to The Fiber domestic industry, Vinatex is plan- growth. Its expansive foreign trade Year GmbH – increased its production ning to invest around 440 million US$ based on free trade agreements, rising of manmade fibers from around 66,000 (9.4 trillion dong) in textile and apparel consumption (a plus of 6.3% in 2015, tons in 2005 to 660,000 tons in 2014, projects (above all, weaving and dye- according to Deutsche Bank) as a a ten-fold increase, net imports of ing plants) as well as in infrastructure result of the young population (aver- manmade fibers and filaments however before 2017. age age: 29 years) and increasingly have simultaneously also increased, intensive activities in the real estate with a similar trend in downstream In the meantime, domestic added and construction sectors can by all weaving and knitting. Against this value is successively rising, according means be interpreted as signs of a background, the GTAI reports of 70% to GTAI reports. There is also – follow- national upturn. Among other things, of all apparel materials being imported, ing the manufacture of hitherto simple the government is supporting this predominantly from China. products – a trend towards higher-end development with initiatives for promot- items of apparel and the acceptance ing foreign direct investment, reforms of To be able to offer demanding custom- of smaller orders. However, there is still institutions and administration, controls ers rising quality standards, there are demand for automation for production on inflation, macroeconomic stabiliza- plans to establish a domestic sup- processes. To this end, it has for some tion and sustained growth. ply industry and to expand the textile time been evident that investment in, value chain. According to information and the installation of, new machines Furthermore, Vietnam is planning to provided by the GTAI, this is the objec- and systems is gaining significance – become one of the five largest textile tive above all of state-owned company aimed at increasing productivity and and apparel manufacturing countries in Vinatex (Viet Nam National Textile and raising the level of quality. Furthermore, the world by 2020. Until then, exports Garment Group), the largest Vietnam- small companies are deploying used are supposed to reach 20 to 22 billion ese apparel manufacturer. Correspond- machines, whose import – unlike in US$. Furthermore, the vision also sees ing projects are underway particularly in China – Vietnam has never prohibited, self-manufacturing rise to 70% (2015: central Vietnam, where labor costs are which has resulted in a considerable 55%) by 2030. In line with a striking im- even lower than in the economic hub of shift away from China and in particular age of Asia in the 1980s, we can say: southern Vietnam. According to reports from Taiwan and Korea. In addition to the tiger about to pounce. (tho, ae) from Vinatex, the company launched this, it is also reported that the sub- around 45 investment projects worth sidiaries of foreign companies are also Andreas W. Engelhardt is the founder and around 239 million US$ in the first six securing themselves new and used general manager of The Fiber Year GmbH. The months of 2013. Within this context, German machines. As a result of grow- company was established at the end of 2010 14 new plants alone will produce yarns ing reverse integration within Vietnam’s with a view to provide international expertise, knowledge, analyses, strategy consulting and and fibers. In March 2015, Vinatex textile and apparel industry, the market customized solutions to the international textile announced the 53.3 million US$ (1.14 opportunities for high-end German ma- industry. trillion dong) construction of a 20-hec- chines should increase, estimates the tare textile and apparel complex in AHK Vietnam. With regards to Vietnam, the Quang Nam province, which also catching up in terms of automation will includes a fiber manufacturing facility undoubtedly take a while, as will the in focus | no. 23 | january 2016 19 Oerlikon Neumag focusses on polyester nonwovens

Polyester, a raw material with numerous possibilities, interesting fiber parameters and extraordinary characteristics especially for the application in technical nonwoven products, is becoming increasingly significant in the spunbond sector.

onwovens which are produced directly from poly- mer chips, today already represent nearly 50% of all applied nonwovens and the percentage is N clearly growing. The largest percentage is nowa- days applied in hygienic, medical and wipe products – the so-called disposables. However, spunbonded fabrics and meltblown are also becoming more and more significant in technical applications. Based on their technical and econom- ical advantages, they frequently substitute carded nonwoven material. This trend, which has already been implemented with hygienic nonwovens, can presently clearly be observed with the so-called durables.

With nonwovens which, for example, are used for home construction, the percentage of spunbonded fabrics, melt- blown and the combination thereof, is presently above 80%. Also already more than 50% of filter nonwovens are being produced directly from chips. With nonwovens for geotextile applications only about 35% of meltspun nonwovens are used, just to name three large application areas.

Whereas today, with hygienic nonwovens, mainly polypro- pylene is the basic material applied, polyester and other polymers, such as PLA or also bico materials are increasingly being used. As the world market price for PP is now higher than that for PET, and this development will probably con- tinue, the trend for all applications is to use polyester as raw material.

Apart from the raw material price, a significant driver on the technical application sector is the increasing orientation of the construction industry towards topics such as sustain- ability, thermal protection, energy consumption and (sound) insulation together with all the corresponding legal directives.

Polyester nonwovens fulfil the high demands on tenacity, thermal resistance and function of- ten with a low material application and without additives. Like functional clothing, even thin layers of nonwovens can protect against cool- ing and only absorb minimum moisture. They, for example, easily adapt to roof constructions,

20 january 2016 | no. 23 | innovation and technology can readily and quickly be used as Improved strength at lower basis weight (Benchmark example) insulation, replace plaster in façade systems or bridge over cracks and Bitumen roofing substrate serve as footstep sound insulation. MD CD MD CD They are a good alternative to foam, glass or mineral wool in redevelop- ment work and new constructions, especially considering that these do not always have the necessary flex- ibility for an optimal sealing. Last but not least, the nonwovens are resist- ant against environmental impacts and are, to a great extent, recyclable.

As a machine and plant engineer- in N/50mm tensile strength ing and manufacturing company, Oerlikon Neumag has decades of experience in processing polymers to fibers. The worldwide largest per- 2 2 centage of staple fibers and carpet Oerlikon Neumag product 170 g/m EU benchmark product 180 g/m yarn fibers are today produced on Oerlikon Neumag plants. This spinning competence has successfully been transferred to the spunbond technology, so that now, economical and also flexible processes from chips to the finished nonwoven roll can be supplied.

With the Oerlikon Neumag spunbond technology, high spinning speeds are possible enabling the production of high-tenacity filaments and PET filament nonwovens with an extremely low shrinkage. A permanently stable spinning process, the new energy-efficient filament drawing and opti- mized filament deposition onto the forming-wire, guarantee highest plant efficiency with lowest waste rates and maxi- mum nonwoven quality.

With technical applications, the web strength is very crucial. The filaments need to have a very high tensile strength and often also allow a high elongation. As the raw material price during spunbond production accounts for about 75 – 85% of the production costs, the high technical demands must be attained with the lowest possible web-weight and opti- mized raw material usage. Benchmark comparisons with EU products common on the market result in the fact that with a comparable web-weight, higher web strengths can be at- tained with the Oerlikon Neumag spunbond technology.

Conversely this means that the necessary strengths can be attained at lower web-weights. Trials have resulted in the fact that this alone saves more than 5% on raw material.

innovation and technology | no. 23 | january 2016 21 Low operating costs play an important role with investment decisions for a modern spunbond plant. Besides the com- modity prices, the energy expenses are the second largest cost factor of the operating costs. Oerlikon Neumag has made extensive developments especially in the spinning area for reducing the specific energy consumption. An improve- ment of nearly 20% less energy consumption – just for the spinning section – has been attained with the new generation of Oerlikon Neumag spunbond plants. In comparison to clas- sic PET spunbond processes, the reduction of the energy consumption totals about 30%.

Further cost drivers are per- sonnel expenses as well as waste rate, downtimes and maintenance costs. Over- all it could be proven that,

22 january 2016 | no. 23 | innovation and technology Example conversion costs (excl. raw material)

Bitumen roofing substrate production

Oerlikon Neumag process

Competitive spunbond process

in comparison to a classical PET spunbond plant, the sole conversion costs are 20% less, partially even more than 30% less for the manufacturer.

Through the consequent focussing on technical applica- tions for their spunbond technology, Oerlikon Neumag has established comprehensive process know-how for all the processes including the necessary inline processing steps and can therefore now offer their customers appropriate production solutions for geotextiles, bitumen roofing sub- strates and roofing underlayments.

However other technical products such as carpet backing or filter media can also be profitably produced with this tech- nology. The substantially expanded application pilot plant in Neumünster with many alternative bonding technologies including high-speed needling, is available for demonstra- tions and customer trials as well as for further product and process developments. (che, imm, pku)

This article has been published in AVR 5-15, pages 46-50.

innovation and technology | no. 23 | january 2016 23 Airbag yarns – polyester on the rise

Front airbags, side airbags, knee airbags, seat upholstery airbags, rear seat airbags, rear end airbags and belt airbags – anybody using cars or flying, riding a motorcycle or even a bicycle today is protected by means protective devices. The airbag has been on the rise ever since the American President Lyndon B. Johnson explained in the 1960s: “We can no longer tolerate unsafe automobiles!”. Since then, the technology has been constantly further developed and improved.

or many years, nylon was the the consistent further development of The US American market is stable, chosen material from which safety technology. In the United States whereby its market for nylon yarns is airbags were made. alone, growth is expected to be 40 % being squeezed by the slowly rising F Over the past few years, the by 2020 compared to 2011. share of polyester. There were initially share of airbags being manufactured several test runs with the alternative from polyester yarns has gradually The by far largest exporter of nylon material, followed by a longer wait-and- increased – not least as a result of yarn is China, which supplied the world see phase. From 2015/2016, several the force majeure declarations for market with around 91,200 tons of new models are to be equipped with polyamide 6.6 issued by several major nylon yarn in 2014. China is followed more polyester airbags. Whereas the producers. by Japan, with less than half China’s share in 2014 was still around 3,500 volume and trailing far behind in third tons per year, the demand is expected Greater safety as a result of place is Taiwan, which was neverthe- to increase to up to 14,500 tons per more airbags less able to increase exports of the year by 2020. The demand for airbag yarns is yarn by 74 percent in 2014. The largest constantly rising due to the global importers are Thailand, South Korea, The European airbag market has a increase in the number of cars and China and Taiwan. scope of around 32,000 tons per year. This market is very clearly dominated by nylon (PA6.6). The polyester yarn Airbag yarn capacity by North American supplier in 1,000 tons market share lies at just 2,000 tons per year (status: 2012). Even if vehicle sales

60 in Europe stagnate, growth is neverthe- less expected in the airbag market: on the one hand due to the larger number

50 of vehicles being equipped with airbags and, on the other hand, as a result of the greater number of airbags in each

40 car.

Never change a winning team?

30 Manufacturing airbags requires high- performance materials that absorb mechanical energy and withstand high 20 mechanical loads and can also be used at increased temperatures. Polyam- ide 6.6 fulfills all these demands. Until 10 today, the majority of airbags is manu- factured from this material. The fact that polyester has to date been unable 0 to make its mark within the sector is 2010 2011 2012 2013 2014 2015 2016 2017 2020 down to tradition, among other things. Nylon demand Polyester demand Nylon capacity As in many sectors of industry, the

24 january 2016 | no. 23 | innovation and technology motto ‘never change a winning installations for evening the air team’ also applies here. How- flow profile. ever, due to the fact that the number of airbags in a single The first systems in China vehicle is rising, the price fac- are already in operation. tor is playing an increasingly State-of-the-art polyester important role. Compared to airbag yarn installations have polyamide, polyester is con- been successfully operating siderably cheaper, but loses in North America since the some of its raw material price spring of 2015. advantage during the produc- tion chain. The development continues New findings are opening up Even though polyester in airbag new possibilities yarns remains far behind that of In the past, polyester was deemed polyamide, manufacturers are look- unsuitable for airbags, as it has poorer ing optimistically towards the future. heat and moisture resistances, two Various airbag producers are promot- properties that are essential for airbags ing the dynamic development and are due to the fact that they they have to working on systems that will retain function and be durable in all regions of for the polyester-relevant special the cost advantages of polyester in the world and under the most diverse requirements – for example, melt vis- modular production. Here, airbag yarn conditions. cosity and filtration, along with down- systems from Oerlikon Barmag offer stream production processes. They superlative prerequisites. The interest In general, airbag yarns must be able to have round spin packs with 3LA filtra- in polyester at least is expected to retain at least 85 percent of their tensile tion and function using a forced sealing provide yarn manufacturers with re- strength even after several thousands principle. The cross-flow quenching markable growth in the future. of hours in warm and in humid condi- system for cooling is equipped with (may, sbu) tions.

New developments and research have shown that polymers should have industrial yarn qualities in order to fulfill the requirements of airbag materials.

On the safe side with Oerlikon systems With the Oerlikon Barmag systems, manufacturers are perfectly equipped for both materials. The differing flow behaviors of the raw materials poly- ester and polyamide 6.6 only require adjustments to the spinning system when configuring an airbag yarn machine. Here, it is primarily about the highly distinctive melt viscosities. The yarn cooling system and draw unit are not affected.

The spinning plant components of the Oerlikon Barmag systems are designed The demand of airbag yarns is constantly rising.

innovation and technology | no. 23 | january 2016 25 WinTape and WinTape mini open up new possibilities Automatic tape yarn winder WinTape heads for success Since being launched two years ago, the automatic tape yarn winder WinTape with its nearly 2,000 installed positions has become firmly established in the market. The automatic precision winder for tape yarns is particularly convincing in terms of its process window, efficiency and investment costs.

hanks to the fully automatic doffing, WinTape needs fewer operators. This is also due to T the two parking positions for full packages as well as a magazine for four empty tubes. As a result, WinTape can run for up to 24 hours without an operator, for example in the case of tape production for carpet backing. With a winding speed of up to 800 m/min and a denier range of 270 to 3,000 dtex Win- Tape covers a wide process window.

WinTape mini for circularly woven yarns The advantages of WinTape are now also available for the production of The WinTape mini has been designed especially for the production of tapes for circular weaving processes. sacks and big bags. With WinTape mini an automatic tape yarn winder is enter- yarns intended for circular weaving to 2,500 dtex this mini is huge. Com- ing the market that was specifically processes. With a winding speed of bine the WinTape mini with the Evo- designed for the production of tape 800 m/min and a denier range of 400 Tape 800 extrusion line for best results.

The perfect pair: EvoTape and WinTape In combination with the EvoTape extrusion line, WinTape unfolds its full potential. Up to 25% less energy con- sumption, about 20% fewer operators needed, no waste during bobbin trans- fer in tape production without prepa- ration through immediate recycling – these are just some of the advantages this perfectly compatible pair provides.

EvoTape is available in the follow- ing configurations: carpet backing, geotextiles and baler twines. Possible end uses are warp and weft yarns for carpet backing, yarns for artificial turf, geo and agrotextiles, ropes, baler twines, sewing thread, tarpaulins, cable fillers and even jute substitutes such as woven carpets or coffee sacks. (bey) The economic way of tape yarn production: The automatic WinTape winder can run for up to 24 hours without operator at speeds of up to 800 m/min.

26 january 2016 | no. 23 | innovation and technology Capacity for industrial yarns expanded Brilen invests in Europe

Brilen SA, manmade polyester industrial yarn producer, has completed its extensive project by successfully commissioning the third expansion stage with plant builder Oerlikon Barmag. With this, the European market leader in polyester industrial yarns has increased its total capacity to 15,000 tons per year.

ver the last two years, the 100% performance with Oerlikon European market leader Barmag facilities. This was confirmed for PES industrial yarns again by our last project”, explains O has invested in three new General Manager José Antonio Rodri- spinning plants. Brilen is able to offer guez, talking about his decision to pur- a wide range of polyester industrial chase. In particular, the energy-efficient yarn types to the market at a very high e-save certified plant concepts from quality and based on fast and reliable Remscheid lend Brilen’s yarn produc- service. tion a significant competitive edge.

One of its new spinning lines is primar- The flexibility of the tailor-made plant ily focused on manufacturing SLS concept was another factor. On three yarns for tarpaulins, tents and banners; individual lines, three different or similar another spinning line is predominantly products can be produced at the same dedicated to seat belt yarn production, time with highly-efficient eight-end with the final, third line being able to technology. produce extremely high-quality yarns for geotextile applications. Complete process from a single source Thanks to its continuous investment in Brilen is vertically integrated to be able the state-of the art Oerlikon Barmag to influence the quality of its yarns: the technologies, Brilen has become prob- spinning plant is supplied with first- ably the most reliable supplier with a class raw material as a result of its own long-term project program focused in PET chips production with a capacity Europe. The trendsetter, which belongs of 250,000 tons per year. to the private Samca Group, manufac- tures exclusively in Barbastro located But the collaboration between the in the North of Spain. For years, the Spanish industrial yarn specialist and company has been relying on the Oerlikon Barmag goes even further: engineering competence and technol- both companies, as well as Nurel ogy from Remscheid (Brilen’s sister company and when it comes to its manufacturer of textile poly- innovative quality amide yarns), are also yarns. “From collaborating closely experience, on R&D. (bey) we achieve

Brilen's yarns find their application in technical products such as tarpaulins, tents, seat belts or geotextiles, to name but a few. on the markets | no. 23 | january 2016 27 Artificial turf market coming back to life

The artificial turf industry has been Particularly the durability and experiencing an upturn for a short mechanical robustness of synthetic while now. Artificial lawns made from grass makes it hugely attractive for many applications. One of the most polyethylene fibers (PE) or polypropylene important features for the sports sector fibers (PP) are becoming increasingly is the fact that artificial grass can be popular not only in sports, but also in used all year round without any qual- gardening and landscaping and the ity compromises virtually, regardless leisure and homes sectors. of the climatic and geographic condi- tions. And it is this benefit that is now also being exploited in the leisure and he history of artificial turf goes homes sectors. To this end, artificial turf back as far as the 1960s, can today be found in many hotel com- when the first sports facilities plexes, golf courses and front gardens, T were equipped with synthetic for example. fibers made from polyamide – which looked and felt more like thick carpet- Add to this the fact that artificial turf re- ing at the time. The sector has radi- quires less care and maintenance than cally changed since then. And the fact natural grass. The weave comprising that artificial turf has been criticized for synthetic fibers does not need to be causing friction and impact burns is – watered, cut or fertilized, which in the according to manufacturers – a thing of long term makes it a less expensive the past. Due to the huge technological and more environmentally-friendly progress made over the past few years, alternative to natural lawn. Watering not only have the material properties of lawns plays a huge role particularly artificial turf improved significantly, the in North America, with many regions appearance and texture have become plagued by ongoing drought. For this increasingly like those of natural grass. reason, some communities are prom-

28 january 2016 | no. 23 | on the markets Tape and monofilament yarns for the production of artificial turf are pro- duced on machines and systems manufactured at Oerlikon Barmag's Chemnitz site.

ising public facilities and residents discounts or cash payments if they replace their natural lawns with artifi- cial turf. To this end, the US registered growth within the artificial turf industry amounting to 25% in 2015, while the figure was around 15% in Europe. Similar growth is expected for the coming year as well, whereby the landscaping sector is believed to harbor great development potential. (brh)

on the markets | no. 23 | january 2016 29 Open for opportunity A good choice made easy

Ever since spinning and weaving were first mechanized in the 18th century, the yarn and textile industries have been in technological and geographical flux, spreading from one corner of the world to the other. Flourishing businesses in textiles ushered in the industrial revolution in countries as far apart as the United Kingdom, the United States and China.

oday, these twin industries Envisioned a future and built a are expanding rapidly in company Southeast Asia, providing As a yarn trader in Vietnam in the T entrepreneurial and job op- 1990s, Dang Trieu Hoa – known to portunities alike, and spreading pros- many internationally as Jack Dang — perity to companies and countries who saw Taiwanese and Chinese polyester demonstrate that they can compete manufacturers triumph on international successfully on the world market. markets. “By the turn of the century,”

Century's CEO Jack Dang (right), here with Sales Director André Steingaß, is happy with the extended capacities.

30 january 2016 | no. 23 | people Dang says, “I realized that my native Viet- nam could serve as a natural new setting to support similar success stories.”

Determined that his story should be one of them, Dang established the Century Synthetic Fiber Corporation (now a pub- lically held company of which he is CEO) to produce polyester filament for the budding Vietnamese textile and garment industry. It was a good choice. This spe- cific product subsequently enjoyed the highest growth rate in the business. Producing its own POY, Century has a direct influence on its DTY quality.

From his experience as a trader, Dang edge equipment from Oerlikon Barmag, knew the business well—but not the backed by the supplier’s technical production technology. “We initially support and production management bought second-hand equipment from a expertise, Century was able to enhance Taiwanese company,” he explains, “un- both its capacity and quality control at der the condition that the seller would the same time. teach us everything we needed to know about operating their machines.” The expansion proved successful, gen- erating financial resources for Century He and his staff proved to be quick to invest in a POY facility with an annual learners. Within two years, the Century capacity of 14 500 tons while increasing team had mastered the fundamentals its DTY production capacity to 15 000 and began looking for next-generation tons by 2008. technological solutions. In order to meet skyrocketing demand and win market Dang realized that by applying a share at the same time, Dang boldly backward integration strategy to POY decided to double the company’s pro- production, the company could further duction of DTY to 9 600 tons per year. increase overall product quality and He wasn’t going to be able to do that cut production costs. After recurrent cost-efficiently with yesterday’s technol- phases of expansion, Century factories ogy—and so he made one of the most can now produce 37 000 tons of DTY consequential decisions of his career. and FDY every year.

“We decided to buy brand-new equip- Both as a supplier and a production ment from Oerlikon Barmag,” he says management consultant, Oerlikon simply. “This was a make-or-break Barmag has been partnering with investment for us, but given Oerlikon Century for ten years. That relationship Barmag’s proven track-record for pro- continues to evolve today. Dang tells us viding energy-saving, operationally ef- that his company is now making invest- ficient machines — plus the company’s ments in production that will increase reputation for excellent customer service annual capacity to 60 000 tons by the — the decision wasn’t difficult.” first quarter of 2017.

Oerlikon Barmag equipment According to Dang, Vietnam’s garment brought Century to the next level. and textile sector is entering a golden Century wanted to produce more era with excellent, sustainable long- sophisticated products, each character- term growth potential. He is quick to ized by reliably high quality. With cutting- point out, however, “[that] with great people | no. 23 | january 2016 31 “We decided to buy brand-new equip- as the company’s productivity, Jack ment from Oerlikon Barmag,” he says decided that the POC will be deployed simply. “This was a make-or-break in- company-wise (in all factories) next year. vestment for us, but given Oerlikon Sticking to the essentials Barmag’s proven track-record for pro- “At Century,” says Dang, “our strategy viding energy-saving, operationally ef- focuses on the four ‘M’s—namely, ficient machines — plus the company’s manpower, machines, materials and reputation for excellent customer service methods. Selecting the right equipment supplier is a crucial factor for success. — the decision wasn’t difficult.” With state-of-the art equipment from Oerlikon Barmag, we make high quality opportunities come great challenges. In products, which meet even the most order to remain competitive internation- rigorous demands of our customers. ally, a company must offer reliably high This equipment saves energy — a sig- quality products at competitive prices, nificant production cost — thus helping and deliver excellent customer service Century to build up a reputable brand year after year.” Objectives like these name as an environmentally conscien- can only be achieved, of course, if the tious, high-quality yarn maker.” company has modern production facili- ties, a highly skilled and professional Century has simple yet effective busi- workforce and modern management ness and development strategies. practices.

Oerlikon Barmag helps Century check off all the boxes here, delivering state- of-the art equipment, contributing (albeit modestly) to workforce training, and consulting on best practices as Century brings a widely imitated and very capable enterprise resource plan- ning (ERP) system on-line.

This business management tool is a suite of integrated applications that Century will be able to use to collect, store, manage and interpret data from many of their business activities, includ- ing product planning, cost manage- ment, manufacturing, marketing and sales, inventory management, shipping and payment.

In addition, Century has recently imple- mented in its brand-new factory a new version of the Oerlikon Barmag’s plant operation center (POC), fully in line with Industry 4.0. Believing that this state- of-art production management technol- ogy will help the company to improve production efficiency and quality, hence improving its client satisfaction as well

32 january 2016 | no. 23 | people The company focuses on delivering Recent innovations in functionality have uniform, high quality products, and also included such breakthroughs as hollow, on continuously creating new ones. anti-UV, quick-dry, recycled and even Oerlikon Barmag plays an important flame-retardant yarns. Most of Centu- role in this process as the company ry’s customers are knitting and weaving delivers the advanced machinery to companies that specialize in sophisti- Century that ensures optimal quality, cated materials for products procured versatility and efficiency. Oerlikon also by world-leading clothing, footwear and regularly sends its experts to Century home textile brands. These brands in- to provide after-sales service and de- clude Nike, Adidas, Puma, IKEA, Uniqlo liver practical technological solutions to and Reebok. assist Dang’s company in the develop- ment of new products. “Working with Oerlikon Barmag, we’re able to provide exactly what our cus- Gazing toward the horizon tomers need to meet their customers’ “I believe that the demand for polyester demands,” explains CEO Dang Trieu filament will continue to grow,” says Hoa. “Oerlikon helps us by updating Dang, “We will be able to meet that their machines on an on-going basis demand with a stable supply and in order to provide new solutions that stay competitive if we continue to make it possible for us to produce high innovate in terms of improving product technical specification products, while functionality.” saving energy at the same time!” (fl)

The inauguration of phase 3 at Trang Bang attracted many interested visitors. people | no. 23 | january 2016 33 Plant Operation Center (POC) Optimised processes with Industrie 4.0 solutions The extended process and production control system Plant Operation Center (POC) can now capture and digitise all the steps of yarn production and processing including plant technology from third party suppliers. In addition, it can be linked to ERP systems such as SAP. The networking of several plants via cloud computing is likewise possible, opening the door for manufacturers to highest process efficiency and transparency at Industrie 4.0 level.

he production technology is tracking system, authorised personnel linked via computer and Inter- can track at all times, which product net technologies, production is being produced at which position T and machine data are avail- and in which quality, whether machine able in real time as well as over the en- performance and production quality are tire value chain, around the clock and currently correct and whether produc- anywhere. This allows for extremely fast tion is on schedule. reaction, creating maximum traceability and planning reliability, and thereby As a result the POC is becoming continual improvement of processes, increasingly mobile and besides the quality and competitiveness. For such desktop and web-based workstations scenarios there is meanwhile a term available from the very beginning, also which has become known beyond supports smartphones and tablets. Europe: Industrie 4.0, the fourth industrial revolution.

The Plant Operation Center of the Oerlikon Manmade Fibers Segment has been extended to fulfil these require- ments. The software- and Internet- based control system now captures the complete manufacturing process. In spinning mills for example this extends from melting of the granulate right up to quality testing and approval of the finished POY packages. Upon request it can be extended to further processing to the DTY product in tex- turing systems. This provides a docu- mented, complete curriculum vitae of each package, enabling full traceability and the targeted search for causes at every process stage.

Job and product tracking: control in real time At the same time it is clear where qual- ity originates and efficiency prevails, and where not. For every produc- tion order is – in interaction with ERP systems such as SAP – generated in the POC, continuously updated and mapped. Using this job and product

34 january 2016 | no. 23 | services This is true particularly in the case of The current status of the machines and tools to control and improve operating installations can be recognised imme- performance and task management. diately in regard to target values, via the traffic light colour scheme on the Tools for greater operating display. efficiency Operators can also view critical oper- Modular and adaptable – right up ating conditions and urgent tasks on to globally-networked production mobile devices. The appropriate tools Particularly interesting for the efficient provide a clear overview of the pro- and transparent production process: cessing priorities using a colour code. In a POC network, information can be Thereby operating efficiency can be exchanged between production sites considerably increased and mainte- in a safe and controlled manner. Cloud nance and servicing better planned and computing enables the provision of carried out just in time. data, KPIs and recipes. This smoothes the way for best practice processes in Authorised management personnel can the global production network. also access the current Key Perfor- mance Indicators (KPI), which were "With our extended POC our custom- previously stored on the POC server ers receive all information at an early or on the Intranet of the customer, per stage to steer course for efficiency and smartphone, anytime and anywhere. thus success in production. Shift man- agement, personnel deployment and centralised reporting are made easier, and time and resources saved. At the same time we adapt the POC precisely to the requirements of each individual customer", explains Reinhard Muehlen- meister, Head of Software Solutions. This is made possible by the modularity and scalability of the system which can be simply expanded through additional modules at a later stage

According to company information, there are approximately 100 POCs currently installed at customers of Oerlikon Manmade Fibers around the world – and enquiries are on the rise, adds Muehlenmeister: "Quality and traceability are playing an ever greater role in business. There is also demand for highest efficiency, planning reliability and data integration. That's why we are working on the POC of tomorrow - today." The already integrated remote support should then allow for even more intensive machine monitoring. And in certain situations the machines POC is becoming increasingly mobile: should automatically propose solu- It also supports smart- tion options – Industrie 4.0 sends its phones and tablets. regards. (aw) services | no. 23 | january 2016 35 imprint Editorial staff Concept and layout Disclaimer ae Andreas Engelhardt Make and Do, Hella Hölzer All indicated values and descriptions Fibers and Filamants is the aw André Wissenberg www.make-and-do.de in this document are for indicative exclusive Oerlikon Manmade Fibers bey Susanne Beyer (responsible) purposes only and not to be under- customer magazine. It is published brh Brenda Häde Print stood as a guarantee. Please note that three times per year by che Claudia Henkel Köllen Druck + Verlag, Bonn actual values may differ from any data fl Frederic Love www.koellen.de published in this document. Oerlikon Textile GmbH & Co. KG imm Dr. Ingo Mählmann Leverkuser Straße 65 lka Lena Kachelmaier Photography Electronic Version (PDF) 42897 Remscheid may Andreas May Ralf Buchholz, Rickey Steele, Jens Germany mcn Ed McNally Weinhold, Century Synthetic Fiber pku Dr. Peter Kunath Corp., shutterstock.com/Konstantin [email protected] sbu Sonja Buchholz Yolshin /Rehan Qureshi/Kzenon/ www.oerlikon.com/manmade-fibers tho Thilo Horvatitsch catwalker/ Thawatchai Phoochae- wa Ute Watermann mchot/cigdem/Tei Sinthip/Khairul Edition Effendi/ Iasha/Tasoph 2,800 copies

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