2024 is the 20th anniversary year of our sustainability label e-save
Oerlikon is a leading provider of comprehensive polymer processing plant solutions and high-precision flow control component equipment. The company provides polycondensation and extrusion lines, manmade fibre filament spinning solutions, texturing machines, BCF and staple fibre lines as well as nonwoven production systems. They also develop and produce advanced and innovative hot runner systems and multi-cavity solutions for the injection molding industry. Oerlikon’s hot runner solutions serve business sectors, including automotive, logistics, environmental, industrial applications, consumer goods, beauty and personal care and medical. Moreover, the company offers customised gear metering pumps for the textile, automotive, chemical, dyes and lacquers industries. Oerlikon’s engineering competence leads to sustainable and energy-efficient solutions for the entire polymer processing value chain with a circular economy approach. André Wissenberg, Vice President-Head of Marketing, Oerlikon Textile GmbH & Co. KG, discusses the latest advancements and market trends the company is leveraging to maintain a competitive edge.
Could you please brief us on some new developments at Oerlikon in the last 1-2 years?
Let me highlight two innovations here: The EvoSteam process from Oerlikon Neumag is considered a pioneer for more sustainable staple fibre production in the future. It impresses with savings in energy, water and raw material consumption, as well as a reduction in operating costs (OPEX) and the CO2 footprint – while at the same time achieving the excellent fiber qualities required by downstream processes and high production volumes.
With its latest development in bicomponent yarns for carpet production, again Oerlikon Neumag is meeting the carpet market’s demand for new innovative BCF yarns in terms of quality, efficiency and performance. The new BICO BCF yarn is characterised by a richer and higher volume while at the same time significantly reducing the consumption of raw materials in carpet production. At the ITM, interested parties could see sample yarns and carpets, find out about the product range and have in-depth discussions with our experts about the advantages of BICO BCF yarn in various applications.
What kinds of mega trends are you witnessing in the industry? How is Oerlikon tapping these trends?
2024 is the 20th anniversary year of our sustainability label e-save! We can say with proud, that we are a pioneer in sustainability back to 2004, when we started with this program. Profitable and sustainable growth for everyone involved is the goal of our company since then and therefore also our contribution to securing a sustainable future. Performance, quality, sustainability and commitment are the factors that enable our us to face the challenges of the future with confidence every day. With the constant expansion of our e-save philosophy, we are continuously creating and increasing value with high-quality and innovative solutions for the entire textile industry. At ITM, we once again focused on the topics of energy, economics, environment and ergonomics.
What did Oerlikon displayed at ITM 2024? Any new introduction at ITM for Turkish market?
We presented our machine and system technologies at the trade fair, which offer comprehensive production solutions for the manufacture of polyester, polypropylene and nylon from melt to yarn, fibres and nonwovens. Our customers are particularly interested in factory projects ranging from their own polycondensation plant to texturised yarns with corresponding digital solutions. The unbeatable advantage of our concepts is that we can offer the supply of all process steps from a single source and thus a harmonised technology whose design ensures the high quality of the yarn produced. However, numerous project discussions centred on texturing using our eFK and eAFK technologies as well as specific yarn production processes for smaller batches with our VarioFil Technology form BB Engineering.
How is the market at the moment? What factors are driving demand?
I’m seeing isolated medium-sized activities in global markets. China is set to grow again. The local textile industry there wants to continue to benefit from the global market, particularly in the long term. Chinese polyester manufacturers are currently flooding the world with yarns at low prices. It is hardly worthwhile for companies in India, Turkey, the USA, or Europe to invest in building up new capacities themselves.
But it is clear for me that even China cannot afford this in the long term. Ultimately, money has to be earned. This will result in a rise in the prices of Chinese polyester. Those who have invested or are still investing outside China in good time could end up being one of the lucky winners. This is particularly the case if demand in the local market, especially in their own country, increases again.
Bangladesh is a good example of this. We have just successfully commissioned a 450 tonne per day plant for filament and staple fibre at Modern Syntex in Chittagong. This will produce yarns and fibres for further processing on site. Bangladesh has now become the second largest exporter of textiles in the world. This is a worthwhile investment.
India’s textile industry is currently benefiting from both the country’s economic growth, which is among the strongest in the world, and state-funded projects. Textile parks are being built all over the country, creating jobs and prosperity. Now that the elections are over, India will want to continue on its successful path. This is good for our industry, as growing sales markets promote business.
In Turkey, SASA is continuing to implement its strategic plan. By investing in a new PTA plant, the successful company is further reducing its dependence on raw material imports. This will enable it to further reduce the production costs for polyester in order to better compete on the market with attractive prices compared to cheap imports from China.
This is currently still quite difficult. On the Turkish market, they are currently paying an average of around € 1.30 per kilograms of POY from various local manufacturers. However, you can buy textured yarn from China locally for around € 1.20 per kilogram me. However, this will change in the short term due to rising logistics costs, among other things, and in the medium term due to additional carbon footprint compensation costs.
It is not only in the USA that people are already looking ahead to the outcome of the presidential election in November this year. This could have a significant impact on the global market. However, it is difficult to predict whether this will lead to a further deglobalisation of the yarn and textile markets.
What are your growth plans for Oerlikon in the next couple of years?
In the future, we will once again present ourselves in a global market environment. The topics of sustainability and an associated energy-saving production as well as the challenge of making production economically attractive against the backdrop of an increasing shortage of skilled labour will be at the centre of our future solutions.
