Apparels & industrial textiles equipmentThe apparel and textile industry, driven by China’s economic deceleration and the review of its 13th five year plan, faced overcapacity and unexpectedly entered a deeper trough in 2015. The Manmade Fibers Segment generates the majority of its revenues from this market.
The fibers equipment market in China is expected to continue to be difficult over the next few years. However, the apparel market is strongly supported by the fundamental need for clothing, while BCF (bulk continuous filaments) yarn satisfies the need for carpets and other home textiles. For technical textiles and geotextiles, there are compelling and increasing opportunities in industrial and construction applications, such as the increasing use of nonwoven technologies in water and air filtration, and more energy-efficient and resource-effective production solutions for recycling. All these factors sustain the demand for manmade fibers and lay the foundation for the upswing and return to growth in the medium term.
The Manmade Fibers Segment will protect its market and technology leadership position in this sector through innovations, improving services to customers and penetrating adjacent markets. In line with this, in 2015, the Segment opened a new technology center in Chemnitz, Germany and introduced innovations such as RoTac3, a cost and energy-saving carpet yarn finishing process that requires up to 50 % less compressed air in carpet yarn production. It also improved its proximity to better serve US customers with a new service center in Dalton, Georgia, USA. In the adjacent market for polycondensation, a business with good market potential, the Segment’s joint venture with Huitong Chemical, China’s first polycondensation system manufacturing company, has created the only company in the world that can offer a single source solution, from continuous polycondensation to finished end products in chemical fiber spinning or PET bottle-grade material.