THANK YOU TO OUR 2018 RPET ROUND TABLE PARTNER: #TextileExchange18 - PowerPoint PPT Presentation

THANK YOU TO OUR 2018 RPET ROUND TABLE PARTNER:

#TextileExchange18 rPET Meeting Goals • Provide a market update • Identify mechanical rPET intervention points • Updates on chemical rPET innovations • New goals for 2030

#TextileExchange18 rPET Meeting Agenda • 2 minute Introduction by our Sponsor - NSF • 13 minute opening • Goals • rPET Commitment status • Market updates • rPET mechanical supply chain intervention points • future of rPET chemical developments • New goals for 2030 • 50 minute presentations • 20 minute market update ICIS • 20 minute rPET Outside of Textiles • 10 minute micro fj ber report out EOG – Katy remote • 10 minute break • 125 minute working session • 75 minutes Mechanical – Bill - Where can we intervene and make progress • 15 minutes Chemical – Karla update on the chemical recycling landscape • 15 minutes new goals 2030 based on today’s work • 10 minutes Wrap-up

#TextileExchange18 rPET Commitment Status • Collective usage of rPET among the signatories grew by 36% and did so two years before the challenge’s projected end- date. • Textile Exchange’s 2018 Preferred Fiber & Materials Market Report also showed that, among participating companies, the top three rPET users are all signatories of the challenge. • Overall, companies that participated in the Preferred Fiber & Materials Benchmark program, reported a 28% increase in rPET usage.

#TextileExchange18 A review of rPET market Matt Tudball Head of European Markets, ICIS Susan Mair Analytics & Consulting, ICIS

#TextileExchange18 Virgin Polyester Chain PET resin • Global production MEG (mono ethylene glycol) 24 million tonnes para- PTA polyester fj bre PET melt (puri fj ed terephthalic xylene acid) 41 million tonnes 61 million tonnes 70 million tonnes polyester fj lm www.icis.com Source: ICIS Supply & Demand Database

#TextileExchange18 Recycle Polyester Chain PET resin • Global production MEG 23 million tonnes (mono ethylene glycol) 24 million tonnes para- PTA polyester fj bre PET melt (puri fj ed terephthalic xylene acid) 57 million tonnes 41 million tonnes 61 million tonnes 70 million tonnes 15 million tonnes polyester fj lm PET PET bottles fm ake / 4 million tonnes pellet www.icis.com Source: ICIS Supply & Demand Database

#TextileExchange18 PET Melt Phase Capacity Global PET Melt Capacity • PET melt phase CAGR 6.5% from 140 2000-2017 120 100 • Growth is set to slow going forward Million Tonnes 80 60 • By 2030 recycled PET melt from mechanical recycling is forecast to 40 account for 20% of global capacity 20 - 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030 • Chemical recycling becoming a Virgin Capacity Recycle Capacity more feasible option www.icis.com Source: ICIS Supply & Demand Database

#TextileExchange18 Recycled capacity – China dominates • rPET Melt Phase Capacity 2017 • rPET Melt Phase Capacity 2030 OTHER OTHER NORTH NORTH 4% 6% AMERICA AMERICA 6% 8% EUROPE EUROPE 8% 8% ASIA EXC ASIA EXC CHINA CHINA 11% 15% CHINA 65% CHINA 69% 20 million tonnes 32 million tonnes www.icis.com Source: ICIS Supply & Demand Database

#TextileExchange18 China R-PET Import Ban China PET Waste Imports • 2018 ban on plastics imported into 250 China 200 Thousand Tonnes 150 • Already seeing production shifting to Waste PET other countries in Asia 100 50 • Virgin operating rates increasing as a result 0 Source: China customs www.icis.com

#TextileExchange18 European feedstock price drivers • Crude oil movements drive feedstocks • Drops in crude, naphtha drove down prices in March • September PX/PTA spikes result of tightness in Europe and rise in Asia PX www.icis.com Source: ICIS

#TextileExchange18 European PET price drivers • Crude oil drops narrowed gap between PET and rPET in 2015 • Preference for virgin impacted recycling capacity • 2018 – market tightness impacted prices • US ADD could increase imports www.icis.com Source: ICIS

#TextileExchange18 PET Availability and Production • Sustainability is rapidly becoming top focus for petrochemical industry • European petchem producers buying up recycling companies • Lack of recycling capacity could impact sustainability goal implementation • Opaque market in terms of rPET availability and quality www.icis.com Source: ICIS

#TextileExchange18 Questions and contact Susan Mair Analytics and Consulting Susan.mair@icis.com Matt Tudball Head of European Markets Matt.tudball@icis.com www.icis.com Source: ICIS

#TextileExchange18 Cross Industry Collaboration Maurizio Crippa CEO at gr3n SAGL

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#TextileExchange18 Outdoor Microfiber Consortium: Progress and next steps Dr. Katy Stevens, European Outdoor Group

#TextileExchange18 Outdoor Micro fj bre Consortium • An industry response to actively understand the problem of micro fj bre shedding and develop industry based solutions. • This collaborative, brand driven approach encourages more in depth research projects, and facilitates greater levels of understanding and solution building than would be achievable alone.

#TextileExchange18 Micro fj bre Consortium – why? • Lack of consistent and in some cases contradictory data – including variations in methodology • Uncertainty over scale and severity of the problem based on data • Need for industrial alignment to reduce replication and encourage alignment Roos, Arturin, Hanning, Microplastic Shedding from Polyester Fabrics. Mistra Future Fashion Report. 2017

#TextileExchange18 Outdoor Industry Micro fj bre Consortium - Outputs • Roadmap – complete Strategy • Infographic - complete Integrity • Test method development – draft method available Oct 2018 for validation process • Don’t feed the fj sh – complete Research • Virgin v’s recycled – in progress • Understanding colour – in progress Product • Tools for product development teams development • Product based solutions

#TextileExchange18 Microfibre Infographic: Why?

#TextileExchange18 Microfibre release from garments, is a cross industry challenge affecting all fabric types, through in-process manufacturing and consumer use (through fibre pull out and fragmentation). Solutions to this challenge will be found in cross-industry process modifications and fabric reengineering. o f i b r e r e c r l e i a m s e g n i r u t c a f u n a m s s e c o r P Solution Finite dye Renewable 2.Fibre Yarn dye Recycled s R l a a w i e r 1.Raw Materials M a t 3.Yarn F i r e b Y a r n F c a b r i C o o u r l F i n i s h t G a r m e n C o e r n s u m 4.Fabric 12.End of Use L a u n d e r W t e r a s t e W a S o a l c n t i a l m e & E n v i r o n E e n d o f U s 11. Social & Environmental 10.Waste Water 9.Launder 8.Consumer 5. Colour Garment Dye 7.Garment 6.Finish www.europeanoutdoorgroup.com

#TextileExchange18 The Outdoor Industry Microfibre Consortium: Work-Streams The Microfibre Infographic will be used as a framework to guide the work of the consortium.

#TextileExchange18 Test method development • Method due for public release Q4 2018 • Extensive in house repeatability and validity testing complete • Multi lab reproducibility testing to carried out over coming weeks • Inclusion in global discussion to develop single harmonised test method

#TextileExchange18 Manufacturer projects Virgin v’s recycled Virgin v’s recycled Understanding colour Understanding colour This work will answer the questions This work will answer the questions This work will answer the questions This work will answer the questions 1. Does recycled raw material e ff ect 1. What e ff ects do di ff erent colouration micro fj bre loss at the product level? methods? 2. Which recycling processes are less 2. Which processes / routes to product are impactful than others, and what less impactful than others and what understanding can we apply to understanding can we apply to engineering new solutions? engineering new solutions? Project progress Project progress • Samples prepared and ready for testing (dependent on release of test method) • Expected completion – Q4 2018