The Nylon Textile Filament Market in Europe Trends and Challenges

#radicigroupRadiciGroup | Marketing&Communication
The Nylon Textile Filament Market
in Europe
Trends and Challenges
Paola Corbani
Senior Marketing Analyst – RadiciGroup
The PCI Wood Mackenzie Nylon Symposium
Frankfurt , 7-8 March 2017

Agenda
RadiciGroup Overview
Nylon Textile Filament Global Overview
The End Uses
Focus on European Demand
Sustainability in the Nylon Industry
Conclusions

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RadiciGroup’s Overview
Integrated production chain in PA6, PA66, PA 6.10, PA 6.12 and
copolymers
A wide portfolio of materials (Chemicals, Polymers, Compounds,
Fibres) available on a global scale
Extensive Fibre Portfolio and Know-how:
Nylon Fibres: Textile Filament, Carpet Filament, High Tenacity yarn,
Staple fibre
Polyester Textile Yarn from virgin and recycled polymer
Nonwovens and Yarn for synthetic turf
RadiciGroup | Marketing&Communication

Radici Partecipazioni
Consolidated Sales Turnover 2015
1,011 million euros 2985 employees
Fields of Activity:
Chemicals
Plastics
Fibres & Nonwovens
A Global Presence:
Europe, USA, South America, China, India
Targeting diversified applications
RadiciGroup Key Numbers

#radicigroup
RadiciGroup Synergy & Integration - Polyamide 6

RadiciGroup Synergy & Integration - Polyamide 66

RadiciGroup Synergy & Integration
Polyamide 6.10 , 6.12 and Other Polymers

Global Trends in Nylon Textile Filament
NTF World demand 2005/2015
Global growth by 3.2% p.a.: mainly driven by surge in China capacity, production
and mill consumption. Export driven demand: roughly 40-45% of Chinese NTF mill
consumption
NTF World demand 2015/2025: growth by +1.7% p.a. expected
Lower growth rate in China mainly due to reducing opportunities of export
growth…more related to increase in domestic fibre demand.
But overcapacity in Caprolactam, nylon 6 polymer and textile filament continue to
be an issue in the overall scenario
NTF share of total fibre consumption 2.3% in 2015 expected relatively stable in
the medium term.

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7.7%
3.2%
2.2%
1.7%
-4%
-2%
0%
2%
4%
6%
8%
10%
America Europe+TK+
ME&Africa
China Other Asia World
change 2005/2015 change 2015/2025
Nylon Textile Filament Demand by Region
Most demand growth to come from Asia -China
America expected to show some increase
In Europe demand expected on a stable to slightly growing, Turkey and Middle East/Africa to
show some increase
42%
57%
64%
65%
67%
1499
1613
2054
2261
2435
0
500
1000
1500
2000
2500
3000
'000ofMetricTonnes
Source: PCI Fibres Red Book 2016
Other Asia
China
America
Europe+Turkey
+ME&Africa
World

1499
1618
2054
2261
2435
0
500
1000
1500
2000
2500
3000
'000ofMetricTonnes
Nylon Textile Filament World Demand
PA6 TF
PA66 TF
Total TF
World Nylon Textile Filament PA6 & PA66
Nylon 6 share up from 78% in 2005 to 88% in 2015, driven by China
0
500
1000
1500
2000
America Europe+Turkey +
Middle East & Africa
Asia
ConsumptioninKtes
NTF Demand 2016: PA6/ PA66 by Region
PA6
PA66
NTF 66 Demand more evenly
distributed by region, with predominant
share in Europe and America
change
2015/2025
change
2005/2015
PA6 1.8% 4.5%
PA66 1.3% -3.3%
Tot PA 1.7% 3.2%

Main Drivers of NTF Demand
Fast developing demand in core nylon application (sportswear,
swimwear, intimate apparel, hosiery) from growing young middle class
population in Asia and other emerging countries (Population &
GDP/capita increase)
Specialist demand from sophisticated consumers in advanced countries
Opportunities and threats of ageing population in advanced countries
Health, Wellness and wellbeing
Trend toward finer yarns for lightweight fabrics
All elements are declined at a regional level and determine positioning of
NTF in the fibre scenario

Nylon Textile Filament in the Fibre Scenario
Strength, versatility, stretch, lightweight, aestetics
Comfort, moisture management, Thermal insulation, softness/ touch, skin
compatibility
Predominant use in apparel, but shifting away from commodity applications
(heavy denier taffeta industrial, basic fashion apparel) in competition with
polyester
Warp Knit
Circular
Knit
Woven
Knits
Woven
Knits
Strength (resilience)
Easy care
Softness / touch
Drape
Low Water Absorption (quick dry,
moisture management)
Moulding
Stretch‐recovery
Aesthetic Versatility
Lightweight
Spandex Compatibility
Lingerie/ Corsetry
Underwear
Activewear Ready‐to‐wear
PA TEXTILE YARN FEATURES
Fine Hosiery
Socks

Nylon Textile Yarn & Lightweighting
Nylon, intrinsic lower weight for the same
covering properties, for lightweight
comfortable garments
0
10
20
30
40
50
60
70
averageNylonTFdenier
Source: Opus BC
Trends in Nylon Textile Filament Counts
shift to finer deniers in most
applications for even lighter fabrics

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Intimatewe
ar
18%
Outerwear
15%
Hosiery
15%
Sportswear
26%
Other
26%
The Main Applications
Core nylon applications: women hosiery, shapewear, intimatewear,
apparel, swimwear, some sportswear
Internylon competition in case of structural change in relative pricing,
but strong adjustments efforts required
Source: Opus BC /PCI WM
100 50 0 50 100 150 200 250 300 350 400 450 500 550 600
Intimatewear
Outerwear
Hosiery
Sportswear
Other
Demand in '000 Metric Tonnes
World Nylon TF demand by End Use 2016
PA66 PA6

100 50 0 50 100 150 200 250 300 350 400 450 500 550 600
Intimatewear
Outerwear
Hosiery
Sportswear
Other
Demand in '000 Metric Tonnes
World Nylon TF demand by End Use 2016
PA66 PA6
What about Interfibre Competition
Estimates by Pci WM/Opus
Bc would indicate that:
30% of Worldwide
PA6 consumption :
nearly 600 Ktes! may
be exposed to
competitions by
polyester TF
In case a structural
increase in price gap
justifying a costly and
complex readjusting of
the whole production
chain, especially in Asia
Source: Opus BC /PCI WM
21%
Potential
Replacement
by PETF
50%
22%
24%
36%

The European Outlook
Key Factors
High costs Energy, labour, taxes, burocracy, environmental burdens
Environment and health • Growing concern for European Consumers
• Demanding EU regulations setting high environmental and consumer
safety standards
• High costs for EU companies
• But hardly any control on imported goods
Textile/Apparel Stabilizing manufacturing base in textiles after long decline. Still some
downward trend in apparel.
Trade Most open market in the world, no protection for local manufacturers. High
import penetration
Demography Ageing population, Health system to readjust
Economy Low growth with strong North/South divergencies
Spending opportunities in the Southern Countries curtailed by high
unemployment rates

0
50
100
150
200
250
300
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
('000 of Metric Tonnes)
Turkey, ME,
Africa
Europe
Overview NTF Market in Greater Europe
(Europe,Turkey, Middle East & Africa)
European
demand reached
stability in the last
few years, some
growth by
expected in the
medium term
Turkey positive
outlook: strong
position as
supplier to the EU
apparel market .

NTF In Europe: the End Uses
Core end uses: intimate wear, Hosiery, high end sportswear
0
100
200
300
demandin'000Mt
Source PCIWM /Opus Bc
Nylon Textile Filament End Uses
Europe+Turkey + ME& Africa
2016
Other
Outerwear
Sportswear
Intimatewear
Hosiery

NTF in Europe: complexities of a
demanding market
Commodity end of the market long shifted to Asia
Europe is a specialized, segmented market
Highly skilled textile/apparel producers: strong product and
technological know-how
Technological complexities
Demanding Consumer: performance, aesthetics, value for money
proposition, sustainability
Key Drivers: Flexibility, short time to market for high quality fabrics

Nylon TF: a demanding context

Focus on Medium/High Quality Ranges
Complex fabric structures for very lightweight fabrics
Machine shifting to finer gauges: higher elasticity and better
covering power, very lightweight
Need for finer denier yarns, finer denier per filament
(microfiber)
Higher performance demanded on dyeability : Deep/Bright
colors with high color fastness. No toxic additives and dyestuff

Focus on Medium/High Quality Ranges
Combined performance: thermal regulation, moisture
management, antimicrobial,softness, drape, UV resistance
stretch, durability, abrasion & stain resistance
Through various technological options
Functionalized fabrics: polymer chemistry versus yarn variants
versus fabric treatment
Sustainability: increasing focus by consumers and customers
Very demanding on Nylon textile filament quality, range,
performance

Nylon TF and the Value Chain
Complexities of NTF Value proposition require balance of cost, performance, aestetics
Key competitive factors:
Understanding the value chain and finding the right fit with customer business models
Vicinity to customer in terms of reliability of quality, range of products, time to market,
flexibility
Reliability of integrated chains
Cooperation /partnership for product development, R&D, Innovation
Impact of raw materials volatility?
Bargaining power at each step of the production chain and transmission of price changes
Interfibre competition driven by highly skilled textile users
Profitability of some steps of the chain

Sustainability In the Nylon Industry
Plant efficiency and process improvement
A problem solving approach to sustainability: lightweight, durability,
recyclability
Thermo-mechanical Recycling of post-industrial wastes into engineering
plastics: has been a reality for a long time… inline with EU directiveon circular
Economy
Chemical recycling
Ongoing developments: Bio-based feedstocks
To be tackled for most textiles
post consumer mechanical recycling
The Future
Eco-design

RadiciGroup: An integrated Approach to
Business and Sustainability
A sustainable approach to business: efficient environmentally conscious
processes
along our integrated production chain
product offer to embed sustainability
…Biomaterials … recycling
Organizational Models & Certifications
Transparency and Communication, Sustainability Report

Sustainability@RadiciGroup: Recycling of waste
into plastics
All the scraps are collected @RadiciNovacips

Radici Group Synergy & Integration
Sustainability
Manufactured using biopolymers obtained from renewable source materials
Radilon® D: PA6.10-based engineering plastics
Radilon® 6.10: PA6.10-based textile yarns
dorix® 6.10: PA6.10-based staple fibre
CornLeaf®: Ingeo™ polylactic acid (PLA) yarn
Solution-dyed saving water and energy
PA6 BCF yarnRadifloor®: PA6 BCF yarn
dorix®: PA6 staple
Radilon® staple fibre: PA6 staple
Radilon®: PA6 and PA6.6 textile yarn
Radyarn®-Starlight®: polyester textile yarn

RadiciGroup For Sustainability
RadiciGroup for Sustainability - Key Elements
Working for a sustainable supply chain
ENERGY
E N E R G Y 2 0 1 5
W A T E R

Secondary
raw material
Raw materials efficiency, through internal re-use or controlled recycle/recovery: ~ 100%
LCA-testing PEF
Methodology
We contributed to set the standard rules that are now used to make actual comparisons and we assessed the
environmental impacts of the production chain. According to LCA methodology and PCR, each
elementary flow of materials and energy used is accounted, both primary raw material compounds and secondary as well
RadiciGroup For Sustainability
SCRAPS

Summary
Global nylon demand continued growth driven by
Core nylon products demand in China and emerging countries
Performance medium high quality driven demand in advanced
countries
Interfibre competition by PES
Possible loss of nylon business for standard qualities especially in
Asia if pricing differential structurally increases

Conclusions
Europe, a specialized nylon textile filament market
Focus on high quality ranges, with increasing performance
requests on fabrics, yarns and technologies.
Exploit the strength of the European production chain
Global Focus on Sustainability
Address post-consumer thermo-mechanical recycling
Eco-design

Thank You for Your Attention!
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