Always a dedicated follower of fashion (1992)

Here's a comprehensive review of the Tencel project as of December 92 from Robin Davison at ICB.  Not sure about the title though - is it ironic?

"Courtaulds' opportunity to re-dedicate itself to a business in which it has been a world leader throughout most of this century - the chemical manipulation of cellulose."

"Courtaulds' strategy has been to re-position its own cellulosics business while maintaining lowest cost production. It has increased the proportion of higher-value added segments such as nonwovens, absorbent wipes and sanitary products, which have more predictable and stable demand patterns and reduce the sensitivity to the whims of the fashion world". (Ed. referring to pre-Tencel cellulosics strategy)

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With the launch of Tencel - the first new textile fibre in 30 years - Courtaulds could re-dedicate itself to the cellulosic fibres business. Setting a new trend, Tencel is cost-efficient to produce and boasts remarkable mechanical properties - it also bears the fashionable environmentally friendly tag.

By Robin Davison

THE FORMAL opening of Courtaulds first commercial-scale plant for the new manmade cellulosic fibre Tencel provided a wider platform than just to launch the first new textile fibre in 30 years. The opening ceremony also represented Courtaulds' opportunity to re-dedicate itself to a business in which it has been a world leader throughout most of this century - the chemical manipulation of cellulose - and allay any fears that cellulosic fibres may not feature in the company's long-term strategy. As chief executive Sipko Huismans observes, Courtaulds was in cellulosic fibres at the beginning of this century and Tencel assures its position at the end of the century - 'and there are not many companies which can say that'.

The $85m Tencel plant, with a capacity of 20 000 tonne/year, is located beside Courtaulds' existing viscose rayon plant at Axis, outside Mobile, Alabama. Commissioning took place during the summer, and Courtaulds' cellulosics ceo David Duthie expects it to be operating at 100% capacity before the end of the year.

The project's second phase - an expansion of 20 000-25 000 tonne/year at Axis

- will go ahead if the initial market proves to be sustainable. The test will come over the next few months, according to Gordon Campbell, Courtaulds' executive director responsible for fibres, and the decision on whether to go ahead should be taken by September next year. The next stage, he says, is to drive down the capital cost of expansion. Campbell is looking for a 25% capital cost saving on the second phase of the project.

So far, Courtaulds is pleased with the reception the fibre has had from customers in Japan and latterly the US, saying it is 'better than expected'. As a high-priced fibre and also because of the limited production available, sales are confined to the 'Tencel Club' of high fashion couturiers, whose garments are in the 'casual-rich' category. Tencel garments will be available more widely in the US next year and plans are in place for introduction to the more sophisticated European markets of Italy and Spain.

The Tencel development can be traced back 14 years to a research project called Genesis, which aimed to improve or find a less 'environmentally-problematic' production technology for viscose rayon. The rayon process, in which cellulose is chemically broken down and dissolved in carbon disulphide, produces some sulphur-containing effluent streams which require expensive treatment.

The Genesis research developed a new process and a unique technology for solvent spinning. The fibres, however, were quite distinct from rayon and have now been given the separate generic name lyocell. The fabrics produced with these fibres were strong, so could be woven into light and unusual soft fabrics, capable of being processed into a wide variety of different finishes or 'hands'. Most fabrics are either 100%Tencel or Tencel-rich blends with luxury natural fibres such as wool, silk and linen.

Scale-up of the process took most of the 1980s and the pilot plant was built in 1988 at Grimsby, in the UK. Production from Grimsby has been exported to Japan for the initial market development over the last two years.

The Tencel process represents a considerable chemical simplification over that of rayon. However, the quality and consistency are highly sensitive to the process conditions, which requires sophisticated instrumentation and control.

Tencel fibres are produced by reconstituting pure cellulose filaments from a dope, produced from dissolving woodpulp in a concentrated amine oxide solution. These filaments are washed in a dilute amine oxide solution, dried, crimped to form the tow, which is then cut to produce fibre staple and sent to the textile mills. The amine oxide solvent is recovered, purified and recycled.

The fact that the solvent is totally recycled, together with the use of a renewable raw material - woodpulp derived from managed forests - affords Tencel a valuable environmentally friendly tag over which the textile industry is particularly enthusiastic.

The process is also inherently more cost-efficient than viscose, at least where the latter is produced in plant with appropriate effluent treatment technology. At ex-factory prices Tencel staple is priced at about 50% premium to rayon - about $3.85/kg. Cotton, by comparison, ranges from about $1.90-4.80/kg depending on the grade. So if Courtaulds sells the entire output, it will achieve sales of about $70m/year.

The improved mechanical properties of Tencel stem from a higher average molecular weight. The degree of polymerisation (DP) of Tencel is in the 500-600 range, in comparison with rayon which is typically 200. The molecules are also better orientated by the improved extrusion process.

The greater tenacity, particularly in the wet state, represents a considerable benefit to the spinners and weavers. Also, fabrics are efficient in dye uptake, which allows deep and vibrant colours to be produced, and are well suited to chemical or physical post-production finishing techniques, particularly aggressive chemical or enzymatic treatments pioneered by Japanese companies, which produce some highly unusual surface effects.

Courtaulds is also pursuing non-apparel markets for Tencel. Possibilities include technical fabrics, for which the fibre's qualities of high strength and dimensional stability could prove to be an advantage - for example, abrasive belting, printers' blankets and heat-retardant fabrics.

In the long term, Courtaulds will have to extend use into larger-volume apparel sectors, as the production capacity increases and the price falls with economies of scale. Courtaulds is tentatively aiming to increase capacity by 4-5 times (a capacity of about 80 000-100 000 tonne/year worldwide) by the end of the decade, says Campbell, 'but Tencel is always going to be a specialist fibre'.

The question for Courtaulds will be how to enlarge the market for Tencel without displacing that of viscose. Another question is whether to license the solvent spinning technology to competitors, given the capital intensity of increasing capacity worldwide.

The outcome will determine how Tencel fits with viscose rayon in Courtaulds' long-term strategy. In rayon, Courtaulds has moved from being the significant player to strong niche position, but its technological lead is being chased by the Austrian group Lenzing, which looks to be the nearest to developing a competitive lyocell fibre, perhaps around four years from commercial production.

Courtaulds' strategy has been to reposition its own cellulosics business while maintaining lowest cost production. It has increased the proportion of higher-value added segments such as non-wovens, absorbent wipes and sanitary products, which have more predictable and stable demand patterns and reduce the sensitivity to the whims of the fashion world.

This strategy led to the recent closure of the 35 000 tonne/year viscose unit in Cornwall, Ontario, leaving Courtaulds with 92 000 tonne/year viscose capacity at Axis, and 60 000 tonne/year in Grimsby. Behind this decision was the entry of a strong competitor into the North American market, through Lenzing's takeover of BASF's plant at Lowland, Tennessee. Lenzing also announced plans to restart idled lines at the plant.

21 December 1992  [Source: ICB]