Tencel in Courtaulds Annual Reports (1993-94)

- In "Chairmans Statement" (Sir Chris Hogg)

The company's balance sheet is sound and we are well placed for funding capital requirements in the foreseeable future, including those for Tencel and the Far East expansion.

-In "Chief Executives Review: Strategy" (Sipko Huismans)

We brought our new Tencel fibre into full production and turned it into a commercial success.  In November we announced a second US plant, more than doubling capacity, and we hope to make a start on a European plant in the present financial year.

-In Finance Directors Review (Michael Pragnell)

...expenditure plans for the coming year remain at the 1993-94 level*: in addition the next phase of US investment in Tencel is already underway.

*£143m representing 1.7 times depreciation.

-In "Fibres and Chemicals"

The common theme of these businesses is the transformation of cellulose and other material into fibre or film and the use of R&D and market development to create product differentiation.  Tencel, the world's first solvent spun fibre, with exceptional versatility and environmental compatibility, is an outstanding example.

Tencel made a notable contribution to profit in 1993/94 despite an increased level of investment in research and market development.  Manufacturing continuity and yields improved throughout the year.  Dependence on the Japanese market lessened as both US and European demand increased, and by the end of the year sales were equally balanced between all three geographic regions. Construction of a second Tencel plant in the US, which will more than double capacity, commenced in January 94.  It is expected to be on stream by mid-95.

More to come...

Tencel in Courtaulds Annual Reports (1994-95)

In "Chairman's Statement"  
... we have continued to press on with our now well-established basic strategies, particularly the development of Tencel. Building capacity for Tencel has raised our capital expenditure from one-and-a half times depreciation to more than twice. Gearing has risen from 3O% to 37%, but interest cover remains comfortable.  Notwithstanding the requirements through the build-up stage of Tencel, the Board has continued its record of at least maintaining the real value of the dividend. Our plans for the current year, assisted by the recently announced breakthrough in Tencel technology, do not foresee a need to call on shareholders for cash.
In "Chief Executive's Review"
We entered the next phase in the development of Tencel with the announcement of a European plant, to be built at Grimsby in the UK.  A breakthrough in technology enable us to redesign both this plant and the second Mobile plant for much higher output levels, so greatly increasing the productivity of the capital invested.
Tencel had a slow first half of the year as the start up and development costs overtook profits.  By the second half of the year, total revenue was again exceeding total costs.  Over the next two years we shall make a major step up in the size and scope of the Tencel business.  Such developments require heavy upfront investment.  The improvements in productivity have been remarkable however.  They hold much promise for the later stages of the Tencel development programme by when we shall have established a major new fibre process from a natural and self-replenishing polymer.
In "Finance Directors Review" (Howard Evans)
The significant capital and revenue investment in Tencel and the Far East continued to depress the Return on Capital Employed which showed a further reduction to 17%.
In "Fibres and Chemicals"
Demand for and interest in Tencel continued to be very strong with seasonal factors again emphasising the second half relative to the first.  Trading margins were encouraging, but the increase in marketing expenses and research to support the planned development programme more than offset this contribution.  The first US facility is now running ahead of the design specification.  The second of the US facilities is on schedule and should be commissioned in the final quarter of 1995.  Significant progress continues to be made in improving capital productivity and further breakthoughs were achieved in 1994/95
In Research and Product Development
...a high proportion of [Fibres] development work is focussed on Tencel.  Process improvements have significantly reduced the capital cost per tonne and there has been considerable progress both in improving the processability of the fibre and in developing its aesthetic characteristics.

Innovation: Product Development with Tencel (1985-94)

Work with potential customers started in secret in October 1985 based on Coventry pilot plant Tencel.  All the developments to 1994 were organised by Courtaulds Research in conjunction with sales offices outside the UK and Tencel sales. 
There's a bias to nonwovens and technical textiles here because I have little information on the development of apparel textiles. Comments and additional information from those involved is welcome as always!

1985:

Products:  Hydroentangled dry-laid nonwovens, woven Tencel gauze

Markets:  Surgical Swabs (cotton gauze replacement)

Partners:  Chicopee USA,  Johnson and Johnson

Key Players:  Alton Bassett, Eric Attle (CNA)
Products:  Hydroentangled Coverstock (Topsheet)

Markets:  Diapers, Femcare

Partners:  Unicharm (Japan)

Key Players:  Migaku Suzuki,
1986:

Products: Hydroentangled Nonwovens

Markets:  Disposable Wipes

Partners:  Chicopee NV, Johnson and Johnson

Key Players:  Derek Rochford, John Elves

Products: Thermal bonded nonwovens

Markets:  Interlinings

Partner:  BFF Nonwovens

Key Players:  Taki Tyropolis, Bill Kennard
Products: Thermal bonded nonwovens

Markets:  Wipes

Partners:  J W Suominen

Key Players: Jorma Suominen, Esa Paltaala

Products:  Wet-laid nonwovens/Special Papers

Markets: Abaca replacement, tea-bags, food casings
Partners: JR Crompton (UK)
Key Players: Brian Tomkinson, Ivan Gbur
Products: Wet-laid nonwovens
Markets: Drapes/Gowns/Central Sterilising Room Wrap
Partners:  Dexter USA
Key Players: Alan Meierhofer
Products: Latex bonded nonwovens
Markets:  Disposable Wipes
Partners:  International Paper,
Key Players:  Zoltan Mate, Eric Attle (CNA)
Products: Thermal bonded (Powder Bonding)

Markets:  High Loft absorbents

Partners:  Bonar Carelle

Key Players:  ?
1987:

Products: Wet-Laid Nonwovens

Markets:  Wet-Wipes (Viscose replacement - low odour)

Partners:  Stora Kopparberg

Key Players:  Stefan Fors, Peter Fredericks
Products:  Modified Apertured Fabrics

Markets:  "J-Cloths" (polyester replacement), Swabs

Partners:  Johnson and Johnson (Canada)

Key Players:  Errol Tan
Products:  Hydroentangled Nonwovens

Markets:  Surgical drapes and gowns (polyester replacement)

Partners:  Chicopee USA,  Johnson and Johnson

Key Players:  Alton Bassett, Eric Attle (CNA)
Products: Tampons

Markets:  Femcare

Partner:  Johnson and Johnson (Germany)

Key Players:  Fritz Weinstrauch, Rolf Altdorf
Products: Tampons

Markets:  Femcare
Partner:  Tambrands (USA)

Key Players:  Ken Merrill, Eric Attle (CNA)

Products: Dry-Laid Nonwovens - various bonding

Markets:  Interlinings

Partner:  Freudenberg (Germany)

Key Players:  Gerhard Schaut, Johannes Knocke
Products:  Hydroentangled Nonwovens

Markets:  Surgical Dressings (cotton and polynosic replacement)

Partners:  Unicharm (Japan)

Key Players:  Migaku Suzuki, Kunihiko Tozaki (CJL)
1988:

Products:  Flame Retardant Tencel
Markets:  Workwear

Partners:  Albright and Wilson(UK)

Key Player:  David Cole, Les Pearson

Products: Dry Laid Thermal Bonded

Markets:  Floppy Disc Liners

Partners:  Freudenberg

Key Players:  Holger Buchwald

Products: Dry-Laid Latex Bonded

Markets:  Battery Separators

Partners:  BFF

Key Players:  Andrew Kelly

Products: Hydroentangled Coverstock

Markets:  Diapers/Femcare

Partner:  Kendall/International Paper

Key Players:  Drew Horn
Partner: J&J Personal Products
Key Player:  Beth Stern
1989:
Products:  Paper

Markets:  Security Papers

Partners:  Portals (UK), Tumba Bruk (Sweden)

Key Player:  Paul Howland,

Products: Wet-Laid Hydroentangled

Markets:  Industrial Wipes

Partners:  Molnlycke (Holland)

Key Player: Bernt Johannsen

(1990's developments follow)

Glyn Raven quoted on Mobile expansion plans (1994)

Here's a link to a snippet quoting Glyn Raven

Courtaulds to expand 'Tencel' capacity.

Tencel Demand exceeds Supply: Courtaulds goes ahead in Europe (1994)

COURTAULDS HAS confirmed it is planning to build a commercial-scale plant in Europe to produce Tencel, its new cellulosic synthetic fibre. Plans are contingent on approval for the long-planned merger of its European viscose and acrylic staple fibre businesses with those of Hoechst.

Two sites are under evaluation for the plant, Courtaulds' own site at Grimsby, UK, where production was piloted, and Hoechst's Kelheim site, near Munich, Germany. Despite reports in the UK press that a decision on the new plant is imminent, a Courtaulds spokesman confirmed last week that board approval is some months away.

An investment of around £80m ($119m) is envisaged. Capacity will depend on final discussions, but is expected to be around 20 000 tonne/year. An onstream date of 1996 is targeted, but will depend on the timing of the board approval.

The first commercial-scale plant came onstream at Mobile, Alabama, in mid-1992, with a capacity of 18 000 tonne/year. A second plant at the site, to raise capacity to 43 000 tonne/year, is due for completion in mid-1995. The UK pilot unit continues to operate, producing around 1500 tonne/year. Together the plants supply Japan, where the Tencel market is most developed, the US and Europe.

Courtaulds reports a very high market acceptance for Tencel, with demand outstripping current capacity. 'We should be in an easier position to develop the market once the new US capacity comes onstream,' the spokesman said.

04 April 1994 [Source: ICB]

Courtaulds/Lenzing in Lyocell fibre patent dispute (1994)

25 July 1994 [Source: ICB]

A PATENT dispute between rival fibre manufacturers Courtaulds of the UK and Lenzing of Austria casts a cloud over commercialisation of the new generation of cellulosic fibre materials. Lenzing, which last month revealed plans to scale up its Lyocell fibre (ECN 4 July), has instigated legal proceedings in the US against Courtaulds, which has been producing its Tencel fibre at a commercial-scale plant in Alabama since 1992.

Lenzing, which has been granted both a US and a European patent on one aspect of the solvent-spun (cellulose in amine oxide) manufacturing process, is alleging infringement of its US patent by Courtaulds. Courtaulds argues that both patents are invalid in that they relate to an item of equipment that has been in the public domain since the 1970s.

Courtaulds is seeking to have Lenzing's action in a New York court dismissed by summary judgement and to have the patent declared invalid. In Europe, a second higher instance decision on Lenzing's European patent is expected later this year. A first instance decision was awarded in Lenzing's favour this May, despite opposition from Courtaulds and Akzo. A Courtaulds spokeswoman said the company was confident that Lenzing's European patent will in due course be declared invalid and that the company has strong defences to any claim for infringement.

Courtaulds has filed 44 patents of its own relating to Tencel, the

Lyocell: Reversing the decline of Cellulosics (1994)

In fact the reversal (i.e. man-made cellulosics capacity ceasing to decline) began later that decade with investments in large viscose rayon plants in Asia.  This article in Technical Textiles International (first page only here) was the start of the promotion of Courtaulds Lyocell for technical applications and is notable for the details of the dissolution process.

Fibrillated Tencel for Biodegradable Ultra-low Tar Cigarette Filters (1994)

Tencel for technical textiles and nonwovens was launched as Courtaulds Lyocell  in 94-95 to avoid the Tencel brand being contaminated with unfashionable end-uses such as this one.  At that time the board also felt that with the Lenzing Lyocell brand being used for the forthcoming Lenzing launch, the use of a similar name from Courtaulds would be a good tactic.

From Technical Textiles International - December 94 (Peter Lennox-Kerr)

There were many such applications where the fibrillation of Tencel could add value to nonwovens, special papers and technical textiles, and many of these had been discovered in the late 80's when the basic fibre was easy to fibrillate and these markets were to be the first target for Tencel.  However the early 90's decision to switch emphasis to fashion apparel meant the process and new production lines were optimised to minimise fibrillation, and the basic "Courtaulds Lyocell" fibre became harder to fibrillate for technical applications.

Courtaulds ponders European Tencel site (1994)

Courtaulds has not yet reached a decision on the location of its Tencel solvent spun cellulosic staple fibre plant. A decision is expected before the end of the year. 

Four possible locations are undergoing a detailed feasibility study: two in continental Europe and two in the UK. The plant will have an initial capacity of 25 000 tonne/year.

Courtaulds' first $90m commercial-sized Tencel fibre plant in Alabama, US, was commissioned in June 1992. A second plant in the state cost $134m and is under construction. This will increase Courtaulds' Tencel capacity in the US from 18 000 tonne/year to 43 000 tonne/year.

Tencel's fibre properties have allowed it to be utilised in end uses not previously possible for man-made cellulosics. These include denim jeans, chambray shirts and reusable non-woven apparel.

Currently, Tencel is focused on high quality, exclusive apparel markets, but it is being developed for use in non-woven and industrial uses where its strength and ability to absorb moisture give it a competitive advantage.

Gordon Campbell, Courtaulds' director responsible for fibres, said: 'The decision to invest over $200m in two commercial scale plants in the US is extremely sound. The technology has taken us a decade to perfect, but our experience with the US unit makes us confident that now is the time to bring Tencel to Europe.'

A truly global project, R&D for the fibre was carried out in the UK, it was made commercially in the US, and the market was developed in Japan.

Courtaulds is said to have pioneered the commercial manufacture of solvent spun cellulose fibre. Tencel is the first entirely new textile fibre to be developed for nearly 20 years. Courtaulds claims its is the only commercial scale producer of the product.

07 January 1994 [Source: PCE]

LYOCELL FIBRE : REVERSING THE DECLINE OF CELLULOSICS (1994)

 The major disadvantage of cellulose-based fibre production systems has been the pollution associated with the process. Solvent-spun lyocell fibre production based on the solvent N-methyl morpholine-n-oxide (NMMO) which is recovered and recycled during the process is said to be environmentally friendly. The spinning solution comprises crushed wood pulp added to an aqueous NMMO solution. Akzo Nobel Fibres who developed the NewCell process is currently researching ways of producing lyocell filament yarns, while Lenzing and Courtaulds who both have a license from Akzo Nobel are continuing lyocell staple fibre production. Tencel, Courtaulds' version of lyocell staple is, according to the company, stronger than other cellulosic fibres, easy to blend and to process into yarns and fabrics, easy to dye, dimensionally stable in washing and drying and comfortable to wear. 

Lennox-Kerr P., Tech. Text. Int., vol. 3, no. 10, Dec. 94-Jan. 1995, pp 18-23

LYOCELL : NEW VARIETIES FOR NONWOVENS (1994)

In October 1994, Courtaulds has announced that its brand name Tencel will now refer only to yarns and fabrics approved for use in fashion clothing. Courtaulds Lyocell will be used to refer to new varieties of solvent-spun cellulosic for applications in nonwoven products for industry. At this time, Courtaulds only operates one full-scale lyocell production plant in Alabama (USA), although there are plans to construct another plant in Europe.

Anon., Nonwovens Rep. no. 283, Oct. 1994, p. 3.

This was the start of an attempt to allow nonwoven and technical textiles markets to develop with access to a lyocell fibre at a lower price (about 25% above viscose price) without destroying the Tencel premium.  "Courtaulds Lyocell" would be a matt fibre which would be easier to fibrillate but harder to use in yarn spinning than the bright Tencel.  

Courtaulds expects £250m Tencel sales, hopes to announce a fourth plant in China (1994)

Mr Huismans said no decision had been reached on the location of a new European plant to produce the group's revolutionary Tencel fibre. The choice for the new 25,000-tonne facility, expected to cost £90m and generate 130 jobs, was between two sites in the UK, one in Spain and another in Germany. US production of Tencel is being increased from 18,000 to 43,000 tonnes with the addition of a second £134m plant. Courtaulds hopes to announce a fourth plant in China next summer and expects Tencel fibre sales to top £250m worldwide.

A maiden contribution from Tencel failed to stem a downturn in Courtaulds' fibres and chemicals operations, where operating profits fell from £108m to £93m. A sharp decline in Chinese demand led to a flood of imports elsewhere and lower prices for acrylics, acetate tow and rayon.

Lower raw material prices, on the other hand, boosted acetate yarns while European viscose benefited from the growing cotton shortage, ensuring a good start for Courtaulds' £130m acrylics and viscose joint venture with Hoechst.

TERENCE WILKINSON , The independent 

THURSDAY 26 MAY 1994

Sipko Shimmering in Tencel Suit (1994)

Pity there wasn't a photograph with this article. It's hard to imagine Sipko shimmering!

SIPKO Huismans, the Courtaulds chief executive, was yesterday shimmering resplendently in a suit and shirt made of Tencel, the company's wonder fibre. Production of the versatile stuff - it can even be used in water-absorbent industrial fabrics - is to be stepped up to meet increased demand.

Courtaulds is planning a third plant somewhere in Europe and is pondering between Grimsby, Derby, Spain and Germany. Mr Huismans says his pounds 200 blue Tencel suit is a Spanish designer number. This does not bode well for Grimsby.

SIMON PINCOMBE The Independent THURSDAY 26 MAY 1994

PRODUCING CELLULOSIC FIBRE WITH NMMO SOLVENT UNDER LICENCE FROM AKZO (1994)

This unusual abstract contains another mention of Akzo's original invention of the lyocell fibre process and mentions the fact that Courtaulds operated lyocell under licence.   Lenzing had licenced the technology first in 1987 and Courtaulds followed, for reasons unclear in view of the ~5 year lead they had in the technology, in 1990.  Akzo had abandoned staple but were developing a filament version of the technology called "Newcell".  Courtaulds and Akzo collaborated in the further development of "Newcell" and maybe the licencing was part of this collaborative deal.

Courtaulds (USA and UK) is using N-methyl morpholine oxide (NMMO) as a solvent in the production of its cellulose-based Tencel staple fibre. This process is environmentally-friendly and creates virtually no pollution. This method was initially patented by Akzo and Courtaulds is using it under license. There have been some technical problems in applying this method on a commercial scale, but these have been largely overcome. Fabrics produced using NMMO have applications in clothing.

Anon., High Performance Text., Aug. 1994, pp 3-5

COURTAULDS OPTS TO SITE £90M PLANT IN BRITAIN (1994)

Susan Gilchrist of The Times was the first to report on SL2 expansion in 1993 and this announcement of SL3 is similary confusing.  (If the original text surfaces it will be posted. Unfortunately I don't have access to The Times archives at present.)

Chemical group Courtaulds have opened a £90m plant at Grimsby to produce the company's revolutionary Tencel fibre. This will create 120 jobs. Pioneered by Courtaulds, Tencel is used in clothing and industrial applications, and the plant is due to start production early in 1997. Eastern Germany was the front-runner in the choice site for the plant, but was narrowly beaten by Grimsby when the Department of Trade and Industry agreed to provide a £10m grant towards funding the plant. The Group expects Tencel to produce annual sales of £450m by the end of the 1990s. Profit and loss figures are listed.

Gilchrist S., The Times, no. 65,120, 24 Nov. 1994, p. 27

COURTAULDS AND HOECHST VISCOSE/ACRYLIC JOINT VENTURE (1994)

This news first emerged in a May 93 article.  I also mentioned confused customers in an earlier post which covered the sale of the SAICCOR pulp plant (getting out of commodity businesses like fibres and textiles) to fund buying into the adhesives and aerospace and to increase focus on higher value businesses.  

Here, Courtaulds appear to be strengthening the fibres businesses again, but only in Europe.

Courtaulds and Hoechst have completed the agreement to merge their European viscose and acrylic fibre operations. The new joint venture in which Courtaulds will have a majority shareholding, is called Courtaulds European Fibres. Courtaulds' Tencel and US viscose businesses and Hoechst's other fibre operations are not included in the agreement. The joint venture will be Europe's second largest fibre producer, with 30% of total viscose and 25% of total acrylic staple fibre capacity. The agreement covers operating facilities in Spain, Germany and the UK's Courtaulds Fibres Ltd. The combined annual turnover of these operations is some £360m.

 Anon., Text. Mon., May 1994, p.2

A Great New British Fibre, Tencel: A rattling good yarn from a tree (1994)

This is a piece written for The Independent by John Emsley - a regular writer on cellulosics - who first mentioned Tencel in the "Plant a tree for Chemistry" article for New Scientist in 1987.  He appears to have spoken to David Giachardi, Gordon Campbell, and Pat White.  The last sentence is particularly prescient!

The first artificial fibre, rayon, celebrates its 100th birthday this year. Courtaulds, the chemical company that was built on its success, has launched a new version of this old polymer - and fashion-conscious Japanese are paying pounds 300 for jackets and jeans made from it. The new fibre is Tencel and it was developed by chemists at the company's research labs in Coventry. Courtaulds is now wondering where to build a pounds 90m plant to supply the European market. Britain is a possible location.

According to the Courtaulds director Dr David Giachardi: 'Tencel is the first new fibre to be launched in 30 years. It is very different from the older forms of rayon, and has a luxurious feel, yet can be used to make tough-wearing clothes.' Marks & Spencer has already testmarketed garments made from Tencel

and found demand quickly exceeded supply.