Courtaulds Lyocell at Index in Geneva (1996)

The date is 16th Feb 1996 and this photo of the Courtaulds Lyocell market development team and the Viscose (Nonwovens) marketing team was taken on the Courtaulds Fibres stand at the EDANA Index show in Geneva.

From Left to Right:  Pam Johnson, Marilyn Middleton, Fred Towers, Manny Coulon, Angela Lindsay, Fritz Herbig, ??, Calvin Woodings, Matthew North, Chris Potter, ??, Alan Bartholomew,  David Hoyland.

(Please add a comment if you can fill in the ??)

Tencel in Courtaulds Annual Reports (1995-96)

This report contains Sir Christopher Hogg's excellent summing up of the project prior to his departure.

Inside Front cover...

Our strategic objectives are to build Tencel, our pioneering lyocell fibre, into a leading fibre throughout the world ...and [especially] in the fast-growing Asia Pacific region.

Page 1.  In "Principal features of the Year" - first point...

Demand for Tencel exceeds capacity.  Second plant opened; construction of third plant accelerated.

In Chairman's Statement (Sir Christopher Hogg)...

...and we sold more than 25,000 tonnes of Tencel to an increasingly receptive and varied group of customers around the world. 

Of these forward indicators, it is the evolution of Tencel which promises the most. Even at this stage of its development, 18 years after the start of serious work on it in our research laboratories, it is difficult to judge how far and how fast it will progress. But I believe Tencel will be as significant in shaping Courtaulds future in the 21st century as was viscose rayon, with which Courtaulds pioneered the world man-made fibre industry, at the start of the 20th.

The project (then called Genesis) to create a new cellulose fibre process was first referred to in the Report & Accounts for 1981/82. Shareholders might well ask, therefore, whether we could not have reached the present point much earlier, Perhaps; but we are well ahead of our only known competitor. And the fact of the matter is that timescales for large and genuinely innovative projects are long. lndeed, they are often so long from conception to payback that they would never get started, even with perfect knowledge of the future, if investment was determined solely on the basis of discounted cash flow.

One way of looking at Tencel is that we have already invested more than £300m in a long and risky journey and we are still some way off a proper return. Another way of looking at it, however, is that the Company can go into the next century having found what it has been looking for since the 1940s, namely a secure basis for long-term growth - a basis, furthermore, which is absolutely rooted in what Courtaulds has been doing for most of its history. lt is the task of every generation of management to take the best things in its inheritance and shape them so as to survive healthily the 'creative destruction' of the capitalist process. Tencel is fully in keeping with that endeavour.

In Chief-Executive's Review (Sipko Huismans) ...
There was also some good news on the fibre front. First and foremost was that Tencel has now passed the commercial lift-off phase. Demand, now and anticipated for the next few years, exceeds our planned capacity. That is in spite of the fact that we have now commissioned the new 25,000 tpa second phase Mobile plant, The Grimsby plant programme has now been accelerated and the planned phases one and two will be built simultaneously. Whilst this is already a daunting technological challenge it would remain only that, but for the progress being made in the market place - both technical and commercial. ln this respect we owe a debt of gratitude to those early customers in all three continents, who did so much to overcome the initial constraints in fabric finishing capacity. 

lt is one of the most gratifying aspects of the entire Tencel story to see equipment suppliers bring out special machinery to deal with Tencel - just as happened for polyester in earlier years. I have no doubts that if the rate of progress over the last five years is sustained, Tencel

can be one of the world's major man-made fibres in the 2lst century. As with viscose earlier this century, Courtaulds will have pioneered this first lyocell fibre and should be the major player in lyocell for many years to come.

In Finance Directors Review (Howard Evans)...

Capital expenditure at £177m was again over twice depreciation and in line with last year. ln addition to maintaining the normal levels of capital expenditure in the Company's established businesses, this year's expenditure includes significant investment in the completion of the second Tencel plant at Mobile and the expansion programme in the Far East. Expenditure plans for 1996/97 are a little higher than 1995/96. The major projects in 1996/97 will include the construction of the new Tencel plant at Grimsby...

The significant capital and revenue invested in Tencel and the Far East over the last few years have continued to depress the Group's return on capital employed which was again 3.6% lower than it would have been if these activities had been excluded.

In Business Review (David Wilkinson)...
Demand for Tencel, now in profit despite development costs, was very encouraging. We opened our second plant, more than doubling our capacity, and accelerated the investment programme.  Together with new technology this will give us some 100,000 tonnes of Tencel capacity by early 1998.

The development of the Tencel market accelerated in 1995/96 as work with customers in Japan, USA and Europe bore fruit, and Tencel broke through into profitability. We were reassured by the pattern of the demand, which was widely spread, both in terms of end use and of geography. By the end of the year demand was so strong that the extra capacity promised by the second US plant, also at Mobile, was badly needed. Unfortunately, bad weather caused delays to the start-up of the new plant and its first line could not
come on stream until mid-February. Subsequently, production reached anticipated levels rapidly, with excellent product quality. The new plant's second line started up in May 1996 (sic - see photo caption), on schedule.

As a consequence of the very strong demand for Tencel, and of our confidence that this would be maintained, the original plans for the third plant, at Grimsby, were modified. The facility will now be built in one single stage with a capacity of 42,000 tonnes. Together with the retrofitting of new technology to the Mobile facilities, this will take our total capacity to almost 100,000 tonnes by early 1998. We believe that this rapid expansion will enable us to maintain our marketing, technical and cost advantages, and reinforce our
competitive position.

In Research, Technology and Development (Eryl Morris)...
Tencel and its generic family, lyocell, are still only in an early stage of development some 18 years after work began. With such a radical method of manufacture, resources continue to be devoted to the improvement of process performance and capital productivity, with the objective of reducing capital cost per annual tonne of production. ln terms of the product itself, the exploitation of lyocell is still in its infancy, and the scope for developing it to meet a wide range of applications, from high fashion to industrial uses, is very substantial. The research and development work needed to achieve this is essentially long-term, extending into the foreseeable future.

Tencel in Courtaulds Annual reports (1996-97) Part 1

With about £1 of the Courtaulds share price being generally regarded as a premium riding on a successful outcome of the continuing Tencel investments, this annual report features Tencel like no other.  Tencel is mentioned on 10 pages and in 4 illustrations.  Since the last report, Sir Christopher Hogg has been replaced by Sir David Lees as Chairman and Sipko Huismans by Gordon Campbell as CEO.  Expansions at Grimsby and plans for a 50,000 tpa plant in Asia are mentioned.

This is also the first report to mention the development of "Courtaulds Lyocell"(tm) for nonwovens and industrial textiles.  These were the original "launch" markets for the Mobile SL1 plant justification back in 1989-90, but these developments were sidelined as strategy switched to a fashion-first launch. Here are the main pieces:

In Chief Executives Review...
Despite an almost doubling of capacity in the early part of 1996, demand for Tencel exceeded our capacity, and we had to balance the development of demand with our ability to supply. This was difficult but important, since existing demand is primarily from the textile market and we have an untapped industrial market still to develop. The most encouraging feature of the textile demand, however, is the breadth of products now available from our customers and which demonstrate the versatility of Tencel. 

Clearly, the parts of the textile industry which will survive in the developed world are those that are capable of creative and innovative design. It is unsurprising, therefore, that Europe has now joined Japan as a major market for Tencel. Our next Tencel plant - the first in Europe - is intended to serve this market and is on schedule to open before the end of 1997 Tencel also made a firm breakthrough into profit last year despite unfavourable exchange rate movements and the increasing expenditure on marketing. The latter, together with continued investment in research and development, imposes short term costs but is essential if Tencel's world leadership is to be maintained.

Capital expenditure remained high in 1996/97 Tencel is a significant component of our capital spend, but we are not ignoring the potential in our other businesses...

In "Positioned for Growth"...
Tencel the fibre of the future...For the last five years, Courtaulds Fibres has been the only producer of a new cellulose based fibre, the first new fibre to be developed anywhere in the world for a third of a century. The raw material is woodpulp, from the trees of harvested, self-sustaining forests. lts production process produces virtually no effluent and it is extraordinarily comfortable to wear. Its generic name is lyocell. Courtaulds now markets it in two forms: Tencel for apparel and home furnishings and Courtaulds Lyocell for industrial uses. Both have huge potential but it is Tencel with its direct appeal to the Consumer, which has captured the public imagination wherever it has been introduced.

Tencel has exciting colour characteristics, can produce a wide range of textures, and has excellent, and varied, aesthetic qualities. Tencel has immense scope in fashion markets both in pure form and in refined blends with silk, linen and wool. Tencel now features in the ranges
of an increasing number of fashion houses, such as Calvin Klein, Donna Karan, Joop!, Georges Rech, John Rocha, Armani, Lacroix, Jean Paul Gaultier, Paul Costelloe,  Ferre and Cerruti. And this is only the beginning.

The qualities that make Tencel so special also open a broad spectrum of opportunities for its industrial variant, Courtaulds Lyocell. The fibre's unique combination of strength and absorbency make it suitable for a wide range of uses, ranging from protective clothing for North Sea oil rig workers to surgical gowns; medical swabs; incontinence pads; oil and smoke filters and even teabags and sausage skins. 

Courtaulds Fibres pioneered lyocell and launched it as Tencel in l992. lnitially marketed in Japan, its rapid success was a powerful indicator of its potential. Today sales of Tencel are expanding rapidly in North and South America, Europe and Asia-Pacific.

Tencel and Courtaulds Lyocell are at an early stage of their lives, and the scope for development is huge. They are the fibres of the future, and Courtaulds is clearly in the lead, a full five years ahead of its closest competitor.

Tencel in Courtaulds Annual Reports (1996-97) Part 2

Inside Front cover...

Our strategic objectives are to build Tencel, our pioneering new lyocell fibre, into a leading fibre throughout the world ...and [especially] in the fast-growing Asia Pacific region.

Page 1.  In "Principal features of the Year" - first point...

Tencel demand continues to climb. European plant on schedule for Autumn 1997.

Page 2. Illustration...

Page 3.  In "Cellulosics"...

Tencel: Radical new lyocell fibre with exceptional qualities of strength, absorbency and softness for a wide range of fashion apparel.  Also Courtaulds Lyocell for industrial, medical, hygienic and other applications.  Plants in the USA and from October 1997, UK.

In Fibres and Chemicals..

Despite the successful commissioning of a second plant in Mobile, Alabama' more than doubling annual capacity to 43,000 tonnes, Tencel had difficulty in keeping up with demand. The volume of sales rose strongly over the previous year and operating results moved firmly into profit despite increased development and marketing expenditure, which is being incurred to establish a global franchise for the Tencel brand.

The development of a range of fibre variants to meet the growing interest in Tencel and Courtaulds Lyocell (for industrial and technical applications) is progressing well. New techniques for dyeing and finishing TenceL fabrcs are advancing rapidly, assisted by close working relationships with machinery manufacturers and chemical and dyestuff suppliers. ln this area the collaboration between Tencel Research and Technology and the Tencel Kai (the group of Japanese textile and apparel manufacturers who are working together on Tencel's development) in Japan is paying valuable dividends.

Tencel garments are now being actively promoted at retail level in 31 countries worldwide. Close partnerships with innovative textile manufacturers in every region are helping to increase the range and variety of Tencel fabrics available to garment makers. While Japan led the way, recent progress in Europe has been particularly encouraging in this regard.

Construction of Tencel's first European plant at Grimsby is on schedule and production will begin there in October. Planning for the next phase of Tencel's expansion, involving the construction of a 50,000 tonne plant in Asia, is at an advanced stage.

click to enlarge

Innovation: Product Development with Courtaulds Lyocell (1994-1999)

"Courtaulds Lyocell", a cut-price version of Tencel finished to discourage its use in premium apparel applications, was launched at Tech Textil in June 1995 and with it came a proliferation of developments in nonwovens, special papers and industrial textiles.  "HF100", a version intended to be easier to fibrillate in papermaking and hydroentanglement was also launched.  Between 1995 and 1998 over 400 separate developments with these fibres were initiated.  
Some of the key markets and trialists are listed below:

Click here for earlier developments under the Tencel brand.

Abrasives: Backing cloths and papers for belt and disc sanders and polishers: 3M, Sumitomo 3M, English Abrasives and Chemicals Ltd.

Absorbent Wadding: Brannoc Fibres, Edward Hall

Air-laid Papers and Nonwovens: (for absorbent cores, wipes, tissues, filters, separators): United Paper Mills, Metsa Serla, Walkisoft, Laroche, Sofrance, Papeteries Canson & Montgolfier SA, Bernard Dumas SA, Fort James, Duni AB.

Automotive Felts: Borgers GmbH, Vereinigte Wollwarenfabriken GmbH, Fiberduk

Automotive Filters:  Toyo Tokushi, Sommer Alibert GmbH

Automotive Upholstery: Courtaulds Textiles Auto Products

Baby Diapers:  Linostar SpA, Procter and Gamble, Personalidzados

Bandages: Thuasne et Cie

Battery Separators: Nippon Kodoshi, Kuraray, Varta Batterie AG, Papetries de Mauduit

Biocomposites: Institut for Structurmechanik, DLR (German Aerospace R&D)

Belting (Conveyors): Marathon Belting Ltd.,

Building Nonwovens:  Dexter AB

Cabin Air Filters: British Filters Ltd

Calendar Bowl Papers: Buhl GmbH

Carpets:  Arlex

Cigarette Filters:  Papeteries de Mauduit, Filtrona International, Philip Morris, Japan Tobacco, Austria Tabak, Papierfabrik Wattens GmbH, Rothmans International

Cleaning Cloths: Lever GmbH, Textilwerke Emsdetten, Freudenberg Haushaltproduckte KG, Rydals Garn AB, Guldner GmbH, Spontex International, Jean Kraut AG

Coating Bases/Artificial Leather: Syntz, ORV, ORSA, Redbridge International, Sangular, Corexim SRL

Composite Reinforcement: Matsushita Denko, ETH, Tufnol, Owens Corning fibreglass, Coventry University, Les Fils d'A Chromarat et Cie, Moy Nonwovens, LNP Engineering Plastics, Fothergill Engineered Fabrics

Carbonless Paper: Carrs Paper Ltd.,

Currency Paper:  Tumba Bruk, Louisenthal, Thomas de la Rue, Crane, VHP Security

Decorative Felts:  Fytisa

Decorative Papers: Tokushu Paper, Oji Paper

Disposable wipes:   Spontex, J&J, P&G, BFF, Lohmann, Hainan Xinlong, Dupont, Sanwa, PGI-Chicopee, Veratec, Daiwabo Nonwovens, Unicharm, EFI Lahav, J W Suominen, Sage Products Inc. Ahlstrom Lystil OY, Arbora

Disposable Apparel: Dupont, Nisshinbo, PGI Chicopee

Dressings:  Smith and Nephew Medical

Durable Wipes:  Dupont

Duvets and Pillow Fillings:  Trendsetter Home Furnishings

Felts: FIR

Filters:  3M Filtrete bv, 3M UK, Purity Textiles PVT Ltd., Devon Valley Industries, Seitz Filter Werke, Steinbeis-Gessner, Hollingsworth and Vose, Fluid Dynamics, Cuno, Valeo - Division Fils Techniques, Unichem Corp., Schoeller and Hoesch, J C Binzer GmbH, J R Crompton, Ahlstrom Filtration, Memcor Filtertechnik GmbH, Electrolux AB, Alias Technology and Filtration, Technical Fibre Products, Humber Fabrics Ltd, UFI SpA, Lydall Inc., Technical Textiles Lorrach, Whatman Paper, Schleicher and Schuell, Sattler Textilwerke
Fine Papers:  Modo och Domsjo, Curtis Fine Paper 

Flame Retardant Fabrics: Mehler Technishe Textilien, Pincroft Dyeing and Finishing, Dorma, Carrington Career and Workwear, Dale A/S, Albright and Wilson (Proban Provider),Alfredo Grassi spa,

Flock: F H Wrigley, Schwarzwaelder Textil Werke, Fratelli Casati, Le Flockage, Hiva Products, John Peel and Sons

Flushable Wipes:  Ahlstrom Lystil SA

Home furnishings: Dranger Design AB, Kvadrat, Filatura Pettinata Alta Biella srl, CIPA Lin,.

Industrial Fabrics: Lantor UK, Gekatex SA, Perseverance Mills, DMC, Troll Safety, Ten Cate Advanced Textiles, , IPT Group, Casa Moda, K Stormark

Interlinings:  BFF, Freudenberg, Intissel

Knitted Fabrics: Soc. European de la Maille, Guilford Mills, Wykes, Chromarat Textiles, Karl Meyer, Bergham Weaving AB

Loudspeakers:  Tannoy Ltd., Kurt Mueller, Onkyo KK

Mattress Covers: Anallegro, Baekaert Textiles

Medical Fabrics and Papers: J&J, Smith and Nephew, Karl Otto Braun, Barlow Paper, Union Textil de Tourcoing, Arjo Wiggins SA, Molinier Industries, Beiersdorf AG, IPM Textiles, Vernon Carus, 

Military Uniforms: Quartermaster Department of the China Army, UK Ministry of Defence, Natick US Army Soldier Center, Spinnerei Kunz, 

Needlefelts: FILC Menges, Pro Tec GmbH, Sage Products Inc., Fritz Landolt AG, Kahnes and Co., Tharreau SA, Vita Fibres, BWF Textil GmbH, Tefisa SA, Dittrich and Sohne, Flytex Srl, Freudenberg (Weinheim), Freudenberg UK, Borkent Bv, Althoffer

Paintshop and Printing Wipes:  SCA Hygiene Paper

Parchment:  Sibille Dalle

Photobase Paper: Eastman Kodak,  Felix Schoeller, 

Rubber Reinforcement:  Dunlop Ltd, Akerlund & Rausing, Hutchinson SNC

Scrims: Fothergill Crenette Ltd, Chavanoz Industrie

Sewing Threads:  Levi Strauss, American and Efird, Coats (several divisions), Gutermann, Cousin Freres SA, Hilaturas y Tejidos de Levante SA, DMC Fils a Coudre, Empriss Mills, Belgian Sewing Threads, The Israeli Processing Co Ltd, Oxley Threads, Manila Bay Spinning Inc., Fil Man-Made, Vich Industrial, Werneth Ring Mills, Hilatoros Technicos

Shoe Construction: Nike, Western Board, Promocompo LDA, IS Supplies, BUSM/Texon, Service House Lahore

Speciality Paper: Neu Kallis Special Paper, Papierfabric Lahnstein, Fukuda Paper, La Papelera de Besos, Bollore Technologies,  James Cropper, MB Special Paper SA, Arjo Wiggins Appleton

Sponge Reinforcement:  Spontex Espana

Stitchbonding:  Cosmopolitan Textiles, Welbeck Technical Textiles

Tampons: Tambrands, J&J

Tarpaulins:  Borghorster Warpspinnerei

Tenting:  Ten Cate Technical Fabrics

Tea-Bags: Dexter Nonwovens, Miki Tokushu, Taylors of Harrogate, Papeteries de Cascadec

Vacuum Cleaner Bags:  MB Special Paper, Melitta Household Product

Waddings:  Libeltex bv

Workwear:  Carrington Career and Workwear, Klopman International, Weberei Wangi, Ten Cate Protect, Lauffenmuhle Textil GmbH, Boras Watveri AB, Beijing Public Security Bureau, Hironen Co., Taizhou Jitai Worsted Spinning, Boco GmbH, Textil Santanderina, Unit Products AB, Sagatex ASA, Landau Shamash Ltd., Patron Saint,

Wipes:  (see also Disposable Wipes) Lever Espana

Wound Care: Speciality Fibres and Materials, Nimrod, Lantor International, Johnson and Johnson, Bristol Myers Squibb, AM International, Veratec

The Analysts View of Tencel - Part 2: SBC Warburg (1996)

This report dated June 96, which first appeared in the "engine room" in January 1997, gives information on the planned expansions, their capital cost, the costs of some raw materials and other costs, and the assumed Tencel selling prices.  The high marketing cost of developing the fashion end uses in the early years is notable.  Three pages are reproduced below:

Tencel stretches the bounds of fibre profits (1996)

A major update on the Tencel business by Alex Scott of International Chemical Business magazine based mainly on an interview with David Wilkinson:

Industry experts have been backing lyocell, a high performance cellulose fibre, in increasing numbers since its emergence from the Courtaulds pilot plant in the UK in 1988. But are they justified in tagging it as the fibre of the future? Alex Scott reports on the latest twists in the emergence of lyocell.

'These are Next jeans - they are a 40:60 mix with cotton. Oh, and this is Versace,' says my guide peeling a brilliant orange blouse from its hanger. The white tiles and soft lighting belie a chic clothes boutique - but really I am being treated to a view of the future of the cellulosic fibre, Tencel, at Courtaulds' London headquarters.

'It is very comfortable, and strong, and attractive, and is certainly superior to viscose rayon,' says David Wilkinson, an executive director at Courtaulds, responsible for the company's fibres business.

With demand increasing it is apparent that Wilkinson is not the only one to be impressed: 'Tencel has substantial advantages over viscose, which is a 1.7m tonne/year market... the potential of Tencel is considerable,' says one UK analyst.

An Upbeat Release: Courtaulds Looks Ahead (1996)

Courtaulds' Tencel fibre looks set for a buoyant year after CEO Sipko Huismans said: 'We cannot keep up with demand.'

Production is underway in Grimsby, UK, and Mobile, Alabama, and capacity is set to top 100 000 tonne/year by end-1997. 'Tencel holds about 0.1% of the world fibre market but its potential is huge,' he said.

Courtaulds this year won a patents dispute with Lenzing over Tencel - a decision is still under appeal in the US. 'We do not fear another competitor,' said Huismans. 'Two producers would expand the market faster than one.'

Last year Tencel was in the black for the first time and is set to make significant turnover and profit gains this year. However, Tencel's success was offset by other divisions.

27 May 1996 [Source: ICB]

Courtaulds accelerates expansion plans, but Tencel has cost problems (1996)

• Tencel's for the next century.  Short term it has problems.
• Excessive cost of Tencel...too high to command anything but the designer market.
• Courtaulds says it is reducing its costs, but its initial confidence has given way to subdued assertions that its five-year lead in the marketplace will guarantee it a strong position.
• Lenzing claim cost advantage.
• Prospect of Asian giant (Garuda) buying Lenzing stake and pumping millions into Lyocell.

Lyocell is much stronger than viscose, allowing it to be used in finer fabrics, and absorbent, unlike synthetic fibres such as nylon, acrylic and polyester. Lyocell's developers say it creates fabrics that handle like cotton, feel like silk, hang like wool and are machine washable. It also offers environmental benefits, such as non-toxic production, little waste and renewable raw materials.

Because lyocell is similar in texture to silk, it is expected to become very popular in east Asia, where an increasingly affluent middle class is demanding high quality, colourful fashions suitable for the warm, high humidity climate experienced across the region.

In the lyocell process wood pulp is dissolved in N-methyl-morpholine-N-oxide (NMMO) solvent to produce 'dope' which is then extruded into a spinning bath of solvent, producing cellulose filaments. By contrast, the viscose process involves chemical breakdown of the wood pulp and produces sulfurous effluents.

In addition to the fibre's superior properties - high wet and dry strength and low shrinkage - lyocell's production process is simpler and quicker than viscose's. It is estimated that, from start to finish, the lyocell process takes three hours compared with over 40 hours for viscose.

Both Courtaulds and Lenzing developed their processes for making lyocell from wood pulp on technology processes licensed from Akzo, the Dutch chemicals company. Patent rights to lyocell are claimed by both Courtaulds and Lenzing, tying up global development plans in legal battles on both sides of the Atlantic.

Courtaulds was the first to produce lyocell staple fibre commercially, and is still the only commercial-scale producer. The company has put hundreds of millions of pounds into the fibre, which it calls Tencel, in the hope that it will provide the

Lyocell is to be tested in Japan (1996)

Lenzing Lyocell fibre patent revoked by EPO (1996)

This is an update: the earlier abstract being replaced by the complete article as it now appears on the web.

The Appeals Board of the European Patent Office (EPO) has ruled that a Europe-wide patent - one of a number of patents applied to the manufacture of lyocell solvent spun cellulosic fibre - which was previously obtained by Lenzing, is invalid. No right of appeal is being given to the judgement.

Litigation to negate the patent was initiated by Courtaulds in September 1994. The patent was revoked on the grounds that the method of manufacture was 'obvious'.

Lenzing said other patents covering advances in lyocell technology are not affected and that the EPO decision will not affect the start of lyocell production facilities in Burgenland, Austria.

The cellulosic fibre is sold by Courtaulds under the trade name Tencel. Courtaulds deputy ceo Gordon Campbell commented: 'We are pleased with the result, which completely vindicates our position. However, we strongly believe that both Courtaulds and Lenzing should now put this issue behind them.'

Lenzing is still awaiting the outcome of its US appeal which will be heard at the end of 1996.

Anon., Eur. Chem. News, vol. 65, no. 1716, 13-19 May 1996, p. 8

This patent litigation was quite a big issue in the 90's and this is the first time it has made an appearance in this blog.  Here's a 1998 summary of the issue:

Lenzing obtained a patent in the USA for a lyocell process, some aspects of which had been operated by Courtaulds for many years, and indeed were used in production at Courtaulds Tencel® plant in Mobile. Courtaulds naturally objected, and applied for summary dismissal of both the US and the subsequent European patent. In Europe, the Munich court would not allow the Lenzing patent to be dismissed summarily and the case went to trial. Courtaulds won, and Lenzing's European patent was disallowed with no right of appeal. 

In the USA, the Lenzing patent was summarily dismissed, but Lenzing appealed successfully, winning the right to another costly trial. At this point the two companies reached a settlement out of court. The lyocell patent estates of both companies were pooled, to be available royalty-free to both companies. It is perhaps worth noting that the settlement only covered patented technology. There was to be no sharing of "know-how" gained in the operation of the process, which at the time, had only been commercialized by Courtaulds.

From "Regenerated Cellulose Fibres"

Lenzing loses Lyocell Judgement (1996)

Courtaulds has obtained a Summary Judgement in the US courts over its alleged breach of Lenzing's US patent in respect of the one process step in the manufacture of lyocell fibre, which also sells under the Courtaulds brand name of Tencel.

The Judge held Lenzing's patent to be invalid and that Courtaulds should be awarded costs.

Lenzing said the Judge rejected its patent for failure to disclose the best mode of the invention. The best mode requirement is unique to the US-patent law. Lenzing intends to appeal against the US decision.

This decision is unrelated to the pending litigation before the European Patent Office in Munich and the UK. In May 1994, Akzo and Caurtaulds' opposition against the European Patent was rejected by the European Patent Office, against which both Courtaulds and Akzo have appealed.

01 January 1996  [Source: PCE]

Concurrent start for two UK Tencel lines (1996)

AS A result of rapid growth in demand, Courtaulds has revised investment plans for its third Tencel unit at Grimsby, UK. Both production lines will start up simultaneously rather than in two phases.

The plant will come onstream in mid-1997 and be fully operational by Q1 1998. Capacity is set at 42 000 tonne/year. Investment costs will amount to £120m ($186m).

The company's second unit at Mobile, Alabama, US, is currently being commissioned.

Capacity has increased from 18 000 tonne/year to 43 000 tonne/year. Further expansion is planned over the next 18 months to 55 000 tonne/year as the company incorporates new technology.

Courtaulds has said there is sufficient demand to use all of this new capacity immediately.

Demand is accelerating and Tencel will move from loss into profit this year, Courtaulds claimed.

26 February 1996 [Source: ICB]

Genencor and Courtaulds collaborate on enzyme treatment of Tencel (1996)

A reminder of how important enzyme finishing was to the early success of Tencel in apparel.  The enzymes dissolved the fibre "cuticle" and some amorphous cellulose to allow the fibrillar structure to be raised into a microfibre surface.

Following initial agreement in March 1995, an R and D collaboration between Genencor and Courtaulds Fibres to develop enzyme products to treat Courtaulds' lyocell fibre, Tencel, has been extended for two years. The companies aim to produce more distinctive and cost effective fabrics by exploiting the fibrillation qualities of these cellulosic fibres. Both companies will comarket Genencor enzymes to fabric processors all round the world.

 Anon., Eur. Chem. News, vol. 66, no. 1734, 30 Sept.-6 Oct. 1996, p. 14 (P)

Environmental Impact of Hemp, Tencel and recycled PET fibres in Apparel (1996)

Interesting early observations which, now that the "medium term" has arrived, seem accurate.  Not sure about the longer term though: cellulose doesn't seem to be getting "scarce", and its hard to forget the old adage about hemp in apparel ("Its remarkable how little hemp it takes to ruin a good garment")

Three fibre sources, hemp, Tencel and polyester derived from recycling polyethylene terephthalate (PET) beverage bottles, are compared with respect to their suitability for use in garments and their ecological impact. In the short term, recycled polyester will be the most attractive option. In the medium term, Tencel (lyocell) cellulosic fibres will be highly successful, but hemp may be most successful in the long term as raw materials for the other products become more scarce. Hemp processing is simple and the plant grows well, but it may be difficult to limit tetrahydrocannabinol levels. Tencel has very desirable characteristics but is currently expensive to produce. 

 Drury K; Slater K., Text. Trends India, vol. 39, no. 3, June 1996, pp 29-33

Unique nonwoven process used by Greenwood Mills to finish Tencel (1996)

This looks a bit peripheral, but bear with me.  Courtaulds Research work on hydroentangled nonwovens was intensified in joint work with the Kendall Corporation aimed at reducing residues extracted from rayon by the high pressure "washing".  Kendall and International Paper formed Veratec and in the course of continued joint work we showed them (late 80's) how a knitted Tencel fabric could be stabilised by fibrillation in hydroentanglement.  I had no idea the process was later used on woven Tencel denim.  Were they trying to fibrillate it to create peachskin or simply create a washed look? (The Interspun trade mark was abandoned by Polymer Group in 2003)

InterSpun, a hydroentanglement technique developed by InterSpun Veratec, Sort Mill, SC, USA, changes the surface fibre arrangement of textiles to give increased bulk, greater opacity and improved handle. The method is suitable for use with various textile fabrics including wool, silk, cotton, nylon, polypropylene, polyester and rayon. Applications include garments, furnishing fabrics and industrial textiles and because the fabric's permeability can be adjusted using the treatment, it may also be used for air bags and gas or liquid filtration materials. JPS Automotive LP has patented this application in connection with production of InterLochen air bag technology, which will be incorporated into vehicles from 1997. Greenwood Mills uses InterSpun technology to produce Tencel (lyocell) denim and chambray fabrics.

 Smith W C., Tech. Text. Int., vol. 5, no. 8, Oct. 1996, p. 11

Tencel: £15 million profit expected: Collaboration with Akzo, Asahi on Newcell (1996)

The high performance cellulose fibre lyocell has great potential in the textile industry with supply currently unable to keep up with demand. Most of the 43,000tpy of lyocell produced is made in the traditional staple version, Tencel, by Courtaulds in two plants in the US. This production is to increase to 55,000tpy by the end of 1997 by which time a new 42,000tpy production plant in the UK will also have come on stream. Profit from Tencel sales is expected to earn Courtaulds £15m in profits in 1996. 

In a collaborative agreement with Courtaulds, Akzo Nobel is developing Newcell, a continuous filament version of lyocell. Both companies are participating with Asahi in an evaluation of the Japanese market for Newcell. Lenzing, Austria, is planning to bring a 42,000tpy lyocell staple production plant on line in 1997. 

Scott A., Eur. Chem. News, vol. 66, no. 1730, 2-8 Sept. 1996, pp 18-19 Now in full at this link.

Tencel or Tinsel? Can Tencel be brought into the mass market? (1996)

The following article is from the Investors Chronicle of 16th Feb 1996 and illustrates the pressure arising from something like £0.8 to £1 of the Courtaulds share price being based on expectations of great things from Tencel.  The fact that Tencel was costing about  twice as much as "the materials it would have to supplant" to justify a 50% price premium, conveys the magnitude of the marketing effort required.

From The Investors Chronicle

Asian volume growth boosts Courtaulds: Record Tencel Sales (1996)

 Operating profits of £150m and £1.017m sales were reported by Courtaulds for 1995-1996. Sales rose by 10% compared with 1994-1995, assisted by an increase in volume of sales in Asia, particularly in coatings/sealants. Profits decreased by 8.5% as a consequence of fluctuations in the price of raw materials for acrylic and viscose. Record Tencel fibre sales were achieved, augmented in May by a European Patent Office ruling that Lenzing AG's patent is not valid. Courtaulds commissioned an additional Tencel manufacturing facility at Mobile, Alabama, USA, in February 1996 and is adding 42,000tpy to its plant at Grimsby, UK. Courtaulds Packaging, Shanghai, China commenced operation in May and a new South Korean coating plant is currently being constructed.

Anon., Asian Chem. News, vol. 2, no. 78, 3 Jun 1996, p. 10

Courtaulds increases tempo of Grimsby lyocell project (1996)

High demand for Tencel cellulosic fibre has encouraged Courtaulds plc to accelerate construction of its new 42,000tpy lyocell production facility in Grimsby, UK. The plant was to be built in two stages, the first of which (30,000tpy capacity) was due to be commissioned in 1997; now it will be constructed in a single stage and this, together with the use of new technology currently being installed at the plant in Mobile, Alabama, USA, will increase the company's lyocell production capacity to just under 100,000tpy in 1998. Plans for a plant in Southeast Asia were announced in 1995, but its location was not stated.  

 Anon., Nonwovens Rep. Int., no. 303, June 1996, pp 5-6