Tencel in Courtaulds Annual Reports (1981-90)

The Courtaulds Annual Reports contain concise statements of the progress of the Tencel development year-by-year.  These statements have been pasted into a series of 10 posts which can be read in sequence by scrolling down from here:

1981-82 - under "Research"

Technology is being developed in the use of novel solvents for the conversion of woodpulp to regenerated cellulose products, leading to lower effluent levels and reduced energy consumption in the manufacturing process.

1982-83 - under "Courtaulds Research"

 A pilot plant incorporating a process which directly dissolves cellulose ran successfully towards the end of the year.  First indications are that the process may provide a low cost route to novel types of fibres and films.

1983-84  - under "Courtaulds Research"

Development of the new process for directly dissolving and regenerating cellulose continued.  Samples of fibres, of fabrics made from them and of transparent films have been produced, all with interesting properties.

1984-85 - Under "Research"

The research progamme into the production of new fibres and films by direct dissolution and regeneration of woodpulp continued successfully.

1985-86 - under "Research"

The development of a direct solvent spinning system for cellulosic fibres and films continued successfully.  An expanded pilot plant will be available by the end of 1986.
1986-87 -  under "Fibres"
Research expenditure was again at a high level for all fibres, but especially in the development of the new solvent-spun cellulose fibre.  Its pilot-plant came on stream and good progress has been made on the next stage of production which will make commercial quantities available.
               - under "Research"
The programme to develop a new range of cellulosic fibres using a new direct solvent spinning system continued with the successful commissioning of an expanded pilot-plant and with engineering developments for further expansion.  The process gives significant improvements over existing fibre properties and environmentally.
1988-89 - under "Fibres"
The first commercial scale Tencel plant was commissioned during the year. Its capacity is modest and design work on larger units is now well underway.
                - under "Research"
Substantial work was undertaken to transfer expertise learned on the pilot plant...to the scaled up plant commissioned...at Grimsby.
1989-90 - under "Fibres and Films"
The new solvent spun fibre Tencel continued to progress well.

N.B.  (1) Tencel is not mentioned in the "Research and Technology" section in 89-90.
        (2) The Textiles business had been demerged and was no longer part of the Courtaulds Group.
        (3) Saiccor Pulp (the best pulp for making Tencel) had been sold in 1988 to fund acquisitions of US sealants and adhesives.
        (4) Bonded Fibre Fabric, the nonwoven business which had been modernised at the end of the eighties, was sold at the end of March.  (Tencel was showing great promise in nonwovens)
        (5) Prior to 1989-90, "Fibres" came immediately after the "Chairman's Statement" at the front of the Annual Report.   Here "Fibres" comes last after Coatings, Performance Materials, Packaging and Chemicals.  Furthermore it has been merged with the "Films" used in packaging - cellophane, polypropylene and polyethylene.  Maybe the continued development of Tencel clashed with the emerging strategy of getting out of Fibres and Textiles and was therefore downplayed.

Thanks to Ted Richards who provided the full set of Courtaulds Annual Reports from 1970 to 98

Tencel in Courtaulds Annual Reports (1990-91)

More Tencel extracts from the Courtaulds Annual Reports.  From this point on, Tencel project news becomes an increasing factor in Courtaulds share price:

under "Chairman's Statement" 
...Significant examples (of investing for organic growth) during the year have been further investment commitments to the new Tencel fibre... (Christopher Hogg will be replaced as CEO by Sipko Huismans on Aug 1st 1991)
under "Fibres and Films"
Market development of Tencel, the new solvent spun cellulose fibre, continued in the US, Europe and Japan, and work started on the first commercial scale Tencel plant, adjacent to the existing viscose rayon factory in Mobile.  

Tencel is not mentioned under "Research and Technology" but some Tencel pipework appears in a full page photo (above) which also features Anne Ronchetti in a hard-hat.  The caption reads The product of sustained and successful work by Courtaulds Research, the first full-scale Tencel solvent spun cellulosic fibre plant is now under construction in Mobile, Alabama. Offering a huge advance environmentally, the project involves close collaboration between Courtaulds Fibres, Courtaulds Research and Courtaulds Engineering, both in North America and, as here, at the pilot plant in Grimsby England.  N.B. the flow sheet in the photo is labelled Tencel Mobile - SL1.

Tencel in Courtaulds Annual Reports (1991-92)

under "Chief Executives Review"
In pursuit of organic growth we have made good progress in Tencel, our new cellulosic fibre, and the first commercial plant, in Mobile, Alabama, is due to be completed and start operation in mid-1992.
under "Fibres and Films"
Tencel, the new solvent spun cellulosic fibre developed by Courtaulds Research, continued to make excellent progress, with favourable test marketing results in the USA, Japan and Europe.
under "Human Resources, Research and Technology"
...for over a decade now, many of the Group's R&D programmes have been devoted to the improvement of environmental performance...and the Tencel process ... with virtually no effluent [is a] current example.

Tencel in Courtaulds Annual Reports (1992-93)

In "Chairmans Statement"

...Best of all, Tencel came of age with the commissioning in Mobile Alabama of the first major plant.  The origins of Tencel go back to the late 1970's and over the years since then those responsible for its development have nurture it with a skill and confidence which have owed much to Courtaulds massive experience with cellulosic fibres and technology since the start of the century. Tencel is now a product with a very exciting potential...

In "Chief Executives Review"

However the most important event of the year has undoubtedly been the successful start-up of the Tencel plant in Mobile, formally opened on 2 December 1992. Initial market reception of the product matches, or even exceeds, expectations and a key decision in the coming year will be the timing and scope of investment in further capacity in this core area.  The credit due to all those who have made this success possible cannot be overstated.

In "Fibres and Films"

Tencel, the new solvent spun cellulosic fibre, was commissioned on schedule at the Courtaulds Fibers facility in Alabama.  By the end of the year it was running at 80% of nameplate capacity, and such was the interest in the fibre that demand outstripped supply.  Tencel is capable of producing effects which are not available in other fibres and this, combined with high processing efficiencies is stimulating great interest amongst innovative customers.  In the final quarter, 50% of Tencel fibre was exported, principally to Japan, and Tencel was operating profitably.  

In Japan a consortium of textile mills focussed the development of Tencel into fabrics for fashion apparel.  A key feature has been the wide use of finishing techniques to develop a variety of fabrics with unique aesthetic effects.  Market reaction has been excellent and Tencel is leading the 1993 Spring/Summer collections.

N.B There was no "Research and Technology" section in this report.

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...