Lenzing Collaborates on Footwear and Real-Time Supply Chain Tracking
Lenzing, the Austrian producer of wood-based specialty fibers, has announced two separate collaborations, each in keeping with its sustainability goals. One improves the transparency and efficiency of the global supply chain, while the second is a footwear introduction made with Lenzing’s key sustainable fiber, the cellulosic Tencel Lyocell filament.
The company revised its financial outlook for 2023 because of “weak” market conditions, according to Lenzing.
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The initiative to increase transparency is a partnership with supply chain solution company project44 on a plan to improve both the transparency and efficiency of the global fiber supply chain.
At the center of the collaboration is a pioneering real-time ocean shipment tracker which also improves the visibility of carbon emissions among partners, a major industry development.
Critical to the goal of addressing increasing supply chain problems and solving them, the new system has been built around a fully integrated application programming interface (API) between systems applications and products (SAP) and the project44 platform, Movement. This works with AI, GPS sensors, and machine learning technologies that enable Lenzing to provide customers with accurate real-time insights on fiber orders. That ranges from shipment status, container locations, vessel route tracking and estimated arrival times at ports of destination worldwide.
The new information gives value chain partners access to Scope 3 carbon emission data on shipment and container levels, accredited by the Global Logistics Emission Council (GLEC). Such real-time data allows Lenzing and its customers to establish maximum allowable goals for carbon emissions and work toward them. The tracker will be available to all Lenzing customers beginning this month.
The footwear collaboration is with Coats Footwear on the company’s innovative ProWeave technology, woven with Tencel into newly reimagined shoe uppers and fabrics. The sneakers will be launched at the Lineapelle trade show in Milan, Sept. 19-21.
ProWeave jacquard technology can be used with a range of different fibers and yarns, but the Milan introduction will be of the prototype of Circle Sportswear’s “SuperNatural Runner”, claimed to be the first synthetic-free performance footwear made with Tencel and other bio-based materials. The combination of technologies gives the shoes an adaptive fit that mimics a second skin.
Lenzing is the first raw materials supplier to collaborate with Coats on ProWeave, and in addition to Lyocell Filament, is exploring the adoption of Tencel branded lyocell and modal fibers in footwear uppers and fabrics. These are sourced from controlled and certified forests and are certified by the Vegan Society. Tencell Lyocell filament is known for its softness, color and vibrancy.
Paul Jackson, ProWeave business unit leader at Coats Footwear, called working with Lenzing “a natural partnership.”
“Independently we are committed to helping companies lower the environmental impact of textile and footwear production processes by providing best-in-class materials and manufacturing technologies,” he said. “Together we’re revolutionizing the way uppers and materials can be made.”
The carbon visibility solution with project44 is another milestone for the Austria-based Lenzing. “Our ability to implement groundbreaking carbon emission tracking at shipment and container level demonstrates that we are ready and eager to collaborate with our valued customers in jointly crafting ambitious carbon reduction targets,” said Thomas Panholzer, vice president global supply chain, Lenzing.
Panholzer noted also how recent prolonged Covid-related supply chain disruptions highlighted the importance of advanced ocean shipment tracking. Lenzing’s new real time shipment tracker dovetails with the company’s “Better Growth” strategy, reinforcing a long-held commitment to transparency in the textile and nonwovens supply chain.
Developing reliable supply chain visibility requires successful partnerships, according to Jett McCandless, founder and CEO of project44 whose data gives customers access to real-time information that locates shipments around the globe.
“We are continuously seeking partnerships with pioneers like Lenzing who strive to incorporate new solutions and technologies into their offerings,” McCandless said.
Lenzing lowered its earnings forecast based on the slow recovery of the textile company’s markets to cautious EBITDA numbers that range from 270 million euros ($287.2 million) to 330 million euros ($351 million).
Lenzing launched a cost reduction program in November 2022, which aimed to deliver the desired results ahead of schedule, according to CEO Stephen Sielaff.
“We are implementing a holistic and consistent value creation program with a focus on measures to strengthen profitability and cash flow generation,” he said, “and to exploit the growth potential in the fiber markets through targeted sales activities.”
