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Interview with Micke Magnusson

Micke Magnusson
Micke Magnusson
Chief Commercial Officer
Dyecoo
Dyecoo

Dyeing industry is full of obsolete machines & processes
DyeCoo, based in Weesp, The Netherlands, is a highly technical company with unique competences in water-free dyeing and working with super-critical carbon dioxide. Gunning to service 1 per cent of the dyeing industry for polyester,  Micke Magnusson, CCO, Dyecoo, discusses the impact of the pandemic on the dyeing industry apart from the challenges it already faces today, and how the company is trying to break new grounds.

How has the Corona pandemic impacted the textile dyeing industry? What are the challenges faced?

Well, across the industry we see lower volumes forecast, volume drops in seasons and cancellations, many developments in general have been postponed or even cancelled. There is also a change in terms of production, from apparel textiles to hygiene textiles like masks etc. Unfortunately, many good projects in terms of sustainability have been, or are about to get postponed. The pandemic calls attention for the urgent need to be more earth friendly.
 

What new inventions are you coming up with respect to dyeing technology?

Mid 2020 we commercially launched our yarn-dyeing application which has taken us over 5 years to engineer, develop and validate.

Which consumer trend is going to drive the way you do business in the next 2-3 years?

I don't speak about sustainability as a trend, it is a paradigm shift, and a movement. However, the demand for better, less polluting practices, processes and products will only increase. In the field of sustainability, I see 3 key topics:

1. Climate change or in essence Co2 emissions which demands more recycled content in terms of raw-materials usage
2. Water emissions - The use and pollution of drinking water our industry is accountable for
3. Usage of hazardous chemicals in our industry - The idea of using chemicals for making the production process more efficient and cheaper, is something our children will hold us accountable for in the coming generations.

What new in terms of R&D to ensure your dyes are more sustainable or maybe blending some anti-virus feature when roiled into the fabric or garment?

Our dyes have for long been chemical-free developed for our technology. So, for us the R&D was in fact done long time ago. By mid-2020 we launched our yarn-dyeing application. In short - the same machine, but now our customers can not only dye knits and wovens, but also yarns. This has also gained traction among new segments such as both spinners, and knitters.

By when are you expecting the revival process to commence and what is your recovery model?

In short 2020 is a lost year. Also, SS21 will be under heavy influence. My take is that by FW21, recovery can be seen. For us we are seeing interest from new prospects from all over the world, interestingly from companies with no or low sustainability profiles. We also have a few new agents in new regions, but our focus remains the same.

What are the short and long-term sustainability goals set at Dyecoo?

Our strategy is very simple. For every machine we produce and install, we exclude a massive amount of water and chemicals from the production of apparel. So, if our machines today produce 9000 tonnes of fabric, we know we save roughly 50 litres of water per kilogram.

What percentage of sustainability and circularity does your technology promise?

To build on the above, we also eliminate roughly 160 tonnes of chemicals per machine per year. The savings are massive!

How did you invent the Co2 dyeing technology? Who is/are the founder/s of Dyecoo?

The technology is based on ground research done in University of Delft, The Netherlands. There is over 20 years or R&D behind our technology. Our founder, Geert Woerlee is still active in the company and is busy developing Co2 for other applications than dyeing. So, in short Dyecoo is a spin-off, based on our own ground research.

How does your supply chain network work? What regions of the world are part of your supply chain?

We are a process and machine supplier. Our supply chain for machines involve European specialist hard-ware companies. Our customers are spread out in Asia with most of our machines operating in Taiwan, but we also have customers in countries like Vietnam and Thailand.

What are the major challenges faced by the dyeing industry today?

There are many factors. My personal key concern is that the dyeing industry is full of old, obsolete machines and processes. The reason for this is simple - dyehouses are one of the least sexy part of our industry to invest in as they have high capex, low margins. Therefore, our industry is not moving very fast. Many of the machinery I see are over 25 years old. You know, in most Western capitals, cars of this age are not allowed any more. A dyeing machine is obviously not a car, also I would like to see brands and retailers develop a deeper understanding and commitments in their supply-chains. Just nominating the tier 1 is simply not good enough, and it won't drive the change our planet needs.

Which are some of the major collaborations happening between you and other dyestuff and chemical companies?

There are few in pipeline, but I will come back to you on the matter when we are ready to launch. One thing I can mention is that we have been working closely with Dupont and the Sorona team, and we have validated a few fabrics together - imagine a fully stretch PET fabric without polyurethane and dyed without water…it is a pretty strong offer, if you ask me!

Where do you stand in the domestic market in terms of the dyeing business?

If you mean in EU, we do not really focus on Europe due to the limited market for production of polyester.
Where do you stand in the domestic market in terms of the dyeing business?

What are your strengths as a company?

Dyecoo is a highly technical company. We have unique competences in water-free dyeing and working with super-critical carbon dioxide. Apart from this, we have good knowledge in the world of textile supply-chains predominantly for PET. Naturally, we are a company with a sustainability mission. These areas we know very very well.

What are your growth expectations from the company for the next two fiscals revenue wise?

I think our focus as a company will be to drive a wider adoption for our technology. We are working together with dedicated brands and retailers, as well as committed producers and factory owners. It looks like we will enter both Bangladesh and Turkey in 2020/21 and we are also looking into how to service the demands we experience from US and South America.

What are your future plans?

Well, we want to service 1 per cent of the dyeing industry for polyester. It might not sound like much, but it is a large and fragmented industry. We are far far from reaching this any time soon. But in order to make this world better, we need to install more dyeing machines without the need of water and chemicals. (PC)

Where are your manufacturing facilities based at?

Our machines are all made in The Netherlands.

Which are the companies and countries where your 4th generation Co2 dyeing systems have found acceptance?

The 4th generation machines are operating in Vietnam and Taiwan. However, we have also upgraded earlier generation machines. So, all machines in operation are essentially similar. We don't really speak on behalf of our customers, but we can say both Formossa Tafetta (FTC) and Far Eastern New Century Corporation (FENC) are our customers and partners. Apart from this, we are also working closely with our customer Cleandye Vietnam.

What is the science behind making dyes compatible with the same?

We rely on our partners Colortex, Archroma and Huntsman on the development of the dyes, and the chemical side of the Co2-dyeing. We are deeply grateful for the support and collaboration we have and had from these supporting companies.

Which are your major international markets?

Vietnam and Taiwan.

How big is your R&D team like? How much do you spend on R&D on a yearly basis?

Our internal R&D team is a 4 people team. However, we are also working closely with suppliers within our supply-chain, all are specialists in their fields. I won't give you a number, but I think you can make an estimation (20 years of development and research times at least 5 people per year. It is fair to state that R&D has been the largest expenditure for our company so far from the start.
Published on: 09/10/2020

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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